College of Education

School of Continuing and Distance Education 2017/2018 – 2018/2019 ACADEMIC YEAR

LECTURER: (Dr. Obi Berko Damoah) DEPARTMENT: (OHRM, UGBS)

(Contact Information:obodamoah@ug.edu.gh)

Course Information

Provide the following information:

Course Code: UGBS 402

Course Title: Business Policy

Course Credit

3 Credit Hours

Session Number & Session Title:

Session 9 & Organizational Structure

Semester/Year: Second Semester / 2017/18 Slide 2

Course Information (contd.)

Slide 3

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Lecture Period(s)

3 Hours per week

Prerequisites Insert Course Prerequisites: (if applicable)

Teaching Assistant

Insert Teaching Assistant’s Information: (where applicable, provide name and contact information)

Course Instructor’s Contact

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Course Instructor(s) Name

Dr. Obi Berko Damoah

Office Location

GBS13, Graduate Block, 3rd Floor, Main Campus

Office Hours

Wednesdays 12:00 – 2:00pm

Fridays 12:00 – 2:00pm

Phone 0303963756

E-mail obodamoah@ug.edu.gh

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Introduction/Subject or Session Overview

In line with the policy planning that aims to supports the overall policy planning of the firm, every activity of the organization must be supported with policies in order to guide the implementation. The organization structure is important in the policy execution phase in the sense that it defines a clear cut of roles and responsibilities within the organization.

This session aims to presents the core policies that inform the organization’s practices which form the cornerstone of the policy plan and to present what is meant by agile, virtual organizations.

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Session Outline

The key topics to be covered in the session are as follows:

• Organizational structure

• Product team structure

• Policy alliance

• Ambidextrous Learning Organization

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Session Learning Objectives

At the end of the session, the student will:

• By attending the lecture and watching the videos be able to identify and explain five traditional structures and the pros and cons of each;

• Through a self-study of reading the required chapters and attending the lecture, be able to describe the product-team structure and explain why it is a prototype for a more open, agile organizational structure;

• Based on 2) above, be able to explain five ways improvements have been sought in traditional organizational structures;

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Session Learning Outcomes

Upon completion of this course, the student will have had the demonstrated the ability to:

• By attending the lecture and watching the videos be able to identify and explain five traditional structures and the pros and cons of each;

• Through a self-study of reading the required chapters and attending the lecture, be able to describe the product-team structure and explain why it is a prototype for a more open, agile organizational structure;

• Based on 2) above, be able to explain five ways improvements have been sought in traditional organizational structures;

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Session Activities and Assignments

• This week, complete the following tasks: • Log onto the UG Sakai LMS course site: http://sakai.ug.edu.gh • Watch the Videos for Session 9 • Review Lecture Slides: Session 9 • Read Chapter 11, Case #6 of Recommended Text – Pearce, J.

A. and Robinson, R. B. (2014). Policy management: managing for global and domestic competition; (14th edition), McGraw-Hill/Irwin Inc., New York.;

• Visit the Chat Room and share with your group the aspect of the terms which sessions 9 sheds light on; monitored by the instructor;

• Complete the individual self-assignment questions for Session 9

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ORGANIZATIONAL STRUCTURE Topic One

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The Organizational Structure

Organizational structure refers to the formalized arrangement of interaction between and responsibility for the tasks, people, and resources in an organization

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The Organizational Structure Cont.;

Simple Organizational Structure

• A simple organizational structure is one where there is an owner and a few employees and where the arrangement of tasks, responsibilities, and communication is highly informal and accomplished through direct supervision

• This type of structure can be very demanding on the owner-manager

• Most businesses in this country and around the world are of this type

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The Organizational Structure Cont.;

Functional Organizational Strucuture

A functional organizational structure is one on which the tasks, people, and technologies necessary to do the work of the business are divided into separate “functional” groups (such as marketing, operations, and finance) with increasingly formal procedures for coordinating and integrating their activities to provide the business’s products and services.

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The Organizational Structure Cont.;

Functional Organizational Structure

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The Organizational Structure Cont.;

Divisional Structure

A divisional organizational structure is one in which a set of relatively autonomous units, or divisions, are governed by a central corporate office but where each operating division has its own functional specialists who provide products or services different from those of other divisions

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The Organizational Structure Cont.;

Divisional Structure (cont.)

• This structure expedites decision making in response to varied competitive environments

• The division usually is given profit responsibility

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The Organizational Structure Cont.;

Divisional Organizational Structure

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The Organizational Structure Cont.;

Policy Business Unit

• The policy business unit (SBU) is an adaptation of the divisional structure whereby various divisions or parts of divisions are grouped together based on some common policy elements, usually linked to distinct product/market differences

• The advantages and disadvantages of the SBU form are very similar to those identified for divisional structures

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The Organizational Structure Cont.;

Holding Company Structure

A final form of the divisional organization is the holding company structure, where the corporate entity is a broad collection of often unrelated businesses and divisions such that it (the corporate entity) acts as financial overseer “holding” the ownership interest in the various parts of the company but has little direct managerial involvement

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The Organizational Structure Cont.;

Matrix Organizational Structure

• The matrix organizational structure is one in which functional and staff personnel are assigned to both a basic functional area and to a project or product manager

• The matrix form is intended to make the best use of talented people within a firm by combining the advantages of functional specialization and product-project specialization

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The Organizational Structure Cont.;

Matrix Organizational Structure

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The Organizational Structure Cont.;

Matrix Organizational Structure (cont.;)

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PRODUCT-TEAM STRUCTURE Topic Two

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The Product-team Structure

• The product-team structure seeks to simplify and amplify the focus of resources on a narrow but strategically important product, project, market, customer, or innovation.

• The product-team structure assigns functional managers and specialists to a new product, project, or process team that is empowered to make major decisions about their product.

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The Product-team Structure Cont.;

The Product Team Structure

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The Product-team Structure Cont.;

Trends affecting organizations in the 21st century

• Globalization

• The Internet

• Speed

Slide 26

The Product-team Structure Cont.;

What a Difference a Century can Make

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The Product-team Structure Cont.;

Efforts to Improve Traditional Structures

• Redefine the role of corporate headquarters from control to support and coordination

• Balance the demands for control/differentiation with the need for coordination/integration

• Restructure to emphasize and support strategically critical activities

• Reengineer strategic business processes

• Downsize and self-manage

Slide 28

The Product-team Structure Cont.;

Restructure to Emphasize and Support Strategically Critical Activities • Restructuring: Redesigning an organizational structure

with the intent of emphasizing and enabling activities most critical to a firm’s policy to function at maximum effectiveness.

• Business Process Reengineering: A customer-centric restructuring approach. It involves fundamental rethinking and radical redesigning of a business process so that a company can best create value for the customer by eliminating barriers that create distance between employees and customers.

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The Product-team Structure Cont.;

Support Strategically Critical Activities (contd.)

• Downsizing: Eliminating the number of employees, particularly middle management, in a company.

• Self-management: Allowing work groups or work teams to supervise and administer their work as a group or team without a direct supervisor exercising the supervisory role. These teams set parameters of their work, make decisions about work-related matters, and perform most of the managerial functions previously done by their direct supervisor.

Slide 30

The Product-team Structure Cont.;

Restructure to Emphasize and Creating Agile, Virtual Organizations

• Virtual organization: a temporary network of independent companies—suppliers, customers, subcontractors, even competitors—linked primarily by information technology to share skills, access to markets, and costs

• An agile organization is one that identifies a set of business capabilities central to high-profitability operations and then builds a virtual organization around those capabilities

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The Product-team Structure Cont.;

Outsourcing—Creating a Modular Organization • Outsourcing is simply obtaining work previously done by

employees inside the companies from sources outside the company

• A modular organization provides products or services using different, self-contained specialists or companies brought together—outsourced—to contribute their primary or support activity to result in a successful outcome

• Business process outsourcing (BPO) is the most rapidly growing segment of the outsourcing services industry worldwide

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POLICY ALLIANCE Topic Three

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Policy Alliance

Alliances with suppliers, partners, contractors, and other providers that allow partners in the alliance to focus on what they do best, farm out everything else, and quickly provide value to the customer.

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Policy Alliance Cont.;

Types of Boundaries • Horizontal boundaries—between different departments

or functions in a firm. • Vertical boundaries—between operations and

management, and levels of management, between “corporate” and “division”

• Geographic boundaries—between different physical locations; between different countries or regions of the world and between cultures

• External interface boundaries—between a company and its customers, suppliers, partners, regulators, and competitors

Slide 35

Policy Alliance Cont.;

Becoming Boundary less

• Jack Welch coined the term “boundaryless” to illustrate his vision for GE.

• Outsourcing, policy alliances, product-team structures, reengineering, restructuring—all are ways to move toward boundaryless organization.

• Technology, particularly driven by the Internet, has and will be a major driver of the boundaryless organization.

Slide 36

Policy Alliance Cont.;

From Traditional Structure to B-Web Structure

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AMBIDEXTROUS LEARNING ORGANIZATION

Topic Four

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Ambidextrous Learning Organization

Ambidextrous Learning Organization

• The evolution of the virtual organizational structure as an integral mechanism managers use has brought with it recognition of the central role knowledge plays in implementation.

• The shift from exploitation to exploration (Rangan) indicates the growing importance of organizational structures that enable a learning organization to allow global companies the chance to build competitive advantage.

• An ambidextrous organization emphasizes coordination over control as well as flexibility.

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References

• Required and indicative reading • Pearce, J. A. and Robinson, R. B. (2014). Strategic management: managing for global

and domestic competition; (14th edition), McGraw-Hill/Irwin Inc., New York. • Supplementary Reading • Dess, G. G. & Lumpkin, G. T. (2003), Strategic Management: Creating competitive

advantages, McGraw-Hill/Irwin Inc., New York. • Johnson, G., Scholes K. & Whittington R (2008), Exploring Corporate Strategy: Text

and Cases, Pearson Education Limited, England • In addition: • Any good introductory text in Strategic Management/Business Policy • Business section of any newspaper • Strategic Management publications (consult the library).

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References Cont.;

Journals

• Management decision

• Strategic management journal

Youtube

• https://www.youtube.com/watch?v=wO_-MtWejRM

• https://www.youtube.com/watch?v=qg-6HDskILE

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