Elex efficient Organisations - The Advantages and Disadvantages

Transcription

1 GESTIONE DELLE RISORSE UMANE Dalla divisione del lavoro alla Learning Organisation prof. Francesco Perillo Università Suor Orsola Benincasa

2 What are the possible organisation structures?

3 Organisation design training Improving 1 Process driven organisational 2 3 Resource organisation right organisation 4 optimisation sizing performance 8 Organisation as dynamic entity 7 Performance measures $ 6 Integrating mechanisms & teams 5 Defining roles and responsibilities

4 Integrated Organisation is about much more than structure Structure Role Integrating Mechanisms Performance Measures

5 The Functional Structure Organisation Business Drivers Functional Expertise A Functional Expertise B Functional Expertise C Functional Expertise D Business requires specialised skills Specialist functions serving multiple customers Advantages Disadvantages Example Efficient at managing specialist skills High degree of specialisation possible Lack of focus on business outputs Barriers to cooperation between functional areas Manufacturing

6 Structure A B The Team Based Organisation Business Drivers D C Highly integrated work Work that can be grouped around definitive outcomes Focused effort to produce a collective outcome Advantages Disadvantages Example Strong cross-functional bias Flexible for different tasks Inefficiency in down time of projects Takes time for teams to become effective Morgan Stanley

7 The Process Structure A B C D Organisation Business Drivers Short cycle times Close control Advantages Short cycle times for work flows Problems in work flow can be rapidly identified Consistent with continuous improvement mindset Disadvantages Loss of spcialisation Difficult to implement Example Shell Italia post SAP

8 Structure The Product Organisation Product Group 1 Product Group 2 Products Group 3 Business Drivers A B A B A B Rapid product development Diverse complex products C D C D C D Functional expertise Advantages Disadvantages Example High degree of process and functional specialisation around products possible Integrated supply chain for products Loss of customer focus and cross-selling opportunities Inefficiencies in operations Shell Italia pre-sap

9 Geography / Market / Customer Structure Functional expertise Geography/ Market/ Customer 1 A C B D Focussed Organisation Geography/ Market/ Customer 2 A C B D Geography/ Market/ Customer 3 A C B D Business Drivers Sensitivity and tailoring to local requirements Rapid response to local needs /opportunities Advantages Maximises competitive position around geography / customer market Flexible in dealing with rapid changes in market Disadvantages Lack of standardisation leads to operating inefficiencies Development of specialist skills sub-optimised Example ABB

10 The Matrix Structure Customer A Customer B Customer C Function 1 Function 2 Function 3 Organisation Business Drivers Substantial project working Mobilisation of multi-skilled teams while maintaining functional expertise Advantages Best of both worlds between market focused and functional focus Disadvantages Matrix needs to be carefully balanced to ensure that it functions as planned Can lead to resource conflicts Example?

11 Structure Organisation A B C The Virtual Organisation Partner Organisations D Business Drivers Reduction of operational cost Specialisation around core business Advantages Company focused only on core value chain activities Can be quickly assembled and disassembled Disadvantages Potential loss of control over quality parts of business flow Strategic dependency on partners Example BP Exploration

12 Structure Geography/ Market 1 Network facilitator A B The Network Organisation Geography/ Market 2 C D Business Drivers Maximum specialist input from diverse geographic areas Need for low cost base Geography/ Market 3 Geography/ Market 4 Advantages High degree of expertise achievable at minimum overhead cost Effective at addressing specific issues in complex areas Disadvantages Works only if network participants willingly get involved Difficult to monitor or control the quality of the output Example Linux

13 Structure control Schematic of Management Levels (Depth) Schematic of Spans of Control Executive Director Executive Director Director Director Director Director Manager Manager Manager Supervisor Manager Manager Manager Supervisor Supervisor 4 Levels Supervisor Supervisor Senior Staff Supervisor Span of Control 3 Span of Control 2

14 Structure activities being managed Spans of Control Left Peak Percent Distribution Span of Control Narrow spans predominate Expected for specialized staff May indicate fragmentation or oneoff career positions Generally suggests improvement potential Span of Control 5 Span of Control 2 Span of Control 0 Bell Curve Percent Distribution Span of Control Both wide and narrow spans of control Expected for organizations with both specialized and routine activities Improvement opportunities limited to mismatches Right Peak Percent Distribution Wide spans of control predominate Expected for routine activities Limited improvement potential Span of Control

15 Structure Tool 3: Process Analysis of Organisation Departments Customer Marketing Sales 1 Produce marketing plan & sales forecasts 2 Get new customers Indicate main departments within parallel areas on your process map Customer service 3 Take customer order Logistics Manufacturing 4 Produce Production plan 6 Deliver product to customer 5 Manufacture product Finance 7 Invoice customer & collect cash

16 Structure Tool 3: Process Analysis of Organisation - Roles Customer Indicate individual or subdepartmental responsibility in each process step Logistics Pick product in warehouse Produce delivery docs Load truck Deliver product Receive delivery confirmation Warehouse Warehouse supervisor Warehouse Truck driver Truck driver

17 Structure implementation issues! Why We Can t Broaden Our Spans Response 1 We are all too busy already Management effort expands to fill the time available 2 3 We have incompetent people We need time for long-term thinking; can t get caught up in day-to-day issues Train them Learn to delegate, other managers work with much broader spans and think strategically 4 We actually do a lot of real work High priced management shouldn t do a lot of lower level work 5 We are always busy with special projects Eliminate projects that don t add value in proportion to their cost We will lose control Our work is very complex and creative We re small with a lot of special functions so we re forced to have narrow spans Develop good measures and reports No more than the CEO s Group special functions to achieve economies 9 They re really not expected to manage Then why are we justifying their grade based on their management responsibilities 10 Our situation is special Not any more

18 Workgroup Workgroup design is concerned with the connectivity of individuals and teams across structural boundaries. The ways in which these workgroups interact defines how the organisation design operates in practice Workgroups should have the following: A statement of purpose that aligns them with business objectives. Clear accountability and performance management Terms of engagement for working together (e.g. decision making, ownership of processes, budgetary ownership, resource ownership) Information requirements An understanding of how their outputs contribute to the overall business picture

19 IPT

20 Integrated Project Team This structure creates a hybrid balance between the need for focused day to day management of project teams while also satisfying longterm resource and skill development, process improvement and discipline, and functional review and verification. While the functional organisations (i.e., depicted vertically above) own both the process and the resources, these resources are seconded to Projects formed as self managed Integrated Product Teams (IPTs). After project completion these resources are returned to the functional organisations for assignment to another project.

21 The process-project contract A Process-Project Contract between the functional organisations or process owners and the Project Manager or internal customer obligates the process owners to supply people, processes, tools, specialist services, process verification, and functional review to meet individual project requirements.