Technostructural Intervention

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Week 6 - Technostructural Interventions
Restructuring Organisations
Org structures should be designed to fit with at least five factors: - the environment
- technology
- organisation strategy
- worldwide operations
The Functional Organisation
- departments that are task specialised
- standard pyramid
- specialists are grouped together
- adv ::: promote specialisation of skills and resources
- disadv ::: tend to promote routine tasks with a limited orientation - best suited for small to medium-sized firms that face relatively stable and certain environments
- also best suited to routine technologies
- also suited to organisational goals that emphasise efficiency and technical quality
The Self-Contained Unit Organisation
- group organisations activities on the basis of products, services, customers or geography
- the org'n needs to be relatively large to support the duplication of resources assigned to the units
- each unit is designed to fit a particular niche; therefore the structure adapts well to uncertain conditions
- adv ::: allows diversification, ensures accountability by dept mgrs, heightens dept cohesion
- disadv ::: limits career advancement
The Matrix Organisation
- Two-boss managers who need to both achieve technical sophistication and meet customer expectations
- Performance management systems get input from both functional and project bosses
- Positive ::: allow multiple orientations
- Negative ::: heavy managerial costs and support
- Conditions
o There must be outside pressures for a dual focus
o Pressures for high information-processing capacity
o Pressure for shared resources
Processed-Based Structures
- Multidisciplinary teams are formed around core processes
- Few hierarchical levels
- Particularly appropriate for highly uncertain environments - Enable organisations to manage non-routine technologies and to coordinate workflows that are highly interdependent.
- Major disadvantage ::: difficulty of changing to this new organisationa form; require radical shifts in mindsets, skills and managerial roles. - Relies on the proper identification of key resources needed to satisfy customer needs. If misidentified or ignored, performance and customer satisfaction are likely to suffer.

Network-Based Structures
- Typically have the following characteristics
o Vertical disintegration ::: different network members perform different business functions
o Brokers ::: networks are managed by broker organisations
o Co-ordinating Mechanisms :::
- Flexible and adaptive response to dynamic environments
- May give partners propriety knowledge/technology
Downsizing
- Consequence ::: rise of contingent workforce
- Factors:::
o Product or service demand
o Focus on short-term profits or budget goals
o A major change in org’n strategy and the belief that the slimmer the org’n the better
- Application :::
1. Clarify the organisation’s strategy
2. Assess downsizing options and make the relevant choices
3. Implement the changes
4. Address the needs of the survivors and those who leave
5. Follow through with growth plans
- Three types of downsizing tactics :::
o Workforce Reduction – aimed at headcount reduction
o Organisation redesign - aimed at org’n change
o Systemic – aimed at culture change
- Mixed results :::
o May not meet intended goals
o Some companies post solid fin statements after downsizing
Re-engineering
- is the fundamental rethinking and radical redesign of business processes in order to achieve dramatic improvements in performance
- breaks down specialised work units into more integrated cross-functional work processes
- Streamlines processes and makes them more responsive to changes - Frequently takes advantage of new technologies
- Can result in production and delivery processes that require fewer people and layers of management
- Typically results in new jobs or teams that emphasise multi-functional tasks, results-oriented feedback and employee...
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