Course Recap

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Del curso dictado por University of Illinois at Urbana-Champaign

Designing the Organization: From Strategy to Organizational Structure

422 calificaciones

University of Illinois at Urbana-Champaign

Designing the Organization: From Strategy to Organizational Structure

422 calificaciones

Curso 3 de 7 en SpecializationStrategic Leadership and Management

In this course you will understand how firms are organized, what factors must be taken into account in making critical design decisions, and what role managers play in making these choices. In order to answer these questions, we will first develop a conceptual process model that links business models, external and internal contingencies, and organizational design. Second, we will focus on the fundamental principles of organization design and what alternative design choices are available for managers. Finally, we will apply these concepts and ideas to organizational situations to develop the critical insights and decision making skills to build effective organizations. Learners: • Will understand how managers create value through their organizations • Will have a good understanding of the fundamental principles and factors important to organizational design • Will be able to design the coordination, control, and performance measurement systems to manage an organization. This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.

De la lección

Module 4: Elements of Organization Design – Integration

How is organizational integration achieved with the use of coordination and control tools? Coordination and control are the essential parts of organization design, and we need to describe how these tools are used to design the organization.

Course Recap9:12

Conoce a los instructores

Huseyin Leblebici
Professor of Business Administration
University of Illinois, Urbana-Champaign College of Business Department of Business Administration

[SOUND]

This concludes our fourth module of this course.

But what I would like to do in next video, is kind of give

you a recap of the course and what we have covered and what we discussed.

Why these things are critical.

If you remember, we had four modules in this course.

And all these four modules were related to one objective at the end.

Our objective was to understand the process of value creation and

be successful in creating value.

So that's why we set, at the outset, our goal is to focus on Value Creation.

And try to understand how actually that happens.

So in our first discussions.

I first looked at three elements.

Our first module looked at this middle one element.

We said, what is the role of management organization?

Whether we are talking about the CEO's top management team, middle manager,

it really doesn't matter.

What is management?

What is their responsibility?

To whom are they responsible?

And I basically made this following argument.

I said management is a profession.

Just like any other profession, whether you're talking about a doctor's profession,

lawyer's profession, architect's profession, it doesn't matter.

You have an established set of abstract ideas, theories, knowledge.

And then you have experience to really put those ideas, extract ideas into practice.

So management requires knowledge and management requires experience.

So that's the role of management.

And the managers are not responsible to one party or another.

So they're not only responsible in work for

the shareholders, or other stakeholders.

Organizations can only act if managers think that they are acting

on behalf of their organization and keep that organization as a going concern.

Because ultimately you, as managers,

are responsible for the success of the organization.

And that's why we talked about three basic rules of or the role of managers.

Identify where the resources are going to come from.

Decide how these resources are going to be utilized.

And then decide how the outcomes of these resource utilization

will be allocated to different groups.

Whether those are your employees, your customers, your shareholders or

suppliers.

So this is the reverse of the invisible hand of the marketplace.

Those decisions are made by the marketplace,

and that's why it's called the invisible hand.

In organizations,

the management is the visible hand where these decisions are made.

So, that was our starting point.

And then I said, there are certain contingencies.

The factors that are either inside or outside of the organization.

That are critical and we don't have that much control over them directly.

And we identify these contingencies and put them into two classes.

We said there are external environmental of forces and

these are related with external contingencies.

Such as the business model we operate.

So we discuss extensively about business models.

And where they come from?

How they change?

What you need to do to change them?

We talked about industry life cycle.

How industries grow, and what are some of the things that we need to think about

when industry changes in terms of its life cycle.

And then we looked at specifically, the industry change processes.

We came up with four different types of change from

the dynamic change where new products are introduced.

Kind of progressive change,

where all some radical changes that's happening in our environment.

And their impact on ourselves.

And then I mentioned that there are internal contingencies.

And the internal contingencies are related with

the operational technology that we use.

Remember, we talked about three types of technologies where different sequences

are established such as mass production, unit production, process production.

And I said that different processes or the structures in terms

of technology will have a direct impact on what kind of people we need to hire.

How we need to motivate them.

And then finally, I said that strategy making,

how you make strategy in your organization is another contingency.

Because it is a part of the process by which organization

that you work in has evolved.

And certain things became institutionalized.

Accepted without thinking what kind of strategy we actually produce.

And I said, well if you put these three elements together, your role,

external environment, internal environment.

Then, of course this will produce the mission, strategies and

operational goals for the organization.

We need to take all these elements together to come up with what

we call Organization Design.

And that's what we spend most of our time, the relationship among all these elements.

But organizational design is not the last item in creation of value.

And the next issue that we need to focus on, is execution.

How are we going to actually take the design and

the strategies we have and execute them in such a way that it will produce value.

And of course our flow chart that said that there is a feedback process.

Because our external and internal environment would change.

Contingencies will change as we create value.

And we do all of these things in what we call a business model that is part

of the external environment, and is said that these relationships are critical.

So, in our next course,

we will focus on the execution part.

So our objective is not simply talk about

organizational design person and where organizational designs are coming from.

But we need to understand how design makes execution actually possible.

This is where we need to think about how organizations actually change.

What is the life cycle of an organization?

What happens in decision making?

We need to understand how culture is really created in organizations so

that certain practices become so

ingrained in organization that it's very hard to change.

And we are going to talk about management succession issues

that are the core of execution.

So in this course, we basically focused the first half of this flow chart.

In our next course we're going to focus on the second part of the flow chart.

So hopefully,

all these things will start to make sense to you at the end of these two courses.

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