Read the attached lecture and then make a vote to the below question and Discuss and explain your voting choice. Also address: Describe self-managed work groups and the situations for which they are b

MGT 517 Unit 4 Lecture Unit Learning Outcomes Unit 4 ULO 1. Describe the most common organization structures used today and understand their strengths and weaknesses ULO 2. Define the principles of employee involvement and describe its relationship to performance ULO 3. Discuss and apply the principles of sociotechnical systems work design Chapter 12 examines techno -structural interventions which are change programs focusing on the technology and structure of organizations. Interventions aimed at structural design include moving from more traditional ways of dividing the organization’s overall work, such as functional, divisional, and matrix structures, to more integrative and flexible forms, such as process, customer -centric, and network structure s. Downsizing seeks to reduce costs and bureaucracy by decreasing the size of the organization. The personnel reduction can be accomplished through layoffs, organization redesign, and outsourcing. Structural Design Organization structure is concerned with how to divide the overall work into subunits and how to coordinate these sub -units for task completion. The basic structure is shown in Figure 12.1. Organization structures should be designed to fit with at least four factors:

(1) the environment, (2) org anization size, (3) technology, and (4) organization strategy. Organizations traditional structure themselves into one of three forms: (1) functional, task -specialized departments, (2) self -contained divisional units, or (3) matrix structures which combine both functional specialization and self -containment. Accelerating environmental changes have encouraged some organizations to utilize more flexible forms including process structures, customer -centric structures, or network -based structures. The Function al Structure The functional structure is the most widely used one in the world. It is depicted in Figure 12.2. The organization is usually divided into functional units, such as marketing, operations, research and development, human resources, and finance. The functional structure is based on early management theories involving specialization, line and staff relations, span of control, authority, and responsibility. Table 12.1 lists the advantages and disadvantages of functional structures. The Divisional Structure The divisional structure represents a fundamentally different way of organizing.

Also known as a product or self -contained unit structure, it groups organizational activities on the basis of products, services, customers, or geography. A typical structure is shown in Figure 12.3. Table 12.2 lists the advantages and disadvantages of the divisional structure. The Matrix Structure The matrix structure superimposes a lateral structure that focuses on product or project coordination on a vertical f unctional structure as shown in Figure 12.4. Every matrix organization contains three unique and critical roles: (1) the top manager who heads and balances the dual chains of command, (2) the matrix bosses who share subordinates, and (3) a few “two -boss” m anagers who report to the two different matrix leaders and manage workers deployed to the specific product or program. Table 12.3 reveals the advantages and disadvantages of matrix structures. They are most important when a dual structure is needed due to outside pressures, when the organization deals with a great deal of information, and when there are pressures for shared resources. The Process Structure A relatively new logic for structuring organizations is to form multidisciplinary teams around core processes such as product development, order fulfillment, sales generation, and customer support. This structure is shown in Figure 12.5. It emphasizes lateral relationships rather than vertical ones. Table 12.4 reveals the advantages and disadvantages. The Customer -Centric Structure The customer -centric structure focuses subunits on the creation of solutions and the satisfaction of key customers or customer groups. As shown in Figure 12.7, these customer or market -facing units are supported by other unit s that develop new products, manufacture components and products, and manage the supply chain. Table 12.5 compares product -centric and customer -centric structures. Table 12.6 shows that customer -centric structures have important strengths and weaknesses. The Network Structure A network structure manages the diverse, complex, and dynamic relationships among multiple organizations or units, each specializing in a particular business function or task. These organizations are sometimes called shamrock organiz ations, among other nicknames. The network structure is shown in Figure 12.8. There are four basic types of network structures. • Internal market networks exist when a single organization establishes each subunit as an independent profit center that is allow ed to trade in services and resources with each other as well as with the external market. • Vertical market networks are composed of multiple organizations linked to a focal organization that coordinates the movement of resources from raw materials to end consumer. • Intermarket networks represent alliances among a variety of organizations in different markets and is exemplified by the Japanese keiretsu, the Korean chaebol, and the Mexican grupos. • Opportunity networks are temporary constellations of org anizations brought together to pursue a single purpose. Network structures typically have the following characteristics. • Vertical disaggregation which refers to the breaking up of the organization’s business functions into separate organizations performi ng specialized work. • Brokers who are process orchestrators who locate and assemble member organizations. • Coordinating mechanisms which may include informal relationships, contracts, and market mechanisms. The disadvantages and advantages of network stru ctures are listed in Table 12.7. Downsizing Downsizing refers to interactions aimed at reducing the size of the organization. This is typically accomplished by decreasing the number of employees through layoffs, attrition, redeployment, or early retiremen t or by reducing the number of organizational units or managerial levels through divestiture, outsourcing, reorganization, or delayering. Application Stages Table 12.8 explains three downsizing tactics. Successful downsizing interventions tend to proceed by the following steps. • Clarify the organization’s strategy (relevant to the downsizing) • Assess downsizing options and make relevant choices • Implement the changes • Address the needs of survivors and those who leave • Follow through with growth plans Results of Downsizing Empirical research on downsizing is mostly negative. Reengineering Reengineering is a major transformation and requires the “fundamental rethinking and radical redesign of business processes necessary to achieve dramatic improvements in performance.” Application Stages The following steps are included in most reengineering efforts. • Prepare the organization (to understand the need for reengineering) • Fundamentally rethink the way work gets done • Restructure the organization around the new business processes Results from Reengineering The results vary widely. Chapter 13: Organizations are increasingly turning to employee involvement (EI) to enhance the participation, commitment, and productivity of their members. Employee involvement is a broad term that has been referred to as empowerment, participative management, engagement, and quality of work life, among other terms. It covers diverse approaches to gaining greater participation in relevant workplace decisions. The major EI application s discussed in this chapter are parallel structures, including cooperative union -management projects and quality circles; total quality management; and high -involvement organizations. Employee Involvement: What Is It? EI describes a set of practices and p hilosophies that started with quality -of-work -life. Engagement is another related term, which is used to refer to the outcomes of EI interventions. A Working Definition of Employee Involvement EI seeks to increase members’ input into decisions that affect organization performance and employee well -being. It can be described in terms of four key elements that promote worker involvement. • Power. Power includes providing people with enough authority to make work - related decisions covering various issues such as work methods, task assignments, performance outcomes, customer service, and employee selection. • Information. Timely access to relevant information is vital to making effective decisions. • Knowledge and skills. EI contributes to organizational effective ness only to the extent that employees have the requisite skills and knowledge to make good decisions. • Rewards. Both external and internal rewards can help get people involved in the organization. External rewards might include pay and promotion while int ernal rewards affect feelings of self -worth and accomplishment. The Diffusion of Employee Involvement Practices EI practices have been applied throughout the world. How Employee Involvement Affects Productivity Studies have found a consistent relationship between EI practices and measures of productivity, financial performance, customer satisfaction, labor hours, and waste rates. Figure 13.1 illustrates how EI facilitates improved productivity.

Figure 13.2 illustrates the secondary effects of EI on productivity through employee well -being and satisfaction. Further, EI has been shown to aid in developing organization citizenship behavior (OCB). Employee Involvement Interventions Three major EI interventions are parallel structures, total quality management, and high - involvement organizations. These interventions vary in the amounts of power, information, knowledge and skills, and rewards that are moved downward through the organization. Parallel Structures Parallel structures invol ve employees in resolving ill -defined, complex problems and build adaptability into bureaucratic organizations. Parallel structures are also called collateral structures, dualistic structures, or shadow structures. 1. Application Stages The steps for imple menting quality circle programs are listed below. • Define the purpose and scope • Form a steering committee • Communicate with organization members • Create forums for employee problem solving • Address the problems and issues • Implement and evaluate the changes 2. Results of Parallel Structure Approaches Large -sample evaluations report mixed results but case studies and anecdotal evidence are positive. Total Quality Management Total quality management (TQM) represents a long -term effort to orient all of an organization’s activities around the concept of quality. Quality is achieved when organizational processes reliably produce products and services that meet or exceed customer expectations. TQM is also referred to as continuous process improvement, continuo us quality, lean, and Six Sigma. The key principles of TQM were developed by W. Edwards Deming and Joseph Juran. TQM increases workers’ knowledge and skills through extensive training, provides relevant information to employees, pushes decision - making powe r downward in the organization and ties rewards to performance. Table 13.1 lists Deming’s quality guidelines including 14 points and 7 deadly sins. 1. Application Stages TQM is typically implemented in five major steps. • Gain long -term senior management commitment • Train members in quality methods • Start quality improvement projects • Measure progress • Reward accomplishment 2. Results of Total Quality Management Rigorous evaluation is difficult. High -Involvement Organizations High -involvement organizations (HIOs) are created by using high -involvement work practices to create situations that support high -level of employee participation. 1. Features of High -Involvement Organizations Table 13.2 presents a list of compatible design elements characterizing High - Involvement Organizations (HIOs). • Flat, lean organizational structure • Job designs that include high levels of employee discretion, task variety, and meaningful feedback • Open information systems that are tied to jobs or work teams • Career systems that provide different tracks for advancement and counseling to help people choose appropriate paths • Selection of employees for HIOs use realistic job preview • Training employees for the necessary knowledge and skills to participate effectively in d ecision making • Reward systems related to skill acquisition, gain sharing, and fringe benefits • Personnel policies that encourage employment stability • Physical layouts that support team structures 2. Application Factors There is no universally accepted approa ch to implementing the HI features noted here. 3. Results of High -Involvement Organizations Results of HIOs generally support its positive effects. Chapter 14: Work design means creating jobs and work groups that generate high levels of employee fulfil lment and productivity. The chapter examines three approaches to work design. The engineering approach focuses on efficiency and simplification, and results in traditional job and work -group designs. Traditional jobs involve relatively routine and repetiti ve forms of work. Job enrichment involves designing jobs with high levels of meaning, discretion, and knowledge of results. Self -managed teams rely on social and technical aspects of work systems. The chapter describes each of these work design approaches and then presents a contingency framework for integrating the approaches. The Engineering Approach The engineering approach is the oldest and most prevalent approach to designing work.

It produces two kinds of work design: traditional jobs and traditional work design. It remains an important work design intervention because its immediate cost savings and efficiency can easily be measured, selection costs are low, and training costs are minimized. The Motivational Approach The motivational approach, based m ostly on the work of Herzberg and of Hackman and Oldham, is the classic job enrichment model. Herzberg’s two -factory theory of motivation proposed that certain attributes of work such as meaningfulness, responsibility, and recognition serve as motivation t o increase job performance and satisfaction. Other attributes called hygiene factors, including factors like working conditions and pay, do not motivate but rather prevent dissatisfaction. Hackman and Oldham developed a model of job design that included fi ve core dimensions which affect job outcomes. The five core dimensions include skill variety, task identity, task significance, autonomy, and feedback. The Core Dimensions of Jobs Figure 14.1 summarizes the Hackman and Oldham model of job design. 1. Skill Variety, Task Identity, and Task Significance These three core job characteristics influence the extent to which work is perceived as meaningful. Skill variety refers to the number and types of skills used to perform a particular task. The more tasks a pe rson performs, the more meaningful the job becomes. Task identity describes the extent to which an individual performs a whole piece of work. Task significance represents the impact that the work has on others. Experienced meaningfulness is expressed as an average of these three dimensions. 2. Autonomy Autonomy refers to the amount of independence, freedom, and discretion that the employee has to schedule and perform tasks. 3. Feedback from the Work Itself This dimension represents the information that work ers receive about the effectiveness of their work. Individual Differences Individual differences such as worker knowledge, growth needs, and satisfaction can all moderate the relationships among the core dimensions, psychological states, and outcomes. Application Stages The basic steps for job enrichment include the following list of tasks. 1. Making a Thorough Diagnosis Make a diagnosis of the job (possibly using the Job Diagnostic Survey) as illustrated in Figure 14.2. 2. Forming Natural Work Units Doi ng so with interrelated task activities. 3. Combining Tasks To form new and larger tasks. 4. Establishing Client Relationships For workers such that feedback is possible and jobs seem more meaningful. 5. Vertical Loading Loading of the job to decrease the gap between doing the job and controlling the job. 6. Opening Feedback Channels Barriers to Job Enrichment There are obstacles to significant job restructuring. These four organizational systems constrain the implementation of j ob enrichment. • Technical systems limit job enrichment by constraining the number of ways a job can be changed. • Human resource systems can constrain job enrichment by creating formalized job descriptions that are rigidly defined and limit flexibility in ch anging people’s job duties. • Control systems including budgets, production reports, and accounting practices can limit the complexity and challenge of jobs within the system. • Supervisory systems determine to a large extent the amount of autonomy and feedba ck that subordinates can experience. Results of Job Enrichment The results of research on job enrichment suggest that people in enriched jobs are more satisfied and motivated than those in unenriched jobs. The Sociotechnical Systems Approach Conceptual Background Sociotechnical systems theory (STS) interventions are almost synonymous with work design and employee involvement. It is based on two fundamental premises: (1) that an organization or work unit is a combined, social -plus - technical system, and (2) that this system is open in relation to its environment. 1. Sociotechnical System The first assumption suggests that whenever humans are organized to perform tasks, a joint syst em is operating — a sociotechnical system. This system consists of two independent but related parts: (1) the social part, and (2) the technical part. This means that the system will produce two kinds of outcomes: (1) products and (2) psychological consequen ces. 2. Environmental Relationship The second major premise is that systems are open to their environments.

The environment provides the necessary inputs of energy, raw materials, and information. Self -Managed Work Teams The most prevalent application of STS is self -managed work teams. These teams are responsible for a complete product or service or a major part of a production process. The teams control member behavior and make decisions about task assignments and work methods. Figure 14.3 illustrates a model of self -managed work teams. Team functioning is affected by team task design, team process interventions, and organizational support systems. 1. Team Task Design 2. Team Process Interventions 3. Organization Support Systems Application Stages STS a pplications generally proceed in six steps. • Sanctioning the design effort • Diagnosing the work system • Generating appropriate design • Specifying support systems • Implementing and evaluating the work designs • Continuing to change and improvement Results of Self -Managed Teams Most research shows favorable results. Designing Work for Technical and Personal Needs The focus of these systems on efficient performance tends to downplay the needs of the employees. A contingency framework is provided that suggests that the three perspectives can be integrated. Technical Factors Two key dimensions can affect change: (1) technical interdependence and (2) technical uncertainty. Technical interdependence is the extent to which cooperation among workers is required to produce a product. Technical uncertainty is the amount of information processing and decision -making employees must do to complete a task. Figure 14.4 shows the different types of work designs that are most effective by showing these two characteristics in a 2*2 (high/low) matrix. Personal -Need Factors Two types of personal needs can influence the kinds of work designs that are most effective: social needs and growth needs. Social needs inclu de the desire for significant social relationships. Growth needs include the desire for personal accomplishment, learning, and development. Figure 14.5 shows the different types of work designs that are effective for the combinations of social and growth needs. Meeting Both Technical and Personal Needs Jointly satisfying technical and personal needs to achieve work -design success is likely to occur only in limited circumstances.