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Lecture Notes 1 | CMQ/OE | Leadership | Organizatizational Design November 15, 2009

Posted by Arvin in Work.
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(some items were changed for privacy reasons and non-disclosure policies)

Organizational Designs: Intro

  • A leader needs foresight, and must be able to see how all things are ordered according to the “Grand Design” or in a bigger picture.

I remember Clientlogic. They had the right set of values from the start: Vision, Passion, Purpose. Have that and you’ll have the making of  phenomenal leaders — movers and shakers of their generations.

Strategic Leadership = knows how an action/interaction takes a toll on events, situations, people and organizations

  • Organizational structure provides the formal framework for communication and authority within the organization.

for communication = how entities, people groups or individuals interact with each other.

for authority = how decisions are formulated and implemented across the organization.

  • Good Organization Design

= helps in distributing total workload

Designs and work distribution are a good start, assuming workflows and processes are clearly delineated.

I then thought of my work here at the helpdesk. I wish there was a one-stop sourcebook for all the policies and escalation paths instead of having to maintain a sharp memory and expert navigation through my grossly limited email inbox and the not-so process-friendly knowledge base.

= coordinating diverse organizational tasks

that involves a great deal of Politics. In the Philippines, pakikisama, saving face, and long-term relationships either make or break deals and businesses.

Design elements

Centralization = unravels the derivation, divergence and dynamics of decision-making

If management has confidence in its employees or teams, it may provide them with the autonomy to handle issues themselves.

The Dell Pasay Experience = So much decentralization happened, that supervisors failed to meet the business need – to generate income.

Complexity = the degree and extent of bureaucracy in an organization

  • how many are many systems within a system, how they interact and support each other

Formalization = the physics and dynamics of processes and interactions among systems, people groups and/or individuals within the organization

The Canadian Experience = Before, employees in a certain corporation holding office 2 steps away from the IT Department’s office would simply walk into the IT Personnel’s room and “take” the IT guy to his desk to have his problem fixed. Now, they have to call the IT Helpdesk.

Formalization follows suit every time organizations stabilize = meaning, processes become organized and incur complex details.

Security becomes the main concern as an organization branches out and increases its scope and responsibilities, paving way for formalization and formulation of stronger and more consistent workflows and processes.

  • As organizations age, they tend to become more complex, formalized and centralized. However, the need to introduce changes within the system overturns this natural trend by varying degrees.
  • An organization may have more complex, more formalized structures and processes, but may have its decision bodies decentralized.

Horizontal Dimension = Applies best to Organizations with departments of diverse nature and functions. Manufacturing industries benefit best from this structure. Grouping people by their function/purpose maximizes their productivity, which of course translates to a better income and more profits.

Vertical Dimension = applies to mega-organizations with sub-organizations of similar nature and functions within. Dell Pasay is a good example. Over 40 teams do the same job –– Dell Consumer Technical Support.

Resolution Expert > Technical Support Manager > Area Manager > Process Director.

Siemens however has a mix of both the vertical and horizontal dimension in its organizational hierarchy, which is mainly due to the diverse business groups/units, often cross-sectoral, within its conglomerate.

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