Structural Frame

Melissa Strickland

Frames
Lenses- focus, filter some things and allow others to pass through, help us order experiences.

Frames
Tools- Strengths and limitations. Wrong tool gets in the way; right tool makes the job easier.
-Possess a tool but know how to use it well.

Structural Frame
The structural frame focuses on an organization's goals. Its main components are: -Organizations exist to attain goals, -An organization's structure should be designed to fit circumstances, -Specialization leads to peak performance, -Coordination and control are essential Problems that arise can solved by restructuring.

Structural Assumptions
4. Have structures to fit goals and objectives 5. Have coordination and controls to align work to goals and objectives 6. Need restructuring to remediate problems and performance gaps

1. Exist to achieve goals and objectives 2. Work best when rationality prevails over agendas 3. Increase efficiency through specialization and division of labor

Origins of Structural Perspective

Frederick W. Taylor, father of time-and-motion studies Scientific Management Get the most out of every second

Origins Continued...
Max Weber "Monocratic Bureaucracy" Several major features of model:

Fixed division of labor Hierarchy of offices Set of rules governing performance Separation of personal from official property and rights Use of technical qualifications for selecting personnel Employment as primary occupation and long-term career

Basic Structural Tensions

Design issues of organizational structure: differentiationhow to allocate work & integration how to coordinate roles & units A job or position channels behavior by prescribing (job descriptions, procedures, routines, or rules) what someone is to door not doto accomplish a task Formal constraints can be burdensome, leading to apathy, absenteeism, and resistance, but they help ensure predictability, uniformity, and reliability

Vertical Coordination
Authorityintegrating the efforts of individuals, units, or divisions by designating someone formally in charge Rules & policieswith standards & standard operating procedures limit discretion & help ensure predictability & uniformity Planning & control systemsperformance control imposes output objectives without specifying how the results are to be achieved action planning specifies methods & time frames for decisions & actions

Lateral Coordination
Meetings-formal & informal communication Task Forces-collaboration among specialties or functions Coordination Roles-use of persuasion or negotiation to help others integrate their efforts Matrix Structures-crosscutting coordination responsibilities Networks-lateral communication devices

Designing A Structure That Works

Goals in mind Environment Talents of workforce Available resources

A Structural Odd Couple

vs

McDonald's
For forty years after its founding in the 1950's the company was an unstoppable growth engine that came to dominate the fast-food industry However, McDonald's is: Highly Centralized Most decisions made from the top Employees have limited discretion

Harvard University
Harvard University is also highly successful. However, unlike McDonald's, it is significantly more decentralized.
Each school has its own dean They have fiscal autonomy Each Professor has enormous discretion They control what courses they teach They do their own research

Questions to consider
Why do McDonald's and Harvard have such radically different structures? Is one more effective than the other?

The Facts
There is no such thing as an ideal structure Every organization needs to respond to a
universal set of parameters called Structural Imperatives that include:
Size and Age Core process Environment Strategy and goals Information Technology Nature of the workforce

1) Size and Age

Complexity and formality increase with size and age of an organization Smaller organizations need less control or restraint Bigger organizations will need tighter controls and more centralization

2) Core Process
Structure is ideally built around an organization's basic method of transforming raw materials into finished products Assembling a Big Mac
Relatively routine and programmed Task is clear Most problems are known in advance and success is high

High-technology electronics firms confront a much higher degree of uncertainty New products may be obsolete in 6 months or
less Uncertainty presses for new roles and flexible approaches to vertical coordination

to

3) Environment
Stable environments reward centralized structure Uncertain, turbulent environments requires a more complex, decentralized structure

or

4) Strategy and Goals

Strategic decisions are future oriented, concerned with long-term direction

Major tasks of organizational leadership

include: Determined long-range goals Objectives of an organization Allocation of resources necessary to carry out the
goals

5) Information Technology
New technologies continue to revolutionize
the amount of information available and the speed at which it travels
The information-based organization needs far fewer levels of management than the traditional commandand-control organizations

to

6) Nature of the Workforce

A better-educated workforce expects and
often demands more freedom in daily work routines
Trying to tell a Harvard professor what to teach
is an exercise in futility In contrast, giving too much discretion to a youthful, low-skilled Mcdonald's worker could become a disaster

Structural Configuration
Mintzberg's five-sector logo

Operating Core Administrative Component Senior Managers Specialists Support Staff

(workers who provide service/teachers)

(principals/foremen/middle management)

(superintendent/schoolboard)

(technicians/analysts)

(nurses/custodians/secretaries)

Simple Structure
Start-up/mom & pop operation

Two Levels - Strategic apex & Operating level Virtue - flexibility/adaptability/1 or 2 people run the
show

Vice - boss too close to operations/authority may block

change

Machine Bureaucracy

Important decisions are made at the strategic apex Day-to-day operations are controlled by managers & standardized procedures Large support staffs & technostructure Example: McDonalds Challenges: 1. Motivate/satisfy workers without undermining consistency/uniformity 2. Constant tension between headquarters and local managers

Professional Bureaucracy

Operating core is larger than other structural parts Few managerial levels exist between the strategic apex and the professors - creates a flat, decentralized profile. Example: Harvard

Challenges: 1.nQuality control and coordination 2. Responds slowly to change

Divisionalized Form

Quasi-autonomous units (multispecialty hospital) serve defined markets Division heads (presidents) are accountable to the corporate office As long as the division performs, they have free rein Benefits: 1. Offers economies of scale, resources, and
responsiveness while controlling economic risks

Challenges: 1. Headquarters may lose touch with operations 2. Headquarters wants oversight & divisional
managers try to evade corporate control.

Adhocracy

Loose, flexible, and organic structure Characteristics: 1. Dont believe in hierarchy, rule books, dress codes, etc 2. Ambiguous authority structure 3. Unclear objectives 4. Contradictory assignments

Helgeson's Web of Inclusion

Organizational structure form more circular than a defined hierarchical pyramid (spider web) Emphasis on lateral relationships rather than hierarchy Leadership at the center rather than at the top Web builds from the center out through a network of interconnections

Issues in Restructuring

Restructuring must take into account structural configurations Each component exerts distinct pressures. Strategic apex pushes for more alignment, centralization. Middle managers try to protect autonomy and room to run their own units. Technostructure pushes for standardization, believes in measurement and monitoring. Support staff prefers less hierarchy, more collaboration.

Why Restructure

The environment shifts (regulation/compliance) Example: Health Insurance Portability and Accountability Act (HIPPA) Technology changes Example: Boeings shift from piston to jet engines Example: Automotive mfg shift to hybrid cars Organizations grow Leadership changes

Making Restructuring Work

Citibanks back room

Back room structure - machine bureaucracy (ex. McDonalds) Issues:

Productivity, errors, expenses rising 20% per year Phase 1 Implemented new computer system for control and forecasting Phase 2 Studied how the back rooms processes worked Phase 3 Broke pipeline into smaller lines (different product) with managers for each line Technical core strongly resisted the intrusion

Phases:

Challenges:

Need for Change

Emphasized customers and employees Historic Roots Competition
Low morale High costs Threats Declining customer service

Six flows

Structural Change
Top down management Poor patient care High turn-over Change from pyramid system to inclusive web Implementing Care Teams

One Boss
One person has authority Top down management
Production delays Slow communication Frustrated employees & customers

Dual Authority
Two individuals given authority over specific areas of the groups work
Reduces boss's control Slows communications Erodes morale Decrease performance

Simple Hierarchy
Middle Management Friction Limits access to the top

Circle Network
Information flows sequentially Deal with only two others
Requires strong links Easier management Can be bogged down

All Channel Network

Multiple connections Information flows High morale Requires effective communication skills

Teamwork and Interdependence

Team Sports
Every competition calls for its own unique patterns of interactions Unique team structures are required
Baseball Football Basketball

Baseball
Individual goals Loosely integrated Individual efforts are mostly independent Manager's decision are tactical Managers come and go Players transfer with ease

Football
Perform in close proximity Each play involves every player Efforts are linked in prearranged plan Special teams Individual efforts tightly coordinated Strategic decisions made by head coach Tactical decisions made by others (assistant coaches, players)

Basketball
Operate in closer proximity Rapid transitions (offense-defense) Individual efforts depends on others Spontaneous, mutual adjustments Move in emerging pattern Newcomers experience difficulty in adjusting Individual "I" becomes collective "we"

Determinants of Successful Teamwork

What is the nature and degree of dealings among individuals? What is the spatial distribution of unit members? Given a group's objectives and constraints, where does authority reside? How is coordination achieved? Which word best describes the required structure; conglomerate, mechanistic or organic? What sports expression captures the task of management?

Team Structure and Top Performance

Katzenbach and Smith Interviewed hundreds of people on more than 50 teams (Motorola, HP, Girls Scouts) in developing their book The Wisdom of Teams

"A team is a small number of people with complementary skills, who are committed to a common purpose, set of performance goals and approach for which they hold themselves mutually accountable."

Characteristics of High-Quality Teams (Katzenbach and Smith)

High-performing teams shape purpose in response to a demand or an opportunity placed in their path, usually by higher management. High-performing teams translate common purpose into specific, measurable performance goals. High-performing teams are of manageable size. (2 to 25 people) High-performing teams develop the right mix of expertise. High-performing teams develop a common commitment to working relationships. Member of high-performing teams hold themselves collectively accountable.

Self-Managing Teams
Manage themselves Assign jobs to members Plan and schedule work Make productive service related decisions Take action to remedy problems

Examples of Self-Managing Teams

Classic Multi-decade Example