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ORGDEV CH 12 Restructuring Organizations

The document discusses various organizational structures and change processes. It describes the divisional, matrix, process-based, and network organizational structures. It then covers downsizing tactics like workforce reduction, organizational redesign, and systemic change. The reengineering process is also outlined, involving preparing the organization, rethinking work processes, and restructuring around new business processes. Finally, it lists characteristics of reengineered organizations like changing work units and roles.

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256 views

ORGDEV CH 12 Restructuring Organizations

The document discusses various organizational structures and change processes. It describes the divisional, matrix, process-based, and network organizational structures. It then covers downsizing tactics like workforce reduction, organizational redesign, and systemic change. The reengineering process is also outlined, involving preparing the organization, rethinking work processes, and restructuring around new business processes. Finally, it lists characteristics of reengineered organizations like changing work units and roles.

Uploaded by

Amy BC
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Organization Development and Change

Restructuring Organizations

Thomas G. Cummings
Christopher G.
Worley
Learning Objectives

• To understand the basic principles of


technostructural design
• To understand the three basic structural choices and two
advanced structural choices available to organizations
• To understand the process of downsizing and
reengineering
The Divisional Organization
C hief E xe
c u t i v eO
fficer
C hief Fin V PR ese
a n cOi fafli arch
cer

Di v i s i o n r Di v i s i o n M r D i v i s i o nM a
M a nA as g e anage n a gEe ur r
N o r t hA m e
ia rica ope

VPHu VP O p e r a t V PS ales
m easno u
R ions aMnadr k e
rces ting

Cummings & Worley, 8e 14-7


(c)2005 Thomson/South-Western
The Matrix Organization
President
CEO

V P Finance VP Hum an Re
sources

S enior V P S enior
Program s V PO p e r
ations

VP R ese V P E ngin VP M anufa V P M ark


arch eering cturing eting

Program M a
nager
Aircraft
Program M a
n a g e rN a v i g a
tion S ystem
sP r o g r a m M a
nager
S pace S yste
m s
Characteristics of
Process-Based Structures
 Processes drive structure
 Work adds value
 Teams are fundamental
 Customers define performance
 Teams are rewarded for performance
 Teams are tightly linked to suppliers and
customers
 Team members are well informed and trained
The Process-Based Structure
S enior M anagem ent Te
am
C hair and K ey
S upport P rocess O wn
D evelope i nr sg N ew Product
s Process
P rocess O wner
C ross Functional Tea
m M em bers
Ac q u i r i n g a n d F i l l i n g C ust
om er O rders Process
P rocess O wner
C ross Functional Tea
m M em bers
S upporting C ustom er
U sage Process
P rocess O wner
C ross Functional Tea
m M em bers
The Network Organization
Designer Producer
Organizations Organizations

Broker
Organization

Supplier Distributor
Organizations Organizations
Types of Networks
 Internal Market Network
 Vertical Market Network
 Intermarket Network
 Opportunity Network
The Downsizing Process
• Clarify the organization’s strategy
• Assess downsizing options and make relevant choices
• Implement the changes
• Address the needs of survivors and those who leave
• Follow through with growth plans
Downsizing Tactics
Tactic Characteristics Examples
 Reduces headcount  Attrition
Workforce  Short-term focus  Retirement/buyout
Reduction  Fosters transition  Layoffs

 Changes  Eliminate functions,


Organization organization layers, products
Redesign  Medium-term focus  Merge units
 Fosters transition &  Redesign tasks
transformation
 Changes culture  Change
Systemic  Long-term focus responsibilities
 Fosters  Foster continuous
transformation improvement
 Downsizing is
normal
The Reengineering Process
• Prepare the organization
• Specify the organization’s strategy and
objectives
• Fundamentally rethink the way work
gets done
– Identify and analyze core business
processes
– Define performance objectives
– Design new processes
• Restructure the organization around the new
business processes.
Characteristics of Reengineered
Organizations
 Work units change from functional departments to process teams
 Jobs change from simple tasks to multidimensional work
 People’s roles change from controlled to empowered
 The focus of performance measures and compensation shifts
from activities to results.
 Organization structures change from hierarchical to flat
 Managers change from supervisors to coaches; executives change
from scorekeepers to leaders

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