Organizational Design of an Enterprise

Syllabus

Thematic definition of lectures: 1. Week Organizing and organizing, the enterprise as an open system The meaning of existence of organizations. The history of the enterprise emergence as well as important milestones - individual technological breakthroughs or industrial revolutions, which conditioned the emergence of enterprises in their current form. Definition of basic concepts - organization, organizing, differences between organization and enterprise. Organizing as a managerial function and its position in management. Characteristics of organizations - instrumentality, formality, organization culture and organization structure. 2. Week Organizational structure and its dimensions I. The dimension of formalization and the dimension of centralization in the organizational structure of the enterprise. The dimension of formalization of organizational structure, the degree of organization in the enterprise and organizational norms. The set of organizational norms in the enterprise - organizational regulations, directives, orders, instructions, procedures. Dimension of centralization in the organizational structure. Interrelation of centralization and formalization in the enterprise. Dimensions of centralization and formalization in the enterprise - machine type enterprise (Walmart), clan type (IKEA) and mosaic type (Unilever), family type (Disney Corporation) and market type. Advantages and disadvantages of different organizational arrangements. 3. Week Organizational structure and its dimensions II. Dimension of hierarchy and dimension of specialization in the organizational structure of the enterprise. The dimension of hierarchy in organizational structure - span of control and its influence on the shape of the organizational structure. Narrow and wide span of control. Approaches to determining the optimal span of control. High and flat organizational structure, their advantages and disadvantages. Lean management and its implications for the organizational structure in the enterprise. Organizational memory and loss of organizational memory due to lean management. The dimension of specialization in the organizational structure of an enterprise, advantages and disadvantages of specialization. 4. Week Process organizational structure as a determinant of departmental structure. Identifying the differences between process and departmental structure. Organizational charts and process diagrams used in the enterprise. Basic parts of organigraphs - set, chain, hub and web. Enterprise process maps. Comparison of process and departmental organizational structure and ways of displaying them. The essentials of organigrams, organigrams for current and desired state. 5. Week Bureaucratic organization in the enterprise. A historical perspective on bureaucracy and its definitions from the perspectives of management, sociology and political science. Bureaucracy today - its manifestations and impacts on the enterprise and its organizational structure, alternative to bureaucracy in the enterprise. Positives and negatives of bureaucracy in the enterprise. Criticism of bureaucracy in the past and current criticism of bureaucracy. Weber, Crozier, Merton, Simon, Hamel and their critique of bureaucracy. The Bureaucracy Mass Index (BMI), and an analysis of the current situation, why bureaucracy is thriving so much, why it is growing and flourishing. Bureaucratization and the iron cage of bureaucracy. 6. Week Holacratic organization and its manifestations in the enterprise. Holacracy as an alternative to corporate bureaucracy. Theoretical definition of holacracy, comparison of holacracy and bureaucracy. Horizontal specialization, transparent company, decentralization within the team itself as well as within several work teams. Holacracy and its comparison with hierarchy and heterarchy. Main principles of holacracy: Dynamic planning, Iterative organizational learning, Integrative decision making, Evolutionary and purpose-driven organization, Fractal self-organization of organizational hierarchy...Examples of companies that are built on the principles of holacracy - Zappos, JumpSoft, Arca, Precision Nutrition, David Allen Company, Morning Star. 7. Week Configuration and types of organizational structures I. Classical (mechanical) approach to the creation of organizational structures. (Functional and divisional structure). A classical approach to organizational structures and a contemporary approach to the configuration of organizational structures. Simple structure, line structure, line-staff organizational structure. Advantages and disadvantages of different organizational configurations. Relationships vertical, horizontal, diagonal. Plant, operation, workshop in the enterprise. Departmental and process organizational structure. 8. Week Configuration and types of organizational structures II. Contemporary approach to the creation of organizational structures - organic structures. Project structure, matrix structure. The current approach to the design of organizational structures - the mechanical and organic model. Functional and divisional organizational structure. Advantages and disadvantages of functional organization. Product division, its advantages and disadvantages. Geographical division, its advantages and disadvantages. Division by customer, its advantages and disadvantages. Examples of companies with divisional organizational structure - Henkel, Siemens, Electricité de France...Duplication of functions in the divisional structure and its impact on the company's costs. Comparison of functional and divisional structure. 9. Week Configuration and types of organizational structures III. Contemporary approach to the design of organizational structures - the organic model. Horizontal structure, team structure. Organic approach to configuration of organizational structures - project structures - project coordination, pure project organization, project integration. Project and its basic features. Advantages and disadvantages of project structures. Matrix structure - its advantages and disadvantages. Team and horizontal structures, their advantages and disadvantages. Network structures, their advantages and disadvantages. Examples of companies with an organic approach to configuring their structure. 10. Week Virtual organization and virtual team in the enterprise. Basic features of virtualization in an organization. Difference between virtual and network organizational structure. Advantages and disadvantages of virtual organization. Types of virtual organization. Life cycle of a virtual organization. The future of the virtual organization. Virtual team versus traditional team. Types of virtual teams - network team, parallel team, project team, functional team, service team, action team, management team. Current challenges of virtual teams - building trust, communication, language barrier, time zones. 11. Week Network Structure. Outsourcing, Offshoring, Shared Service Centers and their impact on the organizational structure of the enterprise. The use of Shared Service Centers, Business Process Outsourcing and offshoring and their impact on the organizational structure of the enterprise. Comparison of the advantages and disadvantages of using Shared Service Centers and outsourcing. Reasons for using offshoring. Definitions of terms such as offshoring, nearshoring, onshoring, reshoring, outsourcing, insourcing. Current situation of development of shared service centers and outsourcing in Slovakia. Enterprise service centers - their development over time, generations, impact on the economy of the Slovak Republic. The future of organizational structures - the trend of flattening, virtualization and flexibility. Forum for business service centers and their activities in Slovakia. 12. Week Teleworking as an innovative form of work organization in a company. Coworking and coworking centers. Definition of terms such as - home office, homeworking, teleworking, telecommuting. Advantages and disadvantages of telecommuting. The importance of coworking centers in the implementation of teleworking. Coworking centers in Slovakia and their history. Values of coworking - cooperation, community, sustainability, openness, accessibility. Types of coworking centers - large, medium and small centers, university coworking centers, pop-up coworking centers. Manifestations of teleworking - combination of office and teleworking, telecommuting, telecentre, teleworking at home, mobile teleworking, telecottages. 13. Week New trends in organizational design of enterprises. The impact of globalization and Industry 4.0 on the organizational design of enterprises. Learning organization, agile organization, its principles and impact on the organizational structure of enterprises. Self-organizing and self-managing teams, pressure for horizontal organization. Thematic definition of exercises: 1. Week Introduction to Organizing. Methodology and course content. Distribution of seminar work among students and explanation of the conditions for passing the course. Organisation and organising. A case study entitled Organisation and the enterprise - a case study of the Cadillac company (Skorkova, 2018). Discussion on what is the goal of a business today - is it profit maximization or long-term sustainability. Why it is the goal and strategy that influence the organizational structure of the business? 2. Week Organizational structure and its dimensions I. The dimension of formalization of organizational structure, the degree of organization in the enterprise and organizational norms. Vertical articulation of organizational structure - Degrees of management in Morning Star company (Skorková, 2018). Degree of organization in the accounting department and Case study Degree of organization in a - restaurant (Skorková, 2018). Centralisation at Wal-Mart in Germany and decentralisation at Lidl in Slovakia (Skorková, 2018). Answering the questions behind the case studies, discussion. 3. Week Organizational Structure and its Dimensions II. The dimension of hierarchy in organizational structure - span of control and its influence on the shape of the organizational structure. Case study Span of management, Span of management according to Graicunas, Span of management according to Stieglitz, Span of management in a team of autidors. (Skorkova, 2018) Answering questions after the case studies, discussion. 4. Week Delegation - as an essential management skill. Case studies on delegation (Skorkova, 2018). The delegation grid. Barriers to delegation - omnipotence, mistrust, ignorance of subordinates' knowledge. Benefits of delegation for the company, subordinates and managers. Delegation procedure. Motivational communication in delegation. Demotivational communication in delegation. Answering the questions behind the case studies, discussion. 5. week - Presentation of partial results of student projects and their discussion. (Throughout the semester, students develop a team project to optimize the organizational structure of a selected company according to predetermined points and schedule.) In this week we conduct the first review of the partial deliverables. 6. week Bureaucratic Organization. Case study Bureaucracy, meritocracy and adhocracy. (Skorkova, 2018) Answers to questions - strengths weaknesses of bureaucracy, strengths of adhocracy. Alaska Airlines case study - can freedom and control work well together? And RHD's crisis of trust (Skorkova, 2018). Reflecting on how the values, goals and vision of a company influence the organisational structure of a business. 7. week Holacracy - as an alternative to bureaucracy in the company. A case study of Zappos, FAVI and Buurtzorg (Skorkova, 2018). Comparison of a classical organization and a holacracy. Pros and cons of both organizational arrangements. Answering the questions behind the case studies, discussion. 8. week Configuration and types of organizational structures I. A classical approach to organizational structures and a contemporary approach to the configuration of organizational structures. A case study of Span Management at Dun and Bradstreet (Skorkova, 2018). Discussion on the future of span of control. New terms in the topic of span of control - span of influence, span of awareness. Answering questions after the case studies, discussion. 9. week Configuration and types of organizational structures II. The current approach to the design of organizational structures - the mechanical model. Case study Schemes of organizational structures (Skorková, 2018) Comparison of different types of structures, their advantages, modifications. Case study - Divisional organizational structure in the company HENKEL. Answering the questions behind the case studies, discussion. 10. week Presentation of partial results of student projects and their discussion. (Throughout the semester, students develop a team project to optimize the organizational structure of a selected company according to predetermined points and schedule.) This week we conduct a second review of the sub-outcomes. 11. week Configuration and types of organizational structures III. An organic approach to the configuration of organizational structures. Case studies - SBU in Matador and Prútik, s.r.o., case study Fractal organization in ŠKODA (Skorková, 2018) Answering questions after the case studies, discussion. 12. week - Virtual organisation and virtual team. Case study - Teamwork, The pitfalls of teamwork - the Abilene paradox and groupthink. The difference between the Abilene paradox and groupthink. Examples from practice. Team roles according to Belbin and Who packed your parachute? - (Skorkova, 2018). Comparison of groups and teams. Specifics of virtual teams. Answering questions after the case studies, discussion. Week 2 Current and new trends in business organisation - Case study - Which is better outsourcing or shared service centre? Comparing offshoring and outsourcing, case study - The ethics of offshoring, Why Zappos didn't use outsourcing (Skorkova, 2018). Student thesis presentation. Answering questions after the case studies, discussion. 13. week Current and new trends in business organisation - Case study - Which is better outsourcing or shared service centre? Comparing offshoring and outsourcing, case study - The ethics of offshoring, Why Zappos didn't use outsourcing (Skorkova, 2018). Student thesis presentation. Answering questions after the case studies, discussion. Handing in final projects and preparing their defence.