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Organization Theory and Design
Organization Analysis Proposal
Due: Sunday February 7 End of day (via email)
Length: maximum 5 pages excluding appendices
IMPORTANT!!!
Saving your document: Please use YOUR CLASS SECTION (e.g. 1pm, 2:30pm), GROUP ORGANIZATION NAME, AND GROUP NUMBER as your file name. For example 1pm_companyname_group#.doc
(Att: 1pm section, you will be assigned a group number on Tuesday January)
Also include your organization name, group number, and section in the subject of your email.
Please note: I need to know and approve your organization of study by Friday February 5.
Information your report should include:
1) The name of the organization the group proposes to study and a list of group members.
2) Description of the organization
A brief description of the organization (i.e. product or service that it provides, location, size, external environment (describe the environmental sectors that have a direct impact on the companies operations, and any other relevant information you think would be appropriate).
3) Assignment of roles and responsibilities
Assignment of roles and responsibilities for each group member, identify task that need to be completed, and deadlines associated with each task. This will clarify who is doing what and timelines for various tasks.
My suggestion is to assign topics according to the chapters of the text. For instance, you could assign each group member one or more chapter(s). The most important or relevant chapters are: structural and contextual variables (chapter #1), strategy and goals (chapter #2), organization structure (chapter #3) , external environment (chapter #4), lifecycle and size (chapter #9) and organizational culture (chapter #11). Other chapters that are important and could be included are: interorganizational relationships (chapter #5), international challenges (chapter #6), mfg technology (chapter #7), (chapter #10), innovation and change (chapter #11), and conflict, power, and politics (chapter #13)
4) Problem Definition:
This section will require you to identify a possible problem, issue, challenge that your organization is facing. If your organization is a publicly traded company, you’ll be able to look online for various problems/challenges facing the company. Otherwise, you may need to contact someone at the organization directly to identify a possible problem/issue facing your organization. Please note that you’ll be able to change your problem/issue at a later date. Provide a reference(s) and citations to explain where you obtained this information.
An except from a previous proposal
There are several issues with UNB’s structure but the main concern is that there is too much centralization and concentration of power at the administration level ( org. design issue – relates back to what we’ve discussed in class ). Some of the organizational design issues have led to conflicting goals and hinder the capability to meet the overarching strategic goal of the organization. Conflict between the administration and faculty, as was seen with the labour dispute in 2014, can have long lasting issues of both employee satisfaction and cost implications ( Evidence used to support the issue/problem) . There has been a growth in administration and a decline in the faculty numbers, ongoing concerns around decision-making with non-confidence votes against the senior management by the majority of faculties and concerns around the future direction of the organization ( Identifies several implications that have arisen due to the degree of centralization and concentration of power .
Notice that the problem definition relates back to an organization design issue. In UNB’s case, the high degree of centralization and concentration of power within the administrative leve has resulted in numerous issues that have been outlined in the PD. Citations are missing in this problem definition and please note that this PD is a summary of the issues…further details could should have been included in the PD but the analysis explained the points/issues above in further detail.
5) Analysis:
This is the heart of your proposal and report. You will provide a brief analysis about TWO course related concepts, models, frameworks, or theories. Your final report is not limited to the information contained in the text but it should reflect or support areas related to OD. Although I mentioned that you should chose one model/concept from a chapter we haven’t covered yet, this is no longer a requirement for your proposal.
Your analysis should: identify the theory/concept you are using, explain how the course concept/theory/model applies to your organization, provide supporting evidence (this means you need to find evidence from various sources) to demonstrate how this course concept applies to your organization, and finally explain the effect this has on the organization (does this
At the end of the assignment outline, I’ve provided a few topics, but not limited to, that you could use for your report (you only need to use TWO) and excerpts from previous reports to give you an idea of how to write your analysis. Remember, evidence must be provided to support your analysis.
Excerpt from proposals
6)Competitive Strategy
MAC uses an evident differentiation strategy to stay ahead of their many competitors in the cosmetics industry. MAC offers unique characteristics and techniques that appeal to customers and set them apart from their competitors. One example of this is the placement of their product. MAC products are sold exclusively in department and online stores. Customers will not find these products in any drug stores or discount shops. They focus on a different market compared to its many competitors in the industry. This strategy separates their company from “easy to acquire makeup” and puts them in a more “high-end” market. The value added from this differentiation strategy allows MAC products to be sold at a premium price. (Basnet, 2010)
When MAC first began, their goal was to make a more durable, reliable makeup that could withstand the heat and sweat of photo shoots and the runway. They have accomplished this goal as MAC is a commonly used product line in fashion shows and many other celebrity events. Recently, MAC signed contracts with two of the most “A-List” pops stars: Nicki Minaj and Rhianna. MAC uses every differentiation strategy it possibly can from its competitors from its location, products, image and its price point. They want to make their products stand out above the rest and have been very successful in doing so. (Basnet, 2010)
MAC continues to use a focused differentiation strategy in their advertising techniques. They concentrate on customer loyalty and satisfaction. The only marketing technique used is simply through “word of mouth” advertising and have very little help from large advertising companies. They want their products to be sold based on quality, and they expect that if they keep on top of their product line and continuously stay loyal to their customers, that customers will continue to return to their stores. MAC is known to be an honest, caring company, whose goal is to make the customer happy and satisfied while still remaining concerned with its social responsibility. (Basnet, 2010)
Notice that the above excerpt identifies the course concept (focused differentiation strategy – unique products (high quality) and focused customer base) and provide appropriate evidence (with references) of how MAC’s positions its products compared to its competitors, which support the analysis that MAC does indeed use a focused differentiation strategy (though they could have argued that the strategy could be a differentiation strategy rather than a focus differentiation strategy. This is important to identify the strategy used by the organization since the structure of the organization must support the strategy.
Structural dimensions (Formalization, Profesionalism, Specialization) – other structural dimensions omitted but can be included in your analysis
Structural dimensions provide labels to describe the internal characteristics of an organization. They help create the basis for measuring and comparing organizations (Daft & Armstrong, 2009, p. 17) In the next section of this analysis, a break-down of the structural dimensions of Skillsoft will be presented in order to get a better understanding of what it takes to make Skillsoft a leading provider of e-learning and performance support solutions.
Formalization pertains to the amount of written documentation in the organization. Documentation includes procedures, job descriptions, regulations, and policy manuals (Daft & Armstrong, 2009, p. 15) Skillsoft has a lot of written documentation that describes aspects of the job such as job descriptions and procedures. It’s all online because they are a global company with a lot of virtual employees. Every employee has access to all of this information and many employees need to reference it often to make sure they are following all rules and regulations properly. Kelly stated that with her type of job she references and accesses the online information almost daily to help guide her in maintaining and assisting clients. (K. Stainforth, personal communication, 2013) Clients themselves also have the opportunity to access internal and external information sites to help them with any situation they encounter with Skillsoft’s products.
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Centralization refers to the hierarchical level that has authority to make decisions (Daft & Armstrong, 2009, p. 305) Skillsoft would be considered a flat organization, meaning there are not a lot of layers. Most decisions come from the local levels. So the general manager of the Fredericton location would make decisions for the Fredericton branch. (K. Stainforth, personal communication, 2013) Some roles within the Fredericton branch are more autonomous than others. The first level of technical support for clients is very structured and they have little autonomy. Some jobs are seen as a bit more autonomous. For example, as a consultant, Kelly does not get to pick and choose her own clients but she does get to manage her clients in whatever way she feels is necessary and she works closely with the Sales Executive who originally sold the client their program (K. Stainforth, personal communication, 2013) Overall Skillsoft is more of a collaborative organization than a centralized one.
Professionalism is the level of formal education and training of employees. Professionalism is considered high when employees require long periods of training to hold jobs in the organization (Daft & Armstrong, 2009, p. 305) Most of the jobs at Skillsoft require more training/education than others plus Skillsoft values experience. This information only pertains to the North American offices because other offices in the US and Europe might be a little different in what they require from their employees and their education. Most of the technical jobs at Skillsoft do require specific education and they receive ongoing training. Kelly’s job as a consultant requires a degree or experience equivalent (K. Stainforth, personal communication, 2013) Skillsoft also offers all employees up to $1500/year for schooling through an accredited institute plus employees have access to all of Skillsoft resources; many of which can be used for specific certifications (ex. Project Management, HR, Accounting, Etc) (K. Stainforth, personal communication, 2013)
Overall, Skillsoft enables business organizations to maximize business performance through a combination of comprehensive e-learning content, online information resources, flexible learning technologies and support services. (Skillsoft, 2012) With the high degree of professionalism and specialization within their organization, Skillsoft has the resources and technology available to adapt to any changes in the external environment. With these skills and resources as an organization, Skillsoft will continue to distinguish itself as a cutting edge pioneer in the field of learning.
Notice how the group identifies the OD concept (i.e. formalization), then provides evidence of the degree of formalization within the organization and ends the analysis by explaining how these structural dimensions impact the overall organizations performance.
7) FEEDBACK QUESTIONS
Please prepare a list of questions based on the requirements/expectations regarding the final report and any other relevant questions. You will have an opportunity to ask me these questions and other during our meeting (TBD). Feel free to list as many questions as you like.
8) CITATIONS AND REFERENCES
You must have citations and references for your report and you must us APA format. Failure to cite and reference your work will result in a mark of zero for the proposal.
9) Any other information you think is appropriate.
Final Note:
This report is worth 5% of your overall grade. This report will provide your group with valuable feedback to help you write your final report. If there are significant issues with your proposal, there will be an opportunity to improve your mark by resubmit your proposal.
Analysis Topics (provide appropriate evidence with references). Do not use the questions in your analysis, they are just for guidance purposes.
Chapter #1
Describe the structural characters of your organizations such as degree of formulization, centralization, specialization, professionalism, etc.
Chapter #2 (Choose one or more)
Identify the official and operative goals of your organization and supporting evidence.
Describe the strategy of the organization according to Porter’s Competitive Strategy and/or Miles and Snow Typography. Provide supporting evidence.
Chapter #3 (Choose one or more)
What Organization structure does your organization incorporate (functional, divisional, horizontal, geographical, matrix, or a hybrid/combination)? How do you know (it would be advantages to provide an organization chart)? Why is the organization structured this way? What advantages and/disadvantages does the organization experience as a result of having this organization structure?
Describe the communication/coordination that takes place within your organization using vertical and horizontal coordination mechanisms. Why do the use them? Are they effective?
Chapter #4 (Choose one or more)
Describe the various task sectors that have a direct impact on the organization (e.g. competition/industry, market/customers, technology, suppliers, etc.) Explain whether they each sector provides an opportunity or threat to your organization.
Describe the degree of complexity and stability in the environment and explain the degree of environmental uncertainty.
Describe how the organization responds to the environment (creating departments, the use of boundary spanning roles and/or buffering, forecasting and planning, adopting an organic/mechanistic organization form)?
Describe the degree of dependency on the environment and the strategies used to reduce these dependencies?
Chapter #9
Describe the size of the organization and how it impacts its operations?
What stage in the lifecycle process is your organization in and what is the crisis it faces? How is it able to overcome this crisis?
Is your organization in the decline stage? Which one and why?
What control systems are in place within the organization? Why?
Other areas you may want to explore for your proposal:
Chapter #5
Describe the interorganizational relationship(s) of your organization with its competitors (collaborative networks, institutionalism, resources dependency, and population ecology). How does the relationship your organization have with other organizations affect its operations (does it present your organization is with opportunities or threats)?
Chapter #7
Describe how the organization structure supports the core technology within your organization?
What type of non core service technology is primarily used within your organization according to Perrow’s model?
Chapter #10
What type of culture is in place in your organization and how does it impact its operations
Chapter #11
How does your organization respond to innovation in the external environment?
Does your organization use an ambidextrous approach? How is it implemented?
Describe how the structure of the organization supports new product/service innovation (horizontal linkage model)
How is innovation promoted in the organization? Does it use a technical or administrative core approach or both?
Is your organization open/readily respond to change? Why or why not?
Chapter #13
Is conflict a serious issue within your organization? What are the sources of conflict?
Further Excerpt from past proposals:
Chapter #9 Lifecycle
In analyzing MAC Cosmetics, it was determined that the company is in stage four of the life cycle - the elaboration stage. This stage is where the organization must get past the “need to deal with too much red tape” by developing teamwork (Daft R. , 2009). MAC has passed this need and is a strong example of using teamwork and collaborations to continue their growth.
This is clearly evident in their countless collaboration, with well-known brands, celebrities, and designers. Some brand that MAC has collaborated with include: Barbie, Hello Kitty, Disney Villains, and Wonder Woman (Ashley, 2012). In addition to these, MAC recently teamed up with Archie Comics for their new “Archie’s Girls” collection (CBR News Team, 2013). MAC’s newest celebrity team-up is with Rhianna for four collections under the name “RiRi (Hearts) MAC” (Sciarretto, 2013). In the past, MAC has also teamed up with other celebrities, such as Lady Gaga and Nicki Minaj (Sciarretto, 2013). MAC frequently sponsors fashion shows; a recent example of this is their sponsorship of MADE Fashion Week in Paris. They have sponsored MADE Fashion Week in New York for eight consecutive years, but this year, in Paris, MADE will feature an impressive lineup of designers (PR Newswire, 2013).
MAC’s partnerships have been a constant success and are an extremely important part in revitalizing the company and keeping it out of the “need for revitalization” crisis faced in the elaboration stage of the life cycle. It does this by effectively offering new product lines to MAC customers in a unique fashion, relating the MAC products to well-known and likeable organizations, brands or persons.
Notice the supporting evidence to demonstrate what MAC is doing to help itself revitalize itself (the major issue that organizations face in the elaboration stage)
External Environment (Chapter #4)
Since Boeing is such a large company operating in an environment that is heavily regulated, the environment is a huge influence on Boeing’s operations. When evaluating the environmental impact on Boeing, you have to look at Boeing’s two main divisions, Commercial Airplane and Defence, Space & Security, and determine what environmental forces affect each individually. The environmental forces we consider are the consumers, competition, contracts, outsourcing, technology, and regulations.
Boeing has an extensive list of clientele, as they sell their airplanes to customers in over 150 countries. (“Boeing in Brief,” 2013) The customers have various needs, and Boeing offers customization packages to all of their aircrafts so as to attract a larger target market. (“Commercial Airplanes,” 2013) Boeing’s largest customers include Air China, Europa Airways, Turkish Airways, both the Canadian and American airlines, and many more. (“Boeing Company: Orders and Deliveries,” 2013) The Defence, Space & Security division’s customers are also from all corners of the globe. The division has had and continues to work in conjunction with both the Canadian and American Militaries, and a plethora of other militaries around the world. The most notable success of the division in relation to its efforts in the space exploration industry would be that of the assembly and maintenance of the International Space Station. (“Defence, Space & Security,” 2013)
Boeing’s Commercial Airplane division only has one true competitor in the industry, the European aircraft manufacturing company Airbus. The recent release of the Airbus A380 is providing direct competition to Boeing’s newly released 787 Dreamliner. The A380 is similar to the Dreamliner as they are both capable of travelling around the same distance, and can be used for the same purposes. The major difference between the two products is the capacity as the Boeing 787 offers less seats than the A380, however the lack of seats in the Dreamliner is due to increased comfort and legroom. (Coburn, 2010)
When we look at the Defence, Space & Security division of Boeing it is clear to see they operate in a much more competitive market. Their main competitors include Lockheed Martin, EADS, General Dynamics, and BAE Systems. (“The World's Top 100,” 2012) However Boeing has a slight advantage on gaining U.S. Military contracts because they are an organization operating out of the United States. In a diverse and forever evolving market it is not uncommon for competitors to work together in joint ventures to create new, innovative products. Boeing has been a part of joint ventures throughout its history and they have recently joined Lockheed Martin in a contract with NASA. This joint venture is known as the Launch Alliance, as the two companies joined forces to win a military contract to launch satellites into orbit, using rockets developed by the two companies. (“Lockheed-Boeing Joint Venture”)
Boeing is dependent on suppliers for lots of essential materials, like aluminum, titanium and other composites like carbon and boron. However it is only recently that suppliers became responsible for 70% of the 787 Dreamliner’s components, compared to previous aircraft built by Boeing with about 35% outsourced components. (Denning, 2013) Boeing predicted that outsourcing could save costs and that it was necessary “…simply because the firm lacks the necessary expertise in some areas.” (Denning, 2013) Boeing experienced discrepancies between it’s predictions and actual results due to the fact that many of the firms they contracted to construct components to the 787 Dreamliner were simply not ready to handle such a large, continuous project. (Denning, 2013)
The United States government’s second largest contract is with the Boeing Company. (“The 10 Biggest”) Recently, Boeing has signed a contract to develop a fixed-wing aircraft and airframe structural components for military aircrafts. Boeing is currently working with two other companies to develop a seven-person spaceship, which should be ready for test flights in 2016. (Hennigan, 2012) The Commercial Airplane division of Boeing, which makes up 60% of the company’s total revenues, also has a multitude of large contracts with governments and airways all over the globe.
Although this is a good analysis of the ext environment, for the final report, it could also touch upon other sectors that impact Boeing operations such as technology and the government. In addition, this except doesn’t mention if the organization structure of Boeing is appropriate for the environment it operates in (the degree of environmental uncertainty). Otherwise, it is thorough and provides appropriate evidence to explain how these sectors impact Boeing’s operations.