LinkedIn emplea cookies para mejorar la funcionalidad y el rendimiento de nuestro sitio web, asi como para ofrecer publicidad relevante. Clipping is a handy way to collect and organize the most important slides from a presentation. Los recortes son una forma practica de recopilar diapositivas importantes para volver a ellas mas tarde. Troy is a leading ITIL® IT Governance and Lean IT authority with a solid and rich background in Executive IT Management consulting.
He is a frequent speaker at IT Management events and is a contributing author to multiple ITSM and Lean IT books, papers and official ITIL publications including ITIL’s Planning To Implement IT Service Management and Continual Service Improvement. If you have similar challenges to the 100’s of organizations we at Pink Elephant have worked with over the last 20 years you may have heard these statements before. IT was Albert Einstein who defined Insanity as doing the same thing over and over and expecting different results!
So that means we need to step back and examine the overarching goal and the root cause for why we are not achieving that goal.
In short IT’s goal is to be a strategic business partner who’s primary reason for existence is to enable our customer’s desired outcomes and objectives. In that context IT is like any factory where orders for goods and services are translated into results our customers want and are willing to pay for. So in order to do this well we need to understand the factory processes for turning demand into valued outcomes. This macro process model of the IT shop floor is called an operating model and its definition and management is essential to plan, manage and tune the flow of productivity through the value chain.
An operating model is a logical representation or blueprint of the IT value chain process architecture, agnostic to existing organizational structure and sourcing strategies.
The operating model initially provides an agreed framework against which to conduct a baseline gap assessment. Following the initial development of the Operating Model it provides the basis for Enterprise IT Continual Service Improvement and is reviewed and adjusted as required. In short the definition of an organization’s operational model provides Executive Leadership and Management with a critical tool to understand the root cause of challenges in the value chain and provides a visible model of understanding how and where to make improvements to solve the customer complaints. The structure of an organization is the manner in which various sub-units are arranged and inter-related.
Coordination is integration of activities of specialized units towards the common objective. Another important principle of organizational structuring is whether decision making is delegated to lower levels (de-centralized) or concentrated at the top (centralized). Line authority refers to the superior-subordinate relationship through the hierarchy of authority.
Ask participants whether the structure of an organization should remain stable throughout or change in response to environmental changes. One of the principles of management discussed during the previous session was 'departmentalization.' This principle is concerned with sectioning an institute into administrative units to enhance the probability of the institute achieving its goals by implementing its plans within the limits of its capabilities. EXHIBIT 8 also demonstrates a line organization in which the line of authority flows in an unbroken chain from the chief executive to the lowest organizational level, with each subordinate having one person to report to. EXHIBIT 10 provides an example of an institute that has been departmentalized by several of the rationales that were shown in EXHIBIT 6.
In the Rubber Research Institute example, it is not clear exactly where some of the sections should be placed. Exhibit 11 also shows a disciplinary organization which has been overlaid with a project organization to make a matrix organization. When Project A is completed or terminated, the staff members will return to their disciplinary departments. EXHIBITS 17, 18 and 19 show how a national research system could be integrated by using a matrix organizational approach. In EXHIBIT 17, the circles at an intersection of the matrix indicates staff drawn from an institute's department to work on a project, the number denoting the number of people drawn from the department and the check (Ö) indicating from where the project manager was drawn. EXHIBIT 18 shows how support services and administration relate to the research institutes. Organization is also defined as a system incorporating a set of sub-systems (Katz and Kahn, 1978). Organizational structure may differ within the same organization according to the particular requirements. Modern organizational structures have evolved from several organizational theories, which have identified certain principles as basic to any organization. Specialization enables application of specialized knowledge which betters the quality of work and improves organizational efficiency.
Coordination refers to integrating the objectives and activities of specialized departments to realize broad strategic objectives of the organization. In agricultural research institutions, where most of the research is multidisciplinary but involves specialization, coordination of different activities is important to achieve strategic objectives.
Unity of Command Every person in an organization should be responsible to one superior and receive orders from that person only.
The Scalar Principle Decision making authority and the chain of command in an organization should flow in a straight line from the highest level to the lowest. The Responsibility and Authority Principle For successfully performing certain tasks, responsibility must be accompanied by proper authority.
Span of Control This refers to the number of specialized activities or individuals supervised by one person. Departmentalization is a process of horizontal clustering of different types of functions and activities on any one level of the hierarchy. Product Departmentalization refers to the grouping of jobs and activities that are associated with a specific product.
Departmentalization by Users is grouping of both activities and positions to make them compatible with the special needs of some specific groups of users. Departmentalization by Territory or Geography involves grouping of activities and positions at a given location to take advantage of local participation in decision making. Departmentalization by Process or Equipment refers to jobs and activities which require a specific type of technology, machine or production process. Other common bases for departmentalization can be time of duty, number of employees, market, distribution channel or services.
Every organizational structure contains both centralization and de-centralization, but to varying degrees. Line authority refers to the scalar chain, or to the superior-subordinate linkages, that extend throughout the hierarchy (Koontz, O'Donnell and Weihrich, 1980). It is the responsibility of the manager to make proper and effective use of staff through their supportive functions.
An important issue in organizational structuring is whether the structure of an organization should be dynamic and change according to changes in the environment or remain stable in the face of such changes. Organizations can have simple to complex structures, depending upon organizational strategies, strategic decisions within the organization and environmental complexities. The traditional organizational structure is mechanistic and characterized by high complexity, high formalization and centralization. In a simple centralized organizational structure, power, decision making authority and responsibility for goal setting are vested in one person at the top. In large organizations and under well defined conditions, organization structure may be bureaucratic.
Divisionalized organizational design refers to a multiproduct or service design that separates different products or services to facilitate management planning and control. The matrix design blends two different types of designs, namely project and functional organizational designs (Kolodny, 1979). The choice of any type of organizational design should be in consonance with the organizational requirements, strategy and environment. Share on Facebook Tweet LinkedIn Print E-mailHow to bring maximum benefit to your twice-yearly marketing update. Thoughtfully listing the STRENGTHS, WEAKNESSES, OPPORTUNITIES and THREATS of your situation should be done at least once a year.
A SWOT analysis is useful for hospitals, medical groups, and individuals in private practice—it helps focus your marketing in areas that harbor the strongest benefits.
Create a four-part grid on a single piece of paper to provide an overview that helps visualize the relationships. STRENGTHS: List of your capabilities and resources that can be the basis of a distinct competitive advantage. OPPORTUNITIES: In addition to new or significant trends, what other external opportunities exist and how can we best exploit or benefit from each?
If you’d like to know more about putting this high-value assessment tool to work in your plan, we would be pleased to provide a well-informed and objective sounding board for you. Stewart GandolfChief Executive Officer and Co-Founder at Healthcare Success StrategiesStewart Gandolf, MBA, is CEO of Healthcare Success, a medical marketing and health care advertising agency. Emirates Airlines has an extremely attractive business model, which has paved the way for them becoming the fastest-growing international airline. The aviation education arm of the airline's business is a key fundamental strategy to the company's success. Emirates Airlines has leveraged their international airline domain knowledge into another key profit center, involving the development of software for the industry.
One of the more unique fundamental level strategies is how the company has successfully moved into the resort and tourism space: They have done so through the creation and acquisition of various resorts and spas, as well as by placing a huge emphasis on quality control, all of which has drawn great praise and, at the same time, lots of business. In our experience most IT staff are trying hard to please their customers and in many cases burning the midnight oil on a regular basis.
At a macro level we do this by taking in demand for new or modified services and efficiently and effectively supplying those demands based on business priority and direction.


In a classic manufacturing concept this means we need to intimately understand and map the flow of work on the factory floor regardless of which functions or suppliers are performing the interdependent tasks. In fact going back to the concept of the Theory of Constraints I wrote on in the last article it is a critical step in determining the cycle time constraints and applying Lean thinking to Continual Service Improvement.
IT Governance is responsible for (defining, establishing and measuring) the enterprise IT (vision, strategy, policies, structures and capabilities) required to support business value generation and corporate governance requirements. It’s provides a framework to identify and define the major activities, capabilities, process dependencies and critical success factors required to directly or indirectly convert customer requirements or requests into the expected service outcomes or deliverables. Consider that the final product will be unique for each organization and include several levels of detail and abstraction documenting the detailed capability areas, goals, critical success factors, and roles. Leavitt defined an organization as a particular pattern of structure, people, task and techniques. Show EXHIBIT 3 and discuss the importance of structure in providing guidelines on hierarchy, authority of structure and relationships, linkage between different functions and coordination with environment. The basic principles are specialization, coordination, de-centralization and centralization, and line and staff relationships. It can be vertical (kinds of work at different levels in the organization) or horizontal (division into departments). This involves placement of different units in the organization together or separately and deciding on patterns of relationship and communication. Obviously, the organization has to respond to changes in the environment as they affect its working. One of the first things that one notes about this exhibit is that it has been departmentalized by discipline. In the previous session, when we were discussing management principles, this was called the scalar principle. This is a relatively new form of organization that involves two intersecting chains of command and two approaches to departmentalization. Both project directors and disciplinary department directors report to the institute director.
For the duration of the project, however, they will report to and receive direction from the project manager on project matters. Matrix management definitely requires teamwork, communication and certain types of personalities.
It is useful to discuss at which level or office in the organization these requirements should be met. Here, as with the matrix structure, staff members are assembled from several divisions to carry out a project under the leadership of a project manager.
EXHIBIT 17 shows how programmes and projects under the Senior Deputy Director for Commodities, Production Areas and Extension, draw on the staff and facilities of the disciplinary central and regional research institutes. For example, in Project 'B' of the Fields Crops Programme, three people from Regional Research Institute 2 are conducting this project. The Deputy Directors for these two areas are responsible for organizing them for the national research system and ensuring that quality is maintained.
A common way of aiding the communications process is to establish committees to address important areas for the organization. Leavitt (1962) defines it as a specific configuration of structure, people, task and techniques.
These sub-systems are related group of activities which are performed to meet the objectives of the organization.
Nystrom and Starbuck (1981) have defined structure as the arrangement and interrelationship of component parts and positions in an organization. According to the classical approach, work can be performed much better if it is divided into components and people are encouraged to specialize by components.
At the same time, it can also influence fundamental work attitudes, relationships and communication.
Efficient coordination can also help in resolving conflicts and disputes between scientists in a research organization. Organizational theorists have over the years developed several principles relating to the hierarchy of authority for coordinating various activities.
Fayol (1949) considered this to be the most important principle for efficient working and increased productivity in an organization. Those responsible for performance of tasks should also have the appropriate level of influence on decision making.
Deciding the span of control is important for coordinating different types of activities effectively. It is closely related to the classical bureaucratic principle of specialization (Luthans, 1986). As organizations increase in size and diversify, functional departmentalization may not be very effective. The territorial units are under the control of a manager who is responsible for operations of the organization at that location.
In contrast, decision making in a centralized type of organizational structure is at higher levels. The extent of this can be determined by identifying how much of the decision making is concentrated at the top and how much is delegated to lower levels.
Line employees are responsible for achieving the basic or strategic objectives of the organization, while staff plays a supporting role to line employees and provides services. Since an organization exists in an external environment, it cannot remain indifferent to changes in its external milieu. The structure of the organization can be traditional (bureaucratic) or modern (organic), according to needs. The classical organization structure designs are simple, centralized, bureaucratic and divisionalized. Different divisions in the organization can further have simple centralized or functional designs, depending upon their size and activities. It is used to coordinate across departments for temporary, specific and complex problems which cannot be handled by a single department. Since the project type of organizational design is not considered stable, the matrix design attempts to provide permanent management structures by combining project and functional structures. While a simple design is needed for simple strategies, complex designs are necessary when organizational strategies involve complex interactions.
The simple centralized and bureaucratic organizational design based on functional departmentation focuses on work and is thus better suited for getting work done efficiently. At least twice each year, use the SWOT analysis to discover key internal and external issues and refresh the strategies and tactics of your marketing plan.
Here are a few ideas to maximize the value and generate effective strategies from this exercise.
No practice is immune to threats, but too many people miss, ignore or minimize these threats, often at great cost. Be Realistic: Use a down-to-earth perspective, especially as you evaluate strengths and weaknesses.
Apply Context: Distinguish between where the organization actually is today, and where it could be in the future. Update your marketing plan and goals: Once the key issues have been identified, define the action steps to achieve change.
From the creating and maintaining a state-of-the-art airline fleet to keen attention on how they treat their customers in each aspect of their business, everything is done with the very highest standards being applied.
Not only does it continue to add and keep key aviation talent within their employment, but it creates a huge footprint as it trains other people within the industry. The strategy of using their knowledge and trained programmers to create an IT development company for the international airline industry is an excellent addition to Emirates' portfolio of business strategies. In addition, the company has built a tourism service around this area of the business, fueling more growth from this particular fundamental level strategy. Consulta nuestras Condiciones de uso y nuestra Politica de privacidad para mas informacion. Consulta nuestra Politica de privacidad y nuestras Condiciones de uso para mas informacion. However they are frustrated that it does not seem to make a difference to overall customer satisfaction. To do this you need to understand the macro process flows that tie together capability areas related to customer engagement, pipeline, operations, Continual Improvement and Governance activities. Jack Probst and I recently developed the following Operating Model description to provide clarity about what an Operating Model is and how it is used as part of IT Governance.
The operating model provides the organizational guidance and structure to support value generation. As EXHIBIT 4 shows, in designing an organization due consideration has to be given to ensure clarity, understanding, de-centralization, stability and adaptability. These are concerned with (1) the grouping of the institute's staff into administrative units, and (2) the flow of authority and responsibility within an institute.
The classical organizational structure includes simple centralized design, bureaucratic organization and divisionalized organization. Ask participants if they have examples from their institutes of departmentalization by discipline, as in EXHIBIT 8, or by commodity, as shown in EXHIBIT 9.
Then go back to EXHIBIT 10 and ask the participants to group the Rubber Research Institute departments, divisions and groups under the rationales of EXHIBIT 1.
One way of departmentalization is almost always according to projects or programmes, the other usually being either disciplinary or functional. As shown in the exhibit, Project A draws 4 staff members from the Plant Physiology Department. The disciplinary department directors, however, normally maintain responsibility for personnel and administrative matters, such as salary reviews and personnel development activities.


Functional officers or divisions are often reluctant to release personnel and other resources to projects in other divisions. In the modified matrix case, however, the project manager reports to his or her department head instead of to the institute director. Two staff members are from the Irrigation and Salinity Department and one person, who is also the project manager, is from the Soil Physics Department. The institute directors are concerned with the productivity of these services in assisting the institute to carry out its work. EXHIBIT 19 shows an Executive Committee, together with committees for Quality Control, for Productivity, for Support Services and for Administration. However, this may not always be possible, particularly in large organizations or in research institutions.
Departmentalization is conventionally based on purpose, product, process, function, personal things and place (Gullick and Urwick, 1937). In a research organization the groupings could be research, production, agricultural engineering, extension, rural marketing and administration.
The organization has to be further divided into separate units to limit the span of control of a manager to a manageable level (Luthans, 1986). In agricultural research institutions, regional research stations are set up to take advantage of specific agro-ecological environments. The degree of centralization and de-centralization depends on the number of levels of hierarchy, degree of coordination, specialization and span of control. The relationship between line and staff is crucial in organizational structure, design and efficiency. Specialized staff conduct technical work that is beyond the time or knowledge capacity of top management, such as conducting market research and forecasting.
However, the extent of changes would depend upon the degree of influence the changing environment exerts on the efficient functioning of the organization and sub-units. The basic requirement of a simple centralized structure is that it has only one or two functions, and a few people who are specialists in critical functions. The main advantage of this combination is that the matrix design balances both technical and project goals and allocates specific responsibilities to both. Consequently, matrix organizations could lean towards chaos and disorder, and even lead to power struggles unless power between line and project manager is skilfully balanced. The team or project type of organizational design is appropriate where inputs from several functional areas are required.
Weaknesses can sometimes be the absence of certain strengths, and in some cases, a weakness may be the reverse side of one of your strengths. This success is widely attributed to Emirates' attention to fundamental strategic detail, and has thrived through competition, despite by being owned by the government of Dubai.
This image and brand recognition alone that is generated from this particular business segment renders it a valuable strategy. Thus, they have different functions and goals, which could lead to conflicts, but they should be avoidable. The simple centralized design is suited for smaller organizations, where power, decision making authority and responsibility for goal setting are vested in one or two persons.
It is the way universities are departmentalized and most of the early research institutes used a similar approach. The check (Ö) indicates that the project manager for Project A was drawn from the Virology Department. The exhibit is self-explanatory, with the possible exception of the term 'efficiency' under disciplinary or functional management, and 'effectiveness' under project management. A modified matrix structure is also used for complex activities in uncertain environments, as in the case with the matrix structure. The Deputy Directors for the Central and Regional Agricultural Research Institutes focus on the technical quality of the output of their institutes, in support of the national programmes.
For project matters, the project manager will report to the head of the Field Crops Programme for the duration of the project. There are different ways by which administrative control and reporting requirements can be exercised in the organization, as shown in EXHIBIT 14. Discuss with the participants the need for these committees, as well as their suggested composition and meeting schedule.
Vertical specialization in a research organization refers to different kinds of work at different levels, such as project leader, scientist, researcher, field staff, etc. There are four main causal factors which could unfavourably affect attitudes and work styles. Therefore Fayol (1949) felt that members in such organizations could also communicate directly at the same level of hierarchy, with prior intimation to their superiors.
In an agricultural research institution, functional departments can be further differentiated by products and purpose or type of research. The manager is generally an expert in all related areas of functions and is responsible for coordination.
Professional bureaucracy depends upon efficient performance of standardized but complex work. Members from different departments and functional areas constitute a team, in which every member provides expertise in their area of specialization.
Technical goals refer to how well work is done, while project goals relate to issues such as type of work to be done and its costs. An adhocratic structure is flexible, adaptive and organized around special problems to be solved by a group consisting of experts with diverse professional skills (Robbins, 1989). Disadvantages of specialization would include adverse effects on fundamental work attitudes, relationships and communication. The bureaucratic structure is suited where standard methods and procedures are employed for ensuring work performance. For example, 'effective use of specialists' refers to an ability within an organization to use specialists across divisional lines. Likewise, specialists feel comfortable working with their technical peers and colleagues within their own department, and might feel ill at ease being transferred - even temporarily - to another division.
Efficiency in disciplinary or functional management refers to managerial efficiency in managing financial, equipment and other resources. However, when the project tends to be small, it is often more efficient to use the modified matrix approach.
As can be seen from this figure, some project managers may be drawn from institutes, as in the preceding example, or they may come from the programme staff, as is the case for Project 'A' under the Animal Husbandry Programme. People refers to the skills, attitudes and social interaction of the members of the organization. Horizontally, work is divided into departments like genetics, plant pathology, administration, accounts, etc. Organization staff (such as centralized personnel, accounting and public relations staff) provide services to the organization as a whole. Figure 3 shows a very simplified matrix organization design in which department heads have line authority over specialists in their departments (vertical structure). If plant protection includes many disciplinary approaches then it would be better placed under the commodities and production areas category. This means that a good chemist, for example, may have opportunities to work on other projects outside his or her department, and does not have to rely only on projects within his or her department. Effectiveness in project management refers to the effectiveness of the project in achieving its goals and objectives. In EXHIBIT 16, the circle around the staff number for a project from a department indicates that the project manager is located in this department. However, this structure has to become more complex for growth, diversification or other reasons. The structure of standard bureaucracy is based on functions, large technical staff and many mid-level managers. Since this is not always desirable or possible, employees could also relate with each other on a 'gang plank.' The responsibility and authority principle establishes the need for authority along with responsibility for accomplishing tasks. The environment is also important, especially when one considers disciplines to stimulate new research projects and ideas.
Managerial efficiency, of course, can greatly influence the effectiveness or lack of effectiveness of a project. These assignments are made at the beginning of each project through collaboration between appropriate functional and project managers. Such a design is suitable for high technology and high growth organizations where an arranged and inflexible structure may be a handicap. It is possible, nonetheless, to have an effective project which was not efficiently managed.
Organizational structure thus refers to the institutional arrangements and mechanisms for mobilizing human, physical, financial and information resources at all levels of the system (Sachdeva, 1990). Not only is there a tendency for there to be more and better equipment and facilities within a matrix management system, the equipment and facilities tend to be utilized more, and are therefore more cost effective.
Departmentalization is the process of grouping different types of functions and activities of the organization. Departmentalization may be functional, by product, or by users, territory, process, equipment, etc.



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