Structural Frame

By: Melissa Stickland, Joey Briggs, Jennifer Wilker, Viola Gilbert and Chad Geary

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

Origins of Structural Perspective

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

 Max Weber "Monocratic Bureaucracy" Several major features of model:

o o o o o o
Fixed division of labor Hierarchy of offices

Origins Continued...

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

 Goals in mind Environment Talents of workforce Available resources

Designing A Structure That Works

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:
o Size and Age o Core process o Environment o Strategy and goals o Information Technology o 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: o Determined long-range goals o Objectives of an organization o 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

 A better-educated workforce expects and

6) Nature of the Workforce

often demands more freedom in daily work routines

o Trying to tell a Harvard professor what to teach
is an exercise in futility o 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

(workers who provide service/teachers)

(principals/foremen/middle management)

(superintendent/schoolboard)
(technicians/analysts)

(nurses/custodians/secretaries)

Operating Core Administrative Component Senior Managers Specialists Support Staff

Simple Structure
Start-up/mom & pop operation Two Levels - Strategic apex & Operating level

Virtue Vice
show

flexibility/adaptability/1 or 2 people run the

- boss too close to operations/authority may block change

 Important decisions are made at the strategic apex Day-to-day operations are controlled by managers &
standardized procedures

Machine Bureaucracy

Large support staffs &

technostructure

Example: McDonalds Challenges: 1. Motivate/satisfy workers without

undermining consistency/uniformity 2. Constant tension between headquarters and local managers

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

Professional Bureaucracy

Example: Harvard
Challenges: 1. Quality control and coordination 2. Responds slowly to change

 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. Challenges: 1.
Offers economies of scale, resources, and responsiveness while controlling economic risks Headquarters may lose touch with operations 2. Headquarters wants oversight & divisional managers try to evade corporate control.

Divisionalized Form

 Loose, flexible, and organic structure Characteristics:

Adhocracy

1. Dont believe in hierarchy, rule books, dress codes, etc 2. Ambiguous authority structure 3. Unclear objectives 4. Contradictory assignments

 Organizational structure form more circular than a

defined hierarchical pyramid (spider web)

Helgeson's Web of Inclusion

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

 Restructuring must take into account structural

configurations

Issues in Restructuring

Each component exerts distinct pressures.

o Strategic apex pushes for more alignment,

centralization. o Middle managers try to protect autonomy and room to run their own units. o Technostructure pushes for standardization, believes in measurement and monitoring. o Support staff prefers less hierarchy, more collaboration.

 The environment shifts (regulation/compliance)

o Example: Health Insurance Portability and
Accountability Act (HIPPA)

Why Restructure

Technology changes Organizations grow Leadership changes

o Example: Boeings shift from piston to jet engines o Example: Automotive mfg shift to hybrid cars

Making Restructuring Work

Citibanks back room

Back room structure - machine bureaucracy (ex. McDonalds) Issues: o Productivity, errors, expenses rising 20% per year Phases: o Phase 1 Implemented new computer system for control and forecasting o Phase 2 Studied how the back rooms processes worked o Phase 3 Broke pipeline into smaller lines (different product) with managers for each line Challenges: o Technical core strongly resisted the intrusion

 Emphasized customers and employees Historic Roots Competition

o Low morale o High costs o Threats

Need for Change

Six flows

o Declining customer service

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

o Production delays
o Slow communication o Frustrated employees & customers

 Two individuals given authority over

specific areas of the groups work
o Reduces boss's control o Slows communications o Erodes morale o Decrease performance

Dual Authority

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

communication skills

Multiple connections Information flows High morale Requires effective

Teamwork and Interdependence

Team Sports
o Every competition calls for its own unique

patterns of interactions

o 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)

 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"

Basketball

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?

Determinants of Successful Teamwork

Team Structure and Top Performance

Katzenbach and Smith o 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.

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

Self-Managing Teams

Examples of Self-Managing Teams

Classic Multi-decade Example