Review chapter 9 : organizational agility

ORGANIZATIONAL AGILITY 

THE RESPONSIVE ORGANIZATION 

• Mechanistic Organization 

is a form of organization that seeks to maximize internal efficiency.

• Organic Structure 

is an organizational from that emphasize flexibility.

STRATEGY AND ORGANIZATIONAL AGILITY

• Organizing Around Core Capabilities 

a core competence gives value to customers, makes the company's products different from and better than those of competitors, and can be used in creating new products.

• Strategic Alliances 

is a formal relationship created with the purpose of joint pursuit of mutual goals

• The Learning Organization 

is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect and insights.

• The High involvement Organization 

top management ensure that there is a consensus about the direction in which the business heading.

ORGANIZATIONAL SIZE AND AGILITY

• The Case for Big  

Size creates scale economics, that is, lower costs per unit of production. and size can offer specific advantages such as lower operating costs, greater purchasing power, and easier access to capital.

• The Case for Small  

Smaller companies can move fast, provide quality goods and service to targeted market niches, and inspire greater involvement from their people.

• Being Big and Small

small is beautiful for unleashing energy and speed. But in buying and selling, sizes offers market power. The challenge then is to be both big and small to capitalize on advantages of each. 

CUSTOMERS AND THE RESPONSIVE ORGANIZATION 

• Customer Relationship Management a multifaceted ;process focusing on creating two way exchanges with customers to foster intimate knowledge of their need, wants, and buying patterns.
• Total Quality and Six Sigma an integrative approach to management that supports the attainment of customers  satisfaction through a wide variety of tools and techniques the result in high quality goods and service a method of systematically analyzing work processes to identify and eliminate virtually all cause of defects.
• ISO 9001 is a series of quality standards developed by a committee working under the international for standardization to improve total quality in all business for the benefit of the producers and consumers.
• Re-engineering often requires a fundamental change in the way the parts of the organization work together. 

TECHNOLOGY AND ORGANIZATIONAL AGILITY 

• Types of Technology Configurations  

Small Batch, Large Batch, Continuous Process.

• Organizing for Flexible Manufacturing  

Computer Integrated Manufacturing, Flexible Factories, Lean Manufacturing.

ORGANIZING FOR SPEED : TIME BASED COMPETITION 

• Logistics  

The movement of the right goods in the right amount to the right place at the right time.

• Just in Time 

A system that calls for sub assemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.

• Concurrent Engineering

A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high quality products that meet customer's needs.

Chapter 8 Organization Structure

Fundamentals of organizing
Differentiation: the organization is composed of many different units that work on different kind of tasks, using different skills and work methods.

Division of labor means the work of organization is subdivided into smaller task.
Specialization refers to the fact that different people or groups often perform specific parts of the larger task

Integration: these differentiated units are put back together so that work is coordinated into an overall product. Integration relates to how the different areas of the company coordinate their operations.


The Vertical Structure
Authority in Organization: the legitimate right to make decisions and to tell other people what to do. Organization authority refers to the hierarchy in a company from top level management to entry level employees.

Board of Director: a group that individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management related policies and to make decision on major company.
Chief executives officer : the highest ranking executive in a company whose main responsibilities include developing and implementing high-level strategies, making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point  of communication between the board of directors and the corporate operations.
Top management team

Hierarchical Levels: pyramid like ranking of ideas, individuals, items, etc., where every level (except the top and the bottom ones) has one higher and one lower neighbor. Higher level means greater authority, importance, and influence.
Span Of Control: the number of subordinates that a manager or supervisor can directly control. This number varies with the type of work: complex, variables work reduces it to six, whereas routine, fixed work increases it to twenty or more.
Delegation: the assignment of new or additional responsibilities to a subordinate
Responsibility, Authority, Accountability : responsibility means the assignment of a task that an employee is supposed to carry out; authority means that the person has  the power and the right to make decisions, give orders, draw on resources, and do whatever else is necessary to fulfill the responsibility; accountability means that the expectation that employees will perform a job, take a corrective action when necessary and report upward on the status and quality of their performance.
Advantages of Delegation: effective delegation raises the quality of subordinates and the service they provide to costumers or coworkers.

Decentralization: an organization wherein the decisions making authority does not sit with a central figure or group. Some decentralized organizations empower all levels within the hierarchy with decision influence.

The Horizontal Structure
The functional Organization: the classic organizational structure where the employees are grouped hierarchically, managed through clear lines of authority, and report ultimately to one top person.
The Divisional Organization: departmentalization that groups units around products, costumers, or geographic regions.
The Matrix Organization: an organization composed of dual reporting relationships in which some employees report to two superiors—a functional manager and a divisional manager
The Network Organization: a collection of independent, mostly single-function firms that collaborate on a good or service

Organizational Integration
Coordination by Standardization: establishing common routines and procedures that apply uniformly to everyone
Coordination by Plan: interdependent units are required to meet deadlines and objectives that contribute to a common goal
Coordination by Mutual Adjustment: units interact with one another to make accommodations to achieve flexible coordination
Coordination and Communication: To cope with high uncertainty and heavy information demands, managers can use two general strategies. First, management can act to reduce the need for information. Second, it can increase its capacity to handle more information.
Option 1: Reducing the need for information
Option 2: Increasing information-processing capability