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Introduction to Organization Design summary 23/24 MAN-BCU360

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An extensive summary of all important concepts from readings, papers, and all lectures. Document starts off with a list of important concepts, the summary starts below. Summary to comfortably pass your exam.

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March 21, 2025
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Woordenlijst
Parallelization: dividing a large task into smaller sub-tasks that can be executed concurrently.
Or sort similar orders in parallel streams based on well-defined criteria.
Example: Research institute & Factory for chairs
Operational tasks: Doing the research & Making the chairs
- Regulatory tasks: choose research topic & work method
- Supporting tasks: HRM/administration & cleaning
- Preparatory tasks: write research proposals & design chairs
Production structure:
- Supporting
- Preparatory
- Operational
- From macro to micro  from the whole to the parts
Control structure:
- Regulatory
- From micro to macro  from the parts to the whole
Macro: At this level you consider the overall structure, strategy, and alignment of the entire
organization. This includes decisions related to the organization’s mission, vision, goals, and
how different functions or departments are coordinated to achieve strategic objectives.
Meso: Involves looking at relationships and interactions between teams, departments etc.
Considers team dynamics and communication channels between departments. It’s a level that
bridges the gap between the organization as a whole and the specific roles and tasks of
individuals.
Micro: At this level you focus on individual components, roles, and tasks within the
organization. This includes job roles, responsibilities, skills, and processes at individual or
team level. Also design of teams.


Production structure example:
Going to restaurant  3 streams (ORDER FLOWS):
- Students
- Parents with kids
- Seniors
Can also think of company BeNeLux: 3 streams  3 countries.

,Macro & Meso: first parallelization, then segmentation.
Takt time: measurement of the speed at which employees need to complete a project to
satisfy the needs of a customer.
Bottleneck: point of congestion in a production system that occurs when workloads arrive too
quickly for the production process to handle.


2 Design parameters De Sitter:
Functional concentration: refers to the degree to which specific functions or activities are
grouped together within the structure of an organization.
Explanation:
Organizations may choose to concentrate similar functions or activities in specific units or
departments to enhance efficiency, coordination, and specialization. For example, marketing,
sales, and customer service functions might be concentrated in one department to streamline
communication and collaboration.
Differentiation of operational transformations: involves the extent to which various
operational processes or activities are differentiated or specialized within an organization.
Explanation:
Organizations often have multiple operational processes or activities that contribute to their
overall functioning. Differentiation refers to the degree of specialization or customization
within these processes. For instance, an organization may differentiate its manufacturing
processes to cater to different market segments or product lines, allowing for more flexibility
and adaptability.




Introduction to organization design summary
Week 1

,Lecture 1 – Introduction to the course (Article Hoogetem)
What is involved in design/designing in an
organization
- Products and user experience (product design,
creating functional/pleasing products)
- Buildings and user experience
- Systems and user experience (think of printing or
systems in an airplane etc.)
- Organizations and work experience (this is what
the course is about)


Principles of designing:
1. Hierarchy and centralization  rules and procedures
2. Specialization


There are 3 kinds of pressures on organizations that lead to workplace innovation (WPI):
- Ageing (demographic): there are less employees at working age and there is a growing
demand for employees as there is job growth in sectors  competition for talent.
Retention management: the ability to hold on to the employees you want to keep, for longer
than your competitors.
- Market evolutions (economic)
From the 1970’s the environment became VUCA. Because of this, innovation and
sustainability were suddenly needed in organizations. Examples:
Volatile  Brexit
Uncertain  Market reaction to new technology
Complex  Labor laws across countries
Ambiguous  Developing new products outside the organization’s core business
- Cumulative demands (societal): In 1960, organizations were focused only on
productivity (supply-driven). Later in 1970, organizations were pressured to focus on
quality (product-driven), in 1980 also on flexibility (demand-driven), in 1990 on
innovation (customer-driven), in 2000 on sustainability as well, and finally in 2010
organizations felt the pressure of workability (employee-driven). All these things add
up together makes the organization of today feel a lot of societal pressure. In unstable
environments, organizations should reinvent themselves to survive.
Functional organization

, An organization with a functional structure is characterized by short-cycle work that is driven
by Ford. Huge complexity in organization, as there is a lot of specialization. The idea is that
all efficiently organized parts add up to an efficient organization.
- Little cooperation between employees
- Not customer-driven
Structural organization
- First thing that is decided is who will make the decisions (top-down)
- Customer-driven
- Focus on mission and vision of organization
Conclusion
- We organize our organizations unconsciously often: hierarchy & specialization.
- High demographic, economic, and societal pressures urge change.
- WPI is able to deal with these changes  move away from too much specialization &
hierarchy.


Overview of course content: 3 approaches to organization design
1. Sociotechnical Systems Design. Design influences:
- Quality of the organization: the ability of the organization to effectively & efficiently
realize and adapt its goals.
- Quality of work: meaningfulness of work and possibility to deal with stress.
- Quality of work relations: effectiveness of communication in organizations.
- The sociotechnical systems design involves the question: “What design premises can
help improve these aspects?”.


2. Lean management.
This approach is a big trend nowadays and is very frequently used. Lean management is about
how organizations can limit the negative effects of batches and queues in (line) organizations.
- Delays cost time & money.
- Overproduction (stocks).
There are different approaches on Lean:
- Those only oriented on removing waste.
- Those aimed at facilitating ‘flow’.




3. Job design
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