CONCLUDING CASE: 

Stanley Lynch Investment Group

            The Stanley Lynch Investment Group is a large investment firm headquartered in New York. The firm has 12 major investment funds, Each with analysts operating  in a separate department. Along with knowledge of the financial markets and the businesses it analyzes, Stanley Lynch’s competitive advantage comes from its advanced and reliable computer systems. Thus an effectives information technology (IT) division is a strategic necessity, and the company’s chief information officer (CIO) hold a key role at the firm.

When the company hired J.T. Kundra as a manager of technology, he learned that the IT division at Stanley Lynch consists of 28 employees. most of whom specialize in serving the needs of a particular fund. the IT employees serving a fund operates as a distinct group, each of them led by a manager who supervises several employees (five employees report to J. T.).

            He also learned that each group sets up its own computer system to store information about its projects. the problem with that arrangement quickly became evident. As ). T tried to direct his group’s work, he would ask for documentation of one program or another. Sometimes no one was sure where to find the documentation; it might turn out to be stored in an obscure place such as only on someone’s flash drive. other times he would quickly get three different responses from three different people with three different versions of the documentation. and if he was interested in another group’s project or a software program used in another department, getting information was next to impossible. he lacked the authority to ask employees in another group to drop what they were doing in order to hunt down information he needed.

J.T concluded that the entire IT division could serve the firm much better if all authorized people had easy access to the work that had already been done and the software the was available. The logical place to store that information was online. From experience at a previous company, he believed that the easiest way to compile the information would be to set up a shared web project called a wiki-an 0nline document created through the collaboration of its users, who can look up or contribute information according to their knowledge and needs. The challenge would be how to get everyone to contribute, give that he had authority over so few of the IT workers.

            J. T. started by working with his five employees to build a wiki offering basic information presented in a consistent format. then he met with two higher-level managers who report to the CIO He showed them the wiki and explained that fast access to information would improve the IT group’s quality and efficiency. he suggested that the managers require all the IT employees to put their documentation on the wiki, and he even persuaded them that this behavior should be measured for performance appraisals. this last tactic was especially significant because at an investment company, bonuses for meeting performance targets are a big part of employees’ compensation.

The It employees quickly came toappreciate that the wiki would help the perform better. When they visited it, they could see from the original information that it would be useful. Adoption of the wiki was swift, and before long, the IT employees came to think of it as one of their most important software systems.

Questions

1.give an example of differentiation in Stanley Lynch’s organization structure and an example of integrations in this structure.

Answer: Example of differentiation in Stanley Lynch’s: that each group sets up its own computer system to store information about its projects. Sometimes no one was sure where to find the documentation; it might turn out to be stored in an obscure place such as only on someone’s flash drive. Example of integrations in this structure: would be to set up a shared web project called a wiki-an 0nline document created through the collaboration of its users, who can look up or contribute information according to their knowledge and needs.

2. what role did authority play in the adoption of the wiki by the IT division at Stanley Lynch? 

Answer: The entire IT division could serve the firm much better if all authorized people had easy access to the work that had already been done and the software the was available. The logical place to store that information was online. The easiest way to compile the information. They could see from the original information that it would be useful. 

3. describe how the IT division used coordination to achieve greater integration.

Answer: The IT division at Stanley Lynch consists of 28 employees. most of whom specialize in serving the needs of a particular fund. The IT employees serving a fund operates as a distinct group, each of them led by a manager who supervises several employees (five employees report to J. T.).

Review Chapter 9

        ORGANIZATIONAL  AGILITY  

      The responsif organization 

   The formal structure is put place to control people,decisions,and action.But in today’s fast-changing busines environment,responsiveness-quickness,agility,the  ability to adapt to changing demands-more vital than ever to a firm’s survival. A form of organization that seeks to maximize internal efficiency. An organization form that emphasize flexibility. 

      Strategy and Organizational Agility

1.      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 product.Think of core competencies or core capabilities as the roots of competitiveness and product  as the fruits.Think or core capabilities as the roots of comprtitiveness and products as the fruits.

             2.strategic

    A strategic allience is a formal relationship created with the purpose of joint pursuit of mutual goals.In a strategic alliance,individual organizations share administrative authority,from social link,and accept joint ownership.Such alliences are blurring firms’ boundaries.A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.

            3.The learning organization

     An organization skilled at creating,acquiring,and transferring knowledge,and atmodyfying its behavior to reflect new knowledge and insights.The only sustainable advantage is learning faster than the competition.

           4.The high-Involvement Organization

     In a high-Involvement Organization,top management ensures that there is a consensus about the direction in which the business is heading.The leader seeks input from his or her top management team and from lower levels of the company.

      Organiazational Size and Agility

1.      The Case For Big

Bigger was better after word war II, when foreign competition was limited and growth seemed limitless.

2.      The Case For Small

Smallercompanies can move fast, provide quality goods and services to targeted market niches,and inspire gerater involvement from their people.

3.      Being Big And Small

Small is beautiful for unleashing energy and speed. But in buying and selling, aize offers market power. The challege, then, is to be both big and small to capilatize on the advantages of each.

      Custumers and the Responsive Organization

1.      Custumer Relationship Mangement

A multifaceted proces focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs,wants,and buying patterns.

              2.Total quality  and six sigma  

                An integrative approach to management that supports the attainment of costumer                                            satisfaction through a wide variety of tools and techniques that result in high-quality goods and services.

           

               3.ISO 9001

             A series of quality standards developed by a committee working under  the Internatoinal        organization for standardization to improve total quality in all businesses for the benefit of producers and cosumers.

               4.Reengineering

             The principal idea of reengineering is to revolutionnize key organizational system and processes to answer  this question:”If you were the customer,how  would  you like us to operate?”

      Thechnology and Organizational Agility

               1.Types of tecnology configurations

           

              Small Batch Technologies;Technologies that produce goods and sevices in low volume.

              Large Batch Technologies;Technologies that produce goods and services in high volume.

              While only a fantasy a few years ago,mass customization is quickly becoming more   

              Prevalent.

           

             2.organizing for flexible manufacturing  

             

            Continuous process; A process that is highly automated and has a continous production flow.

            Mass customization;The production of varied.individually customized products at the low cost

            Of standardized,mass-produced products.

  

           

         

        3.Organizing for speed:Time-Based competition

            

           Time-based competition(TBC);  Strategies aimed at reducing the total time needed to deliver

           a good or service.

           Logistic;The movement of the right goods in the right amount to the right place at the right

           time.

          

        ORGANIZATIONAL  AGILITY  

      The responsif organization 

   The formal structure is put place to control people,decisions,and action.But in today’s fast-changing busines environment,responsiveness-quickness,agility,the  ability to adapt to changing demands-more vital than ever to a firm’s survival. A form of organization that seeks to maximize internal efficiency. An organization form that emphasize flexibility. 

      Strategy and Organizational Agility

1.      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 product.Think of core competencies or core capabilities as the roots of competitiveness and product  as the fruits.Think or core capabilities as the roots of comprtitiveness and products as the fruits.

             2.strategic

    A strategic allience is a formal relationship created with the purpose of joint pursuit of mutual goals.In a strategic alliance,individual organizations share administrative authority,from social link,and accept joint ownership.Such alliences are blurring firms’ boundaries.A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.

            3.The learning organization

     An organization skilled at creating,acquiring,and transferring knowledge,and atmodyfying its behavior to reflect new knowledge and insights.The only sustainable advantage is learning faster than the competition.

           4.The high-Involvement Organization

     In a high-Involvement Organization,top management ensures that there is a consensus about the direction in which the business is heading.The leader seeks input from his or her top management team and from lower levels of the company.

      Organiazational Size and Agility

1.      The Case For Big

Bigger was better after word war II, when foreign competition was limited and growth seemed limitless.

2.      The Case For Small

Smallercompanies can move fast, provide quality goods and services to targeted market niches,and inspire gerater involvement from their people.

3.      Being Big And Small

Small is beautiful for unleashing energy and speed. But in buying and selling, aize offers market power. The challege, then, is to be both big and small to capilatize on the advantages of each.

      Custumers and the Responsive Organization

1.      Custumer Relationship Mangement

A multifaceted proces focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs,wants,and buying patterns.

              2.Total quality  and six sigma  

                An integrative approach to management that supports the attainment of costumer                                            satisfaction through a wide variety of tools and techniques that result in high-quality goods and services.

           

               3.ISO 9001

             A series of quality standards developed by a committee working under  the Internatoinal        organization for standardization to improve total quality in all businesses for the benefit of producers and cosumers.

               4.Reengineering

             The principal idea of reengineering is to revolutionnize key organizational system and processes to answer  this question:”If you were the customer,how  would  you like us to operate?”

      Thechnology and Organizational Agility

               1.Types of tecnology configurations

           

              Small Batch Technologies;Technologies that produce goods and sevices in low volume.

              Large Batch Technologies;Technologies that produce goods and services in high volume.

              While only a fantasy a few years ago,mass customization is quickly becoming more   

              Prevalent.

           

             2.organizing for flexible manufacturing  

             

            Continuous process; A process that is highly automated and has a continous production flow.

            Mass customization;The production of varied.individually customized products at the low       cost

            Of standardized,mass-produced products.

  

           

         

        3.Organizing for speed:Time-Based competition

            

           Time-based competition(TBC);  Strategies aimed at reducing the total time needed to deliver

           a good or service.

           Logistic;The movement of the right goods in the right amount to the right place at the right

           time.

          

review chapter 8

ORGANIZING STRUCTURE

      Fundamental Of Organizing

The organization chart depicts the positions in the firm and the way they are arraged. Organization chart the reporting structure and devision of labor in an organization.

·         Differentiation

Several related concepts underlie the idea of structural differentiation. For example,differentiation is created through division of labor and job specialization.Divison of labor the assignment of different people or groups. Specialization a process in wich different individuals and units perform diffrent tasks.

·         Intergration

As organization differentiate their structures, managers must simultaneously consider issues of integration. Coordination and is related concept,Coordination, refer to the procedures that link the various parts of the organization to achieve the organization’s overall mission.

      The Vertikal Structure

·         Authority in Organizations

At the most fundamental level, the functioning of every organization depend on the  use of authority, the legitimate right to make decisions and tell other people what to do. For example, a boss has the authority to give an order to a subordinate.

·         Hierarchical levels

The authority levels of the organizational pyramid. The key responsibilities at this top level include corporate governance-a term describing the oversight of the firm by its executive staff and board of directors.

·         Span Of Control

The number of subordinates who report directly to an executive or supervisor is called the span of control. The implications of differences in the span of control for the shape of organization are straightforward.

·         Delegation

Delegation is the assignment of authority and responsibility to a subordinate at a lower level. Delegation is perhaps the most fundamental feature of management because it entails getting work done through othres.

·         Decentralization

In the centralized organizations, important decisions usually are made at the top. In decentralized organizations, more decisions are made at loewr levels.

      The Horizontal Structure

·         The Functional Organization

The functional structure may be most appropriate in rather simple, stable environments. Departmentalization arround specialized activities such as production, marketing, and human resources.

·         The Devisional Organiation

Departmentalalization that groups units around products, customers, or geographic regions. In this structure, separate divisions may act almost as separate business or profit centers and work autonomously to accomplish the goals of the entire enterprise.

·         The Matrix Organization

A matrix organization is a hybird form of organization in which functional and devisional forms overlap. An organization composed of dual reporting relationships in which some employees report to two superiors-a functional manager and devisional manager. Matrix organization have dual rather than a sigle line of command.

·         The Network Organization

The network organization is a collection of independent, mostly single-function firms that collaborate to produce a good or service.

      Organizing Integration

·         Coordination by standardization

Standardization contrains actions and integrates various units by regulating what people do. People often know how to act-and how to interact-because standard operating procedures spell out what they should do. Establishing common routines and procedures that apply uniformly to everyone.

·         Coordination by Plan

Coordination by plan does not require the same high defree of stability and routinazation required for coordination by standardization. Interdependent units are required to meet deadlines and objectives that contribute to a common goals.

·         Coordination by Mutual Adjusment

Coordination by mutual adjusment involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreable to everyone. Units interact with one another to make accommodations to achieve flexible coordination.

·         Coordination and Communication

Huge amounts of information flow from the external environment to the organization and back to the environment. To cope, organizations must acquire, process, and respond to that information. Doing so has direct implications for how firms organize. To function effectively, organizations need to develop structures for processing information.