Study #1

Study #1 - January 14th LECTURE The important ingredients...

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January 14 th LECTURE The important ingredients of organization are hierarchy, specialization, standardization, and formalization . All make up a bureaucracy. (HSSF model) This model should help explain the following things: efficiency, expand globally quickly, drive change from top, work force, rapid learning, macro order from micro chaos, external environment, and information processing. Individuals are people…Groups are people with shared values…Organizations are sets of people with shared goals. *Machines, such as computers, can be considered members of an organization. Case study for HSSF model: McDonalds Hierarchy : layering with pyramid authority: headquarters headquarters staff regional manager store manager shift manager associates Specialization : division of work: French fries, job rotations, cleaning, stocking, departments, etc. Standardization : control of variance: signs/logo, layout of stores, food itself, furnishing, cash registers, number of ketchup packets, etc. Formalization : rules and regulations: clean uniform, polite, ordering codes, cleanliness, cooking times, etc. This approach allows McDonalds to be more efficient (since all operations are standardized) expand quickly , drive change from the top , have easy information processing , as well as: -cut costs on workers (since the jobs are easy and low skill) and provide rapid learning -“ create macro order from micro chaos ”: people are shaped by the system without regard to their personal preferences, characteristics etc. -create a stable external environment Another case study: firebombing Japan in WWII (Tokyo attacked March 9-10, 1945) *Has to do with theories of airpower and disputes over the command and control of such missions— should the theater commander or the air force commanders be making the calls? HSSF model: Hierarchy : FDR Sec of War Joint Chiefs of Staff CINC USAF 20 th Air Force (LeMay) Wings Groups Squadrons B-29s Specialization : Navy vs. USAF, fighters v. bombers, various bases, crews and support, bomb handlers. Standardization : Planes all the same, bombs standardized, engine maintainence, crews, targets, bullets Formalization : Communications, plans, when to abort, uniforms, discipline, protocol. Effects: Increased efficiency of destruction, B-29 force can be rapidly expanded , crews are needed quickly without much training. -LeMay is able to concentrate on fire bombing instead of having to deal with mechanical issues and things like that because of this structure ( driving change from the top ). In addition he shows the rapid learning because he brings knowledge from Germany to the Pacific. -There is a good deal of “ micro chaos ” because of variables about pilots and their individual decisions/stress, etc. However since the system is sufficiently large there is order on a greater scale . -The
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This note was uploaded on 05/02/2008 for the course ECON 161 taught by Professor Yuichikitamura during the Spring '07 term at Yale.

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Study #1 - January 14th LECTURE The important ingredients...

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