The organization contains four key components the

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Unformatted text preview: mpany’s strategy. Since the performance of this work is one of the primary reasons for the organization’s existence, any analysis from a design perspective has to start with an understanding of the nature of the tasks to be performed, anticipated work flow patterns, and an assessment of the more complex characteristics of the work—the knowledge or skills it demands, the rewards it offers, and the stress or uncertainty it involves. Consider retail chains Harvey Nichols and WalMart. Both are engaged in furthering their retailing efforts, each through markedly different competitive strategies. Wal-Mart focuses on low cost and has processes designed to lower expenses and maintain low prices. The U.K.’s Harvey Nichols, Figure 4: Key Organizational Components Informal Organization Input Output The emerging arrangements including structures, processes relationships, etc. Work Strategy Formal Organization The basic and inherent work to be done by the organization and its parts The formal structures, processes, and systems that enable individuals to perform tasks People The characteristics of individuals in the organization 8 Oliver Wyman – Delta Organization & Leadership on the other hand, caters to a more affluent consumer base, offering customers a unique shopping experience with merchandise and sales force positioned accordingly. Despite their differences, each engages in the basic work processes inherent in store-based consumer retailing. The people: It’s important to identify the salient characteristics of the people responsible for the range of tasks involved in the core work. What knowledge and skills do they bring to their work? What are their needs and preferences, in terms of the personal and financial rewards they expect to flow from their work? What are their perceptions and expectations about their relationship with the organization? What are their demographics, and how do they relate to their work? The formal organization: This is made up of the structures, systems, and processes each organization creates to group people and the work they do and to coordinate their activity in ways designed to achieve the strategic objectives. The informal organization: Co-existing alongside the formal arrangements are informal, unwritten guidelines that exert a powerful influence on people’s collective and individual behavior. The informal organization encompasses a pattern of processes, practices, and political relationships that embodies the values, beliefs, and accepted behavioral norms of the individuals who work for the company. It is not unusual for the informal organization to actually supplant formal structures and processes that have been in place so long that they have lost their relevance to the realities of the current work environment. and culture—with all of the others. The tighter the fit—or, put another way, the greater the congruence—the higher the performance. Russell Ackoff, a noted systems theorist, has described the phenomenon this way: Sup...
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