OrgUtil - Zone of ineffectiveness Maintenance energy curve...

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1 The Theory of Organization Utility: Derivation and Implications Supply Markets Market Demand Outputs Inputs Market Environment Organization Transformation System The organization as an energic transformation system . . . Import Energy Transform Energy Export Energy Organization Market Environment Maintenance Energy Organization energy allocations . . . Can input energy = output energy? Nope! I > O How can you export less than you import and get positive results? Transformation adds value . . . quantity demanded = ƒ(perceived value) Value of exports > Value of imports
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2 a b c d Task Administration Maintenance energy curves Maintenance energy allocations . . . Length = ƒ(allocation decisions) Slope = ƒ(scope scale & complexity) Which organization is more complex? A-B or C-D? Task Administration a b c d maintenance energy curves 5 3 3 5 The Organization Utility Function organization utility curve equilibrium points Task Administration Organization utility curve Zone of inefficiency
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Unformatted text preview: Zone of ineffectiveness Maintenance energy curve Point of optimal efficiency/effectiveness The Task/Administration Tradeoff • administrivia • bureaupathology 3 Task Administration Zone of inefficiency Zone of ineffectiveness Point of optimal efficiency/effectiveness waste waste The Effect of Misallocation Task Administration Zone of inefficiency Zone of ineffectiveness Point of optimal efficiency/effectiveness Allocation Bias = ƒ(maturity) New Organization Mature Organization So how do you know where to find the point of optimal effectiveness/efficiency? You chase it: 1. First, look for symptoms that you are off the mark 2. Then, make the indicated adjustments up or down the curve The process reflects the artistic dimension of management Compare your results to: a) past performance b) planned performance c) industry performance d) stakeholder expectations...
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