MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Welcome to the session on Balancing, Differentiation and Integration.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

In this session, we will understand about the Balancing, Differentiation and Integration.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Challenges of Organizational Design

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

The basic challenges of organizational design are

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Balancing, Differentiation and Integration

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Balancing, Centralization and Decentralization

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Balancing, Standardization and Mutual Adjustment

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Balancing, Differentiation and Integration

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Differentiation is the process by which an organization allocates people and resources

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to organizational tasks and establishes the task and authority relationship

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that allow the organization to achieve its goals.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

There are two forms of differentiation namely

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Horizontal Differentiation and Vertical Differentiation

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Horizontal Differentiation is the way an organization groups organizational tasks into roles

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and roles into sub-units

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otherwise called functions and divisions.

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Differentiation by specialization often referred to as

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Departmentalization mean

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

people with similar abilities working together on specialized tasks.

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Vertical Differentiation

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Vertical Differentiation is the way an organization decides its hierarchy of authority

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and creates reporting relationships to link organizational goals and sub-units.

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There is only satisfaction at work when employees prefer an environment

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with well-defined processes and rules.

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Integration

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Integration is the process of coordinating various tasks, functions and divisions

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so that they work together and not at cross-purposes.

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Integration is defined as achieving unity of effort among the various subsystems

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in the accomplishment of the organization's task.

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Integrating Mechanisms or Techniques

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

There are seven integrating mechanisms or techniques

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that managers can use as their organization's level of differentiation increases.

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One Hierarchy of Authority

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This differentiates people by the amount of authority they possess.

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Because the hierarchy dictates who reports to whom,

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

it coordinates various organizational roles.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

2. Direct Contact

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Direct Contact among managers creates a context within which managers from different functions or divisions

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can work together to solve mutual problems.

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However, several problems with establishing these contacts.

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Because managers from different functions may have different views

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about what must be done to achieve organizational goals.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

3. Liars and Roles

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Managers can increase coordination among functions and divisions by establishing liars and roles.

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When the volume of contacts between two functions increases,

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

one way to give one manager in each function or division the responsibility for coordinating with the other.

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These managers meet daily, weekly, monthly or as needed to solve handoff issues and transfer problems.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

4. Task Forces

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A temporary committee task force is a temporary committee to handle a specific problem.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

As an organization increases its size and complexity,

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

more than two subunits may need to work together to solve common problems.

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For example, they may require input from production, marketing, engineering and research and development.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

5. Team

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

A team is a permanent task force or committee.

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Most companies today, for example, have product development and customer contact teams

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to monitor and respond to the ongoing challenges of increasing competition in a global market.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

At Amgen, one of the most successful global biotechnology companies,

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

for example, the team system has proved to be a vital contributor to the company's success.

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6. Integrating Roles or Departments

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A full-time position established specifically to improve communication between divisions.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Balancing, differentiation and integration

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The design issue facing managers is to establish a level of integration

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that matches the organization's level of differentiation.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

As you can see, in this figure, you can see differentiation and integration opposing organizational factors.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Differentiation means fragmentation.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Differentiating mechanisms forces pushing the organization apart.

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Division of labor, technical supervision.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Integration, otherwise called coordination.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Integrating mechanism forces pulling the organization together.

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Formal hierarchy, chain of command.

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Standard policies, rules and procedures.

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Departmentalization, computer networks, cross-functional teams and committees.

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Human relations training for managers to help avoid interpersonal conflict.

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License individuals and groups to bridge gaps between specialists.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Break for questions.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Question number one.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

The most important elements and principles of organizational structure and structuring

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

include all but one of the following.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

The correct answer is delegation and protein decisions.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

They are not the most important elements and principles of organizational structure

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

because the other three, namely vertical differentiation, coordination and integration, horizontal differentiation

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

are the important elements and principles of organization structure.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Dash is the extent to which various parts of organization cooperate and interact.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

A. Integration, B. Differentiation, C. Formalization, D. Integration.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

So the correct answer is integration.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

As we have discussed earlier, integration is nothing but coordination and cooperation among various parts of the organization.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

In this session, we have understood about the balancing, differentiation and integration.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Happy learning.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian)

Thank you.

MBA_OB_unit 5_week 14_seq 3_Balancing Differentiation_Pandian

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