Foundations of Management Week 6 Article - Do You Have a Well-Designed Organization?
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What are 4 tests that a organization design is "the right fit"?
- The Market Advantage Test
- The Parenting Advantage Test
- The People Test
- The Feasibility Test
What are the 5 tests to "Refining Design?"
- The Specialist Cultures Test
- The Difficult-Links Test
- The Redundant-Hierarchy Test
- The Accountability Test
- The Flexibility Test
What is the Market Advantage Test?
- What markets should be we compete in?
- How will we gain advantage over competitors in that market?
What is the Parenting Advantage Test?
Does the organization design compliment the natural corporate roles in the company?
What is the People Test?
Does the design reflect the strengths, weaknesses, and motivations of the people in the design?
What is the Feasibility Test?
Have you taken into account all the constraints that may restrict your design?
What are constraints that to consider in the Feasibility Test?
- Government regulations
- Stakeholder interests
- Information systems
- Corporate cultures
What is the Specialist Cultures Test?
Does your design protect units that need distinct cultures?
What is the Difficult-Links Test?
The test of whether units that require "tricky" connections and coordination can still maintain them.
What is The Redundant-Hierarchy Test?
- Are there layers of management that need removed?
- Does every layer of management have the resources that it needs?
What is The Accountability Test?
Are there effective ways to measure and control everyone's accountability?
What is The Flexibility Test?
Is it flexible of the future and allow for changes?
What is the point of all these tests?
To make small iterative changes that allow you to gradually adjust your design so to now bring down the entire company.
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