Chapter 9
Organizational Agility
A. The
Responsive Organization
Mechanistic Organization : is a form
of organization that seeks to maximize internal efficiency.
Organic Structure : is an organizational from that emphasize flexibility.
Organic Structure : is an organizational from that emphasize flexibility.
B. Strategy And Organizational Agility
1)
Organizing
Around Core Capabilities
A core
competence gives value to customers, makes the company's products different
from and better than those of competitors, and can be used in creating new
products.
2)
Strategic
Alliance
A strategic
alliance is a formal relationship created with the purpose of joint pursuit of
mutual goals. managers typically devote plenty of time to screening potential
partners in financial terms. But for the Alliance to work, the partners also
must consider one anothers areas of expertise and the incentives involved in
the structure of the alliance.
3)
The
Learning Organization
is an
organization skilled at creating, acquiring, and transferring knowledge, and at
modifying its behavior to reflect and insights.
4)
The
High-Involvement Organization
In
high-involvement organization, top management ensures that there is a consensus
about the direction in which the business is heading. The leader seeks input
from his or her top management team and from lower levels of the company.
C. Organizational Size And Agility
a)
The
Case for Big
Size creates scale economics, that is, lower costs per unit of production. and size can offer specific advantages such as lower operating costs, greater purchasing power, and easier access to capital.
Size creates scale economics, that is, lower costs per unit of production. and size can offer specific advantages such as lower operating costs, greater purchasing power, and easier access to capital.
b)
The
Case for Small
Small size may improve speed. A salesperson learns about a customer’s new challenge.
Small size may improve speed. A salesperson learns about a customer’s new challenge.
c)
Being
Big and Small
Small is beautiful for unleashing energy and speed. But in buying and selling, sizes offers market power. The challenge then is to be both big and small to capitalize on advantages of each.
Small is beautiful for unleashing energy and speed. But in buying and selling, sizes offers market power. The challenge then is to be both big and small to capitalize on advantages of each.
D. Customers And The Responsive Organization
a.
Customer
Relationship Management
Customer Relationship Management is a multifaceted process, typically mediated by a set information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns.
Customer Relationship Management is a multifaceted process, typically mediated by a set information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns.
b.
Total
Quality and Six Sigma
Total quality management is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. In business, success depends of having high-quality products.
Total quality management is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. In business, success depends of having high-quality products.
c.
ISO
9001
a series of quality standards developed by a committee working under the International for Stadarization to improvefe total quality in all business for the benefit of the producers and consumers
a series of quality standards developed by a committee working under the International for Stadarization to improvefe total quality in all business for the benefit of the producers and consumers
d.
Re-engineering
often requires a fundamental change in the way the parts of the organization work together.
often requires a fundamental change in the way the parts of the organization work together.
E. Technology and Organizational Agility
Types of technology configurations
1.
Small
Batch Technlogies
2.
Large
Batch Technologies
3.
Continuous
Process Technologies
Organizing for Flexible
Manufacturing
1.
Computer
Integrated Manufacturing
2.
Flexible
Factories
3.
Lean
Manufacturing.
F. Organizing for speed : Time based competition
TBC has several key organizational
elements :
1.
Logistics
The movement of the right goods in the right amount to the right place at the right time.
The movement of the right goods in the right amount to the right place at the right time.
2.
Just
in Time
A system that calls for sub assemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.
A system that calls for sub assemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.
3.
Concurrent
Engineering
A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high quality products that meet customer's needs.
A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high quality products that meet customer's needs.
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