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New Forms of Work Organizations

Submitted to: Dr. B. R. Patil

Submitted by: Group 8

08PG305- Gina Mathew
08PG188- Ruchi Singh
08PG275- Shipra Biswas
08PG195- Sonal Gupta
08PG060- Swati Mehta
08PG349- Swayamwara Singh
New Forms of Work Organizations:

The concept of a work organization is broad with no strict definition. It talks about the way
work is organized and managed. The following subjects are among the basic elements of
work organization:

Scheduling: This refers to work and rest schedules, overtime, shift work, hours of work.

Job design: This includes the complexity of the work, the pace of work, the skill and effort
required, and the degree of control the worker has over the job.

Interpersonal issues: This would include the relationships that a worker has with supervisors
and co-workers.

Career concerns: This includes job security and the opportunity for advancement.

Management style: These could include participatory approaches, hierarchical approaches
and teamwork.

Organizational characteristics: This refers to the broader corporate culture and the level of
corporate communications.

Following are the different types of work organizations:

Lean Organization:

Lean organizations have the capability of producing high-quality products in an economical
manner, in lower volumes and bringing them to the market faster than the mass producers. A
lean organization can make twice as much product with twice the quality and half the time
and space, at half the cost, with a fraction of the normal work-in-process inventory. Lean
management deals with operating the most efficient and effective organization possible, with
the least amount of cost involved and zero waste.

   •   Business Strategy
   •   Customer Satisfaction
   •   Leadership & organization
   •   External Relations
   •   Production
   •   Operational capability
   •   Maintenance
   •   Engineering

How to take this rather philosophical concept and create a lean organization?

            •   Capture and utilize lessons learned at all levels.
            •   Improve communication through employee feedback programs. Eg: Toyota
                    •   Effectively trained employees
                    •   Incentive
                    •   Empowerment
            •   Create a Lean Training / Kaizen Office that is responsible for training

Learning organization:

The term ‘Learning Organization’ is given to a company that facilitates the learning of its
members and continuously transforms itself. Learning Organizations develop as a result of
the pressures facing modern organizations and makes it possible for them to remain
competitive in the business environment.

A Learning Organization has five main features:

   •   Systems thinking
   •   Personal mastery
   •   Mental models
   •   Shared vision
   •   Team learning
There are many benefits to improving learning capacity and knowledge sharing within
an organization. The main benefits are:

   •   Maintaining levels of innovation and remaining competitive
   •   Being better placed to respond to external pressures
   •   Having the knowledge to better link resources to customer needs
   •   Improving quality of outputs at all levels
   •   Improving corporate image by becoming more people orientated
   •   Increasing the pace of change within the organization.


Apple computers

Apple tackle the five disciplines:

   •   Systems thinking
   •   Personal mastery
   •   Mental models
   •   Shared vision
   •   Team learning


   •   Marked improvement in the company’s sales
   •   Market share grew to 15%
   •   Annual sales soared to $1.3 billion in ‘94.

Home office organization:

   •   Teleworking offered potential for release and solution to confused and disenchanted
   •   Potential to free the employee from the tyranny of the traditional office.
   •   It was preferred because of cost reduction, recruitment and work organization
       benefits, as well as the opportunity to mix work flexibility initiatives with family care.
   •   It also increased the working hour by reducing the commuting time.
Virtual Organizations:

These are a flexible network of independent entities linked by information technology to
share skills, knowledge and access to others' expertise in nontraditional ways. They need not
have all of the people, or sometimes any of the people, in one place to deliver their service.
The organization exists but you cannot see it. It is a network, not an office.

Characteristics of Virtual Organization:

   •   A dispersed network of skills and capabilities
   •   The use of telecommunications and computing technologies
   •   Flexible & dynamic
   •   Integration – collaboration, cooperation & trust

Why VO’s have become a necessity?

   •   A need for process innovation
   •   Sharing of core competencies
   •   Globalization
   •   Mobile workers
   •   Cost reduction
   •   Changes in employee values and attitudes toward work
   •   Costs and problems of traveling

Approaches in implementing Virtual Organizations:

   •   Telecommuting
   •   Telecenters
   •   Mobile working
   •   Hot desking
   •   Hoteling
   •   Virtual teams
Technologies supporting VOs:

   •   Collaborative technologies - Asynchronous & Synchronous
   •   Intranets
   •   Extranets
   •   Personal Devices
   •   Wireless Technologies
   •   Virtual Reality
   •   Portals

Technical & Issues

   •   The capability of the communications network
   •   Hardware and software compatibility issues
   •   Computer security
   •   The dynamic nature of technology (efficient managers)

Managerial Issues

   •   Potential abuse and wasted time
   •   Security
   •   Managing and controlling at a distance
   •   Ensuring employee self-motivation and self-discipline
   •   Defining goals and limits of responsibility
   •   Loss of personal contact/face to face interactions

High Involvement Organizations:

The task of creating a high-involvement organization requires making choices about
organizational design, including information, power, knowledge, and rewards that create an
environment in which individuals know more, do more, and contribute more.

Talking about the methods, the oldest, best-established approach is top-down, pyramidal,
hierarchical, mechanistic, and bureaucratic, and is best explained as control-oriented. The
newer, much less well developed process, the commitment or involvement-oriented
approach, is gaining in popularity and may eventually become the dominant model. To
compare the two approaches, it is necessary to analyze how they are likely to perform in
terms of cost, quality, speed, and innovation. The analysis needs to take into consideration
how they relate to the labour force and national cultural values.

   •   Employees are given the right mix of power, information, rewards and knowledge
   •   Encourage employee commitment to the success of the organization
   •   Employee oriented approach versus control oriented approach to management

Key Features of High-Involvement Organizations:

   •   Power: Power to act and make decisions about the work in all its aspects
   •   Information: Information about processes, quality, customer feedback, events and
       business results
   •   Rewards: Rewards tied to business results and growth in capability and contribution
   •   Knowledge: Knowledge of the work, the business and the total work system

Relationship between the four elements:

   •   POWER w/o knowledge, info. & rewards = poor decisions
   •   INFORMATION & KNOWLEDGE w/o power = frustration
   •   REWARDS w/o power, knowledge & info. = frustration & lack of motivation
   •   INFO., KNOWLEDGE & POWER w/o rewards = danger
           – nothing will ensure people will exercise their power in ways that will
               contribute to organizational effectiveness


   •   Organizational Structure: Flat, Lean, Mini Enterprise-oriented, Team-based
       Participative structure.
   •   Job Design: Individually enriched, Self-managing teams, Psychological needs of
   •   Information System: Open, Inclusive, Tied to jobs, Decentralized, Team-based,
       Participative in setting goals & standards.
   •   Career System: Tracks & counseling available, Train individuals to manage careers,
       Encourage horizontal moves, Open job posting, Provide feedback
     •   Selection: Realistic job preview, Team-based interviews, Involve people from the
         potential work area, Promote growth.
     •   Training: Heavy commitment, Peer training, Economic education, Interpersonal skills.
     •   Reward System: Open, Skill-based pay, Gain sharing, profit sharing & ownership
         Flexible benefits, All salaried workforce, Egalitarian perks.

The Power of Participation:

     •   Why should organizations initiate high involvement strategies?

    employee involvement = increased motivation & commitment

      higher levels of    +    higher levels of employee motivation       employee commitment



(Directly impacts the BOTTOM LINE)

Team based organizations:

Team-based organization is a new and powerful organizational structure that can apply to any
business; both service and industry. The system is generic and can apply to any kind and size
of organization. Companies being organized into teams as opposed to individuals, sections,
units, and departments represent the design model. Teams are responsible and accountable for
defined areas of responsibility over which the team has management responsibility through
some level of shared or independent decision making responsibility. Team-based
organization makes a major break from the traditional organization. It requires the inculcation
of different leadership skills, working relationships, and operational practices to more
efficiently and effectively utilize people to achieve organizational objectives.

   •   Mutual Trust

   •   Shared Responsibility

   •   Shared accountability for performance

   •   Employee Empowerment



   •   Improves Effectiveness

   •   Flexible Response to change

   •   Reduce Cost and improved efficiency

   •   Employee commitment

   •   Skill utilization
    •   Increased innovation

    •   Easily Monitored


    •   Teams without freedom and responsibility

    •   Strong teams in Conflict

    •   Organisations deeply structured around individual work

Organizational Effectiveness:

Organizational effectiveness is the concept of how effective an organization is, in achieving
the outcomes or goals the organization intends to produce. The idea of organizational
effectiveness is especially important for non-profit organizations as most people who donate
money to non-profit organizations and charities are interested in knowing whether the
organization is effective in accomplishing its goals.

An organization's effectiveness is also depends on its communicative competence and ethics.
The relationship between these three are simultaneous. Ethics is a foundation found within
organizational effectiveness. An organization must exemplify respect, honesty, integrity and
equity to allow communicative competence with the participating members. Along with
ethics and communicative competence, members in that particular group can finally achieve
their intended goals and objectives.


    •   Delighting customers

    •   Advancing toward your vision

    •   Fulfilling your aspirations

    •   Making money for you and your investors

    •   Developing your employees and their aspirations

    •   Making a positive impact on the community

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