Coming of the New Organization

20 years later - half the levels of management, 1/3 managers, different

from typical manufacturing firm, knowledge based - information based
organization
Economy moving from manual and clerical o knowledge.
Data to information -> from doing tasks faster to transformation of
processes, structure
First step of transformation- Capital investment decisions require six
analyses. Now with spreadsheet, days have been reduced to hours to
calculate all this
o
Thus converts opinion to alternate option analysis. Financial
decision becomes business decision
Second step - due to data processing capabilities reduce levels of
management. As some levels just relay information. Do not make decisions
nor lead.
Information based org needs more specialists than command and control
org
Number of People who advise, counsel shrinks drastically
Flatter structure.
Traditional teams - center of standards, training. Work happens in task
focussed teams.
Synchrony - combined team of marketing, manuf. And r&d

Requirements of Info based org

Common objectives

Expectations from each specialist set, feedback in place

Everyone should take information responsibility

Problems with info based org

Developing R&R and career opportunities for specialists

o
Not the usual technical to managerial role transition due to fewer
mid management positions
o
However specialists want management, partly due to pay

Creating unified vision in an org of specialists

o
Entire work divided across specialists. Hence common objective is
hard
o
Business needs a view of the whole

Devising management structure for an org of task forces

o
Reliance on task force creates a problem - who are the managers
here?
o
Will there be a rank within task force. Risky and controversial

Ensuring supply, prep and testing of top management

o
Lack of middle management to prepare a person
o
Reason why decentralization is accepted
o
Decentralization will become common.
o
Maybe similar to German Gruppe - small companies with own
management
o
Big companies might steal top management from smaller ones

First change In org structure - Making management equivalent to a task.

Germany, Deutsche Bank (1895-1905)
Second change - Command and Control. GM - decentralization, central
service staff, budgets and control
Third change - info based