Organizational Agility
Ch. 9: Organizational Agility:
The Responsive Organization
Mechanistic organization
A form of organization that seeks to maximize internal efficiency.
Organic structure
An organizational form that emphasizes flexibility
Organic Structure
1. Jobholders have broader responsibilities that change as need arises.
2. Communication occurs through advice & information rather than orders & instructions.
3. Decision making and influence are decentralized and informal.
4. Expertise highly valued.
Organic Structure (cont.)
5. Jobholders rely more on judgment than rules
6. Obedience to authority less important than commitment to the org. goals
7. Employees more interdependent, relate more informally & personally
Formal Organization Chart
Advice Network =
Knowledge Flow
Organizing around Core Competencies
Identify existing core competencies
Acquire/build core competencies important for future
Invest in competencies so company stays competitive
Extend competencies to find new applications and opportunities for future
Strategic Alliances
A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.
Best Alliances
The Learning Organization
An organization skilled at creating, acquiring, transferring knowledge, and at modifying its behavior to reflect new knowledge/insights.
Becoming a Learning Organization
Disciplined thinking
Attention to details
Decisions based on data and evidence rather than guesswork and assumptions
Search for new knowledge and ways to apply it
Review successes and failures to find lessons
Benchmark--identify & adopt best practices
Share ideas throughout organization
The High-Involvement Organization
A type of organization in which top management ensures that there is consensus about the direction in which the business is heading
Organizational Size and Agility
Large organizations tend to be less organic and more bureaucratic
Jobs tend to become more specialized in
The Responsive Organization
Mechanistic organization
A form of organization that seeks to maximize internal efficiency.
Organic structure
An organizational form that emphasizes flexibility
Organic Structure
1. Jobholders have broader responsibilities that change as need arises.
2. Communication occurs through advice & information rather than orders & instructions.
3. Decision making and influence are decentralized and informal.
4. Expertise highly valued.
Organic Structure (cont.)
5. Jobholders rely more on judgment than rules
6. Obedience to authority less important than commitment to the org. goals
7. Employees more interdependent, relate more informally & personally
Formal Organization Chart
Advice Network =
Knowledge Flow
Organizing around Core Competencies
Identify existing core competencies
Acquire/build core competencies important for future
Invest in competencies so company stays competitive
Extend competencies to find new applications and opportunities for future
Strategic Alliances
A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.
Best Alliances
The Learning Organization
An organization skilled at creating, acquiring, transferring knowledge, and at modifying its behavior to reflect new knowledge/insights.
Becoming a Learning Organization
Disciplined thinking
Attention to details
Decisions based on data and evidence rather than guesswork and assumptions
Search for new knowledge and ways to apply it
Review successes and failures to find lessons
Benchmark--identify & adopt best practices
Share ideas throughout organization
The High-Involvement Organization
A type of organization in which top management ensures that there is consensus about the direction in which the business is heading
Organizational Size and Agility
Large organizations tend to be less organic and more bureaucratic
Jobs tend to become more specialized in