Karteikarten
Ouchi Framework
Karten in diesem Stapel (9)
- 1Objective:• What are the mechanisms through which an organization can be managed so that it moves towards its objectives?
• How can the design of these mechanisms be improved
• What are the limits of each basic design? - 23 Major mechanisms:Market
Bureaucracy
Clan - 3Market Mechanism:Market is very efficient mechanism for control . Prices convey all of the information for efficient decision making. Additionally, price help reduce the problem of Goal incongruity – reward each employee in direct proportion to his contribution.
While the purchasing managers employ the market mechanism, they themselves are subject to bureaucratic structure in terms of their performance evaluation and employment contract.
A market cannot exist without a norm of reciprocity, but it requires no social agreements beyond that. - 4Bureaucratic Mechanism:Close personal surveillance and direction of subordinates by Superiors. Information necessary for task-completion is contained in rules. Rules concerning processes to be followed / standards to be adhered. This requires considerable administrative overhead and even more if the rules are qualitative .
Given this condition, the bureaucratic mechanism can be converted to market mechanism thru internal pricing mechanism for each of the warehouse activity. However such pricing may be difficult due to lack of benchmarks and even if it is feasible, determination of the completion of deliverables is an issue in many scenarios. - 5Market vs BuraucracyOverall, Prices are a far more efficient means of controlling transactions than are rules. However, the conditions necessary for frictionless prices can rarely be met, and in such conditions the bureaucratic form, despite its inadequacies, is preferred.
A bureaucracy contains not only a norm of reciprocity, but also agreement on legitimate authority, ordinarily of the rational/legal form. It particularly contains the idea that, in exchange for pay, an employee gives up autonomy in certain areas to his organizational superiors, thus permitting them to direct his work activities and to monitor his performance. - 6Clan Mechanism:if the manager is capable of selecting for promotion to foreman only that subset of workers who display a high internal commitment to the firm's objectives, and if he can maintain in them a deep commitment to these objectives, then his need for explicit surveillance and evaluation is reduced. In short, once the manager knows that they are trying to achieve the "right" objectives, he can eliminate many costly forms of auditing and surveillance.
The clan lacks the explicit price mechanism of the market and the explicit rules of the bureaucracy, it relies for its control upon a deep level of common agreement between members on what constitutes proper behavior, and it requires a high level of commitment on the part of each individual to those socially prescribed behaviors - 7SummaryDesign of organizational control mechanisms must focus on the problems of achieving cooperation among individuals who hold partially divergent objectives . People can be moved towards cooperative action through one of three devices:
• a market mechanism which precisely evaluates each person's contribution and permits each to pursue non-organizational goals, but at a personal loss of reward;
• a clan mechanism which attains cooperation by selecting and socializing individuals such that their individual objectives substantially overlap with the organization's objectives;
• a bureaucratic mechanism which does a little of each: it partly evaluates performance as closely as possible, and it partly engenders feelings of commitment to the idea of legitimate authority in hierarchies. - 8QuoteIn a sense, the Market is like the trout and the Clan like the salmon, each a beautiful, highly-specialized species which requires uncommon conditions for its survival. In comparison, the bureaucratic method of control is the catfish--clumsy, ugly, but able to live in the widest possible range of environments and, ultimately, the dominant species. The bureaucratic mode of control can withstand high rates of turnover, a high degree of heterogeneity, and it does not have very demanding informational needs.
- 9Which form of control is better?Depends on 2 issues :
Clarity with which performance can be assessed.
Degree of goal in-congruence
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- Beschreibung
- ea MCS Karteikarten am Ouchi Framework, erstellt von Mukundhan Srinivasan am 19/07/2016.
- Erstellt von
- Mukundhan Srinivasan · Jul 2016
- Aktualisiert
- 21 Jul 2016
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