Strategy Driven Sustainable Organization Growth
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Organization ontology

Organization Viewpoint Models
Organization viewpoints define abstractions on the organization as system operations structure, infrastructure, operations systems, organizational capability. Viewpoints can be used to view aspects of the organization in isolation. 


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Organization System Structures
Organization system structures may delineate physical or logical organizing forms. Logically, organizations are complexes of people and/or groups that according to commonly agreed rules and procedures strive to realize one or more preset objectives. ​An organization logical  structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization.  The organizational structure also determines how information flows between levels within the company. 

The organization structure design focuses on enabling effective management of complexity, coordination and control of organizational behavior through activities, decision rules, positions and roles, and responsibilities. This is critical as the decision rights cascade grows, because the structure and operating principles as well as governance of the organization becomes more complex and critical to manage.
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  • Physical Structure
  • Infrastructure
  • Organization Capacity 
  • Operations Systems
  • Operating Model
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Organization Physical Structure 
Operations strategy defines through the design of the organization's structure and infrastructure how an entire business will allocate its resources to support operations and its strategic goals. Operations structure is a broad heading under which the strategic decision areas of operations related to physical attributes are categorized. The structural decision areas comprise:
  • Facilities - The location, size and focus of operational resources. These decisions are concerned with where to locate production facilities, how large each facility should be, what goods or services should be produced at each location, what market each facility to serve, etc.
  • Capacity - The capacity of operations and their ability to respond to changes in customer demand. These decisions are concerned with the use of facilities for example, through shift patterns, working hours and staffing levels. Decisions about capacity will affect the organization's ability to serve particular markets from a given location. 
  • Process Technology - The technology of the equipment used in operations processes. For example, the degree of automation used, the configuration of equipment, and so on.
  • Supply Networks - The extent to which operations are conducted in house or outsourced. Decisions about vertical integration are also concerned with the choice of suppliers, their location, the extent of dependence on particular suppliers, and how relationships with suppliers are managed.



Operations Infrastructure
​Operations strategy defines through the design of the organization's structure and infrastructure how an entire business will allocate its resources to support operations and its strategic goals. 

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The Operations Infrastructure is the broad heading under which strategic decisions related to operations strategic decision areas concerned with people and systems are categorized. Infrastructure decision areas comprise:
  • Organization structure - The design focuses on efficiency and effectiveness in managing the complexity, coordination, and control of organizational behavior which is critical to successful strategy execution as the cascade of objectives and decision rights grow and the organization becomes more complex to manage. Within the structure rules, policies, and procedures are uniformly and impersonally applied to exert control over organization members' behavior. Allocates special value developing tasks and roles to the employees and states how these tasks and roles can be correlated so as to maximize efficiency, quality, and customer satisfaction - the pillars of competitive advantage. ​Organizational structures are the manifestation of strategic orientations and regulate information flows, decision making, and patterns of behavior, that is, the “internal allocation of tasks, decisions, rules, and procedures for appraisal and reward, selected for the best pursuit of a strategy. Structures develop due to the need to organize behavior in a meaningful way and provide orientation for organizational members to set actions that comply with organizational strategy, organizational culture, and, as a result, accepted patterns of behavior. The behavior of an organization is usually guided by its strategic and tactical goals. ​Organization structure provides a visual explanation of the decision rights, clarifies roles and responsibilities, allocates human resources, and ensures a level of flexibility to respond to unexpected circumstances.unfolds as observable manifestations (phenomena) of predefined strategies as regulated by organizational structures.
  • Planning and Control Systems - Organization control systems equips managers with motivational incentives for employees as well as feedback on employees and organizational performance.
  • Human Resources - Human resources are the people that comprise the workforce including managers of an organization. Human resources represent one the category of assets employed by an organization to create and deliver products and services to customers. Human resource management is a function in an organization that is concerned with ensuring that the organization obtains and retains the skilled, committed and well-motivated workforce it needs.
  • Quality Management - Quality management policies and principles
  • New Product Development - The systems and procedures used to develop and design new prodcuts and services.
  • Performance Management - Financial and non-financial performance management and its linkage to recognition and reward systems.
  • Culture - This describes the expected cultural norms for how people collaborate within and across functions or teams. Organizational culture is the collective behavior of humans who are part of an organization, and the meanings they attach to their actions. Culture includes the organizational values, visions, norms, working language, systems, symbols, beliefs and habits. Culture manifests itself in the particular way things are done in an organization. It affects who gets hired, how they get trained (formally or informally), what behaviors get rewarded, who gets promoted, and virtually all organizational procedures and administrative protocols. Organizational culture can be supportive of the following: Learning and Development (Growth), Participatory Decision-Making, Power Sharing, Support and Collaboration, ​


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Organization Structure
Organization structure is the manifestation of strategic orientations and regulate information flows, decision making, and patterns of behavior (i.e., the “internal allocation of tasks, decisions, rules, and procedures for appraisal and reward), selected for the best pursuit of a strategy.  The organization structure defines the the basic units that comprise the foundational elements of the organization and how they relate. Structures develop due to the need to organize behavior in a meaningful way and provide orientation for organizational members to set actions that comply with organizational strategy, organizational culture, and, as a result, accepted patterns of behavior.

The functions that an organization needs to perform in order to meet its objectives and mission can be grouped into function areas - areas of responsibility and supervision. The functions and structure provide a way to group and organize an entity's activities or capabilities. Functional structure includes the functions, positions, and departments that make up a company's functioning, and shows how the functional parts fit together as a whole system. Companies often have departments and teams structured within functions. An accounting department for example, may be one piece of a larger finance function/department. The organizational structure helps make clear where teams and departments fit into a company's overall operations.

The behavior of an organization is usually guided by its strategic and tactical goals. An organization may be organized around functional lines, products and services, reporting structure, etc, ​



Positions Structure
The organizational Position Structure defines the competency realms or human resource capabilities, organized under organizational units, that are decisive in implementing the current and emergent strategy including creating and delivering value to customers. The organization position structure is designed to enhance communication and information flow among organization system elements (people or groups of people) that comprise the organization social system. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over members’ behaviors.

Everyone answers to someone; various managers within the company are held responsible for the management of the company's resources. The organizational position structure helps make clear who answers to whom and where they fit in the chain of command. With reference to a company's management there are various stakeholders like Board directors selected by the shareholders, and officers including CEO, COO, CFO, etc. appointed by the Board of Directors; managers who report to Officers; and shareholders.

Management Structure
All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities and authority to carry out different tasks.


 

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Organization Structure Design
Once organizational purpose/mission, corporate strategy, business and competitive strategy, and values are clear, the organization can be structured in such a way that roles and functions are clearly defined and differentiated, lines of communications and accountability untangled, and decision-making procedures transparent and functional. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over organizational members’ behaviors. The notion of “purpose” (as in purposeful endeavor) in social systems is expressed as a goal to be achieved by the positions within the organization. Members in that organization(or society) that hold those positions have to subscribe to that expressed purpose (goal) which gives coherence to their motivations, decisions, actions, and behavior. Obviously, the beliefs, motivations, etc. of the members of the organization that hold positions can also be influenced by culture (organizational, and environmental), as well as “self-awareness” (as it shapes learning and impacts decisions). In this formulation, “self-awareness” is an “internal” critical factor that can be expressed through “soft-goal” models (e.g., declaration of some condition that can influence the achievement of purposes/goals).


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Operations Management
Operations management is concerned with the management of a company's operations - the activities that produce and deliver a product or service to customers. Operations management encompasses management functions such as planning, implementation and execution, and supervising the production of goods and services. Operations management has both strategic and tactical roles in the organization. S
trategically (through Operations Strategy), operations management is concerned with determining operations approaches and capabilities needed to achieve the desired competitive position of the company as a whole, and operational goals. Tactically/Operationally, operations management is concerned with the daily tasks and tactics that transform materials or actions into a product or service. ​Not every organization will have a functional department called 'operations'; but they will all undertake operations activities, because every organization produces goods and/or delivers services.
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Operations Management Process

The operations management process utilizes the Operations System specified by the Operations Strategy to manage the operations process in creating and delivering value to customers. Operations process comprises the following operations functions:
  • Product Management
  • Supply Chain
  • Inventory
  • Scheduling
  • Quality
  • Facilities planning and management

The purpose of the operations process is to keep the current value chain activities that drive the delivery of products and services in the organization moving and functioning at peak levels. 
Work Systems
A typical business organization accomplishes its work load by creating a series of tasks that are performed and carried out as required. These tasks can include purchasing materials, selling services, hiring employees or responding to customers. Placing those tasks into series of organized and interconnected systems may benefit the company by introducing efficiency and order to the workday and ultimately increasing the bottom line.

Work systems allow everyday tasks to operate in a coordinated manner and provide a basic framework to produce services and products. Work systems are designed to accomplish a variety of tasks such as:
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  1. Work systems that accomplish a task and then end, Special Projects .e., Conference, data collection, etc.
  2. Work systems that are designed to manufacture a product for a specific time and then discontinued.
  3. Work systems that link together to form a larger work system, for example Production Lines. Production Work Systems link the Supply Chain Work System (material purchases),  the Design Work System (Engineering), and the Packaging Work System (produced a purchase ready product).
All work systems are comprised of a series of elements that influence the work system. These elements are interdependent and operate together to create a whole system. 

Elements or Components of Work Systems
The elements or components that define a work system include:
  1. Workers (Participants) - employees or contract workers.
  2. Task - Task at hand that needs to be done, and how the task should be accomplished.
  3. Organization - The Organization element is defined in terms of Organization Structure, Organization's Policies, and Leadership Practices. The Organization Structure includes the individuals, the roles in the company and how the roles relate regarding the work to be done.  The Organization's Policies include agreements, rules and statements that dictate the way the work needs to be completed. Leadership practices within the organization directs and controls the accomplishment of the work system and help maintain focus and motivation. 


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Copyright Enterprise Design Labs 2005 - 2018
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