Chapter 4: Structures, Roles And Responsibilities In A Knowledge-Centric Culture


Changing Organisational Structures

The shift from manufacturing to service-based businesses that are heavily dependent on knowledge as a key differentiator, has resulted in organisations rethinking the structure(s) needed to deliver a more responsive and efficient service to their global customers, as well as maximising opportunities for organisational learning.

Traditionally, decisions about organisational structure related to choices such as:

  • Should we organise around products, markets, or function?

  • Should we organise globally, nationally, or regionally?

  • Should we structure for efficiency and flexibility?

  • Should we be centralised or de-centralised?

Up until the early 1980s, most large organisations were designed around the principles of Taylor’s scientific model of management. A defining feature of organisational design was ensuring control through the managerial hierarchy. There was a clear demarcation between the role of managers and other employees, with responsibilities and accountabilities clearly mapped out. The role of managers, under the Taylorist model, was to ensure that others in the organisation were doing the right things, at the right time.

However large bureaucratic structures, based on command and control management, have proved to be less effective in today’s ever-changing business world. Organisations have found that command and control structures: hinder decision-making, get in the way of creativity, are inflexible and difficult to change. In addition, in structures where jobs are specialised, relationships are formalised, and units are compartmentalised, knowledge does not readily flow. In the modern knowledge-enabled organisation success comes from speed, flexibility, integration and innovation. This contrasts with the success criteria applied previously: size, role clarity, specialisation and control.

So is there an alternative way of structuring organisations to enable knowledge to flourish and flow?

From their own research Sumantra Ghoshal and Christopher Barlett (1998) have identified that some organisations (e.g. Skandia, McKinsey, ABB) are replacing their traditional structures with what can best be described as an ‘integrated network structure’. This model enables organisations to develop distributed specialised capabilities and expertise, linked by horizontal flows of information, knowledge and other resources. The ‘integrated network structure’ is just one example of the boundaryless organisation.

In addition to distributed and specialised units, multi-functional and multi-disciplinary team working also form part of the normal way of doing business in ‘integrated network structures’. These structures are inherently more flexible; teams and groups can be more easily formed, re-formed, as well as disbanded. However, organisations need to be wary of becoming attached to any single way of working. They need to be willing to adopt different structures depending on what the business is trying to achieve. What is crucial is that managers and individuals need to embrace the ‘mindset flexibility’ discussed in Section 1.

Trust is a fundamental ingredient in making ‘integrated network structures’ work. This provides the glue that binds people together. Individuals need to be confident that colleagues, and others who are part of the networked organisation, will respond quickly to requests for information, support and help; speed being one of the three main success factors in networked organisations. The ideal state is a situation where whenever a problem arises in one part of the organisation others automatically step in to help, without waiting to be asked, or commanded to help. Relationships in networked organisations need to be founded on the principle of inter-dependency, as opposed to dependence, or independence.




Managing the Knowledge - HR's Strategic Role
Managing for Knowledge: HRs Strategic Role
ISBN: 0750655666
EAN: 2147483647
Year: 2003
Pages: 175

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