Deck 7: Designing Organizations for Performance Excellence

Question 1

Explain how a focus on internal customers and a team-based organization supports the process view of organizations.

Answer 1

A focus on internal customers and a team-based organization can be combined together. Both support a process focused organization.
A focus on internal customers makes employees satisfied of the next person in the process as opposed to their supervisors. This makes them focus on the downstream person or their "customer" within the process.
A team-based organization is actually organized around process owners instead of functionally. The process owner is responsible for the entire process and operates a team of people from across different functions. Employees are responsible to the process owner as opposed to a direct supervisor.

Question 2

How do teams support organizational design for TQ

Answer 2

Using teams allows people to see and learn across functions that they wouldn't otherwise be exposed to. They get to know the organization from a process perspective and make changes and potentially substantial improvements that might be missed in a functional structure. Teams can provide synergies, enrichment and empowerment giving workers more pride in their product and their workplace.

Question 3

What is high-performance work What types of HR practices contribute to a high-performance work environment

Answer 3

High performance work is the expansion of the ordinary job to include innovation, flexibility, knowledge and skill sharing, alignment with organizational directions or strategies, customer focus and rapid response to changing business needs and marketplace requirements.
HR practices required to support high performance work are:
• Job enlargement
• Job rotation
• Job enrichment
• Empowerment
• Recognition

Question 4

Explain the differences between job enlargement, job enrichment, and job rotation. Provide some examples from your experience.

Question 5

Discuss how each of the organizations described in the section "Organizational Design for Quality in Action" apply the principles presented in the section on "Redesigning Organizations for Quality."

Question 6

Richard Palermo of Xerox was quoted in Fortune as saying that "people in different functions hate each other." Allowing for some exaggeration because of dramatic license, do you find this to be true Talk to several people in a functional organization, and ask them about their feelings for people in other functions. How would you explain the variation in attitudes If you were assigned to try to solve the problem of bad feelings between departments, how would you begin

Question 7

Could TQ be effective in a company with a mechanistic structure How would it work

Question 8

Do you feel that the institutional theory of structure is a good description of why organizations choose quality-oriented organization designs Why or why not

Question 9

The State University Experience
Wow! That State University video was really cool. It has lots of majors; it's close to home so I can keep my job; and Mom and Dad loved it when they visited. I wish I could know what it's really like to be a student at State. Hmmm, I think I'll ask Mom and Dad to take a campus tour with me....
I'm sure that we took our tour on the hottest day of the summer. The campus is huge-it took us about two hours to complete the tour and we didn't even see everything! I wasn't sure that the tour guide knew what he was doing. We went into a gigantic lecture hall and the lights weren't even on. Our tour guide couldn't find them so we had to hold the doors open so the sunlight could come in. About three-fourths of the way through the tour, our guide said, "State University isn't really a bad place to go to school; you just have to learn the system." I wonder what he meant by that ...
This application is really confusing. How do I let the admissions office know that 1 am interested in physics, mechanical engineering, and industrial design Even my parents can't figure it out. I guess I'll call the admissions office for some help....
I'm so excited! Mom just handed me a letter from State! Maybe they've already accepted me. What What's this They say I need to send my transcript. I did that when I mailed in my application two weeks ago. What's going on I hope it won't affect my application. I'd better check with Admissions....
You can't find my file I thought you were missing only my transcript. I asked my counselor if she had sent it in yet. She told me that she sent it last week. Oh, you'll call me back when you locate my file OK.
Finally, I've been accepted! Wait a minute. I didn't apply to University College; that's a two-year program. I wanted physics, Mt., or industrial design. Well, since my only choice is U. College and I really want to go to State, I guess I'll send in the confirmation form. It really looks a lot like the application. In fact, I know I gave them a lot of the same information. I wonder why they need it again Seems like a waste of time....
Orientation was a lot of fun. I'm glad they straightened out my acceptance at U. College. I think I will enjoy State after all. I met lots of other students. I saw my advisor and I signed up for classes. All I have left to do is pay my tuition bill. Whoops. None of my financial aid is on this bill. I know I filled out all of the forms because I got an award letter from State. There is no way my parents and I can pay for this without financial aid. It says at the bottom, I'll lose all of my classes if I don't pay the bill on time....
I'm not confirmed on the computer I sent in my form and the fee a long time ago. What am I going to do I don't want to lose all of my classes. I have to go to the admissions office or my college office and get a letter that says I am a confirmed student. OK. If I do that tomorrow, will I still have all of my classes ...I can't sleep; I'm so nervous about my first day....
Discussion Questions
What breakdowns in service proccsses has this student experienced How might these be a function of organizational design

Question 10

Many managers think that process thinking is only relevant in operations (e.g., manufacturing and service delivery). How is a process focus reflected in nearly everything that Boeing AS does in the Performance Excellence Profile at the beginning of this chapter and what does this suggest to the managers in the first question

Question 11

The State University Experience
Wow! That State University video was really cool. It has lots of majors; it's close to home so I can keep my job; and Mom and Dad loved it when they visited. I wish I could know what it's really like to be a student at State. Hmmm, I think I'll ask Mom and Dad to take a campus tour with me....
I'm sure that we took our tour on the hottest day of the summer. The campus is huge-it took us about two hours to complete the tour and we didn't even see everything! I wasn't sure that the tour guide knew what he was doing. We went into a gigantic lecture hall and the lights weren't even on. Our tour guide couldn't find them so we had to hold the doors open so the sunlight could come in. About three-fourths of the way through the tour, our guide said, "State University isn't really a bad place to go to school; you just have to learn the system." I wonder what he meant by that ...
This application is really confusing. How do I let the admissions office know that 1 am interested in physics, mechanical engineering, and industrial design Even my parents can't figure it out. I guess I'll call the admissions office for some help....
I'm so excited! Mom just handed me a letter from State! Maybe they've already accepted me. What What's this They say I need to send my transcript. I did that when I mailed in my application two weeks ago. What's going on I hope it won't affect my application. I'd better check with Admissions....
You can't find my file I thought you were missing only my transcript. I asked my counselor if she had sent it in yet. She told me that she sent it last week. Oh, you'll call me back when you locate my file OK.
Finally, I've been accepted! Wait a minute. I didn't apply to University College; that's a two-year program. I wanted physics, Mt., or industrial design. Well, since my only choice is U. College and I really want to go to State, I guess I'll send in the confirmation form. It really looks a lot like the application. In fact, I know I gave them a lot of the same information. I wonder why they need it again Seems like a waste of time....
Orientation was a lot of fun. I'm glad they straightened out my acceptance at U. College. I think I will enjoy State after all. I met lots of other students. I saw my advisor and I signed up for classes. All I have left to do is pay my tuition bill. Whoops. None of my financial aid is on this bill. I know I filled out all of the forms because I got an award letter from State. There is no way my parents and I can pay for this without financial aid. It says at the bottom, I'll lose all of my classes if I don't pay the bill on time....
I'm not confirmed on the computer I sent in my form and the fee a long time ago. What am I going to do I don't want to lose all of my classes. I have to go to the admissions office or my college office and get a letter that says I am a confirmed student. OK. If I do that tomorrow, will I still have all of my classes ...I can't sleep; I'm so nervous about my first day....
Discussion Questions
What types of process management activities should State University administrators undertake

Question 12

What are the advantages and disadvantages of the functional structure How does a process focus overcome some of the disadvantages

Question 13

You Want Us to Work With Marketing
On her second day as division level financial manager, one of Kay's employees (someone she had known for several years) told her about a transactional problem with sales data. Kay suggested that the employee resolve the issue with someone in marketing. The response was the last thing she expected: "Our department hasn't talked to marketing about these kinds of problems for seven years."
Shocked, Kay decided to do some investigating. She called one of the marketing managers she had known for many years and asked what he knew about this problem. He confirmed there was an issue between the two departments but said he didn't understand the details. What made this situation even more puzzling was that this barrier had survived a move of the entire division (85 people) from Denver to Phoenix six years earlier. Significant synergy could be gained by having the two groups work closely. How could managers in either department have permitted these silos Did they lack the courage to address the problem, or were they so disengaged from the day-to-day activities that they didn't even see it
To address this issue, Kay wanted to have both groups share their process flows with each other in a series of joint departmental meetings. Each session would develop process thinking and help the groups understand how to support each other by seeing themselves as customers and suppliers of each other. She called the marketing manager again and shared her plan. Without hesitation, he agreed to help. The marketing department already had process maps it shared with customers. They agreed not to tell their groups what situation had initiated these sessions.
Within a week, the first session was scheduled. It was interesting to watch everyone find a seat. One group gathered on the right side of the room and the other on the left. The meeting went well. At first, there were no questions or discussion, but toward the end, employees from both groups began exchanging ideas about how they could better support each other at their process touchpoints-the points at which the two departments' processes overlapped. The morning after the first session, one of the marketing employees came to Kay's department to ask for help with a process problem. Within three weeks, a customer service manager asked the group to participate in a conference call to the computer support department. The purpose of the call was to raise the priority for fixing a marketing system problem that resulted in data errors for both marketing and my department.
Because marketing now understood more about the data flow connection between our departments, they also understood the impact of the system error reached beyond the marketing group and recognized the potential to help both groups by correcting the problem. This joint effort was the first of many synergistic efforts between the departments. Remaining process review sessions were scheduled regularly, and cooperation between both groups continued to grow.
Discussion Question
What are some symptoms of typical cultural barriers that create obstacles to improvement

Question 14

What are the major types of structural change exhibited by organizations pursuing TQ

Question 15

You Want Us to Work With Marketing
On her second day as division level financial manager, one of Kay's employees (someone she had known for several years) told her about a transactional problem with sales data. Kay suggested that the employee resolve the issue with someone in marketing. The response was the last thing she expected: "Our department hasn't talked to marketing about these kinds of problems for seven years."
Shocked, Kay decided to do some investigating. She called one of the marketing managers she had known for many years and asked what he knew about this problem. He confirmed there was an issue between the two departments but said he didn't understand the details. What made this situation even more puzzling was that this barrier had survived a move of the entire division (85 people) from Denver to Phoenix six years earlier. Significant synergy could be gained by having the two groups work closely. How could managers in either department have permitted these silos Did they lack the courage to address the problem, or were they so disengaged from the day-to-day activities that they didn't even see it
To address this issue, Kay wanted to have both groups share their process flows with each other in a series of joint departmental meetings. Each session would develop process thinking and help the groups understand how to support each other by seeing themselves as customers and suppliers of each other. She called the marketing manager again and shared her plan. Without hesitation, he agreed to help. The marketing department already had process maps it shared with customers. They agreed not to tell their groups what situation had initiated these sessions.
Within a week, the first session was scheduled. It was interesting to watch everyone find a seat. One group gathered on the right side of the room and the other on the left. The meeting went well. At first, there were no questions or discussion, but toward the end, employees from both groups began exchanging ideas about how they could better support each other at their process touchpoints-the points at which the two departments' processes overlapped. The morning after the first session, one of the marketing employees came to Kay's department to ask for help with a process problem. Within three weeks, a customer service manager asked the group to participate in a conference call to the computer support department. The purpose of the call was to raise the priority for fixing a marketing system problem that resulted in data errors for both marketing and my department.
Because marketing now understood more about the data flow connection between our departments, they also understood the impact of the system error reached beyond the marketing group and recognized the potential to help both groups by correcting the problem. This joint effort was the first of many synergistic efforts between the departments. Remaining process review sessions were scheduled regularly, and cooperation between both groups continued to grow.
Discussion Question
How can a process focus help to break down silos in an organization

Question 16

Think back to an experience you have had with poor customer service from an organization. Whom did you blame for it Do you know anything about the design of the organization involved Do you think it was the fault of the individual(s) involved or could the problem have resulted from a poorly designed system Would what you have learned in this chapter change your reaction to receiving poor quality service How

Question 17

You Want Us to Work With Marketing
On her second day as division level financial manager, one of Kay's employees (someone she had known for several years) told her about a transactional problem with sales data. Kay suggested that the employee resolve the issue with someone in marketing. The response was the last thing she expected: "Our department hasn't talked to marketing about these kinds of problems for seven years."
Shocked, Kay decided to do some investigating. She called one of the marketing managers she had known for many years and asked what he knew about this problem. He confirmed there was an issue between the two departments but said he didn't understand the details. What made this situation even more puzzling was that this barrier had survived a move of the entire division (85 people) from Denver to Phoenix six years earlier. Significant synergy could be gained by having the two groups work closely. How could managers in either department have permitted these silos Did they lack the courage to address the problem, or were they so disengaged from the day-to-day activities that they didn't even see it
To address this issue, Kay wanted to have both groups share their process flows with each other in a series of joint departmental meetings. Each session would develop process thinking and help the groups understand how to support each other by seeing themselves as customers and suppliers of each other. She called the marketing manager again and shared her plan. Without hesitation, he agreed to help. The marketing department already had process maps it shared with customers. They agreed not to tell their groups what situation had initiated these sessions.
Within a week, the first session was scheduled. It was interesting to watch everyone find a seat. One group gathered on the right side of the room and the other on the left. The meeting went well. At first, there were no questions or discussion, but toward the end, employees from both groups began exchanging ideas about how they could better support each other at their process touchpoints-the points at which the two departments' processes overlapped. The morning after the first session, one of the marketing employees came to Kay's department to ask for help with a process problem. Within three weeks, a customer service manager asked the group to participate in a conference call to the computer support department. The purpose of the call was to raise the priority for fixing a marketing system problem that resulted in data errors for both marketing and my department.
Because marketing now understood more about the data flow connection between our departments, they also understood the impact of the system error reached beyond the marketing group and recognized the potential to help both groups by correcting the problem. This joint effort was the first of many synergistic efforts between the departments. Remaining process review sessions were scheduled regularly, and cooperation between both groups continued to grow.
Discussion Question
What types of tools and techniques can be used to help to support a process focus and improve the process of change

Question 18

What are the core processes in a video rental store A department store A grocery store How could these organizations be redesigned around these processes What barriers would need to be overcome to accomplish this

Question 19

Walker Auto Sales and Service, Revisited
The organization chart for Walker Auto Sales and Service is shown in Figure 7.9. Use this to address the discussion questions below.

Specifically in the context of an automobile dealership (see part A for this case in Chapter 1), discuss the problems that this functional structure might have.

Question 20

Find an organizational chart for your college or university. Is it primarily functional or process-focused What advantages or problems do you see with this organizational structure How might the structure be redesigned to better meet the needs of students and other stakeholders

Question 21

Walker Auto Sales and Service, Revisited
The organization chart for Walker Auto Sales and Service is shown in Figure 7.9. Use this to address the discussion questions below.

Using the principles discussed in this chapter, suggest some organizational redesign proposals that might better help this company pursue a performance excellence strategy.

Question 22

How does the organizational structure of Gold Star Chili reflect Deming's view of a production system (See the introduction to Chapter 6.)