| Men cease to interest us when we find their | | | | structure that allows them to response faster to |
| limitations. The sin is limitations. As soon as you once | | | | market actions. Authors Nadler and Tushman argue |
| come up to a man's limitations, it is all over with him. | | | | that a manager's organization design should seek |
| Emerson | | | | balance between organizational effectiveness through |
| Why should a leader analyze if outsourcing core | | | | the work processes and corporate culture. This |
| functions of his organization is a good thing? As we | | | | corporate culture relates to impacts on employees, |
| have discussed previously, organizations form | | | | group relationships, and political dynamics. |
| socio-technical systems. In simple language, one | | | | Gone are the days of traditional organizations, |
| action can influence other parts of the system. | | | | designed with pyramids of boxes. Today's |
| Hoffman, a leadership guru, argues that values | | | | organizations follow the Doughnut Principle. The |
| determine the course that an organization takes. | | | | structure centers on a small organization with a small |
| Handy, an organizational strategist, describes | | | | core of key personnel and a portfolio of support |
| outsourcing and organizational structure as another | | | | staff around that core. Utilizing the Doughnut Principle, |
| kind of paradox. | | | | the new organizational structure consists of a core |
| Handy notes that businesses outsource their | | | | team and its strategic partners; these strategic |
| unproductive functions, thereby getting rid of surplus | | | | partners include traditional suppliers, independent |
| people. Clearly, organizational structure is impacted by | | | | professionals, and part-time workers. |
| corporate culture. Outsourcing creates an atmosphere | | | | Routinely, businesses put their material suppliers in |
| where employees are merely physical beings. | | | | their corporate doughnut. However, increasingly |
| Employees distrust management. Managers are leery | | | | organizations are outsourcing critical business |
| of staff. According to a USA Today poll, nearly half | | | | functions. Handy notes that short-term gains may |
| of those interviewed said that corporations can be | | | | result in long-term damage if a demoralized service |
| trusted only a little, or not at all, when it involves | | | | fails to meet the organizational demands. Many |
| looking out for the best interest of employees. | | | | advocate the doughnut structure because of its |
| Clearly, companies shouldn't be limited in their | | | | flexibility. However, companies that become too |
| management options. Galbraith, author of Designing | | | | dependent on one supplier are placing their |
| Organizations, argues that organizations compete | | | | organizations at risk. |
| with others in an era of temporary advantages. | | | | Furthermore, in order to maintain optimum balance, |
| Cutting out parts of an organization's function to | | | | Nadler and Tushman maintain that managers should |
| meet short terms gains is a business mistake. On the | | | | adapt in the following ways: (a) develop a |
| contrary, Galbraith maintains that low-and medium-skill | | | | rudimentary understanding organization design for an |
| levels should be being eliminated by either automation | | | | inherent competitive advantage and (b) recognize |
| or outsourcing. The primary reason for claim is that | | | | effective organizational design as ongoing. Therefore, |
| the costs of coordinating fragmented, interdependent | | | | 21st century businesses must carefully implement any |
| tasks are too high in a rapidly changing environment. | | | | strategies impacting their organizations in this hostile, |
| Organizations are increasingly moving to a market | | | | global environment. |