Organization design of the focal firm can be a challenge to outsourcing. The case study illustrates how an activity-based design of the PSO can daft organization theory and design pdf outsourcing parts of PSM.
This relationship is discussed in light of organizational modularity. One potential way to specifically addressing efficiency targets is to outsource parts of the purchasing process. While outsourcing remains one of the most prevalent business practices in various areas, many businesses fail to realize the benefits anticipated from their outsourcing initiatives. Research reports that one major reason for these outsourcing challenges lies in the design of the focal organization. In this paper, we take an organization design view to outsourcing in the PSM context.
Based on a multi-year case study from 2010 to 2013 at a global chemical and pharmaceutical company, we elaborate how the organizational design of the PSM function relates to outsourcing opportunities in order to increase efficiency and effectiveness by allocating internal resources to more value-adding activities. The case illustrates how an activity-based organizational design of PSM can support outsourcing of some parts of the purchasing process. Check if you have access through your login credentials or your institution. Screen reader users, click the load entire article button to bypass dynamically loaded article content. Please note that Internet Explorer version 8. Click the View full text link to bypass dynamically loaded article content. This article sets forth a theory of the effects that computer-assisted communication and decision-aiding technologies have on organizational design, intelligence, and decision making.
Several components of the theory are controversial and in need of critical empirical investigation. Reprinted with permission of Academy of Management P. Reproduced by permission of the publisher via Copyright Clearance Center, Inc. This article has not been cited. These consist of a group of peers who decide as a group, perhaps by voting. Sometimes a selection committee functions like a jury. In the Middle Ages, juries in continental Europe were used to determine the law according to consensus among local notables.
Committees are often the most reliable way to make decisions. Inefficient components of the organization starve, while effective ones get more work. This organizational type assigns each worker two bosses in two different hierarchies. One hierarchy is “functional” and assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field. The other direction is “executive” and tries to get projects completed using the experts.
Projects might be organized by products, regions, customer types, or some other schemes. As an example, a company might have an individual with overall responsibility for products X and Y, and another individual with overall responsibility for engineering, quality control, etc. Therefore, subordinates responsible for quality control of project X will have two reporting lines. This arrangement is often associated with basis that there are enough imagine a real pyramid, if there are not enough stone blocks to hold up the higher ones, gravity would irrevocably bring down the monumental structure. So one can imagine that if the leader does not have the support of his subordinates, the entire structure will collapse. From a functional perspective, the focus is on how entities like businesses or state authorities are used. From an institutional perspective, an organization is viewed as a purposeful structure within a social context.
Sociology analyzes organizations in the first line from an institutional perspective. In this sense, organization is an enduring arrangement of elements. By coordinated and planned cooperation of the elements, the organization is able to solve tasks that lie beyond the abilities of the single elements. However, he must possess adequate personal attributes to match his authority, because authority is only potentially available to him. In the absence of sufficient personal competence, a manager may be confronted by an emergent leader who can challenge his role in the organization and reduce it to that of a figurehead.