Transcript Test

Pre-class preparation
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This exercise takes the entire period
Keep time – bring a stop watch or timer
Make copies of directions for each student (update to match
these slides)
Make copies of QC rules (update to match these slides)
Prep the QC team:
 Ensure that each sentence makes sense
 Ensure that each word is used only once in each run
 Ensure that letters are not overused in new words
 Ensure that the same rules are applied to both teams
Cut up phrases and place in envelope
BA 312
Organization Design &
Environments
Professor Sonali Shah
Today’s Plan
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Words-in-Sentences Exercise
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Wrap-Up
Objectives
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To understand the costs and benefits of
functional and divisional structures
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To see the effect of organizational structure
on work processes
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To get to know your fellow students
Words-in-Sentences Co.
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Today you will form a small organization with
several other people
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Your organization will compete with another
organization facing the same design task
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Your task (“product”) will be to take a phrase
and use the letters in that phrase to construct
new words – and then to assemble those
words into coherent sentences
Raw Materials
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You will be given a “raw material phrase”
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The letters found in the phrase serve as the
raw materials available to produce new
words in sentences.
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For example, if the raw material is “I work in
an organization” you could produce the
words and sentences: “Nat ran to a zoo.”
Production Standards
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The same letter may appear only as often in a manufactured word
as it appears in the raw material word or phrase
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A manufactured word may be used only once in a sentence and in
only one sentence during a production run
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For example, “I work in an organization” has three o’s and no s’s.
Thus “zoo” is legitimate but “orangutan” is not (it contains the letter
u).
Raw material letters can be used again in different manufactured
words.
A new word may not be made by adding “s” to form the plural of an
already-used manufactured word.
All words must be in English.
Names and places are acceptable.
Slang is not acceptable.
For example. If the word “a” is used once in any sentence, it is out of
stock and cannot be used again during that production run.
Sentences must have a minimum of three words and a maximum of
six words
Nonsense words or sentences are unacceptable.
Measuring Performance
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The output of your WIS company is measured by the total
number of acceptable words that are packaged in
sentences.
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The sentences must be:
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Legible
Listed on no more than two sheets of paper
Handed to the Quality Control Review Board within 30 seconds of
the completion of each production run.
If any word in a sentence does not meet the standards set
forth above, all the words in the sentence will be rejected.
The Quality Control Review Board is the final arbiter of
acceptability. In the event of a tie vote on the Review Board,
a coin toss will determine the outcome.
This is an Exercise in
Organization Design 
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Design your organization to be as efficient as possible during
each 10-minute production run.
Your ability to compete depends on two factors
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The success of your company depends on
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(1) volume
(2) quality
(1) your objectives
(2) planning
(3) coordination
(4) quality control
There will be two production runs. After the first production
run, you will have an opportunity to reorganize your
company, if you want to.
Agenda
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Step 1: Design your organization (15 min)
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Step 2: Production Run #1 (10 min)
Step 3: Quality Review (10 min)
Step 4: Production Run #2 (10 min)
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Quality Review Board preps slide: good phrases,
problems/mistakes plaguing each group
Step 5: Quality Review + Slide Prep (10 min)
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Quality Review Board must decide how they will operate
Describe your structure (please include names of all group
members)
How did your structure change?
What were the costs and benefits of your structure?
Step 6: Present slides (3 min/group) & WrapUp (10 min)
Organization
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Need volunteers for the Quality Review
Board
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Please divide into two groups
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8:30 am : 2 students
10:00am : 6 students
8:30 am session: 5-6 students each
10:00 am session: 16 students each
One group will adopt a functional structure.
The other group will adopt a divisional
structure.
Today’s Plan
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Words-in-Sentences Exercise
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Wrap-Up
Wrap-Up: WIS
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What were the strengths of the functional
structure? Of the divisional structure?
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What were the weaknesses of the
functional structure? Of the divisional
structure?
WIS: Divisional Structure
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Doomed to be less efficient?
Two identical divisions:
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Waste resources
Creates duplication problem
• Groups with a divisional structure generally
duplicate more words and sentences than groups
with the functional structure  caught in internal or
external QC
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A divisional structure does not make sense for
this task – and for many organizations
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What if you were given two phrases during each
production run?
Think about the global orange juice producer
WIS: Functional Structure
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Not all employees are occupied simultaneously
In this case, workers can be moved around to
best utilize all available (human) resources (not
always true – depends on skills necessary for a
particular job)
Many functional groups realize that creating
obscure words and odd sentences makes it
easier to avoid replicating words and sentences
Structure affects how the organization operates
and, sometimes, even how it views and frames
its goals
Thursday
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Methods for Coping with Environmental
Uncertainty
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How the external environment affects the
design of the firm