ENTER THE WORLD OF BUSINESS

.E A R N I N C O B J E C T IV E S
\fter reading this chapter, yo sho!d "e a"!e to#
Ana!y$e an organi$ation%s strctre and &or'(f!o& process, identifying the otpt, acti)ities, anJ
inpts in the prodction of a prodct or ser)ice. papr /45
*nderstand the i+portance of ,o" ana!ysis in strategic and h+an resorce +anage+ent. papa
-N. Ohoose the i ight ,o" ana!ysis techni/e for a )ariety of h+an resorce acti)ities. pagr -0-
Identify the tas's perfor+ed and thc s'i!!s re/ired in a gi)en ,o". g.1gr2
*nderstand the different approaches to ,o" design. pape - fi.3
Co+prehend!he trade offs a+ong the )arios approaches to designing ,o"s. papc - 45
In the first /arter of 5664, Toyota srpassed
7enera! N8otors as the top ato prodcer in the
&or!d. Th is &as a &et9(anticipated e)ent, and the
ro!e that organi$ationa! design ana ,o" design
p!ayed in Toyota:s sccess has "een p"!ici$ed in
+any "siness case stdies. Toyota de)e!oped
an o"session for detai!s, and after +any years of
stdy na continos inn +o)e+ent, the co+pany
has de)e!oped thosands of pages of doc+en(
tation that !ays ot precise!y &ha Ineeds to "e
done for e)ery step of each ,o" to enst e the
highest !e)e! of re!ia"i!ity in its trc's and cars. As
head of Eropean operations, Shinich i Sasa!;i,
notes, < E)ery decision dt e)ery stage +st "e
done proper!y= and detai!ed organi$ationa!
charts that p!ot &here responsi"i! ity for )arios
decisions rests are constant!y scrtini$ec! and
pdated.
A star' contrast to this approach to ,o" design
and organi$ationa! design can "e fond in
>nich, 7er+any, ho+e of BfV!?. Indeed, +any
ha)e !a"e!ed B>? the <anti(Toyota@ "ecase
a hereas Toyota does at9 it can to si+p!ify and
standardi$e &or' procedres and decis.on +a'A
ing, B>? e+"races co+B!eCity. This difference
can "e traced to B>? "siness strategy, &here
CEO De!+t E!an'e notes that <I cannot reca!!
ha)ing seen a c!ear and con)incing corre!ation
"et&een si$e and sccess. Or o&n goa! is c!ear#
to "e the !eader in e)ery pre+i+ seg+ent of
the intFrnationaI ato+oti)e indstry.= This
strategy to "e the top prodcer in a niChe cate(
gory, and not the !argest prodcer o)era!!, !eads
B>? to ta'e a different approach to ho& it
strctres &or!; re!ati)e to Toyota.
Girst, in ter+s of organi$ationa! design, B>\-.H
is organi$ed not in ta!! pyra+idAshaped strctres
&ith +any !e)e!s of +anage+ent. Instead, its
strctre is )ery f!at and strctred arond ce!!!ar
net&or's that are constant!y in f!C. These net(
are typica!!y co+posed of pro,ect(oriented,
tea+s, and the e+phasis is on
!atera! co++nication across )arios specia!i$a(
tions, rather than )ertica! co++nications p
and do&n the hierarchy. This is spported By the
design of factories the+se!)es, &hich are often
fi!!ed &ith &ide open spaces, f!ooded &ith natra!
!ight, and &here the phys#%ca! !ayot pro+otes
+o)e+ent patterns a+ong !ine &or'ers,
engineers, and /a!ity eCperts that res!t in
spontaneos co++nication and co!!a"oration.
?ith a net&or' yo get the po&erf! a"i!ity to
!e)erage 'no&!edge /ic'!y to I1ear on so!)ing
pro"!e+s and this +ay "e the on!y &ay tc
effecti)e!y +anage B!V!?Js 'ind of co+p!eCity.
Indeed, the choice of the !arger organi$ationa!
strctre tric'!es do&n and strong!y inf!ences
that natre of indi)ida! ,;1"s. *n!i!;e Toyota,
&hich re!ies on high!y detai9ea and for+a!i$ed
desc.2iptions of processes that are &ritten do&n
an;J are to "e c!ose!y aohered to, B!V!? tea+s are
gi)en &ider ranging responsi"i!ities for +a'ing
their o&n decisions a"ot &or'. procedres,
&hich often )ary across different tea+s. Rather
than finding the <one "est &ay@ and then incre(
+enta!!y i+pro)ing this one +ethod continos!y,
&or' tea+s at B>? are +ore entrepreneria!
and often co+pete &ith each other to co+e
p &ith the "est +ethods for different tas's.
>anagers in this conteCt are not pres+ed to
ha)e a!! the ans&ersK instead, their centra! ro!e is
to as' the right /estions, gi)e the tea+s the
resorces to find the right ans&ers the+se!)es,
and then ,dge the+ on the re!ati)e sccess.
In the end, the choices that B>? has +ade
&ith respect to organi$ationa! design and ,o"
design ha)e a!!o&ed it to "eco+e one of the
+ost f!eCi"!e prodcers of high(perfor+ance
and high!y csto+i$ed ato+o"i!es ser)ing the
top end of the +ar!Let. The f!id, "otto+(p,
approach to &or' practices +oti)ates its
&or!;force to co+e p &ith fresh ne& ideas that