GLOBAL ORGANIZATION DESIGN AND HRM

Luca Giustiniano

Instructional goals

In modern times decisions about organization design and human resources management are interwoven. Informed by both research-driven and problem-solving oriented logics, the course will deal with some of the most modern trends and solutions in management, exploring fields and managerial experiments for which the unknown is larger than the known, such as: crowd-open and crowd-based organizations, networks, platforms and complex global organizational settings. This course explores the drivers of global business organization design and the role of human resource management in ensuring that human resources can “make it happen” sustainably. We will consider: a) the modern issues of organization design; b) the implication of “open organizing”; c) the context of global human resource management. The course will combine the transfer of academic knowledge with the acquisition of inquiry-based skills. In fact, students will engage in a Project Work (PW), through which they will be asked to develop a research project on a specific subject of Global Organization Design and HRM in synergy with the Lab Research Methods for Social Sciences (RMSS). During the semester, students will be guided in turning their research project into a research paper. Through this activity students will also learn by experimenting research rigor. Students that do not have the Research Methods for Social Sciences Lab in their study plan (e.g. exchange students) will be assigned an ad hoc assignment for an equivalent workload (Top-5 take aways, see below).

Prerequisites

Basic knowledge (BA-level contents) of organization design The contents reported in one of the following books (or equivalent) will be taken for granted: Cunha, M.P., Clegg, S., Gaim, M., Giustiniano, L. (2022), Elgar Introduction to Designing Organizations, forthcoming, open access, ISBN: 978 1 80392 218 8: Chapter 1: Introduction to the Elgar Introduction to Designing Organizations Chapter 2: The fundamentals of organizational design Chapter 3: Organization design and change Chapter 4: The traditional organization R. Daft, Organization Theory and Design 11th Edition, Parts/Chapters*: PART1 Introduction to Organization Theory and Design 1. Introduction to Organizations PART 2 Organizational Strategy and Structure 2. Structural Design for Organizations 3. Strategy and Effectiveness PART 3 External Factors and Design 4. Relationships between Organizations 5. Global Organization Design 6. The Impact of Environment PART 4 Managing Organizational Processes 7. Organizational Conflict and Politics 8. Organizational Decision-Making 9. Corporate Culture and Values *: numbers might change according to the released edition – look for equivalent contents. PermaLink, LUISS Library: https://luiss.alma.exlibrisgroup.com/discovery/openurl?institution=39LLUISSGC_INST&rfr_id=info:sid%2Fsummon&rft_dat=ie%3D2116995800004196,language%3DEN&svc_dat=CTO&u.ignore_date_coverage=true&vid=39LLUISSGC_INST:Services&Force_direct=false

Intended learning outcomes

Knowledge and understanding: The course will offer key conceptual tools to design organizations and HRM systems in global setting. This course provides advanced knowledge and analytical resources that will enable students to understand the processes, content and consequences of organizational decisions to be implemented on a global scale, both in public and private, profit-oriented and non-profit settings. Applying knowledge and understanding: The students will be able to: • apply organization models on a global scale, such as Multinational Companies, large Non-Governmental Organizations, crowd-based organizations • compare pros and cons of each organizational choice • analyze how and why organizations make decisions to face an evolving environment • apply foundations of business research Making judgements: We expect students to be able to dissect complex organizational issues, analyze them and propose solutions. They are expected to be able to discuss and evaluate key organizational choices. Throughout the whole course, students will be invited to critically analyze when, how and why certain organizational choices are pursued. Communications Skills: This course will give the students the possibility to acquire and understand major terms and concepts in order to communicate their ideas, proposals, analysis and critical reasoning in the field of organization design and human resource management. Via the Project Work students will be asked to acquire also academic writing skills. Learning skills: This course will empower learners giving them the tools to determine why certain organizational choices are made and how different alternatives are assessed. Via the Project Work students will learn the “language and the rigor” or inquiry-based activities.

Course Contents

This course introduces students to advanced contents of global organization design and to the field of global human resource management. The goal is to discuss the most important issues that decision-makers operating in today’s globalized business setting must consider when designing organizations and managing human resource management (HRM) in different national settings. The course materials consist of readings, movies and case studies. The texts and ideas are from various disciplines, including management & economics, comparative sociology, and business ethics.

Reference Books

As reported in the syllabus, week by week. Attending students must refer to the compulsory readings; non-attending students or students declining either the grade of the individual assignment or the project work evaluation (see later) must consider also supplementary readings as mandatory. Before each lesson the students are expected to read the mandatory reading(s), prepare cases and movies as indicated. Unless covered by copyright restrictions, mandatory readings are available via the Luiss Learn on-line platform (i.e., some HBR cases must be acquired by students).

Teaching Methods

Students’ participation during classes is strongly encouraged. In-class activities are synergically complementary to conceptual classes. - Lectures 50% - in class activities, case discussion 35% - Project works 15% Teaching activities integrate online with face-to-face lectures, explanation of concepts with the analysis of business cases performed by both the instructors and the students. Students will be required to join in-presence training sessions and analyze or discuss, individually or within small groups, case studies focused on the resolution of organizational problems and the definition of the different organizational configurations that can be adopted in different strategic and environmental contexts. These sessions are useful to evaluate students’ ability to put into practice the methods of organizational design and analysis acquired during the lectures.

Assessment Method

The final score comes from: 60% Average between the top 3 scores obtained in 4 tests (continuous assessment: quiz; exam simulation; chatgpt individual assignment; bonus assignment) 30% Final exam 10% RMSS Project Details: 60% continuous assessment: The final score will be the average of the top three scores obtained in 4 different tests: Quizzes: The quizzes will consist of a series of questions divided into two blocks. ChatGPT individual assignment: The individual assignment will be preceded by some lessons on how to use ChatGPT (prompting engineering, common mistakes, limitations of AI, etc.). Exam simulation: This is a simulation of the final exam, following the same format. Bonus Assignment (idea, possible alternative to midterm exam simulation): Give the students an organizational problem/task (e.g., choice of organizational form, decisions on expatriation, communication problems.) and ask to develop a ChatGPT prompt that is capable of supporting organizational actors in solving that particular problem. 30% Final exam: The final exam is composed of an essay, based on ad hoc created case and two open questions to be answered, at the end of the course covering the whole course program (only mandatory readings and cases). Students not attending the course will have to answer 4 exam questions (on both mandatory and supplementary readings). The exam will be carried out in a "paper and pencil" mode. In cases of doubt (excessively homogeneous answers among them, ChatGPT detection tool with wide score), we reserve the right to ask students to take an oral exam. The oral exam will not aim to raise the grade but to confirm the existing one (or lower it in case of negative performance). 10% RMSS or 5 Take-aways (for Erasmus students): The 5 take-aways will follow the same format as the existing assignment. Here, it is important to specify how they should reflect and mention concepts discussed together rather than providing very general comments. The ability to contextualize should carry significant weight as it is the main differentiator from the use of AI.

Thesis assignment criteria

Not having refused a grade above 23/30; no further specific requirements: the sooner the better for choosing subject and methodology. Master thesis assignment is based on a project presented by the student. The project (2/3 pages) must include: • Table of contents • Abstract • Main references

Week 1

THE CENTRALITY OF “FIT” IN GLOBAL ORGANIZATION DESIGN Plenary sessions (on campus + on line) • Introduction to the course • Recall of main contents of organization design • The centrality of “fit” in organization design Session 2 online Guidance on Project Works Breakout session - on campus Cases on “fit” reported in the mandatory reading READINGS (COMPULSORY): Donaldson L., Joffe. G. (2014). Fit - The Key to Organizational Design. Journal of Organization Design, 3(3), 38-45. CASE STUDY (COMPULSORY): EMBEDDED IN THE PAPER READINGS (SUPPLEMENTARY): • DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American sociological review, 147-160. • Greenwood, R., & Miller, D. (2010). Tackling design anew: Getting back to the heart of organizational theory. Academy of Management Perspectives, 24(4), 78-88.

Week 2

HOW TO MAKE COMPLEX ORGANIZATIONS WORK Plenary sessions (on campus + on line) • Complex organization traditional design: matrices • How to make complex organizations work: the main managerial levers Breakout session - on campus Case: Google READINGS (COMPULSORY): Burton R. M., Obel B. & Håkonsson D. D. (2015). How to get the Matrix Organization to Work. Journal of Organization Design, 4(3), 37-45. CASE STUDY (COMPULSORY): Keeping Google “Googley” - experimenting the matrix READINGS (SUPPLEMENTARY): Galbraith, Jay R., The Evolution of Enterprise Organization Designs (August 1, 2012). Journal of Organization Design, Vol. 1, No. 2, pp. 1-13, 2012.

Week 3

INFORMAL AND FORMAL NETWORKS, AND OPEN-BOUNDARY ORGANIZATIONS Plenary sessions (on campus + on line) • Coordination mechanisms: market, authority and networks • Organizational social networks and community of practices • Outsourcing, virtual organizations and open-boundary organizing • Pros and cons of open-boundary organizations Breakout session - on campus Case: Networks and organizational change READINGS (COMPULSORY): Hanson, J. R., & Krackhardt, D. (1993). Informal networks: the company behind the chart. Harvard Business Review, 71(4), 104-111. CASE STUDY (COMPULSORY): Cross R.L., Parise S., Weiss L.M. (2007). The role of networks in organizational change. McKinsey Quarterly. READINGS (SUPPLEMENTARY): Cross R.L., Martin R.D., Weiss L.M. (2006). Mapping the value of employee collaboration. McKinsey Quarterly.

Week 4

THEMATIC GUIDANCE ON PROJECT WORKS EXAM SIMULATION

Week 5

TRANSFERRING GLOBAL HRM PRACTICES AND/OR ADAPTING LOCALLY Plenary sessions (on campus + on line) •Global best practices vs. Local adaption • Local Resistance and Compromise • Global and Local Employment Relations • Managing Human Resources in a globalized context Breakout session - on campus: Case: Employee relations in France (Video 1, in the Watchings) READINGS (COMPULSORY): Brandl, Julia; Schneider, Anna (2017): Headquarters-Subsidiary Relationships from a Convention Theory Perspective: Plural Orders of Worth, Arrangements and Form-Giving Activities. In Dörrenbächer, Christoph; Geppert, Mike (ed.) Multinational Corporations and Organization Theory: Post Millennium Perspectives (Research in the Sociology of Organizations, Volume 49) Emerald Publishing Limited, pp.295 - 324. WATCHINGS (1 COMPULSORY, 1 SUPPLEMENTARY): Movie: Gung Ho (Dir.: Ron Howard, 1986)

Week 6

HR PRACTICES IN THE GLOBAL WORLD I – STAFFING AND EXPATRIATION Plenary sessions (on campus + on line) • International assignments • Local recruiting issues Breakout session - on campus Case: embedded in the reading READINGS (COMPULSORY) Rees, Chris; Smith, Chris (2017), Applying Critical Realism to the MNC: Exploring New Realities in Staffing and Expatriation, in Christoph Dörrenbächer, Mike Geppert (ed.) Multinational Corporations and Organization Theory: Post Millennium Perspectives (Research in the Sociology of Organizations, Volume 49) Emerald Publishing Limited, pp.265 - 293 READINGS (SUPPLEMENTARY) Marion Festing & Michael Tekieli (2018): Global alignment or localization? An empirical examination of global reward management in MNEs from a subsidiary perspective, The International Journal of Human Resource Management, DOI: 10.1080/09585192.2018.1504107

Week 7

HR PRACTICES IN THE GLOBAL WORLD II - RETENTION & COMPENSATION Plenary sessions (on campus) • Compensation and rewards • Performance Management Online session Case: embedded in the reading Breakout session - on campus Guidance on project works READING (COMPULSORY) Marion Festing & Michael Tekieli (2018): Global alignment or localization? An empirical examination of global reward management in MNEs from a subsidiary perspective, The International Journal of Human Resource Management, DOI: 10.1080/09585192.2018.1504107

Week 8

CONTEMPORARY ISSUES OF GLOBAL HRM IN A DIGITALIZED WORLD Plenary sessions (on campus + online) • Global Work-Life Management • Social Responsibility and Sustainability Breakout session - on campus A bridge to open innovation READINGS (COMPULSORY): Curchod, C., Patriotta, G., Cohen, L., & Neysen, N. (2019). Working for an Algorithm: Power Asymmetries and Agency in Online Work Settings. Administrative Science Quarterly. https://doi.org/10.1177/0001839219867024

Week 9

SELF-ORGANIZING e SPAGHETTI ORGANIZING Plenary sessions (on campus + on line) • Organizing and self-organizing • “Spaghetti Organization” • Agile organizing Breakout session - on campus Case: Spotify READINGS (COMPULSORY): Foss, N. J. (2003). Selective intervention and internal hybrids: Interpreting and learning from the rise and decline of the Oticon spaghetti organization. Organization Science, 14(3), 331-349. CASE STUDY: OTICON: https://corporate-rebels.com/lars-kolind/ -- SPOTIFY READINGS (SUPPLEMENTARY): • Cunha, M.P., Clegg, S., Gaim, M., Giustiniano, L. (2022), Elgar Introduction to Designing Organizations, forthcoming, open access, ISBN: 978 1 80392 218 8: Chapter 6 – The agile organization • DeFillippi, R., & Lehrer, M. (2011). Temporary modes of project-based organization within evolving organizational forms: insights from Oticon's experiment with the spaghetti organization. In Project-Based Organizing and Strategic Management (pp. 61-82). Emerald Group Publishing Limited.

Week 10

CROWD-OPEN AND CROWD-BASED ORGANIZING Plenary sessions (on campus + on line) • Organizational trajectories of international evolution • Crowd-open organizing • Crowd-based organizing • Pros and cons of crowd-based organizing Breakout session - on campus Case: HyperloopTT READINGS (COMPULSORY): Giustiniano, L., Griffith, L.T., Majchrzak, A. (2019). Crowd-Open and Crowd-Based Collaborations: Facilitating the Emergence of Organization Design. In J. Sydow & H. Berends (Eds): Managing Interorganizational Collaborations – Process Views (Research in the Sociology of Organizations - RSO - Series, ed. by Michael Lounsbury), Forthcoming. CASE (COMPULSORY): HTT – Applegate L. M., Griffith T. L., Majchrzak A. (2017). Hyperloop Transportation Technologies: Building Breakthrough Innovations in Crowd-Powered Ecosystems. Harvard Business School, N9-817-134 READINGS (SUPPLEMENTARY): • Cunha, M.P., Clegg, S., Gaim, M., Giustiniano, L. (2022), Elgar Introduction to Designing Organizations, forthcoming, open access, ISBN: 978 1 80392 218 8: Chapter 5 (Less hierarchical organization) and Chapter 7 (Final consideration)

Week 11

THE FUTURE OF GLOBAL ORGANIZATION DESIGN (1) Plenary sessions (on campus + on line) • Teams of teams • Bossless organizing Breakout session - on campus Case: Valve READINGS (COMPULSORY): Bernstein E., Bunch J., Canner N. & Lee M. (2016). Holacracy HYPE. Harvard Business Review. July-August. CASE STUDY (COMPULSORY): • Valve: https://www.jorgdesign.net/article/view/20152/18612 READINGS (SUPPLEMENTARY): • Sanner, B., & Bunderson, J. S. (2018). The Truth About Hierarchy. MIT Sloan Management Review, 59(2), 49-52. https://sloanreview.mit.edu/article/the-truth-about-hierarchy/

Week 12

THE FUTURE OF GLOBAL ORGANIZATION DESIGN (2) Plenary sessions (on campus + on line) • Hierarchyless organizations and Holacracies • Post-Covid organizing READINGS (COMPULSORY): Giustiniano, L., Cunha, M. P., Simpson, A. V., Rego, A., & Clegg, S. (2020). Resilient leadership as paradox work: notes from COVID-19. Management and Organization Review, 16(5), 971-975. READINGS (SUPPLEMENTARY): Bach O. (2017). Five reasons why new forms of organizing and digitalization go hand in hand https://www.managementkits.com/blog/2017/7/27/five-reasons-why-new-forms-of-organizing-and-digitalization-go-hand-in-hand