GLOBAL ORGANIZATION DESIGN AND HRM
Instructional goals
This course will help advanced management students to think about designing organizations to be fit for contemporary purposes. In traditional terms, design was conceived as a rational, top-down decision relating to the structuring of responsibilities, accountabilities and organization processes. In contemporary terms: a) design is often a process with paradoxical attributes; b) 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.
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
• recognize paradoxical tensions
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.
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.
Course Contents
This course introduces students to advanced contents of global organization design and to the field of global human resource management (HRM). The course will also show that organization design and HRM are not always rational, top-down decision but they rather present paradoxical attributes. We focus on major trends in and types of design. 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
TEXTBOOK: Cunha, M.P., Clegg, S., Gaim, M., Giustiniano, L. (2022), Elgar Introduction to Designing Organizations, forthcoming, open access, ISBN: 978 1 80392 218 8 (freely available, open access: https://www.elgaronline.com/monobook-oa/book/9781803922195/9781803922195.xml). Unless covered by copyright restrictions, mandatory and supplementary readings are available via the MyLuiss on-line platform (i.e., some HBR cases must be acquired by students). Considering the definitions reported in the University's Didactic Regulations (Regolamento Didattico di Ateneo) and the Graduate School student handbook, ‘compliant’ students have to refer to the textbook and the ‘mandatory’ materials; the ‘supplementary’ readings become mandatory for ‘non-compliant’ students (hereinafter referred as ‘integrated program’).
Teaching Methods
Students’ active participation during classes is strongly encouraged. In-class activities are synergically complementary to conceptual classes.
- Lectures 60%
- in class activities, case discussion 40%
Teaching activities integrate lectures, explanation of concepts with the analysis of business cases performed by both the instructors and the students.
Students will be required to join 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
• ATTENDING, COMPLIANT STUDENTS: 1/3: continuous assessment (written test) 2/3: final exam (written exam)
• NON-COMPLIANT STUDENTS: ONLY FINAL EXAM (WRITTEN EXAM, on the ‘integrated program’)
Both the continuous-assessment test and the final exam are structured as an essay, based on an ad hoc case and two/four open questions to be answered (10+40/80 minutes: text reading + execution), covering the course topics and materials covered up to that point (classes, textbook, mandatory readings and cases). At the final exam non-compliant students will have to answer six exam questions (re: “integrated program”, including both mandatory and supplementary readings; 10+120 minutes: text reading + execution). The test and the exam will be carried out in a “paper and pen” mode, with no access to notes or electronic devices. In case of doubt (e.g., excessively homogeneous answers among them, Gen-AI 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). For final exam the University’s and the Graduate School’s rules will apply: “the student will be allowed to withdraw for the duration of the test, but in case the student turns in the assignment, the grade received may not be refused by the student in any way.” In case of absence or withdrawal from the continuous assessment test, students’ score will be considered as 0.
Thesis assignment criteria
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
ORGANIZATION AND ORGANIZING
• Introduction to the course
• Main contents of organization design
• The centrality of “fit” in organization design
• Paradoxes of management and organization
READINGS (MANDATORY):
• Textbook, Chapter 1, Chapter 4 (pp. 66-75)
• Introductory note – In Cunha et al. (2021), Paradoxes of management and organization: https://bura.brunel.ac.uk/bitstream/2438/25496/1/Cover%2BIntro.pdf
• Case study: Velasca – Daood, A., Giustiniano, L. (2021) Case#14: Together Alone? Mastering paradoxes within inter-organizational business model innovation settings, in Cunha et al. 2021: https://iris.luiss.it/retrieve/e163de42-e64a-19c7-e053-6605fe0a8397/14.%20Mini-case%20study_Daood_Giustiniano.pdf
READINGS (SUPPLEMENTARY): 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
THE FUNDAMENTALS OF GLOBAL ORGANIZATION DESIGN
• Design as a source of competitive advantage
• Design as a reflection of socioeconomic conditions
• Drivers of organizational change
• Technology and organizing
READINGS (MANDATORY):
• Textbook, Chapter 2
• Case study: Philip Morris Manufacturing & Technology Bologna – Luiss Business School
READINGS (SUPPLEMENTARY):
• Kretschmer, T., & Khashabi, P. (2020). Digital transformation and organization design: An integrated approach. California Management Review, 62(4), 86-104.
• Shrestha, Y. R., Ben-Menahem, S. M., & Von Krogh, G. (2019). Organizational decision-making structures in the age of artificial intelligence. California management review, 61(4), 66-83.
Week 3
ORGANIZATION DESIGN AND CHANGE (I)
• Organizational structure and design
• Functions and organization design
• Hardware and software of organization design
READINGS (MANDATORY):
• Textbook, Chapter 3, Chapter 4 (pp. 66-75).
• Donaldson L., Joffe. G. (2014). Fit - The Key to Organizational Design. Journal of Organization Design, 3(3), 38-45.
(case studies: embedded in the readings)
READINGS (SUPPLEMENTARY)
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American
Week 4
ORGANIZATION DESIGN AND CHANGE (II)
• How to make complex organizations work
• The main managerial levers
READINGS (MANDATORY):
• Textbook, Chapter 4
• 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: Keeping Google “Googley” - experimenting the matrix
READING (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 5
INFORMAL AND FORMAL NETWORKS
READINGS (MANDATORY): Cross R.L., Parise S., Weiss L.M. (2007). The role of networks in organizational change. McKinsey Quarterly. (case studies: embedded in the readings)
READINGS (SUPPLEMENTARY): Hanson, J. R., Krackhardt, D. (1993). Informal networks: the company behind the chart. Harvard Business Review, 71(4), 104-111.
Week 6
• CONTINUOUS ASSESSMENT
• TRANSFERRING GLOBAL HRM PRACTICES AND/OR ADAPTING LOCALLY
• Global best practices vs. Local adaption
• Local Resistance and Compromise
HR PRACTICES IN THE GLOBAL WORLD I – STAFFING AND EXPATRIATION
• International assignments
• Local recruiting issues
VIDEOS (MANDATORY): scenes from the movie “American Factory”
READINGS (SUPPLEMENTARY):
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.
Week 7
• HR PRACTICES IN THE GLOBAL WORLD II - RETENTION & COMPENSATION
• Compensation and rewards
• Performance Management
READING (MANDATORY)
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
(case studies: embedded in the readings)
Week 8
GLOBAL ORGANIZATION DESIGN AND THE FALL OF THE TRADITIONAL PILLARS (PART I: HIERARCHY)
• Organizing and self-organizing
• “Spaghetti Organization”
READINGS (MANDATORY):
• Textbook, Chapter 5
• Case study: Oticon - https://corporate-rebels.com/lars-kolind/
READINGS (SUPPLEMENTARY):
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.
Week 9
GLOBAL ORGANIZATION DESIGN THE FALL OF THE TRADITIONAL PILLARS (PART II: TASK DESIGN AND ALLOCATION)
• Agile organizing
• Bossless organizing
• Holacracies
READINGS (MANDATORY):
• Textbook, Chapter 6
• Case Study: Valve - Puranam, P., & Håkonsson, D. D. (2015). Valve's way. Journal of Organization Design, 4(2), 2-4: https://www.jorgdesign.net/article/view/20152/18612
• Case Study: Spotify (video)
READINGS (SUPPLEMENTARY):
Bernstein E., Bunch J., Canner N. & Lee M. (2016). Holacracy HYPE. Harvard Business Review. July-August.
Week 10
CROWD-OPEN AND CROWD-BASED ORGANIZING
• Crowd-open organizing
• Crowd-based organizing
• Pros and cons of crowd-based organizing
READINGS (MANDATORY):
• 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 study: HyperloopTT - Griffith, T. L., Majchrzak, A., & Giustiniano, L. (2023). Hyperloop transportation technologies: practices for open organizing across VUCA contexts. Journal of Organization Design, 12(3), 99-120: https://link.springer.com/article/10.1007/s41469-023-00141-1
READINGS (SUPPLEMENTARY):
Lakhani, K. R., Garvin, D. A., & Lonstein, E. (2010). Topcoder (a): Developing software through crowdsourcing. Harvard Business School General Management Unit Case, (610-032).
Week 11
THE FUTURE OF GLOBAL ORGANIZATION DESIGN (I)
• Post-Covid organizing
• Paradox-proof organizing
READINGS (MANDATORY):
• Textbook, Chapter 7
• 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.
• Case study: The St. Vincent Art Museum – Giustiniano L., Lombardi, S. (2021), The St. Vincent Art Museum: Finding a Way to Face COVID-19, Luiss Teaching Cases 2021.
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 (II)
• The reinvention of work and organizations
• Sustainable development goals as business challenges
• The emergence of new hybrid organizations
• COURSE WRAP-UP/PEDAGOGICAL JOURNEY
READINGS (MANDATORY):
Textbook, Chapter 7
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