Chapter2OrganizationalStructureBrainstormingPleasereadthepassageonPage26andanswerthefollowingquestion.Whatisyourunderstandingof“adecentralizedmanner”inacompany?TextABuildingtheAI-PoweredOrganizationTextA

BuildingtheAI-PoweredOrganizationAIispromisingthough,manyorganizations’effortswithitarefallingshort.MainReason:Atthehighestlevel,it’sareflectionofafailuretorewiretheorganization.MakingtheShiftLeadersmistakenlyviewAIasaplug-and-playtechnologywithimmediatereturns.It’simportanttoalignacompany’sculture,structure,andwaysofworkingtosupportbroadAIadoption.Threeshiftsshouldbetakenintoconsideration.MakingtheShiftThreeshiftsFromsiloedworktointerdisciplinarycollaboration.Fromexperience-based,leader-drivendecisionmakingtodata-drivendecisionmakingatthefrontline.Peopleatalllevelshavetotrustthealgorithms’suggestionsandfeelempoweredtomakedecisionsFromrigidandrisk-aversetoagile,experimental,andadaptable.Atest-and-learnmentalitywillreframemistakesasasourceofdiscoveries,reducingthefearoffailure.SettingUpforSuccess

SeveraltasksshouldbepaidattentiontoExplainingwhyThisactionhelpsorganizationsunderstandtheurgencyofchangeinitiativesandhowallwillbenefitfromthem.Forleaders:Torallyeveryonearoundacommongoal.Forworkers:Toacceptandfitintoanew,AI-orientedculture.SettingUpforSuccess

SeveraltasksshouldbepaidattentiontoAnticipatinguniquebarrierstochange.Somecommonobstacles(workers’fearofbeingobsolete).SiloedprocessesinhibitthebroadadoptionofAI.SomesolutionsReviewinghowpastchangeinitiativesovercamebarriers.AligningAIinitiativeswiththeveryculturalvaluesthatseemlikeobstacles.SettingUpforSuccess

Certainpreparationsneededtobedone

Budgetingasmuchforintegrationandadoptionasfortechnology(ifnotmore).Balancingfeasibility,timeinvestment,andvalue.Aportfolioofinitiativeswithdifferenttimehorizonsratherthanquickwins.Prioritizationshouldbebasedonalong-termviewandseveralinitiativeswithdifferenttimelinescouldbecombinedtomaximizevalue.OrganizingforScale.“hub-to-spoke”model“hub-and-spoke”modelSettingUpforSuccess

ResponsibilitiesofHubColletingandgoverningData.RecruitingandtrainingAItalents,creatingcommunitiestosharebestpractices.Incorporatingwiththird-partyprovidersofdataandAIservicesandsoftware.LayingoutprocessesforAIdevelopmentacrosstheorganization.SettingsystemsandstandardsrelatedtoAIaccordingtoneedsofafirm’sinitiatives.SettingUpforSuccess

ResponsibilitiesofTheSpokesTasksrelatedtoadoption(end-usertraining,workflowredesign,incentiveprograms,performancemanagement,andimpacttracking.)TheGrayArea—ResponsibilitiessharedbybothKeytasks(settingthedirectionforAIprojects,analyzingtheproblemsthey’llsolve,buildingthealgorithms,designingthetools,testingtoolswithendusers,managingthechange,andcreatingthesupportingITinfrastructure.)SettingUpforSuccess

ThreefactorsaffectingtheattributionofresponsibilityThematurityofAIcapabilitiesBusinessmodelcomplexityThepaceandleveloftechnicalinnovationrequiredOversightandExecution

CommonstructuresthatpromotescaleinAIAgoverningcoalitionofbusiness,IT,andanalyticsleadersAssignment-basedexecutionteamsConclusionAvirtuouscirclewiththepromotescaleinAI.Workersabsorbnewcollaborativepractices.WorkersbeginreimaginingbusinessandoperatingModelsThespeedofinnovationincreases.Organizationalhierarchiesareflattening.Thatencouragesfurthercollaborationandevenbiggerthinking.RelatedTheories

TheScientificManagementTheoryTheapproachtoincreasedproductivityisthroughmutualtrustbetweenmanagementandworkers.Taylor(1947)proposedfourprinciplesofscientificmanagement:science,notrule-of-thumb;scientificselectionoftheworker;managementandlabourcooperationratherthanconflict;scientifictrainingofworkers.RelatedTheories

BureaucraticTheoryThistheoryconsiderstheorganizationasapartofbroadersociety.MaxWeberputgreattrustinmanagersandfeltthefirmwoulddowellifemployeessimplydidwhattheyweretold.Hisapproachisalsoconsideredrigid,impersonal,self-perpetuatingandempirebuilding.Jobdescriptions.writtenrules,decisionguidelines,anddetailedrecords.consistentprocedures,regulations,andpolicies.staffingandpromotionbasedonqualifications.RelatedTheories

AdministrativeTheoryItwaspropoundedbyHenryFayol,relatingtoaccomplishmentoftasks,andincludeprinciplesofmanagement,theconceptoflineandstaff,committeesandfunctionsofmanagement.RelatedTheories

TheSystemsApproachThisapproachviewsorganizationasasystemcomposedofinterconnected-andthusmutuallydependent-sub-systems.Thesesub-systemscanhavetheirownsub-sub-systems.Asystemcanbeperceivedascomposedofsomecomponents,functionsandprocesses.Thus,theorganizationconsistsofthefollowingthreebasicelements:ComponentsLinkingprocessesGo