Management

Engineering
ORGANIZATION
PLANNING,
DESIGN, AND
DEVELOPMENT
By: Campo, Elizabeth C BSCE III
 ORGANIZATION PLANNING
TECHNIQUES

1. Organization Analysis:
Process of defining the objectives and activities of a firm in the light Of
an examination Of its external environment and internal circumstances.
2. Organization Design:
The information provided by the organization analysis is used to define
the structure of the organization, the function of each major activity and
the role and responsibilities of each management position in the
structure.
 ORGANIZATION PLANNING
METHODS
1. Top down method: Under this method, the
top levels are actively involved in planning
process. They formulate goals, policies,
programs and strategies of the organization
and circulate to the lower levels for their
implementation. The middle and lower levels
do not participated in planning process. The
top down approach assumes that the top
levels only have knowledge, skills and
authorities of planning.
 ORGANIZATION PLANNING
METHODS
2. Bottom-up method: This is opposite to the
top down method. Under this method, the
middle and lower levels formulate plans and
lend to the top level for change and
adjustment. The top levels do not give any and
suggestions to the lower levels. This method
assumes that the lower levels have proper
knowledge and capability of planning. This is a
participatory method of planning. It follows
the democratic ways planning. Hence, it is
easier to implement the plans. of directions
 ORGANIZATION PLANNING
METHODS
3. Mixed method: This method is the combination of top
down and bottom up methods. Under this method, the
top level provides necessary direction about pl anning to
the lower levels regarding the nature structure of pl an.
However, the lower l evel s have autonomy and fl ex ibil ity
on the planning process. The l ower l evel s, prepare pl ans
present to the top l evel . The pl an is discussed with the
lower levels and and and final ized. Al l the l ev el s of the
organizations activel y participate in pl anning process.
Hence, it is easier to impl ement the pl an. Management by
objective (MBO) is an exampl e of mix ed method of
planning.
 ORGANIZATION PLANNING
METHODS
4. Team method: Under this method, a team is
formed for formulating plans. The team consists of
line managers and staff exports who work under the
leadership of chief executive or chairperson. The
team gathers information from external and internal
sources and prepares plans accordingly. The plans
are finally reviewed and approved by the top level or
BOD. This method is also a participatory method of
planning.
TYPES OF ORGANIZATIONAL
STRUCTURES
ERTICAL STRUCTURES (FUNCTIONAL AND DIVISIONAL)
Two main types of vertical structure exist,
functional and divisional. The functional
structure divides work and employees by
specialization. It is a hierarchical, usually
vertically integrated, structure. It emphasizes
standardization in organization and
processes for specialized employees in
relatively narrow jobs.
 TYPES OF ORGANIZATIONAL
STRUCTURES
This traditional type of organization forms departments
such as production, sales, research and development,
accounting, HR, and marketing. Each department has a
separate function and specializes in that area. For example,
all HR professionals are part of the same function and
report to a senior leader of HR. The same reporting process
would be true for other functions, such as finance or
operations.
In functional structures, employees report directly to
managers within their functional areas who in turn report to
a chief officer of the organization. Management from above
must centrally coordinate the specialized departments.
 TYPES OF ORGANIZATIONAL
STRUCTURES
MATRIX ORGANIZATIONAL STRUCTURES

A matrix structure combines the functional and divisional

structures to create a dual-command situation. In a matrix
structure, an employee reports to two managers who are jointly
responsible for the employee's performance. Typically, one
manager works in an administrative function, such as finance, HR,
information technology, sales or marketing, and the other works in
a business unit related to a product, service, customer or
geography.
 TYPES OF ORGANIZATIONAL
STRUCTURES
OPEN BOUNDARY STRUCTURES (HOLLOW, MODULAR VIRTUAL
AND LEARNING)
More recent trends in structural forms remove the traditional
boundaries of an organization. Typical internal and external barriers
and organizational boxes are eliminated, and all organizational units
are effectively and flexibly connected. Teams replace departments,
and the organization and suppliers work as closely together as parts
of one company. The hierarchy is flat; status and rank are minimal.
Everyone—including top management, managers and employees—
participates in the decision-making process. The use of 360-degree
feedback performance appraisals is common as well.

 TYPES OF ORGANIZATIONAL
STRUCTURES

Hollow organizations

Hollow structures divide work and employees by core and noncore

competencies. Hollow structures are an outsourcing model in which
the organization maintains its core processes internally but
outsources noncore processes. Hollow structures are most effective
when the industry is price competitive and choices for outsourcing
exist. An example of a hollow structure is a sports organization that
has its HR functions (e.g., payroll and

 TYPES OF ORGANIZATIONAL
STRUCTURES

Modular organizations
Modular structures differ from hollow organizations in that components of a
product are outsourced. Modular structures may keep a core part of the
product in-house and outsource noncore portions of the product. Networks
are added or subtracted as needs change. For a modular structure to be an
option, the product must be able to be broken into chunks. For example,
computer manufacturer Dell buys parts from various suppliers and assembles
them at one central location. Suppliers at one end and customers at the other
become part of the organization; the organization shares information and
innovations with all. Customization of products and services results from
flexibility, creativity, teamwork and responsiveness. Business decisions are
made at corporate, divisional, project and individual team member levels.
 TYPES OF ORGANIZATIONAL
STRUCTURES

Virtual organizations
A virtual organization (sometimes called a network structure)
is cooperation among companies, institutions or individuals
delivering a product or service under a common business
understanding. Organizations form partnerships with others
—often competitors—that complement each other. The
collaborating units present themselves as a unified
organization.

 ORGANIZATIONAL ARCHETYPES

Functional-oriented:

Organizations optimize
for expertise, division
and reducing cost. These
organizations centralize
expertise and have tall
hierarchical structures.
Ex. Server admins, SREs,
Data admins
 ORGANIZATIONAL ARCHETYPES

Matrix-oriented:

Organizations attempt to
combine functional and
market orientation. This
results in complicated
organization structures
like a single person
reporting to multiple
managers etc.
 ORGANIZATIONAL ARCHETYPES

Market-oriented:
Organizations optimize for
responding quickly to
customer needs. These
organizations tend to be flat,
composed of multiple cross-
functional disciplines (ex.
marketing, engineering,
machine learning).
Each market-oriented team is
responsible for feature
delivery, operational tracking
and service support.
 SYMPTOMS OF AN INADEQUATE
ORGANIZATION STRUCTURE
1. Mismatched hierarchies.
How many layers of management your organization has and how you
structure employees will depend on both the size of your organization and
your strategic objectives.

A small business, for instance, would benefit from a flat organizational

structure. This allows for more open communication and collaboration. It also
removes barriers to achieving rapid change and constant innovation—two
necessary factors for small business success.

A larger company, or a company that relies heavily on following rules and

procedures, may benefit from a more functional or divisional model that
includes multiple layers of management. This kind of organizational structure
provides greater accountability and oversight to cut down on risk.
 SYMPTOMS OF AN INADEQUATE
ORGANIZATION STRUCTURE
2. Unclear roles.
While scope creep is inevitable in small business and startup environments,
it’s imperative to establish clear roles and responsibilities for each person in
your company. If responsibilities are constantly in flux in your organization,
take some time to understand why. In addition to a rapidly changing work
environment, unclear roles can stem from overlap in management, which
leads to confusion about reporting structure and what one person’s job
responsibilities entail.

3. Outdated processes and systems.

Processes or rules that are outdated inhibit growth. If updates and requests
are taking a long time to get approved or projects are stalling, it’s likely
because your processes and systems are no longer optimally functioning and
need re-evaluation.
 The goal of organizational design is to
create an efficient and well-functional
organization where the company’s
organizational structure aligns with its SHAPE OF THE
core competencies and strategy. A well-
executed organizational design process ORGANIZATION
creates more efficient workflows, a better
customer experience, and higher profit AND THE DESIGN
margins. It also prevents many of the
problems that occur with misaligned
PROCESS
business structures, including cash flow
shortages, workforce decreases, and
damage to customer loyalty and product
development.
 Plan
The first step of the design process is critical for
gathering information, requirements, and other data
you need in order to make informed decisions later.
Depending on the kind of design work you do, the
kinds of work you do during the planning stage could
vary, however all designers will do some variation of
these:
DESIGN PROCESS
STEPS
Define task, problem, or goal
Research audience/users
Gather requirements: research competitors, tech
specs, features, etc
Gather constraints: impose intentional creative
limits
Write, edit, and develop content and text
Preliminary sketching & brainstorming: explore &
evaluate data to ensure you have what you need
 Mock Up
Creating a mock up is the step of the
design process most people recognize—
it’s the most visual part of the process.
The type of work varies with the medium
for the design, but always includes:

DESIGN PROCESS
In-depth sketching and brainstorming
Design a final, polished solution using STEPS
design software (Photoshop, Sketch, etc)
Revise the solution repeatedly
Create rough prototypes to evaluate the
solution privately
 Build
Many designers believe their work is done after they’ve created
a mockup. However, designers are also responsible for making
sure their designs are implemented and used correctly.
Because of that, there are two additional steps in the design
process.
The next step is to build the design:
Implement the solution (often with the help of other

DESIGN PROCESS
professionals like programmers, printers, or manufacturers)
Revise the solution as technical issues arise or new aspects are
discovered that you had not addressed
Note that often the design needs revision as it is implemented.
While a detailed design process seeks to gather all critical STEPS
information so the designer doesn’t miss anything, sometimes
new details arise during production, and that’s unavoidable
simply because the production effort is often a complex
process in itself (for example, programming work). Because of
that, designers need to partner with the people implementing
their designs and address any new issues that pop up during
production. Bridging the gap between design concerns and
technical concerns creates a better product, so you should
never skip this step.
 Measure
The final step is to measure how successful
the design is after it’s put into use. Again,
while good planning allows designers to
make informed decisions, no design is
flawless and sometimes the environment
changes. Because of that, especially in DESIGN PROCESS
digital design, designers are involved with
measuring the design’s performance. STEPS

Launch the design and evaluate how well it

performs
Gather analytics, testing data, user
interviews, sales data, etc.
Find any problems with the design, and
start a mini design process to address each
ORGANIZATIONAL
GUIDELINES
1. Specialization principle. This principle states that boundaries should exist to
encourage the development of specialist skills. The test here is if any specialist
cultures, which are entities that have to be different from the rest of the organization,
have sufficient protection from the influence of the dominant culture.

2. Co-ordination principle. This principle states that activities that are done should be
coordinated in a single unit. This unit can be a business unit, business function,
(horizontally coordinating) overlay unit, sub-business, core resource unit, shared service
unit, project unit, or parent unit. The test here is if there needs to be coordination
between departments which is hard to do. These ‘difficult links’ are links where normal
networking will not provide coordination benefits. In that case, coordination should be
made easier, or responsibility should be put in within a single unit. There are many
different units that can be used in organizational design, as we will show below.
3. Knowledge and competence principle. This principle states that responsibilities should
be allocated to the person or team best fit to do them. This means that tasks are
retained by higher levels based on their knowledge and competitive advantage. If this is
not the case, they should be positioned lower in the organization.
This means that the CEO should not be involved in every decision – especially not
decisions that involve specialists with much more subject-matter knowledge. The CEO is
there for the big picture and to balance complex decisions that impact the organization
and strategy.
4. Control and commitment principle. This principle is about having effective control on
the one hand while maintaining engagement and commitment on the other hand. This is
always a balance. The test here is to have a control process that is aligned with the unit’s
responsibility, cost-efficient to implement, and motivating for the people in the unit.
This means that the CEO is not giving the ‘go’ on the purchase decision for a $30
keyboard – this would be highly demotivating, and control on such small expenditures
should be put lower in the organization to be adaptive anyway.
 5. Innovation and adaptation principle. This principle states that organizational
structures should be sufficiently flexible to adapt to an ever-changing world. The
test here is that the organizational design will help the development of new
strategies and adaptation to future changes. Later in this article, we will give a
case study of an organization that was unable to adapt to a rapidly changing
environment, hurting its internal processes and bottom line.
 Organization
Planning and
Implementation

Organizational planning is the process of defining a

company’s reason for existing, setting goals aimed
at realizing full potential, and creating increasingly
discrete tasks to meet those goals.

Each phase of planning is a subset of the prior, with

strategic planning being the foremost

There are four phases of a proper organizational

plan: strategic, tactical, operational, and
contingency. Each phase of planning is a subset of
the prior, with strategic planning being the
foremost.
Strategic
A strategic plan is the company’s big picture. It defines the
company’s goals for a set period of time, whether that’s
one year or ten, and ensures that those goals align with the
company’s mission, vision, and values. Strategic planning
usually involves top managers, although some smaller
companies choose to bring all of their employees along
when defining their mission, vision, and values.
Tactical
The tactical strategy describes how a company will
implement its strategic plan. A tactical plan is composed
of several short-term goals, typically carried out within one
year, that support the strategic plan. Generally, it’s the
responsibility of middle managers to set and oversee
tactical strategies, like planning and executing a
marketing campaign.
Operational
Operational plans encompass what needs to happen continually,
on a day-to-day basis, in order to execute tactical plans.
Operational plans could include work schedules, policies, rules, or
regulations that set standards for employees, as well as specific
task assignments that relate to goals within the tactical strategy,
such as a protocol for documenting and addressing work absences.

Contingency
Contingency plans wait in the wings in case of a crisis or
unforeseen event. Contingency plans cover a range of possible
scenarios and appropriate responses for issues varying from
personnel planning to advanced preparation for outside
occurrences that could negatively impact the business. Companies
may have contingency plans for things like how to respond to a
natural disaster, malfunctioning software, or the sudden departure
of a C-level executive.
1. Develop the strategic plan
Steps in this initial stage include:

Review your mission, vision, and values

Gather data about your company, like IMPLEMENTATION
performance-indicating metrics from your
sales department

Perform a SWOT analysis; take stock of

your company’s strengths, weaknesses,
opportunities, and threats
Set big picture goals that take your
mission, vision, values, data, and SWOT
analysis into account
2. Translate the strategic plan into tactical steps
At this point, it’s time to create tactical plans. Bring in
middle managers to help do the following:

Define short-term goals—quarterly goals are

common—that support the strategic plan for each IMPLEMENTATION
department, such as setting a quota for the sales
team so the company can meet its strategic revenue

goal
Develop processes for reviewing goal achievement to
make sure strategic and tactical goals are being met,
like running a CRM report every quarter and
submitting it to the Chief Revenue Officer to check
that the sales department is hitting its quota
Develop contingency plans, like what to do in case
the sales team’s CRM malfunctions or there’s a data
breach
3. Plan daily operations
Operational plans, or the processes that determine
how individual employees spend their day, are largely
the responsibility of middle managers and the
employees that report to them. For example, the
process that a sales rep follows to find, nurture, and IMPLEMENTATION
convert a lead into a customer is an operational plan.
Work schedules, customer service workflows, or

GDPR policies that protect prospective customers’

information all aid a sales department in reaching its
tactical goal—in this case, a sales quota—so they fall
under the umbrella of operational plans.

This stage should include setting goals and targets

that individual employees should hit during a set
period.
4. Execute the plans
It’s time to put plans into action. Theoretically,
activities carried out on a day-to-day basis
(defined by the operational plan) should help
reach tactical goals, which in turn supports the IMPLEMENTATION
overall strategic plan.

5. Monitor progress and adjust plans

No plan is complete without periods of
reflection and adjustment. At the end of each
quarter or the short-term goal period, middle
managers should review whether or not they
hit the benchmarks established in step two,
then submit data-backed reports to C-level
executives.
 1. Humanistic Values: Positive beliefs about the potential
of employees (McGregor's Theory Y).
2. Systems Orientation: All parts of the organization, to
include structure, technology, and people, must work
together.
3. Experiential Learning: The learners' experiences in the
training environment should be the kind of human
problems they encounter at work. The training should NOT
THERE ARE 7
be all theory and lecture.
4. Problem Solving: Problems are identified, data is CHARACTERISTICS
OF OD:
gathered, corrective action is taken, progress is assessed,
and adjustments in the problem solving process are made
as needed. This process is known as Action Research.
5. Contingency Orientation: Actions are selected and

adapted to fit the need.

6. Change Agent: Stimulate, facilitate, and coordinate
change.
7. Levels of Interventions: Problems can occur at one or
more level in the organization so the strategy will require
one or more interventions.
 DIAGNOSTIC
METHOD

Diagnostic method may be Standardized

or Teacher made and more or less
followed the principles of test
construction i.e., preparation, planning,
writing items, assembling the test,
preparing the scoring key and marking
scheme and reviewing the test.
 PLANNING THE
PROGRAMME
Programme planning is an on-going dynamic
process that extension professionals intuitively
follow as they plan, implement and evaluate
their educational programmes. The basic
principles remain the same, only the scope is
different. The gap between the situation and
objective is the area of needs. This area
becomes well-defined after the situations and
the objectives are determined by the leaders,
extension professionals and specialists.
The End !!!!!