ORGANISATIONAL SYSTEM

ENVIRONMENTAL SYSTEM
GOALS &VALUES TECHNICAL
SUBSYSTEM SUBSYSTEM

• CULTURE • TASK REQUIREMENT

• PHILOSPHY • KNOWLEDGE
• OVERALL GOALS • TECHNIQUES
MANAGERIAL SUBSYSTEM • LAYOUT OF
• INDIVIDUAL GOALS
FACILITIES
.
• GOAL SETTING • MACHY EQUIPMENT
• PLANNING • INFORMATION
• ASSEMBLING
PSYCHOSOCIAL • RESOURCE STRUCTURAL
SUBSYSTEM • ORGANISING SUBSYSTEM
• IMPLEMENTATION • TASKS
• HR • WORK FLOWS
• ATTITUDES • WORK GROUPS
• MOTIVATION • AUTHORITY &1`ORG
• GP DYNAMICS CHARTS
• LEADERSHIP • INFORMATION FLOWS
• INFLUENCE SYSTEMS
• PROCEDURES & RULES
1
 PSYCHOSOCIAL SUBSYSTEM

• INDIVIDUAL AND THEIR RELATIONSHIPS ARE THE

PRIMARY ELEMENTS OF THIS SUBSYSTEM.

• PSYCHOSOCIAL SYSTEMS CAN BE UNDERSTOOD

INTERMS OF MOTIVATION AND BAHAVIOUR
OCCURRING IN AN ENVIRONMENT WHICH
INCLUDES

2
 PSYCHOSOCIAL SUBSYSTEM
GROUP DYNAMICS

• SMALL GPS PROVIDE A MEDIATING MECHANISM

BETWEEN INDLS AND ORGS.
• ACTIVITIES, INTER ACTION AND SENTIMENTS PLAY AN
IMP PART IN ORG BEHAVIOUR.
• INDLS HIGH LEVEL NEEDS (SOCIAL ESTEEM AND SELF
ACTUALISATION) ARE SATISFIEDVIA HIS POSITION IN A
SMALL GP OR A LARGE ORG.
• COMMUNICATION IS THE BASIS OF GROUP DYNAMICS.

3
 PSYCHOSOCIAL SUBSYSTEM
INFLUENCE SYSTEMS

• INCLUDES VIRTUALLY ANY INTERPERSONAL

TRANSACTION WHICH HAS PSYCHOLOGICAL OR
BEHAVIORAL EFFECTS.

• EXERTED IN MANY DIRECTIONS - UP AND DOWN THE

HIERARCHY AND LATERALLY IN PEER GROUP
RELATIONSHIPS.

• CHANGES IN BEHAVIOR OF A PERS/GROUP DUE TO

ANTICIPATION OF THE RESPONSE OF OTHERS –
RELATIONSHIPS AMONG PEOPLE.

• WAYS TO INFLUENCE BEHAVIOUR - EMULATION

,SUGGESTION PERSUASION, COERCION.
4
 PSYCHOSOCIAL SUBSYSTEM
LEADERSHIP
• ABILITY TO PERSUADE TO SEEK DEFINED OBJECTIVES
ENTHUSIASTICALLY .

• BINDS A GROUP TOGETHER AND MOTIVATES IT TOWARDS GOALS.

• TAPPING OF LATENT HUMAN CAPABILITY IN ACHIEVING GROUP

OBJECTIVES.

5
 PSYCHOSOCIAL SUBSYSTEM

HR ATTITUDES.

• NORMS, VALUES AND CULTURE OF THE ORG MAKE UP

THIS SUB SYSTEM.

• INCLUDES SOCIAL RELATIONSHIPS AND COMMON

NETWORK.

6
• HOW PEOPLE COMMUNICATE AND ACTUALLY
DO THE WORK, STRONGLY INFLUENCES THE
ORG THROUGH THE PSYCHOSOCIAL
SUBSYSTEM.

• TAVISTOCK EXPERIMENTS – PROBLEM WAS

WORKERS HAD PROBLEM COMMUNICATING
WITH MANAGEMENT.

• WHEN A PERSON ENTERS OR LEAVES THE

ORG THE PSYCHOSOCIAL SYSTEM CHANGES.

7
 FACTORS AFFECTING HUMAN
BEHAVIOUR
CURRENT
REWARD SYSTEM PERSONAL PAST EXPERIENCE
ECONOMIC,INCENTIVES SITUATION
PERCEPTION

MANAGERIAL SYSTEM PERSONAL VALUE SYSTEM

(PLG & CONT DECISIONS (ATTITUDES ,PROPENSITIES TO ACT)
LEADERSHIP)
COGNITION MOTIVATION

GROUP RELATIONDHIPS
WORK SITUATION
(TASK &TECHNOLOGY)
CULTURE (NORMS )
8
 MANAGERIAL SUBSYSTEM

• MGMT – PROCESS OF INTEGRATING HUMAN AND

MATERIAL RESOURCES INTO A TOTAL SYSTEM FOR
OBJECTIVE ACCOMPLISHMENT.

• LINKS OTHER PRIMARY SUBSYSTEMS OF ORGS.

• INTEGRATES ACTIVITIES TOWARDS ACHIEVEMENT

OF EXPLICIT/IMPLICIT GOALS.

9
• PLG & CONT ARE THE PRIMARY ACTIVITIES
INVOLVED IN INTEGRATING PURPOSEFUL ORG
ACTIVITY.

• PLG & CONTROL HAVE TO CONSIDERTHE

IMPACT OF EXTERNAL ENVIRONMENTAL
SYSTEM AND THE INTERNAL TECHNICAL AND
PSYCHOSOCIAL SYSTEM.

• BEHAVIOUR IS GOAL ORIENTED AND HUMAN

BEINGS MOVE TOWARDS GOALS BY CHOOSING
AN ALTERNATIVE.

• BEHAVIOUR IS A RESULT OF SEQUENCE OF DM.

10
 GOALS AND VALUE SUBSYSTEM

• BASIC VALUES WHICH UNDERLIE GOAL SETTING AND

DM ARE A FUNDAMENTAL PART OF THE ORG SYSTEM.
• NORMATIVE VIEWS OF WHAT IS GOOD AND DESIRABLE.
• PROVIDE STANDARDS WHICH INFLUENCES CHOICE OF
ACTIONS.
• SOCIAL VALUES REFLECT A SYSTEM.
• CULTURAL VALUES PROVIDE COHESIVENESS

11
• FIVE LEVELS.
• INDIVIDUAL VALUES.
• GROUP VALUES – AFFECT INDL BEHAVIOUR
AND ACTIONS OF ORG.
• ORGANIZATIONAL VALUES.
• VALUES OF CONSTITUENTS – CUSTOMERS,
COMPETITORS OF ENVIRONMENT AND GOVT
AGENCIES.
• CULTURAL VALUES – VALUES OF THE TOTAL
SOCIETY.

12
 GOALS AND VALUE SUBSYSTEM

• THREE PRIMARY PERSPECTIVES.

• ENVIRONMENTAL LEVEL – THE SOCIAL GOALS
IMPOSED ON THE ORG.
• ORGANISATIONAL LEVEL – SYSTEM GOALS.
• INDIVIDUAL LEVEL – PARTICIPANTS GOALS.

13
• GOALS - INFLUENCE THE INTERACTIONS WITH
ENVIRONMENTAL SUPRASYSTEM AND THE
OTHER SYSTEMS.
• FOCUS THE ATTENTION OF PARTICIPANTS
UPON ACTIONS WHICH ARE
ORGANIZATIONALLY RELEVANT.
• HELP DETERMINE THE TECHNOLOGY REQD.
• SET BASIS FOR SPECIALISATION OF EFFORT,
AUTHORITY PATTERNS , COMMUNICATION AND
DECISION NETWORKS AND OTHER
STRUCTURAL RELATIONSHIPS.

14
 GOALS AND VALUE SUBSYSTEM

• INFLUENCES ON GOALS
• PERSONALITY OF TOP EXECUTIVES.
• HISTORY OF THE ORG.
• COMMUNITY ENVIRONMENT.
• NORMS ON VALUES WITH WHICH THE ORG DEALS.
• STRUCTURE.
• CULTURAL SAFETY

15
• RESPONDING TO ENVIRONMENT LEADS TO A
CONTINUOUS NEED TO ELABORATE THE GOAL
SET OF THE ORG AND IS INFLUENCED BY
INTERACTION –COMPETITION , BARGAINING,
CO-OPTATION AND COALITION.
• SYSTEM GOALS
• SELF PERPETUATION , STABILITY OF OP, HIGH
RATE OF RETURN, GROWTH , SATISFACTION OF
PARTICIPANTS , TECH LEADERSHIP AND
INNOVATION.

16
 AUTONOMOUS WORKGROUPS

• SOCIO TECH THEORY.

• WORKERS ARE LIKELY TO BE PRODUCTIVE AND
SATISFIED WHEN THEIR SOCIAL NEEDS ARE MET.
• TAVISTOCK RESEARCHES – CONCEPT OF
AUTONOMOUS WORK GROUPS.
• WORKERS WORK AS A TEAM TO COMPLETE AN
ENTIRE TASK VIS A VIS WORKERS PERFORMING A
PARTICULAR CHORE ALONG AN ASSY LIVE.

17
• TWO APPROACHES.
• TEAM BUILDING
• MATRIX ORG – COMPROMISE BETWEEN
STAFF AND COMPLETE
• AUTHORITY.
- VERTICAL FLOW OF AUTHORITY FROM
VARIOUS FM MANAGERS.
- HORIZONTAL FLOW OF PROJECT AUTH.

18
 AUTONOMOUS WORKGROUPS

• CHANGES IN EACH SYSTEM AFFECTS THE OTHER

SYSTEMS FOR eg
THE PROBLEM OF RETAINING WORKERS.

MGMT SUBSYSTEM – MGMT OF WORKERS.

• TECHNICAL SUB SYSTEM - AVAILABILITYOF TOOLS

AND RESOURCES.

• PSYCHO SOCIAL SUB SYSTEM --- INTER PERSONNEL

RELATIONSHIPS.

19
 UNCERTAINITY

• BURNS AND STALKER SUGGESTED TWO

FACTORS DETERMINANT OF ORG STRUCTURE
AND PERFORMANCE - RATE OF CHANGE AND
THE LEVEL OF UNCERTAINITY IN THE
ENVIRONMENT.TWO TYPES OF SYSTEMS
RECOMMENDED.

20
 LAWRENCE AND LORSCH

• SPECIALISED SYSTEM DEVELOP IN RESPONSE TO

DIFFERENT ASPECTS OF THE ORGANISATION
ENVIRONMENT.
• PRODUCTION DEPATRMENTS WHICH HAD STABLE
ENVIRONMENTAL CONDITIONS TEND TO BE MORE
BUREACRATIC THAN RESEARCH DEPARTMENT.
• HIGH LEVEL OF DIFFERENTIATION REQUIRED BY THE
ENVIRONMENT LED TO THE PROBLEM OF
INTEGRATING THE DEPARTMENT.
• THIS PROBLEM SOLVED BY SOME FIRMS EMPLOYING
A GROUP OF MANAGERS TO COORDINATE THE
DIFFERENT DEPARTMENTS.

21
 AFFECT OF SIZE

• RELATIONSHIP BETWEEN SIZE AND LEVEL OF

BUREACRATISATION
• ORG SIZE AND JOB SATISFACTION STUDY BY
REVANS AND PORTER--- LARGER THE ORG
LOWER THE JOB SATISFACTION LEVEL ,HIGH
LEVEL OF ABSENTEEISM AND LABOUR
TURNOVER.

22
• ORG SIZE AND UNIONISATION
• BAIN SUGGESTS A STRONG POSITIVE
CORRELATION BETWEEN ORG SIZE AND WHITE
COLLAR UNIONISATION.

• ORG SIZE AND STRIKE PRONENESS

• RESEARCH BY DOE AND PRAIS SUGGEST

LARGER THE FACTORY GREATER THE
FREQUENCY OF STRIKES.

23
Contingency Theory as a Model of Change
• Systems thinking approach adopted by Lawrence
and Lorsch
• Studied the characteristics of organizations and their
environment.

• Believed that determining the best structure and

leadership for an organization is contingent on the
relation of the organization to its environment.

• The systems that constitute the organizations are

affected by “boundaries” and by a process called
“differentiation & integration”.

24
Boundaries:
• The boundary between an open system and its
environment is permeable; similar to cells in human body.
• Sales people going out in the market to sell.
• Resource mobilization like physical goods and
human resource from environment.
• The problems in an organization first becomes visible at
the boundaries.
• Drop in sales and complaints from customer – a
sign of organizations unresponsiveness towards
customers needs
• Organizations must be attuned and responsive to
environmental changes that occur at the boundary.
25
Contingency Theory as a Model of
Change ..Contd..
Integration:

• Specialized groups / units for tasks

• Independent style of interaction with the organization

• Different impact of their behavior on organization

• Need for coordination between units to achieve

organizations overall goals

26
 • The effective coordination between units is called
Integration
• Need for appropriate structure – such as
bureaucratic or matrix
• Need for appropriate leadership

Differentiation:
The organizational units vary on following four
dimensions:
• Formality of structure
• Goal Orientation
• Time Orientation
• Interpersonal Orientation
27
Formal and Informal Systems

• Deals with:
• The formal policies and procedures of the organization.
• The informal ways in which organizational members work
together.

• Two theories have been put forward by:

• Marvin Weisbord’s
• The Six – box model – Formal Systems
• The organizational fit – Formal and Informal
Interactions
• Nadler & Tushman’s
• Congruence Model - Formal and Informal Interactions

28
The 6 Box Model
Purposes:
What business are we in?
Agreement on goals in
missions
Relationships: Structure:
How do we manage conflict How do we assign the
among people with work and how it gets
technologies? How do workers done?
get along

Leadership:
Does some one keep the
boxes in balance?

Helpful mechanisms:
Have we adequate
Rewards:
coordinating technologies?
Do all needed tasks
Like budgeting, planning &
have incentives?
control, and management
information

29
Organizational Fit

• How the organization fits within its environment

• Compatibility with customers, government, union

• How the individual fits with in the organization

• Compatibility of individual’s personal values, political
orientation, hobbies, style of dress with other
organizational members

30
 The Congruence Model

• Organizationdraws inputs from environment in the

following form
• Capital, raw material, technology and people
• Organization history
• Pattern of employee behavior
• Organizational policies and procedures
• Management’s method for decision making
• The model takes into account the inputs and resulting
output after transformation

31
• The transformation process includes four components:
• Task – job and their inherent characteristics
• Informal organizational structure – social structure
among organizational members including informal
communication, politics and authority structure
• Individual – personal characteristics of employee
such as age, sex, education
• Formal organizational arrangements –
documented managerial and operational structure,
the pay system, the management information
system
• Outputs are the outcomes for the organization, the
work group and the individual.

32
A Change – Based Organizational Framework

• According to Porras and Robertson model, the factors in the

internal organizational environment that shape and guide the
behavior of workers fit into four categories:
• Organizing arrangements – the formal elements that
coordinate the behavior of people and groups in an
organization
• Goals & Strategies
• Structure & administrative policies and procedures
• Administrative system & reward system
• Ownership

33
• Social factors – characteristics of the people in the
organization and their relations
• The culture, management style, interaction
process, informal patterns & networks and
individual attributes
• Physical settings
• The building and locations
• Technology
• Equipments, IT, job design, work flow design,
technical expertise & procedures and technical
systems

34
Thank You

35