Odcd
Odcd
Organizational Design
Determinants & Components
Basic Challenges of design – Differentiation, Integration,
Centralization, Decentralization, Standardization, Mutual
adjustment -Mechanistic and Organic Structures
Technological and Environmental Impacts on Design-
Importance of Design – Success and Failures in design.
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BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
Organizational design There is no one best method, and there are no right
or wrong types of organizational design. Instead, each organization must determine
what works best for them. As a result, you may find some elements of every design
structure in a single organization
. An organization’s behavior is the result of its design and the principles behind its
operation.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Determinants of Organization
Divisional organizational
Divisional organizational
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Business units can by divided by the industry or use case they target.
Consider Salesforce. It packages it Sales Cloud product to verticals based
on sector, like Education Cloud, Nonprofit Cloud, Health Cloud, etc.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
For example, Google has entire organizations that focus only on AdSense,
YouTube, YouTube TV, Google Search, Google Maps, and so forth.
Salesforce has entire division dedicated to Sales Cloud, Slack, Salesforce
Matrix organization
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Matrix organization
Advantages
Allows project managers to choose individuals by the needs of
a project.
Encourages employees to use their skills in various capacities
aside from their original roles
It makes the organization more dynamic and malleable.
Disadvantages
Conflicting needs can create friction between department
managers and project managers.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Team-based organization
Advantages
Organizations that are innovative and knowledgeable
through learning create a significant advantage over their
competitors.
Disadvantage
The organization must have knowledgeable employees
willing to share their knowledge and apply it.
It requires team design and excellent leadership
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Network structure
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
The forces have a potential effects on all parts (zone) of the organization.
Specific Environment
The specific or the task environment comprises force that directly affected an
organizations ability to Acquire resource.
in order to survive and obtain resource, organization must forge relationships
and engage in transactions with the various external stakeholders like,
customers, competitors, vendors and suppliers dealers and distributors, union
and the governments.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
General environment
The various force that provide shape to the specific environment and affect the
ability of the various organization in a specific environment to acquire resource
constitute the General environment
These force do not directly impact the daily operations of an organization but
have an indirectly impact.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
1. Economic forces:
Type of economy whether developed, developing, or underdeveloped.
Economic situation whether boom (or) recession the state of the economy.
Interest rates all of these are economic factors that can affect organization
performance. (GDP, GNP,FDI, and economic growth of rate.)
2. Technological force :
The company operation are influenced by technology force like development
in manufacturing technology improved production tools and techniques,
advancement in information and communication technology
(labor-technology- customer)
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
3. Political forces:
The government policy pertaining to the organization and their stakeholders
are affected by political force.
The political enveronmental affect the governments attitude towards
industrialization, privatization and globalization
4. Demographic , culture and social forces:
Age mix, gender mix, education and literary level socio-economic level,
lifestyle , value, and norms, as well as other cultural elements of the people in
country also affect organizational performance.
5. Legal
Laws of the land , rules and regulations, and policies and procedures impact
the manner in which organization function.
Rules and regulation pertaining to employment wags and compensation,
social security at affect overall cost.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
6. Competitive environment
Organization performance also affects by the completive environment, market
potential, power of vendors & suppliers as will as dealers and distributors.
Organization must design their structure such that they fit with the
environment.
fit structure
Unfit structure
Organization
Environment
organization Environment
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Environmental complexity :
Complexity may range from simple to complex (surround situation
organization ..like numbers , strength.etc.)
The greater the number, and the greater the differences between them, the
more complex and uncertain is the environment and the more difficult to predict
and control., example - Ford,
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Environment dynamism :
Dynamism may range from stable to unstable ( company resource, supply,
capacity of production)
Environment richness:
Richness may range from poor to rich ( company located poor zone or rich
zone dependent …performance.)
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Uncertainty
The set of forces that cause these problems can be looked at in another way
in terms of how they cause uncertainty because they affect the complexity,
dynamism, and richness of the environment. As these forces cause the
environment to become more complex, less stable, and poorer, the level of
uncertainty increases.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
According to emery and trist, there exist four ‘ ideal types” of causal textures of
the environment.
Placid randomized environment
Placid clustered environment
Distributed –reactive environment
Turbulent environment .
Placid randomized environment
Goal/ resource retain relatively unchanged and are randomly distributed ,there
is no difference between tactics and strategies.
Turbulent environments
The most complex environment the overall field is an important force and
introduces dynamism to the organization all actors are interlinked
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Duncan (1972)
According to him, the environment can be classified into internal and external .
Duncan (1972)
Simplicity
Defined as the extant to which factors that influence decision making in the
internal and external environment are fewer in number and similar to one
another and located in a few components.
Dynamism:
Defined as the extent to which factors considered during decision making,
change, and the frequency with which new and different factors are considered
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Babu and Aand, the owners, cook and wait tables as needed. They employ
one additional waiter. (3 individuals in the organization).
Integration
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Babu and Anad work in the kitchen full-time . They hire waiters busboys, and
kitchen staff. (22 individuals in the organization)
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Unable to manage both the kitchen and the dining room, they divide tasks
Into two functions, kitchen and dining room, and specialize. Babu runs the
kitchen, and Aand runs the dining room. They also add more staff.
(29 individuals in the organization)
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
The business continues to prosper. Babu and Aand create new tasks and
functions and hire People to manage the function. (52 individuals)
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
See new opportunity to apply their core competences in new restaurant venture.
They open new restaurants, put support functions like purchasing and marketing
under their direct control, and hire Shift managers to manage the kitchen and
dining room in each restaurant. (150 individauls ).
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Organizational Roles
Set of task-related behaviors required of a person by his or her position
in an organization
As the division of labor increases, managers specialize in some roles
and hire people to specialize in others
Specialization allows people to develop their individual abilities and
knowledge within their specific role
Organizational structure is based on a system of
interlocking roles
Authority: The power to hold people accountable for their actions and to
make decisions concerning the use of organizational resources
Control: The ability to coordinate and motivate people to work in the
organization’s interests
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
ORGANIZATIONAL DESIGN
Integrating role
a new, full-time role established to improve
communications between divisions
Integrating department
a new department intended to coordinate the
activities of functions or divisions
Change Process
Identifying the need for change: This can be done at the top level of management
or in other parts of the organization. The change may be due to internal or external
forces.
Defining goals: Define the goals of the change and their intended impact
Developing a plan: Use insights from the preparation phase to determine how to
implement the changes.
Providing reasons for the change: Demonstrate the necessity of the change to gain
employee support
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Prepare for change. This step involves understanding the necessary changes
and preparing staff members and stakeholders for what's to come. ...
Create a vision for change.
Implement changes.
Embed and solidify changes.
Review and analyze.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
1.Psychological resistance
2. Sociological resistance
3. Logical resistance
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
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resources/organizational-development-guide/
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Implementing
Adapting or continuing
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
this approach allows for a more thorough understanding of the area for
improvement. Companies should ask themselves what they want to
change, and why that change is necessary.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
This step can also include surveys or focus groups and individual
consultations.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
This plan will include specific support for individuals involved and
identify a measurable goal. During this step, companies should think
about how they’ll communicate changes to staff and manage feedback
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Once the company has clearly defined and communicated a plan, its
leaders must motivate their employees to share in a vision.
Implementing
When thinking about such support, management should consider what new
skills employees will need and what delivery methods will be most effective.
Ongoing feedback and communication can help make the change process
easier.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Foundations of OD
Leaders and OD practitioners use the knowledge of organization development
theory and practice to plan and implement effective change programs in their
organizations. The knowledge base of OD is extensive and is constantly
growing. Following are the most important underpinnings for the field of OD.
Resultant Theory
Three stage Model Theory
Resultant Theory
The current state of things at any point is the result of opposing forces.
Force field analysis is a tool that helps identify and analyze the forces that
influence a situation, and how to achieve desired change
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Leads to
transactional change
Organizational climate
Leads to
transformational change
Change in organizational culture
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
The work setting plays a central role in this model and consists of four
factors.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Systems Theory
System in Interaction
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Features are
1. A created structure
2. Operates in parallel
3. Questions the constraints
4. Engages inquiry, initiation and experimentation
5. Ensures Organization effectiveness
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Managing phases of OD
If good OD begins with good diagnosis, change agents need at least three key
tools.
First, they need solid theories and models about individuals, groups, and
organizations that help them make sense of organizational complexity.
Developing an organization requires a clear concept of what a “healthy” and
“effective” organization looks like, how its members behave, and how all the
parts fit together.
Second, change agents need methods for surfacing and exploring their own
interpretive frameworks and expanding their capacities for multiframe thinking
Organizations are complex and will only become more so. Multiple lenses
enable change agents to bring a full range of perspectives and understandings to
their work and increase the odds of addressing what is really going on in a client
organization
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Organizational culture
The commonly shared attitudes, values, beliefs, norms and behaviour of
employees in the organisation constitutes its culture. Organisational
climate variables are similar to organisational health variabes.
Organisational culture is studied normally in a descriptive way whereas
organisational health is studied in an evaluative way.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Motivational Climate
Organisations could be diagnosed in terms of the prevailing motives that
characterise the organization’s function. Does concern for excellence
characterise its culture or control? or relationships? or dependence? or
expert power? or helping each other?
HRD Climate HRD climate questionnaire deal with the extent to which a
development oriented climate or learning climate exists in an organisation.
Openness, collaboration, trust, proaction, authenticity, confrontation, risk-taking etc.
are normally characterised as facilitating development culture. Performance
appraisals, training, feedback, counselling, job-rotation, group meetings, career
development plans etc. are considered as instruments to facilitate cha
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
Specific Variables
In addition to these general variables the diagnostic questionnaire may
focus on specific variables depending on the need of the organization. For
example, if communication is perceived as an issue there could be
questionnaire to deal with all aspects of it.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN,
CHANGE AND DEVELOPMENT
UNIT I ORGANIZATIONAL DESIGN
Organizational Design
Determinants
Components
Basic Challenges of design – Differentiation, Integration,
Centralization, Decentralization, Standardization, Mutual
adjustment -Mechanistic and Organic Structures
Technological and Environmental Impacts on Design-
Importance of Design – Success and Failures in design.
BA4017 - ORGANIZATIONAL DESIGN,
CHANGE AND DEVELOPMENT
UNIT I ORGANIZATIONAL DESIGN
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