Lecture # 31
2. Organizational design and technology
•
Organizational design consists of the decisions about …
formal structures, processes, systems, roles and
relationships
•
Change in strategy ,goals will lead to change in structure
,functional , divisional or matrix type of structures,
hierarchical levels 5(growth or technology), degree of
centralization and delegation, formal planning and control
systems, and job specialization, education and training
•
Flexibility of structure is an imp. variable comprises - flow
of information (old paradigm-that top managers are most
informed), rewards (performance linkage) and recruitment
(internal or external
• How people use technology and willing to learn
newer production technologies is crucial in the
job design – because readiness for change
depends on this.
• Extent of technology promotion itself depend on
how people are socially linked to each other and
to the technical system of an org. Of particular
interest is
- How the knowledge of work procedures
(software) are synchronized with the mode of
production (e.g. small batch process),
The physical layout of the facilities (e.g. line
activities versus station layout) and means of
transformation (e.g. specialized versus
multipurpose)
3. Management Practices and org culture – such practices conducive
org mission and vision or for organization change and productivity
- Rules, principles and routine – how people do work
- System disconnect if practices are not related with mission of
organization
Or people are unable to give meanings to rules and regulations of
organization and larger goals of the organization
Or People are least motivated to do their jobs
- Or there is no perceived linkage between performance and reward
linkage
- Authority but not accountability is built in job-design
-
Unwritten rules and conventions
-
Culture – conservative or innovative, trust worthiness or trust-deficit,
discipline, socialization and tolerance for ambiguity
SOC process – two models
1.
OD models
2.
Behavioral modifications
OD model - OD is a distinct area within the field of organizational
science that focuses on the planned and controlled change
of organizations in desired directions
In essence, OD attempts to change an organization as a totality by
changing the organization’s structure, technology, people,
and/or tasks. (changing people or changing tasks,
structure and technology to be focused)
One popular model is Kurt lewin ‘s model and force field analysis
2. The behavior modification (BM) intervention is the normative
essence of the wider concepts of motivation, reward,
learning and organizational culture (Wilson, 1992).
This second school of thought has its roots in the practices of behavior
modification and is an attempt to understand and reduce
complex change processes in the organization to explicit
rules, procedures, and strategic actions to deal with all
possible contingencies
Leadership and strategic
organizational change
-Leadership and technology
-Leadership and middle
management
-Learning
-Motivation, Productivity and
Strategic Change
Determinants of Successful organizations
Environmental
Structural
Management orientation
1.
Customer is taken care of –focus on customer
needs-superior service to customers – do not
forget that org exist for customers
2.
Adapt their structure to organization mission –
control may be loose and tight, at departmental
level – loose in the sense of autonomy given and
tight in the sense of setting up of high
performance goals
Highly successful org operate with simple and
appropriate structure and adequate staff –instead
of empire building
- Entrepreneurship and risk taking is
encouraged at divisional level and innovation
being rewarded
- Goal attainment is preferred over paralysis
through analysis of alternatives –instead
satisficing action that ensures goal attainment is
encouraged
- Sticking to one’s knitting – to original arena of
org –instead of being led by different attractive
alternatives
- Stress upon the single value – quality product that is minimizing cost and satisfying the unique
need of the customer. (that single/dominant value
is highlighted in the promotion and training of
employees
- Finally successful org –seek consensus of
employee- agreement over performance goals
Determinants of failure in organization
- Environmental
– Change in technology e.g. technological innovation of competitors
and loss of business
- Dependency on supplier, and on single customer
Structural – Inadequate control mechanism –may not able to sense
change result in poor product quality and loss of customer
• Management orientation
- Indecisive leadership (half hearted) = a tendency to overanalyze data
or to take a “wait-and-see” attitude may cause a firm to lose ground
to competitors and may exacerbate internal problems.
- New hiring ignored especially of professional mangers –to revitalise
org through innovation (fresh thinking)
• Thought simplistic but the author analysis show that Environmental
factors are more likely to pose potential threats to an organization’s
well-being, while structural factors are an organization’s major
means of achieving success or, at least, coping with threats.