Chapter 8
INP3004/MAN3360
Dr. Steve
Organizational Research
Macro vs Micro Levels
• Macro level –
• Micro level –
• Macro vs Micro research –
– Sample size, cooperation, # of orgs w/ variable of interest.
– Talk in terms of Organizational Theory
Organizational Theories
1. Classical Theory
2. Neo-Classical Theory
3. Systems Theory
1
Classical Theory
Components
Classical Theory –
•
1.
Four Components of classical theory
Differentiated Activities –
•
2.
Ex:
People –
•
3.
Ex:
Cooperation toward a goal –
•
4.
Ex:
Authority –
•
Ex:
Classical Theory
Principles
•
Four Principles of Classical Theory that guide four
components
1. Functional Principle – Division of labor (Horizontal) –
2. Scalar Principle – Chain of command – (Vertical)
3. Line/Staff Principle –
•
Line –
•
Staff –
4. Span of Control –
Flat –
Tall –
Vertical Structure
Functional vs Scalar Principles
Scalar Principle
•
•
Functional Principle
Horizontal Structure
2
Neo-Classical Theory
Neo-classical theory –
• Differentiated activities –
• People –
• Cooperation toward a goal –
• Authority –
Neo-Classical Theory
in Comparison to Bureaucracy
Neo-classical theory:
Systems Theory
Systems Theory –
3
Systems Theory
Five Parts to an Organizational System
1. Individuals –
2. Formal Organization –
3. Small Groups –
4. Status and Role –
5. Physical Setting –
Systems Theory Model
Output Users
• Consumers
• Clients
• Government
• Non-consumers
Input Resources
• Families
• Banks
• Environment
• Material suppliers
Feedback
Input
• Human Resources
• Financial Resources
• Physical Resources
• Materials
• Information
Process
• Organizational Structure
• Admin Decision Making
• Org policies, procedures
• Production process
• Org Climate
Output
• Products/Services
• Satisfaction
• Reputation
• Profit/loss
• Wages/Salaries
• Taxes
Organizational Structure
Coordinating Mechanisms
Organization Complexity
1. Mutual Adjustment –
2. Direct Supervision –
3. Standardization of Work Processes –
4. Standardization of Work Output –
5. Standardization of Skills & Knowledge –
4
Mintzberg’s
Basic Parts to all Organizations
Strategic
Apex
Techno
Support
Middle
Line
Support
Staff
Operating
Core
Mintzberg’s
Basic Parts to all Organizations
1. Operating Core –
2. Strategic Apex –
3. Middle Line –
4. Techno Structure –
5. Support Staff –
Re-organizing & Downsizing
Restructure
• Reorganize
• Downsize
Sent packing
Fired Pink Slip
Rightsized
Canned
Axed
Laid off
Riffed
Walking papers
5
Reasons for Downsizing
• Automation –
• Obsolescence –
• Salary Expense –
Pink Slip
Who gets the Axe?
• Strategic Apex?
– Very high salaries, could save big $$
– However, most responsibility, make big decisions
• Operating core?
– Lots of workers, perhaps don’t need as many
– However, they make the products, low salaries don’t save that
much $$
• Middle line?
– Can reorganize and eliminate many middle mgr jobs and fairly high
salaries
• Support Staff?
– Can be contracted or leased out, save on senior salaries and
benefits
• Techno Structure?
– In house advisors/analysts can be replaced with outside
consultants that charge more, but only work when you need them
Before Downsizing
Organizational Chart of SteveMart
President
($300k)
Regional
Vice-President
($150k)
Vice-President
Pensacola
($100k)
Production
Manager
($50k)
Sales
Manager
($50k)
Regional
Vice-President
($150k)
Vice-President
Orlando
($100k)
Production
Manager
($50k)
Sales
Manager
($50k)
Vice-President
New York
($100k)
Production
Manager
($50k)
Sales
Manager
($50k)
Vice-President
Boston
($100k)
Production
Manager
($50k)
Sales
Manager
($50k)
Total Salary = $1,400,000
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After Downsizing
Organizational Chart of SteveMart
President
($300k)
Vice-President
($150k)
Sales
Manager
($100k)
Production
Manager
Pensacola
($50k)
Production
Manager
Orlando
($50k)
Production
Manager
New York
($50k)
Production
Manager
Boston
($50k)
New Total Salary = $650,000
Organizational Social System
Social System –
• Three components
1. Roles –
2. Norms –
3. Organizational Culture –
•
“The way we do things around here”
Organization Development
• Organization Development (OD) –
– OD consultant like an Org Doctor
• Diagnoses org’s problems
• Prescribes a corrective intervention
• Rechecks with follow-up evaluation
7
Organization Development
Components
1. Change Agent –
2. Client –
3. Intervention –
Empowerment
•
Giving more power and decision-making authority
to employees within a context of less traditional
managerial oversight
Spreitzer’s (1997) four dimensions of empowerment:
1. Meaning –
e.g.,
2. Competence –
e.g.,
3. Self-determination –
e.g.,
4. Impact –
e.g.,
How many psychologists does it take
to change an organization?
•
One, but it has to want to change.
• Cannot change an org if you don’t understand:
1.What can be changed
2.What outcome you expect to accomplish
3.Those things that can affect the change
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Model of Organizational Change
Intervention Activity
Organizational Work Setting
Social
factors
Organizing
arrangements
Physical
setting
Technology
Individual
Behavior
Organizational
performance
Organizational
Outcomes
Individual
development
Model of Organizational Change
(Robertson & Porras)
•
Organizational Work Setting – Four interacting
components
1. Organizing Arrangements –
•
Ex:
2. Social Factors –
•
Ex:
3. Physical Setting –
•
Ex:
4. Technology –
•
Ex:
Model of Organizational Change
(Robertson, Roberts, & Porras)
• Individual Behavior –
– Ex:
• Organizational Performance –
• Individual Development –
9
Overcoming Organizational
Resistance to Change
• Due to increased ambiguity in the environment and other
undesirable effects, individuals often resist change in an
organization
• Dirks, Cummings, & Pierce (1996) used the concept of
psychological ownership to understand why people
promote or resist change
•
• Three needs related to psychological ownership:
1. Self-enhancement
2. Self-continuity:
3. Control and efficiency:
Resistance to Change
• Three types of organizational change:
1. Self-initiated vs. imposed change:
2. Evolutionary vs. revolutionary change:
3. Additive vs. subtractive change:
• Additional ways a consultant can ease concerns in
a change situation:
Organization Development
Intervention Activities
•
Diagnostic –
•
Intergroup –
•
Education & Training –
•
Coaching & Counseling –
•
Life & Career Planning –
10
OD Intervention Depends on: Client, Type of
Change, and Role of Change Agent
Client
Total Org
Group
Individual
Conceptual
Behavioral
Type of
Change
Procedural
Structural
Role of
Change Agent
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Change Agent Roles
1. Acceptance –
•
E.g.,
2. Catalyst –
•
“E.g.,
3. Confrontative –
•
E.g.,
4. Prescriptive –
•
E.g.,
Culture Change
•
What is necessary for an org to change its
culture (norms, beliefs)?
1. Strong leader –
2. Clear vision –
3. New work procedures –
4. Org must be open to learn –
11
Total Quality Management
• Total Quality Management (TQM) or Total Quality
Leadership (TQL)
– OD intervention begun by W. Edwards Deming (American
Physicist)
– First adopted by Japanese business
– Became popular in U.S. after success of Japan
– Based on premise “Continuous Process Improvement”
Total Quality Management
How does it work?
1. Employee Involvement –
How?
• Sharing info –
a) Develop knowledge –
b) Reward org performance –
c) Redistribute power –
2. Quality Control –
3. Customer Satisfaction –
4. Org Policies consistent with TQM –
Re-engineering
Re-engineering –
1. Identify org’s distinctive competencies –
2. Assess Core Processes –
3. Re-organize horizontally by process -
12
TQM vs. Re-engineering
TQM
Re-engineering
• Gradual improvement
• Bottom-up:
• participative decisionmaking in planning TQM
and execution
• Results in new processes
• Drastic change
• Top-down:
• management decides
how to re-engineer
• Often results in downsizing
Does OD work?
• Like therapy, a single dose is often not effective
• Empirical findings
–
–
–
–
No change about 50% of the time
Negative change less than 10% of the time
Positive change about 40% of the time
Results similar to that of psychotherapy – with therapy
many people still don’t get better, some do, very few
get worse.
–
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