Professional Documents
Culture Documents
al Interventions
Chapter 14:
Restructuring Organizations
Chapter 15: Employee
Involvement
Chapter 16: Work design
Technostructural
Interventions
Change programs
focusing on the
technology and
structure of
organizations
(Cummings & Worley, 2009)
Restructuring organizations
Organization structure
describes how overall work
of the organization is
divided into subunits and
how these subunits are
coordinated for task
Designed to fit at least 4 factors :
completion.
environment, organization size,
technology & organization
strategy
1)
Common
Organizational
Structure
Functional structure
Advantag
es
Promotes skill
specialization
Facilitate
communication
Reduce duplication
of work
Disadvanta
ges
Reduces
communication &
cooperation
between
departments
Advantages
Recognize key
interdependencies &
coordinate resources
toward an overall
outcome
Disadvantag
es
May not have enough
specialized work to use
peoples skill and
abilities fully
3) Matrix Structure
Allows multiple
orientation
Maintains consistency
between different
departments & projects
Provide mechanisms to
deal with multiple
sources of power in the
org
Disadvantag
es
Can cause role confict for
the individual who can be
caught between the
demands of two managers
Advantage
s
4) Process
Structure
Cross-Functional Team
Members
Cross-Functional Team
Members
Advantag
es
The work fow & each
departments
connections to the
customer are much
clearer to all
organizational
members
Disadvantag
es
Less useful in
organizations that have
automated or
outsourced many
processes & thus do
not have job assigned
to them as the
structure intends
5) Network Structure
Producer
organizati
on
Designer
organizati
on
Broker
organizati
on
Supplier
organizatio
n
Distributor
organizati
on
Advantages
Cost effective
& fexible
Focus the
organization
on its central
purpose
Disadvantag
es
Can cause
problems
when the
organization
must rely on
the
performance
of an external
company over
which it may
have little
control
Downsizing
Refers to interventions
aimed at reducing the size
of the organization,
accomplished by decreasing
the number of employees
through layoffs, attrition,
redeployment or early
retirement or by reducing
number of organizational
units or managerial levels
through divestiture,
outscoring, reorganization
or delayering
Application
Stages
Clarify the organizations
strategy
Tactic
Downsizing
tactics
Characteristic
Examples
(Cameron
et al.,1993)
s
Workforce
reduction
Reduces headcount
Short-term focus
Fosters transition
Attrition
Retirement/buyo
ut
Lay-offs
Organizati
on
redesign
Changes
organization
Medium-term focus
Fosters transition
and
transformation
Eliminate
functions, layers,
products
Merge units
Redesign tasks
Changes culture
Long-term focus
Fosters
transformation
Change
responsibilities
Foster
continuous
Systemic
Reengineerin
gThe fundamental
rethinking & radical
redesign of
business processes
to achieve dramatic
improvements in
performance
Characteristics of
Reengineering in
Organisations
Work units change
from functional
departments to
process teams
Jobs change from simple tasks to
multidimensional work
Peoples roles change from
controlled to
empowered
The focus of performance measures
and
compensation shifts from activities
to results
Organisation structures change
from hierarchical to flat
Re-engineering
Employee
Involvement
Seeks to increase
members input
decisions that affect
organization
performance and
employee wellbeing (Cummings & Worley,
Lead 2009)
to quicker, more responsive
decisions, continuous performance
improvements & greater employee
fexibility, commitment and satisfaction.
4 key elements
(Cummings & Worley, 2009)
EI Applications:
Parallel Structures
(Cummings & Worley, 2009)
EI Applications: Parallel
Structures
1
2
3
4
5,
EI Applications: Total
Quality Management
(TQM)
Quality is achieved when
organizational processes reliably
produce products and services that
meet or exceed customer
expectations
(Cummings & Worley, 2009)
Total Quality
Management (TQM)
Is a combination of a number of
organization improvement techniques
and approaches including the use of
quality circles, statistical quality
control, statistical process control,
self-managed teams and task forces &
extensive use of employee
participation.
(French & Bell,
1999)
EI Application: Total
Quality Management
(TQM)
Work Design
STRATEGIC
CHANGE
INTERVENTIONS
PSYC 6220-Organizational Change & Development
Understanding
Introduction
UNDERSTANDING
the
Balanced
STRATEGIC
Scorecard
INTERVENTIONS
Without a strategy, an organisation is like a ship
without a rudder, going round in circles. Its like a
tramp; it has no places to go. (Ross and Kami)
What is Strategic
Interventions ?
What is Strategic
Interventions ?
Strategic interventions contribute to align
the organization with its environment
and that which links the internal
functioning of the organization to the
larger environment; transforming the
organization to keep pace with changing
conditions.
Cummings andWorley(2009)
What is Strategic
Interventions ?
Strategic intervention help
organizations to gain a better
understanding of their current state,
and their environment, that allow
them to better target strategies for
competing or collaborating with
other organizations
Cummings andWorley(2009)
Transformational Change
1
Continuous Change
2
Transorganisational Change
Understanding
Part 1
Transformational
the Balanced
Change
Scorecard
What is Transformational
Change?
Organisation transformation implies radical changes
from its members behavior, internal functions,
corporate structures, company values and norms,
and the organisational arrangement.
-Cummings and Worley (2009)
Organisational transformation involves creation
of a new organizational vision
(Porras and Silvers as cited in Smither,
Houston, & McIntire, 1996)
A change in which the organisation moves to a
radically different, and sometimes unknown,
future state.
(Nelson & Quick, 2011)
Triggered by
Environmenta
l and Internal
Disruption
Characteris
tics
of
transformati
onal
Change Is Aimed at
Competitive
Advantage
Uniqueness unique
bundle of resources which
represent completive
advantage
Value higher-thanaverage Is
price or
Change
exceptionally low in cost
Systematic
Imitation difficulty
Change
Demands a
New
Organizing
Paradigm
chan
ge
and
Revolutiona
ry Involves
learning and
innovation.
reshaping
Members must
organisations
learn to enact new
design elements
behaviors to
Triggered
by
Senior
Involving gamma types
and its entire
implement new
of change (Bartunek & Executives andnature
Line
strategic directions
Louis, as cited in
Cummings and Worley, Management
2009) - discontinuous play key role in actively leading
transformation in deciding the when, how,
shifts in mental or
Understanding
the Balanced
Scorecard
Integrated Strategic
Change
Points on Integrated
Strategic
Change
1
2
3
Stages of ISC
ISC Stages
STRATEGIC PLANNING
Readiness for
change
Senior
managements
willingness to carry
out change
Understanding
current
organisation
design
Explain current
performance levels
Once existing
orientation
understood, new
one must be
designed
what of strategic
change, define
products/service
Markets to be
served, way
outputs will be
produced
How
Change plan:
Types, magnitude,
schedule of
change activities
Associated costs
Organisation
Culture
Power and political
issues
STRATEGY
IMPLEMENTA
TION
Alignment issues
Teamwork
Organisational/per
sonal learning
senior managersinitiate actions,
allocate resources,
set goals, give
feedback
Understanding
the Balanced
Scorecard
Organisation Design
Organisation Design
Organisation Design
Organisation Design Model
Model
Organization
Strategy
Strategic
Fit
Organisation
Design
Management
and Information
Systems
Human
Resource
Practices
Design
Fit
Structur
e
Work
Design
(Burns&
Stalker, 2009; Cummings & Worley, 2009)
Mechanistic
Design
Strategy
Structur
e
Cost minimization
minimization
Cost
Formal/hierarchical
Formal/hierarchical
Works best
best in
in stable
stable
Works
environment
environment
Work
Design
Traditional jobs
jobs
Traditional
Traditional work
work group
group
Traditional
Human
Resource
Practices
Selection to
to fit
fit job
job
Selection
Training only
only when
when needs
needs
Training
arise
arise
Job-based pay
pay
Job-based
Management
and Information
System
Command and
and control
control
Command
Centralized decisiondecision Centralized
making
making
Closed, exclusive
Organic Design
Innovation competing
competing
Innovation
on new
new products
products
on
Flat, lean,
lean, and
and fexible
fexible
Flat,
Works best
best in
in dynamic
dynamic
Works
and uncertain
uncertain
and
environment
environment
Enriched jobs
jobs
Enriched
Self-managed jobs
jobs
Self-managed
Selection to
to fit
fit organisation
organisation
Selection
Training is
is continuous
continuous
Training
Skill-based pay
pay
Skill-based
Employee involvement
involvement
Employee
Decentralized decisiondecision Decentralized
making
making
Open, inclusive
Organisation Design
Stages
Organisation design follows
three broad steps (Galbraith et al., as cited
in Cummings and Worley, 2009):
STRATEGIC PLANNING
Organisation
assessment for
framework
Gap analysis
problems to address
STRATEGY
IMPLEMENTATI
ON
Configure design
Putting into place
(practices,
How
structures, systems)
Upper leadership for
overall direction
Members must be
motivated to
Results in design,
component design,
implement
and how to
Stakeholders must
implement
support
Understanding
the Balanced
Scorecard
Culture Change
Elements of Corporate
Culture
(Cummings & Worley, 2009)
1
2
3
4
5
Understanding
Part 2
Continuous
Change
the Balanced
Scorecard
What is Continuous
Change?
Understanding
the Balanced
Scorecard
Self-Designing
Organisations
Self-Designing
Organisations
Application Stages
The self-design approach is described in three stages (Cummings and
Worley, 2009):
STRATEGIC PLANNING
Acquiring
knowledge about
how the
organisations
function
Valuing corporate
values that guide
change process
Diagnosing to
determine what
needs to be
changed
STRATEGY
IMPLEMENTATI
ON
What needs to be
Involves ongoing
refined and modified
cycle of action
for the change
learning: changing
structures and
behaviors,
assessing progress
and making
necessary
modifications
Understanding
the Balanced
Scorecard
Learning
Organisations
Learning Organisations
OL Processes
Organisations may apply learning process to
three types of learning:
1
2
3
3 Types of Learning
How OL Affects
Organisation Performance
Organisationa
l Learning
Organisation
Characteristic
s
Structure
Information
system
Human
Resources
practice
Culture
leadership
Competitiv
Knowledge
e Strategy
Managemen
t
Organisation
Learning
Organisati
Processes:
on
Organisatio
Discovery
Knowledg
n
Invention
e:
Performanc
Production
explicit
e
tacit
Generalizatio
n
Understanding
the Balanced
Scorecard
Built-To-Change
Organisations
Built-To-Change (B2C)
In a rapidly
Organisations
B2C organisations are
designed for change,
not stability. They are
based on design
guidelines that
promote change
capability
in the management,
reward systems,
structure information,
decision processes,
and leadership
(Cummings and Worley,
2009)
changing
environment,
this change
capability can
be a source of
sustained
competitive
advantage
(Cummings and
Worley, 2009).
Selection
practices
Seek quick
learners
wanting to
take
initiative,
desire
professional
Enhance
employee
motivation
level
Key role :
motivating
and
reinforcing
change
Structure
&
Leadership
Internal
Structure and
Leadership
importance
Flat, lean,
flexible
organisation
structures
Shared &
spread
leadership
Information and
Decision
Process
Dynamic flow
of information
& transparency
Moved
throughout
the
organisation,
information
is
transparent
B2C Stages
Lawler and Worley (2006)
The following 5 initiatives can help the transition to a
B2C organisation :
Addresses
organisation
identity
core values,
norms,
beliefs
i.
Intervention
looks outward to
gain insight of
environmental
demands
ii.
Seniors
executives commit
time to think about
future paths
scenario-planning iii.
Skills for
change
developed
among
employees
Organisation
effectiveness
function
created
Members learn
how to apply
change
Employee
empowerment
practices
Periods in
the life of an
organization
Involves
bringing all
prior
processes
together
Change
is
Inevitab
le and
Normal
Traditional
Design Is a
Problem
Human Nature is
Not
The Problem
Competitive
Advantage is
Change
Understanding
Part 3
Transorganizational
the Balanced
Change
Scorecard
Transorganizational
Transorganizati
onal strategies
Change
allows
organisation to
perform tasks
that are too
costly and
complicated for
single
organisations to
perform.
(Cummings and
Worley, 2009)
Improve
innovation
To gain access to
global markets,
technology, etc
3
4
5
To achieve
operational
efficiencies
To grow
revenue
Resource sharing
2. Legal combination
3. Operational combination
Understanding
the Balanced
Scorecard
Strategic Alliance
Interventions
two or more
companies agree
to pool their
resources together
to form a
combined force in
the marketplace
different from
mergers, in which
does not involve
the emergence of a
new combined
entity.
Clarify
business
strategy
Understand
why alliance is
appropriate
Search for
appropriate
partner
Compatible
management
styles, cultures,
etc.
Structuring
partnership
Relational
quality Trust
Issues
Diagnosing
strategic
alliance state
Making
appropriate
adjustments.
1
2
3
4
Understanding
the Balanced
Scorecard
Network Interventions
Identifying
members
(existing/potent
ial).
Face-to-face
meeting
Costs and
benefits
Task
perceptions
Task
performance
organization
Assessing how
network is
performing
Feedback
1
2
3
4
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