Organizational Design and Development

1
Organizational Design and Development

• Making Sense of Organizations

2
Introduction

• Focus on Management and Leadership
• Eliminate myopic leaders
• Need artists and analysts
• Realists and passion
• View organizational problems through 4 distinct
  frames

3
Enrons Image

• The Worlds Leading Company
• Most Admired Company (Fortune 6 Years)
• Annual Growth Rate 68
• 30th on Fortunes 100 Fastest Growing
• Ken Lay Powerful Business Leader

4
Enrons Reality

• Books had been cooked
• Auditors asleep at the switch
• December 2001 Enron collapse historys largest
  corporate bankruptcy
• Stock plunged from 80/Share to .80/Share
• Leadership seemed baffled by free fall
• Jeffrey Skilling control freak/micro manager
  resigned 3 months before fall

5
What is Reality?

• Skilling and Lay brilliant
• Refuge in cluelessness
• Didnt know or didnt understand what was
  happening
• How does a leader know what the real picture is?
• Not insufficient intelligence lack of
  understanding

6
Reframing Organizations

• Reframing is the ability to understand and use
  multiple perspectives to think about the same
  thing in more than one way
• Structural
• Human Resource
• Political
• Symbolic

7
Organizational Big Bang

• Information revolution
• Globalization of economies
• Proliferation of events that undermine
  certainties
• CNN Society planetary village
• Jobs with little meaning beyond pay
• 1995 2001 Customer Satisfaction dropped
• Why is it difficult to manage organizations so
  benefits regularly exceed costs?

8
Organizational Cluelessness

• Theory
• Self-destructive intelligence syndrome
• Pride, arrogance, unconscious needs, self-love,
  ego ----block capacity for empathy
• Truth
• Its how we think and make sense of the world
  around us not IQ or personality
• See no evil common in organizational disasters
• Most disasters because of managerial error
• Dilbert principle Most ineffective workers are
  systematically moved to a place where they can do
  the least damage management.

9
Strategies for Improvement

• Hire a consultant
• Government regulation
• Organizational reengineering
• Networks
• Virtual organizations
• Adhocracies
• Atomized organizations
• Spider plants

10
Theories Become Theology

• What Would Machiavelli Do? The Ends Justify the
  Meanness (Those who get ahead arent smarter,
  just meaner)
• From Worst to First Behind the Scenes of
  Continentals Remarkable Comeback (Burn policy
  manuals and unlock executive suites)

11
Frames and Reframing

• Sort through plethora of material to organize
  thought into four perspective
• Mental models
• Maps,
• Mind-sets
• Schema
• Cognitive lenses
• To help understand world of leadership and
  management in organizations
• World is not made of facts must have mental
  model to begin with

12
Frames and Reframing

• Mental frames are windows and tools for
  navigation
• Not enough to know about a tool must know how
  to use
• The goal is USABLE knowledge

13
Structural (Factory) Sociology and Management
Science

• Ex Govt pieces of puzzles hard to separate
• Goals
• Specialized Roles
• Formal Relationships
• Structures
• Organization Charts
• Division of Labor
• Policies Procedures
• Problems arise when structure is poorly aligned
  with current circumstances
• Reorganization or redesign is needed to remedy

14
Human Resource (Family)Psychology Organization
is family

• Needs of employees
• Feelings
• Prejudices
• Skills
• Limitations
• Learn from others
• Tailor organizations to individuals

15
Political (Jungle)Political Science

• Competition for power and resources
• Conflict rampant
• Differences in needs, perspectives, styles
• Bargaining
• Negotiation
• Coercion
• Compromise
• Coalitions

16
Symbolic (Temple)Social and cultural anthropology

• Tribes
• Theaters
• Carnivals
• Rituals
• Ceremonies
• Stories
• Heroes
• Myths

• NOT
• Rules
• Policies
• Authority

17
Reframing

• Viewing organizations through each lens until
  understanding of the situation becomes clear.
• Diagnose the situation
• Identify challenges
• Strategize to move forward

18
Reframing

• More than one way to handle situation
• Resist that thinking because it justifies failure
• Reframing is liberating
• Interpretations
• Limitations
• Perspectives
• Truths

19
Reframing

• Powerful tool for gaining clarity, generating new
  options, finding strategies that work. (p. 19)