Org Design

1
Org Design

• Process of coordinating the structure elements
• Range of theories
• Classical org theory assume one best way to
  design/structure org (early 1900s)
• Tall hierarchy best w/ formal authority
• Neoclassical theory human relations focus
  w/goal of ee satisfaction
• Flatter structures w/decentralization

2
Org Design

• Contingency Approaches Lawrence Lorsch (1969)
  now most accepted org design
• Design depends on orgs environment
• Including economy, competitors, geography,
  suppliers, workforce
• Studies comparing orgs in stable v unstable
  environments resulted in models of mechanistic
  v organic orgs

3
Org Design

• Mechanistic Orgs stable environments with
  little change in product, market, or technology
• Allows specialization of tasks given that people
  have time to develop their expertise
• Organic Orgs unstable environments
• Little specialization need broad knowledge to
  deal w/changing conditions
• Little authority rely on participative decisions
• Effectiveness results when form matches
  environment

4
Mintzbergs Theory

• Orgs composed of 5 basic elements which one is
  dominant determines most effective design for
  that situation
• Operating Core ees who do the basic work related
  to product/service
• Strategic Apex top-level execs who run it
• Middle Line mid-managers who go-between
  operating core strategic apex

5
Mintzberg (cont.)

• Technostructure specialists who standardize org
  systems
• Support Staff indirect support services
• Mintzberg specifies 5 designs based on which of
  the 5 groups dominates
• 1) Simple structure small, informal,w/one person
  in charge
• 2) Machine bureaucracy specialized, power at
  top can be routine/boring

6
Mintzberg (cont.)

• 3) Professional Bureaucracy power in operating
  core (univ.) but still some rules coming from
  strategic apex
• 4) Divisional Structure autonomous units
  organized by central headquarters middle line
  has most power
• 5) Adhocracy informal, often team-based support
  staff has power

7
Org Change and Org Development

• Ch 16

8
Org Change and OD

• Org Change in structure, technology or people
• 1st order minor, incremental changes
• 2nd order major changes, all levels
• Org Development methods used to implement org
  change
• Change required due to demographics, regulations,
  competition, technology

9
Group Discussion

• Situation A a new e-mail system is introduced at
  a large university that will replace the practice
  of transmitting memos on paper.
• Situation B A very popular employee who has been
  w/the org for many years is retiring. Hell be
  replaced by someone new from outside.

10
(cont.)

• Discuss major impediments to change for each
  situation
• Identify ways to overcome these impediments
• Does the nature of the situation seem to call for
  different ways of overcoming the impediments?

11
Lewins Force Field Analysis Model

• developed 50 yrs ago, still prevalent today

Refreeze
Unfreeze
Desired State

• To unfreeze, produce imbalance betw driving and
  restraining forces.
• To refreeze, new structure must support and
  reinforce new system to avoid slipping back to
  old ways.

12
Driving Restraining Forces

• To increase driving forces
• Create urgency for change (crisis)
• Ees need to know about competitive threats, orgs
  financial problems
• Customer-driven change (complaints)
• To reduce restraining forces
• Communicate (increase procedural justice)
• Train ees so they can use new skills
• All else fails, coercion (Continental Airlines
  firing majority of senior execs).
• Best when need quick change

13
Employee Resistance to Change

• Main reasons for creating resistance
• Direct costs (need to see change as positive, not
  loss of power/status)
• Saving face in political situations want to
  prove decision or person was wrong
• Fear of unknown make change explicit
• Incongruent org systems rewards dont encourage
  new behaviors

14
Refreezing

• Through org structure changes
• Through org reward systems consistent with new
  changes
• Lewins model effectively describes change
  process, but overlooks
• Change agents
• Diffusing change

15
(cont)

• Change agents person who forms communicates
  change, then builds commitment (facilitator)
• Some orgs rely on external consultants, but
  typically internal people
• Transformational leaders
• Diffusion of change often works best if start
  w/pilot project, then spread.

16
Evaluating Change

• Using Kirkpatricks training evaluation model
• Reactions did ees like the change?
• Learning what was acquired from the change?
  (new skills learned?)
• Behavior what changes in job behavior occurred?
  (individual-level)
• Outcomes what changes in productivity occurred?
  (org-level)
• Reactions measure restraining forces, learning
  reflects change itself, behavior measures
  refreezing success.

17
OD Interventions

• OD implements org change w/emphasis on org
  effectiveness
• Tries to improve org capability to solve problems
  cope with change
• Client-consultant relationship (process
  consultation)
• Facilitator observes group, then works w/them
  (conflict mgmt)

18
OD Interventions

• Total Quality Movement (TQM)
• Developed by Deming (U.S.) in 50s, exported to
  Japan, then back to U.S. in 80s
• Focus on managing process of work and challenge
  ees to constantly improve quality
• Teach stats to measure variance in quality
• Emphasis on immediate feedback requality
• Continuous improvement (kaizen) is key

19
OD Interventions (cont.)

• Management by Objectives (MBO) develop specific
  org goals
• Goals mutually set w/ ee involvement
• Includes evaluation component
• Quality of Work Life (QWL) encourage ee
  participation to improve sat
• Could include job enrichment
• Use of quality circles to fix specific problems

20
OD Interventions (cont.)

• Survey feedback employee opinion surveys with
  unit/dept follow-up meetings to solve problems
• The process raises ee expectations that change
  will occur, so mgmt must commit

21
OD Assessment

• Does it work?
• Work best if use combination of interventions
  w/mgmt support
• Difficult to evaluate given multiple causes of
  any change (need quasi-experiments)
• Ethical concerns
• Ethics of behavior interventions from ee
  perspective? (coercion)

22
Culture OD

• Values/goals of OD fit U.S. culture (democratic)
• Other cultures expect leaders to make decisions
  w/o ee input
• Cultural diffs in resistance to change affect OD
  success (England, China value tradition U.S.
  values change)

23
Trice Beyer (1993)

• Describe change along 4 dimensions
• Pervasiveness of org activities that will be
  affected by change
• Magnitude distance betw old and new
• Innovativeness degree to which new ideas are
  unprecedented
• Duration how long it will take and how
  permanent it will be

24
Trice Beyer

• Institutionalization of change
• takes years, may continue to see residue of old
  culture
• Includes removal of prominent people who
  represent old culture
• Symbolic message
• Removes resistance