Orginazational Development

7/29/2019 Orginazational Development

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Organizational Development

Dr Mansoor Ahmad



Textbook

• Daft, R. L.,

Murphy, J. and

Willmott, H.

(2010).

http://www.amazon.co.uk/gp/product/images/1844809900/ref=dp_image_0?ie=UTF8&n=266239&s=books



Main Course Objective

• To enable you to analyse how and why

different kinds of organizations are more

or less effective in achieving particular

objectives.

• The course focuses on the key

components of organisations that together

generate distinctive collectivecompetences and capabilities.

• It focuses on the meso level.



Levels of Organizational Analysis

Micro - individuals and groups in organisations

(organisational behaviour, HRM)

Meso - structures, systems and strategiesof organisations (organisation

design)

Macro - organisations and markets in socialsystems and the global economy

(MACC, strategy)



What I Am Expecting from You

• Logical analysis: clearly identify main issues of a

case; formulate coherent recommendations that

tackle any problems that you have identified

within a case.• Appropriate use of concepts to help you in your

analysis.

• Appropriate use of case studies in exam

answers

• I do not expect to see large parts of the textbook

repeated in exam answers.



Objectives of Today’s Session

• To highlight the ways in which

organizational design links to strategy and

the external environment

• To discuss those links



Question

• Looking at the following statement from

Google’s website, can you identify what its

strategy might be?

• In groups, discuss your thoughts.



Google’s Philosophy • Google became successful precisely because we

were better and faster at finding the right answer than other search engines at the time.

• But technology has come a long way since then,and the face of the web has changed.

Recognizing that search is a problem that willnever be solved, we continue to push the limits of existing technology to provide a fast, accurate andeasy-to-use service that anyone seekinginformation can access. We've also taken the

lessons we've learned from search to tackle evenmore challenges.

• Source: http://www.google.com/corporate/tenthings.html

http://www.google.com/corporate/tenthings.html

http://www.google.com/corporate/tenthings.html



Questions

• Google underpins this strategy with some

core principles.

• What issues/problems are raised for

managers as a result of these issues?

• In other words, what ‘things’ must

managers deal with in meeting those

principles?

• (Some of) these ‘things’ are at the core of

organization design.



Google’s Principles I

These core principles guide our actions.

• 1. Focus on the user and all else will follow.

• Since the beginning, we've focused on providing the bestuser experience possible. Whether we're designing a

new Internet browser or a new tweak to the look of thehomepage, we take great care to ensure that they willultimately serve you, rather than our own internal goal or bottom line.

• 2. It's best to do one thing really, really well.

• We do search. With one of the world's largest researchgroups focused exclusively on solving search problems,we know what we do well, and how we could do it better.Our dedication to improving search helps us apply whatwe've learned to new products, like Gmail and GoogleMaps



Key Managerial Issues in Organisation

Design and Change Management

Google principle 1:

• How to manage relationships with customers, andinvestors

• How to integrate and control operational units for

strategic goals• How to allocate, coordinate and control tasks

Google principle 2:

• Which activities and skills to keep in the organisationand which to outsource

• How to attract, select, reward and retain employees



Google’s Principles II

• 9. You can be serious without a suit.

• Our founders built Google around the idea thatwork should be challenging, and the challenge

should be fun. We believe that great, creativethings are more likely to happen with the rightcompany culture. There is an emphasis on teamachievements and pride in individualaccomplishments that contribute to our overallsuccess. Our atmosphere may be casual, but asnew ideas emerge in a café line, they are traded,tested and put into practice with dizzying speed.




Design

Google principle 9:

• How to attract, select, reward and retain

employees

• How to allocate, coordinate and control tasks

• How to group activities and employees into

departments, divisions and subsidiaries

• How to integrate and control operational unitsfor strategic goals




Design

1. How to allocate, coordinate and control tasks

2. How to attract, select, reward and retainemployees

3. How to group activities and employees intodepartments, divisions and subsidiaries

4. How to integrate and control operational unitsfor strategic goals

5. Which activities and skills to keep in the

organisation and which to outsource6. How to manage relationships with suppliers,

customers, competitors, investors and other organisations



ORGANISATIONS AS OPEN SYSTEMS



COMPONENTS OF WORK

ORGANISATIONS

1. Operating Core - those who transform the basic inputs

into outputs

2. Middle Line - those who administer and supervise

operators

3. Technostructure - those who standardise how work is

carried out and controlled

4. Support Staff - those who provide support services for

the organisation outside the operating

workflow 5. Strategic Apex - those who allocate resources, manage

relations with the environment and

determine strategies and goals – the

dominant coalition



DIMENSIONS OF ORGANISATIONS

• STRUCTURALFormalisation

Specialisation

Standardisation

Authority Hierarchy

Complexity

Centralisation

Skill Level

Personnel Ratios

• SYSTEMIC (CONTEXTUAL)SizeTechnology

Environment

Goals and Strategy

Culture



Questions

• Think back to Google.

• How would you describe some of its

structural dimensions?

• How do these link to its strategy and/or is

external environment?



W. L. Gore Wal-Mart State arts agency



THE CONTINGENCY FRAMEWORK



KEY ORGANISATIONAL COMPONENTSPRIMARY TASK INDIVIDUALS FORMAL CO-

ORDINATION

INFORMAL RULES AND

PROCESSES

DEFINITIONBASIC ACTIVITY OF

ORGANISATION

CHARACTERISTICS

OF HUMAN

RESOURCES

FORMAL

AUTHORITY AND

CONTROL

STRUCTURES

EMERGENT NORMS,

PROCEDURES AND

NETWORKS OF

INFLUENCE AND

COMMUNICATION

CRITICAL CHARACTERISTICS

TYPES OF SKILL

AND KNOWLEDGE

REQUIRED

KNOWLEDGE AND

SKILLS

GROUPING OF

FUNCTIONS,

SUBUNITS AND

DEPTS.

LEADER BEHAVIOUR

TYPES OF

REWARDS WORK

CAN PROVIDE

NEEDS AND

PREFERENCES

PERFORMANCE

AND MONITORING,

EVALUATION AND

REWARD SYSTEM

INTER- AND INTRA-

GROUP RELATIONS

UNCERTAINTY OF

WORK

PERCEPTIONS AND

EXPECTATIONS

CO-ORDINATION

PROCEDURES

INFORMAL WORK

NORMS AND

RELATIONS

LIMITATIONS ON

PERFORMANCE

INHERENT IN WORK

DEMOGRAPHIC

AND CULTURAL

CHARACTERISTICS

PERSONNEL

POLICIES AND

PROCEDURES

COMMUNICATION AND

INFLUENCE PATTERNS

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