151211 handout sessions 11-20
DESCRIPTION
Organizational BehaviorTRANSCRIPT
Organiza(onal Analysis
Sessions 11-‐20
For Internal Circula(on Only. Not to be posted on the internet.
How Does an Organization Create Value?
• Value creation takes place at three stages: input, conversion, and output – Inputs: include human resources,
information and knowledge, raw materials, money and capital
– Conversion: the way the organization uses human resources and technology to transform inputs into outputs
– Output: finished products and services that the organization releases to its environment
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Uncertainty – open system – survival Certainty – closed system – goal achievement
Technology Environment
Role of a Manager
• Ensuring buffering of core ac(vi(es to control the transforma(on process
Measuring Effectiveness
• What parameters should be used?
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Ways to Organizational Effectiveness
Goal Accomplishment
Resource Acquisition
Strategic Constituencies
Satisfaction
Internal Processes
Structure-‐Context Alignment
STRUCTURE
CHARACTERISTICS Age & Size Culture
Growth/ decline
ENVIRONMENT Compe((ve Dynamics
TASK Technology processes
STRATEGY Key success factors
PEOPLE Iden(ty
Personali(es
Technology
• Combina(on of skills, knowledge, abili(es, techniques, materials, machines, computers, tools, and other equipment that people use to convert or change raw materials (material, informa(on or people) into valuable goods and services
Technical Complexity
• Technical complexity: the extent to which a produc(on process can be programmed so that it can be controlled and made predictable – High technical complexity: exists when conversion
processes can be programmed in advance and fully automated
– Low technical complexity: exists when conversion processes depend primarily on people and their skills and knowledge and not on machines
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Classification of Technology
• Woodward – Unit – small batch manufacturing technology – Mass – large-batch manufacturing – Process production – continuous-production
process • Perrow
– Task variability – number of excep(ons, problems or novel events that occur in the department's work
– Task analyzability - extent to which the work is mechanical, clear cut, and follows an objec(ve, computa(onal procedure
Technology Classifica(on An
alyzability
Variability
CRAFT NONROUTINE
ROUTINE ENGINEERING
Classification of Technology
• Thompson – Long linked technology (sequen(al interdependence)
– Media(ng technology (pooled interdependence) – Intensive technology (reciprocal interdependence)
Technology Analysis
• Technical complexity • Rou(neness of work • Standardiza(on of inputs/ outputs • Standardiza(on of transforma(on processes • Task variability • Task analyzability To maximize the informa(on available and reduce uncertainty
The Organiza(onal Environment
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Environment
• Task Environment – the elements of an organization’s environment that are related to its goal attainment
• Environmental Uncertainty – the amount and rate of change in the organization’s environment
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Sources of Uncertainty in the Environment
• Environmental complexity: the strength, number, and interconnectedness of the specific and general forces that an organiza(on has to manage, the heterogeneity/ range of ac(vi(es an organiza(on has to manage
• Environmental dynamism: stability-‐instability, absence of pa`ern, unpredictability in the environment
• Environmental richness/ munificence/ capacity: Extent to which environment can support sustained growth
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Size
• Measured in number of employees • Formaliza(on, specializa(on and standardiza(on greater in larger organiza(ons
• As size increases, complexity increases
Strategy and the Environment
• Organiza;onal strategy: pa`ern of decisions and ac(ons taken to use core competences
• Core competences: the skills and abili(es in value crea(on ac(vi(es
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Strategy and Structure
• Innova(on Strategy -‐ requires flexibility of organic structure
• Cost-‐Minimiza(on Strategy -‐ seeks efficiency and stability of mechanis(c structure
• Imita(on Strategy -‐ combines the two structures to maintain (ght control and low cost while crea(ng organic subunits
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Miles and Snow’s Strategy Typology
• Prospector – Values crea(vity, risk-‐taking, and innova(on
• Defender – Efficiency orienta(on; centralized authority and (ght cost control
• Analyzer – Balances efficiency and learning; (ght cost control with flexibility and adaptability
• Reactor – No clear organiza(onal approach; design characteris(cs may shih abruptly depending on current needs
Interorganiza(onal Strategies for Managing Resource Dependencies
• Two basic types of interdependencies cause uncertainty
– Symbio;c interdependencies: interdependencies that exist between an organiza(on and its suppliers and distributors
– Compe;;ve interdependencies: interdependencies that exist among organiza(ons that compete for scarce inputs and outputs
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Interorganiza(onal Strategies
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Managing Symbiotic Interdependencies
Managing Competitive Interdependencies
Organiza(onal Analysis: Structural Lens
Differentiation and Integration are Opposing Structural Forces
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Differentiation Fragments the organization
through specialization of labor
Integration
Pulls the organization together through the coordination of
specialties
Differen(a(on Horizontal differentiation
Degree of differentiation between organizational subunits.
Vertical differentiation The difference in authority and responsibility
in the organizational hierarchy
Spatial differentiation Geographic dispersion of an organization’s offices,
plants and personnel
Integration
Horizontal differentiation • Liaison roles • Task forces • Integrator positions • Teams
Vertical integration • Hierarchical referral • Rules and procedures • Plans and schedules • Positions added to the organization structure • Management information systems
Structural Op(ons
• Func(onal • Product • Divisional • Amorphous etc..
The Five Phases of Growth
Organiza(onal Design Principles
Identifying Key Activities
Allocating Activities to
Units
Organization
Environment Enacted Environment
Response
Ensuring Cross-Unit
Coordination
Ensure that Allocation and Coordination
Works
FIT
Grouping Linking Aligning
• boundaries of subunits around activities within the organization
• bu i ld ing in fo rma t ion f lows be tween interdependent units within the organization, and with key external organizations
• ensuring that subunits and people have the resources and motivation to carry out the activities assigned them in linking and grouping
Grouping
Linking
Aligning
Common Grouping Options – Self Contained Organizational Designs (Era 1)
Options: • Function (Activity) • Business Unit (Product or technology) • Customer (Market, geography, or segment) Hybrid Structures: • Matrix • Front end/Back end (Customer interface/R&D,
Manufacturing…Support Staffs)
Common Grouping Options –Eras 2 & 3
• Era 2 -‐ Horizontal Organizations with Team and Process Based Emphasis
• Era 3 – Organizational boundaries open up – Hollow organization (amorphous organization) – Modular organization – Virtual organization
9 Tests Fit tests ( provide ini;al screening alterna;ve designs , structure support towards
organiza;on)
Good Design (help to refine company design,
balancing empowerment & Control) Helps to establish hierarchy, helps to
design work smoothly
The market advantage test The specialist culture test
The paren(ng advantage test The difficult link tests
The peoples test The redundant hierarchy test
The feasibility test The accountability test
The flexibility test
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Organizational Culture
What is Culture?
a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization
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Vacuous Cultures
Strong Cultures
Warring Factions Weak Cultures Level of A
greemen
t
Low High
Four-‐Culture Typology High
Low
Level of Intensity
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How Organizational Cultures Form
Top management
Philosophy of
organization’s founders
Selection criteria
Socialization
Organizational culture
How employees Learn Culture • Personal Enactment • Ceremonies and Rites • Stories
– About the boss – About getting fired – About relocating – About promotions – About crisis situations – About status considerations
• Rituals • Symbols
Learning Organiza(ons
The Nature of Organizational Learning (cont.)
• Types of organizational learning – Exploration: organizational members
search for and experiment with new kinds or forms of organizational activities and procedures • Demonstration projects – knowing why
– Exploitation: organizational members learn ways to refine and improve existing organizational activities and procedures • Small experiments – knowing how
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Levels of Organizational Learning
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Knowledge Management
• Knowledge management: a type of IT-enabled organizational relationship that has important implications for both organizational learning and decision making
– Involves sharing and integrating of expertise within and between functions and divisions through real-time, interconnected IT
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Knowledge Management (cont.)
• Codification approach: knowledge is carefully collected, analyzed, and stored in databases where it can be retrieved easily by users who input organization-specific commands and keywords
– Suitable for standardized product or service
• Personalization approach: IT designed to identify who in the organization might possess the information required for a custom job
– More reliance on know-how, insight, and judgment to make decisions
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Organiza(onal Change
Types of Changes
• Planned Vs Unplanned
• Incremental/ Evolu(onary Vs Radical/ Revolu(onary
• Individual/Group/ Organiza(onal Change
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Types of Change in Organizations
• Evolutionary change: change that is gradual, incremental, and narrowly focused
• Revolutionary change: change that is sudden, drastic, and broadly focused
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Levin's Three-Step Change Process
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Lewin’s Change Model
Changing • Provides new information, new behavioral models, or new ways
of looking at things • Helps employees learn new concepts or points of view • Role models, mentors, experts, benchmarking results, and
training are useful mechanisms to facilitate change
Refreezing • Helps employees integrate the changed behavior or
attitude into their normal way of doing things • Positive reinforcement is used to reinforce the desired change • Coaching and modeling help reinforce the stability of
change
• Unfreezing • Creates the motivation to change • Encourages the replacement of old behaviors and attitudes with
those desired by management • Entails devising ways to reduce barriers to change • Creates psychological safety
Unfreezing
• Two forces – Driving forces – Restraining forces
• Push for status quo
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Freezing – Ins(tu(onalize Change
• Turn students into teachers • Build human capital • Iden(fy metrics, measures, and milestones
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Kotter’s Eight Steps for Leading Organizational Change
Create and implement a communication strategy that consistently communicates the new vision and strategic plan
4) Communicate the change-vision
Create a vision and strategic plan to guide the change process
3) Develop a vision and strategy
Create a cross-functional, cross-level group of people with enough power to lead the change
2) Create the guiding coalition
Unfreeze the organization by creating a compelling reason for why change is needed
1) Establish a sense of urgency
Description Step
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Kotter’s Eight Steps for Leading Organizational Change
Reinforce the changes by highlighting connections between new behaviors and processes and organizational success
8) Anchor new approaches in the culture
The guiding coalition uses credibility from short-term wins to create change. Additional people are brought into the change process as change cascades throughout the organization
7) Consolidate gains and produce more change
Plan for and create short-term “wins” or improvements
6) Generate short-term wins
Eliminate barriers to change, use target elements of change to transform the organization
5) Empower broad-based action
Description Step
Dealing with Resistance to Change
• Communica(on – details – ra(onale
• Par(cipa(on in the process – ownership – commitment
• Empathy and support
Characteris(cs of a Change Manager • Are accepted by others as trustworthy and competent
• Can mo(vate others to achieve the change vision, able to align and engage
• Have a big-‐picture perspec(ve • Have a clear, compelling vision of the change they want, Can ar(culate it
• Can iden(fy other change agents • Able to eliminate barriers that interfere with the change ini(a(ve
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