part ii of ion development

8/3/2019 Part II of ion Development

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PART II OF ORGANISATIONDEVELOPMENT


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PROCESS OF ORGANIZATION

Interventions Followings are the approaches : 1. Organization Confrontation Meeting to encourage

members to identify and confront pressing issues, identify

problems, set priorities and action targets. Stages of Confrontation Meeting A. Group meeting of all involved is called to identify

problems about the work environment and theeffectiveness of organization.

B. Different Groups consisting of members from differentdepartments are formed. Top management has separategroup.

C. Groups to be open, honest and to work hard inidentifying problems.


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Interventions D. OD expert moves from Group to Group encouraging

them to have open and free and frank discussion.

E. Each group reports the problems it has identified ina plenary session.

F. The problems listed by different groups, arecategorized to eliminate duplication.

G. Each group list priorities and tactical plans of actionwith regard to their problems, to the plenary session.

H. Follow up meetings are organized, each groupleader presents their progress report.


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Interventions 2. Inter-Group Relations Interventions OD Expert to

diagnose and understand Inter-group relations as

a. groups must work

b. work with other groups to accomplish goals

c. groups often create problems and raisedemands

d. quality of relationship among groups affectorganizational effectiveness

Problems could be at two levels microcosm groups orinter-group conflict.


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Interventions Microcosm Group consists of a small number of

individuals who reflect the issue and solve theirproblem.

Stages - a. identify an issue, b. convene the group, c.provide group training in problem solving, d. addressthe issue diagnose, design, implement and evaluate

changes, e., dissolve the group write final report anddissolve.


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Interventions Resolving Inter-Group Conflict a. obtain

agreement to two groups having conflict to meet, b.time set for two groups to meet, c. state the purpose ofthe meeting, d. each group to list the causes ofconflict, e. two groups meet together and present theirlist of problems, f. compare the lists and look forreasons for differences, g. resolve the differences, h.two groups asked to develop specific plans of action forsolving problems, i. follow up meeting of the twogroups.


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Interventions 3. Large Group Intervention to focus on issues which affect

the entire organization.

Stages

I. Compelling Meeting Theme focal point for change.

II. Appropriate participants invite all those who have stake intheme senior manager, supplier, trade union leaders,customers, government agencies, employees from differentdepartment, genders, etc.

III. Conducting the Meeting open systems method a. mapthe current environment surrounding the organization, b. assessthe organization response, c. create a realistic plan ofexpectations, d. identify core mission, e. compare present withideal future and prepare action plan for reducing the gap.


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RESTRUCTURING ORGANIZATIONS Restructuring of organization involves structural

design changes and revising the division of work as perrequirements.

I. Structural Design organization structuredescribes how the organization is divided into sub-units and how these sub-units are coordinated for task

completion. Structure should be designed to fit thefive factors:

a. environment, b. organization size, c., technology,

d. organization strategy, e. world wide operations.


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FORMS OF STRUCTURE 1. Functional Departments Task specialized, self-

contained functional units.

Advantages i. promotes skill specialization, ii.Reduces duplication of scarce resources and usesresources full time, iii. Enhances career developmentfor specialists in large departments, iv. Exposesspecialists to other specialists within same speciality, v.improves performance as superiors share expertisewith their subordinates.


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FORMS OF STRUCTURE Disadvantages i. emphasises routine tasks, which

encourages short-time horizons., ii. Fosters limitedcapabilities for top management positions, iii. Reducescooperation between departments, iv. Multiplies theinterdepartmental dependencies, v. observesaccountability for overall outcomes.

Relevant for i. stable certain environment, ii. Smallsize of firm, iii. Routine technology, inter-dependencewithin function, iv. Goals of efficiency and technicalquality


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FORMS OF STRUCTURE Divisional Structure product or self-contained unit

structure, most of the resources and functionsnecessary to accomplish a specific objective are set up

as a division under a divisional head/manager.Advantages recognises sources of inter-

departmental dependencies, ii. Fosters an orientationtoward overall outcomes and clients, iii. Allows

diversification and expansion of skills and training, iv.Ensures accountability by department managers, v.promotes delegation and responsibility, vi. Heightensdepartmental cohension and involvement in work.


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FORMS OF STRUCTURE Disadvantages i. may use skills and resources

inefficiently, ii. Limits career advancement byspecialists to move their department, iii. Puts multiplerole demands on people and so creates stress, iv. Maypromote departmental objective as opposed toorganizational objectives.

Relevant for i. unstable and uncertain environment,ii. Large size, iii. Technological inter-dependenceacross functions, iv. Goals of product specializationand innovation.


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FORMS OF STRUCTURE The Matrix Structure It is a structure in which each employee

reports to both a functional or divisional manager and to aproject or group manager. It creates dual lines of authority andcombines functional and product departmentalization.

Advantages i. it focuses attention on a single project for timelycompletion, ii. Useful to organizations carrying out projectsfrom small to large, iii. Services of specialists better utilized.

Disadvantages i. there is no unity of command, ii. Informalrelations along with formal relations, iii. Conflict betweenfunctional groups, iv. Project manager does not have lineauthority.

Relevant for when organization is expanding and needs to beflexible and technical oriented and organizations which areprimarily engaged in carrying out projects specially on turn-keybasis.


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FORMS OF STRUCTURE The Project Organization when an organization

has to carry out large projects of long duration andeach project is autonomous project unit.

Advantages i. concentration attention to complexproject, ii. Project manager to be generalist, iii. Thereis unity of command.

Disadvantages i. lack of clarity with regard toresponsibilities.

Relevant for Long term and complex projects wherethe employees have to have unity of command.


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FORMS OF STRUCTURE Process or Horizontal Structure this structure is

created around Process and not aroundfunctions/task/geography, e.g., a manager responsiblefor all activities falling under a process, procurement -supply, purchase, logistics, distribution, technicalsupport.

Team members are trained to perform one anothersjobs, effectiveness is measured by end of processperformance and it eliminates many of thehierarchical and departmental boundaries.


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FORMS OF STRUCTURE Advantages i. focuses resources on customer

satisfaction, ii. Improves speed and efficiency, iii. Adapts toenvironment change rapidly, iv. Reduces boundaries

between departments, v. increases ability to see total workflow, vi. Lowers cost because of less overhead structure.

Disadvantages i. can threaten middle managers andstaff specialists, ii. Duplicates scarce resources, iii. Requires

new skills and knowledge, iv. May take longer to makedecisions in teams.

Relevant for customer oriented goals, for large sizedorganizations, and changing environment.


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FORMS OF STRUCTURE The Network Structure this structure manages the diverse, complex

and dynamic relationships among multiple organizations or units, eachspecializing in a particular business function or task.

Four basic types of Networks are:

1. internal market network when units are independent andthey trade with each other as if they were separate companies.2. A vertical market network separate units for raw material to

finished goods but each unit as separate company.3. An inter-market network alliances among a variety of

organizations in different markets. Companies joining to produce their

products jointly.4. An opportunity network temporarily form a group oforganizations for a single purpose.


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FORMS OF STRUCTURE Advantages i. enables highly flexible and adaptive

response to dynamic environments, ii. Creates a best of thebest organization to focus on customer and market needs,iii. Enables each organization to use its competency, iv.

Permits rapid global expansion, v. can produce synergisticresults.

Disadvantages i. managing relations with autonomousorganizations difficult, ii. Motivating employees to leaveautonomy, iii. May give partners access to

knowledge/technology, iv. Long term relations difficult tomaintain. Relevant for highly uncertain environment, highly

uncertain technology, world-wide operations.


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DOWNSIZING Downsizing refers to interventions aimed at reducing the

size of the organization through layoffs, attrition, re-deployment or early retirement or by reducing the numberof units, managerial levels or through outsourcing.

This has given rise to contingent workforce. Downsizing could be due to:

1. mergers and acquisitions2. Decline of organization in terms of sales,

market share3. New organization structure4. Belief that smaller organization is better.

The impact of downsizing has been in many cases negative


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RE-ENGINEERING The specialization leads to mass production which cannot

be responded to changing trends quickly and also leadsboredom for employees.

Re-engineering addresses these problems by breakingdown specialized work units into more integrated, cross-functional work processes and make it more responsive tochanges in competitive conditions, customer demands,

product life cycles, and technology. It re-designs organization structure, business processes,

changes the technology, with downsizing and work design.


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EMPLOYEE INVOLVEMENT Employee involvement is a broad term and includes

empowerment, participative management, workdesign, industrial democracy and quality of work life.

Employee Involvement (EI) is to enhance theparticipation, commitment and productivity ofemployees.

EI includes four elements power, information,knowledge and skills and rewards which have powerfuleffects on productivity and employee well being.


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EMPLOYEE INVOLVEMENTApplication of EI ways of involving employees.

1. Parallel Structures involve employees in resolvingcomplex problems or build adaptability in the formalorganization structure. It provides members with analternative setting in which to address problems andpropose innovative solutions.

Parallel structures are Parallel Organization, QualityCircles, Union-management negotiations.


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EMPLOYEE INVOLVEMENT Parallel Organization when the employees different

levels are involved in solving problems or suggestingnew ideas, as members of a committee/forum.

Quality Circles a Japanese concept where workers areinvolved in solving quality problems of theirsection/department.

Union-management Negotiation the disputesbetween the employees and the management areresolved through mutual negotiations.


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EMPLOYEE INVOLVEMENT The success of parallel structures depends on:

a. members should have access to knowledge and skills

b. Must be part of the organization -both vertically andhorizontally.

c. Members must be fully acquainted with taskrelevant information.

d. top management support in implementing theirsuggestions and also provide financial support


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EMPLOYEE INVOLVEMENT 2. High Involvement Organization (HIQ) it creates

organizational conditions that support high levels ofemployee participation. Under this, the focus is on

creating decentralized organizations rather than creatingseparate organizations like in Parallel structure.

Features of HIQ 1. f lat, lean organisation structure, 2. jobdesigns which provides discretion, task variety andmeaningful feedback, 3. open information systems, 4.

career systems, 5. involvement of team members inselection, 6. training, 7. reward system based onperformance and acquisition of new skills, 8. job security,8. physical layouts of the offices/factory.


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EMPLOYEE INVOLVEMENT 3. Total Quality Management, also known as Continuous

process improvement, continuous quality and six sigma.

TQM becomes more effective if employees are involved. It

represents a long-term effort to orient all the activities oforganization towards quality.

Deming and Juran are fathers of this movement.

Stages of TQM 1. gain long term senior management

commitment, 2. train members in quality methods, 3. startquality improvement project, 4. measures progress, 5.rewarding accomplishment link rewards to improvementin quality.


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WORK DESIGNWork design refers to creating jobs and work groups

that generate high levels of employee fulfilment andproductivity.

There are three approaches to Work Design.

A. Engineering approach well defined jobs, workmethods to be used and work flow among individuals.

It is less OD approach as it ignores workers social andpsychological needs.


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WORK DESIGN B. The Motivational approach associated with

Hertbergs two factor theory hygenic andmotivational factors. Hackman & Oldhams core job

dimensions under this approach. Basically thisapproach suggests approach to motivate employeesthrough job enlargement and job enrichment.

Stages of job enrichment diagnosis of the situation,

forming natural work units, combining tasks,establishing customer relationships, vertical loading(reduce gap between hierarchies), and openingfeedback channels.


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WORK DESIGN C. The Socio- technical Systems approach (STS) It is based on that the organization is a combined social plus

technical and is open in relation to its environment. Thus itcombines man with machines and system interacts with its

environment to survive and develop. Stages self managed work teams are responsible for a

complete task/product/service/large plant and team sets its owngoals.

Team performance and member satisfaction comes from teamfunctioning which depends upon i. team task design, ii. Teamprocess intervention, iii. Organization support systems.

Stages sanctioning the design efforts, diagnosing how tooperate, generating appropriate designs, specifying supportsystems, implementing and evaluating the work designs,continual change and improvement.


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PERFORMANCE MANAGEMENT Performance Management is linked with the business

strategy, employee involvement and work placetechnology. It has the following parts:

1. Goal setting individual & group performance goalsthrough MBO approach. The steps are:

i. work group involvement, ii. Joint manager-subordinates goal setting, iii. Establishment of action

plans for goals, establishment of criteria of success, iv.Review, and v. maintenance of records of the same

part ii of ion development

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