Management Programme

MS-10

ASSIGNMENT
FIRST SEMESTER
2011

MS-10: ORGANIZATIONAL DESIGN,

DEVELOPMENT AND CHANGE

ASSIGNMENT
Course Code : MS - 10
Course Title : Organizational Design, Development and Change
Assignment Code : MS-10/SEM - I /2011
Coverage : All Blocks

Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with.

1) Briefly describe different approaches to organizations and explain the 7Ss Model and it’s relevance.

2) Discuss any four organizational structures and how they contribute to fulfill the demands of new environment. Give
examples.

3) Describe various approaches to job design and their advantages and limitations. Briefly explain how relevant they are in
today’s environment.

4) What is organizational diagnosis? Briefly explain why diagnosis is useful for an organization? Discuss the role of
work-shop and task force in diagnosis and their merits and demerits. Give examples.

5) What is Organizational Development? Describe different stages of organizational development. Discuss any two
interventions and their contribution to organizational development. Give examples.
1) Briefly describe different approaches to organizations and explain the 7Ss Model and
it’s relevance.

Approaches to Organisation and Management

Classical approach to management

• Classical looks at organisations in terms of purpose & formal structure
• Emphasis was placed on the planning of work, technical requirements of the organisation, principles of management, and the
assumption of rational and logical behaviour
• A clear understanding of the purpose of the organisation was essential to understand how the organisation works and how its
working methods can be improved.

Common principles to the classical approach to management

• Principle of coordination – the need for people to act together with unity of action, and need for discipline
• The scalar principle – the hierarchy of organisation, the grading of duties and process of delegation
• Functional principle – specialisation & distinction between different kinds of duties

Criticisms of the classical approach

• Insufficient account taken of personality factors
• Creates organisational structures where people can exercise only limited control over their work environment
• Out-of-date approach
==================================================
SCIENTIFIC MANAGEMENT
There is a best machine for each job, so there is a best working method by which people should undertake their jobs
All job processes should be analysed into discrete tasks & via this management find the ‘one best’ way to perform each task .

Principles of scientific management

• The development of a true science for each person’s work
• The scientific selection, training and development of workers
• Co-operation with workers to ensure work is carried out in prescribed way
• The division of work and responsibility between management and workers

Bureaucracy – the main characteristics

• Tasks are allocated as official duties among the various positions
• An implied clear-cut division of labour and a high level of specialisation
• Uniformity of decisions and actions achieved through formally established systems of rules & regulations
• An impersonal orientation expected from officials in their dealing with clients
• Employment is based on technical qualifications

Bureaucracy – the main features

• Specialisation
• Hierarchy of authority
• System of rules
• Impersonality

Criticism of bureaucracy

• Over-emphasis on rules and procedures, record keeping and paperwork

• Lack of flexibility and stifling of initiative
• Position and responsibilities can lead to officious bureaucratic behaviour
• Impersonal relations can lead to stereotyped behaviour and lack of responsiveness to individual incidents or problems

===================================================
HUMAN RELATIONS APPROACH

• Is based on the consideration of the social factors at work and the behaviour of employees within an organisation
• Particular importance is paid to the informal organisation and the satisfaction of individuals’ needs through groups at work
• Hawthorne experiments acted as a turning point in the development of the Human Relations movement

Human relations approach – the criticisms

• Weak methodology of Hawthorne experiments, including failure to take sufficient account of environmental factors
• Adoption of a management approach, a ‘unitary frame of reference’ and over simplification of theories
• Insufficiently scientific and takes too narrow a view, ignoring the role of the organisation within society.
• ============================================
THE SYSTEMS APPROACH

Attempts to reconcile the classical and human relations approaches

Attention is focused on:
• the total work of the organisation
• the inter-relationships of structures & behaviour
• the range of variables within the organisation
The organisation is viewed within its total environment and the importance of multiple channels in interaction is emphasised.
===================================================
The contingency approach

Views the structure of an organisation and its success as dependent on:

• the nature of tasks that are undertaken
• the nature of environmental influences
There is no one best way to structure or manage organisations - it is dependent on the contingencies of the situation.
================================================
Post modernism
A more recent view of organisations and management
• Rejects a rational, systems approach and accepted explanations of society and behaviour
• Places greater emphasis on the use of language and attempts to portray a particular set of assumptions or versions of the truth
Advantages of different approaches / categorisations
• Provides a setting in which to view the field of management
• Traces the major lines of argument developed by different writers
• Provides a framework in which principles can be set and comparisons of management practice made
• Helps in organisational analysis and identification of problem areas
• Enables managers to select those ideas which best suit the requirements of their job

============================================================
The McKinsey 7S Framework
Ensuring that all parts of your organization work in harmony
How do you go about analyzing how well your organization is positioned to achieve its intended objective? This is a question that has
been asked for many years, and there are many different answers. Some approaches look at internal factors, others look at external
ones, some combine these perspectives, and others look for congruence between various aspects of the organization being studied.
Ultimately, the issue comes down to which factors to study.

The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you:
• Improve the performance of a company;
• Examine the likely effects of future changes within a company;
• Align departments and processes during a merger or acquisition; or
• Determine how best to implement a proposed strategy.
The Seven Elements
The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:
HARD ELEMENTS --STRATEGY/ STRUCTURE/SYSTEMS
SOFT ELEMENTS --SHARED VALUES / STYLE/ STAFF / SKILLS.

“Hard” elements are easier to define or identify and management can directly influence them: These are strategy statements;
organization charts and reporting lines; and formal processes and IT systems.
“Soft” elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However,
these soft elements are as important as the hard elements if the organization is going to be successful.
The way the model is presented in Figure 1 below depicts the interdependency of the elements and indicates how a change in one
affects all the others.
Let’s look at each of the elements specifically:
• Strategy: the plan devised to maintain and build competitive advantage over the competition.
• Structure: the way the organization is structured and who reports to whom.
• Systems: the daily activities and procedures that staff members engage in to get the job done.
• Shared Values: called “superordinate goals” when the model was first developed, these are the core values of the company that
are evidenced in the corporate culture and the general work ethic.
• Style: the style of leadership adopted.
• Staff: the employees and their general capabilities.
• Skills: the actual skills and competencies of the employees working for the company.

How to Use the Model

Now you know what the model covers, how can you use it?
The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually
reinforcing. So, the model can be used to help identify what needs to be realigned to improve performance, or to maintain alignment
(and performance) during other types of change.
Whatever the type of change – restructuring, new processes, organizational merger, new systems, change of leadership, and so on –
the model can be used to understand how the organizational elements are interrelated, and so ensure that the wider impact of
changes made in one area is taken into consideration.
You can use the 7S model to help analyze the current situation (Point A), a proposed future situation (Point B) and to identify gaps
and inconsistencies between them. It’s then a question of adjusting and tuning the elements of the 7S model to ensure that your
organization works effectively and well once you reach the desired endpoint.
Sounds simple? Well, of course not: Changing your organization probably will not be simple at all! Whole books and methodologies
are dedicated to analyzing organizational strategy, improving performance and managing change. The 7S model is a good framework
to help you ask the right questions – but it won’t give you all the answers. For that you’ll need to bring together the right knowledge,
skills and experience.
When it comes to asking the right questions, we’ve developed a Mind Tools checklist and a matrix to keep track of how the seven
elements align with each other. Supplement these with your own questions, based on your organization’s specific circumstances and
accumulated wisdom.
7S Checklist Questions

Here are some of the questions that you'll need to explore to help you understand your situation in terms of the 7S framework. Use
them to analyze your current (Point A) situation first, and then repeat the exercise for your proposed situation (Point B).

Strategy:
• What is our strategy?
• How to we intend to achieve our objectives?
• How do we deal with competitive pressure?
• How are changes in customer demands dealt with?
• How is strategy adjusted for environmental issues?
Structure:
• How is the company/team divided?
• What is the hierarchy?
• How do the various departments coordinate activities?
• How do the team members organize and align themselves?
• Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing?
• Where are the lines of communication? Explicit and implicit?
Systems:
• What are the main systems that run the organization? Consider financial and HR systems as well as communications and
document storage.
• Where are the controls and how are they monitored and evaluated?
• What internal rules and processes does the team use to keep on track?
Shared Values:
• What are the core values?
• What is the corporate/team culture?
• How strong are the values?
• What are the fundamental values that the company/team was built on?
Style:
• How participative is the management/leadership style?
• How effective is that leadership?
• Do employees/team members tend to be competitive or cooperative?
• Are there real teams functioning within the organization or are they just nominal groups?
Staff:
• What positions or specializations are represented within the team?
• What positions need to be filled?
• Are there gaps in required competencies?
Skills:
• What are the strongest skills represented within the company/team?
• Are there any skills gaps?
• What is the company/team known for doing well?
• Do the current employees/team members have the ability to do the job?
• How are skills monitored and assessed?
================================================
#############################################################

2) Discuss any four organizational structures and how they contribute to fulfill the
demands of new environment. Give examples.
ORGANIZATIONAL STRUCTURES

Formal and informal framework of policies and rules, within which an organization arranges its lines of authority and
communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power,
and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. This
structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the
decision making power is concentrated in the top layer of the management and tight control is exercised over departments and
divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying
degrees of autonomy. An organization chart illustrates the organizational structure.
===================
PRINCIPLES OF ORGANIZATIONAL DESIGN
Division of Labour
Departmentalization
Specialization
Authority and Responsibility
Line and staff authority
Authority and power
Contingency Factors
Environment and technology
Knowledge technology: task variability & problem analyzability
Spans of Control
Levels of contro
Centralization and decentralization
Contingency Factors
Knowledge technology:
task variability & problem analyzability
=======================================
EFFECTIVE ORGANIZATIONAL DESIGNS
Use functional structures , when the organization is small, geographically centralized, and provides few goods and services.
---------------------------------------------------------------------
When the organization experiences bottlenecks in decision making and difficulties in coordination, it has outgrown its functional
structure.
Use a divisional structure when the organization is relatively large, geographically dispersed, and/or produces wide range of
goods/services.
Use lateral relations to offset coordination problems in functional and divisional structures.
------------------------------------------------------------------------------------------------------
When the organization needs constant coordination of its functional activities, then lateral relations do not provide sufficient
integration. Consider the matrix structure.
To adopt the matrix structure effectively, the organization should modify many traditional management practices.
==================================================================================
==
ORGANIZATION STRUCTURES
Functional Organizations
Reduces duplication of activities
Encourages technical expertise
-------------------------------------------------
DIVISIONAL ORGANZATIONS
Improves decision making
Fixes accountability for performance
Increases coordination of functions
---------------------------------------------------------

MATRIX STRUCTURES
Reinforces & broadens technical excellence
Facilitates efficient use of resources
Balances conflicting objectives of the organization
--------------------------------------------------------
LATERIAL RELATIONS
Dotted-line supervision
Liaison roles
Temporary task forces
Permanent teams
Integrating managers
=======================================
Organization Design

Organization design is central to an enterprise’s ability to be market driven, adaptive, innovative, and more – in short, to be able to
compete effectively.
The design approach is guided by the following core principles:
Organization design is more than just structure – it is the integration of structure, processes, people, culture, systems and
technology
Strategy is the starting point – organization design must be driven by, and supportive of, overall strategy
Clarity and accountability underpin sound organization design –when good people know what to do and are held accountable, they
achieve results
Transitioning to a new organization end-state requires an integrated approach to change management
=======================================================
Strategic Organization Design

The Need:

Senior organizational leaders are constantly facing the need to restructure their organizations. Changes in leadership, a shift in
strategy, or changing factors within an organization often create the need for reorganizing. Organization design is one of the most
potent tools available to senior managers for shaping the direction of their organizations. It can be a key leverage point for directing
attention and energy to certain critical activities in an organization.
Organizational leaders, however, often lack the tools necessary to help them in making decisions about how to structure their
organizations. Efforts at restructuring are often uneven and unsystematic. Decisions to reorganize are often made with insufficient
information and without a clear process to guide the effort. The result is that reorganizations often fail to produce the desired
effects, leading instead to further confusion or problems within the organization.

The Process:

Strategic Organization Design is a four-phase participative process intended to provide senior leaders with a systematic, step-by-step
method for examining the structure of their organizations. The four-phases are as follows:

Preliminaryπ Analysis
Strategic Designπ
Operational Designπ
π Implementation

The preliminary analysis involves the collection of information necessary for making design decisions. Structured interviews are
conducted focusing on the strategy of the organization, the key tasks being performed and current strengths and weaknesses of the
organization. Operational design involves the structuring of supervisory roles, information flows, and jobs within the context of the
strategic design decisions. Implementation involves managing the transition from the current design to a new design.

==========================================
Strategic Organization Design

The key restructuring decisions are made during the strategic design phase. This phase involves six steps:

Step 1. Identify design criteria.

Step 2. Generate grouping alternatives.
Step 3. Evaluate grouping alternatives against the criteria.
Step 4. Generate linking mechanisms.
Step 5. Conduct an impact analysis.
Step 6. Select a new design.

The goal of the strategic design phase is to develop grouping and linking combinations that best support the strategy and basic work
of the organization. Before any design decisions are made, the management group identifies design criteria - statements about what
the new design will need to be able to do. These statements are reflections of the organization's strategy, its basic tasks, and the
current strengths and weaknesses identified during the preliminary analysis.

Next, several different grouping alternatives are developed by the group and assessed against the design criteria. Linking or
coordinating mechanisms such as liaison roles, integrator departments, etc. are then generated for each of the possible grouping
alternatives. This step depends on the need for information exchange between groups in a particular design. Finally, an impact
analysis is conducted to determine the effect that the new design will have on the organization. At this point a final design can be
selected using the information and ideas generated during each step. Often the final design is a hybrid of several alternatives
considered during the process.

Who Should Be Involved?

This process is highly participative, involving each member of senior leadership staff of an organization, i.e. a Vice President and
each of his or her direct reports. The process draws heavily on the knowledge of the organization that each senior staff member has,
and its success depends on the sharing of their ideas, concerns, and work-related needs. To complete the process usually requires
one to two days time for each member of the senior staff.

The process is not only for those groups who have an immediate need to restructure. Leadership groups who only want to modify
their organization slightly, or who simply want to reexamine their current structure may also benefit from using this process. The
process can help managers to solidify their strategy and ensure that their structure is consistent with it.

Strategic Organization Design Process Outline

Objective: To provide a systematic participative process to help leaders structure their organizations in a way which helps
accomplish the overall business strategy as well as the day-to-day work.
Phase I: Preliminary Analysis
Conduct structured interviews to:
Identify strengths and weaknesses of theϖ existing organization
Clarify issues related to businessϖ strategy and organizational design

Phase II: Strategic Organization Design

Design Criteria: Review information from the preliminary analysisϖ and
generate criteria for a new design
Grouping: Generate severalϖ design options and evaluate against criteria
- Grouping By Output – Product, Service, or Project
- Grouping By Activity – Function, Work Process, Knowledge or Skill
- Grouping By Customer – Market Segment, Customer Need, Or Geography
Linking: Identify information flow requirements, select ways toϖ
facilitate the flow of information to meet the requirements, and
evaluate against the criteria
Impact Analysis: Analyze each optionϖ to determine feasibility given the
existing leadership skills, power relationships, and work environment.

Phase III: Operational Design

ϖ Carry out the operational homework necessary to put organization design
decisions in place
Design work charters, reporting relationships,ϖ information flows, etc.

Phase IV: Implementation

Develop a strategyϖ for implementing the new design
Assess the potential resistance to the newϖ organization
Determine the best way to manage the transition from the oldϖ
organization to the new one.
==============================================
1.FUNCTIONAL ORGANIZATION.
This organization is structured by major functions.
-manufacturing function.
-production function.
-marketing function.
-sales management function.
-distribution functions.
-supply chain function.
-finance/accounting function
-legal function
-human resource function
etc

2.PRODUCT ORGANIZATION.
This organization is structured by product groups.
EXAMPLE LEVER BROS UK

-personal care products.

-food products.
-cosmetics
-peters ice cream
etc etc
===============================
Different types of organizational structure and their relevance

TYPES OF ORGANIZATION

HORIZONTAL ORGANIZATION
Horizontal organizations consist of teams which are organized around business processes and which are responsible for the results
they generate. By flattening portions of the organization and holding the team members accountable for results, it asserts that
decisions will be made more quickly and more consistently with business objectives. This tool seeks to reduce problems with cross-
functional coordination by ensuring that the team members have the necessary skills to have end-to-end accountability for the
process.
Approach
1 The following steps are critical to creating a horizontal organization:
2 Organize teams around the most critical business processes.
3 Give team members ownership of the process and assign a clear process leader.
4 Cross-train team members for the range of skills needed for their process.
5 Tie performance measures directly to customer requirements for the process, and reward individuals for individual and team
contributions.
6 Create career development paths consistent with developing team consistent with developing team skills.
7 Redefine managers' roles to focus on enabling teams to perform through training, coaching, sharing, information, and setting
strategic direction.
Benefits
Horizontal organizations are often used to structure processes which requires extensive cross-functional coordination. This tool
increases the responsiveness and productivity of an organization. Additionally, horizontal organizations can be used to balance local
and global needs within a multinational corporation by creating a network linking the disparate operations.
[these types of organization structure are still very popular with the
''brick and mortar '' type of manufacturing / marketing cos.
these organization are visible and can be seen in types like
-product divisions
-business divisions
-geographical divisions
-functional divisions
etc etc
==========================================###
virtual organization

A virtual organization or company is one whose members are geographically apart, usually working by computer EMAIL and
GROUPWARE while appearing to others to be a single, unified organization with a real physical location.

But there is more to virtual organizations then simply replacing the location where people work.
What makes a virtual organization different?
It removes many barriers - especially that of time and location.
It emphasizes concentrating on new services and products, especially those with intensive information and knowledge
characteristics, rather than concentrating on cost savings made possible by removing the barriers.
It goes beyond outsourcing and strategic alliances and is more flexible in:
1 that it has continuously changing partners,
2 the arrangements are loose and goal oriented,
3 emphasizes the use of knowledge to create new products and services,
4 its processes can change quickly by agreement of the partners.
What are the steps to a virtual organization?
Often the steps here go through:
1 outsourcing mainly to reduce costs where there is some experience in working at a distance, but three is one dominant party and
high certainty of what everyone must do.
2 forming strategic alliances to share the work and gain experience in developing and sharing common goals. Here there is no
dominant party although the parties are fixed. and
3 then becoming virtual organizations to achieve flexibility. Now the partners themselves can quickly change, with greater
emphasis on the use of knowledge to create new and innovative products.
Why virtual?
What are the reasons for organizations becoming virtual. These include:
1 Globalization, with growing trends to include global customers,
2 Ability to quickly pool expert resources,
3 Creation of communities of excellence,
4 Rapidly changing needs,
5 Increasingly specialized products and services,
6 Increasing required to use specialized knowledge

[these types of organization structure are becoming very popular with the
''SERVICE '' type of cos.
these organization are visible and can be seen in types like
-insurance
-financial
-consulting
-professional services
=========================================================###

Boundaryless Organization:
What are the boundaries?
Vertical - Boundaries between layers within an organization
Classic Example: Military organization
Problem: Someone in a lower layer has a useful idea; "Chain of command" mentality
Horizontal - Boundaries which exist between organization functional units.
Each unit has a singular function.
Problem: Each unit maximize their own goals but not the overall goal of the organization
External - Barriers between the organization and the outside world (customers, suppliers, other government entities, special interest
groups, communities).
Customers are the most capable of identifying major problems in the organization and are interested in solutions.
Problem: Lose sight of the customer needs and supplier requirements
Geographic - Barriers among organization units located in different countries
Problem: Isolation of innovative practices and ideas
What is a boundaryless organization?
1 One that makes all of these barriers much more permeable than they are now; loosen boundaries
2 Let information/ideas/resources/energy flow throughout the organization and into others.
3 Can an organization be completely boundaryless? No -- there will always have some hierarchy, functional divisions, geographic
boundaries, limits between organization

BENEFITS

1 Quick Market Intelligence - direct customer feedback .

2 SPEEDY New Product Introduction.
3 RAPID Advanced Manufacturing Techniques.
4 Quality initiatives .
5 Quality focused CULTURE
OPERATION Benefits
1 Speed
2 Flexibility
3 Integration
4 Innovation

[these types of organization structure are with the

'' IT COS '' type of SOFTWARE/ SOLUTIONS cos.
these organization are visible and can be seen in types like
-IT
-ITES
-BPO SERVICES
etc etc
===================================================
Matrix structure

Different structures can be combined together. When one has two parallel
organizational structures this is called a matrix structure. The idea is to combine the
advantages of two structures, but this has the obvious disadvantage of being harder to
coordinate and introducing more potential conflict.
In the past most large companies were centralized – that is, involved structures in
which decisions were taken at the centre or upper levels of organization. Just as there
has been a move to flatter organizations, so there has been a move to decentralized
ones.
**MATRIX STRUCTURE
Reinforces & broadens technical excellence
Facilitates efficient use of resources
Balances conflicting objectives of the organization
Increases power conflicts
Increases confusion & stress for 2-boss employees
Impedes decision making
###############################################################
MECHANISTIC ORGANIZATION
mechanistic organizations are often appropriate in stable environments and for routine tasks and technologies. In some ways similar
to bureaucratic structures, mechanistic organizations have clear, well-defined, centralized, vertical hierarchies of command,
authority, and control. Efficiency and predictability are emphasized through specialization, standardization, and formalization. This
results in rigidly defined jobs, technologies, and processes. The term mechanistic suggests that organizational structures, processes,
and roles are like a machine in which each part of the organization does what it is designed to do, but little else.

The term "organic" suggests that, like living things, organizations change their structures, roles, and processes to respond and adapt
to their environments. Organic structures are appropriate in unstable, turbulent, unpredictable environments and for non-routine
tasks and technologies. For organizations coping with such uncertainty, finding appropriate, effective, and timely responses to
environmental challenges is of critical importance. Organic organizations are characterized by:
1 decentralization
2 flexible, broadly defined jobs
3 interdependence among employees and units
4 multi-directional communication
5 employee initiative
6 relatively few and broadly defined rules, regulations, procedures, and processes
7 employee participation in problem solving and decision making, often interactively and in groups

EMERGING TRENDS
IN ORGANIZATIONAL STRUCTURE DURING THE MODERN GLOBALIZATION
Except for the matrix organization, all the structures described above focus on the vertical organization; that is, who reports to
whom, who has responsibility and authority for what parts of the organization, and so on. Such vertical integration is sometimes
necessary, but may be a hindrance in rapidly changing environments. A detailed organizational chart of a large corporation
structured on the traditional model would show many layers of managers; decision making flows vertically up and down the layers,
but mostly downward. In general terms, this is an issue of interdependence.
In any organization, the different people and functions do not operate completely independently. To a greater or lesser degree, all
parts of the organization need each other. Important developments in organizational design in the last few YEARS have been
attempts to understand the nature of interdependence and improve the functioning of organizations in respect to this factor. One
approach is to flatten the organization, to develop the horizontal connections and de-emphasize vertical reporting relationships. At
times, this involves simply eliminating layers of middle management. For example, some Japanese companies—even very large
manufacturing firms—have only four levels of management: top management, plant management, department management, and
section management. Some U.S. companies also have drastically reduced the number of managers as part of a downsizing strategy;
not just to reduce salary expense, but also to streamline the organization in order to improve communication and decision making.
In a virtual sense, technology is another means of flattening the organization. The use of computer networks and software designed
to facilitate group work within an organization can speed communications and decision making. Even more effective is the use of
intranets to make company information readily accessible throughout the organization. The rapid rise of such technology has made
virtual organizations and boundarlyless organizations possible, where managers, technicians, suppliers, distributors, and customers
connect digitally rather than physically.
A different perspective on the issue of interdependence can be seen by comparing the organic model of organization with the
mechanistic model. The traditional, mechanistic structure is characterized as highly complex because of its emphasis on job
specialization, highly formalized emphasis on definite procedures and protocols, and centralized authority and accountability. Yet,
despite the advantages of coordination that these structures present, they may hinder tasks that are interdependent. In contrast, the
organic model of organization is relatively simple because it de-emphasizes job specialization, is relatively informal, and
decentralizes authority. Decision-making and goal-setting processes are shared at all levels, and communication ideally flows more
freely throughout the organization.
A common way that modern business organizations move toward the organic model is by the implementation of various kinds of
teams. Some organizations establish self-directed work teams as the basic production group. Examples include production cells in a
manufacturing firm or customer service teams in an insurance company. At other organizational levels, cross-functional teams may
be established, either on an ad hoc basis (e.g., for problem solving) or on a permanent basis as the regular means of conducting the
organization's work. Aid Association for Lutherans is a large insurance organization that has adopted the self-directed work team
approach. Part of the impetus toward the organic model is the belief that this kind of structure is more effective for employee
motivation. Various studies have suggested that steps such as expanding the scope of jobs, involving workers in problem solving and
planning, and fostering open communications bring greater job satisfaction and better performance.
MODERN EXAMPLE
Saturn Corporation, a subsidiary of General Motors (GM), emphasizes horizontal organization. It was started with a "clean sheet of
paper," with the intention to learn and incorporate the best in business practices in order to be a successful U.S. auto manufacturer.
The organizational structure that it adopted is described as a set of nested circles, rather than a pyramid. At the center is the self-
directed production cell, called a Work Unit. These teams make most, if not all, decisions that affect only team members. Several
such teams make up a wider circle called a Work Unit Module. Representatives from each team form the decision circle of the
module, which makes decisions affecting more than one team or other modules. A number of modules form a Business Team, of
which there are three in manufacturing. Leaders from the modules form the decision circle of the Business Team. Representatives of
each Business Team form the Manufacturing Action Council, which oversees manufacturing. At all levels, decision making is done on
a consensus basis, at least in theory. The president of Saturn, finally, reports to GM headquarters.
THE FUTURE
Industry consolidation—creating huge global corporations through joint ventures, mergers, alliances, and other kinds of
interorganizational cooperative efforts—has become increasingly important in the twenty-first century. Among organizations of all
sizes, concepts such as agile manufacturing, just-in-time inventory management, and ambidextrous organizations are impacting
managers' thinking about their organizational structure. Indeed, few leaders were likely to blindly implement the traditional
hierarchical structure .
##############################################
3) Describe various approaches to job design and their advantages and
limitations. Briefly explain how relevant they are in today’s environment.
What is "job design"?
Job design refers to the way that a set of tasks, or an entire job, is organized. Job design helps to determine:
1 what tasks are done,
2 how the tasks are done,
3 how many tasks are done, and
4 in what order the tasks are done.
It takes into account all factors which affect the work, and organizes the content and tasks so that the whole job is less likely to be a
risk to the employee. Job design involves administrative areas such as:
1 job rotation,
2 job enlargement,
3 task/machine pacing,
4 work breaks, and
5 working hours.
A well designed job will encourage a variety of 'good' body positions, have reasonable strength requirements, require a reasonable
amount of mental activity, and help foster feelings of achievement and self-esteem.
==============================
How can job design help with the organization of work?
Job design principles can address problems such as:
1 work overload,
2 work underload,
3 repetitiveness,
4 limited control over work,
5 isolation,
6 shiftwork,
7 delays in filling vacant positions,
8 excessive working hours, and
9 limited understanding of the whole job process.
Job design is sometimes considered as a way to help deal with stress in the workplace.
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Is there a difference between job design and workplace design?
Job design and workplace design are often used interchangeably because both contribute to keep the physical requirements of a job
reasonable.
Job design refers to administrative changes that can help improve working conditions.
In comparison, workplace design concentrates on dealing with the workstation, the tools, and the body position that all influence the
way a person does his or her work. Good workplace design reduces static positions, repetitive motions and awkward body positions.
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What are features of "good" job design?
Good job design accommodates employees' mental and physical characteristics by paying attention to:
1 muscular energy such as work/rest schedules or pace of work, and
2 mental energy such as boring versus extremely difficult tasks.
Good job design:
1 allows for employee input. Employees should have the option to vary activities according to personal needs, work habits, and the
circumstances in the workplace.
2 gives employees a sense of accomplishment.
3 includes training so employees know what tasks to do and how to do them properly.
4 provides good work/rest schedules.
5 allows for an adjustment period for physically demanding jobs.
6 provides feedback to the employees about their performance.
7 minimizes energy expenditure and force requirements.
8 balances static and dynamic work.
Job design is an ongoing process. The goal is to make adjustments as conditions or tasks change within the workplace.
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What are common approaches to job design?
Achieving good job design involves administrative practices that determine what the employee does, for how long, where, and when
as well as giving the employees choice where ever possible. In job design, you may choose to examine the various tasks of an
individual job or the design of a group of jobs.
Approaches to job design include:
Job Enlargement: Job enlargement changes the jobs to include more and/or different tasks. Job enlargement should add interest to
the work but may or may not give employees more responsibility.
Job Rotation: Job rotation moves employees from one task to another. It distributes the group tasks among a number of employees.
Job Enrichment: Job enrichment allows employees to assume more responsibility, accountability, and independence when learning
new tasks or to allow for greater participation and new opportunities.
Work Design (Job Engineering): Work design allows employees to see how the work methods, layout and handling procedures link
together as well as the interaction between people and machines.
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What are the overall goals of job design?
Goals can be in many difference areas and include:
Task Variety
To alleviate boredom, avoid both excessive static body positions and repetitive movements. Design jobs to have a variety of tasks
that require changes in body position, muscles used, and mental activities.
Two methods are job enlargement and job rotation. For example, if an employee normally assembles parts, the job may be enlarged
to include new tasks such as work planning, inspection / quality control, or maintenance. Alternatively, the tasks may include
working in the same department, but changing tasks every hour. For example, in a laundry facility employees can rotate between
various stations (sorting, washer, dryer, iron, etc) as long as it provides for a change in physical or mental expenditure.
Work Breaks / Rest Breaks
Rest breaks help alleviate the problems of unavoidable repetitive movements or static body positions. More frequent but shorter
breaks (sometimes called "micro breaks") are sometimes preferable to fewer long breaks.
During rest breaks, encourage employees to change body position and to exercise. It is important that employees stretch and use
different muscle groups. If the employee has been very active, a rest break should include a stationary activity or stretching.
Allowance for an Adjustment Period
When work demands physical effort, have an adjustment period for new employees and for all employees after holidays, layoffs, or
illnesses. Allow time to become accustomed to the physical demands of work by gradually "getting in shape." Employees who work in
extreme hot or cold conditions also need time to acclimatize.
Provide Training
Training in correct work procedures and equipment operation is needed so that employees understand what is expected of them and
how to work safely. Training should be organized, consistent and ongoing. It may occur in a classroom or on the job.
Vary Mental Activities
Tasks should be coordinated so that they are balanced during the day for the individual employee as well as balanced among a group
of employees. You may want to allow the employee some degree of choice as to what types of mental tasks they want to do and
when. This choice will allow the employee to do tasks when best suited to their 'alertness' patterns during the day. Some people may
prefer routine tasks in the morning (such as checklists or filling in forms) and save tasks such as problem solving until the afternoon,
or vice versa.
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BEFORE A JOB DESIGN IS DONE,
A JOB ANALYSIS SHOULD BE CARRIED OUT.
Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of
these duties for a given job. Job Analysis is a process where judgements are made about data collected on a job.
There are two key elements of a job analysis:

1. Identification of major job requirements (MJRs) which are the most important duties and responsibilities of the position to be
filled. They are the main purpose or primary reasons the position exists. The primary source of MJRs is the most current, official
position description.
2. Identification of knowledge, skills and abilities (KSAs) required to accomplish each MJR and the quality level and amount of the
KSAs needed. Most job analyses deal with KSAs that are measurable, that can be documented, and produce meaningful differences
between candidates. Typically, possession of KSAs is demonstrated by experience, education, or training. The goal of KSAs is to
identify those candidates who are potentially best qualified to perform the position to be filled; they are most useful when they
provide meaningful distinctions among qualified candidates. Source documents for KSAs may be the position description, HRM
standard qualifications and job classification standards.
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Job Analysis should collect information on the following areas:
1 Duties and Tasks The basic unit of a job is the performance of specific tasks and duties. Information to be collected about these
items may include: frequency, duration, effort, skill, complexity, equipment, standards, etc.
2 Environment This may have a significant impact on the physical requirements to be able to perform a job. The work environment
may include unpleasant conditions such as offensive odors and temperature extremes. There may also be definite risks to the
incumbent such as noxious fumes, radioactive substances, hostile and aggressive people, and dangerous explosives.
3 Tools and Equipment Some duties and tasks are performed using specific equipment and tools. Equipment may include protective
clothing. These items need to be specified in a Job Analysis.
4 Relationships Supervision given and received. Relationships with internal or external people.
5 Requirements The knowledges, skills, and abilities (KSA's) required to perform the job. While an incumbent may have higher
KSA's than those required for the job, a Job Analysis typically only states the minimum requirements to perform the job.
6 What does or should the person do?
7 What knowledge, skill, and abilities does it take to perform this job?
8 What is the result of the person performing the job?
9 How does this job fit in with other jobs in the organization?
10 What is the job’s contribution toward the organization’s goals?

The process may seek to obtain information about the:

1 work
2 worker
3 context within which the job exists
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Worker Functions. The relationship of the worker to data, people, and things.
Work Fields. The techniques used to complete the tasks of the job. Over 100 such fields have been identified. This descriptor also
includes the machines, tools, equipment, and work aids that are used in the job.
Materials, Products, Subject Matter, and/or Services. The outcomes of the job or the purpose of performing the job.
Worker Traits. The aptitudes, educational and vocational training, and personal traits required of the worker.
Physical Demands. Job requirements such as strength, observation, and talking. This descriptor also includes the physical
environment of the work.
1 skills
2 abilities
3 knowledge
4 tasks
5 work activities
6 work context
7 experience levels required
8 job interests
9 work values/needs
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To properly perform a job analysis, the individual performing the job should be observed and interviewed. In addition, co-workers
and other individuals with similar and related jobs should be interviewed. It is imperative that job tasks be recorded with videotape,
pictures, and/or sketches. Also, if the job is performed in a sequence, the work completed before and after the particular job should
be documented.
A. Purpose
What are the job duties necessary for job performance? The number of job duties is usually less than ten essential activities, which
are necessary to the job.
B. Job Setting
1. Work-site
What equipment is used in the work setting?
How is the workstation arranged?
How is the work organized?
3. Work Activities
What worker movements are necessary to accomplish the job? If there is another way to perform a job function, note this (lifting
with an assistive device, typing with an alternative input device).
What are the subject's anthropometric data? Document the subject's stature; eye, shoulder, and knee height; arm reach; leg length;
and waist level. Anthropometric data are used to specify appropriate reach and space requirements for various populations.
What types of personal protective equipment (PPE) are used? Document any gloves, arm guards, hardhats, safety glasses,
respirators, or shoes.
B. Workstation
1. Office
Are the space dimensions within the workstation sufficient? The top of the computer monitor should be level with the operator's eyes
and positioned at a comfortable viewing distance. (This is task specific.) Repositioning with an adjustable monitor arm is an option.
The monitor should be placed directly in front of the chair and over the center of the workstation knee well. Screen height should be
between 33 and 42 inches, the angle of the monitor screen should be between 0 and 7 degrees, and viewing distance should be
between 18 and 28 inches.
Is glare diffused with panel diffusers and/or glare screens? Task lighting with a dimmer control should help, and adjustable blinds
can taper excessive sunlight.
2. Industrial
Is the pace setting appropriate? Document what body parts remain idle and what body parts are in steady motion.
Are the "proper" tools available? Tools that are pneumatic; tools that can be used in either hand; tools with pistol shaped handles for
power grips; tools with round edges, padded handles, spring activation, and space between closed handles will reduce palm stress
and grip force. Newer tools equipped with tool wraps and tool balancers/positioners are also helpful.
3. Service
Is traffic flow designed to most effectively meet the needs of workers, contractors, and customers? Document the most frequently
traveled areas and whether goods are stored in an accessible place.
Is anti-fatigue matting available in areas where individuals must stand for long periods of time? If available, document whether the
matting is properly fixed to the floor.
Is a preventive maintenance program in place for all equipment?
4. Health Care
Are laundry and food carts pushed rather than pulled? Do carts have an oval or round push bar around waist height? Are powered
push/pull devices available for use with beds and heavy or multiple carts? Some manufactures have a motorized option available on
a hospital bed.
Have job task analysis been performed to identify awkward postures and motions in all jobs? Examination of past injury reports can
identify areas of concern to address first. Look for tasks involving reaching, bending, prolonged static postures, forceful exertions,
and heavy lifting.
5. General
Does the job include repeated and sustained exertions? Document whether the job entails stagnant postures for prolonged periods,
repetitive motions, and whole body exertions (lifts, pushes, pulls, etc.).
What are the general environmental factors? Document noise levels, ventilation, flooring material, lighting, air quality, and
temperature variations, specifically when the worker is exposed to temperatures greater than 75 degrees or less than 50 degrees.
C. Work-site
1. Spacing
Are extra electrical outlets for workers using powered assistive technology available?
Are walkways blocked? Obstructed walkways should be opened to eliminate the potential for trips and falls. At least one clear path of
travel (without stairs) at least 36 inches wide, except for a minimum of 60 inches in two-way halls and 32 inches through doorways
should be provided. Allow a minimum of 60 inches of clear, level floor space in front of and behind a door and 18 inches on the latch
side of the door.
2. Flooring
Are proper treads, handrails, and detectable warnings installed?
Have changes in floor level been identified with visual and texture contrast?
Are door closers adjusted so that from an open position of 70 degrees, the door will take at least 3 seconds to move to a point 3
inches from the latch? (This is measured to the leading edge of the door.)
Do doorways provide at least 32 inches of level clearance?
Do the inside and outside of doors provide 60 inches of clear floor space and 18 inches to the latch side?
Are materials stored in an accessible area, between 15 inches and 48 inches above the floor?
Are hard-to-reach materials labeled? Materials should have visible labels and color codes.
Are electrical outlets accessible? Electrical outlets should be provided at least 15 inches above the floor.
Are items placed in the most "accessible" place possible? Position storage for pushing rather than pulling, pulling rather than
carrying, carrying rather than lowering, and lowering rather than lifting. Make storage available for intermediate transporting and
transferring of materials.
5. Other
Are accessible drinking fountains provided?
Are employees properly trained in ergonomic principles? Training should include proper lifting techniques, adequate maintenance and
correct equipment use, and neutral postures.
Are job tasks varied? An individual should alter positions every 45 minutes, e.g., distribute tasks between right and left hands,
alternate between intensive fine motor and gross motor manipulation, and change between sitting and standing.
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Approaches to Job Design USING SOCIO TECHNICAL SYSTEMS

There are three important approaches to job design, viz.,
Engineering approach,
Human approach and
The Job characteristic approach.
Engineering Approach
The most important single element in the Engineering approaches, proposed by FW Taylor and others, was the task idea, “The work
of every workman is fully planned out by the management at least one day in advance and each man receives in most cases
complete written instructions, describing in detail the task which he is to accomplish . . . This task specifies not only what is to be
done but how it is to be done and the exact time allowed for doing it.” The principles offered by scientific management to job design
can be summarised thus:
l Work should be scientifically studied. As advocated fragmentation and routinisation of work to reap the advantages of
specialisation.
l Work should be arranged so that workers can be efficient.
l Employees selected for work should be matched to the demands of the job.
l Employees should be trained to perform the job.
l Monetary compensation should be used to reward successful performance of the job.
These principles to job design seem to be quite rational and appealing because they point towards increased organisational
performance. Specialisation and routinisation over a period of time result in job incumbents becoming experts rather quickly, leading
to higher levels of output. Despite the assumed gains in efficiency, behavioural scientists have found that some job incumbents
dislike specialised and routine jobs.

Human Relations Approach

The human relations approach recognised the need to design jobs in an interesting manner. In the past two decades much work has
been directed to changing jobs so that job incumbents can satisfy their needs for growth, recognition and responsibilility, enhancing
need satisfaction through what is called job enrichment. One widely publicised approach to job enrichment uses what is called job
characteristics model and this has been explained separately in the ensuing section.
Two types of factors, viz. (i) motivators like achievements, recognition, work itself, responsibility, advancement and growth and (ii)
hygiene factors (which merely maintain the employee on the job and in the organization) like working conditions, organisational
policies, inter-personnel relations, pay and job security. The employee is dissatisfied with the job if maintenance factors to the
required degree are not introduced into the job. But, the employee may not be satisfied even if the required maintenance factors are
provided. The employee will be satisfied with his job and he will be more productive if motivators are introduced into the job content.
As such, he asserts that the job designer has to introduce hygienic factors adequately to reduce dissatisfaction and build motivating
factors. Thus, THE emphasis is on the psychological needs of the employees in designing jobs.

The Job Characteristics Approach

The Job Characteristics Theory states that employees will work hard when they are rewarded for the work they do and when the
work gives them satisfaction. Hence, they suggest that motivation, satisfaction and performance should be integrated in the job
design. According to this approach, any job can be described in terms of five core job dimensions which are defined as follows:
(a) Skill variety: The degree to which the job requires that workers use a variety of different activities, talents and skills in order to
successfully complete the job requirements.
(b) Task identity: The degree to which the job allows workers to complete whole tasks from start to finish, rather than disjointed
portions of the job.
(c) Task significance: The degree to which the job significantly impacts the lives of others both within and outside the workplace.
(d) Autonomy: The degree to which the job allows workers freedom in planning and scheduling and the methods used to complete
the job.
(e) Feedback: The degree to which the job itself provides workers with clear, direct and understandable knowledge of their
performance.
All of the job dimensions impact workers psychologically. The first three dimensions affect whether or not workers view their job as
meaningful. Autonomy determines the extent of responsibility workers feel. Feedback allows for feelings of satisfaction for a job well
done by providing knowledge of results.
The core job dimensions can be combined into a single predictive index called the Motivating Potential Score. Its computation is as
follows:
Motivating Skill variety + Task identity + Task significance
potential = x Autonomy x Feedback
score
Jobs that are high on motivating potential must be high at least in one of the three factors that lead to meaningful work and must be
high in both autonomy and feedback and vice versa. These three critical psychological states lead to the outcome such as (a) high
internal work motivation, (b) high growth satisfaction, (c) high quality work performance, (d) high general job satisfaction, (e) high
work effectiveness and (f) low absenteeism and turnover . The model says that internal rewards are obtained by an individual when
he learns that he personally has performed well on a task that he cares about.
IN TODAY’S BUSINESS ENVIRONMENT, JOB DESIGN HAS BECOME AN IMPORTANT ELEMENT OF OPERATION
MANAGEMENT.

THE IMPACT OF GLOBALIZATION HAS LIFTED THE URGENCY OF THE JOB DESIGNING MORE IMPORTANT.

1.Duties and Tasks

11 Environment This may have a significant impact on the physical requirements to be able to perform a job. The work
environment may include unpleasant conditions such as offensive odors and temperature extremes. There may also be definite risks
to the incumbent such as noxious fumes, radioactive substances, hostile and aggressive people, and dangerous explosives.
12 Tools and Equipment Some duties and tasks are performed using specific equipment and tools. Equipment may include
protective clothing. These items need to be specified in a Job Analysis.
13 Relationships Supervision given and received. Relationships with internal or external people.
14 Requirements The knowledges, skills, and abilities (KSA's) required to perform the job. While an incumbent may have higher
KSA's than those required for the job, a Job Analysis typically only states the minimum requirements to perform the job.
15 What does or should the person do?
16 What knowledge, skill, and abilities does it take to perform this job?
17 What is the result of the person performing the job?
18 How does this job fit in with other jobs in the organization?
19 What is the job’s contribution toward the organization’s goals?

The process may seek to obtain information about the:

4 work
5 worker
6 context within which the job exists
=================================================
Worker Functions. The relationship of the worker to data, people, and things.
Work Fields. The techniques used to complete the tasks of the job. Over 100 such fields have been identified. This descriptor also
includes the machines, tools, equipment, and work aids that are used in the job.
Materials, Products, Subject Matter, and/or Services. The outcomes of the job or the purpose of performing the job.
Worker Traits. The aptitudes, educational and vocational training, and personal traits required of the worker.
Physical Demands. Job requirements such as strength, observation, and talking. This descriptor also includes the physical
environment of the work.
10 skills
11 abilities
12 knowledge
13 tasks
14 work activities
15 work context
16 experience levels required
17 job interests
18 work values/needs
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