6

THE LEVELS OF
ORGANISATIONAL
DEVELOPMENT
FORMATION 1

Distinctive features of the formation level

Few formal goals or Little formal planning Little structure or formal
a measurements b system / strategy – most c management
strategic decisions made
by owner(s)

No formal responsibilities No performance and Lack of organizational

d for managers or e efficiency indicators or f and individual
employees regulatory processes development strategies

FORMALISATION 2
The distinctive features of the formalisation level

Growth of formalized The development of

a policies, procedures, b normative and
structures and systems regulatory processes

More formalised Information systems

c structure and d developed to collect and
management analyse performance and
efficiency data

The formalization and Bureaucratic

e delineation of tasks / f administrative apparatus
roles increases

Increased volume of Barriers force employees

management functions h and managers to defend
(control, coordination local goals and
and meetings) – increase indicators which often
of number of managers conflict with those of the
organization’s
3 INTEGRATION

The distinctive features of the integration level

a Greater integration of Centralised management /

b control increases expenses
decreases competitiveness
a Management and quality control

b Environmental awareness (client needs / external forces)

Competitiveness and
c profitability reduced until
Integration of logistics functions which leads to greater
the integrations start to
c centralised control allow for economies of scale.

EXPANSION 4
The distinctive features of the expansion level

a b
Inter-departmental Insufficient delegation of
competition to achieve authority to the ‘lower’
their own goals and to management levels which
obtain greater share of slows decision making and the
centralised resources organisational responsiveness
to external factors

c d
No real organisation Internal competitive culture
wide corporate with departmental cultures
culture (principles, driving behaviour and
values and policies) thinking.

No system for measuring loyalty, satisfaction

e or emotional commitment of employees
5 COORDINATION

The distinctive features of the coordination level

c e
a b d

Bureaucratic Lack of motivation People can’t work in People feel like Organisational
management systems ways which increase ‘a number’ structure and
emotional and functional
intellectual responsibility prevents
engagement further development
because of slow and
overly bureaucratic
decision-making

SELF-ORGANISATION AND SELF-DEVELOPMENT 6

The distinctive features of the self-organisation and self-development level

A reduction in central Roles not jobs. One Roles defined by the Self-organising circles Each circle/team is
control and person can fulfil a work teams which or matrix teams assigned clear areas of
management series of roles change as accountability and a
requirements change clear purpose

A structured approach
to creating change,
flexibility and giving
voice
Processes for aligning
teams and circles
around operational
needs and for
collective and
integrated work
Blanket authority to Processes for aligning
take action to perform teams and circles
the work required around operational
needs and for
collective and
integrated work

EACH LEVEL NEEDS A DIFFERENT RESPONSE

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Rudenko, A. A., Antipov, D. V., & Iskoskov, M. O. (2016). Ensuring Business Continuity of A Machine Building Enterprise Through
Reference Organisation Development of Manufacturing System. International Journal of Applied Engineering Research, 11(5), 3211-3215.