HR304 – ORGANIZATIONAL DESIGN

Conflict, Decision Making and

Organizational Design

Name: SHREYA SAHA

Univ. Roll: 12500922012

Submitted to: Sarmistha Ghatak

Content

• Types of Organizational Conflict

• Factors Influencing Organizational Conflict
• Causes of Organizational Conflict
• Ways to Manage Conflicts in Organization
• Decision-Making Process
• Types of Decisions
• Decision-making Models
• Different biases in Decision Making
• Organizational Design
• Types of Organizational Design
• Seven Phases Of Organizational Design
Types of Organizational Conflict
• Relationship Conflict: The conflict arising out of
interpersonal tension among employees, which is
concerned with the relationship intrinsically, not
the project at hand.

• Task Conflict: When there is a discord, among

members regarding nature of work to be
performed is task conflict.

• Process Conflict: Clashes among the team

members due to the difference in opinions, on
how work should be completed, is called process
conflict.
Factors Influencing Organizational Conflict
1.Unclear Responsibility: If there is lack of clarity, regarding who is responsible for which section of a
task or project, conflict takes place. And, to avoid this situation, the roles and responsibility of the team
members should be stated clearly and also agreed upon by all.

2.Interpersonal Relationship: Every member of an organization, possesses different personality, which

plays a crucial role in resolving conflict in an organization. Conflicts at the workplace, are often caused by
interpersonal issues between the members of the organization.

3.Scarcity of Resources: One of the main reason for occurrence of conflict in an organization is the
inadequacy of resources like time, money, materials etc. due to which members of the organization
compete with each other, leading to conflict between them.

4.Conflict of Interest: When there is a disorientation between the personal goals of the individual and the
goals of the organization, conflict of interest arises, as the individual may fight for his personal goals, which
hinders the overall success of the project.
Causes of Organizational Conflict
• Managerial Expectations: Every employee is expected to meet the targets, imposed by his/her
superior and when these expectations are misunderstood or not fulfilled within the stipulated time,
conflicts arises.

• Communication Disruption: One of the major cause of conflict at the workplace is disruption in the
communication, i.e. if one employee requires certain information from another, who does not respond
properly, conflict sparks in the organization.

• Misunderstanding: Misunderstanding of information, can also alleviate dispute in organization, in the

sense that if one person misinterpret some information, it can lead to series of conflicts.

• Lack of accountability: If in a project, responsibilities are not clear and some mistake has arisen, of
which no member of the team wants to take responsibility can also become a cause of conflict in the
organization.
Ways to Manage Conflicts in Organization

1.Handle the conflict positively.

2.Formation of official grievance procedure for all members.
3.Concentrate on the causes rather than their effect, to assess conflicts.
4.Parties to conflicts should be given an equal voice, irrespective of their position, term or political influence.
5.Active participation of all the parties to conflict can also help to counter it
Decision-Making Process
Types of Decisions
Despite the far-reaching nature of the decisions in the previous example, not all decisions have major
consequences or even require a lot of thought. For example, before you come to class, you make
simple and habitual decisions such as what to wear, what to eat, and which route to take as you go to
and from home and school. You probably do not spend much time on these mundane decisions.
These types of straightforward decisions are termed programmed decisions; these are decisions
that occur frequently enough that we develop an automated response to them.

However, decisions that are unique and important require conscious thinking, information gathering,
and careful consideration of alternatives. These are called nonprogrammed decisions. For example,
in 2005, McDonald’s became aware of a need to respond to growing customer concerns regarding
foods high in fat and calories. This is a nonprogrammed decision because for several decades,
customers of fast-food restaurants were more concerned with the taste and price of the food, rather
than the healthiness. In response, McDonald’s decided to offer healthier alternatives, such as
substituting apple slices in Happy Meals for French fries and discontinuing the use of trans fats.
Rational decision-making model
The rational decision-making model involves identifying the criteria that will have the biggest impact on
your decision's outcome and then evaluating possible alternatives against those criteria.
When to use this model?
The rational decision-making model is best employed when you have numerous options to consider and
plenty of time to evaluate them. One example of a scenario where this model might prove useful is
choosing a new hire from a pool of candidates.
Bounded rationality decision-making model
Sometimes, taking action quickly and choosing a "good enough" option is better than getting bogged down
in searching for the best possible solution. The bounded rationality decision-making model dictates that you
should limit your options to a manageable set and then choose the first option that meets your criteria
rather than conducting an exhaustive analysis of each one. Going with the first option that meets your
minimum threshold of requirements is a process known as "satisficing." While this may not be the best
process for every decision, a willingness to satisfice can prove valuable when time constraints limit you.
When to use this model?
The bounded rationality decision-making model is best employed when time is of the essence. It's the best
model to use when inaction is more costly than not making the best decision. For example, suppose your
company has encountered an issue causing extended downtime. In that case, you may want to use the
bounded rationality decision-making model to quickly identify the first acceptable solution since every
minute wasted is costly.
Vroom-Yetton decision-making model
The Vroom-Yetton decision-making model presents seven "yes or no" questions for a decision-maker to
answer followed by five decision-making styles for them to choose from. It's the most complex decision-
making model on our list, requiring decision-makers to utilize a decision tree to arrive at the right decision-
making style based on their answers to the model's questions.
When to use this model
The Vroom-Yetton decision-making model was specifically designed for collaborative decision-making and
is best employed when you involve multiple team members in the decision-making process. In fact, one of
the main objectives of this model is to determine how much weight should be given to the input from a
leader's subordinates.
Intuitive decision-making model
Have you ever heard that it's often best to go with your gut? While making decisions based only on instinct
may not seem like the best idea to those who prefer a more careful and logical approach, there are plenty of
instances where going with your gut is the best way forward.
When to use this model
The intuitive decision-making model probably shouldn't be the first model you turn to when you need to make
a decision, but there are instances where it can be useful. We've mentioned a couple already, including cases
where there isn't enough information for you to make a more informed decision and instances where your
own experience is more reliable than the available information.
The intuitive decision-making model can also be useful in cases where you don't have a lot of time and need
to make a decision quickly.
The recognition primed model
The recognition primed model is similar to the intuitive decision-making model in that it relies heavily on
the decision-maker's experience and instinct. However, the recognition primed model is a little more
structured than intuitive decision-making
When to use this model
Like the intuitive decision-making model, the recognition primed model works best in instances where:

 You don't have a lot of information available.

 You trust your instinct and experience.
 Time constraints are a factor.
Different biases in Decision Making
Preventing biases from getting in the way of your decision-making skills starts with identifying the types of
biases you need to be aware of, including:
 Confirmation bias: Confirmation bias entails favouring or focusing on information that confirms your
pre-existing beliefs and ignoring information that runs counter to those beliefs. While it's important to
trust your own experience and beliefs, you don't want to subconsciously Favor information just because
it aligns with what you already believe to be true.

 Availability bias: Information that is easily accessible in your memory often gets undue weight, and
this is known as availability bias. One example of availability bias is overestimating the likelihood of an
event just because you can remember a similar event happening to you in the past.

 Survivorship bias: Survivorship bias entails focusing only on the solutions that have generated
success in the past. While it's important to consider past results, ignoring possible solutions just
because they are unproven will place unnecessary constraints on your decision-making process.

 Anchoring bias: Anchoring bias is the tendency to "anchor" yourself to the first piece of information
you learn. Information should not get extra weight just because you have known about it for longer, and
new information can be equally important to consider.
Organizational Design
Organization design is a process for structuring and running organizations. It takes a holistic approach to the
work done in an organization including team formations, shift patterns, reporting, decision-making,
communication methods and much more. The purpose of organization design is to help an organization
excel at what it does and help meet its goals. That can mean everything from a large-scale reorganization to
subtle shifts in structures and systems.

Organization design often comes into play as an organization is growing or, conversely, if it’s downsizing.
Either of these shifts requires a company to reexamine how it does business. Other reasons that prompt
organization design includes a change in leadership, strategy or the marketplace in which the organization
operates.

Why organization design is implemented is to improve how the organization works. That can mean
everything from pinpointing inefficiencies to making better, faster decisions. Organization design can improve
the quality of the goods or services that an organization produces, increase profits and strengthen
relationships with its customer base. Internally, it can make for safer working conditions, a happier, more
motivated workforce and better prepare the business for future challenges.
Types of Organization Design

Hierarchical Structure
This is a pyramid-shaped organizational chart with the CEO or manager on top and each level descending in the chain of
command until the base is entry-level employees. This defines authority, shows everyone to whom they report and
clarifies the career path.

Functional Structure
As in the hierarchical structure, those with more authority and responsibility are placed at the top of the chart and it
then descends by responsibility. However, the organization is determined by skillset and function in the company, with
each department managed independently.

Horizontal or Flat Structure

The opposite of a hierarchical structure, the horizontal structure is popular with startups and other organizations in
which there is not much distance between management and employees. It encourages less supervision and more
involvement from everyone in the organization. Employees feel ownership and take more responsibility. It fosters
communication and speeds the delivery of new ideas.
Divisional Structure
As the name implies, each division in the organization controls its own resources as if an independent company
within a larger organization. Each division has its own marketing, sales and IT teams. The structure lends itself to
larger organizations and allows them to be more flexible, quickly responding to market changes and customer needs
with a customized approach.

Matrix Structure
This grid-like structure is great for cross-functional teams that are created to serve special projects. This structure
helps connect otherwise disparate parties. The matrix structure also helps managers easily find team members for
whatever project they’re leading and provides a more dynamic view of the organization.

Team-Based Structure
As the name suggests, this structure organizes employees by teams. This is against what’s considered to be a
traditional hierarchical structure and is ideal for a more problem-solving, collaborative environment where employees
have more control. This can boost productivity and performance, breaking down the silo mentality in favor of more
transparency.
Network Structure
This structure works well for organizations that don’t have their services centralized. They work with vendors,
subcontractors, freelancers, offsite locations and satellite offices. To bring some order to this seemingly chaotic
mix, a network structure helps open communications between those involved over an old-fashioned hierarchy. It
visualizes the various onsite and offsite relationships in the organization, fosters a more flexible environment and
helps everyone understand the workflow so they can collaborate more freely. It can still be complex, though, and
makes it difficult to know who has authority over what.
SEVEN PHASES OF ORGANIZATIONAL DESIGN

Develop Charter
• Establish Project Charter
• Conduct snapshot assessment
• Educate leaders
• Commission design team
• Begin change management strategies

Create Strategy
• Scan external environment
• Assess current mission, vision, values, strategy, goals
• Establish core ideology
• Set future vision, strategy
• Create balanced scorecard
Assess
• Analyze processes, structure, systems, and culture
• Report out to steering team
• Continue change management strategies
Design
• Establish design guidelines
• Define business model
• Redesign processes, structure, systems and culture
• Verify the design
• Report out to steering team
Transition
• Commission implementation team
• Flesh out design recommendations
• Create detailed implementation plans
• Train people in new roles/skills
Implement
• Go live
• Monitor progress
• Implement new organizational structure
• Continue change management strategies

Evaluate & Renew

• Assess performance against balanced scorecard
• Make adjustments to design
• Continue training leaders and employees
THE END