ORGANIZATIONAL BEHAVIOUR - II

INTRODUCTION

Dr. Ankita Tandon

WHAT IS AN
ORGANIZATION?
A METAPHOR FOR IMI
THE ORGANIZATION AS A…. (MORGAN)

Machine

Flux &
Transformation Organism

Psychic
Brain
prison

Politics Culture
MACHINE

• Routine, efficient, reliable, predictable

• Industrial revolution, division of labour, military

• Scientific management

• Weber – bureaucracy
ORGANISM

• Open systems

• Adaptation to environment – different species and their ecology

• Organizational life cycle

• Individual/group/organizational levels (molecule/cell/complex organisms...)

• Elton Mayo – informal organization, employee needs, motivation

• Org structure, strategy 🡪🡪 environment relationship, different types of

organizations

• Contingency theory

• Population ecology
BRAIN

• Information processing
• Decision making
• Org design – uncertainty & information processing
• Memory, learning & learning organization
• Organizational design elements - The holographic organization
- Build the whole into parts
- Importance of redundancy
- Requisite variety
- Learn to learn
CULTURE

• The structure of society –

impact on work culture and
vice versa

• Values and beliefs

• Cultures and sub-cultures

• Organizational design
elements linked to culture
POLITICS
• Systems of government and governance – rules and
authority relationships

• Organization types – autocratic, bureaucratic, technocratic,

representative democracy, direct democracy

• Day-to-day politics

• Conflicts of interest – structural factors (collaboration &

competition at the same time, resources)

• Power – bases, formal and informal organization

PSYCHIC PRISONS

• History
• Personality
• Ways of thinking
• Ways of action
• Organizational structures and systems
FLUX AND TRANSFORMATION

• Change
• Self learning
• Routines
• Structures and processes
INSTRUMENTS OF DOMINATION

• Internal and external

 Systems, Structure, Process

Machine

Change, chaos, agility Flux & Response to

Transformati Organism environment, survival
on

Unconscious ways of Psychic Information

Brain processing,
working prison
memory,
cognition,
learning

Power, conflict, Politics Culture Values, beliefs,

governance norms
 DESIGN OPTIONS, PROCESSES

Machine

EXTERNAL Flux & EXTERNAL

ENVIRONMENT, Transformati Organism ENVIRONMENT,
on STRATEGY , INTERNAL
STRATEGY , INTERNAL
DESIGN DESIGN

INTERNAL Psychic INTERNAL

Brain PROCESSES
PROCESSES prison

INTERNAL Politics Culture INTERNAL

PROCESSES PROCESSES
 Historical Influence on Organization Design

Contingency Approach

Systems Approach

Management Science

Behavioural Approach

Bureaucratic & Administrative Approach

Scientific Management

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
PLAN AN EVENT
You have to plan a Diwali fest in your institute. You have to take care of the following:
1. Performers’ line-up including 1 celebrity performance
2. Anchoring
3. Décor, design and space usage
4. Advertising the event
5. Food and beverages - Pop-up shops
6. Audience management and security
7. Retail and games shops
8. Cleaning and sanitization

Number of audiences is 250. Total budget is 10 lakhs, celebrity budget is upto 5 lakhs.

Work out a plan of:

1. what all will need to be done (the process, time required, any expected delays etc).
2. Plan out the number and type of people you will needed to manage these and how will these responsibilities be managed?
ORGANIZATION DESIGN DIMENSIONS

FORMALIZATION CENTRALIZATION SPECIALIZATION HIERARCHY OF

AUTHORITY
A STARTUP VS AN OLDER ORGANIZATION
 Contingency factors affecting organization design

Environment

Strategy &
Technology
goals

Organization Organization Organization

Design
Size Dimensions Culture
 Organic & Mechanistic Designs (Burns & Stalker)

Mechanistic structure Organic structure

Centralization Decentralization
Specialized tasks Empowered roles
Strict hierarchy of authority Collaborative team work
High formalization, many rules Informal, few rules
Vertical communication Horizontal communication

Typical contingency factors (M) Typical contingency factors (O)

Large size Small size
Efficiency strategy Innovation strategy
Stable environment Changing/dynamic environment
Rigid culture Adaptive culture
Manufacturing technology Service technology
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GOAL OF ORGANIZATION DESIGN

Efficiency? Effectiveness?
MINTZBERG’S ORGANIZATIONAL PARTS
CSIR TECH PVT LTD.

https://www.thehindu.com/news/national/csirtech-shut-down-for-lack-of-funds/article17429544.ece
ORGANIZATION PLANNING & DESIGN

THE IMMEDIATE
ENVIRONMENT

Dr. Ankita Tandon

FACTORS AFFECTING SUCCESS IN JOB
ACTIVITY
◼ With your successful experience of planning college events in the previous class, you are now planning to
start an event management company in Delhi. The company will start by catering to musical events in the
NCR region (assuming a Post-covid era!) . It will offer the following services:
◼ Celebrity identification
◼ Décor and design arrangements
◼ Security
◼ Anchoring and program lineup
◼ Food & beverages
◼ Photography, videography
◼ Marketing (both traditional and online)
◼ Before you start, you need to understand who are the different stakeholders of value to your company, and
how are they likely to impact your business. These stakeholders are likely to have different levels of power to
impact the survival and growth of your business. Work in groups to identify these stakeholders.
TASK ENVIRONMENT

Industry sector
Raw material
sector
International
Organization
Organization sector
HR sector
Market
sector/consumers
Fin. Resources
sector

5
GENERAL ENVIRONMENT

Government Economic
env.

Organization
Organization

Sociocultural
env. Technological
env.

6
Government Economic
env.
Industry sector
Raw material
sector
International
Organization
Organization sector
HR sector
Market
sector/consumers
Fin. Resources
sector
Sociocultural
env. Technological
env.

7
ENVIRONMENTAL UNCERTAINTY

Government Economic
env.
Industry sector
Raw material
Stable – sector Simple –
International
unstable envt. Organization
Organization complex envt.
sector
HR sector
Market
sector/consumers
Fin. Resources
sector
Sociocultural
env. Technological
env.

8
 ENVIRONMENTAL COMPLEXITY

SIMPLE COMPLEX

Low –
ENVIRONMENTAL CHANGE

STABLE Low
Moderate
uncertainty
uncertainty

Moderate –
High
UNSTABLE high
uncertainty
uncertainty
ENVIRONMENTAL UNCERTAINTY
High resource scarcity

Unstable (high rate of

change of specific and
Low resource scarcity general forces)

Stable (low rate of change Greater no. of specific and

of specific and general general forces
forces)

Fewer specific and general

forces

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DESIGNING FOR UNCERTAINTY

Organic – Mechanistic
Differentiation – Integration structure
(Lawrence & Lorsch)
(Burns & Stalker)

• High uncertainty – high • High uncertainty – organic

differentiation & high integration • Low uncertainty – mechanistic
• Low uncertainty – Low
differentiation & low integration
 ENVIRONMENTAL COMPLEXITY
SIMPLE
Low uncertainty
• MECHANISTIC, FORMALIZED,
CENTRALIZED
ENVIRONMENTAL CHANGE
STABLE • FEW DEPTS.
• NO INTEGRATION ROLES
• CURRENT ORIENTATION, LOW SPEED
RESPONSE
Moderate – high uncertainty
• ORGANIC, TEAMWORK, PARTICIPATIVE,
DECENTRALIZED
• FEW DEPTS., MUCH BOUNDARY SPANNING
UNSTABLE • FEW INTEGRATION ROLES
• PLANNING ORIENTATION, FAST RESPONSE
COMPLEX
Low – Moderate uncertainty
• MECHANISTIC, FORMALIZED, CENTRALIZED
• MANY DEPTS., SOME BOUNDARY
SPANNING
• FEW INTEGRATION ROLES
• SOME PLANNING, MODERATE SPEED
RESPONSE
High uncertainty
• ORGANIC, TEAMWORK, PARTICIPATIVE,
DECENTRALIZED
• MANY DEPTS. - DIFFERNTIATION,
EXTENSIVE BOUNDARY SPANNING
• MANY INTEGRATION ROLES
• EXTENSIVE PLANNING, FORECASTING, HIGH
SPEED RESPONSE
MANAGING RESOURCE DEPENDENCE

Establishing formal
relationships Influencing key sectors

1. Ownership stake 1. Change the business

2. Joint ventures/partnerships domain
3. Lock in key players – 2. Political activity, regulation
cooptation, interlocking 3. Join trade associations
directorate
4. Recruit executives
5. Advertising & public
relations
THE KEY TO MANAGING REMOTE ORGANIZATIONS? DATA
ORGANIZATION PLANNING & DESIGN

ORGANIZATIONAL
STRATEGY &
EFFECTIVENESS

Dr. Ankita Tandon

DIFFERENTIATE YOUR BUSINESS

In the last class you did a stakeholder analysis of your event management
business. Now, think about what will be the unique selling proposition of
your business, what will set it apart from competition.

1. How will you differentiate it from others?

2. What will you need to do within your organization to implement your

plan?
 External Environment: Internal Org. analysis
Opportunities, Strength,
Threats, Weakness,
Uncertainty, CEO/TMT Distinctive competence,
Resource availability Leader style
Past performance

STRATEGIC INTENT

Mission, goals 🡪
Operational goals, Competitive
strategies

ORGANIZATIONAL DESIGN

Structure, Info and control

systems, technology , HR
processes, Culture,
Inter-organizational linkages

ORGANIZATIONAL EFFECTIVENESS OUTCOMES

Goal attainment
Resources
Efficiency
Strategic constituents
 External Environment: Internal Org. analysis
Opportunities, Strength,
Threats, CEO/TMT Weakness,
Uncertainty, Distinctive competence,
Resource availability Leader style
Past performance
STRATEGIC INTENT
Mission, vision, objectives
Mission, goals 🡪 Competitive advantage
Operating goals, Competitive Core competence
strategies

OPERATING GOALS:
Overall performance
Resource related goals
Market goals (market share etc.)
Employee development goals
Productivity (process related) goals
Innovation and change goals
1. Happytummies is a fast food joint. It provides fixed menu take-aways. It prides itself in
providing good food at lowest prices in the market, with minimum service times, and a
courteous staff. It operates on a cloud kitchen, provides no dine-in facilities, and operates
through drive-throughs and deliveries.

2. Royal Treats is a high-end restaurant. It provides an elaborate menu and dine-in facilities. It
prides itself in providing great ambience, excellent food, and exceptional service, while
also accommodating guest’s special requests. The products are charged at a premium
price.

3. Shine is a junk jewelry retail chain that focuses specifically on providing cost-effective
everyday inexpensive trinkets targeted to teenagers. It has multiple stores in NCR and
provides the cheapest products in the market.

4. Hype is a designer label which caters to high net worth individuals. The designs are
exclusive and customized to the consumer. Hype charges a high premium for its products.
FORMULATING A STRATEGY: PORTER’S MODEL

Examples?

6
FORMULATING A STRATEGY: MILES & SNOW TYPOLOGY

Prospector Defender

Analyzer Reactor

7
 STRATEGY AND ORGANIZATIONAL DESIGN
STRATEGY AS A CONTINGENCY VARIABLE

Differentiation strategy? Low-cost leadership strategy ?

Prospector? Defender?
Analyser? Reactor?
STRATEGY AND ORGANIZATIONAL DESIGN
Differentiation strategy
Learning orientation, flexibility, strong
horizontal coordination
Strong research capability
Reward systems for creativity and
innovation
Customer centricity and connect
Low-cost leadership strategy
Efficiency orientation, strong central
authority, cost control, detailed control
processes
SOPs
Close supervision, routine tasks
Highly efficient production & distribution
systems
STRATEGY AND ORGANIZATIONAL DESIGN

Prospector Defender

Learning orientation, flexible, decentralization Efficiency orientation, centralization, cost control

Strong research capability Close supervision and monitoring

Analyzer Reactor
Balance of efficiency and learning orientation No clear approach, abrupt shifts based on current
needs

Mix of both elements in processes and teams

HOW WOULD YOU ASSESS A PERSON’S SUCCESS OR
EFFECTIVENESS IN LIFE?
 ORGANIZATIONAL EFFECTIVENESS
Stakeholders
Strategic constituents approach
Owners, Employees, customers, creditors, community, suppliers, government

• Resource Based
Process • Goal approach
approach • Profitability
• Bargaining position • Market share
• Ability to interpret envt. • Internal process • Growth
• Ability to effectively utilize approach • Social responsibility
resources • Operational efficiency • Product quality etc.
• Ability to respond to • Cooperative culture
changes • Trust
• Open communication
• Employee growth &
development
• Intra-organizational

Inputs
coordination and conflict
resolution Output
THE COMPETING VALUES FRAMEWORK
STRUCTURE

FLEXIBILITY

HUMAN RELATIONS OPEN SYSTEMS

• HRD EMPHASIS
• Cohesion, morale, • Growth, Resource
training acquisition
• Flexibility, readiness,
FOCUS

external evaluation
INTERNAL EXTERNAL

INTERNAL PROCESS RATIONAL GOAL

EMPHASIS EMPHASIS
• Stability, equilibrium • Productivity, efficiency,
• Information profit
management, • Planning, goal setting
communication

CONTROL
THE COMPETING VALUES FRAMEWORK
STRUCTURE (CULTURE)
FLEXIBILITY

HUMAN RELATIONS OPEN SYSTEMS

• HRD EMPHASIS
• Cohesion, morale,
CLAN • Growth, Resource
training ADHOCRACY
acquisition
• Flexibility, readiness,
FOCUS

external evaluation
INTERNAL EXTERNAL

INTERNAL PROCESS RATIONAL GOAL

EMPHASIS EMPHASIS
• Stability, equilibrium
HIERARCHY • Productivity, efficiency,
• Information profit MARKET
management, • Planning, goal setting
communication

CONTROL
THE 7S MODEL

https://www.mckinsey.com/business-functions/strate
gy-and-corporate-finance/our-insights/enduring-ideas-
the-7-s-framework#
NASHWORK
ZAPPOS STRATEGY AND STRUCTURE
ORGANIZATION PLANNING & DESIGN

GLOBAL
ORGANIZATION
DESIGN

Dr. Ankita Tandon

STAGES OF INTERNATIONAL EVOLUTION OF ORGANIZATIONS
STAGES OF INTERNATIONAL EVOLUTION OF ORGANIZATIONS
GLOBAL VS. LOCAL OPPORTUNITIES
INTERNATIONAL DIVISION
GLOBAL PRODUCT STRUCTURE
GLOBAL GEOGRAPHIC STRUCTURE
GLOBAL MATRIX STRUCTURE
CHALLENGES OF GLOBAL ORGANIZATIONS

• Complexity
Response
• Differentiation
• Need for coordination • Global teams
• HQ planning
• Knowledge transfer and
• Expanded Coordination
innovation roles
• Functional managers
• Country managers
• Network
coordinators
Challenges
THE TRANSNATIONAL MODEL
Useful Large multinational
for companies with subsidiaries
in many countries
Focus on both global and
local aspects + innovation,
learning and efficiency
Focus on interdependence
between units (not
independence or complete
dependence)
Features
• Assets and resources are dispersed into
highly specialized units – with
interdependent relationships
• Flexible structures + flexible centralization
• Subsidiary managers initiate strategy and
innovations that can become strategy for
the whole organization
• Coordination through corporate culture,
management style
THE TRANSNATIONAL SOLUTION (CMR
1988)
ORGANIZATION PLANNING & DESIGN

THE STRUCTURAL
DESIGN OF
ORGANIZATIONS

Dr. Ankita Tandon

CREATE AN ORGANIZATION STRUCTURE

You have already deliberated upon your event management company in the last few classes. Now,
design it.

1. Identify your USP (from last class) – how you will differentiate yourself from your competition

2. Identify the types of services you will deliver

3. identify departmentation, reporting relationships, processes for coordination between

departments, and process of curating an event (where does it begin and who will be involved
where)

You can develop diagrams/flowcharts to aid this planning

ELEMENTS

• Departmentalization
• No. of levels in the hierarchy
• Reporting relationships
• Span of control
• Communication, coordination, integration
SHARING INFORMATION AND STRUCTURAL DESIGN

Facilitating vertical communication

• Hierarchical reporting lines

• Rules and plans
• Vertical information systems
• Reports, written information, technology
based communication
SHARING INFORMATION AND STRUCTURAL DESIGN
Horizontal communication and coordination
HIGH
Horizontal coordination reqd.

Relational
coordinati
Teams on
Full-time
Task integrators
Liaison role force
Information
systems

LOW Cost of coordination HIGH

FULL TIME INTEGRATORS (E.G.)
RELATIONAL COORDINATION

◼ Frequent, timely, problem-solving communication

carries out through relationships of shared goals,
share knowledge and mutual respect

◼ Informal – cultural in nature

◼ Free information sharing across boundaries – direct

coordination between employees across units
(without bosses having to do so)
ORGANIZATIONAL DESIGN ALTERNATIVE

Functional Divisional Geographic

Virtual
Matrix Horizontal
networks
FUNCTIONAL STRUCTURE
Business functions/areas of expertise
PROS & CONS
- High specialization of work
- Highly differentiated work – no overlaps
- Ease of intra-departmental communication
- in-depth knowledge and skills development
- Best for few products

- Difficulties in cross-departmental coordination and

communication
- Sub-unit orientation – restricted view of organizational
goals
- Reduced responsiveness to customer demands and
environmental change
- May cause decisions to pile on the top
- Less innovation
Developing horizontal linkages in functional structure
DIVISIONAL STRUCTURE
Grouping based on organizational output
PROS & CONS
- Suited for fast change in uncertain environment
- Clear product responsibility and contact points for
customers
- Higher level of coordination across functions
- Reduced conflict due to more streamlined focus on specific
product lines in one division
- Decentralization of decision making

- Duplication of departments and activities

- Poor coordination across different product departments
- Reduces in-depth competence and technical specialization
- Integration across product lines and standardization
becomes difficult
CUSTOMER BASED DIVISIONS

Product 1

Business Retail

Customer Human Customer Human

Marketing Marketing
service Resource service Resource
PROS & CONS
- High focus on customer needs
- Ease of specialization and adaptation
of products to customers

- Duplication of resources
- Coordinating across different
customer departments
GEOGRAPHIC STRUCTURE
PROS & CONS?
MATRIX STRUCTURE
When there is need to focus on 2 aspects: product & geography OR product & function
CONDITIONS FOR THE MATRIX STRUCTURE

When there is pressure to share scare resources (human and

others) across product lines

When there is dual pressure to be high on technical expertise and

give new products to the market

When the environment is both complex and uncertain – high

coordination and frequent changes are required

◼ Balancing the matrix:

◼ Product matrix
◼ Functional matrix
PROS & CONS
- Effective coordination to meet dual demands
- Flexible sharing of resources across products
- Suitable for complex and uncertain environments
- Opportunities for both functional and skill development
- Best in medium sized organizations with multiple
products

- High levels of coordination required

- Confusion & conflict can occur
- Time consuming – frequent meetings and conflict
resolution
- Requires collegial relationships rather than vertical
relationships to be developed
HORIZONTAL STRUCTURE
Designed around core processes
HORIZONTAL STRUCTURE

◼ Created around core-functional processes 🡪

interdepartmental boundaries diffused

◼ e.g.: Ford Motors Customer Service Division [BD,

Parts supply, Logistics, Vehicle Service, Tech
support]

◼ Self-directed teams are a basis of organizational design

◼ Process owners have responsibility for each core process

◼ Team members are empowered to make decisions and are

cross-trained

◼ Customer driven performance metrics

◼ Culture – openness, trust, collaboration

◼ E.g.: (textbook) – GE Salisbury

PROS & CONS

- Flexibility and rapid response to change

- Attention towards delivering value to customer
- Broader view of the organization
- Focus on teamwork and collaboration

- Determining core processes is difficult

- Change in culture, job design and performance
structures
- Traditional managers might not fit as they have to
give up authority
- High level of training required
- Can limit in-depth skill development
VIRTUAL ORGANIZATION (MODULAR ORGANIZATIONS)
VIRTUAL ORGANIZATIONS
PROS & CONS
- Even small organizations can obtain good
talent and resources worldwide
- Immediate scale without huge investment in
factories etc.
- High flexibility
- Reduces administrative costs

- Reduced managerial control

- Investment in managing relationships and
potential conflicts with partners
- High dependence on partners
- Low employee loyalty and no unique culture
HYBRID STRUCTURES
STRUCTURE AND VERTICAL/HORIZONTAL COORDINATION
RELATIONSHIP
THE UPS AND DOWNS OF MANAGING HIERARCHIES (IESE, 2015)
ORGANIZATION PLANNING & DESIGN

WORKPLACE
TECHNOLOGY AND
DESIGN

Dr. Ankita Tandon

1
TECHNOLOGY

The work processes, techniques, machines, and

actions used

to

transform inputs (materials, information, ideas)

Into

outputs(products and services)

2
CORE AND NON-CORE TECHNOLOGY

3
PRESSURES AFFECTING ORGANIZATION DESIGN

4
ACTIVITY

1. Custom t-shirt boutique

2. T-shirt company
3. Large furniture store
4. Handcrafted furniture
5. Drug development
6. Drug manufacturing
7. Course curriculum design and delivery
8. Teaching guitar

5
THREE WORKS ON TECHNOLOGY

Woodward Perrow Thompson

Manufacturing Interdepartmental
Departmental technology
Technology interdependence

6
 JOAN WOODWARD: MANUFACTURING TECHNOLOGY

Technical complexity :
Extent of mechanization of the manufacturing process

Small-batch and unit production Large-batch and mass production Continuous-process production

7
TECHNICAL COMPLEXITY AND ORG STRUCTURE

9
RELATIONSHIP BETWEEN TECHNICAL COMPLEXITY AND STRUCTURAL
CHARACTERISTICS

10
 ◼ Strategy, structure, and technology need
to be aligned

◼ Successful firms have complementary

structures and technologies

◼ Failing to adopt a new technology or

failing to realign strategy can lead to
poor performance
STRATEGY, TECHNOLOGY,
AND PERFORMANCE

11
ORGANIZATION DESIGN OF MASS PRODUCTION
ORGANIZATIONS TODAY

12
BEYOND WOODWARD: LEAN MANUFACTURING

Highly trained employees at Cut waste and improve Incorporates technological

every stage of production quality elements

13
BEYOND WOODWARD: THE DIGITAL FACTORY

◼ Technology on the shop floor

Computer-aided Design (CAD)
Computer-aided Manufacturing (CAM)
Manufacturing Process Management (MPM)
Integrated Information Network
Product life-cycle Management (PLM)

◼ Lean Manufacturing and Digital Factory Paved the way for mass customization

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COMPARISON OF ORGANIZATIONAL CHARACTERISTICS

16
PERFORMANCE AND STRUCTURAL IMPLICATIONS

Flexible manufacturing allows diverse products to be made on one assembly line

✔ Computer-aided craftsmanship
✔ More efficient
✔ Increased productivity
✔ Decreased scrap
✔ Customer satisfaction

17
CORE TECHNOLOGY FOR SERVICE FIRMS

◼ E.g.: Education, health care, transportation, and banking all have unique
dimensions

18
CORE ORGANIZATION SERVICE TECHNOLOGY

19
STRUCTURAL CHARACTERISTICS OF SERVICE ORGANIZATIONS VERSUS
PRODUCT ORGANIZATIONS

20
 PERROW: DEPARTMENTAL TECHNOLOGY
Variety Analyzability
Frequency of unexpected and novel events Ability to apply standard procedures and
break down activity into specific steps

Can be applied beyond manufacturing to all departments

21
MEASURING TECHNOLOGY
◼ Task variability
◼ 1. How many of these tasks are the same from day to day?
◼ 2. To what extent would you say your work is routine?
◼ 3. People in this unit do about the same job in the same way most of the time.
◼ 4. Basically, unit members perform repetitive activities in doing their jobs.
◼ 5. How repetitive are your duties?

◼ Problem analyzability
◼ 1. To what extent is there a clearly known way to do the major types of work you normally encounter?
◼ 2. To what extent is there a clearly defined body of knowledge of subject matter which can guide you in doing your work?
◼ 3. To what extent is there an understandable sequence of steps that can be followed in doing your work?
◼ 4. To do you work, to what extent can you actually rely on established procedures and practices?
◼ 5. To what extent is there an understandable sequence of steps that can be followed in carrying out your work?

◼ Source: Michael Withey, Richard L. Daft, and William H. Cooper, "Measures of Perrow's Work Unit Technology: An Empirical Assessment and a New Scale,“
Academy of Management Journal, March 1983, p. 59.

22
 PERROW’S TECHNOLOGY TYPES

Low

Analyzability

High

Low High
Variety
23
FRAMEWORK FOR DEPARTMENT TECHNOLOGIES

24
DEPARTMENT DESIGN

Overall design is either organic or mechanistic

Design characteristics vary depending on work unit

• Formalization
• Decentralization
• Employee skill level
• Span of control
• Communication and coordination

25
 RELATIONSHIP OF DEPARTMENT TECHNOLOGY TO
STRUCTURAL AND MANAGEMENT CHARACTERISTICS

26
 THOMPSON: INTERDEPENDENCE AMONG DEPARTMENTS

Mediating technology

Long linked technology

Intensive technology

27
COORDINATION FOR INTERDEPENDENCE

28
INTERDEPENDENCE OF DEPARTMENTS INVOLVED IN THE
FLIGHT DEPARTURE PROCESS

29
RELATIONSHIP OF INTERDEPENDENCE AND TEAM PLAY
CHARACTERISTICS

30
IMPACT OF TECHNOLOGY ON JOB DESIGN
✔ Job Design
✔ Job Simplification
Technology impacts:
✔ Job Rotation
1) Job Design
2) Sociotechnical systems ✔ Job Enrichment
✔ Job Enlargement

Sociotechnical systems approach recognizes the interaction of

technical and human needs

31
SOCIOTECHNICAL SYSTEMS MODEL

32
TEACHING TECHNOLOGY IN THE CLASSROOM

33
SUMMARY
Technology
Researcher
Routine Non-routine
Woodward Mass production, continuous process Unit/small-batch production

Perrow Routine, Engineering Craft, Non-routine

Thompson Mediating, Long-linked Intensive

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INDIA: DELIVERING WORLD CLASS
HEALTHCARE AFFORDABLY

35
ORGANIZATION PLANNING & DESIGN

ORGANIZATIONAL
CULTURE

Dr. Ankita Tandon

1
MONKEY SEE MONEY DO!

2
3
4
5
That’s how things are done around here!
6
WHAT IS CULTURE?

◼ Values, norms, guiding beliefs, and understandings that are shared by

members of an organization

◼ Taught to new members as the correct way to think, feel, and behave

7
PURPOSE OF CULTURE

Provides sense of organizational identity

Internal Integration – collective identity and

know how to work together

External Adaption – how the organization

meets goals and deals with outsiders

8
LEVELS OF ORGANIZATIONAL CULTURE

9
 LEVELS OF ORGANIZATIONAL CULTURE
- Personal enactment
- Stories
- Rituals, Ceremonies
& Rites
- Symbols – office
decor, physical space,
dressing

10
CHANGING ORGANIZATIONAL CULTURE

Values &
Attitudes

Espoused Vs
Enacted

11
CHANGING ORGANIZATIONAL CULTURE

Underlying Assumptions:
-Relation to the environment
- about human nature, activity,
human relationships
- nature of reality, time, space
12
INDIAN RESEARCH ON CULTURE – UDAY PAREEK

O Openness
C Confrontation
T Trust
A Autonomy
P Proaction
A Authenticity
C Collaboration
E Experimentation
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OBSERVABLE ASPECTS OF ORGANIZATIONAL CULTURE

14
ORGANIZATIONAL DESIGN AND CULTURE
CULTURE STRENGTH AND ORGANIZATIONAL SUBCULTURES

Culture strength is the degree of agreement among

members of an organization about specific values

Subcultures reflect the common problems, goals, and

experiences of a team or department

Different departments may have their own norms

16
ORGANIZATIONAL CULTURE, LEARNING, AND
PERFORMANCE

17
CONSTRUCTIVE VERSUS NON-CONSTRUCTIVE CULTURES

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 ETHICAL VALUES AND SOCIAL RESPONSIBILITY

Ethics
◼ Ethics refer to the code of moral principles and values that govern the
behaviors of a person or group with respect to what is right or wrong

Managerial Ethics
◼ Ethical decisions go far beyond behaviors governed by law
◼ Managerial ethics guide the decisions and behaviors of managers

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SOURCES OF INDIVIDUAL ETHICAL PRINCIPLES AND
ACTIONS

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RELATIONSHIP BETWEEN THE RULE OF LAW AND ETHICAL
STANDARDS

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

◼ Does it pay to be good?

◼ Extension of the idea of managerial ethics
◼ Management’s obligation to make choices and take action that
positively impact stakeholders
◼ Customers and public are paying closer attention to what organizations
do
◼ Social responsibility can enhance a firm’s reputation

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HOW MANAGERS SHAPE CULTURE AND ETHICS

◼ Value-Based Leadership

◼ Formal Structure and Systems

◼ Structure

◼ Disclosure Mechanisms

◼ Code of Ethics

◼ Training Programs

◼ Managers play key role in providing leadership and examples of ethical behavior

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HOW PIXAR FOSTERS COLLECTIVE CREATIVITY

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ORGANIZATION PLANNING & DESIGN

INNOVATION AND
CHANGE

Dr. Ankita Tandon

1
SUCCESSFUL CHANGE ELEMENTS

2
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ORGANIZING FOR INNOVATION

◼ As many new uses of newspapers – new products that can be sold – target market
◼ Team structure – coo, cmo, cto, manager ops, marketing, technology (team to have few people who have a
say in decisions – to create a sort of hierarchy, and its impact on innovation)
◼ 1 observer

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AMBIDEXTROUS ORGANIZATION

Incorporates structures and management processes that are appropriate for innovation
Exploration & Exploitation

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CREATING AMBIDEXTERITY: TECHNIQUES

Venture Teams
Creative Departments
Switching Structures A small company within
department for the organization
create a (temp) organic
innovation/ idea
structure Skunkworks
incubators
New venture fund

Corporate
Bottom-up Approach
Entrepreneurship
useful ideas come from
promote entrepreneurial
people and daily work
spirit

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NEW PRODUCTS AND SERVICES

◼ Horizontal Coordination Model for innovation

◼ Specialization
◼ Boundary Spanning
◼ Horizontal Coordination

◼ Open Innovation

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NEW PRODUCTS AND SERVICES INNOVATION:
DEPARTMENTAL SPECIALIZATION, BOUNDARY SPANNING, HORIZONTAL COORDINATION

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STRATEGY AND STRUCTURE
CHANGE FOR INNOVATION

◼ Cutting out layers

◼ Decentralizing decision making
◼ Shift toward horizontal structures
◼ Empowered teams and workers
◼ Virtual network strategies
◼ Incorporating eBusiness

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 ACHIEVING COMPETITIVE ADVANTAGE: THE NEED FOR
SPEED

◼ The rapid development of new products and services can be a major strategic weapon

◼ Time-based competition means delivering products and services faster than competitors

◼ Many companies use fast cycle teams to support highly important projects

◼ Fast cycle teams: multifunctional, sometimes multinational, teams working on stringent timelines and getting high

levels of company resources

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DUAL-CORE APPROACH TO ORGANIZATION CHANGE

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CHANGE

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FORCES DRIVING THE NEED FOR MAJOR ORGANIZATIONAL
CHANGE
STRATEGIC TYPES OF CHANGE

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REACTION TO CHANGE

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BARRIERS TO CHANGE?

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BARRIERS TO CHANGE

◼ Excessive focus on costs

◼ Failure to perceive benefits
◼ Lack of coordination and cooperation
◼ Uncertainty avoidance
◼ Fear of loss

◼ IMPORTANCE OF LEADERSHIP

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TECHNIQUES FOR OVERCOMING RESISTANCE

Alignment with needs Communication and An environment with Participation and Forcing and coercion
and goals of users training psychological safety involvement

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THE CHANGE CURVE

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IMPLEMENTING CHANGE - KOTTER
REFREEZE Institutionalize change
Consolidate, reassess, modify
Plan for and create short term wins
CHANGE
Empower to act on vision
Communicate the vision
UNFREEZE Develop a vision
Develop a coalition to lead change
Create a sense of urgency
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Feb 26, 2015
CULTURAL CHANGE

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OD CULTURE CHANGE INTERVENTIONS

✔ Large Group Intervention

✔ Team Building

✔ Interdepartmental Activities

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ORGANIZATION PLANNING & DESIGN

ORGANIZATIONAL
LIFE CYCLE

Dr. Ankita Tandon

1
DIFFERENCES BETWEEN LARGE AND SMALL
ORGANIZATIONS

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ORGANIZATION SIZE: IS BIGGER BETTER?

◼ Large organizations are able to get back to business more quickly

following a disaster

◼ Large companies are standardized, mechanistic, and complex

◼ Small companies are flexible and can be responsive

◼ Many companies aim to have a big company/small-company hybrid –

divisional structure

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ORGANIZATIONAL LIFE CYCLE

4 4
ORGANIZATION CHARACTERISTICS DURING FOUR
STAGES OF LIFE CYCLE
BUREAUCRACY

◼ Weber

◼ Bureaucracy includes:

◼ Rules and standard procedures

◼ Clear tasks and specialization

◼ Hierarchy of authority

◼ Technical competence

◼ Bureaucracy is the most efficient system for organizing

◼ The control introduced by Weber was rational and a significant idea

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WEBER’S DIMENSIONS OF BUREAUCRACY AND
BASES OF ORGANIZATIONAL AUTHORITY

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SIZE AND STRUCTURAL CONTROL

◼ Formalization – rules, procedures, and written documentation

◼ Centralization – level of hierarchy with authority to make decisions
◼ Personnel Ratios – clerical and professional support staff ratios

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PERCENTAGE OF PERSONNEL ALLOCATED TO ADMINISTRATIVE AND
SUPPORT ACTIVITIES

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THREE ORGANIZATIONAL CONTROL STRATEGIES

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ORGANIZATIONAL DECLINE AND DOWNSIZING

The decrease of an organization’s resources over time is caused by:

◼ Organizational atrophy
◼ Vulnerability
◼ Environmental decline or competition

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STAGES OF DECLINE AND THE WIDENING PERFORMANCE GAP

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ACCELERATE

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