Module 2

Three Lenses on Organizational

Analysis and Action
Instructor :Amna Yameen
Strategic Design
Lens
Organization
Political
Lens
Cultural
Lens
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Managers can make their
organization successful
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Strategic Grouping (differentiation)
Drawing boundaries around clusters of tasks or activities to define
job, departments or processes
Strategic Linking (integration)
Creating links across boundaries
Alignment
Aligning other elements of the organization (e.g.
incentives/rewards) to provide access to the resources and the
incentives to do the tasks assigned
Relevant at every level of the organization
from design of teams or departments to design of
organization
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1. Complexity
Extent to which activity can be
specified or programmed
Simple tasks are routine but
complex task can also be
routinized
Task
2. Routinization
The smallest unit of activity that
needs to be performed
Tasks vary in:
Degree to which extent tasks are
independent of other tasks
Most tasks in an organization
involve some level of
interdependency
3.
Interdependence
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Types of Interdependence
O Sequential Interdependence
O When one task is completed and handed off for
next stage
O Pooled Interdependence
O When interdependent tasks are taken at the
same time, and the final results are put together
or pooled
O Reciprocal Interdependence
O When tasks are completed with repeated
interaction with each other
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Pooled
Sequential
Reciprocal
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1. Strategic Grouping
Grouping gathers together some tasks, functions, or
disciplines, and separates them from others
Fundamental assumption
Coordination and communication are easier and denser within a
unit than across units
Sharing information and building and adding to a common
knowledge base are easier within than across units
Most important areas of interdependence should be under a
unified reporting structure

Focuses on how to cluster tasks and activities?

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Basic Structures
Grouping by Expertise/ Function
Functional Grouping Structure
Brings together individuals who share similar
functions, disciplines, skills and work
processes
Grouping by Product
Business/Product Division Structure
People within a group perform variety of
different tasks/activities but they are all
contributors to same final output
Grouping by Market (Geography or
Customer)
Gathers together people who perform different
activities and tasks and produce different
outputs but who serve the same customers or
market segments

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2. Strategic Linking
involves designing formal and informal structures and processes to
connect and coordinate organizational units and subunits whose tasks
are interdependent but have been separated by strategic grouping
The level of interdependence across groups depends in part on the
tasks they perform
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Linking Mechanisms
Hierarchy
Organization chart not only shows map of strategic grouping but
also explains who must keep whom informed and who has
responsibility for linking which activities

Dotted Line Hierarchical Relationship
lower ranking person is formally responsible for supplying all
relevant information to the higher ranked person
the higher ranked person has no formal authority over the lower
ranked person beyond the information flow

Liaison Roles
Individuals who have the responsibility for coordinating across
groups
Role is information focused, dont have authority to impose
decisions on others

Integrator Roles
Coordinates activities and decision processes
Has some carrots and sticks to reinforce the rule
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Permanent Cross Unit Groups
Brings together representatives of different
workgroups. Membership on these groups is often
combined with other activities and is often not a
full time assignment
Temporary Cross Unit Groups
Represent permanent cross unit groups in their
composition. Problem focused. Exist only until
particular problem is solved or assigned task is
accomplished. More often a full time assignment
Information Technology Systems
Allow to push back time and distance constraints,
disseminate information more broadly &quickly
and facilitate collaboration and teamwork e.g.
networks, email, digital scanning/printing, video
conferencing etc.
Planning Processes
Brings people together from different groups to
identify major challenges and develop jointly a set
of goals for a certain time horizon
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design appropriate pattern of linkages that will
create the clearest channels of information with
minimum commitment of people, time, money,
and other organizational resources


Challenge
construct linking
mechanisms that are both
effective and efficient
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Alignment
Ensuring that units and individuals
assigned certain tasks and activities by
the grouping and linking patterns have the
resources and motivation to carry them
Failure of redesign efforts lack of
organizational congruence
Includes:
Organizational performance
measurement systems
Individual rewards and incentives
Resource allocation
Human resource development
Informal systems and processes
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Alignment

Organizational Performance Measurement Systems
Align the performance measurement systems with the strategic
intent
Helps the leaders to understand that the strategic intent
underlying the grouping and linking patterns is being realized
Also align measurement systems for different strategic grouping

Individual rewards and incentives
align rewards with strategic grouping and linking patterns
Traditional org: bonuses, raises, promotions
Flatter org: project assignment, training opp., choice in
assignments

Resources
Include: people, money, things, information expertise etc
Ensure units created by strategic grouping process have the
resources to achieve their goals
Ensure linking mechanisms accompanied by adequate allocation
of resources

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Alignment(continued..)

Human Resource Development
Change in design often needs a change in the way careers are
designed
Align human resources, skills and expertise with the new design
Training, personnel transfers and career planning are among the
key alignment mechanisms

Informal Systems and Processes
The most elusive and challenging element of alignment
These systems emerge over time as people adapt to the
organization and to the demand of their jobs and environment
Structured through various alignment mechanisms
arenas which facilitate formation of new networks, discusiion
of problems, formation of new patterns
can be designed into training programs
incorporating into linking mechanisms

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Strategic Organizational Design Process
Process of design involves costs:
Disruption of normal flow of business
Risk to long-term relationships with key customers and
suppliers
Stress and anxiety
Reasons for organization redesign:
Response to growth of organization
Management succession stimulates change
Required as a result of internal problems
Current design no longer fits external environment
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