Success & Failures in Organizational Design

Considerations when developing an organization design

Start with a statement of strategic intent Determine the high level organizational boundaries that support

the strategic intent Where you draw boundaries is critical to strategy execution Include integrating mechanisms to ensure that the right dialogue occurs among groups While organization redesign is not about a silver bullet or a quick fix, it can generate quick results. Organization design is more than moving the boxes Poor executive performance is often blamed for poor design. Create the right integration mechanisms to align the product structure with overall business objectives

How do you know an organization design is successful

There is a faster cycle time for developing the right

products/services defined by company strategy. The companys resources move quickly when needed. Your business is able to adapt to changes in market conditions quickly, without creating a feeling of chaos to employees and suppliers. Work is getting done efficiently without rework, excessive reviews. The right information is getting to the right people.

Reasons for failure of organization design

People are too detached and do not see their present

situation in detail Past experience is limited Inability to work with the available resources Preoccupation with decision rationality makes it impossible for people to accept the rationality of decision making Striving for perfection leads to inability to bear the aesthetics of imperfection

Social Responsibility
Social responsibility: refers to a managers duty

or obligation to make decisions that nurture, protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole

Approaches to Social Responsibility

Obstructionist approach: the low end of the organizations commitment to social responsibility

Managers choose to behave unethically and illegally

Defensive approach: a minimal commitment to ethical behavior

Managers attempt to stay within the law but do not attempt social responsibility beyond what is required by law

Approaches to Social Responsibility (cont.)

Accommodative

approach: the acknowledgment of the need to support social responsibility

Managers want to make the right choices when called on to do so

Proactive approach: actively embrace the need

to behave in socially responsible ways

Managers go out of their way to learn about the needs of different stakeholder groups Willing to utilize organizational resources to promote the interests not only of stockholders, but of other stakeholders
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Approaches to Social Responsibility

Why Be Socially Responsible?

Workers and society benefit directly because

organizations bear some of the costs of helping workers Quality of life as a whole would be higher as a climate of caring is encouraged It is the right thing to do Companies that act responsibly toward their stakeholders benefit from increasing business and see their profits rise
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Why Be Socially Responsible? (cont.)

Whistle-blower: a person who reports illegal or

unethical behavior

Takes a stand against unscrupulous managers or other stakeholders

Evidence

suggests that managers who behave socially responsibly will, in the long run, benefit all organizational stakeholders

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Arguments for Social Responsibility

Public expectations

Long run profits

Ethical obligation Public image Better environment Discouragement of further government regulation Balance of responsibility and power Stockholder interests Possession of resources Superiority of prevention over cures

Arguments against Social Responsibility

Violation of profit maximization

Dilution of purpose
Costs Too much power

Lack of skills
Lack of accountability Lack of broad public support

Creativity
Meaning: Creativity means the ability to develop a

new object or a new idea. Creativity is regarded as a vital tool in the invention and discovery of new ideas as well as objects. Definition: Acc to Torrance, Creative thinking is the process of sensing difficulties, problems, gaps in information, missing elements, making guesses and hypotheses about the solution of these deficiencies; evaluating and testing these hypotheses; possibly revising and restating them; and finally communicating the result.

Traits of Creative People

Creative people are curious.

Creative people like challenges.

Creative people are not afraid to experiment Creative people have high standards.

Creative people know how to accept and give

constructive criticism

Components of Creativity

Creativity Process

Creativity Process

Creativity Techniques
Brainstorming Mind-mapping Force field analysis Rapid prototyping Synectics Idea Box Metaphor Attribute listing Serendipity Visual thinking Morphological analysis Suggestion schemes Heuristics

Benefits of Creativity
To individuals:

- Help you make the best use of your talents, aptitudes

-

and abilities Enhance the enjoyment of your job Cause you to have more self-confidence Ultimately increase your income Cause you to become more self-motivated Give you a greater sense of control and mastery over your job

Benefits of Creativity
To the Organization:

- organizational adaptability
- highly engaged, motivated, diverse and creative

talent delivers competitive advantage - diversity of ideas, capabilities and perspectives - attract, retain, and cultivate the brightest talent in their industry

Strategy-Culture Fit
Strategy: Course of action used to achieve objectives. Relates resources of organization to opportunities in environment. Culture: Set of values for setting priorities. Critical factor in implementation of strategy.

Chapter 15 Slide 21

An Experiential Approach to Organization Development 8th edition

Figure 15.5 Strategy-Culture Matrix

Chapter 15 Slide 22

An Experiential Approach to Organization Development 8th edition

Strategy-Culture Matrix (part 1 of 4)

Four basic alternatives in determining strategy changes: 1. Manage change (manageable risk).

Change important and compatible with culture. Use cultural reinforcement as strategies.

Chapter 15 Slide 23

An Experiential Approach to Organization Development 8th edition

Strategy-Culture Matrix (part 2 of 4)

2.

Reinforce culture (negligible risk).

Forge vision that emphasizes shared values. Reinforce existing culture.

Chapter 15 Slide 24

An Experiential Approach to Organization Development 8th edition

Strategy-Culture Matrix (part 3 of 4)

3.

Manage around culture (manageable risk).

Change important and incompatible with present culture. Reinforce value system, reshuffle power, use leverage in the organization.

Chapter 15 Slide 25

An Experiential Approach to Organization Development 8th edition

Strategy-Culture Matrix (part 4 of 4)

4. Change strategy to fit culture (unacceptable risk). Change important but incompatible with culture. Changing culture is explosive, long-term process that may be impossible.

Chapter 15 Slide 26

An Experiential Approach to Organization Development 8th edition

Strategic change management:

Strategic change is defined as changes in the

content of a firm's strategy as defined by its scope, resource deployments, competitive advantages, and synergy In simple form strategic change is away of changing the objectives and vision of the company in order to obtain greater success.