Organization development and Organization design January 2012


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One day open training event held in Toronto, Canada.

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Organization development and Organization design January 2012

  1. 1. Organization development and organization design by Toronto Training and HR January 2012
  2. 2. 3-4 Introduction to Toronto Training and HR 5-6 DefinitionsContents 7-8 9-19 Planned change The Work Levels Model 20-21 Key aspects of work 23-29 The reconfigurable organization 30-34 Organizational learning 35-38 The learning organization 39-42 Competence at the organization level 43-45 Ways of looking at organizations 46-55 Reviewing organization structure 56-59 Present and future talent needs 60-66 HR and organization development 67-73 Organization development practitioners 74-75 Organizational structure and job design 76-77 Types of organization design 78-82 Organization design principles and processes 83-90 Three design contexts 91-94 An organization design model 95-96 Trends in organization design 97-98 Looking forward 99-100 Conclusion and questions
  3. 3. Introduction Page 3
  4. 4. Introduction to Toronto Training and HR• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR are: - Training event design - Training event delivery - Reducing costs - Saving time - Improving employee engagement & morale - Services for job seekers Page 4
  5. 5. Definitions Page 5
  6. 6. DefinitionsOrganization developmentOrganization design Page 6
  7. 7. Planned change Page 7
  8. 8. Planned changeReasons for rapid changeBasic principlesTypical phasesTypes of interventionsEstablished modelsMovements Page 8
  9. 9. The Work Levels model Page 9
  10. 10. The Work Levels model 1 of 10AccountabilityHierarchyRole assignmentThe golden rule Page 10
  11. 11. The Work Levels model 2 of 10LEVEL ONERoutine, practical judgementLEVEL TWODiagnostic judgementLEVEL THREESystematic coordinationLEVEL FOURStrategic development Page 11
  12. 12. The Work Levels model 3 of 10LEVEL FIVEStrategic directionLEVEL SIXEnvironmental screeningLEVEL SEVENShaping context Page 12
  13. 13. The Work Levels model 4 of 10BENEFITS TO THE ORGANIZATION:A robust, dynamic and flexible organizationstructureAn externally focussed and responsive organizationClear and effective channels of communicationTransparent process flowsEasy capability assessment Page 13
  14. 14. The Work Levels model 5 of 10BENEFITS TO THE ORGANIZATION:Effective potential assessment, careerdevelopment and successionA performance-driven cultureSignificant cost efficiencies and enhanced overallbusiness performance Page 14
  15. 15. The Work Levels model 6 of 10APPLICATION OF WORK LEVELS:manage and enhance the performance of roleholders against clear accountabilities androle demands Page 15
  16. 16. The Work Levels model 7 of 10APPLICATION OF WORK LEVELS:intervene effectively to ensure that individuals aredeveloping the competencies and skills they needto discharge their accountabilities at differentlevels of workrecruit and select individuals against level-basedrole accountabilities and demands Page 16
  17. 17. The Work Levels model 8 of 10APPLICATION OF WORK LEVELS:assess the potential of individuals against thecompetencies required to operate at differentlevels of workmanage people’s careers to ensure they realisetheir full potential and ensure appropriatesuccession to key roles in the hierarchy Page 17
  18. 18. The Work Levels model 9 of 10APPLICATION OF WORK LEVELS:ensure that rewards reflect contribution to theorganization, in terms of accountabilities andcomplexity Page 18
  19. 19. The Work Levels model 10 of 10APPLICATION OF WORK LEVELS:shape and manage a performance-orientatedorganization culture, which encourages andenables people at all levels to contribute effectivelyto the achievement of organizationalobjectives Page 19
  20. 20. Key aspects of work Page 20
  21. 21. Key aspects of work 1 of 2Time-span of discretionThe nature of workResource complexityProblem-solvingDiscretionary authority Page 21
  22. 22. Key aspects of work 2 of 2JOB DIMENSIONS AND THEIR EFFECTSSkill varietyTask identityTask significanceAutonomyFeedback Page 22
  23. 23. The reconfigurable organization Page 23
  24. 24. The reconfigurable organization 1 of 6Teams and networks that cross organizationaldepartmentsUse of internal prices, markets and market-likedevices to coordinate the activity of multipleteamsForming partnerships for the capabilities theorganization does not have Page 24
  25. 25. The reconfigurable organization 2 of 6SELF-MANAGED WORK TEAMS:Minimal rulesVariance controlMulti-skillsBoundary locationInformation flow Page 25
  26. 26. The reconfigurable organization 3 of 6BENEFITS OF SELF-MANAGED WORK TEAMS:Better decisions because there are multiplesources of input and feedback, and the decisionsare made closer to the issue and by people whohave the greatest knowledge and ability to takeeffective action Page 26
  27. 27. The reconfigurable organization 4 of 6BENEFITS OF SELF-MANAGED WORK TEAMS:People in the organization feel accountable andresponsible for the success of theenterpriseThere is buy-in on decisions made by the teamPeople are better able to adjust to the rapidlychanging competitive and global environment Page 27
  28. 28. The reconfigurable organization 5 of 6BENEFITS OF SELF-MANAGED WORK TEAMS:Cross training and building organizational depth iseasierPeople are more flexible and respond faster tocustomersThere is more opportunity for diversity in work andleadership roles for team members Page 28
  29. 29. The reconfigurable organization 6 of 6BENEFITS OF SELF-MANAGED WORK TEAMS:People are better suited for continuousimprovementPeer feedback provides more opportunity forgrowth Page 29
  30. 30. Organizational learning Page 30
  31. 31. Organizational learning 1 of 4WAYS TO ADVANCE ORGANIZATIONAL LEARNINGCreate a ―learning culture‖ where opportunities forformal and informal learning can occur amongemployees up and down the organizational chartEnsure personal development and development ofsubordinates remains a key performance objectivefor everyone Page 31
  32. 32. Organizational learning 2 of 4WAYS TO ADVANCE ORGANIZATIONAL LEARNINGBuild learning opportunities into every post-projectevaluationCreate cross-disciplinary learning opportunitiesMatch the competencies needed for achievingbusiness objectives against the skill inventories ofincumbents; source internal or external subjectmatter experts to fill the gaps Page 32
  33. 33. Organizational learning 3 of 4WAYS TO ADVANCE ORGANIZATIONAL LEARNINGKeep the development and advancement ofsubordinates a meaningful metric for theassessment of leadersMaintain close ties between hiring managers andrecruitment professionals; in cases when corecompetencies are in short supply in the labor pool,internal training programs might make sense Page 33
  34. 34. Organizational learning 4 of 4WAYS TO ADVANCE ORGANIZATIONAL LEARNINGMonitor performance appraisal tools for trends inemployee development needsConsider the value of knowledge managementprograms Page 34
  35. 35. The learning organization Page 35
  36. 36. The learning organization 1 of 3A learning approach to strategyParticipative policy-making with consultation andparticipation by people from all parts of theorganizationOpen information systemsFormative accounting and control Page 36
  37. 37. The learning organization 2 of 3Internal exchange of ideas and informationFlexibility of rewards so that people can work totheir own best wayStructures that make individual contributionspossible Page 37
  38. 38. The learning organization 3 of 3Capacity for boundary workers to act as boundaryscannersInter-worker learningA learning climate for allSelf-development opportunities for all Page 38
  39. 39. Competence at theorganization level Page 39
  40. 40. Competence at the organization level 1 of 3DefinitionAttracting the human resources adequate to theorganization activity from the labour marketIts use according to the existing technical andtechnological requirements, as well as a disciplinerequired by the specific servicesThe involvement and innovation according to therequirements of the created product’s consumer Page 40
  41. 41. Competence at the organization level 2 of 3TYPES OF COMPETENCEBehavioural competenceTechnical competenceConcept of ability Page 41
  42. 42. Competence at the organization level 3 of 3CORRELATED PROCESSESSchooling and professional orientation is essentialto ensure the individual competence of employeesof an organization and attain performanceDetection of specific natural characteristics andappropriate orientation of young people is the roleof the educational and vocational orientationsystemKnowledge managementRoles and jobs Page 42
  43. 43. Ways of looking at organizations Page 43
  44. 44. Ways of looking at organizations 1 of 2Organizations as machinesOrganizations as organismsOrganizations as culturesOrganizations as political systemsOrganizations as brainsOrganizations as psychic prisonsOrganizations as instruments of domination Page 44
  45. 45. Ways of looking at organizations 2 of 2ORGANIZATIONAL PRINCIPLESExclusive organizational principlesInclusive organizational principles Page 45
  46. 46. Reviewing organization structure Page 46
  47. 47. Reviewing organization structure 1 of 9 Page 47
  48. 48. Reviewing organization structure 2 of 9Once the goals and strat-egy are deter-mined;cur-rent func-tions, work processes andinter-con-nected activ-i-ties need to be iden-ti-fiedand assessed: Page 48
  49. 49. Reviewing organization structure 3 of 9What is it that you do?What are the major func-tions of your business?Do the cur-rent work units and report-ingrela-tion-ships sup-port the strate-gic plan? Page 49
  50. 50. Reviewing organization structure 4 of 9An in-depth under-stand-ing of cur-rent processesis vital to under-stand-ing what needs to bechanged-now that you have assessed func-tionsand work processes, the orga-ni-za-tionalstruc-ture com-po-nent needs to be addressed: Page 50
  51. 51. Reviewing organization structure 5 of 9Do we need to add a new work unit?Should we com-bine por-tions of work units? Page 51
  52. 52. Reviewing organization structure 6 of 9How many lev-els of man-age-ment are requiredto meet the strate-gic plan?Would a Matrix Design be more effec-tive inreach-ing our goals? Page 52
  53. 53. Reviewing organization structure 7 of 9MORE FACTORS TO CONSIDER:The actual work sys-tems need to beacknowl-edgedWhat is the busi-ness plan for each unit?Who is mon-i-tor-ing the work?How are resource allo-ca-tion and tech-nol-ogyimple-mented?How do the sup-port func-tions contribute? Page 53
  54. 54. Reviewing organization structure 8 of 9Integrate peo-ple, pro-fes-sions, and skills:Will we hire a new man-ager from out-side orpro-mote from within?Do the exist-ing employ-ees have the skillsrequired to ful-fill new respon-si-bil-i-ties as aresult of required changes? Page 54
  55. 55. Reviewing organization structure 9 of 9Finally, a major fac-tor that needs to becon-sid-ered is the cul-ture of the orga-ni-za-tion,as orga-ni-za-tional cul-ture is a key dri-ver forsuc-cess in orga-ni-za-tional changeA paper exer-cise will not help if employ-ees arenot will-ing to accept the new way of operating Page 55
  56. 56. Present and future talent needs Page 56
  57. 57. Present and future talent needs 1 of 3Career managementCareer development Page 57
  58. 58. Present and future talent needs 2 of 3TALENT MANAGEMENT OBJECTIVESIdentify business essentialsDevelop existing peopleBuild bench strength Page 58
  59. 59. Present and future talent needs 3 of 3INTEGRATED TALENT MANAGEMENTMeasurement of organizational and individualcapability gapsAlignment of strategy, organization design, andpeopleDeployment of talentExpansion of organizational and individualcapabilities Page 59
  60. 60. HR and organization development Page 60
  61. 61. HR and organization development 1 of 6THE HR DOMAINIs talent discussed at the strategy table?Are we attracting and retaining top talent?Are our best leaders in the most critical jobs?Do we have retention plans for key executives andpositions? Page 61
  62. 62. HR and organization development 2 of 6THE HR DOMAINWho can we not live without? What could havebeen done to keep the top talent we lost?Are there situations where high potentials arebeing blocked in their advancement?Why do people join our company? Stay? Leave? Page 62
  63. 63. HR and organization development 3 of 6THE HR DOMAINDo we have plans in place to increase or sustainemployee productivity, development, andretention? Are the plans working? Page 63
  64. 64. HR and organization development 4 of 6THE ORGANIZATION DEVELOPMENT DOMAINIs talent discussed at the strategy table?Do our corporate values reflect talent as a priority?What is our culture? Does it fit with what we say itis? Page 64
  65. 65. HR and organization development 5 of 6THE ORGANIZATION DEVELOPMENT DOMAINDo standards exist that describe the skills,behaviours, and attributes of an exceptionalleader?Does the organization design support the strategy?Succession depth, do we have multiple backups forcritical positions? Will we have the talent we’llneed for success in 2 years? 5 years? 10 years? Page 65
  66. 66. HR and organization development 6 of 6THE ORGANIZATION DEVELOPMENT DOMAINWhich talent segments add the most value?Are we good at workforce planning? How can weimprove?Do we have a plan to increase employeeengagement? Is the plan working? Page 66
  67. 67. Organization development practitioners Page 67
  68. 68. Organization development practitioners 1 of 6Understanding social systems, drawing on theoriesand ideas from the social sciences, includingpsychology, social psychology, sociology,anthropology, political science, and others,consistent with organization development values Page 68
  69. 69. Organization development practitioners 2 of 6Understanding the hows and whys of change,including the bodies of knowledge that helpexplain how all levels of the system—individual,group, organizational, community, and evensocieties change Page 69
  70. 70. Organization development practitioners 3 of 6Understanding the role of the third party changeagent, especially aiding the person in charge aswell as the system itself to bring about the desiredchanges, requiring an understanding of the issues,politics, psychological processes related to being athird party in a change process Page 70
  71. 71. Organization development practitioners 4 of 6SKILLSStart with processGathering and assessing dataFeedback and decisionForm your planInterveneEvaluate Page 71
  72. 72. Organization development practitioners 5 of 6WHAT DO THEY DO?Establishing relationships with key personnel in theorganization (often called "entering" and"contracting" with the organization)Researching and evaluating systems in theorganization to understand dysfunctions and/orgoals of the systems in the organization("diagnosing" the systems in the organization) Page 72
  73. 73. Organization development practitioners 6 of 6WHAT DO THEY DO?Identifying approaches (or "interventions") toimprove effectiveness of the organization and itspeopleApplying approaches to improve effectiveness(methods of "planned change" in the organization)Evaluating the ongoing effectiveness of theapproaches and their results Page 73
  74. 74. Organizational structure and job design Page 74
  75. 75. Organizational structure and job designTypes of structuresJob designJob descriptionsGlobal organizational development Page 75
  76. 76. Types of organization design Page 76
  77. 77. Types of organization designDivi-sion of Labour (depart-men-tal-iza-tion and/orspe-cial-iza-tion)Depart-men-tal-iza-tion (func-tional, pur-poseand/or location-based)Coor-di-na-tion and Con-trol (chain of com-mand,span of con-trol)Author-ity and Respon-si-bil-ityLine activ-i-ties ver-sus Staff activ-i-tiesJob design Page 77
  78. 78. Organization designprinciples and processes Page 78
  79. 79. Organization design principles and processes 1 of 4CompatibilityMinimal critical specificationsVariance control at sourceBoundary location enabling self-regulationInformation flows first to primary task holderAuthority and resources match whole taskaccountabilityMultifunctional teams Page 79
  80. 80. Organization design principles and processes 2 of 4Congruent support systemsOngoing redesignQuality of working lifeParticipative and democraticStakeholder and strength-centredJoint optimization and innovation Page 80
  81. 81. Organization design principles and processes 3 of 4Build the senior leadership teamDesign the organizational strategyDetermine the structure needed to implement thestrategyDesign the working relationships betweenfunctionsEnsure people are in the right roles for now and inthe future Page 81
  82. 82. Organization design principles and processes 4 of 4Manage performance; ensure that managers areskilled at managerial leadershipStrengthen the role of managers who areresponsible for managing other managersBuild the compensation system Page 82
  83. 83. Three design contexts Page 83
  84. 84. Three design contexts 1 of 71. Hierarchically-integrated, decentralizedOrganization – multiple sub-units/teams within abusiness unit bound by shared resources2. Value Realization Network – multiple entitieswithin an environment bound by shared outcomes3. Social Eco-system – multiple entities within anenvironment bound by shared will for issueresolution Page 84
  85. 85. Three design contexts 2 of 7Hierarchically-integrated, decentralizedOrganization Page 85
  86. 86. Three design contexts 3 of 7Hierarchically-integrated, decentralizedOrganization Page 6
  87. 87. Three design contexts 4 of 7Value Realization Network Page 87
  88. 88. Three design contexts 5 of 7Value Realization Network Page 88
  89. 89. Three design contexts 6 of 7Social Eco-system Page 6
  90. 90. Three design contexts 7 of 7Social Eco-system Page 90
  91. 91. An organization design model Page 91
  92. 92. An organization design model 1 of 3Align organizations with their outsidecircumstances by quickly aligning structuralcomponents (managerial strategy) with the outsideenvironment (contextual variables) Page 92
  93. 93. An organization design model 2 of 3CONTEXTUAL VARIABLESEnvironmentTechnologyCompetitive StrategyOrganizational sizeNature of workforce Page 93
  94. 94. An organization design model 3 of 3TYPICAL STRUCTURAL FORMSgeographycustomer segmentproduct or line of businessprocess Page 94
  95. 95. Trends in organization design Page 95
  96. 96. Trends in organization designDownsizingNature of organizational changesMultidimensionalityNetworkingLateral integrationCustomer orientationProcess orientationKnowledge distribution Page 96
  97. 97. Looking forward Page 97
  98. 98. Looking forwardMore access for leaders and managersMore complete business trainingMore focus on 20% that makes 80%More focus on small organizationsMore focus on community developmentMore integration with other professionsMore on-line diagnosis and interventionMore practical systems toolsFewer myths, e.g. ―Credible if:‖ Page 98
  99. 99. Conclusion & Questions Page 99
  100. 100. ConclusionSummaryVideosQuestions Page 100