Organizational Review


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Organizational Scrutiny

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Organizational Review

  1. 1. Organizational Analysis Wali Memon
  2. 2. Our Personal “Schemas” Schema defined A cognitive structure that represents how individuals construct their own maps of the social world How schemas lead us astray: Schemas become outdated Schemas are resistant to change Schemas become universal rules Schemas are incomplete
  3. 3. Three Classic Lenses on Organizations Strategic Design Lens Political Lens Organization Cultural Lens
  4. 4. Choosing a View of the OrganizationThe strategic design lens How the flow of tasks and information is designed How people are sorted into roles How these roles are related How the organization can be rationally optimized to achieve its goals
  5. 5. Choosing a View (cont’d)The political lens How power and influence are distributed and wielded How multiple stakeholders express their different preferences and get involved in (or excluded from) decisions How conflicts can be resolved
  6. 6. Choosing a View (cont’d)The cultural lens How history has shaped the assumptions and meanings of different people How certain practices take on special meaningfulness and even become rituals How stories and other artifacts shape the feel of an organization
  7. 7. The Strategic Design LensStrategic Design Lens Political Lens Organization Cultural Lens
  8. 8. Key Elements of Organization DesignGrouping (differentiation) Drawing boundaries around clusters of tasks or activities to define jobs, departments, processesLinking (integration) Creating links across organizational boundariesAlignment Positioning elements of the organization (such as rewards and incentives) to provide access to the resources and the incentives to do the tasks assigned
  9. 9. Elements of Organization Design (cont’d)Task Basic element of organization design Smallest unit of activities that need to be performed if organization is to realize strategic goals.Tasks vary in: Complexity Level of routinization Interdependence
  10. 10. Elements of Organization Design (cont’d)Task interdependence varies from low to highKinds of interdependence: Pooled: interdependent tasks are undertaken at the same time Sequential: one task is completed and then handed off for the next stage Reciprocal: tasks are conducted in repeated interaction with each other
  11. 11. Forms of InterdependencePooledSequentialReciprocal
  12. 12. Strategic GroupingBasic grouping structures: By expertise/function By output/product By market (geography or customer)Hybrid grouping structures: Matrix organization Front/back structure
  13. 13. Functional Grouping Structure
  14. 14. Business or Product Division Structure
  15. 15. Marketing Group Structure
  16. 16. Functional/Product Matrix
  17. 17. Front/Back StructureBack End Front End
  18. 18. Strategic LinkingLinking: designing formal/informal structures andprocesses to connect and coordinate unitsLinking mechanisms: Formal reporting structures that follow organization’s hierarchy Liaison roles Integrator roles Permanent and temporary cross-unit groups Information technology systems Planning processes
  19. 19. Strategic AlignmentAlignment: ensuring that units and individuals havenecessary resources and motivationAlignment systems: Organization performance measurement systems Individual rewards and incentives Resource allocation Human resource development Informal systems and processes
  20. 20. Strategic Organizational Design ProcessProcess of design involves costs: Disruption of normal flow of business Risk to long-term relationships with key customers and suppliers Stress and anxietyReasons 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
  21. 21. The Political Lens on OrganizationsStrategic Design Lens Political Lens Organization Cultural Lens
  22. 22. Organization as Political System Politics may be perceived as dark side of an organization Unwillingness to deal with political aspects of organization is a serious handicap for anyone trying to take action in an organizational setting Core concepts of the political perspective: Interests Power
  23. 23. Organization as Political System (cont’d) First step: recognizing that interests are important Organizational behavior grounded in interests Collective interests are those shared by others in a group or category Stakeholders: groups that have a shared “stake” affected by the organization Internal stakeholders—those within an organization External stakeholders—suppliers, customers, communities, shareholders Next step: analyzing what interests are and what priority they have individually and collectively
  24. 24. Organization as Political System (cont’d) Power: ability to influence behavior of others Sources of power: Personal characteristics Scarce and valued expertise Past performance/track record Formal position in organization Informal position in organization or social network
  25. 25. Organization as Political System (cont’d) Influence from social network often more significant than authority from formal position Key factors in power of social networks: Size of network Number of powerful people in network Position in network Redundance vs. efficiency Acting as an information bridge in a “structural hole” in an organizational network
  26. 26. Redundant vs. Efficient Networks
  27. 27. Sources of Power Personal Characteristics Scarce and Valued Energy and physical Expertise stamina Focus Track Record Sensitivity to interests of Formal Position in others Organizational Flexibility Hierarchy Ability to tolerate conflict Informal Network Ability to submerge Position one’s ego in order to get something accomplishedSource: Jeffrey Pfeffer, Managing with Power: Politics and Influence inOrganizations (Boston: Harvard Business School Press, 1992), 165–185.
  28. 28. Using the Political LensSuccessful political strategies for taking effectiveaction in organizations can include: Mapping interests and power Getting “buy-in” Finding allies and building a coalition Building a network Building negotiation skills
  29. 29. Commitment Chart
  30. 30. Stakeholder Mapping Tool
  31. 31. Informal NetworkNetwork analysis shows how informal organizationgets things doneNetwork analysis focuses on three types ofrelationship networks: Advice network—those on whom others depend to solve problems Trust network—employees who share political information and back one another in a crisis Communication network—employees who talk about work-related matters on a regular basis
  32. 32. The Formal Network
  33. 33. The Advice Network
  34. 34. The TrustNetwork
  35. 35. How the CEO Views the Trust Network
  36. 36. The Trust NetworkAccording to CalderFleming ———————— Hoberman
  37. 37. The Cultural Lens on OrganizationsStrategic Design Lens Political Lens Organization Cultural Lens
  38. 38. A Definition of CultureCulture refers to the symbolic or expressive side ofhuman life Actions, objects, and ideas that carry specific meanings to particular groups and hence stand for somethingCulture provides a template on which meanings areread and actions are based
  39. 39. Cultural PerspectiveCultural perspective focuses on meanings peopleassign to their respective work experiencesKey to cultural perspective is symbolismSymbols: Are cultural objects or artifacts whose form, appearance, logic, and type can be categorized Are produced and used by people and groups within organizations for certain purposes Are always put forth in a particular period and context Mean different things to different people
  40. 40. Organizational CultureCulture and control—changing culture to motivateworkers: Alter the organizational structure to bring employees closer to centers of control and decision making Create preferred organizational culture directly by recruitment, selection, training, placement, etc. Promote conceptual models of thought and action for employees to follow Employees that exhibit exemplary behavior become models of desirable behavior
  41. 41. Organizational Culture (cont’d)Subcultures Groups of people who share common identities based on characteristics that transcend or override their prescribed roles and relationships May form along class or ethnic lines because of cultural similaritiesFocus on subcultures emphasizes segmentation oforganization culture Divisions form by organizational role, gender, religion, ethnicity, age, etc.
  42. 42. Cultural Diagnosis of OrganizationsSix important features of the cultural lens onorganizations: Symbols and meaning Identity Social control Subcultures Cultural relativity Habits and history
  43. 43. Some Underlying Dimensions of Organizational Culture 1. The organization’s relationship to its environment 2. The nature of human activity 3. The nature of reality and truth 4. The nature of time 5. The nature of human nature 6. The nature of human relationships 7. Homogeneity vs. diversitySource: Tables adapted from Edgar H. Schein, Organizational Culture and Leadership.Copyright © 1985 by Jossey-Bass, Inc., Publishers. Used with permission.
  44. 44. The Action Company Paradigm
  45. 45. The Multi-CompanyParadigm
  46. 46. Dynacorp Organization Chart
  47. 47. Dynacorp U.S.Customer Operations