Organization Design and Development

Organization Design and Development
The operational and management process of the organization.
It is meant to restructure the organization (if needed). This is
to guarantee efficiency and competitiveness.
Organizational design and development incorporates every
aspect of the organization. This process supports the
mission, goal, and activities of an organization.

STAR Model™
The framework for analyzing organizations

STAR Model™
Definition:
The foundation on
which a company
bases it design
choices
Scope:
The policies are the tools
with which management
must become skilled in order
to shape the decisions and
behaviors of their
organizations effectively
Characteristics:
Framework consists of a
series of 5 policy
categories:
1. Strategy
2. Structure
3. Processes
4. Rewards
5. People
Organization and People
focused
Important Info for the ID:
In a fast-changing business
environment, structure is becoming
less important, while processes,
rewards, and people are becoming
more important
There is no one-size-fits-all
organization design that all
companies–regardless of their
particular strategy needs–should
subscribe to
Implementation Tips and
Tricks:
The Star Model™ shows the levers
that managers can control, and as a
result, can affect employee
behavior but only by acting
through the design policies that
affect behavior
By choosing the desired behavior,
managers can influence the
organization's performance as well
as its culture.

Intervention Components
Empowerment
Organizational
Pro-Action
Organizational
Values

Empowerment Interventions
Interventions that enable people to work to their
highest levels by believing in them, establishing
processes and systems that support their efforts
What are they?
Types of Empowerment Interventions
1. Team Strategies
2. Virtual Teams
3. Problem Solving

Team Strategies
Definition:
A group of team
members working
together as a
cohesive unit to
accomplish an
objective
Scope:
The methods team members
work out in advance to
accomplish the objective.
Based on the philosophy
that people work better and
more creatively in groups
than they do alone
Characteristics:
Team approach is affected
by the composition, size,
cohesiveness and the
environment
Important Info for the ID:
Remember that diversity is
an advantage because team
thinking is more divergent,
innovative and robust
It is the fuel that allows common people
to attain uncommon results
Tricks:
Practitioner assists the team
during the forming stage
(when team gets acquainted)
Helps team set clear
objectives, documents
procedures and methods,
provides coaching and
reinforcement, training on
interpersonal relationships,
and infusing change
management techniques

Virtual Teams
Definition:
Individuals working
across time, space
and organizational
boundaries by webs
of communication
technology
Scope:
Virtual teams interact
electronically from
geographically different
sites to achieve common
organizational goals
Characteristics:
Virtual teams depend heavily
on modern technological
advancements
Important Info for ID:
There are many reasons for
fostering virtual teams,
including: competitive
organizations, globalization,
work schedules etc.
Mutual and Self-Accountability is key
Tricks:
Practitioner works with
others in the organization to
explain the purpose of
virtual teaming and engages
using virtual communication
Also, assists the virtual
team in working in
collaboration, coaches
others to be productive
partners and provides
professional assistance
when needed

Problem Solving
Definition:
The process of defining
a problem from situation
and causes, thinking of
alternatives, evaluating
situations, and making
adjustments
Scope:
Focuses on understanding
the problem and its causes
Uses a variety of ways to
classify problems like:
• Puzzles
• Algorithms
• Troubleshooting
• And others
Characteristics:
Since problems differ in
structure, complexity and
context, they generate
multiple kinds of problem
solving processes
Usually structured to proceed
in steps but the steps can be
carried to meet the needs of
the situation
1. Define the problem
2. Gather information on the causes
3. Choose criteria for judging the
information
4. Explore an ideal solutions and
create realistic options
5. Evaluate the realistic options and
choose the most appropriate
6. Implement the choice and evaluate
the decision
7. Adjust implementation based on
evaluation
Success comes from empowered teams and
individuals working in a healthy environment
Tricks:
Practitioner works with
individuals and teams using
methods like:
• Brainstorming
• Brain writing
• Affinity Diagrams
• And others

Organizational Pro-Action Interventions
Interventions that provide directions that may create
radical change and involves cross-functional and cross-
level approaches
What are they?
Types of Pro-Action Interventions
1. Strategic Planning
2. Environmental Scanning
3. Appreciative Inquiry
4. Outsourcing
5. Benchmarking
6. Balance Scorecard
7. Dashboards

Pro-Action Interventions
Strategic Planning
Definition:
The process by which an
organization envisions
its future and develops
the necessary goals and
procedures to achieve
that vision
Scope:
Strategic Planning is at the
heart of an organization and
reflects the essence of
what the organization does
Creates the blueprint for an
organization and provides
direction, focus, and the
organizational target
Characteristics:
Expressed in terms of mission,
purpose and goals
Usually developed for a five-
year time period, but plans
should be reviewed and updated
annually
Strategic plan must be
easily communicable and
apply to the entire
organization
The core intervention of organizational design
and development
Tricks:
Practitioners will conduct a
variety of scans and a SWOT
Analysis of the company:
• Strengths
• Weaknesses
• Opportunities
• Threats

Environmental Scanning
Definition:
A strategic planning
technique for monitoring
trends in the external
environment of an
organization
Scope:
Provides management with
much of the information
needed to develop and
implement the strategic plan
Focuses on trends and
issues that may have an
effect on the organization’s
future
Characteristics:
Consists of Internal and
External Scanning
Should be an ongoing
activity since trends and
issues can change
Approach should be
thorough and balanced,
including organizational
level, the people level and
the work level
Tricks:
Practitioners explore the Internal
categories of environmental
scanning by considering MANY
areas, such as:
• Communication patterns
• Relationship amongst workers
• Utilization of resources
• Organizational structure
External categories like political,
economic, social, technological and
demographic trends should be
evaluated as wellEmpowers every employee to be observant
and suggest changes that could have a
positive effect on the organization

Appreciative Inquiry
Definition:
The process of
determining what is
working successfully
within an organization
Scope:
Focuses on the achievement
of the best possible
outcomes and practices of
what is successful and is
working well
Four-D Framework:
1. Discovering what is working well
2. Dreaming about optimal performance
3. Designing new systems
4. Destinying or shaping mindset
Four –Ds are inextricably related so
that the output of one phase becomes
the input for the next
Characteristics:
Both a philosophy and a
systematic process
Analyzes positive factors
Keep in mind that
Appreciative Inquiry is also
a philosophy that strives to
bring out the best in people,
the processes and the
environment in which
accomplishment is primary
Systematic in approach, and brings out the
best in people…
Tricks:
Practitioner must view the
organization as high
performing and capable and
that optimal performance is
achievable
Becomes the Appreciative
Inquiry spokesperson for
the organization and
implements and monitors
the Four D Process

Outsourcing
Definition:
The process of contracting
another organization or
changing responsibility of
an area of work that had
been performed inside the
organization to a source
outside of the organization
Scope:
In large organizations, most
operational, no-strategic
human resource functions
are outsourced for various
reasons
Drivers of outsourcing
include: downsizing or
rightsizing, rapid growth or
decline of business,
globalization, increased
competition, restructuring
and the inability of training
arenas to exhibit value
Characteristics:
Strategic move for
companies
Can cause a divide within the
company
Keys to success is to
determine which functions
to outsource, the extent to
which they should be
outsourced, and which ones
to keep in house
Implications are significant to internal and
external worker-organization relationships
Tricks:
Practitioner will assist
leaders in defining their
outsourcing expectations –
this is crucial to maintaining
important parts of the
organization

Benchmarking
Definition:
The process of
comparing two
organizations for the
purpose of identifying
better working methods
and practices
Scope:
Comparing and understanding
the best practices of
competitors helps the
organization’s leadership
identify what must be changed
to achieve the vision
Helps define:
• Customer requirements
• Establish goals and objectives
• Develop true measure of
productivity
• Identify education and training
needs for employees
Characteristics:
• Can be objective in
approach
It is suggested to compare
organizations inside their
field AND outside of their
field. – this will allow the
finding of the BEST
methods and practices
Tricks:
Practitioner evaluates and
monitors the benchmarking
process – not organization’s
own management/leaders

Balance Scorecard
Definition:
Tool that measures and
manages and
organization’s progress
toward goals and
objectives
Scope:
Translates and
organization’s mission and
strategy into a
comprehensive set of
performance measures that
provide the framework for a
strategic measurement and
management system
Characteristics:
Incorporates financial
indicators with perspectives
from:
• Customer
• Internal Business
Processes
• Learning and Growth
Also called a Performance
Measurement and
Management System, and/or
a Strategic Framework for
Action
Provides managers with the instrumentation
needed to navigate to future competitive success
Tricks:
Practitioner may not be well
versed in the ‘hard’ financial
measures of the scorecard
Practitioner is positioned to assist
the organization in developing goals
and appropriate measures for the
following perspectives
1. Customer
2. Areas in which the
organization must excel to
maintain competitive strength
3. Areas the organization needs
to improve
4. Soft, quantifiable
measurements

Dashboards
Definition:
Tools that display
performance indicators,
present data and information
at both summary and detailed
level and assist decision
makers to act on the
information presented in the
dashboard
Scope:
A quick snapshot, using
various visual
representations, of a
business’s big picture and
details
It organizes business
information to support
meaning and use
Characteristics:
Effective dashboards are:
• Simple
• Instructive
• Aesthetically pleasing
Use a variety of data
visualization tools, such as:
• Charts
• Grids
• Gauges
• Maps
Tools need to be:
• Visually effective
• User-friendly
• Efficient
• Provide clarity and
immediacy
Are becoming the preferred way for busy executives
to monitor hey business metrics at a glance
Tricks:
Practitioner works with the
information technologist to
design company dashboards
Must focus on business
critical information and
make it easy to comprehend

Organizational Value Interventions
Interventions that help people succeed by maximizing
the significance of the employee, worker, supplier,
customer and client; encouraging workers to think
globally, and treating people with respect and trust
What are they?
Types of Values Interventions
1. Organizational Culture
2. Diversity/Inclusion Strategies
3. Globalization/Localization
4. Social Responsibility
5. Ethics
6. Decision Making

Organizational Culture
Definition:
A shared system of
values, beliefs, and
behaviors that
characterizes a group or
organization
Scope:
Culture interventions
redefine, clarify, emphasize
or create desired practices
within a group
Consists of the key values
of the organization and the
practices that support
those values
Characteristics:
Often originate from an
organization’s mission and
vision
Culture is pervasive
Culture virtually shapes and
controls employee behavior
Most culture is unwritten
and often is not discussed
Organizational and individual values are the
basic concepts and beliefs- the heart of
culture
Tricks:
Practitioner should be familiar
with cultural issues.
Will lead efforts to conduct a
culture audit of the organization
using an Analysis Procedure,
Focusing on workers, work
processes and the workplace
The goal is to influence both
employee behavior and
performance output

Diversity/Inclusion
Interventions
Definition:
Strategies that take
into account the
physical, cultural human
differences of age,
ethnicity, physical
attributes, race and
sexual/affectional
orientation
Scope:
Strategies build productivity,
innovations, and creativity and
ensure business success.
A diverse workforce enhances
creativity output because people
are able to contribute from their
varied experiences
Characteristics:
Diversity takes into account
primary attributes such as age,
and ethnicity, as well as
secondary attributes like marital
status and religious beliefs
Inclusion is the degree to which
culture respects and values
diversity
Maximizing the unique
perspectives of individual
employees from diverse
backgrounds is a tremendous,
potentially untapped resource
**Diversity requires sensitivity
to people issues and the capacity
to understand data and the
impact of information on planning
and reporting
Can be viewed as an organizational asset that
should be used to the fullest
Tricks:
Practitioners lead diversity
initiatives.
**Diversity requires sensitivity
to people issues and the capacity
to understand data and the
impact of information on planning
and reporting
* *Important for both Designers and Practitioners

Globalization/Localization
Definition:
The process of
identifying an
organization’s major
world market efforts
and resources to achieve
higher productivity and
efficiency
Scope:
Globalization – the process of
achieving higher productivity and
efficiency in major world
markets
Localization – the process of
customizing and adapting a global
application for a particular
culture and locale
Fundamental ideals focus on free
flow of commerce, capital and
labor and the belief that
individuals can significantly
influence large social and
economic systems
Characteristics:
Globalization - Affects
employees, customers and
suppliers
Localization – primarily affects
documentation and content
Often more successful in
smaller organizations
Success is based on the
ability to quickly adjust to
the needs of the customer
It encourages people to attain a new
awareness of both their organization and the
world in which they live
Tricks:
Globalization - Practitioners use the
HPT model to analyze issues or
activities in various locations,
determine internal best practices
and help document the common
practices
Use of change management skills
and process consulting is helpful
Localization – Practitioners
determine cultural appropriateness.
They also oversee the design and
development of training books and
manuals, training equipment, and
work with IT to develop websites

Social Responsibility
Definition:
The interest and true
concern for the well-
being of individuals that
lead to planning,
thinking, doing and
acting in a socially
responsible way
Scope:
A commitment to improve
community well being
through discretionary
business practices and
contributions of corporate
resources
Characteristics:
Interventions include the
organization participating in
social activities and
initiatives that fulfill
commitments to
identified/perceived social
responsibility
When suggesting projects
and activities, try to focus
on keeping the organization
ethical and sensitive to its
internal and external
environment
The bottom line benefits of being socially
responsible are many
Tricks:
To weave and implement
social responsibility into the
fabric of the organization,
work on projects that
employees and customers
really care about

Ethics
Definition:
The standard contact of
good and bad
Scope:
Realizing what is right and wrong,
and then doing what is right
Ethics support and help define
the culture of an organization
Types of Ethics
1. Societal
2. Professional
3. Individual
Characteristics:
Standards of conduct are cultural,
and vary among countries,
organizations, incidents, and
situations
Must be applied to every person
within a group or organization as
well as outside individuals that do
business with the organization
Is continuous and permeates every
aspect of the organization’s fabric
Establish guidelines for the
organization that everyone
is aware of, willing to follow,
and committed to enforcing
Cultivate strong teamwork and productivity…
Tricks:
Practitioners assist in
developing ethics by
focusing on societal,
professional and individual
ethics
They encourage ethical
thinking and practices and
help employees realize the
impact of ethics on the
organization

Decision Making
Definition:
The act of making
judgements and drawing
conclusions
Scope:
Involves placing values on
ideas or options and
determining resulting
actions
The concept of
empowerment extends to
individual workers who
should also be involved in
the decision-making process
Characteristics:
Very subjective- Influenced
by gender, age, moral
philosophy, education, work
experience, organizational
culture, stated and unstated
codes of ethics, and many
others
Decision making can lead to
ethical dilemmas
Often mean changes in organizational culture…
Tricks:
Practitioners can help
establish a culture that
encourages risk taking,
innovation, and where new
thinking is not about the
dollars you invest, but the
people you invest in

Organizational Design and Development
Top 3 Take-A-Ways
1. Organizational Interventions incorporates every aspect of the organization
2. The STAR Model™ can be used to effectively influence the behavior of employees.
“…offering the right intervention set requires understanding of how humans work and
function internally and within organizations that are bounded by environmental,
societal, and economic realities.”
3. The 3 categories for interventions:
1. Empowerment
2. Organizational Pro-Action
3. Organizational Values

References
1. Van Tiem, D., Moseley, J., Dessinger, J. (2012). Fundamentals of Performance Improvement. Optimizing Results Through
People, Process, and Organizations. San Francisco, CA. John Wiley and Sons, Inc.
2. Pershing, James A. (2017). Research and Theory as Necessary Tools for Organizational Training and Performance
Improvement Practitioners. TechTrends: Linking Research and Practice to Improve Learning (v61 n1 p19-25). Retrieved
from http://eric.ed.gov.
3. Galbraith, Jay. R. (1960s). The Star Model. Retrieved from http://www.jaygalbraith.com/services/star-model.

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