Organizational Theory And Development


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Organizational Theory And Development

  1. 1. Organizational Theory and Development Siena Heights University Dr. Patricia McDonald LDR621 “Organizational Psychology” By: Daniel L. Heady
  2. 2. Contents: <ul><li>What is Organizational Theory and Development? </li></ul><ul><ul><li>Definitions </li></ul></ul><ul><ul><li>Synopsis </li></ul></ul><ul><li>Theories of Organizational Development </li></ul><ul><ul><li>Classical Organizational Theory </li></ul></ul><ul><ul><li>Humanistic Organizational Theory </li></ul></ul><ul><ul><li>Open-System Organizational Theory </li></ul></ul><ul><ul><li>Theory Overview “Cross-Pollinate” </li></ul></ul><ul><li>Define Managerial Procedures </li></ul><ul><ul><li>Exploitative Authoritative Systems </li></ul></ul><ul><ul><li>Benevolent Authoritative Systems </li></ul></ul><ul><ul><li>Consultative Systems </li></ul></ul><ul><ul><li>Participative Group Systems </li></ul></ul><ul><li>Organizational Change Management </li></ul><ul><ul><li>Three Elements of Change Management </li></ul></ul><ul><li>Identify Organizational Goals </li></ul><ul><ul><li>Mission </li></ul></ul><ul><ul><li>Vision </li></ul></ul><ul><li>Conclusion </li></ul><ul><ul><li>Drive a TEAM based methodology and mind-set </li></ul></ul>
  3. 3. “ What is Organizational Theory & Development?” <ul><li>“ Definitions” </li></ul><ul><li>Organization _ </li></ul><ul><li>A group of persons organized for a particular purpose; an </li></ul><ul><li>association. </li></ul><ul><li>Theory_ </li></ul><ul><li>The branch of a science or art consisting of its explanatory </li></ul><ul><li>statements, accepted principles, and methods of analysis, </li></ul><ul><li>as opposed to practice. </li></ul><ul><li>Development_ </li></ul><ul><li>Determination of the best techniques for applying a new </li></ul><ul><li>Devise or process to production of goods or services. </li></ul>
  4. 4. <ul><li>“ Synopsis” </li></ul><ul><li>Organizational Theory and Development is a </li></ul><ul><li>professional deployment of social action and </li></ul><ul><li>procedural methodologies that target a given area </li></ul><ul><li>of scientific study to identify and guide corporate </li></ul><ul><li>needs. This activity not only defines who the </li></ul><ul><li>organization is, but enhances and builds the </li></ul><ul><li>capacity to change and achieve greater </li></ul><ul><li>effectiveness. </li></ul><ul><li>Selecting the right organization theory is crucial </li></ul><ul><li>to define not only operating methods, but defining a </li></ul><ul><li>strategical roadmap. </li></ul>“ What is Organizational Theory & Development?”
  5. 5. Theories of Organizational Development: <ul><li>Classical Organization Theory </li></ul><ul><li>(Shafritz and Ott, 1996) </li></ul><ul><li>This is comprised of four tenets: </li></ul><ul><ul><li>Organizations exist for economic reasons to achieve productivity goals </li></ul></ul><ul><ul><li>Scientific analysis will devise and orchestrate methods for production </li></ul></ul><ul><ul><li>Specialization and strategic deployment of labor will maximize production </li></ul></ul><ul><ul><li>Both employees and the organization act in accordance with rational economic principles. </li></ul></ul>
  6. 6. Theories of Organizational Development: <ul><li>Classical Organization Theory (continued) </li></ul><ul><ul><li>In addition, two particular developments </li></ul></ul><ul><ul><li>occurred within this theory: </li></ul></ul><ul><ul><li>Scientific management </li></ul></ul><ul><ul><li>(Taylor,1900’s) </li></ul></ul><ul><ul><li>This considers that workers are more productive if their work is </li></ul></ul><ul><ul><li>scientifically designed. The method is specifically designed and refined with </li></ul></ul><ul><ul><li>application inputs and results. This aspect of the classical theory is consistent </li></ul></ul><ul><ul><li>with six-sigma procedures used throughout many industries today as </li></ul></ul><ul><ul><li>continuous improvement is driven by a secure and repeatable method defined </li></ul></ul><ul><ul><li>in a problem solving application. (See next slide for example). </li></ul></ul>
  7. 7. PLAN DO STUDY ACT IDENTIFY CORPORATE DIRECTIVE ANALYZE PROJECT NEED’S DEVELOP COMPANY SOLUTIONS IMPLEMENT PROGRAM SOLUTIONS <ul><li>EVALUATE </li></ul><ul><li>THE RESULTS </li></ul><ul><li>OF SUPPORT </li></ul>STANDARDIZE THE SOLUTION <ul><li>Identify TEAM competencies </li></ul><ul><li>Identify TEAM directive/type of service company will target </li></ul><ul><li>Identify Company name </li></ul><ul><li>Identify Mission Statement </li></ul><ul><li>Review Module #1 </li></ul><ul><li>“ Getting Started” </li></ul><ul><li>Review lateral TEAM </li></ul><ul><li>functionality </li></ul><ul><li>Benchmark competition </li></ul><ul><li>Develop Module #2 “Designing </li></ul><ul><li>TEAM Structure” </li></ul><ul><li>Develop Products and Services </li></ul><ul><li>Develop “Work Breakdown </li></ul><ul><li>Structure” for required skill sets </li></ul><ul><li>Develop Module #3 “Management </li></ul><ul><li>and Leadership roles” </li></ul><ul><li>Implement Module #4 </li></ul><ul><li>“ Setting Direction across the </li></ul><ul><li>Organization” </li></ul><ul><li>Implement Module #5 </li></ul><ul><li>“ Building a Framework for </li></ul><ul><li>Decision Making” </li></ul><ul><li>Implement Module #6 </li></ul><ul><li>“ Creating a Framework for </li></ul><ul><li>Communication </li></ul><ul><li>Evaluate: Module #7 </li></ul><ul><li>“ Managing and Improving </li></ul><ul><li>Performance” </li></ul><ul><li>Review and Summarize </li></ul><ul><li>Standardize </li></ul><ul><li>approach, Module </li></ul><ul><li>#8 “Establish TEAM </li></ul><ul><li>Charter </li></ul><ul><li>Standardize, </li></ul><ul><li>Module #9 “Leading </li></ul><ul><li>A Team Based Org. </li></ul>Strategic Marketing Plan and Business Model 6-Step process 1 2 3 4 5 6 Business Problem Solving Model
  8. 8. Theories of Organizational Development: <ul><li>Classical Organization Theory (continued) </li></ul><ul><ul><li>Bureaucracy </li></ul></ul><ul><ul><li>(Weber, 1900’s) </li></ul></ul><ul><ul><li>This facet of the classical organizational theory is comprised of four </li></ul></ul><ul><ul><li>major features. The following considered a mainstay is a bureaucratic </li></ul></ul><ul><ul><li>organization: </li></ul></ul><ul><ul><li>Division of Labor: Each position is a specialized position with its own set of responsibilities. This grooms specific skill sets and individuals to deliver each facet in a product or project life cycle. </li></ul></ul><ul><ul><li>Traditional Organizational Hierarchy: This represents a top-down organizational structure. This is chain of command driven. </li></ul></ul><ul><ul><li>Delegation of Authority: This is where work is distributed by a leader or manager and delegated to a defined responsible participant. This makes understanding employee skill sets crucial for efficient progression. </li></ul></ul><ul><ul><li>Span of Control: This aspect tries to neutralize workforce delegation on an equal basis for all supervisors. If the span of control is to large, a loss of control occurs and substandard results are typical. </li></ul></ul>
  9. 9. Theories of Organizational Development: <ul><li>Humanistic Organization Theory </li></ul><ul><ul><li>Human Relations Movement </li></ul></ul><ul><ul><li>(Katz & Kahn, 1978) </li></ul></ul><ul><ul><ul><li>The human relations movement was driven in a large degree by the </li></ul></ul></ul><ul><ul><li>perceived rigidity of the classical organizational theory. The classical theory </li></ul></ul><ul><ul><li>was considered to disregard human capital including employees’ motives, </li></ul></ul><ul><ul><li>goals, and aspirations. This was emphasized in the human relations </li></ul></ul><ul><ul><li>movement. The relationship between supervisor and subordinate is </li></ul></ul><ul><ul><li>considered instrumental in this theory. In summary, organizational success is </li></ul></ul><ul><ul><li>based on employee motivation and interpersonal relationships that occur </li></ul></ul><ul><ul><li>enhancing productivity. </li></ul></ul>
  10. 10. Theories of Organizational Development: <ul><li>Humanistic Organization Theory (continued) </li></ul><ul><ul><li>Theory X and Theory Y </li></ul></ul><ul><ul><li>(McGregor, 1960) </li></ul></ul><ul><ul><li>Theory X: </li></ul></ul><ul><ul><ul><li>Management assumes the worst of employees. </li></ul></ul></ul><ul><ul><ul><li>Management treats employees with rigid control and without respect. </li></ul></ul></ul><ul><ul><ul><li>Employees respond negatively to shoddy treatment. </li></ul></ul></ul><ul><ul><ul><li>Employees adapt to managements inaccurate assumptions. </li></ul></ul></ul><ul><ul><li>Theory Y: </li></ul></ul><ul><ul><ul><li>Humanistic and developmental orientation to enhance employee growth. </li></ul></ul></ul><ul><ul><ul><li>Managerial commitment and responsibility to provide employee opportunity for advanced development. </li></ul></ul></ul><ul><ul><ul><li>Opportunity to provide goals and devise an achievable roadmap to accomplishment with managerial support. </li></ul></ul></ul>
  11. 11. Theories of Organizational Development: <ul><li>Open System Theory </li></ul><ul><li>(Katz and Kuhn, 1978) </li></ul><ul><li>This is compromised of three basic elements: </li></ul><ul><ul><li>Inputs: Raw materials, Human resources, Energy, and Machinery </li></ul></ul><ul><ul><li>Throughputs: Production processes, Service processes, and Training services </li></ul></ul><ul><ul><li>Outputs: Products, Services, and Knowledge </li></ul></ul><ul><ul><ul><li>This theory drives a constant feedback cycle of lessons learned to </li></ul></ul></ul><ul><ul><li>drive continuous improvement efforts. This includes product and </li></ul></ul><ul><ul><li>employee attitude as targets for this feedback driven system. </li></ul></ul>
  12. 12. Theories of Organizational Development: <ul><li>Theory Overview “Cross-Pollinate” </li></ul><ul><li> The optimal situation required for employee and corporate efficiency should be </li></ul><ul><li>a hybrid with portions of all three theories previously defined. The Classical Theory </li></ul><ul><li>offers “Scientific Management” which is crucial to gain data and weigh against the levels </li></ul><ul><li>of acceptance that define your upper and lower specification limits for acceptance. This </li></ul><ul><li>is your also known as your BATNA (Best Alternative to Negotiated Agreement). Selecting </li></ul><ul><li>the right theory is crucial to optimize corporate performance from a functional </li></ul><ul><li>standpoint and instill a positive environment for personal and professional growth. This </li></ul><ul><li>is a catalyst in the Humanistic Theory “Y”. And finally, the Classical Theory is driven by a </li></ul><ul><li>constant feedback cycle which ultimately harnesses the principles of lessons learned to </li></ul><ul><li>drive continuous improvement. </li></ul><ul><li>In summary, a compilation of these three key ingredients generates a very </li></ul><ul><li>effective approach. The creates my hybrid that I have named the Conglomerate </li></ul><ul><li>Organizational Theory. </li></ul>
  13. 13. Define Managerial Procedures: <ul><li>Participative Management Program </li></ul><ul><li>(Likert, 1950) </li></ul><ul><ul><ul><li> Designing an organization allows a premeditated thought process to </li></ul></ul></ul><ul><ul><ul><li>sculpt the guidelines that will become managerial operating procedures. This is </li></ul></ul></ul><ul><ul><ul><li>a crucial part of organizational theory and development. It allows the initial </li></ul></ul></ul><ul><ul><ul><li>decision makers to decide the fate of operational structure and sets the tone </li></ul></ul></ul><ul><ul><ul><li>for future employee relations. Rensis Likert developed “Likert’s Participative </li></ul></ul></ul><ul><ul><ul><li>Management Program” while heading the Institute for Social Research. This </li></ul></ul></ul><ul><ul><ul><li>characterized that organizations possess one of four types pf management </li></ul></ul></ul><ul><ul><ul><li>systems. </li></ul></ul></ul><ul><ul><ul><li>Exploitative authoritative systems: Exhibits an autocratic top down </li></ul></ul></ul><ul><ul><ul><li>approach to Leadership. Employee motivation is based on punishment and occasional reward. Downward Communication. Top controls corporate destiny. This is not lateral or a Team-based approach. </li></ul></ul></ul>
  14. 14. Define Managerial Procedures: <ul><li>Participative Management Program </li></ul><ul><li>(continued) </li></ul><ul><ul><ul><li>Benevolent authoritative systems: This is similar to the Exploitative </li></ul></ul></ul><ul><ul><ul><li>system but is more paternalistic. Employees are allowed a little more </li></ul></ul></ul><ul><ul><ul><li>interaction, communication, and decision making, but within boundaries </li></ul></ul></ul><ul><ul><ul><li>defined by management. </li></ul></ul></ul><ul><ul><ul><li>Consultative systems: This increases employee interaction, communication, and decision making. Employees are consulted, but management still makes the decisions. Productivity is typically better than the previous two, as employees are more satisfied. </li></ul></ul></ul><ul><ul><ul><li>Participative group systems: Considered the opposite of Exploitative. This represents a structure that allows lateral and vertical movement within an organization. Employees are granted the opportunity to make decisions and delegate. But also share the burden of outcome, good or bad. This is the best assets to gain productivity enhancements as people will be satisfied. This is my choice for a Team organization. </li></ul></ul></ul>
  15. 15. Organizational Change Management: <ul><li>Three Basic Elements of Change: </li></ul><ul><ul><ul><li>Change Agent: This is the individual who initiates the change process. </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Responsible to assess, diagnose, devise a resolution plan, propose, and generate implementation plan and training. </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Client: The recipient and catalyst. </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Client needs drive change. Even internal departments of an organization such as finance should be considered a client. Optimization must be a target for all expenditures internal and external to the organization. </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Intervention: The program or procedure suggested or implemented. </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Must also buy-in to change procedures and proposed modifications prior to implementation. In addition this will be a temporary interruption of status quo. </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Add summary. </li></ul></ul></ul>
  16. 16. Identify Organizational Goals : <ul><li>Crucial Requirements </li></ul><ul><ul><ul><li>Mission: </li></ul></ul></ul><ul><ul><ul><ul><ul><li>A mission describes the long-term purpose of the organization, the range of services offered, the markets to be served, and the social needs served by the organizations existence. </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Vision: </li></ul></ul></ul><ul><ul><ul><ul><ul><li>The vision is comprised of tow crucial elements: </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>A relatively stable core ideology that describes the organizations core values and purpose. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>An envisioned future with bold goals and a vivid description of the desired future state that reflects the specific change under consideration. </li></ul></ul></ul></ul></ul>
  17. 17. Conclusion : Organizational Theory and Development is the opportunity the to optimize corporate effectiveness. This can take place in a new company, or to modify operations for an existing one. This overview is specifically cascading the methodology and procedures to implement a TEAM based structure. This allows employee input with representation from all departments in the decision making process. In summary, it is my belief that employee performance and dedication will be enhanced with this structure. Lateral movement, driven by a strong organizational theory, a committed managerial schematic, an understanding of change management, and an appropriate mission and vision will enhance the bottom line, while encouraging Teamwork and allowing growth opportunities.