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OB - Organization Design & Development


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Based in part on the Organizational Behavior text by Krietner & Kinicki (2009) with a lot of extra material, all cited.

Published in: Education, Business

OB - Organization Design & Development

  1. 1. Organizational Design (OD),Development and Innovation BUSA 220 - Wallace Krietner/Kinicki, 2009
  2. 2. OD Background Krietner/Kinicki, 2009
  3. 3. OD Background Krietner/Kinicki, 2009
  4. 4. Common Characteristics Hierarchy Coordination of of effort authority Common Division of goal labor Krietner/Kinicki, 2009
  5. 5. Typical Org Chart Example of Hospitals Organization Chart Board of Directors Strategic Legal Counsel Chief Executive Planning Officer Officer Cost-Containment Staff President Executive Executive Administrative Medical Director DirectorDirector of Director of Director of Director of Director of Director of Director of Chief Human Admissions Accounting Nutrition X-Ray and Surgery Pharmacy PhysicianResources and Food Laboratory Services Services Director of Director of Patient and Outpatient Public Services Relations Krietner/Kinicki, 2009
  6. 6. Basic Terminology Span of control • The number of people reporting directly to a given manager Staff Personnel – (dotted lines) • Provide research, advice, and recommendations to line managers Line managers – (solid lines) • Have authority to make organizational decisions Krietner/Kinicki, 2009
  7. 7. What Do You Think? True or False? 1. The ideal span of control is 10. 2. Wider spans of control complement employee empowerment trends. 3. Narrower spans of control save costs and are administratively efficient. 4. With wider spans of control, inadequate supervision and less coordination may result Krietner/Kinicki, 2009
  8. 8. Closed vs. Open SystemsClosed Systems Open Systems Krietner/Kinicki, 2009
  9. 9. Open System Organization OutputsInputs Goals and Technical • Products Material Values Subsystem • Services Money Subsystem • Human Human effort satisfaction Managerial • Organization Information Subsystem survival and growth • Social Psychological Structural benefit Subsystem Subsystem Feedback Krietner/Kinicki, 2009
  10. 10. Learning Organizations?Organizations need to develop and become adaptableThe concept of a “learning organization” was made popular in the„90‟s but many organizations have yet to reach their potentialA new measure assesses the three building blocks: • A supportive learning environment • Concrete learning processes and practices • Leadership that reinforces learningCompanies can be strong in some areas and weak in others Krietner/Kinicki, 2009
  11. 11. Organizational LearningExperience Knowledge Purpose Krietner/Kinicki, 2009
  12. 12. Org Learning Building BlocksSupportive Learning Environment • Psychological safety • Appreciation of differences • Openness to new ideas • Time for reflectionConcrete Learning Processes and Practices • Experimentation • Information Collection • Analysis • Education and TrainingLeadership that Reinforces Learning Krietner/Kinicki, 2009
  13. 13. Common StructuresFunctional• Organized according to business function (marketing, finance, etc.)Divisional Structure• Organized by activities related to outputs (e.g., product or service type)Matrix Structure• Horizontal cooperation necessary as is functional knowledge• Typically organized by function vertically and product/service horizontally Krietner/Kinicki, 2009
  14. 14. OD BackgroundWealth of Nations, 1776 OD, 1974 The Nature of the Firm, 1937 Krietner/Kinicki, 2009
  15. 15. Galbraith, 1974 Krietner/Kinicki, 2009
  16. 16. Organization DesignsVertical Lateral (with Vertical tendencies) Krietner/Kinicki, 2009
  17. 17. Organization Designs80’s - Teams 90’s – Communities of Practice Krietner/Kinicki, 2009
  18. 18. Organization Designs 2000’s – Networked Organizations Krietner/Kinicki, 2009
  19. 19. Organization Designs 2000’s – Complex Global Structures Krietner/Kinicki, 2009
  20. 20. Organization Designs 2000’s – Complex Global Structures Krietner/Kinicki, 2009
  21. 21. Holacracy Krietner/Kinicki, 2009
  22. 22. Organization DesignsComplexity – Economies of Scope, NOT Scale Krietner/Kinicki, 2009
  23. 23. CollaborationSource: Krietner/Kinicki, 2009
  24. 24. Collaborative Horizontal Designs Appoint Organize Provide Flatten process around required hierarchy team Let supplier complete expertise and use leaders to and customer workflow from teams to manage contact drive processes outside the manage internal performance.rather than team as everything team tasks required. processes. Krietner/Kinicki, 2009
  25. 25. The White Spaces (Rummler/Brache) CEO Assistant“A primary contribution of a VP VP VP manager at the second level or above is to manage Line Line Line interfaces. The boxes Manager Manager Manager already have managers; the Senior manager adds value Individual Individual Individual Contributor Contributor Contributorby managing the white space between the boxes.” Individual Individual Individual Contributor Contributor Contributor Individual Individual Individual Contributor Contributor Contributor Krietner/Kinicki, 2009
  26. 26. Open BoundariesHollow• Outsourcing non-core processes to those more ableModular• Outsources parts of a product rather than processesVirtual• Temporary company created to respond to an exceptional market opportunity Krietner/Kinicki, 2009
  27. 27. Mechanistic vs. Organic Characteristic Mechanistic Organic Task definition & knowledge Narrow: Technical Broad: General required Linkage between individual’s contribution & organization’s Vague or Indirect Clear or Direct purpose Task flexibility Rigid; Routine Flexible, Varied Specification of techniques, Specific General obligations, & rights Degree of hierarchal control High Low Primary communication pattern Top-Down Lateral Primary decision-making style Authoritative ParticipativeEmphasis on obedience and loyalty High Low Krietner/Kinicki, 2009
  28. 28. What Do You Think? 1. Which decision-making approach tends to be used in mechanistic organizations? a. Decentralized b. Centralized 2. Which decision-making approach tends to be used in unstable and uncertain environments? a. Decentralized b. Centralized Krietner/Kinicki, 2009
  29. 29. Assessing Org Effectiveness Goal AccomplishmentResource InternalAcquisition Processes Strategic Constituencies Satisfaction Krietner/Kinicki, 2009
  30. 30. Signs of Decline1. Excess personnel 8. Loss of effective2. Tolerance of incompetence communication3. Cumbersome administrative 9. Outdated organizational procedures structure4. Disproportionate staff power 10. Increased scapegoating by leaders5. Replacement of substance with form 11. Resistance to change6. Scarcity of clear goals and 12. Low morale decision benchmarks 13. Special interest groups are7. Fear of embarrassment and more vocal conflict 14. Decreased innovation Krietner/Kinicki, 2009
  31. 31. InnovationCreativityInvention InnovationIntegration Krietner/Kinicki, 2009
  32. 32. Seeds of Innovation 1. Hard work in a specific direction 2. Hard work with direction change 3. Curiosity 4. Wealth and money 5. Necessity 6. Combination of seeds 7. Collaboration Krietner/Kinicki, 2009
  33. 33. Breakthrough InnovatorsMore than 2/3rds of directors at leading globalcompanies cite innovation as critical for long-termsuccessHow can we Innovative talent is rare sustaininnovation? Be aware of organizational 5-10% of processes and practices that high How do we potential squelch innovationdevelop future leaders who managers Don‟t base promotions on ability to can facilitate mimic incumbents this goal? Krietner/Kinicki, 2009
  34. 34. Breakthrough InnovatorsWhat innovators look like Strong cognitive abilities Strong analytic skills, can focus on most important points Don‟t rely on past successes Keenly aware of others‟ motivations and interests when “selling” their idea Krietner/Kinicki, 2009
  35. 35. Innovative HotspotsThe Focused Brute Force Hollyworld Large-ScaleFactory • Apply massive • “Global Ecosystems• Invest in a amounts of creative class” • End-to-end handful of low-cost labor • Silicon Valley innovation industries or to different systems with research fields innovative government as• Singapore, projects steward Denmark • Microsoft in • Finland Beijing Krietner/Kinicki, 2009
  36. 36. The Design of Business (Martin) Krietner/Kinicki, 2009
  37. 37. The Design of Business (Martin) Krietner/Kinicki, 2009
  38. 38. What‟s Your Objective? Krietner/Kinicki, 2009