BA4017 - ORGANIZATIONAL DESIGN,

CHANGE AND DEVELOPMENT

UNIT I ORGANIZATIONAL DESIGN

Organizational Design
Determinants & Components
Basic Challenges of design – Differentiation, Integration,
Centralization, Decentralization, Standardization, Mutual
adjustment -Mechanistic and Organic Structures
Technological and Environmental Impacts on Design-
Importance of Design – Success and Failures in design.
https://archive.nptel.ac.in/courses/
110/105/110105164/
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT

Organization is a tool people use to coordinate their actions to obtain

something they desire or value—that is, to achieve their goals. People.

Organizational design There is no one best method, and there are no right
or wrong types of organizational design. Instead, each organization must determine
what works best for them. As a result, you may find some elements of every design
structure in a single organization

. An organization’s behavior is the result of its design and the principles behind its
operation.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Determinants of Organization

 Nature of the Objectives

Operative Activities
Technology
Sequence of Tasks
Limitations of Skill and Working Capacity
Managerial Functions
 Size and Scope
Strategy
Social Needs
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT

Functional Design structure

Divisional Design structure
Matrix Design structure
Team Design structure
Network Design structure
Hierarchical Design structure
Flat organization Design structure
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Functional Design structure

A functional structure groups employees into different

departments by work specialization.
Each department has a designated leader highly experienced
in the job functions of each employee supervised by them.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

pros of a functional organizational Design structure:

Scalable.
Operational efficiency.
Encourages employees to specialize their skillsets.
Empower employees to focus on their specific roles and
responsibilities.
Empowers teams and departments with clear, specific goals that
they can work towards.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

cons of a functional org structure:

Leads to poor cross-department communication.
Builds silos.
Creates difficult to understand roles, processes, and workflows
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Divisional organizational

In a divisional organizational structure, the company is

divided into different business units that have complete
control of their budget, resources, and strategy – essentially
acting as an independent company.
 Each division can have its own dedicated marketing, sales,
product, and IT teams.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Divisional organizational
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Market-based divisional org structure:

Divisional organizational structures can be divided by market or customer

type. For example, Walmart could separate its its internal business units by
department and have separate entities that own children’s toys, clothing,
electronics, food and beverage, etc

Industry-based divisional org structure:

Business units can by divided by the industry or use case they target.
Consider Salesforce. It packages it Sales Cloud product to verticals based
on sector, like Education Cloud, Nonprofit Cloud, Health Cloud, etc.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Product-based divisional org structure:

For example, Google has entire organizations that focus only on AdSense,
YouTube, YouTube TV, Google Search, Google Maps, and so forth.
Salesforce has entire division dedicated to Sales Cloud, Slack, Salesforce

Territory-based divisional org structure:

This can be divided into regions (like north, west, south, midwest, etc.), a
country’s states or provinces, by country, or by continent.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Pros of a divisional organizational structure:

Understand individual markets, sectors, and products better.
Promotes flexibility.
Faster responses to changes or needs that are locality or
regional-based.
Autonomous approaches lead to team experimentation and
allow organizations to test multiple strategies, driving innovation
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Cons of a divisional structure:

Can result in duplication efforts like multiple applications that

do the same thing.
Teams and data with poor knowledge transfer.
Poor documentation.
Lack of organizational communication.
Departments compete against one another.
Lack of hierarchy understanding
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Matrix organization
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Matrix organization

An organization may have one or more cross-functional teams

that form for special projects. An individual may work for a
department manager and on a project led by a project manager.
When the project ends, the individual goes back to the
department or takes on another project.
Many types of companies, such as engineers and construction
firms, operate almost entirely on this model of matrix structure.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Advantages
Allows project managers to choose individuals by the needs of
a project.
Encourages employees to use their skills in various capacities
aside from their original roles
It makes the organization more dynamic and malleable.
Disadvantages
Conflicting needs can create friction between department
managers and project managers.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Team-based organization

A particular type of team structure is the learning organization,

which has developed to learn continuously, adapt, and change. Such
an organization gives its people the freedom to adapt to customer
needs as they arise. It requires a strong culture and commitment to
common goals..
These teams can solve problems and make decisions without
bringing in third parties.
Team members are responsible for managing their workload and
have full control over the project. Team-based organizations are
distinguished by little formalization and high flexibility. This
structure works well for global organizations and manufacturers.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Advantages
Organizations that are innovative and knowledgeable
through learning create a significant advantage over their
competitors.

Disadvantage
The organization must have knowledgeable employees
willing to share their knowledge and apply it.
It requires team design and excellent leadership
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Pros of a team-based organizational structure:

Drives growth and innovation.
Promotes lateral career moves.
Provides experiences across departments and teams.
Experience is valued over seniority.
Less emphasis on management.
Encourages lateral moves.
Is more agile and fits well with Scrum models.
Cons of a team-based structure:
No clear authority.
Career path growth is not clear.
Not formalized
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Network structure
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

A network structure goes far beyond your internal company

structure. It’s the act of joining the efforts of two or more
organizations to deliver one product or service. Typically, a
network organization outsources independent contractors or
vendors to complete the work.
Companies that outsource business functions and rely on
external partners, like businesses with extensive supply chains
and franchises, or companies that focus on core competencies
while leveraging partnerships for other operations.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Pros of a network structure:

Promotes organizational agility and flexibility.
Fosters collaboration across employees.
Breaks down silos.
Cultivates better understanding of industry, products, and
customers.
Creates a web of work-related relationships.
Creates highly specialized skills in employees.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Cons of a network structure:

Extremely complex and convoluted.
Lower formalization.
High turnover.
There is a feeling of inequality between full-time
employees and contractors/freelancers.
It’s difficult to know who has final approval.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

hierarchical Design structure

A hierarchical structure is the most common type of

organizational structure. This pyramid-shaped structure follows a
direct chain of command from the top (the CEO) and flows down
the org chart through individual teams and entry-level
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Flat organization structure

MICRO companies or hotel and startups that require faster

decision-making and a collaborative culture,
accelerating innovation and flexibility.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Pros of a flat structure:

More responsibility for employees.
Open communication.
Clear path of approval.
Change and improvement implementation happen fast.
Rewards adaptability, flexibility, and innovation.

Cons of a flat structure:

Not scalable.
Often leads to confusion, as employees lack a clear supervisor or manager.
Relies on one person to be the decision-maker.
Leads to employees with generalized skills with a lack of specializations.
Difficult to maintain when organizations start to scale .
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

What Is the Organizational Environment?

The forces that surround an organization, and can affect organization

performance and constitute, Its is known as an organizational environment.

The forces have a potential effects on all parts (zone) of the organization.

The environment may be categorized as General and specific

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

The Various in the environment may be categorized as General and specific

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Specific Environment

The specific or the task environment comprises force that directly affected an
organizations ability to Acquire resource.
 in order to survive and obtain resource, organization must forge relationships
and engage in transactions with the various external stakeholders like,
customers, competitors, vendors and suppliers dealers and distributors, union
and the governments.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

General environment

The various force that provide shape to the specific environment and affect the
ability of the various organization in a specific environment to acquire resource
constitute the General environment
These force do not directly impact the daily operations of an organization but
have an indirectly impact.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

1. Economic forces:
Type of economy whether developed, developing, or underdeveloped.
Economic situation whether boom (or) recession the state of the economy.
Interest rates all of these are economic factors that can affect organization
performance. (GDP, GNP,FDI, and economic growth of rate.)

2. Technological force :
The company operation are influenced by technology force like development
in manufacturing technology improved production tools and techniques,
advancement in information and communication technology
(labor-technology- customer)
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

3. Political forces:
The government policy pertaining to the organization and their stakeholders
are affected by political force.
The political enveronmental affect the governments attitude towards
industrialization, privatization and globalization
4. Demographic , culture and social forces:
Age mix, gender mix, education and literary level socio-economic level,
lifestyle , value, and norms, as well as other cultural elements of the people in
country also affect organizational performance.
5. Legal
Laws of the land , rules and regulations, and policies and procedures impact
the manner in which organization function.
Rules and regulation pertaining to employment wags and compensation,
social security at affect overall cost.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

6. Competitive environment
Organization performance also affects by the completive environment, market
potential, power of vendors & suppliers as will as dealers and distributors.
Organization must design their structure such that they fit with the
environment.

fit structure
Unfit structure

Organization
Environment
organization Environment
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Environmental uncertainty and source of uncertainty

The various forces in an organization specific and general environment
causes organization uncertainty.
The extent to which the external domain is simple or complex and the extent
to which events are stable or unstable are a determinant of uncertainty.

Environmental complexity :
Complexity may range from simple to complex (surround situation
organization ..like numbers , strength.etc.)
The greater the number, and the greater the differences between them, the
more complex and uncertain is the environment and the more difficult to predict
and control., example - Ford,
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Environment dynamism :
Dynamism may range from stable to unstable ( company resource, supply,
capacity of production)
Environment richness:
Richness may range from poor to rich ( company located poor zone or rich
zone dependent …performance.)
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Uncertainty
The set of forces that cause these problems can be looked at in another way
in terms of how they cause uncertainty because they affect the complexity,
dynamism, and richness of the environment. As these forces cause the
environment to become more complex, less stable, and poorer, the level of
uncertainty increases.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

3. Organization will perform effectively of they learn to manage Uncertainty

Emery and Trist (1965) Carried out a detailed investigation of the organization
environment.
They proposed that meaningful knowledge of an organization requires
understanding of its environment, and they termed this as the causal texture of
the environment.
Emery and trist (1965) identified four different types of environment, ranging
from extremely certain to extremely uncertain
 Placid
 Ordered
 Reaction
 Turbulent
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

According to emery and trist, there exist four ‘ ideal types” of causal textures of
the environment.
 Placid randomized environment
 Placid clustered environment
 Distributed –reactive environment
 Turbulent environment .
Placid randomized environment
Goal/ resource retain relatively unchanged and are randomly distributed ,there
is no difference between tactics and strategies.

Placid clustered environment

Goal/ Resource are clustered unchanging and not randomly distributed
strategies are required for survival and organizations are centrally organized
and well-coordinated.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Distributed- Reactive environment

Similar organizations, co-exist and strategies are required to design

organizational.

Objective to meet challenges from competitors as also to acquire resource.

Control is decentralized so as to adapt to environmental changes.

Turbulent environments
The most complex environment the overall field is an important force and
introduces dynamism to the organization all actors are interlinked
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Duncan (1972)

Introduced another framework that defines the environment as the totality of

physical and social factors that are taken directly into consideration in decision
making behaviors of individuals in the organization.

According to him, the environment can be classified into internal and external .

To analysis as to how perceived uncertainly influenced executive decision

making, Duncan classified organization environments on the basis of two
dimensions viz Simple- Complex and Static dynamic .
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Duncan (1972)

Simplicity
Defined as the extant to which factors that influence decision making in the
internal and external environment are fewer in number and similar to one
another and located in a few components.

Dynamism:
Defined as the extent to which factors considered during decision making,
change, and the frequency with which new and different factors are considered
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Basic Challenges of Organizational Design

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Differentiation The process by which an

organization allocates people and Differentiation is a
resources to organizational tasks and set of processes that
organizations use to
establishes the task and authority deploy employees
relationships that allow the organization to and assets,

achieve its goals.

Division of labor The process of establishing and controlling the degree of

specialization in the organization
In a simple organization, differentiation is low because the division of labor is
low
Individuals typically perform all organizational tasks.
In a complex organization, differentiation is high because the division of labor is
high
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Babu and Aand, the owners, cook and wait tables as needed. They employ
one additional waiter. (3 individuals in the organization).

Integration
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Babu and Anad work in the kitchen full-time . They hire waiters busboys, and
kitchen staff. (22 individuals in the organization)
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Unable to manage both the kitchen and the dining room, they divide tasks
Into two functions, kitchen and dining room, and specialize. Babu runs the
kitchen, and Aand runs the dining room. They also add more staff.
(29 individuals in the organization)
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

The business continues to prosper. Babu and Aand create new tasks and
functions and hire People to manage the function. (52 individuals)
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

See new opportunity to apply their core competences in new restaurant venture.
They open new restaurants, put support functions like purchasing and marketing
under their direct control, and hire Shift managers to manage the kitchen and
dining room in each restaurant. (150 individauls ).
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Construction Blocks of Differentiation

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Organizational Roles
Set of task-related behaviors required of a person by his or her position
in an organization
As the division of labor increases, managers specialize in some roles
and hire people to specialize in others
Specialization allows people to develop their individual abilities and
knowledge within their specific role
Organizational structure is based on a system of
interlocking roles

Authority: The power to hold people accountable for their actions and to
make decisions concerning the use of organizational resources
Control: The ability to coordinate and motivate people to work in the
organization’s interests
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Function & Division

Function: a subunit composed of a group of people,
working together, who possess similar skills or use the
same kind of knowledge, tools, or techniques to perform
their jobs
Division: a subunit that consists of a collection of
functions or departments that share responsibility for
producing a particular good or service
Organizational complexity: the number of different
functions and divisions possessed by an organization
Degree of differentiation
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Support functions: facilitate an organization’s control of

its relations with its environment and its stakeholders,
Purchasing, sales and marketing, public relations and
legal affairs

Production functions: manage and improve the

efficiency of an organization’s conversion processes so
that more value is created

----Production operations, production control, and quality

control
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Maintenance functions: enable an organization to keep

its departments in operation Personnel, engineering and
janitorial services

Adaptive functions: allow an organization to adjust to

changes in the environment Research and development,
market research, and long-range planning
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

ORGANIZATIONAL DESIGN

Vertical differentiation the way an organization designs its

hierarchy of authority and creates reporting relationships
to link organizational roles and subunits.
Establishes the distribution authority between levels

Horizontal differentiation the way an organization

groups organizational tasks into roles and roles

into subunits (functions and divisions)
Roles differentiated according to their main task
responsibilities
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Integration the process of coordinating various tasks,

functions, and divisions so that they work together and not at
cross-purposes
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Types of Integration Mechanisms

Hierarchy of authority dictates “who reports to whom”

Direct contact managers meet face to face to coordinate activities Problematic

that a manager in one function has no authority over a manager in another
Liaison roles a specific manager is given responsibility for coordinating with
managers from other subunits on behalf of their subunits
Task force managers meet in temporary committees to coordinate cross-
functional activities
• Task force members responsible for taking coordinating solutions back
to their respective functions for further input and approval
Teams a permanent task force used to deal with ongoing strategic or
administrative issues
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Integrating role
a new, full-time role established to improve
communications between divisions

Focused on company-wide integration

Integrating department
a new department intended to coordinate the
activities of functions or divisions

Created when many employees enact integrating roles.

BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Managers facing the challenge of deciding how and how much to

differentiate and integrate must

 Carefully guide the process of differentiation so that it develops
the core competences that give the organization a competitive
advantage
 Carefully integrate the organization by choosing appropriate
integrating mechanisms that allow subunits to cooperate and
that build up the organization’s core competences
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Centralized organization the authority to make important

decisions is retained by top level managers
Top managers able to coordinate activities to keep the organization
focused on its goals

Decentralized organization the authority to make important

decisions is delegated to managers at all levels in the hierarchy

Promotes flexibility and responsiveness

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Standardization conformity to specific models or examples

that are considered proper in a given situation

Defined by rules and norms

Mutual adjustment the process through which people
use their judgment rather than standardized rules to
address problems, guide decision making, and
promote coordination.

Formalization the use of rules and procedures to

standardize operations
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Challenge facing managers is

To find a way of using rules and norms to
standardize behavior, and
To allow for mutual adjustment to give
managers opportunity to discover new and better
ways to achieve goals
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Mechanistic structures structures that are designed

to induce people to behave in predictable, accountable
ways
• Emphasis on the vertical command structure

• Roles are defined narrowly

• Promotion is slow and steady

• Best suited to organizations that face stable, unchanging

environments
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Organic structures Structures that promote

flexibility, so people initiate change and can adapt
quickly to changing conditions
Less emphasis on vertical command structure
Roles are defined loosely
Status conferred by ability to provide creative
leadership
Encourages innovative behavior
Suited to dynamic environments
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

UNIT II ORGANIZATIONAL CHANGE

Meaning, Nature, Forces for change- change agents- Change
process-Types and forms of change. Models of change- Resistance to
change – individual factors – organizational factors – techniques to
overcome change- Change programs –job redesign.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Survival and growth

Organization development
Modifying behavioral patterns
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Organization change is defined as change that has

an impact on the way work is performed and has

significant effects on staff.

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Organizational changes are of two types

1. Reactive changes
2. Proactive changes (planned changes).
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Planned change is resulting from a purposeful decision to alter

the organization. it is an intentional, goal-oriented activity.

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Unplanned Change is imposed on the organization and is often

unforeseen
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Forces for change

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Forces for change

BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Pros of a network structure:

Promotes organizational agility and flexibility.
Fosters collaboration across employees.
Breaks down silos.
Cultivates better understanding of industry, products, and
customers.
Creates a web of work-related relationships.
Creates highly specialized skills in employees.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Change Process

Identifying the problem

Recognizing the cause of problem
Implementing the change
Motivating for changes
Managing the transition
Supporting the changes
Evaluating the change
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Identifying the need for change: This can be done at the top level of management
or in other parts of the organization. The change may be due to internal or external
forces.

Defining goals: Define the goals of the change and their intended impact

Developing a plan: Use insights from the preparation phase to determine how to
implement the changes.

Communicating the change: Develop a communication strategy to convey the

change to employees

Providing reasons for the change: Demonstrate the necessity of the change to gain
employee support
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Seeking feedback: Offer employees the opportunity to provide feedback after

communicating the change
Launching the change: Implement the change in stages to avoid overwhelming
employees.
Monitoring the change: Monitor the process to ensure that all employees follow
the proper procedures
Evaluating the change: Work with employees to determine how to measure the
success of the implementation
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Prepare for change. This step involves understanding the necessary changes
and preparing staff members and stakeholders for what's to come. ...
Create a vision for change.
Implement changes.
Embed and solidify changes.
Review and analyze.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Resistance to change factors

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Type of Resistance to Change

1.Psychological resistance
2. Sociological resistance
3. Logical resistance
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

UNIT III ORGANIZATIONAL DEVELOPMENT

Introduction- evolution- basic values and assumptions- foundations of OD-

Process of OD- managing the phases of OD- Organizational diagnosis-
Process-stages- Techniques-Questionnaire, interview, workshop, task-
force- collecting, analyzing- feedback of diagnostic information.

https://online.maryville.edu/online-masters-degrees/management-and-leadership/
resources/organizational-development-guide/
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Organization development is a total approach and a

collection of technique that have Certain philosophy and
body of Knowledge in common.

The goal of organizational development is to create

adaptive organization capable of transforming and
Reinvesting themselves. So as to remain effectives

It is based on many well established principles regarding

the behavior of individuals and groups in organization.

Definition an effort, planned organization-wide and

managed from the top, to increase organization effectiveness
and health through planned intervention in the organization is
process using behavioral – knowledge.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

The primary distinguishing characteristics of OD

OD focuses on culture and processes

OD focuses on the human and social side of the

organization.

OD realize on the action research model with extensive

participation by client system participation

OD takes a developmental view that aims of the betterment

of both individual and the organization.

OD encourage the involvement and participation by all the

level of organization. In the problem solving and decision
making.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

People react to how they are treated ( better treatment

result in better productivity )

Work must meet the individual s needs and the organization

needs

Most people are motivated by challenging and meaningful

work, not controls threats and punishments.

Basic & willing blocks of the organization are groups there

for the units of changes on groups.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Organizational suppress feelings, but their also

suppresses commitment

Groups that learn to work using open and

constructive feedback become better able to be
productive.

People work best in supportive and trusting

environments

Change is best implemented when people part of

the change process.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

The Process of Organizational Development

The organizational development process is a systematic, research-
based series of steps. Common implementation steps include the
following
Identifying an area of improvement.

Investigating the problem

Creating an action plan

Creating motivation and a vision

Implementing

Evaluating initial results

Adapting or continuing
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Identifying an area of improvement

 Organizational change begins with identifying a need that aligns with

business goals. Companies often know that need right away, but they may
consider a data-driven approach to identify problems through formal
surveys and feedback.

this approach allows for a more thorough understanding of the area for
improvement. Companies should ask themselves what they want to
change, and why that change is necessary.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Investigating the problem

Once the area for improvement is identified, companies conduct an

investigation to learn why the problem exists, what the barriers to improvement
are, and what solutions have previously been attempted. T

This step can also include surveys or focus groups and individual
consultations.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Creating an action plan

The company then creates a plan with allocated resources and

clearly defined employee roles.

This plan will include specific support for individuals involved and
identify a measurable goal. During this step, companies should think
about how they’ll communicate changes to staff and manage feedback
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Creating motivation and a vision

Once the company has clearly defined and communicated a plan, its
leaders must motivate their employees to share in a vision.

This step involves leaders acting as enthusiastic role models while

helping employees understand the plan’s big-picture goals and desired
impact.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Implementing

While stability is necessary during implementation, supporting employees

during the transition with mentoring, training, and coaching is equally
important.

When thinking about such support, management should consider what new
skills employees will need and what delivery methods will be most effective.

Ongoing feedback and communication can help make the change process
easier.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Foundations of OD
Leaders and OD practitioners use the knowledge of organization development
theory and practice to plan and implement effective change programs in their
organizations. The knowledge base of OD is extensive and is constantly
growing. Following are the most important underpinnings for the field of OD.

1. Models and theories of planned change

2. Systems theory
3. Participation and empowerment
4. Teams and teamwork
5. Parallel learning structures
6. A normative-re-educative strategy of changing
7. Applied behavioral science
8. Action research
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Kurt Lewin’s Organizational change theories

 Resultant Theory
 Three stage Model Theory

Burke Litwin’s model of Organization change

 First Order Change

 Second Order Change

Porras and Robertson’s model of Organizational Change

 Based on work setting

 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Resultant Theory
 The current state of things at any point is the result of opposing forces.

 Method Used : Force Field Analysis

Force field analysis is a tool that helps identify and analyze the forces that
influence a situation, and how to achieve desired change
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Three Stage Model theory

Unfreezing – Creating readiness
 Lack of confirmation
 Creation of guilt
 Psychological Safety

Changing - viewing things differently

 Identifying a new mentor or new role.
 Scanning environment for data

Refreezing – Integrating with the new scenario

 The new personality

 New Relationships
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Burke–Litwin Model of Change

First Order Change

happens when some features of the organization change

Leads to
 transactional change
 Organizational climate

Second Order Change

Happens when the organization undergoes certain fundamental changes.

Leads to
 transformational change
 Change in organizational culture
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

happens when some features of the organization change

BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Second Order Change Factors

BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

There are two distinct sets of organizational dynamics.

Transactional leaders contribute to normal performance by guiding and

motivating the employees towards the goals.

Transformational leaders are capable of having a profound and extraordinary

effect on the employees

This model states that OD Interventions alter features of work setting

causing changes in individual and organizational improvements.

The work setting plays a central role in this model and consists of four
factors.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Systems Theory

System is an arrangement of interrelated parts”- Hanna.

 Systems operate through the inputput-output mechanism.

Inputs- money, people, raw materials, information etc
 Through put – conversion or transformation
 Output - final product/service
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Features of Open Systems

Goal Oriented
Follows law of Entropy
Emphasis on feedback
Coded information
message that uses a system of words, letters, or symbols to represent
other words in a secret way
Dynamic Homeostasis
the ability of a living organism's body systems to maintain a balance of
chemicals and biological processes on their own
Existence of Subsystems
A subsystem is a procedure or technique that is part of a larger set of
processes or approaches
Differentiation
A method used to compute the rate of change of a function f(x) with respect to its
input x
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

System in Interaction
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Congruence among system elements.

Input factors
Environment
Resources
History
Organizational Elements
Strategy
Work
People
Formal and Informal Organization
Output Factors
System
Unit
Individual
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Analysis of the System Theory

Parts of the Organizational System

Parts of the Environment
Major Variables
Relationship between the variables

Serious mistakes made in business arise because of neglect of one or more

of these four factors.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Benefits of System Theory

1. Effective Problem Solving

2. Effective leadership
3. Effective Communication
4. Effective Planning
5. Effective Organizational development
6. Avoiding founder's syndrome.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Participation and Empowerment

Participation is the act of being involved in an action, such as a decision-

making process.
Objectives of participation
To establish a good communication system
To promote mutual understating between management and workers.
Empowerment is the ability to share control and influence decisions.
Empowerment is the process of sharing power with employees by thomas
and scott,
Significance of empowerment
Save cost, improves morals , enhances management-employee
relationship, offers direct responsibilities
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Teams and teamwork

Team empowerment is a process that gives team members more authority
and responsibility to make decisions and plan their work.
Team is a term which is commonly associated with the sports like cricket,
hockey, football, etc.
Teams work
To attain organizational goals
To develop unity
To improve morale and productivity
To establish team objectives
To improve performance
To increase understanding
To improve efficiency
To identify weakness
To build effective leadership.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Parallel Learning Structure

A supplementing structure coexisting with the usual.

Features are
1. A created structure
2. Operates in parallel
3. Questions the constraints
4. Engages inquiry, initiation and experimentation
5. Ensures Organization effectiveness
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Applied Behavioral Science

Applied Behavioral Science is a combination of Research , Theory and
Science .

Includes basic understanding of theory, practice, principles and

concepts. ( Diagnosis)

Includes techniques, strategies, models, process and paradoxes.

( Treatment)

 Illustrates awareness, observation and interpretation.

BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Managing phases of OD

Empowerment is a phase of organizational development (OD) that

involves giving employees more responsibility and freedom within
guidelines.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Organizational Diagnosis process/Stage

Diagnostic cycle
1. Scouting (clients and consultants)
2. Contracting
3. Study design
4. Data gathering
5. Analysis
6. Feedback

Other effective diagnosis

7. Purpose
8. Design
9. Support and cooperation
10. Participation
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

If good OD begins with good diagnosis, change agents need at least three key
tools.
First, they need solid theories and models about individuals, groups, and
organizations that help them make sense of organizational complexity.
Developing an organization requires a clear concept of what a “healthy” and
“effective” organization looks like, how its members behave, and how all the
parts fit together.

Second, change agents need methods for surfacing and exploring their own
interpretive frameworks and expanding their capacities for multiframe thinking
Organizations are complex and will only become more so. Multiple lenses
enable change agents to bring a full range of perspectives and understandings to
their work and increase the odds of addressing what is really going on in a client
organization
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Techniques of organizational diagnosis

Questionnaire, interviews, workshops and task-forces are the most frequently
used methods of organizational diagnosis in India.

Dimensions Diagnosed through Questionnaire

General organizational health
Organizational culture
Motivational climate
Role oriented variables
HRD Climate
Leadership and supervisory
Job-satisfaction, work motivation and work
Specific Variables
Constructing Questionnaire
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

General organizational health

The comprehensive index deals with the health of the organisation on all
possible variables (psychological, sociological, political, behavioural,
managerial, organisational etc.) that affect the functioning of the
organisation

Organizational culture
The commonly shared attitudes, values, beliefs, norms and behaviour of
employees in the organisation constitutes its culture. Organisational
climate variables are similar to organisational health variabes.
Organisational culture is studied normally in a descriptive way whereas
organisational health is studied in an evaluative way.
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Motivational Climate
Organisations could be diagnosed in terms of the prevailing motives that
characterise the organization’s function. Does concern for excellence
characterise its culture or control? or relationships? or dependence? or
expert power? or helping each other?

HRD Climate HRD climate questionnaire deal with the extent to which a
development oriented climate or learning climate exists in an organisation.
Openness, collaboration, trust, proaction, authenticity, confrontation, risk-taking etc.
are normally characterised as facilitating development culture. Performance
appraisals, training, feedback, counselling, job-rotation, group meetings, career
development plans etc. are considered as instruments to facilitate cha
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Leadership and Supervisory Styles

The human resources management philosophy as believed and practiced
by the supervisory and managerial staff determines also to a large extent
the motivation and morale of people and thereby influences the
organisational functioning. The general philosophy, beliefs, and behaviours
can be measured through question
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Job-Satisfaction, Work Motivation and Work Committment

With the decline of work ethics in some organisations, many diagnostic

efforts are being focused on studies on job-satisfaction, work-motivation, job
involvement and the like. The variables measured give insights into the
existing patterns as well as sources giving rise to dysfunctional behaviours.
Questionnaire to measure elimination, work attitudes also fall in this
category
 BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT

Specific Variables
In addition to these general variables the diagnostic questionnaire may
focus on specific variables depending on the need of the organization. For
example, if communication is perceived as an issue there could be
questionnaire to deal with all aspects of it.
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
BA4017 - ORGANIZATIONAL DESIGN, CHANGE
AND DEVELOPMENT
 BA4017 - ORGANIZATIONAL DESIGN,
CHANGE AND DEVELOPMENT
UNIT I ORGANIZATIONAL DESIGN

Organizational Design
Determinants
Components
Basic Challenges of design – Differentiation, Integration,
Centralization, Decentralization, Standardization, Mutual
adjustment -Mechanistic and Organic Structures
Technological and Environmental Impacts on Design-
Importance of Design – Success and Failures in design.
 BA4017 - ORGANIZATIONAL DESIGN,
CHANGE AND DEVELOPMENT
UNIT I ORGANIZATIONAL DESIGN

Technological and Environmental Impacts on Design-

Importance of Design – Success and Failures in design.
https://www.aihr.com/blog/types-of-organizational-design/

https://whatfix.com/blog/organizational-structure/