Organizational Development and Change Management

Textbook Daft, R. L., Murphy, J. and Willmott, H. (2010).

Main Course Objective To enable you to analyse how and why different kinds of organizations are more or less effective in achieving particular objectives. The course focuses on the key components of organisations that together generate distinctive collective competences and capabilities. It focuses on the meso level.

Levels of Organizational Analysis Micro - individuals and groups in organisations (organisational behaviour, HRM) Meso structures, systems and strategies of organisations (organisation design) Macro organisations and markets in social systems and the global economy ( strategy)

Objectives of Today’s Session To highlight the ways in which organizational design links to strategy and the external environment To discuss those links

Question Looking at the following statement from Google’s website, can you identify what its strategy might be? In groups, discuss your thoughts.

Google’s Philosophy Google became successful precisely because we were better and faster at finding the right answer than other search engines at the time. But technology has come a long way since then, and the face of the web has changed. Recognizing that search is a problem that will never be solved, we continue to push the limits of existing technology to provide a fast, accurate and easy-to-use service that anyone seeking information can access. We've also taken the lessons we've learned from search to tackle even more challenges. Source: http://www.google.com/corporate/tenthings.html

Questions Google underpins this strategy with some core principles. What issues/problems are raised for managers as a result of these issues? In other words, what ‘things’ must managers deal with in meeting those principles? (Some of) these ‘things’ are at the core of organization design.

Google’s Principles I These core principles guide our actions. 1. Focus on the user and all else will follow. Since the beginning, we've focused on providing the best user experience possible. Whether we're designing a new Internet browser or a new tweak to the look of the homepage, we take great care to ensure that they will ultimately serve you, rather than our own internal goal or bottom line. 2. It's best to do one thing really, really well. We do search. With one of the world's largest research groups focused exclusively on solving search problems, we know what we do well, and how we could do it better. Our dedication to improving search helps us apply what we've learned to new products, like Gmail and Google Maps

Key Managerial Issues in Organisation Design and Change Management Google principle 1: How to manage relationships with customers, and investors How to integrate and control operational units for strategic goals How to allocate, coordinate and control tasks Google principle 2: Which activities and skills to keep in the organisation and which to outsource How to attract, select, reward and retain employees

Google’s Principles II 9. You can be serious without a suit. Our founders built Google around the idea that work should be challenging, and the challenge should be fun. We believe that great, creative things are more likely to happen with the right company culture. There is an emphasis on team achievements and pride in individual accomplishments that contribute to our overall success. Our atmosphere may be casual, but as new ideas emerge in a café line, they are traded, tested and put into practice with dizzying speed.

Key Managerial Issues in Organisation Design Google principle 9: How to attract, select, reward and retain employees How to allocate, coordinate and control tasks How to group activities and employees into departments, divisions and subsidiaries How to integrate and control operational units for strategic goals

Key Managerial Issues in Organisation Design How to allocate, coordinate and control tasks How to attract, select, reward and retain employees How to group activities and employees into departments, divisions and subsidiaries How to integrate and control operational units for strategic goals Which activities and skills to keep in the organisation and which to outsource How to manage relationships with suppliers, customers, competitors, investors and other organisations

ORGANISATIONS AS OPEN SYSTEMS

COMPONENTS OF WORK ORGANISATIONS 1. Operating Core - those who transform the basic inputs into outputs 2. Middle Line those who administer and supervise operators 3. Technostructure those who standardise how work is carried out and controlled 4. Support Staff those who provide support services for the organisation outside the operating workflow 5. Strategic Apex those who allocate resources, manage relations with the environment and determine strategies and goals – the dominant coalition

DIMENSIONS OF ORGANISATIONS STRUCTURAL Formalisation Specialisation Standardisation Authority Hierarchy Complexity Centralisation Skill Level Personnel Ratios SYSTEMIC (CONTEXTUAL) Size Technology Environment Goals and Strategy Culture

W. L. Gore Wal-Mart State arts agency

KEY ORGANISATIONAL COMPONENTS PRIMARY TASK INDIVIDUALS FORMAL CO-ORDINATION INFORMAL RULES AND PROCESSES DEFINITION BASIC ACTIVITY OF ORGANISATION CHARACTERISTICS OF HUMAN RESOURCES FORMAL AUTHORITY AND CONTROL STRUCTURES EMERGENT NORMS, PROCEDURES AND NETWORKS OF INFLUENCE AND COMMUNICATION CRITICAL CHARACTERISTICS TYPES OF SKILL AND KNOWLEDGE REQUIRED KNOWLEDGE AND SKILLS GROUPING OF FUNCTIONS, SUBUNITS AND DEPTS. LEADER BEHAVIOUR TYPES OF REWARDS WORK CAN PROVIDE NEEDS AND PREFERENCES PERFORMANCE AND MONITORING, EVALUATION AND REWARD SYSTEM INTER- AND INTRA-GROUP RELATIONS UNCERTAINTY OF WORK PERCEPTIONS AND EXPECTATIONS CO-ORDINATION PROCEDURES INFORMAL WORK NORMS AND RELATIONS LIMITATIONS ON PERFORMANCE INHERENT IN WORK DEMOGRAPHIC AND CULTURAL CHARACTERISTICS PERSONNEL POLICIES AND PROCEDURES COMMUNICATION AND INFLUENCE PATTERNS