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Organizational Design, Diagnosis, and Development

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Organizational Design, Diagnosis, and Development Session 2 Basic Concepts, Models & Effectiveness Basic Concepts, Models & Effectiveness Objectives 1. – PowerPoint PPT presentation

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Title: Organizational Design, Diagnosis, and Development


1
Organizational Design, Diagnosis, and Development
  • Session 2
  • Basic Concepts, Models Effectiveness

2
Basic Concepts, Models Effectiveness
  • Objectives
  • 1. To further consider the role of organizational
    design in strategic management
  • 2. To compare three approaches to organizational
    design
  • 3. To examine criteria for organizational
    effectiveness

3
Organizational Design in Strategic Management
  • Strategy Formulation
  • Assess environment
  • Assess internal strengths weaknesses
  • Formulate Plan
  • Strategy Implementation - Restructuring of
  • Design, Finances, Human Resources, Work,
    Technology

4
Approaches to Organizational Design
  • The emergent process
  • The rational approach
  • The constrained approach

5
The Emergent Process of Design
  • Partial control
  • Multiple participants
  • Dynamic process

6
The Emergent Process
Subsequent Constraints
Changes in Constraints
External Constraints
Initial Constraints
Emergent Design
Emergent Design
Initial Plan
The designer
Change in Participants/ Interests
Initial Participants
Subsequent Participants
Participants
T-0
T-1
7
The Rational Approach
  • External constraints effect design
  • Strategy specifies goals objectives
  • Objectives effect design

8
Michael Hammers 7 Principles
  • Organize around outcomes, (not tasks)
  • Those who use the process should perform it
  • Include information processing in the work that
    produces the information
  • Treat geographically dispersed areas as if the
    were centralized
  • Link parallel activities instead of integrating
    results
  • Put the decision point where the work is
    performed, build control into the process
  • Capture information once and at the source

9
The Constrained Approach
  • External constraints effect the initial design
  • Design should match environmental demands
  • The design effects stakeholders
  • Changes in constraints effect subsequent designs.

10
A Comparison
11
Organizational Effectiveness
  • Output goal approach profit, quality
  • Internal process approach communication,
    decision making
  • Systems resource approach materials and
    knowledge
  • Stakeholder approach External internal
    stakeholders.
  • Managing stakeholders

12
Backwards Forwards
  • Summing up We considered the emergent, rational,
    constrained approaches to organizational
    design. And looked at 4 models for measuring
    effectiveness of the organization
  • Looking ahead Next time we dissect the
    environment of the organization and consider the
    differences between mechanistic and organic
    structures.
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