SYSTEMS AND CONTINGENCY APPROACH

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SYSTEMS AND CONTINGENCY APPROACH TO ORG THEORY
PRACTICE AND TECHNIQUES OF ORGANISATIONAL
DIAGNOSIS
Facilitator and Course Coordinator Vinayshil
Gautam PhD, FRAS(London) (Founder Director IIM K
Leader Consulting Team IIM S) A Al_Sager Chair
Professor and First Head, Management Department,
IIT D Chairman, DKIF
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Theories and their importance

• A theory is a set of assumptions or principles
  that have been repeatedly tested to explain or
  predict facts or phenomena
• Theories
• Provide a conceptual framework
• Provide a common vocabulary
• Guides action
• Assists comprehension or judgment
• Challenge practice wisdom

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Systems Theory

• Ludwig Von Bertalanffy, has long been regarded as
  the Founder of Systems Theory
• He argued that all systems, whether organic or
  organisational, shared similar characteristics
  could be analysed in similar terms

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Systems Theory

• Views the organization as a system of
  interrelated parts that function in a holistic
  way to achieve a common purpose.

McGraw-Hill
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Systems concept Environment

• Organisations are open to their environments

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Systems Concepts Adaptation

• To survive the organisations must adapt to
  its environment
• All non-random functioning systems have
• Inputs ? Processes ? Output ?
• ? Feedback loop with criteria ?
• An organisation that does not produce what is
• reqd by its environment must either change or
• disappear

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Systems Concepts Boundaries

• Boundaries are the interface between a system and
  its subsystems or a system and its environment.
• By examining the boundaries of a system, we can
  often isolate the friction and its causes.

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Systems Concepts Goal Seeking

• Organisations Organisational subsystems tend to
  be goal seeking, that is, they move in the
  direction of goal achievement.
• The primary goal of a system is survival.

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Systems Concepts Cybernetics

• For a system to work properly, it must have
  feedback and control mechanisms
• Feedback and control mechanisms
• Accept information about system outputs
• Evaluate information using goal related criteria
• Use evaluative information as additional i/p

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Systems Concepts Differentiation

• Organisations are complex systems
• Different subsystems become specialised through
  catering for different aspects of organisation
• Various depts of any business org e.g., prodn,
  marketing, finance etc, are all geared to a very
  different environment

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Systems Concepts Synergy

• Systems working well experience synergy where the
  total system output are greater than the sum of
  all inputs.
• For synergy to occur, subsystems must not
  optimize, but cooperate for the good of the
  overall system, e.g., Teamwork.
• Synergy is also called nonsummativity

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Contingency Theory

• Or
• It all depends on the situation

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Contingency Theory

• States that there is no one best way to manage
  an organization.
• Because what works for one organization may not
  work for another
• Situational characteristics (contingencies)
  differ
• Managers need to understand the key contingencies
  that determine the most effective mgt practices
  in a given situation

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Technology

• Lots of research since 1950 has taken place to
  identify the effects of technology upon
  organisations
• Research by Woodward Tavistock Institute
  indicated that Technology influenced

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• Degree of Job dissatisfaction
• Behaviour of Work groups
• Pattern of Industrial relations
• Structure of Organisations

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Technology Degree Of Job Dissatisfaction

• Different technologies have different effect upon
  nature of work degree of job dissatisfaction
• Blauner distinguished between four different
  technologies

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• Craft technology (printing)
• Machine-minding technology (textile)
• Mass prodn technology
• Process technology (chemical)

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Levels of Alienation suffered by people due
to different technologies
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Technology Behaviour Of Work Groups

• Sayles suggested that technology determines not
  only the formation of work groups but also their
  behaviour
• Factors determining the formation of work groups
  
• - Worker skill level reqd by technology
• Degree of interactions between workers permitted
  by technology

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Technology Industrial Relations
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Technology Organisational Structure

• J Woodward carried out one of the most
  influential studies to discover whether
  principles of organisations laid down by an
  expanding body of Mgt theory correlates with
  business success when put into practice

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• Methodology
• About hundred firms were taken as a sample
• They were divided into 3 general categories
  based on their method of production
• - Simple units small batch prodn methods
• - Large batch mass prodn methods
• - Complex process prodn methods
• All these firms were placed along what she called
  continuum of technological complexity

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• Main Findings
• Firms with similar methods of prodn were
  organised in a similar way
• Firms at either end of continuum had similar
  characteristics
• There was a relationship between technology,
  organisational structure economic success
• There was a relationship between technology and
  the pattern of industrial relations

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Socio-Technical Systems

• Socio-technical theory evolved from the field
  work of researchers from Tavistock Institute of
  Human Relations
• Principle finding was that there are social
  implications for every implementation of change
• Measures suggested
• - Set up a structure for intergroup
  communications to solve any problems groups might
  experience

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• - Develop company code to govern relations
  between people at different levels
• Counseling of workers in groups to express
  feelings constructively
• In Tavistock view, a healthy organisation is one
  which is capable of tackling in a realistic
  manner whatever technical, economic, or social
  problems it might encounter

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SOCIOTECHNICAL SYSTEMS

• THEORY EVOLVED FROM THE FDWORK OF
• RESEARCHERS OF TAVISTOCK INSTITUTE OF
• HUMAN RELATIONS
• DEVELOPING OF METHODS FOR SYSTEMATIC
• OBSERVATION OF HUMAN BEHAVIOUR IN
• ORGANISATIONS SO AS TO SOLVE SOCIAL
• PROBLEMS.

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• PROBLEM ?
• SERVICE DEPARTMENT - PIECEWISE PAY VIS A VIS
• FIXED PAY.
• NO CONCERN FOR THE WORKERS INTEREST.
• MANAGERS AND WORKERS SHOWED LACK OFTRUST
• FOR EACH OTHER.
• RESEARCHERS SUGESSTIONS
• MGMT WORKER INTERRELATIONSHIP.
• MORALE BUILDING.

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TAVISTOCK RESEARCH

• THE BASIC PRINCIPLE WAS THERE ARE SOCIAL
• IMPLICATIONS FOREVERY IMPLEMENTATION OF
  CHANGE.
• SETUP STRUCTURE FOR INTERGROUP COMMUNICATION
  TO
• DEAL WITH THE PROBLEMS
• DEVELOPMENT OF A COMPANY CODE GOVERNING THE
• RELATION BETWEEN PEOPLE AT DIFFERENT
  LEVELS.
• MANAGERS SHOULD BE MORE RESPONSIVE TO
• ORGANISATIONAL PROBLEMS.
• BASIC PROBLEM IS MAINTAINING A STRUCTURE AND
  CULTURE
• TO COPE WITH CHALLENGES OF A CHANGING
  SOCIETY.
• HEALTHY ORGANISATION - ONE WHICH IS CAPABLE
  OF
• TACKLING THE PROBLEMS IN A REALISTIC MANNER.
  

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SOCIOTECNICAL SYSTEMS THEORY

• ORGANISATIONS ARE OPEN SYSTEMS.
• DEPEND ON THE ENVIRONMENT FOR RAW MATERIALS
• AS INPUTS AND FOR MARKETS TO ABSORB THEIR
• OUTPUTS OR PRODUCTS.
• CONSIST OF SEVERAL SUBSYSTEMSTO DEFINE THE
• INTERNAL PROCESSES.

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ORGANISATIONAL SYSTEM
ENVIRONMENTAL SYSTEM

• GOALS VALUES SUBSYSTEM
• CULTURE
• PHILOSPHY
• OVERALL GOALS
• INDIVIDUAL GOALS

• TECHNICAL SUBSYSTEM
• TASK REQUIREMENT
• KNOWLEDGE
• TECHNIQUES
• LAYOUT OF FACILITIES
• MACHY EQUIPMENT
• INFORMATION

• MANAGERIAL SUBSYSTEM
• GOAL SETTING
• PLANNING
• ASSEMBLING
• RESOURCE
• ORGANISING
• IMPLEMENTATION

.

• PSYCHOSOCIAL SUBSYSTEM
• HR
• ATTITUDES
• MOTIVATION
• GP DYNAMICS
• LEADERSHIP
• INFLUENCE SYSTEMS

• STRUCTURAL SUBSYSTEM
• TASKS
• WORK FLOWS
• WORK GROUPS
• AUTHORITY
• INFORMATION FLOWS
• PROCEDURES RULES

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TECHNICAL SUBSYSTEM

• ORGANISATION REQUIRES STRUCTURING AND
• INTEGRATING HUMAN ACTIVITIES AROUND
• VARIOUS TECHNOLOGIES.
• EVERY MODERN ORGANISATION IS INFUENCED BY
• THE RAPID ACCELERATION OF TECHNOLOGY IN
• OUR SOCIETY.

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• AFFECTS THE TYPES OF INPUTS AND THE OUTPUTS
• FROM THE SUBSYSTEM AND THUS THE TASK
• ACCOMPLISHMENT.
• WAYS IN WHICH THE ORGANISATION ADAPTS TO
• THE CHANGING TECHNOLOGY HAS A SIGNIFICANT
• IMPACT ON THE OTHER ORG SUBSYSTEMS.

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TECHNICAL SUBSYSTEM

• DEFINITION
• MECHANISTIC VIEW - THE MECHANICAL
  MEANS FOR PRODUCTION OF GOODS AND SERVICES AND
  REPLACEMENT OF HUMAN EFFORT.

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• TECHNOLOGY IS FAR MORE THAN THE MACHINE
• AND REFERS TO STANDARISED MEANS FOR
• ATTAINING A PREDETERMINED OBJECTIVE OR
  
• RESULT. THUS CONVERTS SPONTANEOUS AND
• UNREFLECTIVE BEHAVIOUR INTO BEHAVIOUR THAT
• IS DELIBERATE AND RATIONALISED AND RESULTS
• IN ABSOLUTE EFFICIENCY IN EVERY FIELD OF
• HUMAN ACTIVITY.
• ----JACQUES ELLUL.

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TECHNICAL SUBSYSTEM

• CAN BE PERCEIVED AS AN ENVIRONMENT WITHIN WHICH
  WE
• LIVE ,MADE UP OF EXTERNAL AND TANGIBLE
  THINGSWHICH
• MODIFY US FROM TIME TO TIME AND WHICH MODIFY
  US.
• VIEWED INTERNALLY AS CONSISTING OF SKILLS OF
  BODY
• AND BRAIN AND ADM PROCEDURES AND OF MENTAL
• PROCESSES(CONSCIOUS AND UNCONSCIOUS), SOME
• ASSOCIATED WITH VALUE JUDGEMENTS WHICH RELATE
  MAN
• S OUTER WORLD TO HIS INNER ONE.

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• DETERMINED BY THE
• - TASK REQUIREMENTS OF AN ORG.
• - KNOWLEDGE AND SKILLS
• - MACHINERY AND EQPT INVOLVED.
• - TECHNIQUES.
• - LAYOUT OF FACILITIES.
• - INFORMATION

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TECHNICAL SUBSYSTEM

• ACCELERATING TECHNOLOGY
• SCIENCE AND TECHNOLOGY PERVASIVE FORCES IN
  MODERN
• SOCIETY.
• IMPACTED THE SOCIAL STRUCTURE AND CULTURE.
• AUTOMATION - REPLACED HUMAN DECISION MAKING IN
  THE
• CONTROL PHASE.
• EFFECTIVE UTILISATION OF TECHNOLOGIES REQUIRE
  THE
• DEVELOPMENT OF COMPLEX ORGANISATIONS.

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• DANGERS OF TECHNOLOGY
• WILL DRIVE OUT HUMANISTIC AND SOCIAL
• CONSIDERATIONS.
• TOTAL INTEGRATION OF MAN INTO THE TECHNICAL
• SYSTEM(SOCIOCULTURAL STRUCTURE).
• CHANGES IN VAUES AND GOALS.
• CHALLENGE TO PROFIT FROM ITS OPPORTUNITIES
• ANDCONTAINING ITS DANGERS.
• INTERACTION BETWEEN THE TECH AND
• PSYCHOSOCIAL SYSTEM IS A DETERMINANT OF
• THE RELATIONSHIP BETWEEN TECHNOLOGY AND
• SOCIETY.

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TECHNICAL SUBSYSTEM

• CLASSIFICATION OF TECHNICAL SYSTEMS
• BASIS OF PRIMARY FN - SCHOOLS ,
  HOSPITALS,UNIONS, ETC.
• TECHNICAL SYSTEM BASIS.
• INDUSTRIAL ORGANISATIONS SMALL BATCH MASS
• PRODUCTION AND CONTINUOUS PROCESS.

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• CLASSIFICATION BY THOMPSON
• LONG LINKED TECHNOLOGY INVOLVES SERIAL
• INTERDEPENDENCE BETWEEN VARIOUS
• PRODUCTION UNITS ,eg FULLY AUTOMATED ASSY
• LINE.
• MEDIATING TECHNOLOGY - INVOLVES JOINING OF
• CLIENTS CUSTOMERS ,OTHERWISE
• INDEPENDENT,eg BANKS, POST OFFICES.
• INTENSIVE TECHNOLOGY DEAL WITH SPECIFIC
• PROBLEMS,eg RD, HOSPITALS.
• THE TWO PRIMARY DIMENSIONS HERE ARE
• COMPLEXITY AND DEGREE OF UNIFORMITY OR
• NONUNIFORMITY.

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TECHNICAL SUBSYSTEM

• PROBLEMS
• ADAPTING TO ONE TECHNOLOGICAL COMPONENT.
• INTEGRATING AND COORD A NO OF DIFFERENT
• TECHNOLOGIES WITHIN THE ORG SYSTEM.

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TECHNICAL SUBSYSTEM

• IMPACT OF TECHNICAL SYSTEM
• TRADITIONALLY , TECHNOLOGICAL COMPONENT WAS
• CONSIDERED AS A CLOSED SYSTEM DID NOT HAVE
• ANY DYNAMIC INTERACTION WITH OTHER SYSTEMS .
• LEAD TO UNREALISTIC AND IDEALISTIC
• GENERALISATIONS..
• ACTUALLY TECHNOLOGY AND OTHER SYSTEMS ARE
• INDEPENDENTLY RELATED.

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• THREE BASIC WAYS IN WHICH TECHNOLOGY INFLUENCES
• BEHAVIOUR THROUGH ITS EFFECT ON OTHER INPUTS.
• - HUMAN INPUTS REQUIRED BY AN ORG.
• - GROSS FEATURES OF ORG STRUCTURE AND
• PROCEDURES.
• - DETERMINANT OF INDIVIDUAL AND GROUP JOB
• DESIGNS/SOCIAL STRUCTURE AND NORMS.

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TECHNICAL SUBSYSTEM

• CLASSIFICATION OF TECHNICAL SYSTEMS
• BASIS OF PRIMARY FN - SCHOOLS ,
• OSPITALS,UNIONS, ETC.
• TECHNICAL SYSTEM BASIS.
• INDUSTRIAL ORGANISATIONS SMALL BATCH,
• MASS.PRODUCTION AND CONTINUOUS PROCESS

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• CLASSIFICATION BY THOMPSON
• LONG LINKED TECHNOLOGY INVOLVES SERIAL
• INTERDEPENDENCE BETWEEN VARIOUS PRODUCTION
• UNITS ,eg FULLY AUTOMATED ASSY LINE.
• MEDIATING TECHNOLOGY - INVOLVES JOINING OF
• CLIENTS CUSTOMERS ,OTHERWISE INDEPENDENT,eg
• BANKS, POST OFFICES.
• INTENSIVE TECHNOLOGY DEAL WITH SPECIFIC
• PROBLEMS,eg RD, HOSPITALS.
• THE TWO PRIMARY DIMENSIONS HERE ARE
• COMPLEXITY AND DEGREE OF UNIFORMITY OR
• NONUNIFORMITY.

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TECHNICAL SUBSYSTEM

• IMPACT UPON STRUCTURE
• RESEARCH BY JOAN WOODWARD.
• DIRECT CORRELATION BETWEEN TECHNOLOGY
• AND ORG STRUCTURE .
• ORG CHARACTERISTICS WHICH SHOW A DIRECT
• RELATIONSHIP WITH TECH ADVANCE ARE -

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• - LENGTH OF LINE OF COMMAND
• INCREASES IN VERTICAL LEVELS.
• - SPAN OF CONTROL - INCREASED FROM 4 10, BY
• MANAGEMENT AND COMMITTEE.
• - SALARIES AND WAGES.
• - MANAGER /PERS RATIO INCREASED.
• - STAFF-WORKER RATIO LARGER.
• - SUPERVISION LEVEL HIGHER.
• SYSTEM OF PRODUCTION LEAD TO DIFFERENT
• STRUCTURE.
• OPERATIONS TECHNIQUES HAD LIMITED IMPACT ON
• THE COORDINATIVE SYSTEM.
• STRATEGIC LEVEL ENVIRONMENTAL INFLUENCES ON
• THE BROAD ADMINISTRATIVE STRUCTURE

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TECHNICAL SUBSYSTEM

• IMPACT ON PSYCHOSOCIAL SYSTEM
• TRADITIONALLY , ASSUMPTION WAS ADAPTATION,
• BUT IT AFFECTS THE
• - NETWORK OF SOCIAL RELATIONS AMONG
• WORKERS.
• - SIZE AND COMPOSITION OF WORKGROUPS IN
• RANGE, CHARACTER, FREQUENCY OF CONTACT
• WITH FELLOW WORKERS AND SUPERVISORS.
• .

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- LEAD TO JOB INSECURITIES. - STATUS
POSITION OF THE WORKER . - PHYSICAL AND
SOCIAL MOBILITY. - OUTMODED JOBS. -
SELF IMAGE AND MOTIVATION
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TECHNICAL SUBSYSTEM

• IMPACT ON PSYCHOSOCIAL SYSTEM
• INCREASED SPECIALISATION RESULTED IN
• GREATER PREDICTABILITY OF WORK BEHAVIOUR
• AND INCREASED DISCIPLINE IN THE WORKPLACE.
• ASSY LINE AFFECTS THE SOCIAL ORGANISATION IN
• TERMS OF SIZE , FN AND INTERACTION OF
• WORKGROUPS, INTERPERSONAL RELATIONSHIP,
• RELATIONSHIP WITH THE SUPERVISORS, WAGE
• STRUCTURE AND PROMOTIONAL ASPECTS.

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• ALIENATION AND DISSATISFACTION IN ASSY,
• LINE WORKERS AND MORE MOTIVATION
• INTEGRATION AND SATISFACTION IN CRAFT
• AND CONTINUOUS PROCESS.
• EMOTIONAL STRESS , LACK OF GP IDEN
• WHICH LEAD TO LOSS OF PRODUCTIVITY.

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TECHNICAL SUBSYSTEM

• REMEDIAL MEASURES
• INCREASED PRODUCTION.
• PERSONAL SATISFACTION.
• QUALITY AND EFFICIENCY.
• MAINT HIGH LEVEL OF GROUP MORALE.
• BETTER COORDINATION.
• JOB ENRICHMENT.
• LEAD TO INCREASED ORGANISATIONAL EFFECTIVENESS
  AND EFFICIENCY

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TECHNICAL SUBSYSTEM

• IMPACT ON MANAGERIAL SYSTEM
• SPECIALISED SKILLS AND TRAINING
• IMPACT ON STAFF AND FUNCTIONAL PERSONNEL,
• MIDDLE AND LOWER LEVEL MANAGERS.

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• ROLE OFFIRST LINE MANAGER REQUIRED TO
• INTEGRATE ACTIVITIES ACROSS A BROADER
• SPECTRUM
• SUPERVISORY REQUIREMENTS BOTH IN
• TERMS OF TECHNICAL AND HUMAN
• RELATIONS HAVE INCREASED.
• TRADITIONAL SYSTEM PRIMARY
• CONSIDERATION WAS
• GIVEN TO THE DIFFERENTIATION OR
• SEGMENTATION OF ACTIVITIES INTO
• SUBSYSTEMS FOR TASK PERFORMANCE.

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TECHNICAL SUBSYSTEM

• IMPACT ON MANAGERIAL SYSTEM
• IN TRADITIONAL SYSTEMS PRIMARY CONSIDERATION
• WAS GIVEN TO DIFFERENTIATION OF ACTIVITIES
  INTO
• SUBSYSTEMS.
• IN COMPLEX ORGANISATIONS INCREASED
• DIFFERENTIATION RESULTED IN INTEGRATION
• PROBLEMS IN THE VARIOUS SUBSYSTEMS.

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• BURNS AND STALKER
• MECHANISTIC ADAPTED TO STABLE SYSTEM
• - RIGID ORG STRUCTURE RESEMBLANCE TO
• BUREACRACY
• - WELL DEFINED TASKS,AND THE METHODS ,
  DUTIES
• AND POWERS OF EACH FUNCTIONAL ROLE
  WERE
• DETERMINED PRECISELY.
• - COORDINATIONS INTERACTIONS WERE
  VERTICAL
• COMMAND HIERARCHY.

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TECHNICAL SUBSYSTEM

• ORGANIC SYSTEMS
• ADAPTED TO RAPIDLY CHANGING TECHNOLOGY AND
• ENVIRONMENT .
• SUITABLE TO UNSTABLE CONDITIONS.
• FLEXIBLE STRUCTURE.
• CONTINUOUS ADJUSTMENT AND REDIFINING OF
• INDIVIDUAL TASKS THROUGH INTERACTION A
• NETWORK.

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• LATERAL COMMUNICATION ,WIDE DISPERSAL
• OF POWER BASED ON TECHNICAL EXPERTISE
• AND KNOWLEDGE.
• AUTHORITY AND SUPERIORNOWLEDGE DO NO
• NECESSARILY COINCIDE
• THE PROBLEM - INSECURITY ON THE PART OF
• MANAGERS.
• INNOVATIVE JUDGEMENTAL DECISION MAKING
• WHERE STRESS IS ON PROBLEM SOLVING.
• BUREACRATIC JUNGLE

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ORGANISATIONAL SYSTEM
ENVIRONMENTAL SYSTEM

• GOALS VALUES SUBSYSTEM
• CULTURE
• PHILOSPHY
• OVERALL GOALS
• INDIVIDUAL GOALS

• TECHNICAL SUBSYSTEM
• TASK REQUIREMENT
• KNOWLEDGE
• TECHNIQUES
• LAYOUT OF
• FACILITIES
• MACHY EQUIPMENT
• INFORMATION

• MANAGERIAL SUBSYSTEM
• GOAL SETTING
• PLANNING
• ASSEMBLING
• RESOURCE
• ORGANISING
• IMPLEMENTATION

.

• PSYCHOSOCIAL SUBSYSTEM
• HR
• ATTITUDES
• MOTIVATION
• GP DYNAMICS
• LEADERSHIP
• INFLUENCE SYSTEMS

• STRUCTURAL SUBSYSTEM
• TASKS
• WORK FLOWS
• WORK GROUPS
• AUTHORITY 1ORG CHARTS
• INFORMATION FLOWS
• PROCEDURES RULES

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STRUCTURAL SUBSYSTEM

• ESTABLISHED PATTERN OF RELATIONSHIPS AMONG
• THE COMPONENTS OR PARTS OF AN ORGANISATION
• THAT ARE RELATIVELY STABLE AND THAT CHANGE
• SLOWLY .
• INFERRED FROM THE ACTUAL OPERATIONS AND
• BEHAVIOUR OF THE ORGANISATION .
• ARRANGEMENT OF ITS SUBSYSTEMS AND
• COMPONENTS IN THREE DIMENSIONAL SPACE AT A
• GIVEN MOMENT OF TIME.

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• STRUCTURE AND ITS FUNCTIONS ARE
• SEPARATE PHENOMENA BUT CANNOT BE
• LOOKED AT AS COMPLETELY SEPERATED.
• INITIALLY SET FORTH BY THE DESIGN OF THE
• MAJOR COMPONENTS OR SUBSYSTEMS AND
• THEN BY THE EST OF PATTERNS OF
• RELATIONSHIP AMONG THESE SUBSYSTEMS.
• INTERNAL DIFFERENTATION AND PATTERN OF
• RELATIONSHIPS WITH SOME DEGREE OF
• PERMANENCY REFERRED TO AS
• STRUCTURE.

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STRUCTURAL SUBSYSTEM

• FORMAL AND INFORMAL STRUCTURES.
• FORMAL SLOW IN RESPONDING TO EXTERNAL
• CHANGES SUCH AS TECHNOLOGY CHANGES THUS
• INFORMAL RELATIONSHIPS DEVELOP
• INFORMAL ADAPTIVE AND SERVE TO PERFORM
• INNOVATIVE FUNCTIONS.

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• TRADITIONALLY CONCENTRARATION WAS ON
• THE FORMAL ORG STRUCTURE AND
• INFORMAL RALATIONS WERE OF CONCERN
• BOTH ARE INTERMESHED .
• DIFFICULT TO UNDERSTAND THE NATURE OF
• FORMAL ORG WITHOUT INVESTIGATING THE
• NETWORKS OF INFORMAL RELATIONS AND
• THE UNOFFICIAL NORMS AS WELL AS THE
• FORMAL HIERARCHY OF AUTHORITY AND THE
• OFFICIAL BODY OF RULES..
• CLEAVAGE BETWEEN THE TWO IS ARTIFICIAL.
• TWO BASIC MODELS - BUREACRATIC AND
• MATRIX.

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STRUCTURAL SUBSYSTEM

• IMPACT OF SOCIOCULTURAL ENVIRONMENT
• RESEARCH BY STINCHCOMBE
• STRUCTURE AT THE STRATEGIC LEVEL HAS A GREAT
• IMPACT OF THE FORCES IN THE TASK
• ENVIRONMENT.
• MNCS STRONGLY INFLUENCED BY THE DIFFERING
• CULTURES IN WHICH IT OPERATES AND HAS TO
• ADAPT ITS GOALS STRUCTURE AND MANAGERIAL
• APPROACH TO THE DIFFERENT CULTURE.

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STRUCTURAL SUBSYSTEM

• IMPACT OF SOCIOCULTURAL ENVIRONMENT
• RESEARCH BY CHANDLER
• CHANGING POPULATION ,INCOME ,TECHNOLOGY,
• AND OTHER FORCES IN THE ENVIRONMENT LED
• TO EXPANSIO OF THESE FIRMS INTO NEW FIELDS.
• STRATEGY OF DIVERSIFICATION AND EXPANSION
• LED TO MAJOR MODIFICATIONS IN STRUCTURE

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• LED TO ADOPTION OF A MULTIDIVISIONAL
• STRUCTURE.
• - CENTRAL CORPORATE OFFICE PLANS AND
• COORDINATES THE ACTIVITIES OF A NUMBER
• OF OPERATING DIVISIONS AND ALLOCATES
• PERS ,FACILITIES ,FUNDS AND OTHER
• RESOURCES.
• - OPERATIONS ARE DECENTRALISED TO THE
• OPERATING DIVISIONS WHICH HAVE A
• SUBSTANTIAL DEGREE OF AUTONOMY.

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STRUCTURAL SUBSYSTEM

• IMPACT OF SOCIOCULTURAL ENVIRONMENT
• STRUCTURE OF CONGLOMERATES
• - SMALL CORPORATE HQs.
• - DO NOT EXERCISE STRICT CONTROLOR
• COORDINATE ACTIVITIES OF THE OPERATING
• UNITS

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• SUBUNITS ARE SELF CONTAINED AND
• AUTONOMOUS
• INTEGRATION ACHIEVED THROUGH
• CORPORATE DIVISIONAL INTERACTIONS WITH
• MINIMUM DIVISION TO DIVISION
• INTEGRATION.
• THE BASIC STRATEGY IS TO INTEGRATE AT
• THE STRATEGIC LEVEL.
• IMPACT OF TECHNOLOGY ,SIZE AND
• COMPLEXITY OF ORGANISATIONS.

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ORGANISATIONAL SYSTEM
ENVIRONMENTAL SYSTEM

• GOALS VALUES SUBSYSTEM
• CULTURE
• PHILOSPHY
• OVERALL GOALS
• INDIVIDUAL GOALS

• TECHNICAL SUBSYSTEM
• TASK REQUIREMENT
• KNOWLEDGE
• TECHNIQUES
• LAYOUT OF FACILITIES
• MACHY EQUIPMENT
• INFORMATION

• MANAGERIAL SUBSYSTEM
• GOAL SETTING
• PLANNING
• ASSEMBLING
• RESOURCE
• ORGANISING
• IMPLEMENTATION

.

• PSYCHOSOCIAL SUBSYSTEM
• HR
• ATTITUDES
• MOTIVATION
• GP DYNAMICS
• LEADERSHIP
• INFLUENCE SYSTEMS

• STRUCTURAL SUBSYSTEM
• TASKS
• WORK FLOWS
• WORK GROUPS
• AUTHORITY 1ORG
• CHARTS
• INFORMATION FLOWS
• PROCEDURES RULES

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PSYCHOSOCIAL SUBSYSTEM

• INDIVIDUAL AND THEIR RELATIONSHIPS ARE THE
• PRIMARY ELEMENTS OF THIS SUBSYSTEM.
•  
• PSYCHOSOCIAL SYSTEMS CAN BE UNDERSTOOD
• INTERMS OF MOTIVATION AND BAHAVIOUR
• OCCURRING IN AN ENVIRONMENT WHICH
• INCLUDES

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•  STATUS ROLE SYSTEMS
•  
• SERVE TO STRUCTURE SOCIAL RELATIONSHIPS AND
• PROVIDE A FRAMEWORK WHERE GP ENDEAVOR CAN
• BE COORD TOWARDS OBJECTIVESS.
•  
• ROLE SYSTEMS ARE INTEGRALLY RELATED WITH
• STATUS SYSTEM.
• STATUS CONCERNS THE RELATIVE PRESTIGE OF A
• POSITION IN A STRUCTURAL RELATIONSHIP WITHIN
• ORGANISATIONS.
• ROLE RELATES TO THE BEHAVIORAL PATTERNS IDENT
• FOR A GIVEN POSN.

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PSYCHOSOCIAL SUBSYSTEM

• GROUP DYNAMICS
• SMALL GPS PROVIDE A MEDIATING MECHANISM
• BETWEEN INDLS AND ORGS. 
• ACTIVITIES, INTER ACTION AND SENTIMENTS PLAY AN
• IMP PART IN ORG BEHAVIOUR. 
• INDLS HIGH LEVEL NEEDS (SOCIAL ESTEEM AND SELF
  
• ACTUALISATION) ARE SATISFIEDVIA HIS POSITION IN A
  
• SMALL GP OR A LARGE ORG.
• COMMUNICATION IS THE BASIS OF GROUP DYNAMICS.

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PSYCHOSOCIAL SUBSYSTEM

• INFLUENCE SYSTEMS
• INCLUDES VIRTUALLY ANY INTERPERSONAL
• TRANSACTION WHICH HAS PSYCHOLOGICAL OR
• BEHAVIORAL EFFECTS.
•  
• EXERTED IN MANY DIRECTIONS - UP AND DOWN THE
• HIERARCHY AND LATERALLY IN PEER GROUP
• RELATIONSHIPS.
•  
• CHANGES IN BEHAVIOR OF A PERS/GROUP DUE TO
• ANTICIPATION OF THE RESPONSE OF OTHERS
• RELATIONSHIPS AMONG PEOPLE.
• WAYS TO INFLUENCE BEHAVIOUR - EMULATION
• ,SUGGESTION PERSUASION, COERCION.

76
PSYCHOSOCIAL SUBSYSTEM

• LEADERSHIP
•  
• ABILITY TO PERSUADE TO SEEK DEFINED OBJECTIVES
• ENTHUSIASTICALLY .
•  
• BINDS A GROUP TOGETHER AND MOTIVATES IT TOWARDS
  GOALS.
• TAPPING OF LATENT HUMAN CAPABILITY IN ACHIEVING
  GROUP
• OBJECTIVES.
• MGMT ACTIVITIES SUCH AS PLG ORG AND DM ARE
  DORMANT
• COCOONS UNTIL THE LEADER TRIGGER THE POWER OF
• MOTIVATION IN PEOPLE AND GUIDES THEM TOWARDS
  GOALS.
•  

77
PSYCHOSOCIAL SUBSYSTEM

• HR ATTITUDES.
• NORMS, VALUES AND CULTURE OF THE ORG MAKE UP
• THIS SUB SYSTEM.
•  
• INCLUDES SOCIAL RELATIONSHIPS AND COMMON
• NETWORK.
•  

78

• HOW PEOPLE COMMUNICATE AND ACTUALLY
• DO THE WORK, STRONGLY INFLUENCES THE
• ORG THROUGH THE PSYCHOSOCIAL
• SUBSYSTEM.
•  
• TAVISTOCK EXPERIMENTS PROBLEM WAS
• WORKERS HAD PROBLEM COMMUNICATING
• WITH MANAGEMENT.
• WHEN A PERSON ENTERS OR LEAVES THE
• ORG THE PSYCHOSOCIAL SYSTEM CHANGES.

79
FACTORS AFFECTING HUMAN BEHAVIOUR
CURRENT PERSONAL SITUATION
PAST EXPERIENCE
REWARD SYSTEM ECONOMIC,INCENTIVES

PERCEPTION
MANAGERIAL SYSTEM (PLG CONT DECISIONS
LEADERSHIP)
PERSONAL VALUE SYSTEM (ATTITUDES ,PROPENSITIES TO
ACT)
COGNITION
MOTIVATION
GROUP RELATIONDHIPS
WORK SITUATION (TASK TECHNOLOGY)
CULTURE (NORMS )
80
ORGANISATIONAL SYSTEM
ENVIRONMENTAL SYSTEM

• GOALS VALUES SUBSYSTEM
• CULTURE
• PHILOSPHY
• OVERALL GOALS
• INDIVIDUAL GOALS

• TECHNICAL SUBSYSTEM
• TASK REQUIREMENT
• KNOWLEDGE
• TECHNIQUES
• LAYOUT OF FACILITIES
• MACHY EQUIPMENT
• INFORMATION

• MANAGERIAL SUBSYSTEM
• GOAL SETTING
• PLANNING
• ASSEMBLING
• RESOURCE
• ORGANISING
• IMPLEMENTATION

.

• PSYCHOSOCIAL SUBSYSTEM
• HR
• ATTITUDES
• MOTIVATION
• GP DYNAMICS
• LEADERSHIP
• INFLUENCE SYSTEMS

• STRUCTURAL SUBSYSTEM
• TASKS
• WORK FLOWS
• WORK GROUPS
• AUTHORITY
• INFORMATION FLOWS
• PROCEDURES RULES

81
MANAGERIAL SUBSYSTEM

• MGMT PROCESS OF INTEGRATING HUMAN AND
• MATERIAL RESOURCES INTO A TOTAL SYSTEM FOR
• OBJECTIVE ACCOMPLISHMENT.
•  
• LINKS OTHER PRIMARY SUBSYSTEMS OF ORGS.
•  
• INTEGRATES ACTIVITIES TOWARDS ACHIEVEMENT
• OF EXPLICIT/IMPLICIT GOALS.
•  

82

• PLG CONT ARE THE PRIMARY ACTIVITIES
• INVOLVED IN INTEGRATING PURPOSEFUL ORG
• ACTIVITY.
•  
• PLG CONTROL HAVE TO CONSIDERTHE
• IMPACT OF EXTERNAL ENVIRONMENTAL
• SYSTEM AND THE INTERNAL TECHNICAL AND
• PSYCHOSOCIAL SYSTEM.
• BEHAVIOUR IS GOAL ORIENTED AND HUMAN
• BEINGS MOVE TOWARDS GOALS BY CHOOSING
• AN ALTERNATIVE.
•  
• BEHAVIOUR IS A RESULT OF SEQUENCE OF DM.

83
ORGANISATIONAL SYSTEM
ENVIRONMENTAL SYSTEM

• GOALS VALUES SUBSYSTEM
• CULTURE
• PHILOSPHY
• OVERALL GOALS
• INDIVIDUAL GOALS

• TECHNICAL SUBSYSTEM
• TASK REQUIREMENT
• KNOWLEDGE
• TECHNIQUES
• LAYOUT OF FACILITIES
• MACHY EQUIPMENT
• INFORMATION

• MANAGERIAL SUBSYSTEM
• GOAL SETTING
• PLANNING
• ASSEMBLING
• RESOURCE
• ORGANISING
• IMPLEMENTATION

.

• PSYCHOSOCIAL SUBSYSTEM
• HR
• ATTITUDES
• MOTIVATION
• GP DYNAMICS
• LEADERSHIP
• INFLUENCE SYSTEMS

• STRUCTURAL SUBSYSTEM
• TASKS
• WORK FLOWS
• WORK GROUPS
• AUTHORITY
• INFORMATION FLOWS
• PROCEDURES RULES

84
GOALS AND VALUE SUBSYSTEM

• BASIC VALUES WHICH UNDERLIE GOAL SETTING AND
• DM ARE A FUNDAMENTAL PART OF THE ORG SYSTEM.
•  
• NORMATIVE VIEWS OF WHAT IS GOOD AND DESIRABLE.
•  
• PROVIDE STANDARDS WHICH INFLUENCES CHOICE OF
• ACTIONS.
• SOCIAL VALUES REFLECT A SYSTEM.
• CULTURAL VALUES PROVIDE COHESIVENESS
•  

85

• FIVE LEVELS.
•  
• INDIVIDUAL VALUES.
•  
• GROUP VALUES AFFECT INDL BEHAVIOUR
• AND ACTIONS OF ORG.
• ORGANIZATIONAL VALUES.
•  
• VALUES OF CONSTITUENTS CUSTOMERS,
• COMPETITORS OF ENVIRONMENT AND GOVT
• AGENCIES.
•  
• CULTURAL VALUES VALUES OF THE TOTAL
• SOCIETY.

86
GOALS AND VALUE SUBSYSTEM

• THREE PRIMARY PERSPECTIVES.
•  
• ENVIRONMENTAL LEVEL THE SOCIAL GOALS
• IMPOSED ON THE ORG.
•  
• ORGANISATIONAL LEVEL SYSTEM GOALS.
•  
• INDIVIDUAL LEVEL PARTICIPANTS GOALS.
•  

87

• GOALS - INFLUENCE THE INTERACTIONS WITH
• ENVIRONMENTAL SUPRASYSTEM AND THE
• OTHER SYSTEMS.
• FOCUS THE ATTENTION OF PARTICIPANTS
• UPON ACTIONS WHICH ARE
• ORGANIZATIONALLY RELEVANT.
• HELP DETERMINE THE TECHNOLOGY REQD.
•  
• SET BASIS FOR SPECIALISATION OF EFFORT,
• AUTHORITY PATTERNS , COMMUNICATION AND
• DECISION NETWORKS AND OTHER
• STRUCTURAL RELATIONSHIPS.
•  

88
GOALS AND VALUE SUBSYSTEM

•  
• INFLUENCES ON GOALS
•  
• PERSONALITY OF TOP EXECUTIVES.
•  
• HISTORY OF THE ORG.
• COMMUNITY ENVIRONMENT.
•  
• NORMS ON VALUES WITH WHICH THE ORG DEALS.
•  
• STRUCTURE.
•  
• CULTURAL SAFETY
•  

89

• RESPONDING TO ENVIRONMENT LEADS TO A
• CONTINUOUS NEED TO ELABORATE THE GOAL
• SET OF THE ORG AND IS INFLUENCED BY
• INTERACTION COMPETITION , BARGAINING,
• CO-OPTATION AND COALITION.
•  
• SYSTEM GOALS
•  
• SELF PERPETUATION , STABILITY OF OP, HIGH
• RATE OF RETURN, GROWTH , SATISFACTION OF
• PARTICIPANTS , TECH LEADERSHIP AND
• INNOVATION.

90
SUPRASUBSYSTEM

• EVERY ORG HAS IDENTIFIABLE BUT PERMEABLE
• BOUNDARIES WHICH SEPARATE THEM FROM THEIR
• ENVIRONMENT.
•  
• THEY RECEIVE INPUTS ACROSS THESE BOUNDARIES,
• TRANSFORM THEM AND RETURN OUTPUTS.
•  
• BOUNDARIES PROVIDE A DEGREE OF AUTONOMY AND
• INDEPENDENCE FOR ORG FROM EXTERNAL
• INFLUENCES.
•  
• SELECTIVELY OPEN TO INPUTS, TRANSFORMATIONS
• AND OUTPUT
• ACTS AS A FILTER.
•  .
•  

91

• ORG DO NOT HAVE ANY PRECISE PHYSICAL
• BOUNDARIES.
•  
• ACTIVITIES NECESSARY FOR ORG
• TRANSFORMATION PROCESS DEFINE ITS BDY
• RATHER THAN THE PHYSICAL STRUCTURES.
• BASICALLY STANDARDISES THE INPUTS AND
• OUTPUTS TO THE VARIOUS OP SUBSYSTEMS I.E.
• STRATEGIC AND CO-COORDINATIVE SUB SYSTEMS
• BUFFER THE OP SUB SYSTEMS OF THE ORG FROM
• ENVIRONMENTAL INFLUENCES.
•  
• HETEROGENEOUS AND DYNAMIC ENVIRONMENTS
• LEAD TO COMPLEX AND DIFFERENTIATED THE THE
• INTERNAL STRUCTURING OF THE ORG . 

92
AUTONOMOUS WORKGROUPS

• SOCIO TECH THEORY.
•  
• WORKERS ARE LIKELY TO BE PRODUCTIVE AND
• SATISFIED WHEN THEIR SOCIAL NEEDS ARE MET.
•  
• TAVISTOCK RESEARCHES CONCEPT OF
• AUTONOMOUS WORK GROUPS.
•  
• WORKERS WORK AS A TEAM TO COMPLETE AN
• ENTIRE TASK VIS A VIS WORKERS PERFORMING A
• PARTICULAR CHORE ALONG AN ASSY LIVE.
•  

93

• TWO APPROACHES.
•  
• TEAM BUILDING
•  
• MATRIX ORG COMPROMISE BETWEEN
• STAFF AND COMPLETE
• AUTHORITY.  
• - VERTICAL FLOW OF AUTHORITY FROM
• VARIOUS FM MANAGERS.
•  
• - HORIZONTAL FLOW OF PROJECT AUTH.

94
AUTONOMOUS WORKGROUPS

• CHANGES IN EACH SYSTEM AFFECTS THE OTHER
• SYSTEMS FOR eg
• THE PROBLEM OF RETAINING WORKERS.
• MGMT SUBSYSTEM MGMT OF WORKERS.
• TECHNICAL SUB SYSTEM - AVAILABILITYOF TOOLS
• AND RESOURCES.
•  
• PSYCHO SOCIAL SUB SYSTEM --- INTER PERSONNEL
• RELATIONSHIPS.
•  

95
UNCERTAINITY

•  
• BURNS AND STALKER SUGGESTED TWO
• FACTORS DETERMINANT OF ORG STRUCTURE
• AND PERFORMANCE - RATE OF CHANGE AND
• THE LEVEL OF UNCERTAINITY IN THE
• ENVIRONMENT.TWO TYPES OF SYSTEMS
• RECOMMENDED.

96

• LAWRENCE AND LORSCH 
• SPECIALISED SYSTEM DEVELOP IN RESPONSE TO
• DIFFERENT ASPECTS OF THE ORGANISATION
• ENVIRONMENT.
• PRODUCTION DEPATRMENTS WHICH HAD STABLE
• ENVIRONMENTAL CONDITIONS TEND TO BE MORE
• BUREACRATIC THAN RESEARCH DEPARTMENT.
• HIGH LEVEL OF DIFFERENTIATION REQUIRED BY THE
• ENVIRONMENT LED TO THE PROBLEM OF
• INTEGRATING THE DEPARTMENT.
• THIS PROBLEM SOLVED BY SOME FIRMS EMPLOYING
• A GROUP OF MANAGERS TO COORDINATE THE
• DIFFERENT DEPARTMENTS.

97
AFFECT OF SIZE

•  
• RELATIONSHIP BETWEEN SIZE AND LEVEL OF
• BUREACRATISATION
• ORG SIZE AND JOB SATISFACTION STUDY BY
• REVANS AND PORTER--- LARGER THE ORG
• LOWER THE JOB SATISFACTION LEVEL ,HIGH
• LEVEL OF ABSENTEEISM AND LABOUR
• TURNOVER.

98

• ORG SIZE AND UNIONISATION
• BAIN SUGGESTS A STRONG POSITIVE
• CORRELATION BETWEEN ORG SIZE AND WHITE
• COLLAR UNIONISATION.
• ORG SIZE AND STRIKE PRONENESS
• RESEARCH BY DOE AND PRAIS SUGGEST
• LARGER THE FACTORY GREATER THE
• FREQUENCY OF STRIKES.

99
Contingency Theory as a Model of Change

• Systems thinking approach adopted by Lawrence
• and Lorsch
• Studied the characteristics of organizations
  and their
• environment.
• Believed that determining the best structure and
  
• leadership for an organization is contingent on
  the
• relation of the organization to its
  environment.
• The systems that constitute the organizations
  are
• affected by boundaries and by a process
  called
• differentiation integration.

100

• Boundaries
• The boundary between an open system and its
  environment is permeable similar to cells in
  human body.
• Sales people going out in the market to sell.
• Resource mobilization like physical goods and
  human resource from environment.
• The problems in an organization first becomes
  visible at the boundaries.
• Drop in sales and complaints from customer a
  sign of organizations unresponsiveness towards
  customers needs
• Organizations must be attuned and responsive to
  environmental changes that occur at the boundary.

101
Contingency Theory as a Model of Change ..Contd..

• Integration
• Specialized groups / units for tasks
• Independent style of interaction with the
  organization
• Different impact of their behavior on
  organization
• Need for coordination between units to achieve
• organizations overall goals

102

• The effective coordination between units is
  called
• Integration
• Need for appropriate structure such as
  bureaucratic or matrix
• Need for appropriate leadership
• Differentiation
• The organizational units vary on following four
  dimensions
• Formality of structure
• Goal Orientation
• Time Orientation
• Interpersonal Orientation

103
Formal and Informal Systems

• Deals with
• The formal policies and procedures of the
  organization.
• The informal ways in which organizational
  members work together.
• Two theories have been put forward by
• Marvin Weisbords
• The Six box model Formal Systems
• The organizational fit Formal and Informal
  Interactions
• Nadler Tushmans
• Congruence Model - Formal and Informal
  Interactions

104
The 6 Box Model
Purposes What business are we in? Agreement on
goals in missions
Relationships How do we manage conflict among
people with technologies? How do workers get along
Structure How do we assign the work and how it
gets done?
Leadership Does some one keep the boxes in
balance?
Helpful mechanisms Have we adequate coordinating
technologies? Like budgeting, planning control,
and management information
Rewards Do all needed tasks have incentives?
105
Organizational Fit

• How the organization fits within its environment
• Compatibility with customers, government, union
• How the individual fits with in the organization
• Compatibility of individuals personal values,
  political orientation, hobbies, style of dress
  with other organizational members

106
The Congruence Model

• Organization draws inputs from environment in
  the following form
• Capital, raw material, technology and people
• Organization history
• Pattern of employee behavior
• Organizational policies and procedures
• Managements method for decision making
• The model takes into account the inputs and
  resulting output after transformation

107

• The transformation process includes four
  components
• Task job and their inherent characteristics
• Informal organizational structure social
  structure among organizational members including
  informal communication, politics and authority
  structure
• Individual personal characteristics of
  employee such as age, sex, education
• Formal organizational arrangements documented
  managerial and operational structure, the pay
  system, the management information system
• Outputs are the outcomes for the organization,
  the work group and the individual.

108
A Change Based Organizational Framework

• According to Porras and Robertson model, the
  factors in the internal organizational
  environment that shape and guide the behavior of
  workers fit into four categories
• Organizing arrangements the formal elements
  that coordinate the behavior of people and groups
  in an organization
• Goals Strategies
• Structure administrative policies and
  procedures
• Administrative system reward system
• Ownership

109

• Social factors characteristics of the people
  in the organization and their relations
• The culture, management style, interaction
  process, informal patterns networks and
  individual attributes
• Physical settings
• The building and locations
• Technology
• Equipments, IT, job design, work flow design,
  technical expertise procedures and technical
  systems

110
Thank You