Managing

Organizational Change

Soumyaa Srikrishna

Overview

Organization

A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.

Organizational Environment

Organizational environment refers to the forces that can make an impact. Forces made up of opportunities and threats. An organization does not exist in isolation. It works with the overall environment.

These factors are divided into two main parts,

1) InternalEnvironment

2) External Environment,

It is further divided into specific and general environment

Internal Environment

Internal environment refers to people internal to the organization who influence the organizations performance

External Environment

External environment refers to force and institutions outside organization that potentially affect an organizations performance

General Environment

The general environment is composed of the nonspecific elements of the organization's surroundings that might affect its activities.

It consists of five dimensions:

economic

technological

socio-cultural

political-legal and

international

Specific Environment

Consists of five elements: Competitors Customers Suppliers Regulators Strategic partners.

Because these dimensions are associated with specific organizations in the environment, their effects are likely to be more direct and immediate.

Organizational Development

Focus on Result

Learning or transfer of knowledge

Evidence of Improvement

“It’s a system wide application and transfer of behavioral science

knowledge to the planned development, improvement, and

reinforcement of strategies, structures, and processes that lead

to organization effectiveness”

Need for Existence of an Org.

To increase specialization and division of labour

To use large scale technology

To manage the external environment

To economize on transaction costs

To exert power and control

Organizational Effectiveness

“Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals.”

Organizational Effectiveness

Employee Performance

Employee Motivation

Organizational Effectiveness

Measuring Effectiveness

Setting Standards

Selecting Indicators

Outcomes

Processes

Structures

Approaches to Measuring

Organizational Effectiveness

Goal Approach: Effectiveness is the ability to excel at one or more output goals.

Internal Process Approach:Effectiveness is the ability to excel at internal efficiency, coordination, motivation, and employee satisfaction.

System Resource Approach:Effectiveness is the ability to acquire scarce and valued resources from the environment.

Contd…

Constituency Approach:Effectiveness is the ability to satisfy multiple strategic constituencies both within and outside the organization.

Domain Approach: Effectiveness is the ability to excel in one or more among several domains as selected by senior managers.

Organizational Structure

The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.

A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.

CEO

VP - Sales VP - Operations VP - IT

Quality Manager Production Manager

Organization Chart

Visual representation of how a firm intends authority, responsibility, and information to flow within its formal organizational structure.

It usually depicts different management functions (accounting, finance, human resources, marketing, production, R&D, etc.) and their subdivisions as boxes linked with lines along which decision making power travels downwards and answerability travels upwards.

Why Organization Structure?

Structure gives members clear guidelines for how to proceed. A clearly-established structure gives the group a means to maintain order and resolve disagreements.

Structure binds members together. It gives meaning and identity to the people who join the group, as well as to the group itself.

Structure in any organization is inevitable -- an organization, by definition, implies a structure. Your group is going to have some structure whether it chooses to or not. It might as well be the structure which best matches up with what kind of organization you have, what kind of people are in it, and what you see yourself doing.

Selection

Selection is the process of screening applicants to ensure that the most appropriate candidate to suit a position is hired.

The first step in the selection process is to review the information (resume, application form) provided by all applicants to determine which applicants meet the minimum qualifications as per the requirement. No further consideration will be given to those who do not meet the minimum qualifications.

Organizational Reward Systems

Financial Rewards

Social Rewards

Socialization

Organizational socialization, refers to the mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members and insiders. Tactics used in this process include formal meetings, lectures, videos, printed materials, or computer-based orientations to introduce newcomers to their new jobs and organizations.

Case Study & Discussion