Chapter 8: OD interventions: Strategy and structure

Prepared by :Nur Nabeelah Amnah

Nik Nur Fathiah Norfariha IzzatyNurul Hanisah

Khaizatul Aqilah

Open Systems PlanningUnderlying assumptions of Open Systems Planning (OSP)

Implementation process

Guidelines for implementation

OSP Implementation Process1) Assess the external environment

2) Assess how the organisation responds to the external environment

3) Identify the core mission of the organisation

4) Create a realistic future scenario of environmental expectations and organisational responses

5) Create an ideal future scenario of environmental expectations and organisation responses

6) Compare the present with the ideal future and prepare an action plan for reducing the discrepancy

Guidelines for Implementing OSP

• Devote sufficient time and resources

• Document all steps

• Deal only with key parts of the environment

• Follow the steps in order

• View planning as a process, not an outcome

Transorganisational Development

• An emerging form of planned change aimed at helping organisations develop collective and collaborative strategies with other organisations

• When one organisation forms a partnership with another to perform tasks and solve problems that are too complex to be handled alone

Transorganisational Development (TSs) and Their Problems

• TSs are complex• Tend to be underorganised and

– relationships among member organisations are loosely coupled;

– leadership and power are dispersed among autonomous organisations rather than hierarchically centralised; and

– commitment and membership are tenuous as member organisations attempt to maintain their autonomy while coming together for the common purpose

TD application stages

Identification Convention Organisation Evaluation

Who shouldbelong to theTS?• Relevant skills, knowledge and resources• Key stakeholders

Should a TSbe created?• Costs and benefits• Task perceptions

How to organise fortask performance?• Communication• Leadership• Policies and procedures

How is the TSperforming?•Performance outcomes• Quality of interaction• Member satisfaction

Who shouldbelong to theTS?• Relevant skills, knowledge and resources• Key stakeholders

Should a TSbe created?• Costs and benefits• Task perceptions

How to organise fortask performance?• Communication• Leadership• Policies and procedures

How is the TSperforming?•Performance outcomes• Quality of interaction• Member satisfaction

Restructuring Organisations

• Downsizing is reducing the overall size and operating costs of a company which is most directly through a reduction in the total number of employees to improve efficiency and effectiveness of organization.

•Downsizing is being regarded by management as one of the preferred way to turning

around declining organisations, cutting costs, and improving organisational

performance, most often as a cost-cutting measure.

A) Downsizing

Application StageSuccessful downsizing interventions tend to proceed in thefollowing step:

STEP 1: Clarify the organisation’s strategy

STEP 2:Assess downsizing options and make relevant choicesSTEP 3: Implement the changes

STEP 4: Address the needs of survivors and those who leave

STEP 5: Follow through with growth plans

Tactic Characteristics Examples

Workforcereduction

•Reduces headcount•Short-term focus•Fosters transition

•Attrition•Retirement/buyout•Lay-offs

Organisationredesign

•Changes organisation•Medium-term focus•Fosters transition and transformation

•Eliminate functions, layers, products•Merge units•Redesign tasks

Systemic•Changes culture•Long-term focus•Fosters transformation

•Change responsibilities•Foster continuous improvement•Downsizing is normal

Downsizing Tactics (Cameron, Freeman and Mishra, 1991) Figure 8.6

Advantages of Downsizing

Financial SavingsIncrease employees productivityMotivate employees to work hardBuilds Loyalty

Disadvantages of Downsizing

Productivity and Creativity DropsSkill and Knowledge LossEmployee StressNegative Business Image

B) Re-Engineering

Known as business process redesign, business transformation, or

business process change management.

Is the systematic transformation of an existing system into a new form of

system.

It help organizations fundamentally rethink how they do their work in

order to dramatically improve in operation, system capability, functionality,

performance, or operate at a lower cost, schedule, or risk to the customer.

Advantage of Business processre-engineering

Increase EffectivenessReduces costImprovement in organizational approachMeaningful job for employees

Work Design

What is work design? (Job Design)

An arrangement in workplace that has the objective of overcoming employee alienation and job dissatisfaction that comes about from mechanical and repetitive tasks in the workplace.

Normally used by organization to boost productivity by offering employee non-monetary rewards.

Three Approaches to Work

Design

Engineering approach

Sociotechnical Systems (STS)

approachMotivational

approach

• Engineering approach • Focuses on efficiency and simplification and results

in traditional jobs and work groups redesigns• Motivational approachuses motivational theories Focuses on enriching the work experience

• Sociotechnical Systems (STS) approachSeeks to optimize both the social and technical aspects of work systems

Job Enrichment: Obstacles and Results

1. Not all people react in similar ways to job enrichment interventions

2.Individual differences can impact negativelya worker’s knowledge and skill levelsgrowth-needstrength and satisfaction with contextual factors

3. Four system level barriers have also been identifiedTechnical systemPersonnel systemControl systemSupervisory system

4. Results from participants are generally positive

Application stepsSanctioning the design effortDiagnosing the work systemGenerating appropriate designSpecifying support systemsimplementing and evaluating the work designContinual change and improvement

Designing Work for Technical and Personal Needs: Technical Factors

• Technical interdependence Extent to which cooperation among workers is required to produce a

product or service

Technical uncertainty Amount of information processing and decision-making that

employees must do to complete a task

Work Designs that Optimise Technology

Designing Work for Technical and Personal Needs: Personal Factors

Social Needs Desire for significant social relationships

Growth Needs Desire for personal accomplishment, learning and development

Thank You