Organizational Design, Diagnosis, and Development

1
Organizational Design, Diagnosis, and Development

• Session 24
• Strategic Interventions, I
• Organization Environment Relationships

2
Objectives

• To review organization and environment
  relationships
• To understand when the intervention needs to be a
  strategic one
• To describe three strategic interventions and
  demonstrate how organizations respond to and
  effect environmental relationships.

3
Components of the Environment

• General Economy
• Customers
• Suppliers
• Competitors
• Social factors
• Legal and social factors
• Technology

4
Environmental Uncertainty
Complexity
Complex
Simple
Moderately Low Uncertainty Many factors which
remain the same
Static
Low Uncertainty Few factors which remain the same
Rate of Change
High Uncertainty Many factors which are in a
state of change
Moderately High Uncertainty Few factors which are
in a state of change
Dynamic
5
Environmental Sensitivity
Resource Dependence
High
Low
Low Sensitivity churches convenience stores
Moderately low Sensitivity child care
agencies restaurants
Low
Uncer- tainty
High Sensitivity Utilities, financial services, p
harmaceutical industry
Moderately high Sensitivity general manufacturing
High
6
Managing Environmental Uncertainty

• Organizational structure
• Vertical integration
• Mergers and acquisitions
• Strategic alliances

7
Strategic Interventions

• Open systems planning
• Integrated strategic change
• Transorganizational development

8
Open Systems Planning

• Role of members perceptions
• Implementation process
• Environmental assessment
• Identify core processes
• Create future scenarios (real and ideal)
• Compare scenarios to present and create plans for
  moving towards the future

9
Integrated Strategic Change

• Perform strategic analysis
• Exercise strategic choice
• Design change plan
• Implement change plan

10
The Fed Ex Example

• Core competency Fast delivery, tracking systems
• The environment Technology, Competition,
  Customers
• The red flags
• The strategic shift Competing with the
  competition, E-commerce, Technology advantage

11
Transorganizational Development

• Identification stage
• Convention stage
• Organization stage
• Evaluation stage

12
Backwards Forwards

• Summing up Today we considered strategic
  intervention including open systems planning,
  integrated strategic change, and
  transorganizational development. Fed Ex was used
  as a case in point for strategic change.
• Looking ahead Next time we conclude our
  discussion of strategic interventions with a look
  at organization transformation. The focus will
  be on organizational culture and learning