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.