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Success & Failures in

Organizational Design

Considerations when developing an organization

Start with a statement of strategic intent
Determine the high level organizational boundaries that support

the strategic intent

Where you draw boundaries is critical to strategy execution
Include integrating mechanisms to ensure that the right dialogue
occurs among groups
While organization redesign is not about a silver bullet or a
quick fix, it can generate quick results.
Organization design is more than moving the boxes
Poor executive performance is often blamed for poor design.
Create the right integration mechanisms to align the product
structure with overall business objectives

How do you know an organization design is

There is a faster cycle time for developing the right

products/services defined by company strategy.

The companys resources move quickly when needed.
Your business is able to adapt to changes in market
conditions quickly,
without creating a feeling of chaos to employees and
Work is getting done efficiently without rework,
excessive reviews.
The right information is getting to the right people.

Reasons for failure of organization design

People are too detached and do not see their present

situation in detail
Past experience is limited
Inability to work with the available resources
Preoccupation with decision rationality makes it
impossible for people to accept the rationality of
decision making
Striving for perfection leads to inability to bear the
aesthetics of imperfection

Social Responsibility
Social responsibility: refers to a managers duty

or obligation to make decisions that nurture, protect,

enhance, and promote the welfare and well-being of
stakeholders and society as a whole

Approaches to Social Responsibility

Obstructionist approach: the low end of the

organizations commitment to social responsibility

Defensive approach: a minimal commitment to

ethical behavior

Managers choose to behave unethically and illegally

Managers attempt to stay within the law but do not attempt

social responsibility beyond what is required by law

Approaches to Social Responsibility (cont.)


acknowledgment of the need to support social

Managers want to make the right choices when called on

to do so

Proactive approach: actively embrace the need

to behave in socially responsible ways

Managers go out of their way to learn about the needs of

different stakeholder groups
Willing to utilize organizational resources to promote the
interests not only of stockholders, but of other

Approaches to Social Responsibility

Why Be Socially Responsible?

Workers and society benefit directly because

organizations bear some of the costs of helping

Quality of life as a whole would be higher as a
climate of caring is encouraged
It is the right thing to do
Companies that act responsibly toward their
stakeholders benefit from increasing business and
see their profits rise

Why Be Socially Responsible? (cont.)

Whistle-blower: a person who reports illegal or

unethical behavior

Takes a stand against unscrupulous managers or other



suggests that managers who behave

socially responsibly will, in the long run, benefit all
organizational stakeholders


Arguments for Social Responsibility

Public expectations
Long run profits
Ethical obligation
Public image
Better environment
Discouragement of further government regulation
Balance of responsibility and power
Stockholder interests
Possession of resources
Superiority of prevention over cures

Arguments against Social Responsibility

Violation of profit maximization
Dilution of purpose
Too much power
Lack of skills
Lack of accountability
Lack of broad public support

Meaning: Creativity means the ability to develop a

new object or a new idea. Creativity is regarded as a

vital tool in the invention and discovery of new ideas
as well as objects.
Definition: Acc to Torrance, Creative thinking is the
process of sensing difficulties, problems, gaps in
information, missing elements, making guesses and
hypotheses about the solution of these deficiencies;
evaluating and testing these hypotheses; possibly
communicating the result.

Traits of Creative People

Creative people are curious.
Creative people like challenges.
Creative people are not afraid to experiment
Creative people have high standards.
Creative people know how to accept and give

constructive criticism

Components of Creativity

Creativity Process

Creativity Process

Creativity Techniques



Attribute listing

Force field analysis


Rapid prototyping

Visual thinking


Morphological analysis

Idea Box

Suggestion schemes

Benefits of Creativity
To individuals:
Help you make the best use of your talents, aptitudes

and abilities
Enhance the enjoyment of your job
Cause you to have more self-confidence
Ultimately increase your income
Cause you to become more self-motivated
Give you a greater sense of control and mastery over
your job

Benefits of Creativity
To the Organization:
organizational adaptability
highly engaged, motivated, diverse and creative

talent delivers competitive advantage

diversity of ideas, capabilities and perspectives
attract, retain, and cultivate the brightest talent in
their industry

Strategy-Culture Fit

Course of action used to achieve objectives.

Relates resources of organization to opportunities in


Set of values for setting priorities.

Critical factor in implementation of strategy.

Chapter 15
Slide 21

An Experiential Approach to Organization

Development 8th edition

Figure 15.5
Strategy-Culture Matrix

Chapter 15
Slide 22

An Experiential Approach to Organization

Development 8th edition

Strategy-Culture Matrix
Four basic alternatives in determining strategy
1. Manage change (manageable risk).


Change important and compatible with culture.

Use cultural reinforcement as strategies.

Reinforce culture (negligible risk).

Chapter 15
Slide 23

Forge vision that emphasizes shared values.

Reinforce existing culture.

An Experiential Approach to Organization

Development 8th edition

Strategy-Culture Matrix


Manage around culture (manageable risk).

Change important and incompatible with present culture.

Reinforce value system, reshuffle power, use leverage in the

4. Change strategy to fit culture (unacceptable risk).

Change important but incompatible with culture.

Changing culture is explosive, long-term process that may

be impossible.

Chapter 15
Slide 24

An Experiential Approach to Organization

Development 8th edition

Strategic Change Management

Strategic change is defined as changes in the

content of a firm's strategy as defined by its scope,

resource deployments, competitive advantages, and
In simple form strategic change is a way of changing
the objectives and vision of the company in order to
obtain greater success.

Strategic Change Management Process

Role of HR professionals in strategic change


Role of HR professionals in strategic change

Technical Specialist: Technical specialists apply intensive

knowledge of specific technical areas to address and resolve

immediate needs of business.
Advisor: As technical consultants, advisors develop innovative
HR solutions to address customer issues and achieve specific
business goals (with an eye on those of tomorrow).
Strategic Partner: Strategic business partners identify broad
HR issues ahead of business leaders; they are high-level
consultants who develop strategies to address long-term business
Leader: The leadership/management role can be and often is
incorporated into any of the above roles or stand alone,
depending on where in the organization it is found.

Role of HR professionals in strategic change

Role of Scout: Scan both the internal business

environment and external environment.

Role of Chess master: Influencing others and
constantly evaluate all the other players or factors that
affect change.
Role of Cartographer: Advise and educate executives
on how to best manage change efforts, literally provide
road maps and critical elements for successful change.
Role of Architect: Rethink the design of systems and
processes for managing human performance.