organizational Development (OD)
Uses planned change interventions to improve efficiency and effectiveness.
Organizational Theories
McKinsey 7S Framework or Burke Litwin Performance and Change Model:
The major orgz elements that must be aligned with strategy include:
*Everything is connected–if you change something somewhere it will affect something else
Major Orgz Elements
Structure: the way the orgz separates and connects its pieces
Systems: the policies that guide behavior and work, the processes, and the technology & tools used
Culture: the set of beliefs, attitudes, values shared by members of the orgz and passed onto new members
Values: principles that the orgz and its leaders have explicitly selected as a guide for decisions and actions
Leadership: the model of behavior that leaders set for the rest of the orgz
Proactive Interventions
Proactive OED interventions identify and correct potential problems before they begin affecting performance. They can also prepare to take advantage of anticipated opportunities.
*Prepare in advance
Remedial Interventions
Remedial interventions make changes that bring an orgz back on course toward its strategic goals.
Ex: during economic downturns, and orgz can adopt a ‘do more with less’ but this short term benefit might inflict long term problems on the orgz.
Characteristics of Effective OED Interventions
Why OED Interventions Fail
Organizational Interventions are required when an orgz:
Organizational design refers to elements that support an Organizations’ functioning, including:
Work Specialization
Work Specialization refers to the degree to which tasks are performed as separate jobs.
While work specialization could be seen as increasing efficiency, it can also result in boredom and lack of quality.
*Show how a job effects the bottom line
Decision Making Authority
This principle describes how decisions are made within the orgz
*Centralized v. Decentralized
Layers of Hierarchy
The hierarchical layers of an orgz range from the CEO to the EE in a function–how long it takes to get something approved.
Formalization
Refers to the extent to which rules, policies, and procedures govern the behavior of EEs in the orgz
Mechanistic and Organic Orgz
A mechanistic orgz tends to be highly specialized, hierarchical, and formal, while in an organic orgz job boundaries are less distinct and there are fewer levels of decision makers and a more flexible approach to structures and rules.
What is Departmentalization
It refers to the way an orgz groups its jobs and aligns efforts. Four common structures are:
Functional, Product, Geographic, Matrix
What is a Functional Structure
In a Functional Structure, departments are defined by the services they contribute to the orgz’s overall mission, such as marketing/sales, operations, and HR
What is a Product Structure
In an orgz with a product structure, functional departments are grouped under major product divisions.
What is a Geographic Structure
A geographic structure is very similar to a product structure, with the exception that geographic regions or countries–rather than products–define the orgz chart
What is a Matrix Structure
A matrix structure combines departmenalization by division and function to gain the benefits of both. A matrix includes cross functional teams who may work together to design, develop, and market products.
*Dual rather than single chain of command
What is a RACI chart?
A RACI chart helps establish clarity around critical activities by assigning responsibility and describing communication needs.
Responsible: this member will perform the activity
Accountable: in charge of the activity and answers to mgmt. for the activity performance
Consulted: provide advice or info necessary to perform the task
Informed: they receive comments about activities but do not perform or consult
Why do we have Team Development Interventions?
To close gaps in knowledge and skills
Activities include:
Why do we have Culture Interventions/Requirements?
To change the strategic focus OR because the culture no longer supports the new strategic focus
Activities incldue:
Why do we have Team Interventions?
When you have high levels of unresolved conflict within a team OR there is poor comm OR poor leadership
Activities include:
What is Included in a Team Formation Process?