Organizational Effectiveness and Development Flashcards

(98 cards)

1
Q

Organizational Effectiveness and Development (OED)

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Focuses on the sturcture and functionality of the organization to increase the long and short-term effectiveness of people and processes.

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2
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Organizational Development (OD)

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Refers to an organizational management discipline used to maintain and grow organizational effectiveness and efficiency through planned interventions.

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3
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If organizational development is comparable to conducting a medical examination, then organizational theories…

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organizational theories help to explain how th eorganization functions, including its parts and how they interact.

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4
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In order for an organization to implement its strategy successfully…

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It must align its various components. It’s structure must suit the strategy - if not the structure or stragey must be changed.

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5
Q

The major organizational elements that must be aligned with strategy include:

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  • Structure: the way the organization separates and connects its pieces
  • Systems: the policies that guide behavior and work, the processes that define how tasks will be performed, and the technology or tools used to support that work
  • Culture: the set of beliefs, attitudes, values, and behaviors shared by members of the organization and passed on to new members
  • Values: principles that the organization and its leaders have explicity selected as a guide for decisions and actions.
  • Leadership: the model of behavior that leaders set for the rest of the organization.
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6
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The way the organizational elements are implemented and aligned can affect:

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The motivation employees apply to their work

Employee’s engagement or identifcation with their work and the organization’s goals

Performance levels and results - the effectiveness and efficiency in reaching goals - for the entire organization, for its structural pieces (such as divisions, functions, teams), and for individual employees

Governance - the organization’s ethical and legal compliance and its approach to managing risk

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7
Q

OED intervention

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Can be seen as stepping in to interrupt the status quo or the current state in order to examine a situation more closely and make changes that could improve outcomes.

Interventions are often described as “structured activities” in the sense that an intervention may involve multiple actions that are each focused on the same objective - organizational performance improvement.

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8
Q

What is needed to start an OED intervention?

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A business case will likely need to be made in order to begin an OED intervention - should use data to illustrate the need for the intervention and should outline KPIs tha twill be used to track the intervention’s success at achieveing its outlined goals.

OED interventions that begin based on conjecture and that do not outline metrics are difficult to evaluate, leaving the organization unable to determine if the intervention was actually successful or if additional changes are needed.

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9
Q

What should the goals of an OED work toward?

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Enabling the organization to better achieve its strategic goals and should be determined collaboratively between HR and the internal client needing or requesting the intervention. Goals may also examine the efficiency of resources to create value.

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10
Q

The actual OED intervention includes:

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Both the tools used to examine the issue and hte change or solution that will be implemented.

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11
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Since organizations are systems…

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Solutions must address root causes and contributing factors for dysfunctions and, for strategic changes, overall goals and key performance indicators.

Changes proposed in one area must be analyzed for possible effects on other parts of the organization. The complete answer may be an OED strategy composed of multiple interventions, aimed perhaps at different audiences or scheduled for different stages in an extended period of change.

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12
Q

HR professionals involvement in OED interventions:

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HR professionals may be involved in OED interventions directly as internal consultants to the organization, or they may participate indirectly with third-party consultants, contributing their knowledge of the organization, its people, and its processes and their expertise in managing workforce capabilities and productivity. HR managers may apply OED principles to increasing the effectiveness of the HR function.

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13
Q

Proactive OED Interventions

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Proactive OED interventions identify and correct potential problems before they begin affecting performance.

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14
Q

Remedial Interventions

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Make changes that bring an organization back on course toward its strategic goals. They are typically intended/designed to resolve a problem or issue that is current or newly discovered and to bring about a long-term positive impact on the organization and its function.

Assessing the success of a remedial intervention can be easier than for other interventions - simply put, was the problem or issue resolved?

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15
Q

Five ways a remedial intervention can impact an organization:

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-Increase efficiency
-Reduce employee burnout
-Improve product performance
-Shift from reactive to more proactive strategy
-Address budget deficits

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16
Q

Characteristics of Effective OED Interventions

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  • Strategically aligned
  • collaborative
  • supported by top management
  • producing sustainable results
  • supporting continuous improvement
  • using common tools
  • using common langauge
  • explicit assumptions
  • fact-based
  • evidence-based
  • oriented toward systems and processes
  • flexibility
  • multiple perspectives
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17
Q

Characteristic of Effective OED Intervention: Strategically Aligned

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Helps ensure that plans reinforce, complement, and build on each other and support overall organizational goals and strategies

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18
Q

Characteristic of Effective OED Intervention: Collaborative

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Facilitates discovery of causes and development of solutions with critical input from those most closely involved (managers, supervisors, and employees) in intervention area

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19
Q

Characteristic of Effective OED Intervention: Supported by Top Management

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Helps reduce resistance to eventual change

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20
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Characteristic of Effective OED Intervention: Producing Sustainable Results

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Changes that can continue to deliver long-term results, perhaps because of management preparation or group involvement and acceptance of new processes and success criteria

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21
Q

Characteristic of Effective OED Intervention: Supporting Continuous Improvement

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Aims at strengthening the organization in an ongoing manner by identifying weaknesses and opportunities and engaging employees in performance improvement (Continuous improvement is a basic tenet of the quality management programs to which many organizations today have committed.)

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22
Q

Characteristic of Effective OED Intervention: Using common tools

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Allows for easy comparisons and collation of data

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23
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Characteristic of Effective OED Intervention: Using common language

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Avoids confusion and misunderstanding

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24
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Characteristic of Effective OED Intervention: Explicit assumptions

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Allow the validity of underlying assumptions to be challenged

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Characteristic of Effective OED Intervention: Fact-based
Clarifies the difference between what is known and what is supposed
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Characteristic of Effective OED Intervention: Evidence-based
Uses current best evidence to identify problems/issues specific to the organization through a commitment to continuous, up-to-date information and knowledge gathering and analysis
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Characteristic of Effective OED Intervention: Oriented toward systems and processes
Uses systems theory to analyze problems.
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Characteristic of Effective OED Intervention: Flexibility
Recognizes and accepts that assumptions are likely to change
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Characteristic of Effective OED Intervention: Multiple perspectives
Provides access to diverse perspectives
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OED interventions must be assessed...
Once they are concluded, so time must be allowed following the intervention to accurately measure its efficacy. The measurement should use KPIs that track the process or unit that underwnt the intervention to determine if it actually succeeded at achieving its stateg goals. Measuring too soon, or without using quantifiable data, may result in the organization being uanble to accurately determine if further action is required to address the identified issue.
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In addition to measurement of the intervention itself...
the client's perception of the experience is also an important part of the assessment. Clients may be surveyed or interviewed about whether their expectations were fulfilled.
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HR should assess its own...
effectiveness and efficiency in conducting the intervention.
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Communication Pitfall + Remedy in interventions: Leadership does not get involved
Sometimes decisions about major organizational changes are made at the top management level and then news is allowed to trickle down to employees. As a result, why and how the organization is changing may be unclear. Leaders and HR professionals should roll out a clear, universal, consistent message to everyone in the organization at the same time, even across multiple sites and locations.
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Communication Pitfall + Remedy in interventions: The wrong messengers are used
Studies have found that employees tend to trust information from managers. Understanding the organization’s culture will indicate who is the best messenger for change—the manager, the senior executive team, or HR. Middle and front-line leaders are the primary communicators to employees; communication from them should be frequent and consistent. Everyone affected by the change needs to know what it entails, why and how it is happening, and what’s in it for them. Don’t impose change; engage employees in a conversation about it. Ask them what they think and how they are feeling. They will talk if you listen.
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Communication Pitfall + Remedy in interventions: Communication is too sudden
Leaders and managers need to prepare employees for change, allow time for the message to sink in, and give them an opportunity to provide feedback before a change is initiated.
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Communication Pitfall + Remedy in interventions: Communication is too late
If anxieties are not managed in a timely manner, it will take longer for changes to be accepted, and, during this period, productivity and employee engagement will suffer. To avoid this problem, HR should be involved in change planning early to help motivate employees to participate. While the solution is being developed, HR needs to develop a plan for communicating the program to the organization—both the content of the message and the way in which it will be communicated. Change-related information should be communicated to employees via multiple forms (for example, e-mails, meetings, training sessions, internal social media, press releases).
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Communication Pitfall + Remedy in interventions: Communication is not aligned with organizational realities
Messages should be honest and include the reasons behind the change and the projected outcomes.
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Communication Pitfall + Remedy in interventions: Communication is too narrow
If the communication focuses too much on detail and technicalities and does not link change to the organization’s goals, it will not resonate with employees.
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Improving Organizational Performance often involves...
Aligning structure, roles and responsibilities, process, and culture with new strategic goals.
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Organizational Interventions
Look at how the structure of the organization is helping or hindering the organization's strategic progress.
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Organizational Structure
refers to the way in which work groups are related
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Organizational Interventions are required when an organization:
-Is failing to meet its strategic objectives because its sturcutre is inefficient and/or ineffective. The organization's structure no longer meets its needs. A common example of this situation is the progression of an organization through its early stages of growth. The organization's design must be aligned with its new realities. -Has changed its competitive strategies and needs to develop new skills and traits. The organizational design must be focused in a new direction.
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Organizational design refers to:
Elements that support an organization's functioning.
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Elements that supports an organization's functioning:
-Structure -The organization's mission and vision and the strategies it is pursuing to achieve its goals. -The way decisions are made -The way information is communicated -The processes used to perform work and the degree to which those processes connect parts of the organization's structure and the way in whcih those linkages are managed. -The systems used to align the organization's needs with the resources required to fill those needs. This, of course, includes human resources and all the systems HR uses to fulfill its responsibilities, from recruitment through talent management and exit. It can also include physical and financial assets (e.g. equipment, facilites, budgets) and organiztational knowledge and expertise. All of these elements create the integrated system that is the organization. Any OED solution must acknowledge the integrated nature of the organziation's design.
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HR's roles and responsibilities in Organizational Design should include:
Providing leaders with a structural diagnosis by identifying the root causes of organizational performance issues. Helping leaders evaluate a range of clear design options. Ensuring that leaders align organizational design decisions with short- and long-term strategic goals by identifying critical activities, strengths, and weaknesses. Helping leaders understand their roles and responsibilities that ensure that the structure is properly implemented. Continually monitoring the structure for alignment with the organization’s business strategy and highlighting challenges as needed. Planning for internal or external resources to deliver appropriate short- or long-term development interventions and activities and ensuring that those resources have the appropriate subject matter expertise and credibility to be effective or have the appropriate background, relationship-building skills, and cultural familiarity to quickly build credibility.
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Work Specialization
Work specialization refers to the degree to which tasks are performed as separate jobs. While work specialization is seen as increasing efficiency and quality, it can also result in boredom and lack of quality. And in complex and technology-driven enterprises, specailization can also hamper collaboration and innovation.
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Decision-Making Authority
This principle describes how decisions are made within the organization. Authority relates to the scope of responsibilities that define the area in which a manager or supervisor is empowered to make decisions. The organization determines which decisions can be made at each level of the organization and within each function in order to ensure that the best decisions are made in the most timely manner. In a global organization, decisions may be made at headquarters (centralized) or delegated to other parts of the organization (decentralized)
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Ratio of direct to indirect employees
People doing the work as opposed to people supporting those doing the work a key metric of organizational efficiency
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Span of Control (Layer of Hierarchy)
Refers to the number of individuals who report to a supervisor. Executives, managers, supervisors, and subordinates are hierarchically connected. Organizations in which many subordinates report to a few supervisors are referred to as "flat". There are many factors that drive an organization toward a wider span of control, including the desire for subordinates to communicate directly with their ultimate supervisor and decision-maker. Spans of control that are too large can slow an organization, making it difficult for supervisors to make decisions quickly. Flat organizations can be nimbler. When decisions are made, they can be communicated and implemented quickly.
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Chain of Command
Refers to the line of authority in an organization. Traditionally, a subordinate reported to only one superior. This eliminated the confusion, loss of productivity, and stress that could result from an employee trying to follow the directions of two separate managers. Today the chain of command is growing less distinct in many organizations. As organizations push decision-making authority downward or become matrixed, and as ad hoc or permanent work teams become more common, the line of authority can appear lateral or web-like.
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Formalization
Refers to the extent to which rules, policies, and procedures govern the behavior of employees in the organization. The more formal an organization, the greater the written documentation, rules, and regulations. Formalization may serve an organization well when uniformitiy is an imperative, however it can restrict employees' abilities to respond to unusual situations or customer needs as well as stifle creativity and innovation. Over time, formalization becomes ingrained in an organization's culture and can be difficult to change. This may be a challenge when an organization merges with or acquires an entity with a dissimilar approach to formalization.
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Departmentalization
Refers to the way an organization groups its jobs and aligns its effort Four commonly seen structures: - Functional - Product - Geographic - Matrix
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Functional Structure
Departments are defined by the services they contribute to the organization's overall mission, such as marketing and sales, operations, and HR. Traditionally, this has been the most common organizational structure. A related method is departmentalization by process - if the org's work is divided according to a linear process, the org might be divided into departments that align with those processes. Some units are considered line units while others are staff units.
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Line Units
Work groups that conduct he major business of the organization, such as production or marketing functions
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Staff Units
Assist the line units by performing specialized services for the organization, such as accounting or HR
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Product Structure
Functional departments are grouped under major product divisions. A consumer electronics company, for example, may have separate divisions for home appliances, mobile devices, and televisions. Each division will have its own marketing, sales, manufacturing, and finance functions. More employees are required to staff this type of organization, but presumably this is offset by accumulated experience and expertise. The customer structure is similar, with each division focusing on a group of customers with distinct needs. For example, a financial service business may have commercial, residential, and institutional customer divisions.
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Geographic Structure
is very similar to a product structure, with the exception that geographic regions or countries—rather than products—define the organizational chart. A purely domestic organization may be structured around regions within the country. Global organizations may be organized by, for example, continents or countries. Each region or country has its own complete and self-sufficient set of functions. More employees are required to staff this type of organization than in a purely functional enterprise, but value is achieved because each division can be more responsive to local markets.
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Matrix Structure
Combines departmentalization by division or program and fucntion to gain the benefits of both. An organization may use a matrix structure when the vertical hierarchy begins to obstruct value activities - when silos get in the way of collaboration. A matrix structure includes cross-functional teams who may work together to design, develop, and market products. The matrix structure creates a dual rather than single chain of command. As a result, some employees report to two managers rather than one, with neither manager assuming a superior role. The project or program manager interacts with the employee about project work; the functional manager may be responsible for regular performance reviews and career development. This structure requires good communication and collaboration between the managers. Without it, employees may become overworked and stressed.
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Advantages + Disadvantages: Functional Structure
Advantages: Easy to understand Specializations develop Economies of scale Easier communication within functions Clear career paths Disadvantages: Weaker customer or product focus Potentially weak communication among functions Weak grasp of broader organizational issues
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Advantages + Disadvantages: Product Structure
Advantages: Economies of scale Product team culture Product expertise Cross-functional communication Disadvantages: Regional or local focus Weak customer focus
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Advantages + Disadvantages: Geographic Structure
Advantages: Proximity to customer Adapted to local practices Quicker response time Cross-functional communication Disadvantages: Fewer economies of scale Potential issues with consistency across regions (for example, practices, values, strategic focus)
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Advantages + Disadvantages: Matrix Structure
Advantages: Combination of cross-disciplinary capabilities and perspectives Availability of best global talent Flexibility and agility Disadvantages: Complex reporting structures Potential for conflicts between functions and projects over resources Potential cultural conflicts on teams
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What does RACI stand for in the RACI Matrix?
Responsible, Accountable, Consult, and Inform
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What is the RACI matrix commonly used for?
Better defining the roles and responsibilities of each member in the structure. This is used to combat lack of clarity about authority and coordination of communication which can cause highly integrated structures, such as matrix structures, to fail. A RACI chart helps an organization establish clarity around its critical activities by assigning responsibility and describing communication needs. These charts can be a helpful exercise when an organization is restructuring or introducing new activities or processes.
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Gap Analysis
A gap analysis must be performed between the skill set needed now or in the near future and the skill set as defined in current job descriptions. These problems may be addressed through different types of training, coaching, and mentoring.
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Activities designed to develop organizational talent:
Identify the talent needs of the organization. Develop existing staff. Build talent pool.
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Identify the talent needs of the organization
What is essential to meet the overall objectives? Ensure that the current job descriptions accurately reflect the work to be done to achieve organizational objectives, and prepare job descriptions for any anticipated positions. Clarify performance standards and assessment metrics. Compare skill set inventories (formal and informal) of the incumbents to the selected future competencies. Identify any competency deficiencies.
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Develop Existing Staff
Determine if adequate staffing exists or if recruitment efforts will be required. Coordinate selection processes. Develop comprehensive workforce development initiatives that grow internal technical/functional capabilities as well as the management and employee behavioral practices needed to achieve results.
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Technology Requirements
Inadequate technology can prevent employees from performing efficiently. These issues may be addressed through new or expanded technology—for example, new digital tools that reduce errors or expanded knowledge management systems that put information into the hands of those who need it when they need it.
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Build Talent Pool
Establish a comprehensive performance management program that stresses instituting stretch goals. Communicate performance expectations. Measure performance objectively and regularly, and provide candid, honest feedback on a regular basis. Develop coaching or mentoring programs and internal social networks between experienced and more-junior employees to promote knowledge sharing. Identify the positions for which succession planning (a proactive program designed to keep talent in the pipeline) makes sense. These often include key positions, positions with direct impact on strategic practices, and those with lengthy learning curves.
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Process Requirements
Over time, work processes can become detached from customer needs, changing technology, or changed work conditions. Obstacles that cause serious delays can develop. Work can be duplicated by multiple groups. Separate groups may work with different objectives. The resulting conflicts may not be apparent until late in the process. Processes must be routinely audited for efficiency and the need for updating and then redesigned and tested.
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Interventions aimed at cultural transformation includes the following steps:
Define the current culture Identify the aspirational culture Identify gaps and conflicts Develop change initiatives
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Organizational Culture can be changed in various ways:
Correcting managers who do not support necessary cultural traits (such as employee involvement in decision making) or model organizational values, and punishing or replacing those managers if necessary Aligning reward systems with desired behaviors and values Replacing old cultural artifacts, which may require creating new rituals and identifying new heroes Greater emphasis on leader behavior—on communicating and modeling desired values and actions
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Improving team performance often invovles improving
Team formation and function. Interventions may help teams reach levels of productivity more quickly or help dysfunctional teams revise roles and behaviors.
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OED interventions aimed at teams or units are often triggered by:
Reports of poor performance. The causes may include high levels of unresolved conflict within the team, poor leadership, and poor communication. These issues interfere with the formation of effective teams.
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Team interventions focus on...
Processes and interactions within and between teams.
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Common targets for team interventions include:
New groups that must develop a team identity. Dysfunctional groups that must identify and resolve conflicts that are hurting productivity. Existing groups that must redefine processes and relationships to be more productive or to align with the needs of a new strategic direction. Virtual teams that must learn to trust each other and communicate and collaborate over distances and sometimes across different languages and cultures.
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Bruce Tuckman defined four stages of troup or team development:
Forming Storming Norming Performing
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Forming
Individuals come together around common activity and shared goals. Members are polite, but there is little sense of trust, shared experience, or common values. Low levels of commitment and communication Leader's Role: Provide vision, describe expectations, encourage perseverance
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Storming
Individuals move past politeness, and there may be higher levels of discord as perspectives, styles, and agendas clash. This may be painful, but valuable communication is occurring. High levels of conflict and dissent Leader's Role: Enforce ground rules, increase levels of engagement, provide coaching
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Norming
Over time, effective groups build trust and establish relationships. They create rules that guide behavior. They begin to establish a group identity and to identify “outsiders.” This can sometimes take a negative form; “group think” can impel members to adopt the same positions and reject outside views. This can dampen innovation and creative problem solving. Growing sense of common direction, defined responsibilities and processes Leader's Role: Facilitate communication and group decision making
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Performing
The group becomes fully productive, collaborative, and mutually supportive. High levels of productivity and self-direction Leader's Role: Monitor, evaluate, and foster improvement; motivate by celebrating accomplishments
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Group Leader's role in facilitating Team Development evolution:
The group leader plays an important role in facilitating this evolution. During the early stages, the group leader can provide opportunities for communication and relationship building and can enforce ground rules that prevent permanent animosity between some group members. Since the group can be affected by changes of any sort—for example, by the addition or loss of group members, by changes in work processes or environment—the leader plays an important role in helping the group move as quickly as possible through the common reactions to change and become fully productive again.
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Team Structure
Teams may take various forms throguhout an organization, depending on the needs of the organizaiton and the goal of the team. Team structure can be shaped along 3 different criteria: Diversity of Skill Dispersion of Authority Longevity or Permanence
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Diversity of Skill
Skill diversity describes the amount of difference between the knowledge, skills, and abilities of the members of a team. A team of merchandisers, for example, is likely to have a low amount of skill diversity and the team members will be largely interchangeable in their duties. A cross-functional team assembled for a new product launch is likely to have a high amount of skill diversity, as members are likely to have skills including sales and marketing, product design, visual merchandising, logistics, and finance.
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Dispersion of Authority
Authority dispersion refers to where the power to make decisions is concentrated on the team. If there is a defined team leader, such as in a marketing department, authority dispersion tends to be low. Lower-ranking members of the team may have some decision-making authority, but ultimate authority, including the ability to override others’ decisions, is vested with a single person—a senior director or vice president. Teams with high authority dispersion don’t have a strong defined leader with override authority and collaborate to make decisions based on the input of the group at large. For example, an automobile design team may work to reach consensus on many design features instead of vesting a single individual with the decision-making responsibility.
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Longevity or Performance
Permanence refers to the typical longevity of a team. Major organizational structures like HR and marketing typically remain a core function of a business on a permanent or semi-permanent basis, giving them high permanence. In contrast, task forces assembled to address a specific issue may last only days or weeks, giving them low permanence.
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Group dynamics
Group dynamics take place at 2 levels: Intergroup and intragroup
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Intergroup Dynamics
Intergroup dynamics are between two different groups.
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Intragroup Dynamics
Intragroup dynamics are between members of a group
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Three basic types of roles individuals play within groups according to Kenneth Benne and Paul Sheats
Social Roles Task Roles Dysfunctional Roles
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Social Roles
Helps maintain relationships and positive group function The social roles recognize the importance of social and interpersonal ties within a group. Group members playing a social role promote harmony, conflict resolution, and involvement of all group members.
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Task Roles
Help get the work done Those performing task roles propose solutions or collaborate in group problem solving. They share task information and perform their assigned tasks.
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Dysfunctional Roles
Weaken the group and reduce its productivity In a dysfunctional role, a group member may attack others, dominate discussions, resist others' ideas, or damage group focus and energy through negativity.
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Benne and Sheats found that an individual's roles in a group can...
Change under different circumstances. For example, a group leader who is very task-focused at first may gradually become more focused on social roles as the group agrees on a direction and individual responsibilities.
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Managing Group Dynamics Requires:
Recognizing the need for both task and social roles. Quickly identifying and correcting dysfunctional roles, perhaps through offline discussions or coaching. Understanding the usefulness of certain roles at certain points in the group process and making sure that these roles are present when needed and managed when they obstruct progress. For example, team members adept at improving social connections contribute greatly at the beginning of the project, but when the group is focused on work, it may find a social focus distracting.
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Team building
Team building involves a series of activities designed to help team members examine how they function now and how they could function better. This includes both the nature of their work (what they do or create together) and how they coordinate and collaborate on their efforts (how they work together). Emphasis is on early identification and solution of problems that stand in the way of group effectiveness. The purpose of a team-building intervention is to facilitate the alignment of the management team with the team’s mission and goals and to develop effective team dynamics for working together to accomplish these goals.
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Team Building activities may focus on:
Goals and priorities. The OED team may facilitate team meetings in which mission, vision, values, and norms are developed. Meetings could also focus on understanding the team’s stakeholders better and developing better processes for engaging stakeholders. Role and responsibility of each team member. In new, merged, or existing teams, unclear roles can create conflict and loss of productivity. The OED team can facilitate role and responsibility negotiation and definition. Processes for team activities, such as assigning tasks, monitoring progress, and evaluating results; for communicating and coordinating efforts; and for making decisions. The OED team can help diagram processes in terms of inputs, requirements, and outputs. These diagrams can be used to sequence activities more efficiently, identify potential obstacles and solutions, define communication requirements and channels, identify organizational systems that can support the team, and make sure all team members have what they need to perform their assigned tasks. Interpersonal relationships within the team, such as building trust, communicating more effectively, resolving conflict, negotiating, and cultural awareness. The OED team can advise team leaders on changes that can build trust (such as non-work team events that allow team members to learn about each other as human beings), facilitate workshops in which team members confront their disagreements, and guide them safely to effective solutions. The OED team may also deliver developmental activities on these essential skills.