Organizational Effectiveness & Development Flashcards
(23 cards)
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, specialization can also hamper collaboration and innovation.
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).
Layers of Hierarchy
The hierarchical layers of an organization range from the chief executive officer to the employee in a function. The trend in organizational structure has been to reduce the number of layers and waste within organizations. The result is flatter and, leaders hope, more efficient organizations with fewer staff support positions. The ratio of direct to indirect employees (people doing the work as opposed to people supporting those doing the work) is a key metric of organizational efficiency. Global organizations often value nimbleness or agility since their interconnectedness and global exposure may call for rapid organizational response.
Span of control
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. However, spans of control that are too large can slow an organization, making it difficult for supervisors to make decisions quickly. Many decisions must flow to the top, and the decision queue can become crowded. Flat organizations can be nimbler. When decisions are made, they can be communicated and implemented quickly.
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.
Formalization
refers to the extent to which rules, policies, and procedures govern the behavior of employees in the organization. The more formal the organization, the greater the written documentation, rules, and regulations. Some organizations are more loosely structured than others. Formalization may serve an organization well when uniformity is an imperative—for example, when there is low tolerance for variations in parts or when it is critical that, for reasons of compliance, a process be conducted in a precise manner. It can, however, restrict employees’ abilities to respond to unusual situations or customer needs as well as stifle creativity and innovation.
Departmentalization
refers to the way an organization groups its jobs and aligns effort. Four commonly seen structures are discussed here (functional, product, geographic, and matrix), but you may encounter other, less common types of structures in your work. New business models may require different structural approaches.
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 organization’s work is divided according to a linear process, the organization might be divided into departments like design, supplies procurement, manufacturing, sales and marketing, distribution, and customer service.
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.
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.
matrix structure
combines departmentalization by division or program and function 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.
Organizational Culture Requirements
- Describe the current culture.
- Identify the aspirational culture.
- Identify gaps and conflicts
- Develop change initiatives
Describe the current culture.
This involves observing language (for example, the expressions and metaphors commonly used) and leadership and decision-making styles (such as autocratic, participative); mapping communication paths and choices; identifying meaningful objects, stories, people, and behaviors (for example, rituals); and gathering evidence of values in action.
Identify the aspirational culture.
The OED team researches existing data and interviews key leaders to define the desired cultural traits.
Identify gaps and conflicts
Leadership must acknowledge these discrepancies and decide that the aspirational culture is in fact what they need and want. The OED team can help leaders understand how culture is affecting factors such as performance, employee engagement, and employer brand.
Develop change initiatives
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
Team Formation Process
- Forming.
- Storming
- Norming
- Performing
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.
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.
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.
Performing
The group becomes fully productive, collaborative, and mutually supportive.
Team-building activities may focus on:
Goals and priorities.
Role and responsibility of each team member.
Processes
Interpersonal relationships
Span of control
refers to the number of individuals who report to a supervisor. Narrower spans of control are typically used when tasks are complex, subordinates are poorly trained or inexperienced, or a team effort is required.
