Transcript No Slide Title

Manufacturing and
Service Technologies
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Technology
refers to the tools, techniques,
machines, processes and
actions used to transform
inputs into outputs
Technology
refers to the tools, techniques,
machines, processes and
actions used to transform
inputs into outputs
Organizational – Woodward
Service
Departmental – Perrow
Interdependence–Thompson
Woodward’s Classification Based on
System of Production
Organic, with
• Small-batch and personal
unit production supervision used
for control
• Large-batch and
Mechanistic
with
mass production
both impersonal
controls and
• Continuous
supervision
process
Organic, with
production impersonal control
of process
Computer-Integrated
Manufacturing
• Computer-aided design
– (CAD)
• Computer-aided manufacturing
– (CAM)
• Integrated Information Network
Relationship of Computer-Integrated Manufacturing
Technology to Traditional Technologies
Flexible
Manufacturing
Small batch
NEW
Customized
Mass
Customization
CHOICES
PRODUCT FLEXIBILITY
Mass
Production
Continuous
Process
Standardized
Small
Source: Based on Jack Meredith, “The Strategic Advantages of New
Manufacturing Technologies For Small Firms.” Strategic Management
Journal 8 (1987): 249-58; Paul Adler, “Managing Flexible Automation,”
California Management Review (Spring 1988): 34-56; and
Otis Port, “Custom-made Direct from the Plant.”
Business Week/21st Century Capitalism, 18 November 1994, 158-59.
BATCH SIZE
Unlimited
Comparison of Organizational Characteristics Associated with
Mass Production and
Computer Integrated Manufacturing
Characteristic
Mass Production
CIM
Structure:
Span of Control
Wide
Narrow
Hierarchical levels
Many
Few
Tasks
Routine, repetitive
Adaptive,
Specialization
High
Low
Decision making
Centralized
Decentralized
Overall
Bureaucratic,
mechanistic
Self-regulating, organic
craft-like
Major changes in org. design and structure are needed
Differences Between Manufacturing and
Service Technologies
Service Technology
1.
2.
3.
4.
5.
6.
7.
8.
Intangible product
Production and consumption take
place simultaneously
Labor & knowledge intensive
Customer interaction generally
high
Human element very important
Quality is perceived and difficult
to measure
Rapid response time is usually
necessary
Site of facility is extremely
important
Service :
Airlines, Hotels, Consultants,
Healthcare, Law firms
Manufacturing Technology
1.
2.
3.
4.
5.
6.
7.
8.
Tangible product
Products can be inventoried for
later consumption
Capital asset intensive
Little direct customer interaction
Human element may be less
important
Quality is directly measured
Longer response time is
acceptable
Site of facility is moderately
important
Product and Service:
Fast-food outlets, Cosmetics,
Real estate, Stockbrokers,
Retail stores
Product:
Soft drink companies, Steel Compani
Auto manufacturers, Food processin
plants
Configuration and Characteristics of Service
Organizations vs. Product Organizations
Service
Product
Structure:
Separate boundary roles
Few
Many
Geographical dispersion
Much
Little
Decision making
Decentralized
Centralized
Formalization
Lower
Higher
Employee skill level
Higher
Lower
Skill emphasis
Interpersonal
Technical
Human Resources:
Variety – Frequency of unexpected
and novel events
Perrow
Departmental Technologies
Analyzability – Reduced to
predetermined steps
• ROUTINE
– High analyzability
– Low variety
– Examples:
•
•
•
•
Sales
Clerical
Drafting
Auditing
• CRAFT
– Low analyzability
– Low variety
– Examples:
• Performing arts
• Trades
• Fine goods
manufacturing
Departmental Technologies
• ENGINEERING
– High analyzability
– High variety
– Examples:
•
•
•
•
Legal
Engineering
Tax accounting
General accounting
• NONROUTINE
– Low analyzability
– High variety
– Examples:
• Strategic planning
• Social science research
• Applied research
Relationship of Department Technology to
Structural and Management Characteristics
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
Mostly Organic Structure
Moderate formalization
Moderate centralization
Work experience
Moderate to wide span
Horizontal, verbal
communications
1.
2.
3.
4.
5.
Organic Structure
Low formalization
Low centralization
Training plus experience
Moderate to narrow span
Horizontal communications
meetings
CRAFT
NONROUTINE
Mechanistic Structure
Mostly Mechanistic Structure
High formalization
High centralization
Little training or experience
Wide span
Vertical, written
communications
ROUTINE
1.
2.
3.
4.
5.
Moderate formalization
Moderate centralization
Formal training
Moderate span
Written and verbal
communications
ENGINEERING
Workflow interdependence
Thompson
low
TECHNOLOGY
Long linked
high
Mediating
Intensive
INTERDEPENDENCE
Pooled
Sequential
(product delivery)
(product manufacture)
Reciprocal
(new product development)
COORDINATION
Standardization
Rules
Standardization
Rules
Planning
Schedules
Standardization
Rules/Planning
Schedules
Mutual adjustment
Primary Means to Achieve Coordination for Different
Levels of Task Interdependence in a
Manufacturing Firm
INTERDEPENDENCE
Reciprocal
(new product development)
COORDINATION
High
Horizontal structure,
cross-functional teams
Face-to-face communication,
Unscheduled meetings,
Full-time integrators
Sequential
(product manufacture)
Mutual
Adjustment
Scheduled meetings, task forces
Vertical communication
Pooled
(product delivery)
Planning
Plans
Rules
Low
Standardization
Job Design
Sociotechnical Systems Model
The Social System
The Technical System
Individual and team
behaviors
Type of production
technology (small batch,
mass production, CIM, etc.
Organizational/team
culture
Management practices
Leadership style
Degree of communication
and openness
Individual needs and
desires
Design for
Joint Optimization
Work roles, tasks,
workflow
Goals and values
Skills and abilities
Level of interdependence
(pooled, sequential,
reciprocal)
Physical work setting
Complexity of production
process (variety and
analyzability)
Nature of raw materials
Time pressure
Team Member Evaluation
Rater:
Date:
To what extent are the following statements true about the teams member' group involvement for
this rating period.
A Little
True
1
Somewhat
True
2
Moderately
True
3
Mostly
True
4
Team Member
Task Functions
1.
Keeps the team focused on tasks
2.
Helps the team come to decisions
3.
Present relevant facts or information
4.
Completes group assignments at a high quality level
5.
Suggests new ideas/way of approaching problems
6.
Ask for relevant facts or information
7.
Clarifies the relationships among the various ideas
8.
Checks with the team to determine if the group is ready
to make a decision or take some action
4
3
4
4
5
4
5
3
1
4
4
Very
True
5
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Organizational
Life Cycle
Large
Streamlining,
small-company
thinking
Development of teamwork
Addition of internal systems
S
I
Z
E
Crisis:
Need for
revitalization
Provision of clear direction
Creativity
1.
Small Entrepreneurial
Stage
Crisis:
Need for
leadership
2.
Collectivity
Stage
Crisis:
Need for
delegation
with control
Crisis:
Need to deal
with too much
red tape
3.
Formalization
Stage
4.
Elaboration
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Continued
maturity
Decline
Organizational Life Cycle
Large
S
I
Z
E
Small
•Little or no
Structure
•Direct
Supervision
•Get
Customers – 1
key
•Deliver
Product
•Owner does it
Creativity
all
•Start up
capital
•24 hrs a day
1.
Entrepreneurial
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Organizational Life Cycle
Large
S
I
Z
E
Provision of clear direction
Creativity
Crisis:
Need for
leadership
Small
1.
Entrepreneurial
Stage
Crisis:
Need for
delegation
with control
2.
Collectivity
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Organizational Life Cycle
Large
S
I
Z
E
Small
Creativity
1.
Entrepreneurial
Stage
•Super of Super
•Survival
•Owner makes
all decisions
• Cash flow
•Break even
•Planning
•Earn Marginal
returns
•Begin to
develop
departments
•Begin of
functional
•Mom & Pop
2.
Collectivity
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Organizational Life Cycle
Large
Addition of internal systems
S
I
Z
E
Provision of clear direction
Creativity
Crisis:
Need for
leadership
Small
1.
Entrepreneurial
Stage
2.
Collectivity
Stage
Crisis:
Need for
delegation
with control
Crisis:
Need to deal
with too much
red tape
3.
Formalization
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Organizational Life Cycle
Large
S
I
Z
E
Provision of clear direction
Creativity
Crisis:
Need for
leadership
Small
1.
Entrepreneurial
Stage
2.
Collectivity
Stage
•Functional
•Delegation
•Cash
management
•Professional
staff
• Cash plentiful
•Put basic
systems in place
•Serious budgets
Crisis: & Staff
•Line
Need
for
•Growth
delegation
•Efficiency and
with control
control
•Often sold
3.
Formalization
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Organizational Life Cycle
Development of teamwork
Large
Addition of internal systems
S
I
Z
E
Provision of clear direction
Creativity
Crisis:
Need for
leadership
Small
Crisis:
Need for
revitalization
1.
Entrepreneurial
Stage
2.
Collectivity
Stage
Crisis:
Need for
delegation
with control
Crisis:
Need to deal
with too much
red tape
3.
Formalization
Stage
4.
Elaboration
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Organizational Life Cycle
•How to
maintain
control with out
stifling
entrepreneurial
qualities
Large
S
I
Z
E
•Divisional
•Maturity
•Decentralization
Addition of internal systems •Cost control
• Strategic
Planning
•Extensive systems
Provision of clear direction
& formal controls
Crisis:
•Return on
Need toInvestment
deal
Creativity
with too •SBUs
much
Crisis:
Need for
red tape
•Professional
Crisis:
Need for
leadership
Small
1.
Entrepreneurial
Stage
2.
Collectivity
Stage
delegation
with control
3.
Formalization
Stage
4.
Elaboration
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Organizational
Life Cycle
Large
Streamlining,
small-company
thinking
Development of teamwork
Addition of internal systems
S
I
Z
E
Crisis:
Need for
revitalization
Provision of clear direction
Creativity
1.
Small Entrepreneurial
Stage
Crisis:
Need for
leadership
2.
Collectivity
Stage
Crisis:
Need for
delegation
with control
Crisis:
Need to deal
with too much
red tape
3.
Formalization
Stage
4.
Elaboration
Stage
ORGANIZATION STAGES OF DEVELOPMENT
Continued
maturity
Decline
Organization Characteristics During Four
Stages of Life Cycle
Characteristic
1.
Entrepreneurial
2.
Collectivity
3.
Formalization
4.
Elaboration
Nonbureaucratic
Prebureaucratic
Bureaucratic
Very Bureaucratic
Informal, one-person show
Mostly informal, some
procedures
Formal procedures,
division of labor,
specialties added
Teamwork within
bureaucracy, small-company
thinking
Products or services
Single product or service
Major product or service
with variations
Line of products or
services
Multiple product or services
lines
Reward and control
systems
Personal, paternalistic
Personal, contribution to
success
Impersonal, formalized
systems
Extensive, tailored to product
and department
By owner-manager
By employees and
managers
By separate innovation
group
By institutionalized
R&D
Survival
Growth
Internal stability, market
expansion
Reputation, complete
organization
Individualistic,
entrepreneurial
Charismatic, directiongiving
Delegation with control
Team approach, attack
bureaucracy
Structure
Innovation
Goal
Top Management
Style
Organizational Control
The systematic process through which
managers regulate activities to make them
consistent with the expectations established
in plans, targets, and performance standards.
Environmental Discontinuity
• A large change in the organization's
environment over a short period.
• As organizations adapt to these changes
with modifications in strategy, the control
system must reflect the changes.
Organizational Control Systems
Flexible
Clan
Formal
Control
Orientation
Bureaucratic
Market
Stable
Internal
External
Forms of Attention
Organizational Control Systems
Flexible
Clan
Formal
Control
Orientation
Bureaucratic
Market
Stable
Internal
External
Focus of Attention
Traditional Bureaucratic Control
•
•
•
•
•
•
Rules and procedures
Management control systems
Hierarchy of authority
Quality control department
Selection and training
Technology.
Organizational Control Systems
Flexible
Clan
Formal
Control
Orientation
Bureaucratic
Market
Stable
Internal
External
Focus of Attention
Market Control
•
•
•
•
•
Price
Efficiency
Sales in relation to costs
Competition
Exchange
Organizational Control Systems
Flexible
Clan
Formal
Control
Orientation
Bureaucratic
Market
Stable
Internal
External
Focus of Attention
Clan Control
• Social values, traditions, common beliefs,
and trust to generate compliance with
organizational goals
• Implemented by
- Corporate culture
- Peer groups
- Self-control
- Employee selection and socialization.
Kaplan & Norton
Balanced Scorecard
Financial
Do actions contribute to improving
financial performance?
Examples of measures: profits,
return on investment
Customers
Internal Business Processes
How well do we serve our
customers?
Examples of measures: customer
satisfaction, customer loyalty
Mission
Strategy
Goals
Does the chain of internal activities
and processes add value for
customers and shareholders?
Examples of measures: order-rate
fulfillment, cost-per-order
Learning and Growth
Are we learning and changing?
Examples of measures: continuous
process improvement, employee
retention, new product introductions
TOP
(strategy, plans,
non-programmed)
Evolution of Organizational Applications
of Information Technology
3. Strategic Weapon
INTERNAL
• Extranets
• Networking
• E-Commerce
• Intranets
• Enterprise resource • Network
structure
planning
HIGH
MANAGEMENT LEVEV
LOW
EXTERNAL
2. Business Resource
1. Operations
• Transaction
processing systems
• Data warehousing
FIRST-LINE
(operational, past,
programmed)
LOW
• Management Information
systems
• Decision Support Systems
• Executive information
systems
SYSTEM COMPLEXITY
Direction of
Information
System
Evolution
HIGH
Strategic Advantages from Information
Technology
• Low-Cost Leadership
– Operational efficiency
– Interdepartmental
coordination
– Rapid re-supply
• Differentiation
– Lock in customers
– Customer service
– Product development,
market niches
Two Approaches to Knowledge
Learning
Management Organization
Explicit
Provide high-quality, reliable, and fast
information systems for access of
codified reusable knowledge
People-to-documents
Develop an electronic
document system that
codifies, stores,
disseminates, and allows
reuse of knowledge
Invest heavily in information
technology, with a goal of
connecting people with
reusable codified knowledge
Data warehousing
Knowledge mapping
Electronic libraries
Intranets, networks
Tacit
Channel individual expertise
to provide creative advice
on strategic problems
Knowledge
Management
Strategy
Technology
Mechanisms
Person-to-person
Develop networks for
linking people so that
tacit knowledge can
be shared
Invest moderately in
information technology,
with a goal of facilitating
conversations and the exchange of tacit knowledge
Dialogue
Learning histories and
storytelling
Communities of practice
That’s it for
today
On to groups
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Decision Making
BUSINESS
the art of making
irrevocable decisions
based on
insufficient knowledge
Decisions Made Within
the Organization
• Complex, emotionally charged
issues
• Quick
• Less certain environment
• Less clarity about means/outcomes
• Requires more cooperation
Today’s
Business Environment
•
•
•
•
•
•
•
New strategies
Enron
Reengineering
Restructuring
Trust
Mergers/Acquisitions
Transparency
Downsizing
New product/market development
. . . Etc.
Role of corporation
Decision
Who Process
Action Plan
What
EvaluationIgnore
Where
When
Verify
Implement
Monitor
Chosen
Decision
Alternative Environment
Choose
Best
Alternative
Goals
8
7
6
Evaluate
Alternatives
5
Criteria
1
Develop
Alternative
Solutions
2
3
4
Define
Decision
Problem
Specify
Decision
Objectives
Diagnose
Problem
WHO
Consistency,
Specific,
Measurable,
Attainable
Behavioral Influence on Decision
Making
• Perception: A person's view of the world
– Stereotyping - projecting characteristics of a small number of
people as characteristics of the entire group
– Halo Effect - one characteristic overshadows all other
characteristics or aspects of the decision
• Subjective Rationality - Thinking logically but within one's
own framework
• Bounded Rationality - personal, environmental, time, and
organizational constraints which place
limits on decisions
Behavioral Influence on Decision
Making
• Recency - tendency to ascribe more importance to
things that happened most recently
• Satisficing - tendency to accept "adequate"
decision instead of the best
• Values
• Personality
• Propensity For Risk
Behavioral Influence on Decision
Making
• Potential for Dissonance
– Decision makers often experience cognitive
dissonance, which is a lack of harmony among
the decision maker’s various cognitions after a
decision has been made.
• Escalation of Commitment
– Refers to an increasing commitment to a
previous decision when a “rational” decision
maker would withdraw.
The Carnegie Model
Uncertainty
Information is
limited
Managers have
many constraints
Conflict
Managers have
diverse goals,
opinions, values,
experience
Coalition Formation
Hold joint discussion
and interpret goals
and problems
Share opinions
Establish problem
priorities
Obtain social support
for problem, solution
Simple
What is
available
Search
Conduct a simple,
local search
Use established
procedures if
appropriate
Create a solution
if needed
Satisficing
Adopt the first
alternative
that is acceptable
to the coalition
The Incremental Decision
Process Model
• Every step characterized by decision interrupts
• Identification Phase
– Recognition
– Diagnosis
• Development Phase
– Search
– Screen
– Design
• Selection Phase
– Judgment (evaluation – choice)
– Analysis (evaluation)
– Bargaining (evaluation – choice)
– Authorization
Series of nibbles
Small choices
One leads to another
Continual recycling
The Garbage Can Model of Decision-Making
Streams of events Organized Anarchy
Compose of problems, solutions, participants, choices
Problems
Solutions
When they connect a decision
gets made
Middle Management
Causes & Participants
Problems
Participants
Solutions
Choice
Goals unclear
Opportunities
Participants
Cause and effect undefined
Choice Opportunities
Choice Opportunities
Department A
Solutions
Department B
High turnover
Problems
Solutions
Choice
Opportunities
Participants
Solutions
Problems
Participants
Choice
Opportunities
Problems
Participants
Problems
Solutions
Choice
Opportunities
Participants
Problems
Solutions
Participants
Contingency Framework for Using
Decision Models
Certain
Certain
Solution
Knowledge
1
Problem
Consensus
Individual:
Rational Approach
Computation
Organization:
Management Science
3 Individual:
Judgment
Trial-and-error
Uncertain
Organization:
Incremental Decision
Process Model
2
Uncertain
Individual:
Bargaining, Coalition
Formation
Organization:
Carnegie Model
4 Individual:
Bargaining and Judgment
Inspiration and Imitation
Organization:
Carnegie and Incremental
Decision Process Models,
evolving to Garbage Can
Constraints and Trade-offs
During Non-programmed Decision-Making
Bounded Rationality:
Limited time, information,
resources to deal with complex,
multidimensional issues
Trade-off
Trade-off
Trade-off
Decision/
Choice:
Personal Constraints:
Desire for prestige, success;
personal decision style; and
the need to satisfy emotional
needs, cope with pressure,
maintain self-concept
Trade-off
Organizational Constraints:
Need for agreement, shared
perspective, cooperation,
support, corporate culture and
structure, ethical values
Trade-off
search for
a high-quality
decision
alternative
Constraints and Trade-offs
During Non-programmed Decision-Making
Bounded Rationality:
Limited time, information,
resources to deal with complex,
multidimensional issues
Trade-off
Trade-off
Trade-off
Decision/
Choice:
Personal Constraints:
Desire for prestige, success;
personal decision style; and
the need to satisfy emotional
needs, cope with pressure,
maintain self-concept
Trade-off
Organizational Constraints:
Need for agreement, shared
perspective, cooperation,
support, corporate culture and
structure, ethical values
Trade-off
search for
a high-quality
decision
alternative
Organizational Constraints:
Need for agreement, shared
perspective, cooperation,
support, corporate culture and
structure, ethical values
POLITICS
_____1. Politics will more often hurt than help an organization achieve its goals.
_____2. Political behavior is common to all organizations.
_____3. Political behavior occurs more often at upper rather than lower levels.
_____4. Political behavior arises in certain decision areas, like structural change, but is
absent from other areas, such as handling employee grievances.
POWER
Ability to influence others to
bring about desired outcomes
Politics
The exercise of power to
influence decisions
Good Human Relations
A good idea, analysis, or
solution is interesting
But of little value until
someone makes it happen
Making it happen
often involves politics
Interpersonal
Sources of Power
Worker
Legitimate
reward
Reward
Coercive
Expert
Referent
punishment
Boss
Worker
Worker
Organizational
Sources of Power
• Formal Position
• Resources
• Control of Decision Premises and
Information
• Network Centrality
Power and Political Tactics in
Organizations
Tactics for Increasing
the Power Base
Political Tactics for Using
Power
Tactics for Enhancing
Collaboration
1. Create dependencies
1. Build coalitions
1. Create integration devices
2. Provide resources
2. Expand networks
2. Use confrontation and
negotiation
3. Centrality
3. Control decision premises
3. Schedule inter-group
consultation
4. Satisfy strategic
contingencies
4. Enhance legitimacy and
expertise
4. Practice member rotation
5. Enter areas of high
uncertainty
5. Make preferences explicit,
but keep power implicit
5. Create superordinate
goals
Tactics for Increasing
Power Base
Dependency
Resources
Centrality
Nonsubstitutability
Coping with Uncertainty
Department/Personal
Power
Tactics for Using
Power
Build Coalitions
Expand Networks
Control Decision Premise
Enhance Expertise
Preferences Explicit
Power Implicit
Department/Personal
Power
Tactics for Increasing
Power with Other Dept.
Create Integration Devices
Confrontation & Negotiation
Inter-group Consultation
Rotate Members
Superordinate Goals
Department/Personal
Power
Managing
Organizational Change
and
Innovation
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Forces Driving the Need for Major
Organizational Change
Global Changes, Competition and Markets
• Technological Change
• International Economic Integration
• Maturation of Markets in Developed Countries
• Fall of Communist and Socialist Regimes
More Threats
More Opportunities
More domestic competition
Increased Speed
International competition
Bigger markets
Fewer barriers
More international markets
More Large-Scale Change in Organizations
Structure change
Strategic change
Culture change
Knowledge management, enterprise
Resource planning
Quality programs
Mergers, joint ventures, consortia
Horizontal organizing, teams, networks
New technologies, products
New business processes
E-commerce
Learning organizations
Forces Driving the Need for Major
Organizational Change
Global Changes, Competition and
Markets
• Technological Change
Global Changes, Competition and Markets
• Technological Change
• International Economic Integration
• Maturation of Markets in Developed Countries
• Fall of Communist and Socialist Regimes
• International Economic Integration
• Maturation of Markets in Developed
Countries
• Fall of Communist and Socialist
Regimes India & China
More Threats
More Opportunities
More domestic competition
Increased Speed
International competition
Bigger markets
Fewer barriers
More international markets
More Large-Scale Change in Organizations
Structure change
Strategic change
Culture change
Knowledge management, enterprise
Resource planning
Quality programs
Mergers, joint ventures, consortia
Horizontal organizing, teams, networks
New technologies, products
New business processes
E-commerce
Learning organizations
Forces Driving the Need for Major
Organizational Change
Global Changes, Competition and Markets
• Technological Change
• International Economic Integration
• Maturation of Markets in Developed Countries
• Fall of Communist and Socialist Regimes
More Threats
More Opportunities
More domestic competition
Increased Speed
International competition
Bigger markets
Fewer barriers
More international markets
More Large-Scale Change in Organizations
Structure change
Strategic change
Culture change
Knowledge management, enterprise
Resource planning
Quality programs
Mergers, joint ventures, consortia
Horizontal organizing, teams, networks
New technologies, products
New business processes
E-commerce
Learning organizations
Forces Driving the Need for Major
Organizational Change
Global Changes, Competition and Markets
• Technological Change
• International Economic Integration
• Maturation of Markets in Developed Countries
• Fall of Communist and Socialist Regimes
More Large-ScaleMore
Change
in Organizations
More Threats
Opportunities
More Threats
More Opportunities
Structure
change
Mergers,
joint
ventures,
consortia
More domestic
competition
Bigger
markets
More domestic
competition
Bigger
markets
Increased Speed
Fewer barriers teams, networks
Strategic change
Horizontal
organizing,
International
competition
More international markets
Increased
Speed
Fewer
barriers
Culture change
New technologies, products
International
competition
More
international
markets
Knowledge management,
New
business
processes
More Large-Scale
Change
in Organizations
Structure change
Resource planning
Strategic change
Culture change
Quality programs
Knowledge management, enterprise
Resource planning
Quality programs
Mergers, joint ventures, consortia
E-commerce
Horizontal organizing, teams, networks
New technologies,
products
Learning
organizations
New business processes
E-commerce
Learning organizations
Rush to the bottom Outsourcing
Two Types of Planned Change
Operational Change
based on efforts to improve basic
work and organizational processes.
Transformational Change
involves redesign and renewal
of the total organization.
Continuous
progression
Paradigm-breaking
burst
Affect
organizational
part
Transform entire
organization
Through normal
structure and
management
processes
Create new structure
and management
Technology
improvements
Breakthrough
technology
Product
improvement
New products,
new markets
Types of Organizational Change
Refer to managerial
actions to improve
effectiveness by
introducing change
through formal policies
and procedures.
Technology
Structure
Strategy
• Authority Goals
• Structural
characteristics
Time-based
• Administrative
Competition
procedures
A strategy of
• Management
competitionsystems
based
Products
• Understand customer
• A task focus emphasizes
• on
Successful
structural
•
New
strategy
and
may
define
new
needs
the
ability
to
job •design
change.
Values
is through a topmarket • change
deliver
products
and
Aware technology
• A technological
down approach.
• Norms
faster
than
Departments
cooperate
approaches emphasizes
Culture/People • services
• Attitudes
• competitors.
Ideas often lower levels
change
in the work flow.
• Beliefs
• Requires expertise from
several departments
• Behavior.
Dual-Core Approach Change
Administrative
Structure
Administrative
Core
Examples of Change:
Best Organizational
Design for Change:
Technology
Technical
Core
Top-Down
Bottom-Up
Strategy
Downsizing
Structure
Production
Techniques
Workflow
Mechanistic
Organic
Resistance to Change
Managers and employees often seem to prefer the status quo.
 Self-Interest: the fear of personal loss is perhaps the
biggest obstacle to organizational change.
 Lack of Understanding and Trust: do not understand
the intended purpose of a change, or distrust the
intentions.
 Uncertainty: the lack of information about future
events.
 Different Assessments and Goals: people who will be
affected by innovation may assess the situation
differently.
Three Distinct Steps for Achieving
Behavioral and Attitudinal Change
•
•
•
•
•
•
Unfreezing:
diagnosis stage
participants are made aware of problems in order to increase
their willingness to change their behavior
Changing:
intervention stage
individuals experiment with new workplace behavior
Re-freezing:
reinforcement stage
individuals acquire a desired new skill or attitude and are
rewarded for it by the organization
Unlearning
Relearning
Re-freezing
Force Field Analysis
DR I V I NG
FORCES
Kurt Lewin
E
Q
U
I
L
I
B
R
I
U
M
RESTRAINING
FORCES
Using Force Field Analysis to
Change from Traditional to JIT
Inventory System
Organizational Development
• Application of behavioral science
knowledge to:
Improve an organization's health and effectiveness
Cope with environmental changes
Improve internal relationships
Increase problem-solving capabilities.
OD Activities
 Team Building: enhances the cohesiveness and success of
organizational groups and teams.
 Survey Feedback: begins with a questionnaire distributed to
employees on values, climate, participation, leadership, and
group cohesion within their organization.
 Large-group Intervention: brings together participants from all
parts of the organization to discuss problems or opportunities
and plan for change.
 Process-consultation
 Intergroup activities
 Symbolic leadership
Barriers to Change
•
•
•
•
•
Excessive focus on costs
Failure to perceive benefits
Lack of coordination and cooperation
Uncertainty avoidance
Fear of loss
Factors Associated with Organizational
Excellence
Corporate
Culture
Organization
Design
Top
Management
Strategic
Orientation
•Close to the customer
•Fast response
•Clear business focus
and goals
•Establishing
inter-organizational
linkages
•Leadership
vision
•Bias toward action/
change/learning
•Foundation of core
values
•Facilitating
knowledge
management
•Simple form,
lean staff
•Empowerment
to increase
entrepreneurship
•Horizontal
structure and
collaboration
•Electronic
technology,
e-commerce
•Balanced
measurement
and control
•Climate of
trust
•Sharing
information
•Productivity
through
people
•Long-term
view
•Valuing
adaptation
and learning
Shewhart Cycle (PDCA) TQM
Cycle of Continuous Improvement
improve the
process based on
4. Act
what you learn.
Check the
results
a test or change
in a specific
1. Plan process
3. Check 2. Do
the test or
carry out the
change
The Learning Organization
An organization in which everyone is
engaged in identifying and solving
problems, enabling the organization to
continuously improve and increase its
capability.
OD Culture Change Interventions
• Large group intervention
• Team building
• Interdepartmental activities
Empowerment
•
•
•
•
•
Liberates employees
Gives employees more responsibility
Employees must work collaboratively
Employees accept more leadership
Employees participate in strategy.
Empowerment
Accountability
The Empowerment Continuum
Mini-Enterprise
Units
Self-Directed
Cross- Teams
Responsible
functional
For Decision
Teams
Process and
Quality
Strategy
Circles
High
Degree of
Empowerment
Participation
Groups
Suggestion
Programs
Job Redesign/
Enrichment
Give
Input
Make
Decisions
Participate
In
Decisions
Have no
Decision
Discretion
Low
Few
Sources: Based on Robert C. Ford and Myron D. Fottler,
“Empowerment: A Matter of Degree,” Academy of Management
Executive 9, no. 3 (1995): 21-31; Lawrence Holpp, “Applied
Empowerment,” Training (February 1994): 39-44; and David
P. McCaffrey, Sue R. Faerman, and David W. Hart, “The
Appeal and Difficulties of Participative Systems,” Organization
Science 6, no. 6 (November-December 1995): 603-27.
Employee
Skills Required
Many and Complex
Approaches and Techniques That
Facilitate Organizational Change
• Human Asset Approaches
– Refers to a category of change methods
designed to result in a far less specific and
much broader outcome of helping individuals
learn and grow professionally, and perhaps
personally.
• Team Building
– Refers to exercises designed to help work
groups improve their performance.
Approaches and Techniques that
Facilitate Organizational Change
• The Managerial Grid
– Refers to an approach to change based on a
theory of leader behavior. According to the
managerial grid approach, a balanced concern
for production and people is the most effective
leadership style.
• Ethics Training
– Programs designed to (1) develop employee
awareness of business ethics, and (2) focus on
firm specific ethics issues.
Approaches and Techniques that
Facilitate Organizational Change
• Mentorship Programs
– Mentoring programs help individuals develop
by providing specific job instruction,
disseminating organizational cultural norms and
values, dispelling organizational myths, and
generally transferring knowledge gained
through years of being part of the organization.
• Introspection Development
– Refers to any number of approaches to taking
time to reflect on the impact of change.
Approaches and Techniques that
Facilitate Organizational Change
• Multifacted Approaches
– Not all organizational change interventions fit
neatly into one of the three categories of
approaches.
– Sometimes techniques from different categories
may be used together in a multifaceted
approach to development.
GOOD LUCK
WITH THE
FINAL WORK
&
TEST