finish the homework
Topic 6
Organizational Structure & Change
1. Organizational Structures and Design
2.Organizational Change
3.Managing Change
Learning Outcomes
• When you have completed this unit, you should be able to:
1. Identify the need for and types of organizational structures and
designs
2. Critically analyze the structure of an organization
3. Create an organizational structure that supports vision and mission
of an organization
4. Explain the need to adapt structure so support change and growth
1. Organizational Structure & Design
• Every living organism has a structure and a design. We see this in plants, animals, humans – from the smallest single cell creature to the most complex, structure and design are evident.
• These structures and designs set them apart and enhance their unique features.
• Further, these structures are important to support growth.
Below are three images that illustrate the importance of structures.
Structures and design are essential for optimal outcomes.
Similarly, in organizations, structures & designs are important to support the growth of the organization, to cope with change, and for organizational agility.
•As an organization moves towards goals in keeping with
its clearly defined vision and mission, it is important for all
team members to, “be on the same page”, know their roles
and responsibilities and know how their individual
contributions connect to the big picture of the organization.
•A well thought through and crafted organizational
structure meets this need and connects activities and
people within a work organization.
An effective organizational structure helps people to
know:
(1)what work they should do/ what is expected of them
(2)how their work supports or relies on other team
members (mutual accountability)
(3) how these work activities contribute to the
fulfillment of the purpose of the organization.
Video: The Three Stone Cutters
Understand - job, engagement and purpose
• All organizational structures lie somewhere on a continuum between
Mechanistic and Organic organizations. Mechanistic organizations are very
formal, centralized and bureaucratic. While organic structures are
decentralized, team based, and are generally nimble, and therefore are able
to respond to the VUCA environment effectively.
• VUCA – volatile, Uncertain, Complex & Ambiguous
• Review of topic 2 (see diagram below from topic 2)
• Watch the following 9-minute video for a quick survey of types of organizational structures and their advantages/disadvantages
• Video – Types of Org Structures
• Video #1 – Organization of the Future – Deloitte Consulting
• Video #2 – Apple Organizes for innovation
• Video #3 – Reinventing the organization – Dave Ulrich
• Understand how organizational structures need to adapt with VUCA Environment
• VUCA – volatile, Uncertain, Complex, Ambiguous
• Complete Reading - Principles of Management – Chapter
10(Section 10.1 through 10.3)
https://openstax.org/books/principles-management/pages/10-
introduction
2. Organizational Change
“Change is the only constant in life” - Heraclitus, Greek philosopher
• Seen in every station in life – some stages require expansion & growth; others call for downsizing
• Organization change needs to be viewed the same way.
• An organization may start off as a small unit with the entrepreneurial spirit, but as it grows, it needs to adapt with success, growth and external market conditions.
• More staff will be needed, new departments will be added, training and development programs will be revamped and upgraded both reactively and proactively.
• Conversely, due to changing/declining conditions, downsizing & mergers maybe required (see next slide)
Exhibit 10.5 – from readings – stages of growth/decline
Types of Change
1. Structural change
•Has to do with the changes in the overall formal
relationships within an organization.
•Examples include reorganizing departments or business units, adding employee positions, revising job roles and
assignments.
•These changes are made to support broader objectives
such as to centralize or decentralize operations, empower
employees, or find greater efficiencies.
2. Technological change
• New technologies are often forced upon an organization as the environment shifts.
• For example, an industry upgrade in a commonly used software platform requires that employees learn new ways of working.
• Upgraded machinery or hardware may require employees to learn new procedures or restructure the way that they interact with one another.
• Web-based cloud technologies is an example of ways which new forms of collaboration are required.
• Technological change often induces structural change because it requires different ways of connecting across an organizational system.
3. Culture change
• Organizational culture refers to the common patterns of thinking and
behaving within an organization.
• Culture is rooted in the underlying beliefs & assumptions that people hold of
themselves & of the organization.
• These beliefs and assumptions create mindsets that shape the culture.
• Culture change is among the most difficult kinds of changes to create
within an organizational system.
• Often involves reshaping & reimagining the core identity of the
organization.
• A typical culture change process, if successful, may require many years to
achieve.
Approaches to Change
1. Incremental change
Refers to small refinements in current organizational practices or
routines that do not challenge, but rather build on or improve,
existing aspects and practices within the organization.
2. Transformational change refers to significant shifts in an
organizational system that may cause significant disruption to some
underlying aspect of the organization, its processes, or structures.
• Transformational change can be invigorating for some employees,
but also highly disruptive and stressful for others.
3. Deficit-based change – where leaders assume that employees will
change if they know they will otherwise face negative consequences.
4. Abundance-based change – where leaders assume that employees will
change if they can be inspired to aim for greater degrees of excellence in
their work.
•Important Note: Whatever type of change or
approach undertaken, all change initiatives
must be in alignment with organizational
mission & vision
3. Managing Change
• If change is inevitable, organizations have one of two options to respond: (a) resist
change or (b)embrace change.
• History is replete with examples of businesses organizations that are nonexistent, have
become irrelevant or lost their “sting” or effectiveness, because of resistance to
change.
• Attitudes that are resistant to change are expressed in responses and comments such
as “we have always done it this way”, “that will not work here” “we know it best,
because we have been in the industry for long” “we know better than them” “this is a
temporary set back, we will bounce back”.
• Kodak, Blackberry, Blockbuster videos, SEARS, Toys R us, are some recent examples of
businesses that failed to stay relevant.
MODELS of and
APPROACHES to Organizational Change
• Many models –we will look at three in detail and watch video that
outlines more models
1. Lewin: 3
stages
2. Kotter’s eight steps)
KOTTER : 8 Stages
• Video – Kotter 8 Steps model
3. Beckhard and Harris Model
A x B x D > X
Three factors must be present for meaningful organizational change to
take place. These factors are:
A = Dissatisfaction with how things are now;
B = Vision of what is possible;
D = Practicality of the change (minimal risk and disruption)
X = Resistance
• Then change is possible.
Beckhard
and
Harris
CHANGE FORMULA: “Organism”
A x B x D >
X
A = Dissatisfaction with how things are now
B = Vision of what is possible
D = Practicality of the change (minimal risk and disruption)
X = Resistance
Video
• 10 Change Models in 10 mins
Videos
• Video 1: Jason Clarke: Embracing Change – dealing with resistance to
change
• Video 2: Simon Sinek: Change - How to start a cultural transformation?
• What are your thoughts?
• Reminder:
1. Complete reading for Topic 6 after this lecture (section 10.1 - 10.3)
2. Work on JAP