7028SR- GROUP- 1
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Topic1.2OrganisationalDesign-MechanisticorOrganic.pptx
Breakthrough Leadership Skills MN7028
Topic 2: Organisational Design
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Learning Outcomes
To contrast “Classical” models with human relation models of management
To trace some of the corresponding changes from traditional to contemporary models of organisational design
Explore the emergence of autonomous work teams (drivers?)
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Some alternative schools of management and some advocates
Classical: Taylor, Fayol, Weber
Human Relations: Mayo, (later McGregor, 1960s)
(Communication) Systems: Barnard
Learning Organisation (Senge, 1990)
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Job design in the context of personnel as a ‘cost’ to the business
Taylorism and Fordism
management studying the work methods for each job
establishing the most efficient methods
Scientific management: time and motion studies
Fordism; increased division of labour
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Fayol (1949)
Refocused attention away from the shop-floor toward management itself
‘General and Industrial Management’ pamphlet (1949) presented the functions of management as:
Planning: (including forecasting, setting goals, determining actions)
Organising: (designing a suitable organisational structure to effectively harness the HR and non-hr elements required)
Co-ordinating: uniting activities and providing required resources
Commanding (and directing): Including leadership and motivation towards goals
Controlling: ensuring they stick to the plan
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Fayol (continued)
Fayol’s 14 Principles of management (1949) implied :
a rigorous hierarchy (Unity of Command/Unity of Direction/line of command)
But also encouraged the nurturing of initiative in their workers by managers
Esprit de corps (Teamwork).
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Max Weber
Bureaucracy Theory (1947) emphasised:
‘order’
‘focus on authority’.
It can be seen as limited in the context of organisations viewed as social systems
It can also be seen as limited in the context of societal embeddedness
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Job design begins to recognise needs and broader contribution of the worker
Early industrial revolution: personnel had a welfare role
Consider origins Cadbury, Rowntree.
Rise of trade unionism: industrial relations role
The Hawthorne studies
‘soft’ HR tracks through to Mayo (1933), who founded the Human Relations school and McGregor (1960) who recognised that the needs of both the organisation and the individual need to be recognised
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Brings us to a consideration of Organisational Design (OD)
OD is the ‘process of assigning responsibilities and structuring work to support enterprise goals, objectives and strategies’ (Bloisi, 2007)
It is reflected in the title of Chandler’s iconic book: ‘Strategy and Structure: Chapters in the history of Industrial Enterprise’ (1962)’,
Two contrasting perspectives about the design of the organisation emerged in the 60s largely influenced by the works of Burns and Stalker (1966) and Lawrence and Lorsch (1969)
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Mechanistic structure
Hierarchical structure
Well-defined roles and responsibilities
Highly specified tasks
This form lends itself to organisations operating in stable marketplaces with little external change and low levels of uncertainty. Work efficiencies can be achieved through the structure but the design does not offer much versatility or flexibility.
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Organic structure
Knowledge is valued at all levels of the firm
Tasks are continuously being redefined in processes of collaboration
Knowledge may be found anywhere in the organisation and equates to power
Communications in the organic organisation serve to build knowledge rather than give orders
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Four basic organisational structures spanning 50 years
Since the 1960s organisations have been structured according to the following criteria:
Function
Geography
Product
Customer
Each of these designs ‘produces different behaviours and different outcomes’ (Bloisi, 2007) and also requires different trade-offs.
Whitbread
https://www.youtube.com/watch?v=6h3ngHtoMO0
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Contemporary organisation beyond the team level (work system design)
By Function
By Product
By Customer
Matrix Structure
Lattice structure
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Greater emphasis on the HRM orientation is further stimulated by:
The Great Depression (1929-1939)
‘Loss of faith’ in traditional mass-production techniques (Henderson, 2017)
The eclipse of US management practices by those used in Japan in the 80s.
E.g. Pascale, Managing on the Edge (1990)
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The Autonomous Work Group (AWG)
Tavistock Work Organization Model (e.g. Trist and Bamfoth 1951; Emery, 1963)
Work should be organized in teams.
Individual jobs should provide:
Variety;
A meaningful task;
An optimum work cycle;
Worker’s control over work standards;
Feedback of results;
A perceived contribution to end product.
The AWG concept is not dependent on any specific technology so it applicable in virtually all work situations.
(Henderson, 2017)
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Maslow and self-actualisation
‘Maslow’s influence is clearly stamped across the work design theories and practices of the latter half of the twentieth century.’
(Buchanan, 1994)
Theory of Motivation’ (1954) was the study of ‘ultimate human goals’.
Maslow’s work:
Emphasised primacy of individual needs
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General principles derived from ‘motivation theory’ (Maslow, 1954)
Importance of ‘self-actualisation’ of workers at an individual level
Set goals.
Involve the employees concerned in designing and agreeing the goals.
‘Stretch’ goals lead to significant increases in employee performance.
Link rewards to performance when possible.
Increase employees’ sense of ‘self-efficacy’ (confidence that they can perform the job or task well).
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General principles derived from motivation theory (cont’d)
Let employees know the expected level of performance and give them accurate and timely feedback.
Giving positive rewards for good performance is more effective in motivating people then punishing them for poor performance.
Perceived fairness or equity is vital to the motivation.
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McGregor (1961)
Influenced by Maslow’s theme of self-actualisation. Douglas McGregor wrote The Human Side of the Enterprise’ (1961). McGregor’s perspective embraced the themes of ‘participation, openness, trust, exchange and a resolution of the conflict between personal and organisational goals’ (ibid, foreword by G.Bennis).
McGregor developed the concepts of Theory X and Theory Y
Theory x: ‘people are a cost that must be monitored and controlled’
Theory Y: ‘people are an asset that should be valued and developed’
Also made the following observation: ‘The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly distributed in the population.’ (ibid)
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Job Design
‘Job design specifies the contents of jobs in order to satisfy work requirements and meet the personal needs of the job holder, thus increasing levels of employee engagement.’
Armstrong (2014, p. 145)
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Work Design
‘Work design is the creation of systems of work and a working environment that enhance organizational effectiveness and productivity, ensure the organization becomes a “great place in which to work” and are conducive to the health, safety and wellbeing of employees’.
Armstrong (2014, p. 136),
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Intrinsic Motivating through job design
Lawler (1969) identifies three elements to job design which are necessary to make a job ‘intrinsically’ motivating:
Feedback relating to performance: this should be meaningful (Armstrong, 2010). Armstrong also states that this means they be able to see more of the picture, i.e. how their role fits into the whole process.
Abilities: the jobholders must feel that they are making use of those abilities which they values.
Self-control (autonomy): the jobholders must feel they have discretion
Increased focus on ‘job characteristics’ in job design (Hackman and Oldham, 1976)
Hackman and Oldham, 1976, propose a ‘job characteristics model’ (ibid), comprising five key elements:
Skill variety (the range of skills and talents required)
Task identity (the breadth within the task)
Task significance (in relation to the “bigger picture”)
Degree of autonomy (discretion, e.g. in methods)
Feedback (clarity on performance)
If jobs are designed in a way that maximises these dimensions then three psychological states can occur:
Experience of meaningfulness at work
Experience of responsibility for work outcomes
Knowledge of results of work
Managing the intrinsic element through job design contd.
Robertson and Smith (2005) propose five similar aspects of the job design which can influence intrinsic motivation:
Skill variety
Pooling tasks together
Task significance
Degree of autonomy
Feedback (delivered through ‘good relationships and opening feedback channels’) (Armstrong, 2010)
Armstrong advocates adopting these approaches when setting up new work-systems or jobs, but he also stresses that ‘the greatest impact on the design of work systems or jobs is made by line managers on a day-to-day basis’
Job Design: The Job Characteristics Model (JCM) and how it relates to EE
Job Characteristics Model (Hackman and Oldham, 1976)
Skill variety: the extent to which a jobholder is required to use a range of different skills.
Identity: the extent to which a job involves the completion of a ‘whole’ piece of work with end-to-end responsibility.
Significance: the amount of impact that a job has, and the contribution that the job makes.
Autonomy: the amount of discretion that the jobholder has in making decisions about what to do and how to do it.
Feedback: direct information about the performance requirements of the job.
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Toyota Production System (TPS)
Features of both AWG and Taylorism?
Just–in-Time (JIT) production processes.
Teamwork
Jidoka quality principle (error-free processes)
Standardized work and kaizen (continuous improvement )
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Sparrow on Lean management
‘building people, then building products’
Toyota build teams of ‘skilful systems thinkers’ and build a culture of ‘challenge the status quo’ or continuous improvement (or Kaizen)
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Some mechanisms (largely driven by HR) which can help deliver lean management
‘genchi genbutsu’ (trans.: going to the real place of work)
‘Out-learning’ (matrix teams, action learning)
‘Yokoten’ (Communities of practice)
Finding the root cause of problems (facilitated by cultures of empowerment, collaboration, and challenging the status quo)
Retrospectives (frequent events to analyse and design activities) Maximising “pull” and minimising “push” activities (by a rigourous focus on quality and ‘perfection’ (Sparrow)
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Learning Organisation (Senge, 1990)
Personal Mastery
Mental Models
Shared Vision
Team Learning
… and the Fifth Discipline:
Systems thinking
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McDonaldization (Ritzer, 1993)
Efficiency
Calculability
Predictability
Control
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Smart working (CIPD, 2008)
Self-management
Virtual teams
Outcome-based performance criteria
High performance working
Flexibility in both hours and locations
Use of more advanced technology
Hot-desking and working from home
Trust
Alignment to business objectives
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Flexibility
Employers pursue flexibility to:
minimize human resource costs in both the short and long run.
protect the core from short term, fluctuations in market demand.
respond to the demands of an increasingly diverse workforce in terms of (i) legal compliance and (ii) discretionary entitlement to attract/retain Core employees.
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Types of flexibility (Henderson, 2017)
Functional flexibility
employees can be redeployed quickly to new tasks and activities (e.g. multi-skilled craftsmen and team-workers).
Numerical flexibility
enabling the organisation quickly to increase and decrease the numbers employed in response to market demand.
Financial flexibility
pay systems that reinforce the requirement for flexibility (e.g. performance-related pay, pay-for-skills).
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Some alternatives to full-time permanent employment
Temporary working
Part-time working
Job-sharing
Home-working
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New forms of employment (Henderson, 2017)
Employee sharing, where an individual worker is jointly hired by a group of employers.
Interim management, in which highly skilled experts are hired temporarily for a specific project or to solve a specific problem
Casual work, where an employer is not obliged to provide work regularly to the employee but has the flexibility of calling them on demand.
Voucher-based work where the employment relationship is based on payment for services with a voucher purchased form an authorised organisation that covers both pay and social security contributions.
Portfolio work where a self-employed individual works for a large number of clients
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New forms of employment (Cont’d)
New forms of employment which utilize Information and Communications Technology (ICT), such as ‘crowd working’ (Henderson, 2017)
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Contemporary ideas about Organisational Structure and Work Design
Greater emphasis on organisations as a social system, especially in contexts where “soft” HR practices are suitable.
Progression from control to enablement
Learning Organisation
Greater emphasis on organisations as a part of set of social relations outside the immediate organisation, e.g. Granovetter (2002), e.g. Teece’s concept of the business eco-system (e.g. 2007) in dynamic capability theory
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Selected References
BLOISI, W., COOK, C. W., & HUNSAKER, P. L. (2006). Management and organisational behaviour. Maidenhead, McGraw-Hill Education.
BUCHANAN, D. A., & HUCZYNSKI, A. (2019). Organizational behaviour. Part 4
CLEGG, S., KORNBERGER, M., PITSIS, T., & MOUNT, M. (2019). Managing and organizations: an introduction to theory and practice.
SENGE, P. M. (2010). Fifth Discipline: the Art & Practice of The Learning Organization. New York, Random House US.
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