ORGANIZATIONAL DESIGN AND DEVELOPMENT INTERVENTIONS

ORGANIZATIONAL DESIGN AND DEVELOPMENT INTERVENTIONS

Organizational design and development is a process that examines the operation and management of an organization in an effort to ensure efficiency and competitiveness (see Table 6--).

Definition

This has compelled companies to examine the way they do business and to restructure their organizations.

• Strategic Planning and Management (Vision, Mission)

• Environmental Scanning• Globalization• Benchmarking• Reengineering, Realignment, Restructuring• Team-building Strategies• Problem Solving and Decision Making• Culture and Diversity• Ethics• Spirituality in the Workplace


COMPONENT OF THE HPT MODEL

TABLE 6--

Organizational operations are affected by both internal and external factors. Political environments, the economy, technology, and social norms all have an impact on how an organization does business.

Conti…

Successful company leaders incorporate a variety of interventions to address these factors and to maintain an edge in their respective markets.

The interventions frequently used to affect organizational design and development are shown in Figure 6-13.





TABLE 6--13

Strategic Planning and Management

Strategic planning and management are the core inventions of organizational design and development.

Successful strategic planning and management operations are at the heart of an organization and reflect the essence of what the company does.

When organizations change, strategic planning and management provide direction to employees and serve as a guide to organizational purpose.

This is expressed in terms of the mission, or the purpose of the organization, and the vision, or how the organization will appear when it achieves success.

Conti…

Strategic planning is the process by which an organization envisions its future and develops the necessary goals and procedures to achieve that vision.

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To garner support and achieve success, a strategic plan must be easily communicated and must apply to the entire organization.

Strategic management supports the organizational vision through the day-to-day implementation of the strategic plan.

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Successful organizational change occurs when daily operations and innovations are directly connected to the strategic plan.

The results are shared common goals and a sense of ownership by employees and other stakeholders.

Conti…





TABLE 6--

Environmental Scanning

Environmental scanning is a strategic planning technique for monitoring the trends in the external environment of an organization.

Conti…

This includes any political, economic, technical, social, national, or international factors that affect the operation of an organization.

Conti…

For example, political unrest in a foreign country may determine the price of a resource essential to the operation of a company, thus having an impact on the cost of doing business.

Conti…

Environmental scanning provides management with much of the information needed to develop and implement its strategic plan.

The process focuses decision-making on trends and issues that may have an effect on the organization's future.

Conti…

It can also help determine the education and training needs of current or future employees and assist in developing plans to meet those needs.

Environmental scanning also supports other organizational development interventionssuch as globalization,

benchmarking, and reengineering.





TABLE 6--

Globalization

Globalization is a means of achieving higher productivity and efficiency by identifying and focusing an organization’s efforts and resources in key world markets.

Conti…

The fundamental ideas behind globalization are free flow of commerce, capital, and labor, and the belief that individuals can significantly influence large social and economic systems. Globalization is accomplished in several ways.

Conti…

Outsourcing non-core activities, combining purchasing volumes, and centralizing key support activities are examples of globalization techniques.

Production and distribution activities are often

Conti…

consolidated to create more efficient operations.

Success is based on the ability to quickly adjust to the needs of the customer. For this reason, globalization is often more successful in smaller organizations.

Globalization often includes acquisitions, joint ventures, and coproduction.

It affects employees, customers, and suppliers. Globalization encourages people to attain a new awareness about their company and the world in

which they live.

Through this realization come new opportunities for personal and professional advancement and satisfaction.





TABLE 6--

Benchmarking

Through benchmarking, organizations compare themselves to the best industry practices in their field.

Understanding best practices helps company leadership identify what must be changed within an organization to achieve its vision.

Benchmarking helps

define customer requirements,

establish effective goals and objectives,

develop true measures of productivity, and

identify education and training needs

for current and future employees.

Effective use of benchmarking requires an understanding of the total environment including:

•What others have done

•What standards and practices have been implemented

•The organization's past performance

•Changes that affect current and future organizational performance





TABLE 6--

Reengineering, Realignment, and Restructuring

Reengineering, realignment, and restructuring mean bringing about change in the culture of a business by moving toward team-based management and individual ownership.

Conti…

Many organizations realize that process, quality output, efficiency, and employee satisfaction are attained only when

people share more responsibility in the organization and for its product.

This can happen with a radical restructuring of the basic values held among leadership, management, employees, and stakeholders.

Total Quality Management (TQM), stewardship, and learning organizations are examples of this type of change.

These are the Some of the outcomes resulting from successful reengineering.





TABLE 6--

Teambuilding

A key intervention associated with the restructuring and reengineering is teambuilding.

Teambuilding subscribes to the philosophy that people work better and more creatively in groups than they do alone.

Teams may consist of representatives from various groups within an organization.

Teambuilding inventions focus on trust, collaboration, openness, and other interpersonal factors.

Successful use of this intervention requires commitment and acceptance through organizational readiness, leadership support, and the support and consideration of workers.

Team building strategies are often used to strengthen an organization's culture. Quality circles, organizational matrices, and participative management are examples of teambuilding interventions.

Teambuilding encourages people to create common guidelines for conducting business and for promoting ownership of ideas and tasks.

The practice encourages

confidence,

unity, and

a sensible longing and satisfaction in employees and customers.





TABLE 6--

Problem Solving and Decision Making

Problem solving and decision making are empowerment tools that allow employees and teams to deal directly with problems.

Such empowered employees learn how to analyze problems and to select the right solutions using their own experiences and resources.

The process provides a structure for organizing work, setting priorities, identifying anddiagnosing problems, evaluating

alternative solutions, and creating and implementing plans to solve problems.

The results of these interventions are often reflected by:

•Fewer repeat problems

•An increased ability to anticipate problems, reducing the time spent solving them

•Fewer conflicts between teams and individuals

•Increased self-confidence, commitment, and satisfaction among employees

•More efficient implementation of action plans





TABLE 6--

Culture

Culture is a shared system of values, beliefs, and behaviors that characterize a group or an organization.

In a business, it is demonstrated in a way that things are done. Culture often originates from an organization's mission and vision.

It consists of the key values of the organization and the practices that support those values.

Culture change is the alteration or modification of an organization's values,

beliefs, or

behavior system.

Culture interventions redefine, clarify, emphasize, or create desired practices within a group.

The goal is to influence both employee behavior and production output.

Success is likely when it is clear to employees that strategic goals are consistent with organizational and strategic visions.

An example of a consistent values and goals is when an organization attempts to instill "quality" as a strategic value, but continues to base its operations on production “quantity."

In performance-enhancing cultures, managers share values and methods of doing business.

The culture is strategically appropriate for the marketplace and is adaptable.

Risk-taking, productivity, and trust are supported.

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ORGANIZATIONAL DESIGN AND DEVELOPMENT INTERVENTIONS