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Success & Failures in
Organizational Design
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Considerations when developing an organizationdesign
Start with a statement of strategic intent
Determine the high level organizational boundaries that supportthe strategic intent
Where you draw boundaries is critical to strategy execution
Include integrating mechanisms to ensure that the right dialogueoccurs among groups
While organization redesign is not about a silver bullet! or a"uic# fix$ it can generate "uic# results%
Organization design is more than moving the boxesoor executive performance is often blamed for poor design%
'reate the right integration mechanisms to align the productstructure with overall business ob(ectives
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How do you know an organization design issuccessful
)here is a faster cycle time for developing the rightproducts/services definedby company strategy%
)he company*s resources move "uic#ly when needed%
+our business is able to adapt to changes in mar#etconditions "uic#ly$
without creating a feeling of chaos to employees andsuppliers%
Wor# is getting done efficiently , without rewor#$excessive reviews%
)he right information is getting to the right people%
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Reasons for failure of organization design
eople are too detached and do not see their presentsituation in detail
ast experience is limited
Inability to wor# with the available resourcesreoccupation with decision rationality ma#es it
impossible for people to accept the rationality ofdecision ma#ing
Striving for perfection leads to inability to bear theaesthetics of imperfection
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5
Social -esponsibility
Social responsibility: refers to a manager*s dutyor obligation to ma#e decisions that nurture$ protect$enhance$ and promote the welfare and well.being of
sta#eholders and society as a whole
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6
/pproaches to Social -esponsibility
Obstructionist approach: the low end of theorganization*s commitment to social responsibility
0anagers choose to behave unethically and illegally
Defensive approach: a minimal commitment toethical behavior
0anagers attempt to stay within the law but do not attemptsocial responsibility beyond what is re"uired by law
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/pproaches to Social -esponsibility 1cont%2
Accoodative approach: theac#nowledgment of the need to support socialresponsibility 0anagers want to ma#e the right choices when called on
to do so!roactive approach: actively embrace the need
to behave in socially responsible ways 0anagers go out of their way to learn about the needs of
different sta#eholder groupsWilling to utilize organizational resources to promote the
interests not only of stoc#holders$ but of othersta#eholders
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8
/pproaches to Social -esponsibility
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Why 3e Socially -esponsible4
Wor#ers and society benefit directly becauseorganizations bear some of the costs of helpingwor#ers
5uality of life as a whole would be higher as aclimate of caring is encouraged
It is the right thing to do
'ompanies that act responsibly toward their
sta#eholders benefit from increasing business andsee their profits rise
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10
Why 3e Socially -esponsible4 1cont%2
"histle#blower: a person who reports illegal orunethical behavior )a#es a stand against unscrupulous managers or other
sta#eholders
6vidence suggests that managers who behavesocially responsibly will$ in the long run$ benefit allorganizational sta#eholders
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/rguments for Social -esponsibility
ublic expectations
7ong run profits
6thical obligation
ublic image3etter environment
Discouragement of further government regulation
3alance of responsibility and power
Stoc#holder interestsossession of resources
Superiority of prevention over cures
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/rguments against Social -esponsibility
8iolation of profit maximization
Dilution of purpose
'osts
)oo much power7ac# of s#ills
7ac# of accountability
7ac# of broad public support
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'reativity
0eaning9 'reativity means the ability to develop anew ob(ect or a new idea% 'reativity is regarded as a
vital tool in the invention and discovery of new ideasas well as ob(ects%
Definition9 /cc to )orrance$ 'reative thin#ing is theprocess of sensing difficulties$ problems$ gaps ininformation$ missing elements$ ma#ing guesses and
hypotheses about the solution of these deficiencies:evaluating and testing these hypotheses: possiblyrevising and restating them: and finallycommunicating the result%
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$raits of Creative !eople
'reative people are curious%
'reative people li#e challenges%
'reative people are not afraid to experiment
'reative people have high standards%'reative people #now how to accept and give
constructive criticism
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'omponents of 'reativity
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'reativity rocess
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'reativity rocess
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'reativity )echni"ues
3rainstorming0ind.mapping
Force field analysis
-apid prototyping
Synectics
Idea 3ox
0etaphor/ttribute listing
Serendipity
8isual thin#ing
0orphological analysis
Suggestion schemes
;euristics
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3enefits of 'reativity
)o individuals9
;elp you ma#e the best use of your talents$ aptitudesand abilities
6nhance the en(oyment of your (ob
'ause you to have more self.confidence
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3enefits of 'reativity
)o the Organization9
organizational adaptability
highly engaged$ motivated$ diverse and creative
talent delivers competitive advantage diversity of ideas$ capabilities and perspectives
attract$ retain$ and cultivate the brightest talent intheir industry
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An Experiential Approach to OrganizationDevelopment 8thedition
'hapter >?Slide @>
Strategy.'ulture Fit
Strategy9 'ourse of action used to achieve ob(ectives% -elates resources of organization to opportunities in
environment%
'ulture9 Set of values for setting priorities% 'ritical factor in implementation of strategy%
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An Experiential Approach to OrganizationDevelopment 8thedition
'hapter >?Slide @@
Figure >?%?Strategy.'ulture 0atrix
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An Experiential Approach to OrganizationDevelopment 8thedition
'hapter >?Slide @A
Strategy.'ulture 0atrix
Four basic alternatives in determining strategychanges9
>% 0anage change 1manageable ris#2%
'hange important and compatible with culture%
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An Experiential Approach to OrganizationDevelopment 8thedition
'hapter >?Slide @B
Strategy.'ulture 0atrix 'ontC
A% 0anage around culture 1manageable ris#2% 'hange important and incompatible with present culture% -einforce value system$ reshuffle power$ use leverage in the
organization%
B% 'hange strategy to fit culture 1unacceptable ris#2% 'hange important but incompatible with culture% 'hanging culture is explosive$ long.term process that may
be impossible%
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Strategic 'hange 0anagement
Strategic change is defined as changes in thecontent of a firms strategy as defined by its scope$resource deployments$ competitive advantages$ andsynergy
In simple form strategic change is a way of changingthe ob(ectives and vision of the company in order toobtain greater success%
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Strategic 'hange 0anagement rocess
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-ole of ;- professionals in strategic changemanagement
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-ole of ;- professionals in strategic changemanagement
$echnical Specialist: )echnical specialists apply intensive#nowledge of specific technical areas to address and resolveimmediate needs of business%
Advisor: /s technical consultants$ advisors develop innovative
;- solutions to address customer issues and achieve specificbusiness goals 1with an eye on those of tomorrow2%
Strategic !artner: Strategic business partners identify broad;- issues ahead of business leaders: they are high.levelconsultants who develop strategies to address long.term business
needs%%eader:)he leadershipEmanagement role can be and often is
incorporated into any of the above roles or stand alone$depending on where in the organization it is found%
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-ole of ;- professionals in strategic changemanagement
Role of Scout: Scan both the internal businessenvironment and external environment%
Role of Chess aster: Influencing others andconstantly evaluate all the other players or factors thataffect change%
Role of Cartographer:/dvise and educate executiveson how to best manage change efforts$ literally provideroad maps and critical elements for successful change%
Role of Architect:-ethin# the design of systems andprocesses for managing human performance%