Organizational Perspective - Lecture Notes PDF

UNIT-5 ORGANIZATIONAL PERSPECTIVE Dr. Arpita Nayak Asst. Prof. KIIT DU Organizational Structure Organizational Structure : Organizational structure refers to the formal system of task and authority relationships that dictate how jobs are divided, grouped, coordinated, and supervise...

UNIT-5 ORGANIZATIONAL PERSPECTIVE Dr. Arpita Nayak Asst. Prof. KIIT DU Organizational Structure Organizational Structure : Organizational structure refers to the formal system of task and authority relationships that dictate how jobs are divided, grouped, coordinated, and supervised within an organization. It defines how activities such as task allocation, reporting relationships, and resource distribution are directed toward achieving organizational goals. Essentially, it provides a framework that ensures efficient communication, decision-making, and workflow within an organization. Example: A manufacturing company might have separate departments for production, quality control, and sales, each focusing on its specific function. Organizational Structure Key Components of Organizational Structure 1. Hierarchy: The levels of management and authority in an organization, ranging from top-level executives to entry-level employees. 2. Division of Labor: The way tasks are divided into specific roles or jobs. 3. Coordination: The processes and mechanisms in place to ensure that all parts of the organization work together harmoniously. 4. Formalization: The degree to which rules, procedures, and responsibilities are defined and enforced. Elements of Organizational Structure Division of Labour Elements of Org Structure Departmentalization Span of control Delegation of authority Centralization and Decentralization Formalisation Elements of Organizational Structure 1. Division of Labour Division of labour refers to breaking down work into smaller, specialized tasks. This approach allows individuals to focus on specific activities, enhancing efficiency and expertise in their areas. However, excessive specialization can lead to monotony and reduced employee satisfaction. Example: In a hospital, doctors specialize in surgery, pediatrics, or cardiology, while nurses and administrative staff handle specific support roles. 2. Departmentalization Departmentalization involves grouping jobs and tasks into departments based on similar functions, products, customer types, or geographic locations. This helps in organizing resources and fostering teamwork within specialized areas.Example: A technology company might have departments for software development, marketing, sales, and customer support, each focused on their respective functions. Elements of Organizational Structure 3. Span of Control Span of control refers to the number of employees a manager or supervisor can effectively oversee. A narrow span allows for closer supervision and better control, whereas a wider span encourages autonomy but may dilute managerial focus. Example: A school principal overseeing a small staff ensures direct supervision, while a corporate manager supervising 50 employees promotes self-management. 4. Delegation of Authority Delegation of authority is the process of transferring decision-making power from higher management to lower-level employees or teams. It empowers employees, fosters accountability, and speeds up decision-making processes. Example: In a retail chain, store managers may be delegated the authority to manage local promotions or hiring decisions, enabling quicker responses to local market needs. 5. Centralization and Decentralization This element concerns the distribution of decision-making authority. In centralized organizations, decisions are made at the top levels of management, while decentralized structures allow decisions at various levels within the organization. Example: A centralized bank headquarters might make all policy-related decisions, whereas its branches operate with a degree of autonomy for customer service matters.  Organizational Culture Organizational culture : It refers to the shared values, beliefs, norms, and practices that shape the behavior and interactions of members within an organization. It is often described as the organization’s personality, influencing how employees perceive their roles, relationships, and work environment. Understanding organizational culture is essential in organizational behavior (OB) as it affects employee motivation, job satisfaction, and overall organizational performance. Key Components of Organizational Culture 1. Values: Core principles that guide decisions and behaviors within the organization. For example, a company might prioritize innovation, customer focus, or teamwork. 2. Norms: Informal guidelines that dictate acceptable behavior in the workplace. 3. Artifacts: Tangible and visible aspects of culture, such as office design, dress code, and organizational symbols. 4. Beliefs and Assumptions: Deeply ingrained ideas about how the organization operates and what is considered right or wrong.  Creating, Sustaining and Changing a culture Creating a Culture : Creating a culture in an organization involves establishing shared values, norms, and behaviors that reflect the organization’s mission, vision, and goals. Leaders play a pivotal role in this process by defining the core values, setting examples through their actions, and embedding the desired culture into organizational practices. The creation of culture often starts with hiring employees whose beliefs and values align with the organization. Additionally, introducing rituals, ceremonies, and symbols helps reinforce the cultural identity. For example, a tech startup focused on innovation might emphasize open communication, flexibility, and risk-taking through collaborative workspaces and regular brainstorming sessions. Sustaining Culture : Sustaining a culture requires consistent effort to ensure that the established values and behaviors remain integral to the organization as it grows and evolves. This is achieved by embedding the culture in key processes such as onboarding, training, and performance evaluations. Leaders must also continuously communicate the importance of cultural values and recognize behaviors that align with them. For example, a customer-centric company like Amazon sustains its culture by rewarding employees who demonstrate exceptional customer service. Moreover, stories of organizational success tied to cultural values, such as teamwork or perseverance, help preserve the culture by inspiring current and future employees. Organizational Change Organizational change: It refers to the process through which an organization alters its structure, strategies, processes, culture, or overall direction to adapt to internal or external demands. In organizational behavior (OB), understanding and managing change is crucial, as it directly impacts employees, workflows, and overall performance. Drivers of Organizational Change 1. External Factors: Changes in market conditions, competition, regulatory requirements, or technological advancements. 1. Example: Organizations adopting sustainability practices in response to environmental regulations. 2. Internal Factors: Shifts in leadership, organizational goals, or operational inefficiencies. 1. Example: New leadership emphasizing diversity and inclusion within the company. Managing Resistance to Organizational Change Reasons to organizational change comes from two grounds ; 1. Individual resistance (fear of unknown, new learning, disruption to stable friendship, distrust to management) 2. Org resistance (threats to the power structure, structure of inertia (The structure of inertia in Organizational Behavior (OB) refers to the resistance to change within an organization due to deeply embedded systems, processes, and cultures), system relationships, sunk costs and vested interest). Managing Resistance to Organizational Change 1. Individual Resistance This refers to how employees or individuals react negatively to changes due to personal concerns or fears. Common reasons include: Fear of the Unknown: People feel anxious when they don’t understand what the change entails or how it will affect them. For example, introducing a new technology might leave employees worried about their ability to use it effectively. Need for New Learning: Change often requires individuals to acquire new skills or adapt to new ways of working, which can be intimidating or uncomfortable. Disruption to Stable Friendships: Changes in team structures or job roles can disturb established workplace relationships, making people hesitant to embrace the change. Distrust in Management: If employees feel that leaders have not been honest or transparent in the past, they may resist changes out of skepticism or fear of hidden agendas. Managing Resistance to Organizational Change 2. Organizational Resistance Organizations as a whole may also resist change due to structural or systemic reasons, including: Threats to the Power Structure: Changes can disrupt the balance of authority and control within an organization. For instance, a more collaborative approach might reduce the influence of managers used to a hierarchical structure. Structural Inertia: Organizations are often designed to maintain stability, with established procedures and routines. Changes can clash with this built-in resistance to disruption. System Relationships: Different parts of an organization are interconnected, and a change in one area can create ripple effects across other systems, causing pushback. Sunk Costs and Vested Interests: Organizations may have already invested heavily in current systems, processes, or strategies, making it difficult to justify abandoning them for new approaches. Managing Resistance to Organizational Change Education and communication Participation Facilitation and support Negotiation Coercion : The org can apply last resort/tactics that is apply direct threats. / Coercion refers to the use of force, threats, or pressure to influence employees' behavior, often as a last resort when other change management strategies fail. Organizations may use coercion to ensure compliance with new policies, overcome resistance to change, or maintain discipline.Example : A company introduces a new attendance system, but some employees refuse to use it. After multiple reminders, management warns that if they don’t follow the new system, their salaries may be deducted. This use of direct threats to ensure compliance is an example of coercion. Organizational Development Organizational Development (OD) refers to a planned, systematic approach to improving an organization's effectiveness, efficiency, and adaptability. Rooted in behavioral science, OD aims to enhance the well-being of employees and align organizational goals with employee needs. It emphasizes continuous improvement through collaborative efforts, focusing on creating a sustainable and high-performing workplace. Key Features of Organizational Development 1. Planned Change: OD is a structured and deliberate effort to bring about organizational improvements, rather than relying on ad-hoc or reactive measures. 2. Focus on Human Behavior: It prioritizes understanding and improving the behaviors, attitudes, and interpersonal relationships within the organization. 3. Collaborative Process: OD involves collaboration between leaders, employees, and external consultants to ensure holistic solutions. 4. Continuous Improvement: It promotes ongoing learning and adaptation to ensure the organization remains competitive and efficient. Objectives of Organizational Development Improve communication and collaboration within teams. Enhance leadership and management effectiveness. Foster a culture of innovation and adaptability. Align organizational processes with strategic goals. Boost employee satisfaction, morale, and productivity. Organizational Development Models Lewin’s Change Model Overview: Kurt Lewin’s model is one of the simplest and most well-known frameworks for understanding organizational change. It consists of three key stages: Unfreeze: This is the first step where the organization prepares for change. It involves breaking down existing mindsets, routines, and resistance to change. Leaders must create awareness about the need for change. Change: After unfreezing, the organization moves into the change phase. New behaviors, processes, and practices are introduced. This is where the actual transformation happens. Refreeze: In this final stage, the changes are solidified and stabilized within the organization. New norms are established, and employees begin to adopt and internalize the changes as the new standard. Example: A company wants to implement a new software system. Unfreeze: Leadership communicates the need for the new system, explaining its benefits and addressing employees’ concerns. Change: Employees are trained on the new system, and the software is introduced. Refreeze: After successful implementation, the system becomes part of daily operations, and employees regularly use it as part of their routine.  2. Greiner’s Growth Model Overview: Greiner’s model focuses on the evolution of organizations as they grow. It identifies different stages of growth and the challenges that come with each phase. Greiner proposed that organizations go through a sequence of five stages, each characterized by a crisis that must be overcome for the organization to continue growing. Stage 1 (Creativity): Start-up phase, were innovation and creativity drive growth. Stage 2 (Direction): The organization needs more formal structures and processes as it grows, which creates a leadership crisis. Stage 3 (Delegation): Power and decision-making are decentralized, which can lead to a crisis of control. Stage 4 (Coordination): The organization grows further, requiring coordination of activities. A crisis of bureaucratic structure may arise. Stage 5 (Collaboration): The final stage is focused on collaboration and flexible structures to solve problems, avoiding a crisis of innovation. Example: A small tech start-up starts with a few employees focused on product development (Stage 1: Creativity). As it grows, the founder needs to implement more structure and hire managers (Stage 2: Direction). Later, decision-making is distributed to more senior staff (Stage 3: Delegation). As the company expands further, they introduce better coordination mechanisms, such as central planning teams (Stage 4: Coordination). Finally, as the company matures, they focus on improving teamwork and collaboration across departments (Stage 5: Collaboration). 3. Leavitt’s Model Overview: Harold Leavitt’s model focuses on the interrelated nature of organizational components. He identifies four key elements that must be considered when making organizational changes: Tasks: The work that needs to be done to achieve organizational goals. People: The employees and their roles in the organization. Technology: The tools and processes used to accomplish the work. Structure: The formal organization of roles, responsibilities, and relationships. Leavitt’s model suggests that changes in one of these elements will impact the other three, so all components must be aligned for successful change. Example: A company wants to introduce a new automated manufacturing system. Task: The task of production will change because the machines will handle more of the work. People: Employees will need to be trained to operate the new system. Technology: New machines and software will be implemented. Structure: Organizational roles might shift, with some jobs becoming redundant or new roles being created.  4. Action Research Model Overview: The Action Research Model focuses on gathering data, diagnosing problems, and applying interventions in a continuous, iterative process. It involves collaboration between organizational members and OD practitioners. The model follows these basic steps: 1. Problem Diagnosis: Identify the problem or area of improvement in the organization. 2. Data Collection: Collect data through surveys, interviews, or observations to better understand the issue. 3. Data Analysis: Analyze the collected data to identify patterns or causes of the problem. 4. Action Planning: Develop an action plan to address the identified problems. 5. Implementation: Put the plan into action and execute the changes. 6. Evaluation: Assess the impact of the intervention and make adjustments if necessary. 7. Sustaining: Ensure that the changes are maintained and integrated into the organization over time. Example: A company notices low employee morale. Problem Diagnosis: The HR department and a consultant identify that poor communication between managers and employees is contributing to dissatisfaction. Data Collection: Employee surveys and interviews are conducted to gather feedback. Data Analysis: The feedback indicates a lack of clarity in expectations and feedback from managers. Action Planning: A plan is developed to improve communication, including regular one-on-one meetings between managers and employees. Organizational Development Interventions 1. Individual-Focused OD Interventions These interventions aim to improve the skills, behaviors, and attitudes of individual employees. The goal is to enhance personal development, job performance, and work satisfaction. By addressing individual needs and development, these interventions help employees contribute more effectively to the organization. Examples of Individual-Focused Interventions: Coaching: A one-on-one process where a coach helps an individual improve specific work-related skills, behaviors, or performance. Coaching often focuses on leadership skills, communication, and decision-making. Example: A new manager might receive coaching to develop their leadership abilities, such as how to motivate and manage their team effectively. Mentoring: A more experienced employee provides guidance, advice, and support to a less experienced employee to help them grow professionally. Mentoring is often informal and focuses on career development. Example: An experienced employee mentors a younger colleague, offering advice on navigating the company culture and improving their work skills. Training and Development: Workshops, seminars, and courses are provided to improve employees’ skills and knowledge in specific areas, such as communication, time management, or technical abilities. Example: A company may provide training to employees on how to use a new software system to improve efficiency.  Organizational Development Interventions 2. Group-Focused OD Interventions These interventions target groups or teams within an organization. The aim is to improve group dynamics, communication, collaboration, and overall team effectiveness. Effective teamwork is essential for productivity, innovation, and organizational success. Examples of Group-Focused Interventions: Team Building: Structured activities designed to improve the functioning of teams, enhance communication, and foster trust and cooperation among team members. Example: A company organizes a team-building retreat where employees engage in group activities to develop trust, solve problems together, and strengthen their working relationships. Conflict Resolution: Interventions aimed at resolving disagreements or tensions within teams. These often involve mediation, facilitated discussions, and training in conflict management skills. Example: When two departments have a conflict regarding resource allocation, an OD intervention may include a mediation session to address the issue and improve collaboration. Group Process Consultation: This involves working with a group to analyze and improve its functioning. The goal is to help teams understand their dynamics, such as how they communicate, make decisions, and resolve conflicts. Example: A consultant works with a project team to identify barriers to effective decision-making and suggests ways to improve communication and decision-making processes. Organizational Development Interventions 3. Organization-Focused OD Interventions These interventions focus on the entire organization and its systems. They are intended to improve organizational effectiveness, efficiency, and adaptability, and to align organizational processes with its strategic goals. Organization-focused interventions address structural, cultural, and strategic challenges at the macro level. Examples of Organization-Focused Interventions: Organization Diagnosis: A thorough assessment of the organization’s structure, culture, and processes to identify areas for improvement. This helps in understanding the root causes of organizational problems and designing interventions to address them. Example: A consultant is brought in to assess the company’s current performance and structure, identify inefficiencies, and recommend changes to improve productivity. Change Management: Structured approaches to managing organizational change, including the introduction of new processes, technologies, or structures. This involves preparing and supporting employees during the transition period. Example: A company undergoing a merger may implement change management strategies to help employees adapt to new organizational structures, leadership, and ways of working. Leadership Development Programs: These programs are designed to enhance leadership capabilities throughout the organization. They may include leadership training, succession planning, and mentoring programs for potential leaders. Example: A multinational corporation provides leadership development training to high-potential employees to prepare them for future leadership roles across different regions.