IO-refresher 123.pptx

Industrial/ Organizational Psychology Jan Patrick Gutierrez, RPm, RPsy A. Organizational Theory (20%) 1.1. Describe the different organizational theories, models, and concepts 1.2. Apply the different theories of organizations to the overall understanding of human behavior in an organizational setti...

Industrial/ Organizational Psychology Jan Patrick Gutierrez, RPm, RPsy A. Organizational Theory (20%) 1.1. Describe the different organizational theories, models, and concepts 1.2. Apply the different theories of organizations to the overall understanding of human behavior in an organizational setting 1.3. Determine the focus and analyze the differences between these organizational theories: Classical Organizational Theory, Neo-classical, Modern, Contingency, Motivation, and Open System 1.4. Examine the importance of organizational theory, particularly on how organizations use that knowledge to help them improve organizational structure and design, leadership, managerial styles, group behavior, motivation, communication, operational efficiency, and organizational culture. B. Organizational Structures and Systems (20%) 2.1. Evaluate the value and importance of knowing and understanding the various organizational models and systems. 2.2. Recognize the pros and cons of the different types of organizational structures: functional, multi-divisional, flat, matrix, team, network, and hierarchical structures. 2.3. Define the elements that create an organizational structure and their distinct relationships: Job design, departmentation, delegation, span of control, and chain of command. 2.4. Apply your understanding of organizational design to appreciate organizational roles and performance accountability. 2.5. Explain the importance of aligning the organizational structure with the business strategy 2.6. Apply your understanding of the 4 business elements that must be aligned to ensure profitable performance and business success C. Human Resource Development and Human Resource Management (25%) 3.1. Differentiate (a) human resource development and human resource management (b) human resource development and organizational development (c) Human resource development and employee training 3.2 Identify the activities involved in human resource development 3.3 Examine the scope, coverage, and processes across the different areas of human resource development (training, learning, career development, talent management, performance appraisal, employee engagement and empowerment) 3.4. Analyze the organizational activities involved in human resource management (manpower planning, staffing, developing, monitoring, maintaining, managing relationship and evaluating). 3.5 Compare the role of the human resource manager and the human resource development manager in an organization. D. Team dynamics 4.1 Explain the importance and impact of team dynamics in an organization 4.2 Identify the stages of team dynamics 4.3 Examine group process that affect team effectiveness 4.4 Identify the common problems that occur in teams 4.5 Apply your knowledge of team dynamics to address team problems and improve team performance. E. Organizational change and development (20%) 5.1 Distinguish the difference between: (a) Organizational change and organizational development (b) Organizational development and Organizational transformation 5.2 Analyze the different factors driving organizational change 5.3. Identify the different types of large-scale organizational changes 5.4. Evaluate the different types of organizational interventions used to enhance organizational effectiveness, employee wellbeing and productivity 5.5 Examine the different strategies and techniques organizations use to manage change, and/or cope with change to achieve organizational efficiency Organizational Theory Organizational Theory study of the structures and operations of social organizations, including companies and bureaucratic institutions. Organizational theories Classical Neoclassical Focuses on Work Formal organizational structure Taylor, Weber, Fayol Focuses on Worker Informal Organizational Structure Hawthorne Classical Organizational Theory: Based on 3 approaches/theories Scientific management approach, Taylor, 1947 Planning of work to achieve efficiency, standardizatio n, specialization and simplification Bureaucratic approach, Weber, 1947 Administrative theory, Fayol, 1949 Bureaucracy definition: “Bureaucracy is an organisational structure that is characterised by many rules, standardised processes, procedures and requirements, number of desks, meticulous division of labour and responsibility, clear hierarchies and professional, almost impersonal interactions between employees”. Accomplishment of tasks, and include principles of management, the concept of line and staff, committees and functions of management. Scientific Management Principles · Science, not rule-of-thumb · Scientific selection of the worker · Management and labour cooperation rather than conflict · Scientific training of the worker Bureaucratic Approach Principles Structure Specializat ion Rationality Predictabili ty and stability Democrac y Administrative theory’s Elements Line and staff Committe e Functions of Managem ent Principles (14) Administrative Theory’s 14 Principles Division of Specialization Authority and responsibility Unity of direction Discipline Subordination of individual interest to general interest Unity of command Remuneration of personnel Administrative Theory’s 14 Principles Centralizati on Scalar chain Stability of tenure of personnel Initiative Order Equity Esprit de corps Principles of Neoclassical Organizational Theory Individual Work group Participati ve Managem ent Modern Theory Workers Environm ent Modern theories of organization Systems approach Sociotechnical Contingency/situational Elements of systems approach Components Linking process the individual the formal and informal organization patterns of behaviourrole comprehension the physical Communication Balance Decision analysis Goals of organization growth stability interaction Socio-technical approach People Technology (environme nt) It is not just job enlargement and enrichment which is important, but also transforming technology into a meaningful tool in the hands of the users. Contingency or Situational approach Organizati on Environm ent Social Work Guidelin es Political Economi c Legal Herbert A. Simon Contingency theory, also called decision theory, views organizations as a structure composed of choice-makers, and argues that there is no one right way to make a decision. Contingency theorists believe that management is responsible for analyzing business situations and then acting accordingly to address any issues or challenges. Motivation theory and Open Systems Theory The motivational theory includes the study of what drives and inspires members of an organization to work toward their professional goals. Ex. Theory X and Theory Y Open systems theory is a concept that argues that an organization's environment influences it, and understanding the impact of this influence may help managers develop more effective leadership strategies. Organizational Structure Organizational Structure Nystrom and Starbuck (1981) have defined structure as the arrangement and interrelationship of component parts and positions in an organization. It provides guidelines on: · division of work into activities; · linkage between different functions; · hierarchy; · authority structure; · authority relationships; and · coordination with the environment. Structure in an organization has three components (Robbins, 1989): Complexity referring to the degree to which activities within the organization are differentiated. This differentiation has three dimensions: horizontal differentiation refers to the degree of differentiation between units based on the orientation of members, the nature of tasks they perform and their education and training vertical differentiation is characterized by the number of hierarchical levels in the organization, and spatial differentiation is the degree to which the location of the organization's offices, facilities and personnel are geographically distributed; Formalization refers to the extent to which jobs within the organization are specialized. The degree of formalization can vary widely between and within organizations; Centralization refers to the degree to which decision making is concentrated at one point in the organization. Principles of Organizational Structure Specialization Coordination Decentralization and centralization Departmentaliza tion Line and staff relationship Specialization Specialization facilitates division of work into units for efficient performance. According to the classical approach, work can be performed much better if it is divided into components and people are encouraged to specialize by components. Specialization enables application of specialized knowledge which betters the quality of work and improves organizational efficiency. At the same time, it can also influence fundamental work attitudes, relationships and communication. Coordination Coordination refers to integrating the objectives and activities of specialized departments to realize broad strategic objectives of the organization. Hierarchy facilitates vertical coordination of various departments and their activities. Organizational theorists have over the years developed several principles relating to the hierarchy of authority for coordinating various activities. Principles of Hierarchy Unity of Command Every person in an organization should be responsible to one superior and receive orders from that person only. Fayol (1949) considered this to be the most important principle for efficient working and increased productivity in an organization. The Scalar Principle Decision making authority and the chain of command in an organization should flow in a straight line from the highest level to the lowest. The principle evolves from the principle of unity of command. However, this may not always be possible, particularly in large organizations or in research institutions. Therefore Fayol (1949) felt that members in such organizations could also communicate directly at the same level of hierarchy, with prior intimation to their superiors. Principles of Hierarchy The Responsibility and Authority Principle For successfully performing certain tasks, responsibility must be accompanied by proper authority. Those responsible for performance of tasks should also have the appropriate level of influence on decision making. Span of Control This refers to the number of specialized activities or individuals supervised by one person. Deciding the span of control is important for coordinating different types of activities effectively. Departmentalization Departmentalization is a process of horizontal clustering of different types of functions and activities on any one level of the hierarchy. It is closely related to the classical bureaucratic principle of specialization (Luthans, 1986). Function al Product User Territory Equipme nt Functional Departmentalization has the strength of: · easier communication with sub-units; · application of higher technical knowledge for solving problems; · greater group and professional identification; · less duplication of staff activities; · higher product quality; and · increased organizational efficiency (Filley, 1978). Product-based Departmentalization has the advantage of: · less conflict between major sub-units; · easier communication between sub-units; · less complex coordination mechanisms; · providing a training ground for top management; · more customer orientation; and · greater concern for long-term issues. De-centralization and Centralization Centralization (Decisions at higher levels) Decentralization (Decisions at lower levels) Line and Staff Relationships Line authority refers to the scalar chain, or to the superior-subordinate linkages, that extend throughout the hierarchy. Line (Achieve objectives) Staff (Supports the line employees) Types of staff Specialized staff conduct technical work that is beyond the time or knowledge capacity of top management, such as conducting market research and forecasting. General staff consists of staff assistants to whom managers assign work. Organization staff provide services to the organization as a whole. Their role is to integrate different operations across departments. Organizational Structure Types Hierarchical Matrix Divisional Horizontal/ Flat Team-based Network Functional Hierarchical Structure The hierarchical model is the most popular organizational chart type. In a hierarchical organization structure, employees are grouped with every employee having one clear supervisor. Hierarchical Structure Pros: Cons:  Helps establish a clear line of authority and reporting within the organization  Slow decision-making due to the complicated chains of command  Clarifies employee roles and responsibilities  A disconnect of lower-level employees from those of the top-level management  Establishes a clear career path for employees which can in turn keep them motivated  Allows employees to be in-depth specialists as they are more likely to have niche positions  Inconsistencies in communication due to the vertical and horizontal levels between teams  Restricted information due to the very little downward flow of information to the lowerlevel employees Functional organizational structure A functional organizational structure is a team structure that groups employees into different departments based on areas of expertise. Functional organizational structure Pros Allows employees to focus on their role Encourages specialization Help teams and departments feel selfdetermined Is easily scalable in any sized company Cons Can create silos within an organization Hampers interdepartmental communication Obscures processes and strategies for different markets or products in a company Matrix Structure A matrix organization is defined as one in which there is dual or multiple managerial accountability and responsibility. However, the term matrix means quite different things to different people and in different industries In a matrix there are usually two chains of command, one along functional lines and the other along project, product, or client lines. Other chains of command such as geographic location are also possible. Matrix Structure Pros: Cons:  Helps eliminate traditional siloed communications barriers  May result in confusion regarding roles, responsibilities, and priorities  Improved decision-making due to the availability of two chains of command  Conflict of power between the project manager and the functional manager  Allows employees to use their skills in different roles  Blurred lines of accountability  Better use of resources which leads to increased efficiency  Large overhead costs due to employing several managers Horizontal/Flat Structure The most important thing about this structure is that many levels of middle management are eliminated. This enables employees to make decisions quickly and independently. Thus a well-trained workforce can be more productive by directly getting involved in the decision-making process. In a flat structure, managers have a wide span of control with more subordinates , and there is usually a short chain of command. Horizontal/Flat Structure Pros: Cons:  Fosters better communication and collaboration between team members  Lack of opportunities for employee progression  More autonomy and responsibility to employees  Risk of power struggles arising due to the lack of a formal system  More transparency due to limited bureaucracy  Employees may have a lower sense of accountability because they have one lead  Because the chain of command is shorter, it allows for faster decision-making  Risk of confusion because employees don’t have a clear supervisor Network Structure Network organizational structure helps visualize both internal and external relationships between managers and top-level management. They are not only less hierarchical but are also more decentralized and more flexible than other structures. Its structure relies on open communication and reliable partners; both internal and external. The network structure is viewed as agiler than other structures because it has few tires, more control, and a bottom flow of decision making. Network Structure Pros: Cons:  Promotes healthy competition, innovation, and collaboration  Due to teams being independent and small, large-scale tasks may prove difficult to accomplish  Allows organizations to adapt quickly to changes in their environment  Paves way for an environment that fosters healthy competition, innovation, and collaboration  Smaller, streamlined teams help save costs and contribute to improved efficiency  Without immediate supervision, network organizations may struggle with control over employees  Can create an environment where employees compete in an unhealthy manner with each other to perform tasks  When work is outsourced, secret information about the organization may get breached Divisional Structure Divisional types of organizational charts have their own division which corresponds to either products or geographies. Each division contains the necessary resources and functions needed to support the product line and geography. Another form of divisional org chart structure is the multi-divisional structure. It’s also known as M-form. It’s a legit structure in which one parent company owns several subsidiary companies, each of which uses the parent company’s brand and name. The main advantage of the divisional structure is the independent operational flow, that failure of one company does not threaten the existence of the others. Divisional Structure Pros: Cons:  Makes it much easier to assign responsibility for actions and results  Multiple divisions add more overhead costs to the organization  Works well in markets where there is high competition as local managers can quickly respond to changes in local conditions  When a number of functional areas are spread among many divisions, it might lead to inefficiencies  Tends to yield faster responses to local market conditions  With skills being compartmentalized by division, it can be difficult to transfer skills or best practices across the organization  Helps build a culture that contributes both to higher morale and a better knowledge of the division’s portfolio  Since each division may have its own strategic goal, it might not always align with the overall company strategy. Team-based org structure A team-based structure is an organizational structure where several teams work toward a common goal while performing their own specialized tasks. They encourage less hierarchy in their structure, allowing organizations more flexibility from their professionals.