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Organizational
Development
Prepared for UHS 2062 lectures at UTM Skudai,
Johore, October 2009
srsiwok@gmail.com
Introduction
Organizational
development is the process
of improving organizational
performance by making
organizational-wide
changes.
Organizational structure
 Organizational structure refers to
the arrangement of positions in an
organization and the authority and
responsibility relationships among
them (as every organization is
made up of persons holding
particular positions or playing
certain roles).
An example of a structure
Director of
Operations
Marketing
specialist
Shipping
clerk
Dimensions of organizational
structure
 Traditional vs nontraditional
organizational structure
 Functional vs divisional structure
 Centralized vs decentralized structure
Traditional vs Nontraditional
 Traditional organization
structure(TOS) has formally defined
roles for their members, very rule
driven and stable & resistance to
change.
 Jobs and lines of status /authority
tend to be clearly defined in traditional
structures (kept within organizational
guidelines and standards).
Traditional vs Nontraditional
 Nontraditional organizational
structures (NOS), are characterized by
less formalized work roles and
procedures.
 Flexible and adaptable, without rigid
hierarchical characteristics.
 NOS generally have fewer employees
than the TOS.
 NOS and TOS may occur in the same
organization, but different
Traditional vs Nontraditional
 NOS are often organized around a
particular project or product line and
are responsible for all aspects of the
job.
 Examples of NOS:
◦ NASA
◦ Film crews
◦ Financial institutions etc
Characteristics of NOS
 High flexibility and adaptability
 Collaboration among workers
 Less emphasis on organizational
status
 Group decision making
Change of command
 The chain of command is the
number of authority levels in a
particular organization.
 The chain of command follows the
line of authority and status vertically
through the organization.
Span of control
 The span of control is the number of
worker who must report to a single
supervisor.
 An organization with a wide span of
control has many workers reporting to
each supervisor.
 An organization with a narrow span of
control has workers reporting to each
supervisor.
Span of control
 Based on the dimension of span of
control, an organization can be
described as either “tall” or “flat”.
 A “tall” organizational structure has a
long chain of command and a narrow
span of control
 A “flat ” organizational structure has a
short chain of command and a wide
span of control.
Organizational Change
 First step towards organizational
change is called the sacred cow
hunt (Kriegel & Bradnt, 1996) :
◦ The paper cow
◦ The meeting cow
◦ The speed cow
Employees acceptance of
change
 Carnall (1990, in Aamodt, 2007)
suggests that employees typically
go through five stages of
organizational change: denial,
defense, discarding, adaptation
and internalization.
Stage 1: Denial
 Denies that any changes will take
place
 Try to convince that old ways is
working
 Find reasons why the proposed
change will never work
Stage 2 : Defense
 When employees begin to believe
that change will actually occur,
they become defensive and try to
justify their positions and ways of
doing things.
Stage 3 : Discarding
 At some point employees began to
realize that not only that the
organization is going to change , but
the employees are going to have to
change as well .
 Change is inevitable; thus old ways
have to be discarded and start
accepting the change as the new
reality.
Stage 4 : Adaptation
 Employees test the new system,
learn how it functions, began to
make adjustments in the way they
perform.
 Tremendous energy is spent and
employees can often become
frustrated and angry.
Stage 5 : Internalization
 Employees become immersed in
the new culture, become
comfortable with the new system
and accepted their new coworkers
and the new work environment.
Important factors
 The extent to which the
employees readily accept and
handle the change is dependent
on :
◦ The reason behind the change
◦ The person making the change
◦ The personality being changed
Organizational culture
 Also often referred to as corporate
culture, or corporate climate.
 Organizational culture comprises of
the shared values, beliefs and the
traditions that exist among the
individuals in the organization.
 It is the culture that establish the
workplace norms of appropriate
behaviors etc
What is culture?
 Culture is the comprehensive term
that includes the various
understandings, traditions and
guidance which we all belong
(Gestwicki, 2007)
 “Culture forms the prism which
members of a group see the world
and create shared meaning” (
Bowman and Burgess, 1993, in
Gestwicki, 2007)
Changing culture
 Assessing the new culture:
◦ Needs assessment
◦ Determining executive direction
◦ Implementing consideration
◦ Training
◦ Evaluation of the new culture
Other steps…
 Creating dissatisfaction with the
existing culture
 Maintaining the new culture
 Selection of employees
Empowerment
What does empowerment mean?
 More accurate to describe
empowerment as a process as an end
state ( Gargiulo and Kilgo, 2005)
Making decisions to empower
 Factors in making decision to
empower:
◦ Importance of decision quality
◦ Leader knowledge of the problem area
◦ Structure of the problem
◦ Importance of decision acceptance
◦ Probability of decision acceptance
◦ Subordinate trust and motivation
◦ Probability of subordinate conflict
The Different Meanings of
Empowerment
When employer empowers
employees, what they mean is
giving more say in the day-to-
day activities.
Empowerment may mean
differently to employer and to
employees.
Levels of employee input
 Following
 Ownership of own product
 Advisory
 Shared /participative /team
 absolute
Consequences of
empowerment
 Personal
 Financial
 Career
References
 Aamodt, M.G (2007). Industrial
/organizational psychology. An applied
approach. Belmont, CA: Thomson
 Riggio, R. E. (1996). Introduction to
Industrial/ Organizational Psychology
(2nd. Ed). New York: Harper Collins
 Gargiulo, R & Kilgo, J ( 2005). Young
children with special needs ( 2nd ed.).
New York: Thomson

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Uhs 2062 Organizational Development

  • 1. Organizational Development Prepared for UHS 2062 lectures at UTM Skudai, Johore, October 2009 srsiwok@gmail.com
  • 2. Introduction Organizational development is the process of improving organizational performance by making organizational-wide changes.
  • 3. Organizational structure  Organizational structure refers to the arrangement of positions in an organization and the authority and responsibility relationships among them (as every organization is made up of persons holding particular positions or playing certain roles).
  • 4. An example of a structure Director of Operations Marketing specialist Shipping clerk
  • 5. Dimensions of organizational structure  Traditional vs nontraditional organizational structure  Functional vs divisional structure  Centralized vs decentralized structure
  • 6. Traditional vs Nontraditional  Traditional organization structure(TOS) has formally defined roles for their members, very rule driven and stable & resistance to change.  Jobs and lines of status /authority tend to be clearly defined in traditional structures (kept within organizational guidelines and standards).
  • 7. Traditional vs Nontraditional  Nontraditional organizational structures (NOS), are characterized by less formalized work roles and procedures.  Flexible and adaptable, without rigid hierarchical characteristics.  NOS generally have fewer employees than the TOS.  NOS and TOS may occur in the same organization, but different
  • 8. Traditional vs Nontraditional  NOS are often organized around a particular project or product line and are responsible for all aspects of the job.  Examples of NOS: ◦ NASA ◦ Film crews ◦ Financial institutions etc
  • 9. Characteristics of NOS  High flexibility and adaptability  Collaboration among workers  Less emphasis on organizational status  Group decision making
  • 10. Change of command  The chain of command is the number of authority levels in a particular organization.  The chain of command follows the line of authority and status vertically through the organization.
  • 11. Span of control  The span of control is the number of worker who must report to a single supervisor.  An organization with a wide span of control has many workers reporting to each supervisor.  An organization with a narrow span of control has workers reporting to each supervisor.
  • 12. Span of control  Based on the dimension of span of control, an organization can be described as either “tall” or “flat”.  A “tall” organizational structure has a long chain of command and a narrow span of control  A “flat ” organizational structure has a short chain of command and a wide span of control.
  • 13. Organizational Change  First step towards organizational change is called the sacred cow hunt (Kriegel & Bradnt, 1996) : ◦ The paper cow ◦ The meeting cow ◦ The speed cow
  • 14. Employees acceptance of change  Carnall (1990, in Aamodt, 2007) suggests that employees typically go through five stages of organizational change: denial, defense, discarding, adaptation and internalization.
  • 15. Stage 1: Denial  Denies that any changes will take place  Try to convince that old ways is working  Find reasons why the proposed change will never work
  • 16. Stage 2 : Defense  When employees begin to believe that change will actually occur, they become defensive and try to justify their positions and ways of doing things.
  • 17. Stage 3 : Discarding  At some point employees began to realize that not only that the organization is going to change , but the employees are going to have to change as well .  Change is inevitable; thus old ways have to be discarded and start accepting the change as the new reality.
  • 18. Stage 4 : Adaptation  Employees test the new system, learn how it functions, began to make adjustments in the way they perform.  Tremendous energy is spent and employees can often become frustrated and angry.
  • 19. Stage 5 : Internalization  Employees become immersed in the new culture, become comfortable with the new system and accepted their new coworkers and the new work environment.
  • 20. Important factors  The extent to which the employees readily accept and handle the change is dependent on : ◦ The reason behind the change ◦ The person making the change ◦ The personality being changed
  • 21. Organizational culture  Also often referred to as corporate culture, or corporate climate.  Organizational culture comprises of the shared values, beliefs and the traditions that exist among the individuals in the organization.  It is the culture that establish the workplace norms of appropriate behaviors etc
  • 22. What is culture?  Culture is the comprehensive term that includes the various understandings, traditions and guidance which we all belong (Gestwicki, 2007)  “Culture forms the prism which members of a group see the world and create shared meaning” ( Bowman and Burgess, 1993, in Gestwicki, 2007)
  • 23. Changing culture  Assessing the new culture: ◦ Needs assessment ◦ Determining executive direction ◦ Implementing consideration ◦ Training ◦ Evaluation of the new culture
  • 24. Other steps…  Creating dissatisfaction with the existing culture  Maintaining the new culture  Selection of employees
  • 26. What does empowerment mean?  More accurate to describe empowerment as a process as an end state ( Gargiulo and Kilgo, 2005)
  • 27. Making decisions to empower  Factors in making decision to empower: ◦ Importance of decision quality ◦ Leader knowledge of the problem area ◦ Structure of the problem ◦ Importance of decision acceptance ◦ Probability of decision acceptance ◦ Subordinate trust and motivation ◦ Probability of subordinate conflict
  • 28. The Different Meanings of Empowerment When employer empowers employees, what they mean is giving more say in the day-to- day activities. Empowerment may mean differently to employer and to employees.
  • 29. Levels of employee input  Following  Ownership of own product  Advisory  Shared /participative /team  absolute
  • 31. References  Aamodt, M.G (2007). Industrial /organizational psychology. An applied approach. Belmont, CA: Thomson  Riggio, R. E. (1996). Introduction to Industrial/ Organizational Psychology (2nd. Ed). New York: Harper Collins  Gargiulo, R & Kilgo, J ( 2005). Young children with special needs ( 2nd ed.). New York: Thomson