ORGANIZATIONAL EFFECTIVENESS & DEVELOPMENT
ORGANIZATIONAL DEVELOPMENT
IMPROVING ORG PERFORMANCE
aligning structure, roles and responsibilities, process, and culture with new strategic goals
IMPROVING TEAM PERFORMANCE
- often involves improving team formation and function
- help teams reach levels of productivity more quickly or help dysfunctional teams revise roles and behaviors.
OED concerns the overall structure and functionality of the organization, and involves measurement of long- and short-term effectiveness and growth of people and processes and implementation of necessary organizational change initiatives.
ORGANIZATIONAL THEORIES
OED INTERVENTION
ASSISSING OED INTERVENTION & WHY THEY FAIL
ELEMENT aligns with strategy
- Structure—the way the organization separates and connects its pieces.
- Systems—the policies that guide behavior and work, the processes that define how tasks will be performed, and the technology or tools used to support that work.
- Culture—the set of beliefs, attitudes, values, and behaviors shared by members of the organization and passed on to new members
- Values—principles that the organization and its leaders have explicitly selected as a guide for decisions and actions.
- Leadership—the model of behavior that leaders set for the rest of the organization
The way these elements are implemented and aligned can affect:
- The motivation employees apply to their work
- Employees’ engagement or identification with their work and the organization’s goals.
- Performance levels and results—the effectiveness and efficiency in reaching goals—for the entire organization, for its structural pieces (such as divisions, functions, teams), and for individual employees.
- Governance—the organization’s ethical and legal compliance and its approach to managing risk.
✅ HR will deliver a diagnosis or assessment and then a course of treatment or interventions that will be taken to correct performance obstacles.
PROACTIVE INTERVENTION
- identify and correct potential problems before they begin affecting performance
- prepare the organization to take advantage of anticipated opportunities
-Communication networks that allow critical information to be exchanged quickly, free of hierarchical structures that slow communication
-Structures that allow employees to make decisions quickly and independently.
REMEDIAL INTERVENTION
- make changes that bring an organization back on course toward its strategic goals
- typically intended/designed to resolve a problem or issue that is current or newly discovered and to bring about a long-term positive impact on the organization and its function
- 5 ways in which remedial interventions can impact an organization: Increase efficiency, Reduce employee burnout, Improve product performance, Shift from reactive to more proactive strategy, Address budget deficits
CHARATERISTIC OF EFFECTIVE OED INTERVENTIONS
Supported by top management
Helps reduce resistance to eventual change
Collaborative
Facilitates discovery of causes and development of solutions with critical input from those most closely involved (managers, supervisors, and employees) in intervention area
Strategically aligned
Helps ensure that plans reinforce, complement, and build on each other and support overall organizational goals and strategies
Producing sustainable results
Changes that can continue to deliver long-term results, perhaps because of management preparation or group involvement and acceptance of new processes and success criteria
Supporting continuous improvement
Aims at strengthening the organization in an ongoing manner by identifying weaknesses and opportunities and engaging employees in performance improvement (Continuous improvement is a basic tenet of the quality management programs to which many organizations today have committed.)
Using common tools
Allows for easy comparisons and collation of data
Using common language
Avoids confusion and misunderstanding
Explicit assumptions
Allow the validity of underlying assumptions to be challenged
Fact-based
Clarifies the difference between what is known and what is supposed
Evidence-based
Uses current best evidence to identify problems/issues specific to the organization through a commitment to continuous, up-to-date information and knowledge gathering and analysis
Oriented toward systems and processes
Uses systems theory to analyze problems (discussed elsewhere in further detail).
Flexibility
Recognizes and accepts that assumptions are likely to change
Multiple perspectives
Provides access to diverse perspectives
ACCESSING
- OED interventions must be assessed once they are concluded, so time must be allowed following the intervention to accurately measure its efficacy
- the client’s perception of the experience is also an important part of the assessment.
- Finally, HR should assess its own effectiveness and efficiency in conducting the intervention
WHY FAILS
- They never get started
- Not well plan
- Reluctance to take reasonable risks
- Insufficient or inappropriate data is collected or if no data is available
- Objectives are too grand or the number of changes necessary is too great. The resource is limited
- Inappropriate communication: communication pitfalls
-Leadership does not get involved
-The wrong messengers are used
-Communication is too sudden
-Communication is too late
-Communication is not aligned with organizational realities
-Communication is too narrow
ORGANIZATIONAL INTERVENTION
look at how the structure of the organization is helping or hindering the organization’s strategic progress
WHEN
- an Org is failing to meet its strategic objectives because its structure is inefficient and/or ineffective
- an Org Has changed its competitive strategies and needs to develop new skills and traits
ORG STRUCTURE
refers to the way in which work groups are related.
ORG DESIGN
refers to elements that support an organization’s functioning
STRUCTURE CHARACTERISTICS IN ORG DESIGN
DEPARTMENTALIZATION & TYPLES OF STRUCTURES
- refers to the way an organization groups its jobs and aligns effort
ALIGNING ROLES & RESPONSIBILOTIES IN NEW ORG STRUCTURE
= RACI
✅ helps an organization establish clarity around its critical activities by assigning responsibility and describing communication needs
PERFORMANCE GAP ANALYSIS
REDESINGING THE ORG
- The organization’s mission and vision and the strategies it is pursuing to achieve its goals.
- The way decisions are made
- The way information is communicated
- The processes used to perform work and the degree to which those processes connect parts of the organization’s structure and the way in which those linkages are managed
- The systems used to align the organization’s needs with the resources required to fill those needs
HR ROLES
- Providing leaders with a structural diagnosis by identifying the root causes of organizational performance issues
- Helping leaders evaluate a range of clear design options.
- Ensuring that leaders align organizational design decisions with short- and long-term strategic goals by identifying critical activities, strengths, and weaknesses
- Helping leaders understand their roles and responsibilities that ensure that the structure is properly implemented
- Continually monitoring the structure for alignment with the organization’s business strategy and highlighting challenges as needed
- Planning for internal or external resources to deliver appropriate short- or long-term development interventions and activities
WORK SPECIALIZATION
refers to the degree to which tasks are performed as separate jobs. Seen as increasing efficiency and quality, result in boredom and lack of quality. And in complex and technology- driven enterprises, specialization can also hamper collaboration and innovation.
LAYERS OF HIERARCHY
- range from the chief executive officer to the employee in a function
- The ratio of direct to indirect employees is a key metric of organizational efficiency
DECISION-MAKING AUTHORITY
describes how decisions are made within the organization. Authority relates to the scope of responsibilities that define the area in which a manager or supervisor is empowered to make decisions
FORMALIZATION
- refers to the extent to which rules, policies, and procedures govern the behavior of employees in the organization
❎ serve an organization well when uniformity is an imperative
❌ restrict employees’ abilities to respond to unusual situations or customer needs as well as stifle creativity and innovation
SPAN OF CONTROL
- refers to the number of individuals who report to a supervisor
- "FALT": many subordinates report to a few supervisors
❎ desire for subordinates to communicate directly with their ultimate supervisor and decision maker
❌ if too large can slow an organization, making it difficult for supervisors to make decisions quickly
CHAIN OF COMMAND
- refers to the line of authority in an organization
- organizations push decision-making authority downward or become matrixed, and as ad hoc or permanent work teams become more common, the line of authority can appear lateral or web-like.
FUNCTIONAL STRUTURE
departments are defined by the services they contribute to the organization’s overall mission
- Line unit: conduct major business (Sales, production)
- Staff unit: Perform specialized service for the organization (HR, Fin)
❎ Easy to understand, Specializations develop, Economies of scale, Easier communication within functions, Clear career paths
❌ Weaker customer or product focus, Potentially weak communication among functions, Weak grasp of broader organizational issues
PRODUCT / CUSTOMER structure
- departments are grouped under major product divisions
- Each division will have its own marketing, sales, manufacturing, and finance functions
❎Economies of scale,Product team culture, Product expertise, Cross-functional communication
❌ Regional or local focus, Weak customer focus
GEOGRAPHIC structure
- geographic regions or countries define the organizational chart
- Each region or country has its own complete and self-sufficient set of functions
- Similar with product/customer org chart, instead of product it replace with region/country/…
❎ Proximity to customer, Adapted to local practices, Quicker response time, Cross-functional communication
❌ Fewer economies of scale, Potential issues with consistency across regions (for example, practices, values, strategic focus)
MATRIX (dual chain of command)
- combines departmentalization by division or program and function to gain the benefits of both
WHEN - the vertical hierarchy begins to obstruct value activities
- silos get in the way of collaboration
✅ creates a dual rather than single chain of command
✅ requires good communication and collaboration between the managers
❎ Combination of cross-disciplinary capabilities and perspectives, Availability of best global talent, Flexibility and agility
❌ Complex reporting structures, Potential for conflicts between functions and projects over resources, Potential cultural conflicts on teams
RESPONSIBLE member perform the activity.
- multiple people may be assigned responsibility for a single activity and must coordinate performance with each other.
ACCOUNTABLE
- is in charge of the activity and answers to management for the activity’s performance
- approves and allocates resources
- should be only one accountable role
- also be involved in performing the activity or providing guidance and expertise.
CONSULTING
- provides advice or information necessary to perform the task
INFORMED
- receive communication about activities but do not perform or consult
Gaps in Required Knowledge and Skills
Activities designed to develop organizational talent
- Identify the talent needs of the organization. What is essential to meet the overall objectives?
- Develop existing staff
- Build talent pool.
A gap analysis must be performed between the skill set needed now or in the near future and the skill set as defined in current JD
- addressed through different types of training, coaching, and mentoring
- JD must be revised to align with current needs.
Technology Requirements
- Inadequate technology can prevent employees from performing efficiently
- Addressed through new or expanded technology
Process Requirements
- work processes can become detached from customer needs, changing technology, or changed work conditions
- Processes must be routinely audited for efficiency and the need for updating and then redesigned and tested.
Organizational Culture Requirements = Culture transformation intervention process
- Describe the current culture
- Identify the aspirational culture
- Identify gaps and conflicts
- Develop change initiatives
TEAM/ UNIT INTERVENTION
- OED interventions aimed at teams or units are often triggered by reports of poor performance
- focus on processes and interactions within and between teams
TEAM FORMATION PROCESS
4 STAGES
TEAM STRUCTURE & GROUP DYNAMICS
TEAM BUILDING
- involves a series of activities designed to help team members examine how they function now and how they could function better.
- Includes both the nature of their work (what they do or create together) and how they coordinate and collaborate on their efforts (how they work together).
3 CAUSES
- high levels of unresolved conflict within the team
- poor leadership
- poor communication
4 TARGETS
- New groups that must develop a team identity
- Dysfunctional groups that must identify and resolve conflicts that are hurting productivity.
- Existing groups that must redefine processes and relationships to be more productive or to align with the needs of a new strategic direction
- Virtual teams that must learn to trust each other and communicate and collaborate over distances and sometimes across different languages and cultures
- FORMING: Individuals come together around common activity and shared goals. Members are polite, but there is little sense of trust, shared experience, or common values
❌ Low level of commitment & communication
✅ Leader's role: provide vision, describe expectations, encourage perseverance
- STORMING: Individuals move past politeness, and there may be higher levels of discord as perspectives, styles, and agendas clash
❌ High level of conflict & dissent
✅ Leader's role: Enforce ground rules, increase levels of engagement provide coaching
- NORMING: create rules that guide behavior. They begin to establish a group identity and to identify “outsiders.”
❌ can dampen innovation and creative problem solving.
❎ growing sense of common direction, defined responsibilities & processes
✅ Leader's role: Facilitate communication & group decision making
- PERFORMING: The group becomes fully productive, collaborative, and mutually supportive
❎ High level of productive & self-direction
✅ leader's role: Monitor, evaluate, and foster improvement, motivate be celebrating accomplishments
TEAM STRUCTURE
- Skill diversity describes the amount of difference between the knowledge, skills, and abilities of the members of a team
- Authority dispersion refers to where the power to make decisions is concentrated on the team
- Permanence refers to the typical longevity of a team
GROUP DYNAMICS
may take place at two levels: intergroup (are between two different groups) and intragroup (between members of a group)
3 key ROLES
- Task roles help get the work done
- Social roles help maintain relationships and positive group function
- Dysfunctional roles weaken the group and reduce its productivity
✅ Benne and Sheats found that an individual’s role in a group can change under different circumstances
MANAGING GROUP DYNAMICS REQUIRES:
- Recognizing the need for both task and social roles.
- Quickly identifying and correcting dysfunctional roles, perhaps through offline discussions or coaching
- Understanding the usefulness of certain roles at certain points in the group process and making sure that these roles are present when needed and managed when they obstruct progress
TEAM BUILDING INTERVENTION
Goal is to facilitate the alignment of the management team with the team’s mission and goals and to develop effective team dynamics for working together to accomplish these goals.
TEAM BUILDING ACTIVITIES
- Goals and priorities: focus on understanding the team’s stakeholders better and developing better processes for engaging stakeholders ✅ The OED team may facilitate team meetings in which mission, vision, values, and norms are developed
- Role and responsibility of each team member ✅ The OED team can facilitate role and responsibility negotiation and definition.
- Processes for team activities, such as assigning tasks, monitoring progress, and evaluating results; for communicating and coordinating efforts; and for making decisions ✅ The OED team can help diagram processes in terms of inputs, requirements, and outputs.
- Interpersonal relationships within the team, such as building trust, communicating more effectively, resolving conflict, negotiating, and cultural awareness ✅The OED team can advise team leaders on changes that can build trust, facilitate workshops in which team members confront their disagreements, and guide them safely to effective solutions, ay also deliver developmental activities on these essential skills.