DESIGN SEMINAROrganization Design & Culture

Sandeep Supal07020520

Motivation

Practice of Strategy Design in Design Management

Psychology Lessons [HSS] Management of Organizational Behaviour

Entrepreneurial Drive

Management Education

What is Organization Design? /.. (def_, structures etc)

Organizational Architecture /.. (Design Models)

Elements of Organizational Structure /.. (Foundation)

Organization Design Process /.. (Design Phases)

Organizational Culture /.. (Planning-Implementation)

Organizational Assessment /.. (Team management, roles)

Strategies for Designing Aesthetic organizations

Organizational Learning : Case Study [Study on factors of Motivation of employees at HDFC Life Insurance]

Content

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Organization design can be defined as the• process of (re)shaping organization structure and roles of teams/members.• alignment of structure, process, rewards, metrics and talent with the strategy of the business which are necessary to create new capabilities to compete in a given market.

What is an Organization design?

Organizational Architecture

Review Possible Organizational Structures

There are five basic choices (plus hybrids) for design alternatives:

– 1. Functional: Units are formed according to major technical or professional function performed

– 2. Product Based: Units are formed around each of the major products (or services)

– 3. Customer or Geographical Area-Based: Units are formed around the characteristics or location of customers or markets

– 4. Business Process Teams: cross-functional teams structured around the major work processes

– 5. Matrix: Units are formed where individuals have accountability to two managers: one functional and one project/product

– 6. Hybrid: Units are formed which mix and match the above structures to create the best fit to their environment

Functional & Product-Service

Geographic, Customer & Business Centric

Matrix Organization

Elements of Organizational Structure

Work Specialization

[Explicit Roles and Responsibilities]

Chain of Command

[Lines of Authority/Reporting Relationships]

Departmentalization

[Communication and Information Flow (Knowledge Sharing)]

Centralization and Decentralization

[Actual Performance Measures]

Span of Control

Formalization

Develop and Prioritize Design

Principles

Identify Stakeholders

Identify Stakeholder Needs/Expectations

Create Design Principles

Prioritize Design Principles

Develop Alternatives

Evaluate Using Design Principles

Develop Advantages/ Disadvantages for each alternative

Confirm Organization Mission- Value, Strategy, Goals& Objectives

Create and Evaluate Org Structure Alternatives

Organization Design Process

Organization Designs

Functional Design

Pooled Sequential

Simple

Complex

Reciprocal

Technological Factors

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enta

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Place Design

Product Design

Multidivisional Design

Multinational Design

Network/Team Design

Virtual Design

Types of Org. Structures

Determinants and Outcomes

Organizational Culture

• Acceptance and appreciation for diversity• Employee Empowerment [opportunities/pride of work]• Strong communication with all employees regarding policies and

company issues• Strong company leaders with a strong sense of direction and purpose• Ability to compete in industry innovation and customer service, as

well as price• Guidance learning, training, and employee knowledge• Better aligning the company towards achieving its vision, mission, and

goals [lateral management]• High employee motivation and loyalty [reward and incentive]• Increased team cohesiveness across various departments and divisions• Promoting consistency and encouraging coordination and control • Shaping employee behavior at work, enabling the organization to be

more efficient

Characteristics of Healthy Organizational Cultures

Levels of Organizational Culture

Schein's model of organizational culture originated in the 1980s. Schein (2004) identifies three distinct levels in organizational cultures:

• artifacts and behaviors• exposed values• assumptions

Team AssessmentFormulation of Team Charter was prepared on following Team role characteristics:

Individual Contribution Personal Shortcomings Individual Performance Characteristic Approach Job Satisfaction Challenging Situations Problematic Circumstances

Team roles Identified through the charter:

Chairperson Shaper Ideas Person Monitor- Evaluator Company Worker Team worker Resource Investigator Job Finisher

Organizational Learning : Case Study

• Motivation [intrinsic | extrinsic] is the driving force which help causes us to achieve goals. • Objective was to study the factors of intrinsic motivation of an employee in an organization. The study was primarily done to identify and assess these factors on the scale of their importance for the employee motivation.• Method used in study is a simple research method of formulating hypothesis and testing their validation against the scores collected from the data set of employees.• 12 positive statements were made based on the following 6 factors of motivation and their correlation on BIG5 personality traits(a)Choice (b)Competence (c)Managerial Support(d)Meaningfulness (e)Progress (f)Hygiene Factors• e.g. Competent employees are progressive at work [0.65]:I feel I can succeed on tasks given by my boss. Were answered as positively as Questions like: I have achieved the promotion/increment atleast once in last 2 yrs.

Strategies for Designing Organizations

• Demarking the Intangible Assets which are the building blocks of the strategic organizational design process & contribute 70 and 90% of the value of organizations.• Strategic alignment: an organization is designed to achieve certain objectives therefore each of its components (units, teams, roles, processes) must align to these objectives.• Engagement of key stakeholders: those stakeholders who will operate in the new organization must be part of the design process – providing options and weighing in on key decisions.• Data-based decision making: the process makes it clear for the participants what the trade-offs are between different designs and it leverages data to help the design team make informed decisions.• For the aesthetic appeal of organizational design principles may be based on the beliefs and values that are inherent to a given organizational culture.

Opportunity to change

Preceding Hygiene factors

Accelerated work pace

Risk analysis

New Business propositions

Conclusion• The study of organization design is a structured process it entails the study of organizational elements, existing architecture and the design process.• The organizational culture is an important field to interpret the internal arrangement of entities in organization and adapt to changes of external environment.• Organizational learning is vital to assess any organization and the design process primarily revolves around this assessment.• Strategies for designing organizations are formulated based on organizational learning and overall organization working process.• Vital studies for HR development, organization design and innovation that big corporate outside are venturing currently.

References• Mckinsey Quaterly 2007 Lowell Bryan• Gibson, Ivancevich, Donnelly, & Konopaske. (2003). Organizations: Behavior, Structure, Processes• Kates, A., and Galbraith, J. R. (2007), Designing Your Organization: Using the Star Model to Solve Five Critical Design Challenges• Melcher, A.J. (1976). Structure and Process of Organizations: A Systems Approach• HSS 401 Mgmt of Organizational Behaviour [Robins, Luthans, Sekran]• Cross Cultural Assessment of OB in design oriented companies • Study of the process of organizational learning in software firms in INDIA• Exploring talent management in India: The neglected role of intrinsic rewards• Richard Daft : Organizational Theory and Design• How can organizations embrace Design Thinking? <Copernicus Consulting>