organizational effectiveness and change mgt

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1. ORGANIZATION EFFECTIVENESS & CHANGE MANAGEMENT BM-301- MBA 3RD SEMESTER 2. Unit I An Overview of Concepts of Organizational Change , Effectiveness and Development Chapters:-1,4,14 3. Chapter 1 Organization Effectiveness Organizational Effectiveness, being broad term, is also used to denote organizational Success It is the extent to which an organization achieves its goals with the given resources and means. 4. Definitions An organization is said to be effective if it is able to achieve its goals- S.P. Robbins Effectiveness is commonly referred to as the degree to which predetermined goals are achieved. Efficiency refers to the economical manner in which goal oriented operations are carried out- something of an input/output ratio- Jackson,Morgan, and Palillo. 5. ORGANIZATIONAL EFFICIENCY ORGANIZATIONAL EFFECTIVENESS 1. Measurable 1. Difficult to Measure(Multidimensional) 2. Criterion Internal Life of the Organization, Economic and Technical 2. Criterion External Life of the Organization, Broad Aspects 3. Narrow concept- sub part of Organizational Effectiveness 3. Broad concept encompasses efficiency 4. Actual 4. Futuristic 6. Effectiveness is a very broad concept as it considers the survival prospects of the organization, which are not determined solely by the efficiency of the internal system. Effectiveness considers the organization environment interface and also takes care of the human aspect of the organization. It is desirable that an effective organization should also be efficient. 7. Organizational effectiveness is expressed by the following factors 1. Production 2. Quality 3. Efficiency 4. Flexibility 5. Satisfaction 6. Competitiveness 7. Development 8. Survival 8. APPROACHES TO EFFECTIVENESS There are four main approaches to attain/measure effectiveness. A. Goal Attainment approach B. Systems Theory Approach C. Strategic Constituency Approach D. Behavioural Approach 9. Goal Attainment approach In Present Competitive era, without Effectiveness , existence itself is impossible for Organizations. The Goal Approach has been practised since long. According to this approach, an organization exists to accomplish the goals set . { who will set goals for Individuals & Organizations } 10. In Management Concepts, a mission is set for the organization From the mission, organizational goals are derived The goals set should be attainable & realistic Goals must be within the Organizations capability Eg:- MBO; In service industry Budgeting,Cost- Benefit analysis,linear Programming,& Incentive pay system 11. Mission Statements of Reputed Companies Tata Steel Limited Tata Steel recognizes that while honest and integrity are the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. Overall, the company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear, and thereby reaffirms its faith in democratic values. 12. Maruti Suzuki India Ltd To be the leader in the Indian automotive sector, creating customer delight and shareholder wealth Infosys Technologies Ltd To achieve our objectives in an environment of fairness, honesty , and courtesy towards our clients, employees , vendors, and society at large. 13. Tata Consultancy Services Ltd To help customers achieve their business objectives by providing innovative , best-in-class consulting, IT solutions, and services. Make it a joy for all stakeholders to work with us. 14. Goals Set in the OrganizationFUNCTION GOALS/OBJECTIVES SALES To Achieve 20 per cent growth during the current year over the previous year PRODUCTION To achieve 90 per cent of installed capacity PRODUCT To introduce two new products as identified by the marketing group HR To train specific groups for specific skills identified for achieving production and sales targets FINANCE To provide necessary financial resources for achieving the companys goals ADMIN To protect the assets of the company and monitor the sensitive transactions, which are conducive to achievements of companies goals 15. Basic activities determine the Organizational Effectiveness 1. Identification and procurement of various resources needed for the production 2. Efficient use of inputs 3. Production of tangible assets/services 4. Performance of various technical and administrative functions 5. Scanning the environment, identifying various factors which impact organization 16. 6. Developing growth oriented policies for production, finance,HR, R & D etc. 7. Market survey and modification of goals (if required) 8. Training and Development 9. Evaluation of Human Capital 10. Development of organizational culture, ethos, and climate 11. Ensuring quality of worklife 12. Maintaining an ideal worklife balance 17. Limitations of Goal Attainment Approach 1. It cannot be applied to organizations to intangible products. Ex:- Measuring the services provided by the transport agency( such as Railways), it cannot be measured in terms of quality but the same can be measured reasonably closer to reality by use of various scales. 18. 2. It is difficult to measure the performance of different units/sub units and individuals in a quantifiable manner. 3. Most of the organizations have dual objectives/goals which are in conflict with each other. Hence, Organizational Effectiveness cannot be measured. Ex:- Production Unit vs Marketing Unit 4. It is based on the consensus of all the employees. Usually the every member in the organization follow his own personal goals to large extent. 19. 5. Amitai Etzioni author of the article Two Approaches of organizational Analysis: A Critique and a Suggestion believes that goals , as ideal states, do not offer the possibility of realistic assessment,goals,as cultural entities, arise outside the organization as a social system and cannot arbitrarily be attributed as properties of the organization itself. 20. Systems Theory Approach 1. It is based on the open system model as applied to social system. 2. An organization is a system and is a part of the environmental supra system. 3. In this approach , the nature of interaction between the organization and the environment to determine its Organization effectiveness. 21. 4. In the systems theory, an organization remains effective as long as it uses its resources in an efficient manner and continues to contribute to the larger systems. ( B.P. Singh & T.N.Chopra, Organization Theory and Behaviour) 22. The organizations effectiveness is also dependent on optimizing the input process- output cycle in an efficient manner. It should be able to adjust with the external environmental systems and should contribute to the supra environmental system and thus be able to be progressive. Organizational effectiveness is a very vital system and all its elements should 23. Managers should have the skills to understand the nature of the environment and adapt to the social systems such as environment protection and fulfillment of social responsibilities. Organizations are effective when they are able to change the organization structure, and regroup the resources. Key Buzzwords - Incorporate changes in technology - Reorientation of organization policies - Flexibility and willingness to adapt to the 24. Criteria determine Organizational Effectiveness 1. Adaptability and ability to solve problems. 2. Ability and flexibility to react to change. 3. A sense of identity 4. Capacity to test reality accurately perceive and correctly interpret the properties of the environment. 5. State of integration among the sub- parts of the Organization to avoid cross-purpose working. 25. Limitations of Systems Theory Approach 1. Difference in Organizational Goals with operational goals. 2. Organizations survival depends on the ability of the manager to analyze, interpret, and cater for the environmental needs. 3. Creation of organizational systems to approach the environment with appropriate readiness to avoid conflict with operative and actual organizational objectives. 26. Strategic Constituency Approach The strategic constituencies that determine effectiveness are owners, managers, employees, customers, suppliers & The Govt. 27. The strategic approach integrates both the goal and systems approaches to effectiveness by viewing these approaches as special cases of multiple- constituency effectiveness. { Connollly T., Conlon E.J. and Deutsch S.J., Organizational Effectiveness: A Multiple Constituency Approach, Academy of Management Review} 28. Important Factors of Strategic Constituency Approach 1. Identify critical constituencies . Similar to systems approach in this method. 2. Prioritize the critical constituencies 3. Identify the expectations of various competing groups 4. Identify the environmental changes 5. Satisfying all the constituencies which are critical. Human element is very critical factor. 29. Behavioural Approach According to this, the extent to which individual and organizational goals are integrated affects the degree of organizational effectiveness. McGregor Douglas in his Book Leadership and Motivation :- True integration of goals , when all individuals share the organization goals. 30. Chapter 4:- Foundation of Organizational Development Salient points 1. Definitions 2. Features of Organizational Development 3. Objectives of Organizational Development 4. Organizational Development strategies for personal concern 5. Job Related interventions 31. Organizational Development strategies for personal concern Sensitivity Training Kurt Lewin(1945) introduced sensitivity Training as T-Groups or lab training. The method is used to train teams with the ultimate objective of organizational development. It envisages the formation of unstructured small groups. Group Interactions- learn- interpersonal dynamics 32. Target objectives 1.