the organizational system theory.ppt

SYSTEMS AND CONTINGENCY APPROACH TO ORG THEORY & PRACTICE AND TECHNIQUES OF ORGANISATIONAL DIAGNOSIS*Facilitator and Course Coordinator:Vinayshil Gautam PhD, FRAS(London)(Founder Director IIM K; Leader Consulting Team IIM S)A Al_Sager Chair Professor and First Head,Management Department, IIT DChairman, DKIF

Theories and their importanceA theory is a set of assumptions or principles that have been repeatedly tested to explain or predict facts or phenomena Theories:Provide a conceptual frameworkProvide a common vocabularyGuides actionAssists comprehension or judgmentChallenge practice wisdom

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Systems TheoryLudwig Von Bertalanffy, has long been regarded as the Founder of Systems TheoryHe argued that all systems, whether organic or organisational, shared similar characteristics & could be analysed in similar terms

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Systems TheoryViews the organization as a system of interrelated parts that function in a holistic way to achieve a common purpose.*McGraw-Hill

Systems concept: EnvironmentOrganisations are open to their environments

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Systems Concepts: AdaptationTo survive the organisations must adapt to its environmentAll non-random functioning systems have: Inputs Processes Output Feedback loop with criteria An organisation that does not produce what is reqd by its environment must either change or disappear*

Systems Concepts: BoundariesBoundaries are the interface between a system and its subsystems or a system and its environment. By examining the boundaries of a system, we can often isolate the friction and its causes.*

Systems Concepts: Goal SeekingOrganisations & Organisational subsystems tend to be goal seeking, that is, they move in the direction of goal achievement. The primary goal of a system is survival.

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Systems Concepts: CyberneticsFor a system to work properly, it must have feedback and control mechanismsFeedback and control mechanismsAccept information about system outputsEvaluate information using goal related criteriaUse evaluative information as additional i/p*

Systems Concepts: DifferentiationOrganisations are complex systems

Different subsystems become specialised through catering for different aspects of organisation

Various depts of any business org e.g., prodn, marketing, finance etc, are all geared to a very different environment*

Systems Concepts: SynergySystems working well experience synergy where the total system output are greater than the sum of all inputs. For synergy to occur, subsystems must not optimize, but cooperate for the good of the overall system, e.g., Teamwork.Synergy is also called nonsummativity*

Contingency TheoryOr

It all depends on the situation*

Contingency TheoryStates that there is no one best way to manage an organization.

Because what works for one organization may not work for another

Situational characteristics (contingencies) differ

Managers need to understand the key contingencies that determine the most effective mgt practices in a given situation*

TechnologyLots of research since 1950 has taken place to identify the effects of technology upon organisationsResearch by Woodward & Tavistock Institute indicated that Technology influenced :*

*Degree of Job dissatisfactionBehaviour of Work groupsPattern of Industrial relationsStructure of Organisations

Technology & Degree Of Job DissatisfactionDifferent technologies have different effect upon nature of work & degree of job dissatisfactionBlauner distinguished between four different technologies :*

*Craft technology (printing)Machine-minding technology (textile)Mass prodn technologyProcess technology (chemical)

Levels of Alienation suffered by people due to different technologies*

Technology & Behaviour Of Work GroupsSayles suggested that technology determines not only the formation of work groups but also their behaviourFactors determining the formation of work groups : - Worker skill level reqd by technologyDegree of interactions between workers permitted by technology*

Technology & Industrial Relations*

Technology & Organisational StructureJ Woodward carried out one of the most influential studies to discover whether principles of organisations laid down by an expanding body of Mgt theory correlates with business success when put into practice*

Methodology :About hundred firms were taken as a sampleThey were divided into 3 general categories based on their method of production :- Simple units & small batch prodn methods- Large batch & mass prodn methods- Complex process prodn methodsAll these firms were placed along what she called continuum of technological complexity*

Main Findings :Firms with similar methods of prodn were organised in a similar wayFirms at either end of continuum had similar characteristicsThere was a relationship between technology, organisational structure & economic successThere was a relationship between technology and the pattern of industrial relations*

Socio-Technical Systems Socio-technical theory evolved from the field work of researchers from Tavistock Institute of Human RelationsPrinciple finding was that there are social implications for every implementation of changeMeasures suggested :- Set up a structure for intergroup communications to solve any problems groups might experience*

- Develop company code to govern relations between people at different levels Counseling of workers in groups to express feelings constructively

In Tavistock view, a healthy organisation is one which is capable of tackling in a realistic manner whatever technical, economic, or social problems it might encounter*

SOCIOTECHNICAL SYSTEMS* THEORY EVOLVED FROM THE FDWORK OF RESEARCHERS OF TAVISTOCK INSTITUTE OF HUMAN RELATIONS

DEVELOPING OF METHODS FOR SYSTEMATIC OBSERVATION OF HUMAN BEHAVIOUR IN ORGANISATIONS SO AS TO SOLVE SOCIAL PROBLEMS.

* PROBLEM ?

SERVICE DEPARTMENT - PIECEWISE PAY VIS A VIS FIXED PAY.

NO CONCERN FOR THE WORKERS INTEREST.

MANAGERS AND WORKERS SHOWED LACK OFTRUST FOR EACH OTHER.

RESEARCHERS SUGESSTIONS

MGMT WORKER INTERRELATIONSHIP.

MORALE BUILDING.

TAVISTOCK RESEARCH* THE BASIC PRINCIPLE WAS THERE ARE SOCIAL IMPLICATIONS FOREVERY IMPLEMENTATION OF CHANGE.

SETUP STRUCTURE FOR INTERGROUP COMMUNICATION TO DEAL WITH THE PROBLEMS

DEVELOPMENT OF A COMPANY CODE GOVERNING THE RELATION BETWEEN PEOPLE AT DIFFERENT LEVELS.

MANAGERS SHOULD BE MORE RESPONSIVE TO ORGANISATIONAL PROBLEMS.

BASIC PROBLEM IS MAINTAINING A STRUCTURE AND CULTURE TO COPE WITH CHALLENGES OF A CHANGING SOCIETY.

HEALTHY ORGANISATION - ONE WHICH IS CAPABLE OF TACKLING THE PROBLEMS IN A REALISTIC MANNER.

SOCIOTECNICAL SYSTEMS THEORY* ORGANISATIONS ARE OPEN SYSTEMS.

DEPEND ON THE ENVIRONMENT FOR RAW MATERIALS AS INPUTS AND FOR MARKETS TO ABSORB THEIR OUTPUTS OR PRODUCTS.

CONSIST OF SEVERAL SUBSYSTEMSTO DEFINE THE INTERNAL PROCESSES.

ORGANISATIONAL SYSTEM* . ENVIRONMENTAL SYSTEMGOALS &VALUES SUBSYSTEM

CULTURE PHILOSPHY OVERALL GOALS INDIVIDUAL GOALSPSYCHOSOCIAL SUBSYSTEM

HR ATTITUDES MOTIVATION GP DYNAMICS LEADERSHIP INFLUENCE SYSTEMSTECHNICAL SUBSYSTEM

TASK REQUIREMENT KNOWLEDGE TECHNIQUES LAYOUT OF FACILITIES MACHY EQUIPMENT INFORMATION STRUCTURAL SUBSYSTEM TASKS WORK FLOWS WORK GROUPS AUTHORITY INFORMATION FLOWS PROCEDURES & RULESMANAGERIAL SUBSYSTEM

GOAL SETTING PLANNING ASSEMBLING RESOURCE ORGANISING IMPLEMENTATION

TECHNICAL SUBSYSTEM* ORGANISATION REQUIRES STRUCTURING AND INTEGRATING HUMAN ACTIVITIES AROUND VARIOUS TECHNOLOGIES.

EVERY MODERN ORGANISATION IS INFUENCED BY THE RAPID ACCELERATION OF TECHNOLOGY IN OUR SOCIETY.

* AFFECTS THE TYPES OF INPUTS AND THE OUTPUTS FROM THE SUBSYSTEM AND THUS THE TASK ACCOMPLISHMENT.

WAYS IN WHICH THE ORGANISATION ADAPTS TO THE CHANGING TECHNOLOGY HAS A SIGNIFICANT IMPACT ON THE OTHER ORG SUBSYSTEMS.

TECHNICAL SUBSYSTEM* DEFINITION

MECHANISTIC VIEW - THE MECHANICAL MEANS FOR PRODUCTION OF GOODS AND SERVICES AND REPLACEMENT OF HUMAN EFFORT.

* TECHNOLOGY IS FAR MORE THAN THE MACHINE AND REFERS TO STANDARISED MEANS FOR ATTAINING A PREDETERMINED OBJECTIVE OR RESULT. THUS CONVERTS SPONTANEOUS AND UNREFLECTIVE BEHAVIOUR INTO BEHAVIOUR THAT IS DELIBERATE AND RATIONALISED AND RESULTS IN ABSOLUTE EFFICIENCY IN EVERY FIELD OF HUMAN ACTIVITY.

----JACQUES ELLUL.

TECHNICAL SUBSYSTEM* CAN BE PERCEIVED AS AN ENVIRONMENT WITHIN WHICH WE LIVE ,MADE UP OF EXTERNAL AND TANGIBLE THINGSWHICH MODIFY US FROM TIME TO TIME AND WHICH MODIFY US.

VIEWED INTERNALLY AS CONSISTING OF SKILLS OF BODY AND BRAIN AND ADM PROCEDURES AND OF MENTAL PROCESSES(CONSCIOUS AND UNCONSCIOUS), SOME ASSOCIATED WITH VALUE JUDGEMENTS WHICH RELATE MAN S OUTER WORLD TO HIS INNER ONE.

*DETERMINED BY THE

-TASK REQUIREMENTS OF AN ORG. -KNOWLEDGE AND SKILLS -MACHINERY AND EQPT INVOLVED. -TECHNIQUES. -LAYOUT OF FACILITIES. -INFORMATION

TECHNICAL SUBSYSTEM*ACCELERATING TECHNOLOGY

SCIENCE AND TECHNOLOGY PERVASIVE FORCES IN MODERN SOCIETY.

IMPACTED THE SOCIAL STRUCTURE AND CULTURE.

AUTOMATION - REPLACED HUMAN DECISION MAKING IN THE CONTROL PHASE.

EFFECTIVE UTILISATION OF TECHNOLOGIES REQUIRE THE DEVELOPMENT OF COMPLEX ORGANISATIONS.

*DANGERS OF TECHNOLOGY

WILL DRIVE OUT HUMANISTIC AND SOCIAL CONSIDERATIONS.

TOTAL INTEGRATION OF MAN INTO THE TECHNICAL SYSTEM(SOCIOCULTURAL STRUCTURE).

CHANGES IN VAUES AND GOALS.

CHALLENGE TO PROFIT FROM ITS OPPORTUNITIES ANDCONTAINING ITS DANGERS.

INTERACTION BETWEEN THE TECH AND PSYCHOSOCIAL SYSTEM IS A DETERMINANT OF THE RELATIONSHIP BETWEEN TECHNOLOGY AND SOCIETY.

TECHNICAL SUBSYSTEM*CLASSIFICATION OF TECHNICAL SYSTEMS

BASIS OF PRIMARY FN - SCHOOLS , HOSPITALS,UNIONS, ETC.

TECHNICAL SYSTEM BASIS.

INDUSTRIAL ORGANISATIONS SMALL BATCH MASS PRODUCTION AND CONTINUOUS PROCESS.

*CLASSIFICATION BY THOMPSON

LONG LINKED TECHNOLOGY INVOLVES SERIAL INTERDEPENDENCE BETWEEN VARIOUS PRODUCTION UNITS ,eg FULLY AUTOMATED ASSY LINE.

MEDIATING TECHNOLOGY - INVOLVES JOINING OF CLIENTS &CUSTOMERS ,OTHERWISE INDEPENDENT,eg BANKS, POST OFFICES.

INTENSIVE TECHNOLOGY DEAL WITH SPECIFIC PROBLEMS,eg R&D, HOSPITALS.

THE TWO PRIMARY DIMENSIONS HERE ARE COMPLEXITY AND DEGREE OF UNIFORMITY OR NONUNIFORMITY.

TECHNICAL SUBSYSTEM*

PROBLEMS

ADAPTING TO ONE TECHNOLOGICAL COMPONENT.

INTEGRATING AND COORD A NO OF DIFFERENT TECHNOLOGIES WITHIN THE ORG SYSTEM.

TECHNICAL SUBSYSTEM*IMPACT OF TECHNICAL SYSTEM

TRADITIONALLY , TECHNOLOGICAL COMPONENT WAS CONSIDERED AS A CLOSED SYSTEM DID NOT HAVE ANY DYNAMIC INTERACTION WITH OTHER SYSTEMS .

LEAD TO UNREALISTIC AND IDEALISTIC GENERALISATIONS..

ACTUALLY TECHNOLOGY AND OTHER SYSTEMS ARE INDEPENDENTLY RELATED.

* THREE BASIC WAYS IN WHICH TECHNOLOGY INFLUENCES BEHAVIOUR THROUGH ITS EFFECT ON OTHER INPUTS.

- HUMAN INPUTS REQUIRED BY AN ORG.

- GROSS FEATURES OF ORG STRUCTURE AND PROCEDURES.

- DETERMINANT OF INDIVIDUAL AND GROUP JOB DESIGNS/SOCIAL STRUCTURE AND NORMS.

TECHNICAL SUBSYSTEM*CLASSIFICATION OF TECHNICAL SYSTEMS

BASIS OF PRIMARY FN - SCHOOLS , OSPITALS,UNIONS, ETC.

TECHNICAL SYSTEM BASIS.

INDUSTRIAL ORGANISATIONS SMALL BATCH, MASS.PRODUCTION AND CONTINUOUS PROCESS

*CLASSIFICATION BY THOMPSON

LONG LINKED TECHNOLOGY INVOLVES SERIAL INTERDEPENDENCE BETWEEN VARIOUS PRODUCTION UNITS ,eg FULLY AUTOMATED ASSY LINE.

MEDIATING TECHNOLOGY - INVOLVES JOINING OF CLIENTS &CUSTOMERS ,OTHERWISE INDEPENDENT,eg BANKS, POST OFFICES.

INTENSIVE TECHNOLOGY DEAL WITH SPECIFIC PROBLEMS,eg R&D, HOSPITALS.

THE TWO PRIMARY DIMENSIONS HERE ARE COMPLEXITY AND DEGREE OF UNIFORMITY OR NONUNIFORMITY.

TECHNICAL SUBSYSTEM*IMPACT UPON STRUCTURE

RESEARCH BY JOAN WOODWARD.

DIRECT CORRELATION BETWEEN TECHNOLOGY AND ORG STRUCTURE .

ORG CHARACTERISTICS WHICH SHOW A DIRECT RELATIONSHIP WITH TECH ADVANCE ARE :-

* - LENGTH OF LINE OF COMMAND INCREASES IN VERTICAL LEVELS. - SPAN OF CONTROL - INCREASED FROM 4 10, BY MANAGEMENT AND COMMITTEE. - SALARIES AND WAGES. - MANAGER /PERS RATIO INCREASED. - STAFF-WORKER RATIO LARGER. - SUPERVISION LEVEL HIGHER.

SYSTEM OF PRODUCTION LEAD TO DIFFERENT STRUCTURE. OPERATIONS TECHNIQUES HAD LIMITED IMPACT ON THE COORDINATIVE SYSTEM. STRATEGIC LEVEL ENVIRONMENTAL INFLUENCES ON THE BROAD ADMINISTRATIVE STRUCTURE


IMPACT ON PSYCHOSOCIAL SYSTEM

TRADITIONALLY , ASSUMPTION WAS ADAPTATION, BUT IT AFFECTS THE

- NETWORK OF SOCIAL RELATIONS AMONG WORKERS. - SIZE AND COMPOSITION OF WORKGROUPS IN RANGE, CHARACTER, FREQUENCY OF CONTACT WITH FELLOW WORKERS AND SUPERVISORS..

* - LEAD TO JOB INSECURITIES.

- STATUS POSITION OF THE WORKER. - PHYSICAL AND SOCIAL MOBILITY.

- OUTMODED JOBS.

- SELF IMAGE AND MOTIVATION


IMPACT ON PSYCHOSOCIAL SYSTEM

INCREASED SPECIALISATION RESULTED IN GREATER PREDICTABILITY OF WORK BEHAVIOUR AND INCREASED DISCIPLINE IN THE WORKPLACE.

ASSY LINE AFFECTS THE SOCIAL ORGANISATION IN TERMS OF SIZE , FN AND INTERACTION OF WORKGROUPS, INTERPERSONAL RELATIONSHIP, RELATIONSHIP WITH THE SUPERVISORS, WAGE STRUCTURE AND PROMOTIONAL ASPECTS.

* ALIENATION AND DISSATISFACTION IN ASSY, LINE WORKERS AND MORE MOTIVATION INTEGRATION AND SATISFACTION IN CRAFT AND CONTINUOUS PROCESS.

EMOTIONAL STRESS , LACK OF GP IDEN WHICH LEAD TO LOSS OF PRODUCTIVITY.

TECHNICAL SUBSYSTEM*REMEDIAL MEASURES

INCREASED PRODUCTION.

PERSONAL SATISFACTION.

QUALITY AND EFFICIENCY.

MAINT HIGH LEVEL OF GROUP MORALE.

BETTER COORDINATION.

JOB ENRICHMENT.

LEAD TO INCREASED ORGANISATIONAL EFFECTIVENESS AND EFFICIENCY

TECHNICAL SUBSYSTEM*IMPACT ON MANAGERIAL SYSTEM

SPECIALISED SKILLS AND TRAINING

IMPACT ON STAFF AND FUNCTIONAL PERSONNEL, MIDDLE AND LOWER LEVEL MANAGERS.

* ROLE OFFIRST LINE MANAGER REQUIRED TO INTEGRATE ACTIVITIES ACROSS A BROADER SPECTRUM

SUPERVISORY REQUIREMENTS BOTH IN TERMS OF TECHNICAL AND HUMAN RELATIONS HAVE INCREASED.

TRADITIONAL SYSTEM PRIMARY CONSIDERATION WAS GIVEN TO THE DIFFERENTIATION OR SEGMENTATION OF ACTIVITIES INTO SUBSYSTEMS FOR TASK PERFORMANCE.


IMPACT ON MANAGERIAL SYSTEM

IN TRADITIONAL SYSTEMS PRIMARY CONSIDERATION WAS GIVEN TO DIFFERENTIATION OF ACTIVITIES INTO SUBSYSTEMS. IN COMPLEX ORGANISATIONS INCREASED DIFFERENTIATION RESULTED IN INTEGRATION PROBLEMS IN THE VARIOUS SUBSYSTEMS.

*BURNS AND STALKER

MECHANISTIC ADAPTED TO STABLE SYSTEM

- RIGID ORG STRUCTURE RESEMBLANCE TO BUREACRACY

- WELL DEFINED TASKS,AND THE METHODS , DUTIES AND POWERS OF EACH FUNCTIONAL ROLE WERE DETERMINED PRECISELY.

- COORDINATIONS &INTERACTIONS WERE VERTICAL COMMAND HIERARCHY.

TECHNICAL SUBSYSTEM*ORGANIC SYSTEMS

ADAPTED TO RAPIDLY CHANGING TECHNOLOGY AND ENVIRONMENT .

SUITABLE TO UNSTABLE CONDITIONS.

FLEXIBLE STRUCTURE.

CONTINUOUS ADJUSTMENT AND REDIFINING OF INDIVIDUAL TASKS THROUGH INTERACTION A NETWORK.

* LATERAL COMMUNICATION ,WIDE DISPERSAL OF POWER BASED ON TECHNICAL EXPERTISE AND KNOWLEDGE.

AUTHORITY AND SUPERIORNOWLEDGE DO NO NECESSARILY COINCIDE

THE PROBLEM - INSECURITY ON THE PART OF MANAGERS.

INNOVATIVE JUDGEMENTAL DECISION MAKING WHERE STRESS IS ON PROBLEM SOLVING. BUREACRATIC JUNGLE




TASK REQUIREMENT KNOWLEDGE TECHNIQUES LAYOUT OF FACILITIES MACHY EQUIPMENT INFORMATION STRUCTURAL SUBSYSTEM TASKS WORK FLOWS WORK GROUPS AUTHORITY &1`ORG CHARTS INFORMATION FLOWS PROCEDURES & RULESMANAGERIAL SUBSYSTEM


STRUCTURAL SUBSYSTEM*

ESTABLISHED PATTERN OF RELATIONSHIPS AMONG THE COMPONENTS OR PARTS OF AN ORGANISATION THAT ARE RELATIVELY STABLE AND THAT CHANGE SLOWLY .

INFERRED FROM THE ACTUAL OPERATIONS AND BEHAVIOUR OF THE ORGANISATION .

ARRANGEMENT OF ITS SUBSYSTEMS AND COMPONENTS IN THREE DIMENSIONAL SPACE AT A GIVEN MOMENT OF TIME.

*

STRUCTURE AND ITS FUNCTIONS ARE SEPARATE PHENOMENA BUT CANNOT BE LOOKED AT AS COMPLETELY SEPERATED.

INITIALLY SET FORTH BY THE DESIGN OF THE MAJOR COMPONENTS OR SUBSYSTEMS AND THEN BY THE EST OF PATTERNS OF RELATIONSHIP AMONG THESE SUBSYSTEMS.

INTERNAL DIFFERENTATION AND PATTERN OF RELATIONSHIPS WITH SOME DEGREE OF PERMANENCY REFERRED TO AS STRUCTURE.

STRUCTURAL SUBSYSTEM* FORMAL AND INFORMAL STRUCTURES.

FORMAL SLOW IN RESPONDING TO EXTERNAL CHANGES SUCH AS TECHNOLOGY CHANGES THUS INFORMAL RELATIONSHIPS DEVELOP

INFORMAL ADAPTIVE AND SERVE TO PERFORM INNOVATIVE FUNCTIONS.

* TRADITIONALLY CONCENTRARATION WAS ON THE FORMAL ORG STRUCTURE AND INFORMAL RALATIONS WERE OF CONCERN

BOTH ARE INTERMESHED .

DIFFICULT TO UNDERSTAND THE NATURE OF FORMAL ORG WITHOUT INVESTIGATING THE NETWORKS OF INFORMAL RELATIONS AND THE UNOFFICIAL NORMS AS WELL AS THE FORMAL HIERARCHY OF AUTHORITY AND THE OFFICIAL BODY OF RULES..

CLEAVAGE BETWEEN THE TWO IS ARTIFICIAL.

TWO BASIC MODELS - BUREACRATIC AND MATRIX.


IMPACT OF SOCIOCULTURAL ENVIRONMENT

RESEARCH BY STINCHCOMBE

STRUCTURE AT THE STRATEGIC LEVEL HAS A GREAT IMPACT OF THE FORCES IN THE TASK ENVIRONMENT.

MNCS STRONGLY INFLUENCED BY THE DIFFERING CULTURES IN WHICH IT OPERATES AND HAS TO ADAPT ITS GOALS STRUCTURE AND MANAGERIAL APPROACH TO THE DIFFERENT CULTURE.



RESEARCH BY CHANDLER

CHANGING POPULATION ,INCOME ,TECHNOLOGY, AND OTHER FORCES IN THE ENVIRONMENT LED TO EXPANSIO OF THESE FIRMS INTO NEW FIELDS.

STRATEGY OF DIVERSIFICATION AND EXPANSION LED TO MAJOR MODIFICATIONS IN STRUCTURE

*

LED TO ADOPTION OF A MULTIDIVISIONAL STRUCTURE.

- CENTRAL CORPORATE OFFICE PLANS AND COORDINATES THE ACTIVITIES OF A NUMBER OF OPERATING DIVISIONS AND ALLOCATES PERS ,FACILITIES ,FUNDS AND OTHER RESOURCES.

- OPERATIONS ARE DECENTRALISED TO THE OPERATING DIVISIONS WHICH HAVE A SUBSTANTIAL DEGREE OF AUTONOMY.



STRUCTURE OF CONGLOMERATES

- SMALL CORPORATE HQs.

- DO NOT EXERCISE STRICT CONTROLOR COORDINATE ACTIVITIES OF THE OPERATING UNITS

* SUBUNITS ARE SELF CONTAINED AND AUTONOMOUS

INTEGRATION ACHIEVED THROUGH CORPORATE DIVISIONAL INTERACTIONS WITH MINIMUM DIVISION TO DIVISION INTEGRATION.

THE BASIC STRATEGY IS TO INTEGRATE AT THE STRATEGIC LEVEL.

IMPACT OF TECHNOLOGY ,SIZE AND COMPLEXITY OF ORGANISATIONS.




TASK REQUIREMENT KNOWLEDGE TECHNIQUES LAYOUT OF FACILITIES MACHY EQUIPMENT INFORMATION STRUCTURAL SUBSYSTEM TASKS WORK FLOWS WORK GROUPS AUTHORITY &1`ORG CHARTS INFORMATION FLOWS PROCEDURES & RULESMANAGERIAL SUBSYSTEM


PSYCHOSOCIAL SUBSYSTEM*INDIVIDUAL AND THEIR RELATIONSHIPS ARE THE PRIMARY ELEMENTS OF THIS SUBSYSTEM.

PSYCHOSOCIAL SYSTEMS CAN BE UNDERSTOOD INTERMS OF MOTIVATION AND BAHAVIOUR OCCURRING IN AN ENVIRONMENT WHICH INCLUDES

*STATUS & ROLE SYSTEMS SERVE TO STRUCTURE SOCIAL RELATIONSHIPS AND PROVIDE A FRAMEWORK WHERE GP ENDEAVOR CAN BE COORD TOWARDS OBJECTIVESS. ROLE SYSTEMS ARE INTEGRALLY RELATED WITH STATUS SYSTEM.

STATUS CONCERNS THE RELATIVE PRESTIGE OF A POSITION IN A STRUCTURAL RELATIONSHIP WITHIN ORGANISATIONS.

ROLE RELATES TO THE BEHAVIORAL PATTERNS IDENT FOR A GIVEN POSN.

PSYCHOSOCIAL SUBSYSTEM*GROUP DYNAMICS

SMALL GPS PROVIDE A MEDIATING MECHANISM BETWEEN INDLS AND ORGS.ACTIVITIES, INTER ACTION AND SENTIMENTS PLAY AN IMP PART IN ORG BEHAVIOUR.INDLS HIGH LEVEL NEEDS (SOCIAL ESTEEM AND SELF ACTUALISATION) ARE SATISFIEDVIA HIS POSITION IN A SMALL GP OR A LARGE ORG. COMMUNICATION IS THE BASIS OF GROUP DYNAMICS.

PSYCHOSOCIAL SUBSYSTEM*

INFLUENCE SYSTEMS

INCLUDES VIRTUALLY ANY INTERPERSONAL TRANSACTION WHICH HAS PSYCHOLOGICAL OR BEHAVIORAL EFFECTS. EXERTED IN MANY DIRECTIONS - UP AND DOWN THE HIERARCHY AND LATERALLY IN PEER GROUP RELATIONSHIPS. CHANGES IN BEHAVIOR OF A PERS/GROUP DUE TO ANTICIPATION OF THE RESPONSE OF OTHERS RELATIONSHIPS AMONG PEOPLE.

WAYS TO INFLUENCE BEHAVIOUR - EMULATION ,SUGGESTION PERSUASION, COERCION.


LEADERSHIPABILITY TO PERSUADE TO SEEK DEFINED OBJECTIVES ENTHUSIASTICALLY .BINDS A GROUP TOGETHER AND MOTIVATES IT TOWARDS GOALS.

TAPPING OF LATENT HUMAN CAPABILITY IN ACHIEVING GROUP OBJECTIVES.

MGMT ACTIVITIES SUCH AS PLG ORG AND DM ARE DORMANT COCOONS UNTIL THE LEADER TRIGGER THE POWER OF MOTIVATION IN PEOPLE AND GUIDES THEM TOWARDS GOALS.


HR ATTITUDES.

NORMS, VALUES AND CULTURE OF THE ORG MAKE UP THIS SUB SYSTEM.INCLUDES SOCIAL RELATIONSHIPS AND COMMON NETWORK.

*HOW PEOPLE COMMUNICATE AND ACTUALLYDO THE WORK, STRONGLY INFLUENCES THE ORG THROUGH THE PSYCHOSOCIAL SUBSYSTEM.TAVISTOCK EXPERIMENTS PROBLEM WAS WORKERS HAD PROBLEM COMMUNICATING WITH MANAGEMENT.

WHEN A PERSON ENTERS OR LEAVES THE ORG THE PSYCHOSOCIAL SYSTEM CHANGES.

FACTORS AFFECTING HUMAN BEHAVIOUR*

PAST EXPERIENCEWORK SITUATION(TASK &TECHNOLOGY)CULTURE (NORMS )GROUP RELATIONDHIPSMANAGERIAL SYSTEM(PLG & CONT DECISIONS LEADERSHIP)REWARD SYSTEMECONOMIC,INCENTIVESCURRENT PERSONAL SITUATIONPERCEPTIONCOGNITIONMOTIVATIONPERSONAL VALUE SYSTEM(ATTITUDES ,PROPENSITIES TO ACT)

MANAGERIAL SUBSYSTEM*

MGMT PROCESS OF INTEGRATING HUMAN AND MATERIAL RESOURCES INTO A TOTAL SYSTEM FOR OBJECTIVE ACCOMPLISHMENT.LINKS OTHER PRIMARY SUBSYSTEMS OF ORGS.INTEGRATES ACTIVITIES TOWARDS ACHIEVEMENT OF EXPLICIT/IMPLICIT GOALS.

*PLG & CONT ARE THE PRIMARY ACTIVITIESINVOLVED IN INTEGRATING PURPOSEFUL ORG ACTIVITY.PLG & CONTROL HAVE TO CONSIDERTHE IMPACT OF EXTERNAL ENVIRONMENTAL SYSTEM AND THE INTERNAL TECHNICAL AND PSYCHOSOCIAL SYSTEM.

BEHAVIOUR IS GOAL ORIENTED AND HUMAN BEINGS MOVE TOWARDS GOALS BY CHOOSING AN ALTERNATIVE.BEHAVIOUR IS A RESULT OF SEQUENCE OF DM.

GOALS AND VALUE SUBSYSTEM*

BASIC VALUES WHICH UNDERLIE GOAL SETTING AND DM ARE A FUNDAMENTAL PART OF THE ORG SYSTEM.NORMATIVE VIEWS OF WHAT IS GOOD AND DESIRABLE.PROVIDE STANDARDS WHICH INFLUENCES CHOICE OF ACTIONS.

SOCIAL VALUES REFLECT A SYSTEM.

CULTURAL VALUES PROVIDE COHESIVENESS

*FIVE LEVELS.INDIVIDUAL VALUES.GROUP VALUES AFFECT INDL BEHAVIOUR AND ACTIONS OF ORG.

ORGANIZATIONAL VALUES. VALUES OF CONSTITUENTS CUSTOMERS, COMPETITORS OF ENVIRONMENT AND GOVT AGENCIES. CULTURAL VALUES VALUES OF THE TOTAL SOCIETY.

GOALS AND VALUE SUBSYSTEM*

THREE PRIMARY PERSPECTIVES. ENVIRONMENTAL LEVEL THE SOCIAL GOALSIMPOSED ON THE ORG.ORGANISATIONAL LEVEL SYSTEM GOALS. INDIVIDUAL LEVEL PARTICIPANTS GOALS.

* GOALS - INFLUENCE THE INTERACTIONS WITH ENVIRONMENTAL SUPRASYSTEM AND THE OTHER SYSTEMS.

FOCUS THE ATTENTION OF PARTICIPANTS UPON ACTIONS WHICH ARE ORGANIZATIONALLY RELEVANT.

HELP DETERMINE THE TECHNOLOGY REQD.SET BASIS FOR SPECIALISATION OF EFFORT, AUTHORITY PATTERNS , COMMUNICATION AND DECISION NETWORKS AND OTHER STRUCTURAL RELATIONSHIPS.

GOALS AND VALUE SUBSYSTEM*INFLUENCES ON GOALSPERSONALITY OF TOP EXECUTIVES.HISTORY OF THE ORG.

COMMUNITY ENVIRONMENT.NORMS ON VALUES WITH WHICH THE ORG DEALS.STRUCTURE. CULTURAL SAFETY

*RESPONDING TO ENVIRONMENT LEADS TO A CONTINUOUS NEED TO ELABORATE THE GOAL SET OF THE ORG AND IS INFLUENCED BY INTERACTION COMPETITION , BARGAINING, CO-OPTATION AND COALITION.SYSTEM GOALSSELF PERPETUATION , STABILITY OF OP, HIGHRATE OF RETURN, GROWTH , SATISFACTION OF PARTICIPANTS , TECH LEADERSHIP AND INNOVATION.

SUPRASUBSYSTEM*

EVERY ORG HAS IDENTIFIABLE BUT PERMEABLEBOUNDARIES WHICH SEPARATE THEM FROM THEIR ENVIRONMENT.THEY RECEIVE INPUTS ACROSS THESE BOUNDARIES, TRANSFORM THEM AND RETURN OUTPUTS. BOUNDARIES PROVIDE A DEGREE OF AUTONOMY AND INDEPENDENCE FOR ORG FROM EXTERNAL INFLUENCES. SELECTIVELY OPEN TO INPUTS, TRANSFORMATIONS AND OUTPUT

ACTS AS A FILTER..

*ORG DO NOT HAVE ANY PRECISE PHYSICAL BOUNDARIES.ACTIVITIES NECESSARY FOR ORG TRANSFORMATION PROCESS DEFINE ITS BDY RATHER THAN THE PHYSICAL STRUCTURES.

BASICALLY STANDARDISES THE INPUTS AND OUTPUTS TO THE VARIOUS OP SUBSYSTEMS I.E. STRATEGIC AND CO-COORDINATIVE SUB SYSTEMS BUFFER THE OP SUB SYSTEMS OF THE ORG FROM ENVIRONMENTAL INFLUENCES.HETEROGENEOUS AND DYNAMIC ENVIRONMENTS LEAD TO COMPLEX AND DIFFERENTIATED THE THE INTERNAL STRUCTURING OF THE ORG .

AUTONOMOUS WORKGROUPS*

SOCIO TECH THEORY.WORKERS ARE LIKELY TO BE PRODUCTIVE AND SATISFIED WHEN THEIR SOCIAL NEEDS ARE MET.TAVISTOCK RESEARCHES CONCEPT OF AUTONOMOUS WORK GROUPS.WORKERS WORK AS A TEAM TO COMPLETE AN ENTIRE TASK VIS A VIS WORKERS PERFORMING A PARTICULAR CHORE ALONG AN ASSY LIVE.

*TWO APPROACHES.TEAM BUILDINGMATRIX ORG COMPROMISE BETWEEN STAFF AND COMPLETE

AUTHORITY.- VERTICAL FLOW OF AUTHORITY FROM VARIOUS FM MANAGERS. - HORIZONTAL FLOW OF PROJECT AUTH.

AUTONOMOUS WORKGROUPS*

CHANGES IN EACH SYSTEM AFFECTS THE OTHER SYSTEMS FOR eg THE PROBLEM OF RETAINING WORKERS.

MGMT SUBSYSTEM MGMT OF WORKERS.

TECHNICAL SUB SYSTEM - AVAILABILITYOF TOOLS AND RESOURCES.PSYCHO SOCIAL SUB SYSTEM --- INTER PERSONNEL RELATIONSHIPS.

UNCERTAINITY*

BURNS AND STALKER SUGGESTED TWO FACTORS DETERMINANT OF ORG STRUCTURE AND PERFORMANCE - RATE OF CHANGE AND THE LEVEL OF UNCERTAINITY IN THE ENVIRONMENT.TWO TYPES OF SYSTEMS RECOMMENDED.

*LAWRENCE AND LORSCH

SPECIALISED SYSTEM DEVELOP IN RESPONSE TODIFFERENT ASPECTS OF THE ORGANISATION ENVIRONMENT.

PRODUCTION DEPATRMENTS WHICH HAD STABLE ENVIRONMENTAL CONDITIONS TEND TO BE MORE BUREACRATIC THAN RESEARCH DEPARTMENT.

HIGH LEVEL OF DIFFERENTIATION REQUIRED BY THE ENVIRONMENT LED TO THE PROBLEM OF INTEGRATING THE DEPARTMENT.

THIS PROBLEM SOLVED BY SOME FIRMS EMPLOYING A GROUP OF MANAGERS TO COORDINATE THE DIFFERENT DEPARTMENTS.

AFFECT OF SIZE

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RELATIONSHIP BETWEEN SIZE AND LEVEL OF BUREACRATISATIONORG SIZE AND JOB SATISFACTION STUDY BY REVANS AND PORTER--- LARGER THE ORG LOWER THE JOB SATISFACTION LEVEL ,HIGH LEVEL OF ABSENTEEISM AND LABOUR TURNOVER.

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ORG SIZE AND UNIONISATION BAIN SUGGESTS A STRONG POSITIVE CORRELATION BETWEEN ORG SIZE AND WHITE COLLAR UNIONISATION.

ORG SIZE AND STRIKE PRONENESS

RESEARCH BY DOE AND PRAIS SUGGEST LARGER THE FACTORY GREATER THE

FREQUENCY OF STRIKES.

Contingency Theory as a Model of Change Systems thinking approach adopted by Lawrence and Lorsch Studied the characteristics of organizations and their environment. Believed that determining the best structure and leadership for an organization is contingent on the relation of the organization to its environment.

The systems that constitute the organizations are affected by boundaries and by a process called differentiation & integration.*

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Boundaries: The boundary between an open system and its environment is permeable; similar to cells in human body. Sales people going out in the market to sell. Resource mobilization like physical goods and human resource from environment. The problems in an organization first becomes visible at the boundaries. Drop in sales and complaints from customer a sign of organizations unresponsiveness towards customers needs Organizations must be attuned and responsive to environmental changes that occur at the boundary.

Contingency Theory as a Model of Change ..Contd..Integration:

Specialized groups / units for tasks

Independent style of interaction with the organization

Different impact of their behavior on organization

Need for coordination between units to achieve organizations overall goals

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* The effective coordination between units is called Integration Need for appropriate structure such as bureaucratic or matrix Need for appropriate leadership

Differentiation:The organizational units vary on following four dimensions: Formality of structure Goal Orientation Time Orientation Interpersonal Orientation

Formal and Informal Systems

Deals with: The formal policies and procedures of the organization. The informal ways in which organizational members work together.

Two theories have been put forward by: Marvin Weisbords The Six box model Formal Systems The organizational fit Formal and Informal Interactions Nadler & Tushmans Congruence Model - Formal and Informal Interactions*

The 6 Box ModelPurposes:What business are we in?Agreement on goals in missionsRelationships:How do we manage conflict among people with technologies? How do workers get alongStructure:How do we assign the work and how it gets done?Helpful mechanisms:Have we adequate coordinating technologies? Like budgeting, planning & control, and management informationRewards:Do all needed tasks have incentives?Leadership:Does some one keep the boxes in balance?*

Organizational Fit

How the organization fits within its environment Compatibility with customers, government, union

How the individual fits with in the organization Compatibility of individuals personal values, political orientation, hobbies, style of dress with other organizational members*

The Congruence Model

Organization draws inputs from environment in the following form Capital, raw material, technology and people Organization history Pattern of employee behavior Organizational policies and procedures Managements method for decision making The model takes into account the inputs and resulting output after transformation*

* The transformation process includes four components: Task job and their inherent characteristics Informal organizational structure social structure among organizational members including informal communication, politics and authority structure Individual personal characteristics of employee such as age, sex, education Formal organizational arrangements documented managerial and operational structure, the pay system, the management information system Outputs are the outcomes for the organization, the work group and the individual.

A Change Based Organizational Framework

According to Porras and Robertson model, the factors in the internal organizational environment that shape and guide the behavior of workers fit into four categories: Organizing arrangements the formal elements that coordinate the behavior of people and groups in an organization Goals & Strategies Structure & administrative policies and procedures Administrative system & reward system Ownership*

* Social factors characteristics of the people in the organization and their relations The culture, management style, interaction process, informal patterns & networks and individual attributes Physical settings The building and locations Technology Equipments, IT, job design, work flow design, technical expertise & procedures and technical systems

Thank You*

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