INP4004

14. ORGANIZATIONAL DEVELOPMENT AND THEORY

ORGANIZATIONAL DEVELOPMENT, OD

Purposive & systematic change in organizational structure and/or

functioning

Change occurs constantly as organization adapts to internal &

external environment

Many changes not planned - reaction to inside & outside forces

Planned change: Program to alter targeted aspect

O.D.: System wide effort to apply social science principles to

improve organization social system.

Change agent: Usually outside person who introduces change

Specific techniques for change

Job redesign

Team development

Survey feedback

Management by objectives

T‑groups

MANAGERIAL GRID AS AN OD METHOD

Basic premise is that managers should have an equal concern with

people and production (9,9)

Six steps plus prephase to the change process

Prephase: Train managers to be trainers

1. All managers trained by trainer‑managers

2. Team building

3. Intergroup development

4. Develop a model for the ideal organization

5. Implement ideal model

6. Evaluate previous steps and work on barriers to

implementation

ORGANIZATIONAL THEORY

Theories explain structure and functioning of organization

Framework for describing organization

Prescriptive: How organization should function and be structured

Descriptive: How organizations function and are structured

CLASSICAL THEORIES

Focus on structure and function

Weber: Bureaucracy

Based on rationality in design of organization

Rationality as efficiency: maximum results with minimum resources

Four qualities

1. Division of labor to minute (low scope) tasks

Minimum skill, easy selection

Short training time

Easily achieved criterion

2. Delegation of authority

Responsibility for specific functions

3. Span of control: Optimal

4. Line vs. staff functions

MODERN THEORY

Focus on linkages and interpersonal relationships

McGregor Theory X/Theory Y

Relationship between belief system of supervisor and subordinate behavior

Theory X

Belief that employees are lazy and will avoid work unless

watched

Basic incompatibility of worker & organization

Extrinsic motivation approach

Control via rewards and punishments

Theory Y

Belief that employees seek challenge & responsibility

Worker & organization goals made compatible through

meaningful work

Intrinsic motivation approach

Control via challenge, responsibility & trust

SYSTEMS THEORY

Katz & Kahn

Organization as an open system

Characteristics of open systems

1. Importation of energy: Hire people

2. Through put: Transformation of energy (product creation)

3. Output: Produced goods and services

4. Cycles of events: Semesters; Raw material to finished product

5. Negative entropy: Tendency to run down

6. Information input: Marketing surveys

7. Homeostasis: Resistance to change

8. Specialization: Create different job positions

9. Differentiation: Movement toward specialization of function

10. Equifinality: System can evolve toward same end state from

different initial conditions

SOCIOTECHNICAL SYSTEMS THEORY

British coal miners and technological change

Trist

Joint optimization of social and technical systems

Exceptions: Handled at level encountered

DESIGN OF WORK SPACE

Burolandschaft: Landscaped offices

Use of cubicles instead of walls

Physical layout designed to facilitate communication

Design physical layout around communication needs

Work group members together

Resistance to change, noise, lack of privacy

Advantages

Cheaper construction

Disadvantages

Distractions

Lack of privacy

Most employees hate it

Noise