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Organization design and development

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  • ORGANISATION DESIGNANDDEVELOPMENT- Sharifa AL-toubi- Hewa Mhealdeen- Annisa Gunawan- Yihe Zhao- Jannat Rehana- Shilpa Erappa- Tabish Mujahid- Madhusudan Paul- Maddi Baba - Qianqian Chang- Ronghua Chang

  • CONTENTIntroduction (Definition of Organisation Design & Development)

    History of Organisation Design and Development

    Key Elements of Organizational Design and Development

    Organisation Design and Development theories

    Organisation Example

    SWOT

    SMART

    References

  • INTRODUCTION

    Organisation Design definition:

    Huczynski and Buchanan (2007) defines organisation design as organisations are a social arrangement for achieving controlled performance in pursuit of collective goals. So we have a group of individuals working together to achieve a particular goal, and the engagement of the individuals is not indiscriminate but coordinated in a controlled manner. The engagement then has structure, it has design. McNamara (2012)Organizational designis a step-by-step methodology which identifies dysfunctional aspects of work flow, procedures, structures and systems, realigns them to fit current business realities/goals and then develops plans to implement the new changes. The process focuses on improving both the technical and people side of the business.

  • Organisation development definition:

    A system-wide process of data collection, diagnosis, action planning, intervention, and evaluation aimedat enhancing congruence among organisational structure, process, strategy, people and culture,developing new and creative organisational solutions and developing the organisations self-renewingcapacity. It occurs through the collaboration of organisational members working with a change agentusing behavioural science theory, research and technology. (Michael Beer)

    An organisation cannot exist without interacting with customers, suppliers, competitors, andother elements of the external environment.(Daft, 2007)

  • HISTORY OF ORGANISATION DESIGN AND DEVELOPMENTIn the first half of the 20th century, a variety of competing approaches to designing complex organisations evolved including:

    Bureaucracies Weber (1864)Taylor (1911) Scientific Management Mayo (1945) Human Relations Approach Trist & Bamforth (1951) Socio-Technological Systems

    These basic approaches have continued to develop into a variety of different organisation structures including: Functional, Divisional, Matrix and Virtual.

  • KEY ELEMENTS OF ORGANISATIONAL DESIGN

    Work SpecializationDepartmentalizationChain of commandSpan of ControlCentralization and Decentralization

  • KEY ELEMENTS OF ORGANISATION DEVELOPMENT

    Applies to the whole systemDraws upon applied social sciencePlanned, unplanned and responsive changeInvolves both the creation and the subsequent reinforcement of change. Encompasses strategy, values, resources, structure, and the process of changeEmphasizes the development of the organization's people and the quality of their relationships.

  • ORGANISATIONS DESIGN THEORYThere are several perspective about managementthinking in organisations design:

    Structure: FayolCulture: Handy & MckinseyOrganisations

  • CLASSIC MANGEMENT THEORY AND STRUCTURE, HENRI FAYOL1. Division of work , efficiency.2. Authority and responsibility, mangers.3. Discipline, using in different ways.4. Unity of command ,direct supervisor.5. Unity of direction , mangers.6. Subordination of individual interests to the general interest. 7. Remuneration of personnel, equal pay.8. Centralization, decision making.9. Scalar chain (line of authority), hierarchy structure.10. Order, workplace condition.11. Equity.12. Stability of tenure of personnel, reduce employees turnover.13. Initiative, freedom.14. Enhance team and unity.

  • Static organisation design modelsMckinesys 7-s developed (waterman et al, 1980)

  • Dynamic models of organisation designWeisbords (1976) & burke and Litwins (1992)

  • ORGANISATION EXAMPLE THE REORGANISATION/MERGER OF THE COLLEGES OF TECHNOLOGY IN THE SULTANATE OF OMAN TO CREATE A NEW UNIVERSITY.

    Controlled by Ministry of Man Power.Change in structure, system and process.Organisation design

  • ORGANISATION DEVELOPMENT SYSTEM THINKING THEORY (ORG. EXAMPLE)

    Hard HRM (COLLEGE)Soft HRM (UNIVERSITY)Treats employees simple resource.Treats employees as the most important resource.Focused on HRM of workforce needs and business needs.Focused HRM of employees needs.Short term planning.Long term planning.Minimal communicationStrong and regular communication Pay enough to recruitment and staff. Competitive structure pay.Little empowerment delegation.More empowerment.Appraisal focused on judgement.Appraisal focused on training.Taller organisational structure. Flatter organisational structure. Autocratic leaderships.Democratic leaderships.

  • SWOT ANALYSIS

    Strengths:

    Good reputationGood partnership with other companies (e.g. PDO and Shell)Location

    Weaknesses:

    Lack of student support.High and unequal workload within staffs.Limited of resources for faculty and staff development

    Opportunities:

    Opportunity for collaboration on strategic plan formulation. Growth potentialatrac international students.Threats:

    Development of another university.Reporting perceived as a ritual and meaningless

  • SMARTSpecific:Build up the trust between the management and the academic staffImproving the communication flow between staff and managementImproving working practices and conditions

    Measurable:If budgets are controlled within the new University then the processes should become more transparent and more trusted by employees.

    Achievable:An agreement between administrative and academic staff about the difference between their roles and responsibilities.The shorter chains of command and communication should make decision making quicker.employees will be higher education professionals and are more likely to share similar ideas about organisational goals and the ways in which these should be achieved.

    Relevant:Improve the work efficiency of the academic staff.Less pluralist and more unitary because most employees will be higher educational professionals and are more likely to share similar ideas about organisational goals and the ways in which these should be achieved

    Time:Getting employees involved in the planning and design of the new organisational structures and work processesAllow management to use the expertise and experience of the employees who know how to do their jobs better than their managers do.

  • REFERENCEBeer, M. (1980). Organization change and development: a system view. Santa Monica, CA : Good yearBurke, W, weisbords , litwins (1982) Organization development : Principles and practices. Boston, MA: Little Brown

    Connor, G., McFadden, M., & McLean Ian. (2012). Organisational Design. CIPD. [online]. Available from [2012]

    DAFT, R. (2007) Understanding the Theory and Design of Organisations. Mason, OH: Thomson South Western.

    HUCZYNSKI, A. and BUCHANAN, D. (2007) Organisational Behaviour. 6thedn. Harlow: Prentice Hall.

    MCNAMARA, C. (2012). Basic definition of organisation Available from [2012].

    Oasis. (n.d). Organisational development: The oasis approach: A human relations perspective for the 21st century. [online] Available from [n.d]

  • REFERENCETaylor, F. W. (1911). The principles of scientific management. New York: Norton.

    Thomas, K. W. & Kilmann, R. H. (1974, 2007). Thomas- Kilmann Conflict Mode Instrument. Mountain View, CA: CPP, Inc.

    Qualcomm. (n.d). Key elements of organisational design. [online]. Available from < http://www.emaytrix.com/mgmt307/section2.php> [n.d]

    Trist, E. & Bamforth, W. (1951). Some Social and Psychological Consequences of the Long Wall Method of Coal-Getting, n: Human Relations,

    Waterman, R. Jr., Peters, T. and Phillips, J.R. (1980) "Structure Is Not Organisation" in Business Horizons, Vol. 23(3), pp.1426.

    Weber, Max, (1864-1920), Theory of social and economic organization, New York, Oxford University Press, 1947