Mgt 3

4) Reward systems

seek to align individual actions to organizational objectives, while

1. The Six-Box Organizational Model

(by Martin Weisbord) This is one of the earliest diagnostic models, proposed by Marvin Weisbord. He describes it as the result of his efforts to combine bits of data, theories, research, and hunches into a working tool that anyone can use. His model is based on six variables

Transformations -

the processes of converting inputs into outputs. A production or operations function composed of both social and technological components generally carries out transformations.

Task environment or industry structure

- consist of five forces: supplier power, buyer power, threats of substitutes, threat of entry, and rivalry among competitors

Environments

- everything beyond the boundaries of the system that can indirectly or directly affect performance and outcomes.

Human resource systems

- include mechanisms for selecting, developing, appraising, and rewarding

Ground Rules

- involves specifying how the client and the OD practitioner will work together; include such issues as confidentiality, if and how the OD practitioner will become involved in personal or interpersonal issues, how to terminate the relationship, and whether the practitioner is supposed to make expert recommendations to help the manager make decisions. For internal consultants, organizational politics make is especially important to clarify issues of how to handle sensitive information and how to deliver "bad news."

Diagnosis

- is the process of understanding how the organization is currently functioning (Cummings and Worley). It is a collaborative process between the organizational members and the OD consultant to collect pertinent information, analyze it and draw conclusions for action planning and intervention. Diagnosis exists whether or not explicit diagnostic models are used. The diagnostic models are used to examine organizations.

Performance norms

- members' beliefs about how the group should perform its task and include acceptable levels of performance. Norms derive from interaction among members and serve as guides to group behavior

Measurement systems

- methods gathering, assessing, and disseminating information the activities of groups and individuals in organizations.

Group functioning

- the underlying basis of group life. How members relate to each other is important in work groups because the quality of relationship can affect task performance.

Overall organization level Group or department level Individual position or job level

As open systems, organizations can be diagnosed at three levels:

Determining the Relevant Client .

Defining who the relevant client is for addressing the organizational issue. Generally, the relevant client includes those members who can directly impact the change issue, whether it is solving a particular problem or improving an already successful organization or department

6.) Leadership

Does someone keep the boxes in balance?

4.) Helpful mechanisms

Have we adequate coordination technologies?

2.) Structure

How do we divide up the work?

5.) Relationships

How do we manage conflict among people? With technologies?

The 7-S Framework

It is based on the propositions that (1) organizational effectiveness comes from the interaction of multiple factors and (2) successful change requires attention to the interconnectedness of the variables. They characterize the factors into seven categories:

Clarifying the Organizational Issue

Presenting problem - the typical starting point in seeking help from OD practitioners—it is presenting the issue that has caused them to consider an OD process. It may be: Specific (decreased market share, increased absenteeism) or general ("we're growing too fast," "we need to prepare for rapid changes). It may even be stated in the form of a solution. "We need so

by Jay Gailbraith

The Star Model

"strategic orientation."

The combination of design component elements is called a

"open systems model."

The general diagnostic model based on system theory that underlies most of the OD is called the

Selecting OD Practitioner

The last activity is selecting an OD practitioner who has the expertise and the experience to work with members on the organizational issue. Unfortunately, little systematic advice is available on how to choose a competent OD professional, whether from inside or outside of the organization. Organizations may request that proposals be submitted to lower the uncertainty of choosing from among external OD practitioners. The key elements of such written proposal include project goals, outlines of action plans, a list of roles and responsibilities, recommended interventions, and proposed fees and expenses.

1.) Purpose

What business are we in?

System theory -

a set of concepts and relationships describing the properties and behaviors of things called systems— organizations, groups, and people. Systems are viewed as unitary wholes composed of parts or subsystems; the system serves to integrate parts into a functioning unit.

3) Systems

are the various procedures in areas such as IT whereby an organization operates on a day-to-day

Feedback

about results involves the degree to which a job provides employees with direct and clear information about the effectiveness of task performance.

The general environment -

all external forces and elements that can influence an organization and affect its effectiveness. It can be the amount of uncertainty present in social, technological, economic, ecological and political/regulatory forces.

Equifinality -

an idea which suggests that similar results or outputs may be achieved with different initial conditions and in many different ways. This concept suggests that a manager can use varying degrees of inputs into the organization and can transform them in a variety of ways to obtain satisfactory outputs.

The Star Model

an organization is at its most effective when what he labels "the five major components of organization design: are in alignment. The five components in this model are: strategy, structure, processes and lateral capability, reward systems, and people practices (

Diagnostic models -

are conceptual frameworks that people use to understand organizations (Cummings and Worley). They describe the relationships among different features of the organization, its context, and its effectiveness. Point out what areas to examine and what questions to ask in assessing the firm's functioning Diagnostic models should be chosen carefully to address the organization's presenting problems

6) Skills

are described as the "crucial attributes"—the "dominating capabilities"—in areas such as customer

5) People practices

are the combined human resource practices (e.g., selection, development, performance

Outputs -

are the results of what is transformed by the system and sent to the environment. Inputs that have been transformed represent outputs ready to leave the system.

Technology -

concerned with the way an organization converts inputs into products and services. It includes production methods, work flow, and equipment.

. Productivity -

concerns internal measurements of efficiency such as sales per employee, waste, error rates, quality, or units produced per hour.

Composition -

concerns the membership of groups. Demographic variables: age, education, experience, and skills and abilities can affect how people behave and related to each other in groups

Inputs -

consist of human resources or other resources, such as information, energy, and materials, coming into the system.

Structural system -

describes how attention and resources are focused on task accomplishment.

3.) Rewards

do all tasks have incentives?

Mutual Expectations -

focuses on the expectation of the client and the OD practitioner States the services and outcome to be provided by the consultant; describes what the organization expects from the process and the consultant; and states what the OD practitioner expects to gain

1)Strategy

given a preeminent role—"the cornerstone"—on the grounds that "if the strategy is not clear...

Task structure -

how group the group's work is designed

Task significance

identifies the degree to which a job has a significant impact on other people's lives

Skill variety

identifies the degree to which a job requires a range of activities/abilities to perform the work.

Personal characteristics

include the individual's age, education, experience, and skills and abilities. All of these can affect job performance as well as how people react to job design, affect their needs and expectations

Autonomy

indicates the degree to which a job provides freedom and discretion in scheduling the work

Goal clarity -

involves how well the group understands its objectives. Should be moderately challenging, measurable, can be monitored, goal achievement can be fed back, and clearly understood by all members

Developing a Contract

is a natural extension of the entering process and clarifies how the OD process will proceed. It typically establish the expectations of the parties, the time and resources that will expended, and the ground rules under which the parties will operation. Informal (verbal agreement) or formal with formal document when outside OD practitioners is employed.

4) Style

is a reference to patterns in the actions of managers and others in the organization, that is, how they

2) Structure

is defined as the formal authority relationships and grouping of activities as represented on an

Feedback -

is information regarding the actual performance or the output results of the system. Only information used to control the future functioning of the system is considered feedback.

Organization culture -

it represents the basic assumptions, values, and norms shared by organization members.

Task identity

measures the degree to which a job requires the completion of a relatively whole, identifiable piece of work.

The Entering Process

process generally starts when a member of an organization contacts an OD practitioner about potential help in

Open system model -

recognizes that organizations exist in the context of a larger environment and that affects how the organization performs and in turn is affected by how the organization interacts with it

3) Processes and lateral capability

refer to the processes, either formal or informal, that coordinate activities

2) Strategy

refers to "the company's chosen route to competitive success"

Alignment -

refers to a characteristic of the relationship between two or more parts. It represents the extent to which the features, operations, and characteristics of one system support the effectiveness of another system. Overall effectiveness is partly determined by how the different subsystems are aligned with each other.

Organization performance -

refers to financial outputs such as profits, return on investment, and earnings per share. For nonprofit/government agencies: refers to the extent to which costs were lowered or

1) Structure

refers to the formal organizational design.

7) Superordinate goals

refers to the organization's "vision."

5) Staff

refers to the processes for development of the human resources of the organization.

Stakeholders' satisfaction -

reflect how well the organization has met the expectation of different groups. Customer satisfaction - market share; employee satisfaction - opinion survey; investor satisfaction - stock price.

Boundaries - .

the borders, or limits, of the system

Group design

the larger group or department containing the individual job.

Organization design -

the major input to group design Components characterizing the organization within which the group is embedded: technology, structure, measurement systems, and human resources systems, and

Presenting problem -

the typical starting point in seeking help from OD practitioners—it is presenting the issue that has caused them to consider an OD process.

Strategy -

the way an organization uses its resources (human, economic or technical) to achieve its goals and gain a competitive advantage.

Inputs, Transformations, and Outputs -

three related parts that compose an organizational system.

Time and Resources

to the effort is committed by both the organization and the OD practitioner. Each must be clear how much energy and how many resources will be dedicated to the change process. Resources can be 1) essential requirements—absolute necessary for successful change; 2) desirable requirements—those things that would be nice to have but are not absolutely necessary

The 7-S Framework

was developed by the McKinsey & Company consultants Robert Waterman, Jr. Tom Peters, and Julien Philipps.