I/O Psychology Chapter 14: Organizational Theory and Development

Organizational Transformation

- Any intervention primarily directed toward creating a new vision for an organization, changing its beliefs, purpose, and mission *usually results from a serious "jolt" to the organization *culture change is at forefront

Holacracy: Managing work without Managers

- Authority and decision-making responsibilities are distributed throughout self-organized teams ( as opposed ti a manager taking responsibility for decisions) -Employees' places in the company are defined by roles in which goals are described -Roles are organized into circles with each circle having a clearly defined purpose, structured decision-making and governance processes

Positive Organizational Development

- Based on positive psychology movement; focuses on strengths and virtues of individuals rather than on weaknesses and impairments - Appreciative inquiry (AI) *Foci: Positive messages; past and present strengths *Staes: Discovery, dream, design, destiny * Fixing strengths: not fixing problems

Model of Organizational Change Three Basic elements of the process

- Change agent (interventionist) -Recipient of change effort (client) -Intervention

Team Building interventions focus

- Clarifying role expectations and responsibilities -improving subordinate--supervisor relations -Improving team problem solving, decision making, planning -Reducing team member conflict -Developing a vision, mission, or se of goals -Building team cohesion and unity

What are the major organizational approaches

- Classical organizational theory - Humanistic theory - Open-system theory

Theory Y

- Emphasizes inherent goodness, capacity, and potential of employees, along with their readiness to develop -Management's responsibility for providing employees with opportunities to develop

Technostructural Interventions

- Focus on the technology and structure of the organization -functional organizational design -product-based organizational design -Matrix structure -reengineering

Total Quality Management (TQM)

- Focuses on employee involvement join the control of quality in organizations (Deming and Juran)

Reengineering (Business Process Redesign)

- Fundamental rethinking and redesign of business processes to improve critical performance as measured by cost, quality, service, and speed Elements: -fundamental -Radical -Dramatic -Process

Gainsharing

- Involves paying employees a bonus based on improvements in productivity *revolves around justice, participation, and fairness

Theory X and Theory Y

- Managers' beliefs and assumptions about their employees determine how they behave toward their employees -Self-fulfilling prophecy: employees learn to act and believe in ways consistent with their managers

Team building and the popular form of organizational development intervention

- Meta-analysis results indicate stronger impact on team performance when: -initiated to correct existing problems -combined with other organizational development interventions -supported by members of the organization - performance is measured at the group level

knowledge management:

- Method where organizations enhance operations through attempts to generate transform, disseminate, and use knowledge

suggestions for handling Fast-Paced Change (Hitt)

- New forms of thinking that are global and allow for strategic flexibility and new organizational structures - Highly developed human capital -Continuous learning and k knowledge dissemination throughout organization

Determinants of successful culture change (Cummings and Worley, 2005)

- Organization and change agent must develop a clear vision -Top management support must be present -Senior Executives must live by change efforts -Supportive systems must be involved, resources provided -selection must include hiring employees for new culture

Classical Organizational Theory

- Organizations should work like machines, with people and technology as their components

Organizational Development (OD)

- Planned, organization-wide effort to increase organizational effectiveness through behavioral science knowledge and technology Varying views: -traditional view: promotion of positive humanistic changes in organization - Less traditional: Broadening of traditional

Throughputs

- Production process -serice processes -training processes

Humanistic Theory

- Resulted from rigidity of classical organizational theory (mid 1900s) - Considers employees' motives, goals, as aspirations - Explains organizational success in terms of employee motivation and interpersonal relationships -Example: mcGregor's Theory X and Theory Y

What are two important developments in classical organizational theory

- Scientific management (Frederick Taylor): Organization as a machine, run as effectively as possible -Bureaucracy (Max Weber): Efficiency based on structure, organization, operations

Theory X and Theory Y by McGregor

- Suggested a different approach was needed for organizations to develop

Popular Organizational Development Interventions

- Survey feedback -Team building -Total quality management (TQM) -Gainsharing -Technostructural interventions -Positive organizational development -organizational transformation

Team Building

- Technique to develop teams or enhance effectiveness of existing teams

Classical Organizational Theory

- The first organizational theory to develop in the 1700s

problems with bureaucracy

- Today some theorist argue that bureaucratic structures are ineffective in rapidly changing environments - Low productivity may result from simplified, unchallenging work and dissatisfied and unmotivated workers

Theory X

- Traditional view of employees as lazy, selfish, not very intelligent; management's job was to control/direct employees for profit (birth of industry to mid-2900s)

Three steps to Lewin's Change Model

- Unfreezing -Moving -Refreezing

places where Total Quality Management (TQM) are used

- Widely recognized and used -U.S government : Malcolm Baldridge National Quality Award -American Society Quality -Association for quality and Participation

Scientific management (Taylorism)

- conduct studies/gather data indicating most efficient method to get things done, then implement method - useful in structuring organizations

What are the major features of a bureaucratic organization

- division of labor -top-down pyramidal structure -Delegation of authority (micro-managers) -Span of control Additional issues: -standardization of tasks -centralized decision making

Effective interventions criteria for organizational development

- fit the need of the organization - are based on causal knowledge of intended outcomes - Transfer change management competence to organizational members

Research on Total Quality Management

- individual differences in TQM participants -Level of rigor of research projects initially criticized; improvement in more recent studies

important characteristics of organizational development programs

- involves the total organization -supported (and initiated) b y top management -contains diagnosis and implementation plan -involves long-term porcesses -focuses on changing attitudes, behaviors, and performance of groups/teams -Emphasizes importance of goals, objectives, and planning

Bureaucracy (Max Weber)

- late 1800s to 1900s

Self-fulfilling theory X cycle

- management assumes the worst of employees -Management treats employees with rigid control and without respect - Employees respond negatively to shoddy treatment -Employees become what management assumed they were and act in accordance with those originally inaccurate assumptions

scientific management four principles

- management gathers data from workers who are in the best position to understand job - Workers are selected "scientifically" and trained to be more efficient than ever before -scientific selection, data collection, and training are combined to enhance efficiency -Redistribution of work: management takes over task previously left workers

characteristic of open systems

- negative entropy -information input and negative feedback -Equifinality

Learning organizations characteristics

- organizational structure facilitates learning -sophisticated information system to manage knowledge -HR system promotes/rewards continuous learning and knowledge management -Strong culture fosters openness and creativity -supportive leaders are active in learning and knowledge management

Classical Organizational Theory: 4 basic tenets

- organizations exist for economic reasons and to accomplish productivity goals - Scientific analysis will identify the one best way to organize for production - Specialization and the division of labor. maximize production -Both people and organizations act in accordance with rational economic prinicples

Action research model steps

- problem, perception and identification -consultation with on OD expert - Data gathering and diagnosis -feedback to organizational client -joint diagnosis of problem -planning and action steps -action

inputs

- raw materials -Human Resources energy - Machienry

Common components of Gainsharing

- suggestion system -department teams -review board -Bonus pool of dollars distributed among employees

Stages of total quality management (TQM)

- support of top management -training on quality methods -Active stage-- actual implementation of TQM -Self comparison analysis -Rewards linked to achievement of TQM interventions goal

What is Scientific management school

- time and management studies - sometimes called Taylorism

Lewin's Change Model

-Change as a matter of modifying those forces acting to keep things stable

Open- System theory

-Katz and Kahn (1978): organizations develop and change over time as a result of both internal and external forces - Inputs, throughputs, outputs

Model of Change: Action research model

-Lewin's second model of organizational change major characteristic: Cyclical nature Initial research about organization is foundation, which in turn provides information that can be used to guide further action (cyclical process) -research informs practice - Examples: Danish Lego Company act6ion research: Sense-making

Outdoor experiential training (OET)

-Positive effect on self-efficacy, leadership, motivation, and emotional intelligence

Survey feedback

-systematic collection of data via organizational surveys

Process of survey feedback

-top management supports, actively participates in survey process -Anonymous survey administered to organizational members -survey results compiled by department, plant, etc. -consultant provides feedback to members -Managers, task forces, to other employees meet with consultant to identify potential changes for implementation

Why do organizations need organizational development

-usually due to changes in an organization's operating environment -changes can be social, technical, economic, or political in nature -Hitt (2000) argues that competitive landscape of future will be characterized by technological revolution and globalization

Organizational Theory

Set of propositions that explains or predicts how groups and individuals behave in varying organizational structures and circumstances

Shovel study an example of Taylorism

peaked at 21.5

outputs

products services knowledge