Section 4 — Organization

Quite a big chapter, but I feel like the crux of it revolves around organizational structures and development

Different Types of Organizational Structures

Organizational structures define the hierarchy in an organization, and determine the way information flows within it.

Functional: Traditional structure, includes divisions based upon specialty. Forms the well-known hierarchy of senior management, marketing, finance, human resources, and operations.

• Centralized Structure
• Specialist staff, standardization, greater economies of scale.
• Lacks variety and job enrichment, greater bureaucracy
• Each specialist group answers to top management. Since each team works in silos, management is expected to guide all departments into one unit.

Divisional: This structure groups individuals based on the products or projects they are undertaking. At the top is the CEO, and after them is a hybrid of functional grouping: public relations, legal, finance, global research, business development, and human resources

• Decentralized Structure
• Senior management time freed up, motivation through greater decision powers
• Lack of specialization, extra processing
• This style blends the expertise of many different skill sets.

Matrix: Combination of the functional and divisional structures. Companies are divided into departments of specialization, and then within those units, they are separated further

Organizational Development:

This is the process used to enhance the effectiveness of an organization and the well-being of its members through planned interventions

• OD initiatives occur on both a large and small scale
• Goals are to improve:
• Productivity (effectiveness and efficiency)
• Employee satisfaction with the quality of their work life
• The organization’s ability to revitalize and develop itself over time.
• Organizational processes and outputs

Organizational Development “Change Management” Initiatives

• Focus on changing the entire system
• Link to the organization’s strategic plan
• Use applied behavioral science
• Help organizations solve their own problems
• Important: The whole system must change, not just a few components of the system

OD Interventions:

OD interventions are appropriate when an organization:

• Experiences a merger or acquisition that introduces a culture that is not compatible.
• Experiences low trust, high turnover, or high stress
• Lacks the ability to manage conflict.

OD Intervention process:

• Diagnose the environment
• Develop an action plan
• Evaluate the results
• HR Roles: Change agent, evaluator

Sensitivity Training is a form of training with the goal of making people more aware of their own goals as well as their prejudices, and more sensitive to others and to the dynamics of group interaction.

• Has been criticized for the emotional stress it creates for some participants.

Quality management requires employees to rethink what they do and become more involved in workplace decisions.

Organizational citizenship is discretionary behavior that is not part of an employee’s formal job requirements, but that promotes the effective functioning of the organization.

The Delphi Method:

The Delphi Method is a qualitative forecasting method. It is a structured way of getting a group to examine an issue. Example below:

1. Group of 4 people tasked with forecasting next quarter sales, each asked to come up with own reasoning in a report
2. Moderator collects the 4 reports, removes the names and gives them back to the group to discuss.
3. Now the group has 4 “anonymous” viewpoints they can consider. This eliminates any personal bias they might have towards other members, and focuses on the reports themselves.
4. Steps 1–3 are repeated until the group can come to a consensus.