19 Apr Instructions:? Goal: Read and review the Main assignment?attached. Due Sunday by 9:00pm? Please use the Key Concepts in the attached documents. A
Instructions:
Goal: Read and review the Main assignment attached.
Due Sunday by 9:00pm
Please use the Key Concepts in the attached documents. Also the attached Power Points will help with other key information.
Submission Instructions:
- current APA style, (10-12 pages) in length, including the title and reference page.
- Complete and submit the assignment by 9:00 PM ET Sunday.
Organization Design: Creating Strategic and Agile Organizations
Donald L. Anderson
Chapter 2
Key Concepts and the Organization Design Process
Key Concepts of Organizational Design
The STAR Model of Organization Design:
Strategy
Structure
Processes and Lateral Capability
Rewards
People
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Anderson, Organization Design
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LO 2-1: Key concepts of organization design
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The STAR Model of Organization Design
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Strategy
Organization’s direction and long-term vision
Startnigpoint for the design
“Company’s formula for winning”
Products and services to create
Markets and customers to pursue
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Structure
Distribution of resources, power, and authority
Role definition
Responsibilities
Relationships among departments
Span of control
Centralization vs. decentralization
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Processes and Lateral Capability
Flow of information
Decision-making processes
Cross-functional collaboration mechanisms
Shared processes and goals
Networks and teams
Integrative Roles
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Rewards
Motivation and incentives
Compensation
Recognition
Promotions
Goals and measurement systems
Scorecards
Dashboards
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People
Human resource practices
Hiring
Managing
Learning and development
Rotations
Succession Plans
Identifying Core Competencies
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Alignment, Congruence, and Fit
Alignment:
All components of the STAR must be in alignment
Each point is connected to four other points
Organization may suffer otherwise
Congruence & Fit:
The more congruence, the more effective the organization
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Three important factors in fit:
Competitive strategy
Organization’s size
Task uncertainty
Principles of congruence
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Alignment, Congruence, and Fit
Snow, Miles, and Miles (2006, pp. 6-7) summarize these central principles of congruence:
The broad framework is that of strategy-structure-environment fit or congruence
The organization is conceptualized as a system or configuration whose major components include strategy, people, structure, and management processes.
Overall organizational performance is heavily dependent on the quality of the internal alignment of the organizations components as well as the external fit between the organization and its environment.
The process of achieving fit is dynamic, and both the organization’s internal and external alignment must be continually monitored and adjusted.
All of the basic organizational configurations, from the older hierarchical forms to the modern multi-firm network organization, have particular strengths and limitations; there is no all-purpose organization design.
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Contingency Theory and Complementarity
Contingency theory suggests that design choices are contingent on the strategy and the environment:
There is no one best way to organize
Not all the ways to organize are equally effective
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Tradeoffs and Competing Choices
Design decisions are trade offs
No “one size fits all”
All design choices have advantages and disadvantages
Unintended negative consequences may arise
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Reasons to Begin a Design Project
Performance is suffering because of misalignment
Strategy changes
Shift in environment or external context
Internal changes to structures, functions, or jobs
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LO 2-2: What situations prompt an organization design change
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Reasons to Begin a Design Project
Organization has made an acquisition
Organization expands globally
Cost pressures
Leadership change
Communicating a shift in priorities
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The Design Process
Conduct a design assessment and scope the project
Generate design criteria and determine required organizational capabilities
Develop a design overview, then text and refine the details
Transition and implement, evaluate and adapt
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LO 2-3: Why following a design process is beneficial and what activities a design process consists of
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The Design Process
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Scope, Approach and Involvement
Two approaches to design effort:
Top down
Bottom Up
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Scope, Approach and Involvement
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Deciding Who Is Involved
“Mafia” approach
Pointing blame
Advocating for conservative choices
Participative approach
Expanded design team
Increase input below senior team
High engagement in organization design
More likely to commit to implementation
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Choosing the Right Participants
Considerations:
Level of agreement among key stakeholders
Scope of design effort
Quality of current relationships in organization
Employee involvement in design process
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Choosing the Right Participants
Amount of control management will exercise
Resources required and available
Organization’s past experiences with organization design
Readiness of the senior leaders to meet requirements
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Choosing the Right Participants
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Design Assessments and Environmental Scanning
Benefits:
Scope the problem and boundaries of design decisions
Spark interest in change
Communicate and ensure a common understanding of the design effort’s purpose
Give insight into difficulty of change process
Generate alternative solutions early one
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LO 2-4: How to conduct a design assessment and environmental scan, and then to evaluate the current design
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Design Assessments: Gathering Data
Interviews
Focus Groups
Surveys
Observations
Unobtrusive measures
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Design Assessments: Gathering Data
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Environmental Scanning: STEEP and SWOT
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Environmental Scanning: STEEP and SWOT
SWOT:
Strengths
Weakenesses
Opportunities
Threats
Scenario planning
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Evaluating the Current Design
Evaluating alignment in the design
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Evaluating Strategy in the Design
Strategic factors include a design that:
Supports the implementation of strategy
Facilitates the flow of work
Permits effective managerial control
Creates doable, measurable jobs
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Evaluating Social/Cultural Factors in the Design
Social and cultural factors examine :
Existing peoples’ fit into the design
Power relationships among different groups
People’s values and beliefs
Tone and operating style of the organization
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Goold and Campbell’s Nine Design Tests
Fit Tests:
The Market Advantage Test
The Parenting Advantage Test
The People Test
The Feasibility Test
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Goold and Campbell’s Nine Design Tests
“Good Design” Tests:
The Specialist Cultures Test
The Difficult-Links Test
The Redundant-Hierarchy Test
The Accountability Test
The Flexibility Test
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Design Criteria and Organizational Capabilities
Objective design criteria are a benefit
Usually synonymous with organization capabilities
Unique, integrated combinations of skills, processes, and human abilities
Created by and housed within an organization
Differentiate the organization
Provide competitive advantage
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Anderson, Organization Design
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LO 2-5: How and why to begin the design process by creating design criteria
34
Design Criteria and Organizational Capabilities
Sample design criteria:
Create new products faster than competitors
Offer diverse product line
Encourage innovation
Deliver high levels of customer satisfaction
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Anderson, Organization Design
SAGE Publishing, 2019
,
Organization Design: Creating Strategic and Agile Organizations
Donald L. Anderson
Chapter 5
Processes & Lateral Capability
Lateral Capability: The Horizontal Organization
Lateral capability: Information and decision processes that coordinate activities spread out across different organizational units, providing mechanisms for decentralizing general management decisions
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LO 5-1: Why lateral capability is important (and difficult_
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Lateral Capability: The Horizontal Organization
Lateral capability = horizontal organization
Formal structure = vertical organization
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Lateral Capability: The Horizontal Organization
Encourages coordination throughout the structure
Motivated by:
A variety and diversity of tasks
Rapidly changing environment
High degree of interdependence among functional units
Common technology platforms
Requirements for faster cycle time
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Why Developing Lateral Capability Is So Difficult
Internal competitive forces:
Turf wars
Stronger identification
Rewards
Mistrust
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Benefits and Costs of Lateral Capability
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Forms of Lateral Capability
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LO 5-2: The forms of lateral capability and their advantages and disadvantages
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Networks
Informal communication networks can circumvent regulated channels
Learning who to contact
How to get information
How to participate in the social fabric
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Networks
Cultivating Networks
Glue people
Physical spaces
Face-to-face collaboration
Job rotation programs
Training
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Anderson, Organization Design
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Networks
Communities of practice
Rapid problem solving
Sharing best practices
Developing professional skills
Electronic social networks
Shared file systems
Social media platforms
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Anderson, Organization Design
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Communities of practice: Groups of people informally bound together by shared expertise and passion for a joint enterprise
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Networks
Advantages:
Encourage innovation
Knowledge sharing
Broader organizational perspective
Not costly
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Anderson, Organization Design
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Shared Goals, Processes, and Systems
Shared or superordinate goals
Lateral processes:
Management practices
Planning
Budgeting
Information technology
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Shared goals: If employees in different departments have the same goal, they are more likely to coordinate in service of that goal
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Advantages:
Add another level of formality
Groups see the shared impact of their work
Mangers and employees can see how they are connected
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Shared Goals, Processes, and Systems
Disadvantages:
Time consuming and costly
Process or technology can direct work
Employees at mercy of required process
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Anderson, Organization Design
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Shared Goals, Processes, and Systems
Teams
Two or more people
Specific performance objective
Coordination among team member sis required to attainment of team objective
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Teams
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Anderson, Organization Design
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Teams
Cross-functional teams:
A small collection of individuals from diverse functional specializations within the organization
Members report to a project team leader
“Home” manager directs day-to-day work
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Teams
Eight characteristics of successful teams:
A clear, elevating goal
A results-driven structure
Competent members
Unified commitment
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Teams
A collaborative climate
Standards of excellence
External support and recognition
Principled leadership
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Teams
Advantages:
Empower individuals lower in the hierarchy
Can be formed quickly and flexibly
Disadvantages:
Require team skills
Need a clear purpose
Require defined decision authority
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Integrator Roles
Formal positions with the responsibility to share information and coordinate across the structure
Handle nonroutine, unprogrammed problems
Often do not have formal authority
Skilled at conflict resolution, negotiation, and persuasion
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Matrix Organizations
Two-Hat Matrix: Each manager has responsibility over two dimensions of the matrix
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Anderson, Organization Design
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Matrix Organizations
Three-Dimensional Matrix: The company maintains business/product units and geographic regions
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Matrix Organizations
To make the matrix successful:
Seeing that conflicts are resolved
Managing the top team
Balancing power
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Getting the Level of Lateral Capability Right
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How to Decide Which Form to Use
Considerations:
Degree of interdependence
Business strategy
Task uncertainty and complexity
Cost
Interpersonal skills
Trust and existing relationships
Changes over time
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LO 5-3: How to decide which form of lateral capability to implement in a design
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Governance Models and Decision Authority
Governance and planning processes
Direction
Oversight
Innovation
Strategic Intentiosn
Decision-making practices
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LO 5-4: How governance models and decision processes enhance collaboration
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Enablers for Successful Lateral Capability
Leadership and management skills
Shared values
Authentic empowerment
People practices
Reward systems
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Organization Design: Creating Strategic and Agile Organizations
Donald L. Anderson
People
Chapter 6
Traditional Approaches to People Practices
1950s: Companies no longer brought in outside talent. Rapid growth demanded that organizations better identify skilled talent and quickly train employees.
1970s-1980s: Deregulation and greater global competition made it difficult for businesses to predict what skills would be needed.
1990s: Outside hiring increased as organizations looked externally for skilled talent
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Traditional Approaches to People Practices
By the 2000s, many organizations stopped talent planning and internal training programs
Structure-centric approach to people
Today’s HR practices are generic and interchangeable in most organizations
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Traditional Approaches to People Practices
Boudreau and Ramstead’s poor approaches to talent decisions:
Compliance
Follow fads and fashions
Focus on equality
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Compliance: Decisions based on threats of legal action or regulatory requirements
Follows fads and fashions: Decisions based on popular approaches and not what makes sense for the organization
Equality: Little difference between practices for high and low performers
5
A Strategic Approach to People Practices
“Where does our strategy require that our talent and organization be better than our competitors’ to work”
“Where do our talent and organization systems need to be different from competitors’ and why?”
Where would an improvement in the quality of talent and organization make the biggest different in our strategic success?”
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A Strategic Approach to People Practices
“If we shifted our strategic goals, which of our employees or organizational structures would have to change the most?”
When the strategy changes, how should you change your talent and organization?”
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People strategy affects business strategy
Business strategy is determined by talent considerations
Talent considerations drive human capital management practices
Organizations with a strategic approach to talent perform better
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Anderson, Organization Design
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A Strategic Approach to People Practices
LO 6-1: Why the People point of the STAR must be customized to the business strategy
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Anderson, Organization Design
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A Strategic Approach to People Practices
LO 6-1: Why the People point of the STAR must be customized to the business strategy
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A Strategic Approach to People Practices
Four characteristics:
Driven by and fully integrated with business and talent strategies
Managed as a core business process
Planning cycle matches the business strategy and operational timelines
Engrained with a talent mindset throughout the organization
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Anderson, Organization Design
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A Strategic Approach to People Practices
Three actions taken by following a strategic talent approach:
Understanding key positions for differentiation
Identifying a talent pool of high potential employees
Creating an aligned architecture of HR programs
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Key Positions and the Differentiated Workforce
Beatty and Schneier (1997)
Operational excellence
Product leadership
Customer intimacy
Miles and Snow (1984): Building internal human resources, with emphasis on hiring at lower levels and providing substantial training and development
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Operational excellence: Employees should be selected for process competence
Product leadership: Performance measures should be on industry recognition, sales on new products, customer growth, etc.
Customer Intimacy: Employees should be active learners and able to network
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Key Positions and the Differentiated Workforce
Generic strategy is an option for organizations in the early stages of differentiating the workforce
Suggests that there are only a few HR strategies
All organizations pursuing a certain goal would have the same HR practices
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Key Positions and the Differentiated Workforce
Becker, Huselid, and Beatty (2009): “Differentiating the workforce strategy ultimately means investing disproportionately in certain employees and groups of employees, based on their strategic roles.”
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Key Positions and the Differentiated Workforce
Different choices are made for those in strategic roles
Employee selection
Rewards
Performance management
Employee development
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“A” Positions and Pivot Roles
Topgrading: The practice of hiring and retaining only A players – the people in the top 10 percent of talent available”
Significant resources are required to recruit, compensate, and develop top performers
Place best employees in strategic positions, good performers in support positions
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Anderson, Organization Design
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LO 6-2: How to create differentiated workforce plans and unique people strategies by understanding “A positions” and pivot roles
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“A” Positions and Pivot Roles
A Positions: Strategic
High strategic impact and performance is easy to observe
B Positions: Support
Do not make a direct strategic contribution but may assist A positions
C Positions: Surplues
No strategic importance, but are necessary for organization
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“A” Positions and Pivot Roles
“A” position are also known as “Pivot Roles”:
Important to a company’s ability to execute on its strategy
High degree of performance variability
High level of expertise
Less than 15% of workforce
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Talent Identification and Planning
Talent Identification:
Job Competencies
Personality inventories
Assessment of past performance and potential
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LO 6-3: How to design strategic talent practices such as career development, learning and development, and performance management to support the organization design
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Talent Identification and Planning
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Anderson, Organization Design
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LO 6-3: How to design strategic talent practices such as career development, learning and development, and performance management to support the organization design
20
Talent Identification and Planning
Definition of high potential:
Role: Potential to move into top or senior management roles
Level: Ability to move and perform two positions or levels above current role
Breadth: Capability to take on broader scope and a leadership role and develop long-term potential
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Talent Identification and Planning
Characteristics of people with high potential:
Motivation
Curiosity
Insight
Engagement
Determination
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SAGE Publishing, 2019
Talent Planning, Pipelines, and Talent Pools
Four recommendations for talent pipeline:
Make and buy to manage risk
Adapt to the uncertainty in talent demand
Improve the return on investment in developing employees
Preserve the investment by balancing employee-employer interest
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Career Development
Classic View: Stages of the Career
Growth, fantasy, exploration
Entry into world of work
Basic training
Full membership in early career
Full membership, mid career
Midcareer crisis
Late career
Decline and Disengagement
Retirement
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The Contemporary View: Boundaryless Careers
Boundaryless career: Transcends any individual job, occupational function, profession, and organization
Career lattice: Employees can develop by gaining a diversity of experience
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The Contemporary View: Boundaryless Careers
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The Contemporary View: Boundaryless Careers
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Talent Development and Learning Programs
New Forms of Learning:
eLearning
Informal learning
Social learning
Development through experiences
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Performance Management
Four goals:
Defines and produces agreement on what type of performance is needed
Guides the development of individuals
Motivates individuals to perform effectively
Provides data to the organization’s human capital information system
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Performance Management
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Anderson, Organization Design
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Performance Management
Principles of designing effective performance management process:
Get the right people involved
View performance appraisal as part of a complex system
Learn from implementation
Remain flexible
Be patient
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Strategic Analysis and Designing the People Point
A tool to help organization the designer’s priorities
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Global Considerations
Orga
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