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SYSTEMS AND CONTINGENCY APPROACH TO ORG THEORY & PRACTICE
AND TECHNIQUES OF ORGANISATIONAL DIAGNOSIS*Facilitator and Course
Coordinator:Vinayshil Gautam PhD, FRAS(London)(Founder Director IIM
K; Leader Consulting Team IIM S)A Al_Sager Chair Professor and
First Head,Management Department, IIT DChairman, DKIF
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Theories and their importanceA theory is a set of assumptions or
principles that have been repeatedly tested to explain or predict
facts or phenomena Theories:Provide a conceptual frameworkProvide a
common vocabularyGuides actionAssists comprehension or
judgmentChallenge practice wisdom
*
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Systems TheoryLudwig Von Bertalanffy, has long been regarded as
the Founder of Systems TheoryHe argued that all systems, whether
organic or organisational, shared similar characteristics &
could be analysed in similar terms
*
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Systems TheoryViews the organization as a system of interrelated
parts that function in a holistic way to achieve a common
purpose.*McGraw-Hill
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Systems concept: EnvironmentOrganisations are open to their
environments
*
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Systems Concepts: AdaptationTo survive the organisations must
adapt to its environmentAll non-random functioning systems have:
Inputs Processes Output Feedback loop with criteria An organisation
that does not produce what is reqd by its environment must either
change or disappear*
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Systems Concepts: BoundariesBoundaries are the interface between
a system and its subsystems or a system and its environment. By
examining the boundaries of a system, we can often isolate the
friction and its causes.*
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Systems Concepts: Goal SeekingOrganisations & Organisational
subsystems tend to be goal seeking, that is, they move in the
direction of goal achievement. The primary goal of a system is
survival.
*
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Systems Concepts: CyberneticsFor a system to work properly, it
must have feedback and control mechanismsFeedback and control
mechanismsAccept information about system outputsEvaluate
information using goal related criteriaUse evaluative information
as additional i/p*
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Systems Concepts: DifferentiationOrganisations are complex
systems
Different subsystems become specialised through catering for
different aspects of organisation
Various depts of any business org e.g., prodn, marketing,
finance etc, are all geared to a very different environment*
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Systems Concepts: SynergySystems working well experience synergy
where the total system output are greater than the sum of all
inputs. For synergy to occur, subsystems must not optimize, but
cooperate for the good of the overall system, e.g.,
Teamwork.Synergy is also called nonsummativity*
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Contingency TheoryOr
It all depends on the situation*
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Contingency TheoryStates that there is no one best way to manage
an organization.
Because what works for one organization may not work for
another
Situational characteristics (contingencies) differ
Managers need to understand the key contingencies that determine
the most effective mgt practices in a given situation*
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TechnologyLots of research since 1950 has taken place to
identify the effects of technology upon organisationsResearch by
Woodward & Tavistock Institute indicated that Technology
influenced :*
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*Degree of Job dissatisfactionBehaviour of Work groupsPattern of
Industrial relationsStructure of Organisations
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Technology & Degree Of Job DissatisfactionDifferent
technologies have different effect upon nature of work & degree
of job dissatisfactionBlauner distinguished between four different
technologies :*
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*Craft technology (printing)Machine-minding technology
(textile)Mass prodn technologyProcess technology (chemical)
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Levels of Alienation suffered by people due to different
technologies*
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Technology & Behaviour Of Work GroupsSayles suggested that
technology determines not only the formation of work groups but
also their behaviourFactors determining the formation of work
groups : - Worker skill level reqd by technologyDegree of
interactions between workers permitted by technology*
-
*
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Technology & Industrial Relations*
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Technology & Organisational StructureJ Woodward carried out
one of the most influential studies to discover whether principles
of organisations laid down by an expanding body of Mgt theory
correlates with business success when put into practice*
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Methodology :About hundred firms were taken as a sampleThey were
divided into 3 general categories based on their method of
production :- Simple units & small batch prodn methods- Large
batch & mass prodn methods- Complex process prodn methodsAll
these firms were placed along what she called continuum of
technological complexity*
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Main Findings :Firms with similar methods of prodn were
organised in a similar wayFirms at either end of continuum had
similar characteristicsThere was a relationship between technology,
organisational structure & economic successThere was a
relationship between technology and the pattern of industrial
relations*
-
*
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Socio-Technical Systems Socio-technical theory evolved from the
field work of researchers from Tavistock Institute of Human
RelationsPrinciple finding was that there are social implications
for every implementation of changeMeasures suggested :- Set up a
structure for intergroup communications to solve any problems
groups might experience*
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- Develop company code to govern relations between people at
different levels Counseling of workers in groups to express
feelings constructively
In Tavistock view, a healthy organisation is one which is
capable of tackling in a realistic manner whatever technical,
economic, or social problems it might encounter*
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SOCIOTECHNICAL SYSTEMS* THEORY EVOLVED FROM THE FDWORK OF
RESEARCHERS OF TAVISTOCK INSTITUTE OF HUMAN RELATIONS
DEVELOPING OF METHODS FOR SYSTEMATIC OBSERVATION OF HUMAN
BEHAVIOUR IN ORGANISATIONS SO AS TO SOLVE SOCIAL PROBLEMS.
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* PROBLEM ?
SERVICE DEPARTMENT - PIECEWISE PAY VIS A VIS FIXED PAY.
NO CONCERN FOR THE WORKERS INTEREST.
MANAGERS AND WORKERS SHOWED LACK OFTRUST FOR EACH OTHER.
RESEARCHERS SUGESSTIONS
MGMT WORKER INTERRELATIONSHIP.
MORALE BUILDING.
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TAVISTOCK RESEARCH* THE BASIC PRINCIPLE WAS THERE ARE SOCIAL
IMPLICATIONS FOREVERY IMPLEMENTATION OF CHANGE.
SETUP STRUCTURE FOR INTERGROUP COMMUNICATION TO DEAL WITH THE
PROBLEMS
DEVELOPMENT OF A COMPANY CODE GOVERNING THE RELATION BETWEEN
PEOPLE AT DIFFERENT LEVELS.
MANAGERS SHOULD BE MORE RESPONSIVE TO ORGANISATIONAL
PROBLEMS.
BASIC PROBLEM IS MAINTAINING A STRUCTURE AND CULTURE TO COPE
WITH CHALLENGES OF A CHANGING SOCIETY.
HEALTHY ORGANISATION - ONE WHICH IS CAPABLE OF TACKLING THE
PROBLEMS IN A REALISTIC MANNER.
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SOCIOTECNICAL SYSTEMS THEORY* ORGANISATIONS ARE OPEN
SYSTEMS.
DEPEND ON THE ENVIRONMENT FOR RAW MATERIALS AS INPUTS AND FOR
MARKETS TO ABSORB THEIR OUTPUTS OR PRODUCTS.
CONSIST OF SEVERAL SUBSYSTEMSTO DEFINE THE INTERNAL
PROCESSES.
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ORGANISATIONAL SYSTEM* . ENVIRONMENTAL SYSTEMGOALS &VALUES
SUBSYSTEM
CULTURE PHILOSPHY OVERALL GOALS INDIVIDUAL GOALSPSYCHOSOCIAL
SUBSYSTEM
HR ATTITUDES MOTIVATION GP DYNAMICS LEADERSHIP INFLUENCE
SYSTEMSTECHNICAL SUBSYSTEM
TASK REQUIREMENT KNOWLEDGE TECHNIQUES LAYOUT OF FACILITIES MACHY
EQUIPMENT INFORMATION STRUCTURAL SUBSYSTEM TASKS WORK FLOWS WORK
GROUPS AUTHORITY INFORMATION FLOWS PROCEDURES & RULESMANAGERIAL
SUBSYSTEM
GOAL SETTING PLANNING ASSEMBLING RESOURCE ORGANISING
IMPLEMENTATION
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TECHNICAL SUBSYSTEM* ORGANISATION REQUIRES STRUCTURING AND
INTEGRATING HUMAN ACTIVITIES AROUND VARIOUS TECHNOLOGIES.
EVERY MODERN ORGANISATION IS INFUENCED BY THE RAPID ACCELERATION
OF TECHNOLOGY IN OUR SOCIETY.
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* AFFECTS THE TYPES OF INPUTS AND THE OUTPUTS FROM THE SUBSYSTEM
AND THUS THE TASK ACCOMPLISHMENT.
WAYS IN WHICH THE ORGANISATION ADAPTS TO THE CHANGING TECHNOLOGY
HAS A SIGNIFICANT IMPACT ON THE OTHER ORG SUBSYSTEMS.
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TECHNICAL SUBSYSTEM* DEFINITION
MECHANISTIC VIEW - THE MECHANICAL MEANS FOR PRODUCTION OF GOODS
AND SERVICES AND REPLACEMENT OF HUMAN EFFORT.
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* TECHNOLOGY IS FAR MORE THAN THE MACHINE AND REFERS TO
STANDARISED MEANS FOR ATTAINING A PREDETERMINED OBJECTIVE OR
RESULT. THUS CONVERTS SPONTANEOUS AND UNREFLECTIVE BEHAVIOUR INTO
BEHAVIOUR THAT IS DELIBERATE AND RATIONALISED AND RESULTS IN
ABSOLUTE EFFICIENCY IN EVERY FIELD OF HUMAN ACTIVITY.
----JACQUES ELLUL.
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TECHNICAL SUBSYSTEM* CAN BE PERCEIVED AS AN ENVIRONMENT WITHIN
WHICH WE LIVE ,MADE UP OF EXTERNAL AND TANGIBLE THINGSWHICH MODIFY
US FROM TIME TO TIME AND WHICH MODIFY US.
VIEWED INTERNALLY AS CONSISTING OF SKILLS OF BODY AND BRAIN AND
ADM PROCEDURES AND OF MENTAL PROCESSES(CONSCIOUS AND UNCONSCIOUS),
SOME ASSOCIATED WITH VALUE JUDGEMENTS WHICH RELATE MAN S OUTER
WORLD TO HIS INNER ONE.
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*DETERMINED BY THE
-TASK REQUIREMENTS OF AN ORG. -KNOWLEDGE AND SKILLS -MACHINERY
AND EQPT INVOLVED. -TECHNIQUES. -LAYOUT OF FACILITIES.
-INFORMATION
-
TECHNICAL SUBSYSTEM*ACCELERATING TECHNOLOGY
SCIENCE AND TECHNOLOGY PERVASIVE FORCES IN MODERN SOCIETY.
IMPACTED THE SOCIAL STRUCTURE AND CULTURE.
AUTOMATION - REPLACED HUMAN DECISION MAKING IN THE CONTROL
PHASE.
EFFECTIVE UTILISATION OF TECHNOLOGIES REQUIRE THE DEVELOPMENT OF
COMPLEX ORGANISATIONS.
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*DANGERS OF TECHNOLOGY
WILL DRIVE OUT HUMANISTIC AND SOCIAL CONSIDERATIONS.
TOTAL INTEGRATION OF MAN INTO THE TECHNICAL SYSTEM(SOCIOCULTURAL
STRUCTURE).
CHANGES IN VAUES AND GOALS.
CHALLENGE TO PROFIT FROM ITS OPPORTUNITIES ANDCONTAINING ITS
DANGERS.
INTERACTION BETWEEN THE TECH AND PSYCHOSOCIAL SYSTEM IS A
DETERMINANT OF THE RELATIONSHIP BETWEEN TECHNOLOGY AND SOCIETY.
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TECHNICAL SUBSYSTEM*CLASSIFICATION OF TECHNICAL SYSTEMS
BASIS OF PRIMARY FN - SCHOOLS , HOSPITALS,UNIONS, ETC.
TECHNICAL SYSTEM BASIS.
INDUSTRIAL ORGANISATIONS SMALL BATCH MASS PRODUCTION AND
CONTINUOUS PROCESS.
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*CLASSIFICATION BY THOMPSON
LONG LINKED TECHNOLOGY INVOLVES SERIAL INTERDEPENDENCE BETWEEN
VARIOUS PRODUCTION UNITS ,eg FULLY AUTOMATED ASSY LINE.
MEDIATING TECHNOLOGY - INVOLVES JOINING OF CLIENTS
&CUSTOMERS ,OTHERWISE INDEPENDENT,eg BANKS, POST OFFICES.
INTENSIVE TECHNOLOGY DEAL WITH SPECIFIC PROBLEMS,eg R&D,
HOSPITALS.
THE TWO PRIMARY DIMENSIONS HERE ARE COMPLEXITY AND DEGREE OF
UNIFORMITY OR NONUNIFORMITY.
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TECHNICAL SUBSYSTEM*
PROBLEMS
ADAPTING TO ONE TECHNOLOGICAL COMPONENT.
INTEGRATING AND COORD A NO OF DIFFERENT TECHNOLOGIES WITHIN THE
ORG SYSTEM.
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TECHNICAL SUBSYSTEM*IMPACT OF TECHNICAL SYSTEM
TRADITIONALLY , TECHNOLOGICAL COMPONENT WAS CONSIDERED AS A
CLOSED SYSTEM DID NOT HAVE ANY DYNAMIC INTERACTION WITH OTHER
SYSTEMS .
LEAD TO UNREALISTIC AND IDEALISTIC GENERALISATIONS..
ACTUALLY TECHNOLOGY AND OTHER SYSTEMS ARE INDEPENDENTLY
RELATED.
-
* THREE BASIC WAYS IN WHICH TECHNOLOGY INFLUENCES BEHAVIOUR
THROUGH ITS EFFECT ON OTHER INPUTS.
- HUMAN INPUTS REQUIRED BY AN ORG.
- GROSS FEATURES OF ORG STRUCTURE AND PROCEDURES.
- DETERMINANT OF INDIVIDUAL AND GROUP JOB DESIGNS/SOCIAL
STRUCTURE AND NORMS.
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TECHNICAL SUBSYSTEM*CLASSIFICATION OF TECHNICAL SYSTEMS
BASIS OF PRIMARY FN - SCHOOLS , OSPITALS,UNIONS, ETC.
TECHNICAL SYSTEM BASIS.
INDUSTRIAL ORGANISATIONS SMALL BATCH, MASS.PRODUCTION AND
CONTINUOUS PROCESS
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*CLASSIFICATION BY THOMPSON
LONG LINKED TECHNOLOGY INVOLVES SERIAL INTERDEPENDENCE BETWEEN
VARIOUS PRODUCTION UNITS ,eg FULLY AUTOMATED ASSY LINE.
MEDIATING TECHNOLOGY - INVOLVES JOINING OF CLIENTS
&CUSTOMERS ,OTHERWISE INDEPENDENT,eg BANKS, POST OFFICES.
INTENSIVE TECHNOLOGY DEAL WITH SPECIFIC PROBLEMS,eg R&D,
HOSPITALS.
THE TWO PRIMARY DIMENSIONS HERE ARE COMPLEXITY AND DEGREE OF
UNIFORMITY OR NONUNIFORMITY.
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TECHNICAL SUBSYSTEM*IMPACT UPON STRUCTURE
RESEARCH BY JOAN WOODWARD.
DIRECT CORRELATION BETWEEN TECHNOLOGY AND ORG STRUCTURE .
ORG CHARACTERISTICS WHICH SHOW A DIRECT RELATIONSHIP WITH TECH
ADVANCE ARE :-
-
* - LENGTH OF LINE OF COMMAND INCREASES IN VERTICAL LEVELS. -
SPAN OF CONTROL - INCREASED FROM 4 10, BY MANAGEMENT AND COMMITTEE.
- SALARIES AND WAGES. - MANAGER /PERS RATIO INCREASED. -
STAFF-WORKER RATIO LARGER. - SUPERVISION LEVEL HIGHER.
SYSTEM OF PRODUCTION LEAD TO DIFFERENT STRUCTURE. OPERATIONS
TECHNIQUES HAD LIMITED IMPACT ON THE COORDINATIVE SYSTEM. STRATEGIC
LEVEL ENVIRONMENTAL INFLUENCES ON THE BROAD ADMINISTRATIVE
STRUCTURE
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TECHNICAL SUBSYSTEM*
IMPACT ON PSYCHOSOCIAL SYSTEM
TRADITIONALLY , ASSUMPTION WAS ADAPTATION, BUT IT AFFECTS
THE
- NETWORK OF SOCIAL RELATIONS AMONG WORKERS. - SIZE AND
COMPOSITION OF WORKGROUPS IN RANGE, CHARACTER, FREQUENCY OF CONTACT
WITH FELLOW WORKERS AND SUPERVISORS..
-
* - LEAD TO JOB INSECURITIES.
- STATUS POSITION OF THE WORKER. - PHYSICAL AND SOCIAL
MOBILITY.
- OUTMODED JOBS.
- SELF IMAGE AND MOTIVATION
-
TECHNICAL SUBSYSTEM*
IMPACT ON PSYCHOSOCIAL SYSTEM
INCREASED SPECIALISATION RESULTED IN GREATER PREDICTABILITY OF
WORK BEHAVIOUR AND INCREASED DISCIPLINE IN THE WORKPLACE.
ASSY LINE AFFECTS THE SOCIAL ORGANISATION IN TERMS OF SIZE , FN
AND INTERACTION OF WORKGROUPS, INTERPERSONAL RELATIONSHIP,
RELATIONSHIP WITH THE SUPERVISORS, WAGE STRUCTURE AND PROMOTIONAL
ASPECTS.
-
* ALIENATION AND DISSATISFACTION IN ASSY, LINE WORKERS AND MORE
MOTIVATION INTEGRATION AND SATISFACTION IN CRAFT AND CONTINUOUS
PROCESS.
EMOTIONAL STRESS , LACK OF GP IDEN WHICH LEAD TO LOSS OF
PRODUCTIVITY.
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TECHNICAL SUBSYSTEM*REMEDIAL MEASURES
INCREASED PRODUCTION.
PERSONAL SATISFACTION.
QUALITY AND EFFICIENCY.
MAINT HIGH LEVEL OF GROUP MORALE.
BETTER COORDINATION.
JOB ENRICHMENT.
LEAD TO INCREASED ORGANISATIONAL EFFECTIVENESS AND
EFFICIENCY
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TECHNICAL SUBSYSTEM*IMPACT ON MANAGERIAL SYSTEM
SPECIALISED SKILLS AND TRAINING
IMPACT ON STAFF AND FUNCTIONAL PERSONNEL, MIDDLE AND LOWER LEVEL
MANAGERS.
-
* ROLE OFFIRST LINE MANAGER REQUIRED TO INTEGRATE ACTIVITIES
ACROSS A BROADER SPECTRUM
SUPERVISORY REQUIREMENTS BOTH IN TERMS OF TECHNICAL AND HUMAN
RELATIONS HAVE INCREASED.
TRADITIONAL SYSTEM PRIMARY CONSIDERATION WAS GIVEN TO THE
DIFFERENTIATION OR SEGMENTATION OF ACTIVITIES INTO SUBSYSTEMS FOR
TASK PERFORMANCE.
-
TECHNICAL SUBSYSTEM*
IMPACT ON MANAGERIAL SYSTEM
IN TRADITIONAL SYSTEMS PRIMARY CONSIDERATION WAS GIVEN TO
DIFFERENTIATION OF ACTIVITIES INTO SUBSYSTEMS. IN COMPLEX
ORGANISATIONS INCREASED DIFFERENTIATION RESULTED IN INTEGRATION
PROBLEMS IN THE VARIOUS SUBSYSTEMS.
-
*BURNS AND STALKER
MECHANISTIC ADAPTED TO STABLE SYSTEM
- RIGID ORG STRUCTURE RESEMBLANCE TO BUREACRACY
- WELL DEFINED TASKS,AND THE METHODS , DUTIES AND POWERS OF EACH
FUNCTIONAL ROLE WERE DETERMINED PRECISELY.
- COORDINATIONS &INTERACTIONS WERE VERTICAL COMMAND
HIERARCHY.
-
TECHNICAL SUBSYSTEM*ORGANIC SYSTEMS
ADAPTED TO RAPIDLY CHANGING TECHNOLOGY AND ENVIRONMENT .
SUITABLE TO UNSTABLE CONDITIONS.
FLEXIBLE STRUCTURE.
CONTINUOUS ADJUSTMENT AND REDIFINING OF INDIVIDUAL TASKS THROUGH
INTERACTION A NETWORK.
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* LATERAL COMMUNICATION ,WIDE DISPERSAL OF POWER BASED ON
TECHNICAL EXPERTISE AND KNOWLEDGE.
AUTHORITY AND SUPERIORNOWLEDGE DO NO NECESSARILY COINCIDE
THE PROBLEM - INSECURITY ON THE PART OF MANAGERS.
INNOVATIVE JUDGEMENTAL DECISION MAKING WHERE STRESS IS ON
PROBLEM SOLVING. BUREACRATIC JUNGLE
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ORGANISATIONAL SYSTEM* . ENVIRONMENTAL SYSTEMGOALS &VALUES
SUBSYSTEM
CULTURE PHILOSPHY OVERALL GOALS INDIVIDUAL GOALSPSYCHOSOCIAL
SUBSYSTEM
HR ATTITUDES MOTIVATION GP DYNAMICS LEADERSHIP INFLUENCE
SYSTEMSTECHNICAL SUBSYSTEM
TASK REQUIREMENT KNOWLEDGE TECHNIQUES LAYOUT OF FACILITIES MACHY
EQUIPMENT INFORMATION STRUCTURAL SUBSYSTEM TASKS WORK FLOWS WORK
GROUPS AUTHORITY &1`ORG CHARTS INFORMATION FLOWS PROCEDURES
& RULESMANAGERIAL SUBSYSTEM
GOAL SETTING PLANNING ASSEMBLING RESOURCE ORGANISING
IMPLEMENTATION
-
STRUCTURAL SUBSYSTEM*
ESTABLISHED PATTERN OF RELATIONSHIPS AMONG THE COMPONENTS OR
PARTS OF AN ORGANISATION THAT ARE RELATIVELY STABLE AND THAT CHANGE
SLOWLY .
INFERRED FROM THE ACTUAL OPERATIONS AND BEHAVIOUR OF THE
ORGANISATION .
ARRANGEMENT OF ITS SUBSYSTEMS AND COMPONENTS IN THREE
DIMENSIONAL SPACE AT A GIVEN MOMENT OF TIME.
-
*
STRUCTURE AND ITS FUNCTIONS ARE SEPARATE PHENOMENA BUT CANNOT BE
LOOKED AT AS COMPLETELY SEPERATED.
INITIALLY SET FORTH BY THE DESIGN OF THE MAJOR COMPONENTS OR
SUBSYSTEMS AND THEN BY THE EST OF PATTERNS OF RELATIONSHIP AMONG
THESE SUBSYSTEMS.
INTERNAL DIFFERENTATION AND PATTERN OF RELATIONSHIPS WITH SOME
DEGREE OF PERMANENCY REFERRED TO AS STRUCTURE.
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STRUCTURAL SUBSYSTEM* FORMAL AND INFORMAL STRUCTURES.
FORMAL SLOW IN RESPONDING TO EXTERNAL CHANGES SUCH AS TECHNOLOGY
CHANGES THUS INFORMAL RELATIONSHIPS DEVELOP
INFORMAL ADAPTIVE AND SERVE TO PERFORM INNOVATIVE FUNCTIONS.
-
* TRADITIONALLY CONCENTRARATION WAS ON THE FORMAL ORG STRUCTURE
AND INFORMAL RALATIONS WERE OF CONCERN
BOTH ARE INTERMESHED .
DIFFICULT TO UNDERSTAND THE NATURE OF FORMAL ORG WITHOUT
INVESTIGATING THE NETWORKS OF INFORMAL RELATIONS AND THE UNOFFICIAL
NORMS AS WELL AS THE FORMAL HIERARCHY OF AUTHORITY AND THE OFFICIAL
BODY OF RULES..
CLEAVAGE BETWEEN THE TWO IS ARTIFICIAL.
TWO BASIC MODELS - BUREACRATIC AND MATRIX.
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STRUCTURAL SUBSYSTEM*
IMPACT OF SOCIOCULTURAL ENVIRONMENT
RESEARCH BY STINCHCOMBE
STRUCTURE AT THE STRATEGIC LEVEL HAS A GREAT IMPACT OF THE
FORCES IN THE TASK ENVIRONMENT.
MNCS STRONGLY INFLUENCED BY THE DIFFERING CULTURES IN WHICH IT
OPERATES AND HAS TO ADAPT ITS GOALS STRUCTURE AND MANAGERIAL
APPROACH TO THE DIFFERENT CULTURE.
-
STRUCTURAL SUBSYSTEM*
IMPACT OF SOCIOCULTURAL ENVIRONMENT
RESEARCH BY CHANDLER
CHANGING POPULATION ,INCOME ,TECHNOLOGY, AND OTHER FORCES IN THE
ENVIRONMENT LED TO EXPANSIO OF THESE FIRMS INTO NEW FIELDS.
STRATEGY OF DIVERSIFICATION AND EXPANSION LED TO MAJOR
MODIFICATIONS IN STRUCTURE
-
*
LED TO ADOPTION OF A MULTIDIVISIONAL STRUCTURE.
- CENTRAL CORPORATE OFFICE PLANS AND COORDINATES THE ACTIVITIES
OF A NUMBER OF OPERATING DIVISIONS AND ALLOCATES PERS ,FACILITIES
,FUNDS AND OTHER RESOURCES.
- OPERATIONS ARE DECENTRALISED TO THE OPERATING DIVISIONS WHICH
HAVE A SUBSTANTIAL DEGREE OF AUTONOMY.
-
STRUCTURAL SUBSYSTEM*
IMPACT OF SOCIOCULTURAL ENVIRONMENT
STRUCTURE OF CONGLOMERATES
- SMALL CORPORATE HQs.
- DO NOT EXERCISE STRICT CONTROLOR COORDINATE ACTIVITIES OF THE
OPERATING UNITS
-
* SUBUNITS ARE SELF CONTAINED AND AUTONOMOUS
INTEGRATION ACHIEVED THROUGH CORPORATE DIVISIONAL INTERACTIONS
WITH MINIMUM DIVISION TO DIVISION INTEGRATION.
THE BASIC STRATEGY IS TO INTEGRATE AT THE STRATEGIC LEVEL.
IMPACT OF TECHNOLOGY ,SIZE AND COMPLEXITY OF ORGANISATIONS.
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ORGANISATIONAL SYSTEM* . ENVIRONMENTAL SYSTEMGOALS &VALUES
SUBSYSTEM
CULTURE PHILOSPHY OVERALL GOALS INDIVIDUAL GOALSPSYCHOSOCIAL
SUBSYSTEM
HR ATTITUDES MOTIVATION GP DYNAMICS LEADERSHIP INFLUENCE
SYSTEMSTECHNICAL SUBSYSTEM
TASK REQUIREMENT KNOWLEDGE TECHNIQUES LAYOUT OF FACILITIES MACHY
EQUIPMENT INFORMATION STRUCTURAL SUBSYSTEM TASKS WORK FLOWS WORK
GROUPS AUTHORITY &1`ORG CHARTS INFORMATION FLOWS PROCEDURES
& RULESMANAGERIAL SUBSYSTEM
GOAL SETTING PLANNING ASSEMBLING RESOURCE ORGANISING
IMPLEMENTATION
-
PSYCHOSOCIAL SUBSYSTEM*INDIVIDUAL AND THEIR RELATIONSHIPS ARE
THE PRIMARY ELEMENTS OF THIS SUBSYSTEM.
PSYCHOSOCIAL SYSTEMS CAN BE UNDERSTOOD INTERMS OF MOTIVATION AND
BAHAVIOUR OCCURRING IN AN ENVIRONMENT WHICH INCLUDES
-
*STATUS & ROLE SYSTEMS SERVE TO STRUCTURE SOCIAL
RELATIONSHIPS AND PROVIDE A FRAMEWORK WHERE GP ENDEAVOR CAN BE
COORD TOWARDS OBJECTIVESS. ROLE SYSTEMS ARE INTEGRALLY RELATED WITH
STATUS SYSTEM.
STATUS CONCERNS THE RELATIVE PRESTIGE OF A POSITION IN A
STRUCTURAL RELATIONSHIP WITHIN ORGANISATIONS.
ROLE RELATES TO THE BEHAVIORAL PATTERNS IDENT FOR A GIVEN
POSN.
-
PSYCHOSOCIAL SUBSYSTEM*GROUP DYNAMICS
SMALL GPS PROVIDE A MEDIATING MECHANISM BETWEEN INDLS AND
ORGS.ACTIVITIES, INTER ACTION AND SENTIMENTS PLAY AN IMP PART IN
ORG BEHAVIOUR.INDLS HIGH LEVEL NEEDS (SOCIAL ESTEEM AND SELF
ACTUALISATION) ARE SATISFIEDVIA HIS POSITION IN A SMALL GP OR A
LARGE ORG. COMMUNICATION IS THE BASIS OF GROUP DYNAMICS.
-
PSYCHOSOCIAL SUBSYSTEM*
INFLUENCE SYSTEMS
INCLUDES VIRTUALLY ANY INTERPERSONAL TRANSACTION WHICH HAS
PSYCHOLOGICAL OR BEHAVIORAL EFFECTS. EXERTED IN MANY DIRECTIONS -
UP AND DOWN THE HIERARCHY AND LATERALLY IN PEER GROUP
RELATIONSHIPS. CHANGES IN BEHAVIOR OF A PERS/GROUP DUE TO
ANTICIPATION OF THE RESPONSE OF OTHERS RELATIONSHIPS AMONG
PEOPLE.
WAYS TO INFLUENCE BEHAVIOUR - EMULATION ,SUGGESTION PERSUASION,
COERCION.
-
PSYCHOSOCIAL SUBSYSTEM*
LEADERSHIPABILITY TO PERSUADE TO SEEK DEFINED OBJECTIVES
ENTHUSIASTICALLY .BINDS A GROUP TOGETHER AND MOTIVATES IT TOWARDS
GOALS.
TAPPING OF LATENT HUMAN CAPABILITY IN ACHIEVING GROUP
OBJECTIVES.
MGMT ACTIVITIES SUCH AS PLG ORG AND DM ARE DORMANT COCOONS UNTIL
THE LEADER TRIGGER THE POWER OF MOTIVATION IN PEOPLE AND GUIDES
THEM TOWARDS GOALS.
-
PSYCHOSOCIAL SUBSYSTEM*
HR ATTITUDES.
NORMS, VALUES AND CULTURE OF THE ORG MAKE UP THIS SUB
SYSTEM.INCLUDES SOCIAL RELATIONSHIPS AND COMMON NETWORK.
-
*HOW PEOPLE COMMUNICATE AND ACTUALLYDO THE WORK, STRONGLY
INFLUENCES THE ORG THROUGH THE PSYCHOSOCIAL SUBSYSTEM.TAVISTOCK
EXPERIMENTS PROBLEM WAS WORKERS HAD PROBLEM COMMUNICATING WITH
MANAGEMENT.
WHEN A PERSON ENTERS OR LEAVES THE ORG THE PSYCHOSOCIAL SYSTEM
CHANGES.
-
FACTORS AFFECTING HUMAN BEHAVIOUR*
PAST EXPERIENCEWORK SITUATION(TASK &TECHNOLOGY)CULTURE
(NORMS )GROUP RELATIONDHIPSMANAGERIAL SYSTEM(PLG & CONT
DECISIONS LEADERSHIP)REWARD SYSTEMECONOMIC,INCENTIVESCURRENT
PERSONAL SITUATIONPERCEPTIONCOGNITIONMOTIVATIONPERSONAL VALUE
SYSTEM(ATTITUDES ,PROPENSITIES TO ACT)
-
ORGANISATIONAL SYSTEM* . ENVIRONMENTAL SYSTEMGOALS &VALUES
SUBSYSTEM
CULTURE PHILOSPHY OVERALL GOALS INDIVIDUAL GOALSPSYCHOSOCIAL
SUBSYSTEM
HR ATTITUDES MOTIVATION GP DYNAMICS LEADERSHIP INFLUENCE
SYSTEMSTECHNICAL SUBSYSTEM
TASK REQUIREMENT KNOWLEDGE TECHNIQUES LAYOUT OF FACILITIES MACHY
EQUIPMENT INFORMATION STRUCTURAL SUBSYSTEM TASKS WORK FLOWS WORK
GROUPS AUTHORITY INFORMATION FLOWS PROCEDURES & RULESMANAGERIAL
SUBSYSTEM
GOAL SETTING PLANNING ASSEMBLING RESOURCE ORGANISING
IMPLEMENTATION
-
MANAGERIAL SUBSYSTEM*
MGMT PROCESS OF INTEGRATING HUMAN AND MATERIAL RESOURCES INTO A
TOTAL SYSTEM FOR OBJECTIVE ACCOMPLISHMENT.LINKS OTHER PRIMARY
SUBSYSTEMS OF ORGS.INTEGRATES ACTIVITIES TOWARDS ACHIEVEMENT OF
EXPLICIT/IMPLICIT GOALS.
-
*PLG & CONT ARE THE PRIMARY ACTIVITIESINVOLVED IN
INTEGRATING PURPOSEFUL ORG ACTIVITY.PLG & CONTROL HAVE TO
CONSIDERTHE IMPACT OF EXTERNAL ENVIRONMENTAL SYSTEM AND THE
INTERNAL TECHNICAL AND PSYCHOSOCIAL SYSTEM.
BEHAVIOUR IS GOAL ORIENTED AND HUMAN BEINGS MOVE TOWARDS GOALS
BY CHOOSING AN ALTERNATIVE.BEHAVIOUR IS A RESULT OF SEQUENCE OF
DM.
-
ORGANISATIONAL SYSTEM* . ENVIRONMENTAL SYSTEMGOALS &VALUES
SUBSYSTEM
CULTURE PHILOSPHY OVERALL GOALS INDIVIDUAL GOALSPSYCHOSOCIAL
SUBSYSTEM
HR ATTITUDES MOTIVATION GP DYNAMICS LEADERSHIP INFLUENCE
SYSTEMSTECHNICAL SUBSYSTEM
TASK REQUIREMENT KNOWLEDGE TECHNIQUES LAYOUT OF FACILITIES MACHY
EQUIPMENT INFORMATION STRUCTURAL SUBSYSTEM TASKS WORK FLOWS WORK
GROUPS AUTHORITY INFORMATION FLOWS PROCEDURES & RULESMANAGERIAL
SUBSYSTEM
GOAL SETTING PLANNING ASSEMBLING RESOURCE ORGANISING
IMPLEMENTATION
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GOALS AND VALUE SUBSYSTEM*
BASIC VALUES WHICH UNDERLIE GOAL SETTING AND DM ARE A
FUNDAMENTAL PART OF THE ORG SYSTEM.NORMATIVE VIEWS OF WHAT IS GOOD
AND DESIRABLE.PROVIDE STANDARDS WHICH INFLUENCES CHOICE OF
ACTIONS.
SOCIAL VALUES REFLECT A SYSTEM.
CULTURAL VALUES PROVIDE COHESIVENESS
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*FIVE LEVELS.INDIVIDUAL VALUES.GROUP VALUES AFFECT INDL
BEHAVIOUR AND ACTIONS OF ORG.
ORGANIZATIONAL VALUES. VALUES OF CONSTITUENTS CUSTOMERS,
COMPETITORS OF ENVIRONMENT AND GOVT AGENCIES. CULTURAL VALUES
VALUES OF THE TOTAL SOCIETY.
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GOALS AND VALUE SUBSYSTEM*
THREE PRIMARY PERSPECTIVES. ENVIRONMENTAL LEVEL THE SOCIAL
GOALSIMPOSED ON THE ORG.ORGANISATIONAL LEVEL SYSTEM GOALS.
INDIVIDUAL LEVEL PARTICIPANTS GOALS.
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* GOALS - INFLUENCE THE INTERACTIONS WITH ENVIRONMENTAL
SUPRASYSTEM AND THE OTHER SYSTEMS.
FOCUS THE ATTENTION OF PARTICIPANTS UPON ACTIONS WHICH ARE
ORGANIZATIONALLY RELEVANT.
HELP DETERMINE THE TECHNOLOGY REQD.SET BASIS FOR SPECIALISATION
OF EFFORT, AUTHORITY PATTERNS , COMMUNICATION AND DECISION NETWORKS
AND OTHER STRUCTURAL RELATIONSHIPS.
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GOALS AND VALUE SUBSYSTEM*INFLUENCES ON GOALSPERSONALITY OF TOP
EXECUTIVES.HISTORY OF THE ORG.
COMMUNITY ENVIRONMENT.NORMS ON VALUES WITH WHICH THE ORG
DEALS.STRUCTURE. CULTURAL SAFETY
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*RESPONDING TO ENVIRONMENT LEADS TO A CONTINUOUS NEED TO
ELABORATE THE GOAL SET OF THE ORG AND IS INFLUENCED BY INTERACTION
COMPETITION , BARGAINING, CO-OPTATION AND COALITION.SYSTEM
GOALSSELF PERPETUATION , STABILITY OF OP, HIGHRATE OF RETURN,
GROWTH , SATISFACTION OF PARTICIPANTS , TECH LEADERSHIP AND
INNOVATION.
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SUPRASUBSYSTEM*
EVERY ORG HAS IDENTIFIABLE BUT PERMEABLEBOUNDARIES WHICH
SEPARATE THEM FROM THEIR ENVIRONMENT.THEY RECEIVE INPUTS ACROSS
THESE BOUNDARIES, TRANSFORM THEM AND RETURN OUTPUTS. BOUNDARIES
PROVIDE A DEGREE OF AUTONOMY AND INDEPENDENCE FOR ORG FROM EXTERNAL
INFLUENCES. SELECTIVELY OPEN TO INPUTS, TRANSFORMATIONS AND
OUTPUT
ACTS AS A FILTER..
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*ORG DO NOT HAVE ANY PRECISE PHYSICAL BOUNDARIES.ACTIVITIES
NECESSARY FOR ORG TRANSFORMATION PROCESS DEFINE ITS BDY RATHER THAN
THE PHYSICAL STRUCTURES.
BASICALLY STANDARDISES THE INPUTS AND OUTPUTS TO THE VARIOUS OP
SUBSYSTEMS I.E. STRATEGIC AND CO-COORDINATIVE SUB SYSTEMS BUFFER
THE OP SUB SYSTEMS OF THE ORG FROM ENVIRONMENTAL
INFLUENCES.HETEROGENEOUS AND DYNAMIC ENVIRONMENTS LEAD TO COMPLEX
AND DIFFERENTIATED THE THE INTERNAL STRUCTURING OF THE ORG .
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AUTONOMOUS WORKGROUPS*
SOCIO TECH THEORY.WORKERS ARE LIKELY TO BE PRODUCTIVE AND
SATISFIED WHEN THEIR SOCIAL NEEDS ARE MET.TAVISTOCK RESEARCHES
CONCEPT OF AUTONOMOUS WORK GROUPS.WORKERS WORK AS A TEAM TO
COMPLETE AN ENTIRE TASK VIS A VIS WORKERS PERFORMING A PARTICULAR
CHORE ALONG AN ASSY LIVE.
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*TWO APPROACHES.TEAM BUILDINGMATRIX ORG COMPROMISE BETWEEN STAFF
AND COMPLETE
AUTHORITY.- VERTICAL FLOW OF AUTHORITY FROM VARIOUS FM MANAGERS.
- HORIZONTAL FLOW OF PROJECT AUTH.
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AUTONOMOUS WORKGROUPS*
CHANGES IN EACH SYSTEM AFFECTS THE OTHER SYSTEMS FOR eg THE
PROBLEM OF RETAINING WORKERS.
MGMT SUBSYSTEM MGMT OF WORKERS.
TECHNICAL SUB SYSTEM - AVAILABILITYOF TOOLS AND RESOURCES.PSYCHO
SOCIAL SUB SYSTEM --- INTER PERSONNEL RELATIONSHIPS.
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UNCERTAINITY*
BURNS AND STALKER SUGGESTED TWO FACTORS DETERMINANT OF ORG
STRUCTURE AND PERFORMANCE - RATE OF CHANGE AND THE LEVEL OF
UNCERTAINITY IN THE ENVIRONMENT.TWO TYPES OF SYSTEMS
RECOMMENDED.
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*LAWRENCE AND LORSCH
SPECIALISED SYSTEM DEVELOP IN RESPONSE TODIFFERENT ASPECTS OF
THE ORGANISATION ENVIRONMENT.
PRODUCTION DEPATRMENTS WHICH HAD STABLE ENVIRONMENTAL CONDITIONS
TEND TO BE MORE BUREACRATIC THAN RESEARCH DEPARTMENT.
HIGH LEVEL OF DIFFERENTIATION REQUIRED BY THE ENVIRONMENT LED TO
THE PROBLEM OF INTEGRATING THE DEPARTMENT.
THIS PROBLEM SOLVED BY SOME FIRMS EMPLOYING A GROUP OF MANAGERS
TO COORDINATE THE DIFFERENT DEPARTMENTS.
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AFFECT OF SIZE
*
RELATIONSHIP BETWEEN SIZE AND LEVEL OF BUREACRATISATIONORG SIZE
AND JOB SATISFACTION STUDY BY REVANS AND PORTER--- LARGER THE ORG
LOWER THE JOB SATISFACTION LEVEL ,HIGH LEVEL OF ABSENTEEISM AND
LABOUR TURNOVER.
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*
ORG SIZE AND UNIONISATION BAIN SUGGESTS A STRONG POSITIVE
CORRELATION BETWEEN ORG SIZE AND WHITE COLLAR UNIONISATION.
ORG SIZE AND STRIKE PRONENESS
RESEARCH BY DOE AND PRAIS SUGGEST LARGER THE FACTORY GREATER
THE
FREQUENCY OF STRIKES.
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Contingency Theory as a Model of Change Systems thinking
approach adopted by Lawrence and Lorsch Studied the characteristics
of organizations and their environment. Believed that determining
the best structure and leadership for an organization is contingent
on the relation of the organization to its environment.
The systems that constitute the organizations are affected by
boundaries and by a process called differentiation &
integration.*
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*
Boundaries: The boundary between an open system and its
environment is permeable; similar to cells in human body. Sales
people going out in the market to sell. Resource mobilization like
physical goods and human resource from environment. The problems in
an organization first becomes visible at the boundaries. Drop in
sales and complaints from customer a sign of organizations
unresponsiveness towards customers needs Organizations must be
attuned and responsive to environmental changes that occur at the
boundary.
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Contingency Theory as a Model of Change
..Contd..Integration:
Specialized groups / units for tasks
Independent style of interaction with the organization
Different impact of their behavior on organization
Need for coordination between units to achieve organizations
overall goals
*
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* The effective coordination between units is called Integration
Need for appropriate structure such as bureaucratic or matrix Need
for appropriate leadership
Differentiation:The organizational units vary on following four
dimensions: Formality of structure Goal Orientation Time
Orientation Interpersonal Orientation
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Formal and Informal Systems
Deals with: The formal policies and procedures of the
organization. The informal ways in which organizational members
work together.
Two theories have been put forward by: Marvin Weisbords The Six
box model Formal Systems The organizational fit Formal and Informal
Interactions Nadler & Tushmans Congruence Model - Formal and
Informal Interactions*
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The 6 Box ModelPurposes:What business are we in?Agreement on
goals in missionsRelationships:How do we manage conflict among
people with technologies? How do workers get alongStructure:How do
we assign the work and how it gets done?Helpful mechanisms:Have we
adequate coordinating technologies? Like budgeting, planning &
control, and management informationRewards:Do all needed tasks have
incentives?Leadership:Does some one keep the boxes in balance?*
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Organizational Fit
How the organization fits within its environment Compatibility
with customers, government, union
How the individual fits with in the organization Compatibility
of individuals personal values, political orientation, hobbies,
style of dress with other organizational members*
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The Congruence Model
Organization draws inputs from environment in the following form
Capital, raw material, technology and people Organization history
Pattern of employee behavior Organizational policies and procedures
Managements method for decision making The model takes into account
the inputs and resulting output after transformation*
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* The transformation process includes four components: Task job
and their inherent characteristics Informal organizational
structure social structure among organizational members including
informal communication, politics and authority structure Individual
personal characteristics of employee such as age, sex, education
Formal organizational arrangements documented managerial and
operational structure, the pay system, the management information
system Outputs are the outcomes for the organization, the work
group and the individual.
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A Change Based Organizational Framework
According to Porras and Robertson model, the factors in the
internal organizational environment that shape and guide the
behavior of workers fit into four categories: Organizing
arrangements the formal elements that coordinate the behavior of
people and groups in an organization Goals & Strategies
Structure & administrative policies and procedures
Administrative system & reward system Ownership*
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* Social factors characteristics of the people in the
organization and their relations The culture, management style,
interaction process, informal patterns & networks and
individual attributes Physical settings The building and locations
Technology Equipments, IT, job design, work flow design, technical
expertise & procedures and technical systems
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Thank You*
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