Chapter 16 - Organizational Structure and Change

Question 1

what is organizational design

Answer 1

process of setting up organizational structures to address the needs of an organization

Question 2

organizational development

Answer 2

label for a field that specializes in change management

OD specialists draw on social science to guide change processes that simultaneously help a business achieve its objectives while generating employee well-being

Question 3

two types of organizations and what they are

Answer 3

1. formal
   = officially defined set of relationships, responsibilities, and connections that exist across on organization
2. informal
   = invisible network of interpersonal relationships that shape how people actually connect and carry out their activities
   = emergent –> evolve over time

Question 4

central assumption of the bureaucratic model

Answer 4

developed by Max Weber

= organizations will find efficiencies when they divide the duties of labor, allow people to specialize, and create structure for coordinated efforts (hierarchy)

Question 5

five elements of bureaucracy

Answer 5

1. specialization
2. common and control
3. span of control
4. centralization
5. formalization

Question 6

specialization (bureaucracy element)

Answer 6

degree to which people are organized into specialization subunits

Question 7

command and control element of bureaucracy

Answer 7

the way in which people report to one another or connect to coordinate their efforts in accomplishing work

Question 8

span of control element of bureaucracy

Answer 8

scope of work that any one person in the organization is responsible for

Question 9

centralization element of bureaucracy

Answer 9

how to manage the flow of resources and information in an organization

highly centralized org = concentrates resources in only one or few locations/ individuals

Question 10

formalization element of bureaucracy

Answer 10

degree of definition in the roles that exist throughout an organization

Question 11

mechanistic bureaucratic structure

Answer 11

strongly hierarchical (usually very vertical)
generates high degree of standardization and control

Question 12

organic bureaucratic structure

Answer 12

relies on ability of people to self-organize and make decisions without much self direction so that they can adapt to change quickly

common to see horizontal structure (fewer levels of hierarchy)

Question 13

2 different functional structures for organizations

Answer 13

1. product structures (subunits organized based on product)
2. graphic structures (subunits organized geographically)

Question 14

disadvantages of bureaucratic structure

Answer 14

• people can become so focused on their own part of the organization they fail to understand or connect with broader org activities
• can alienate workers from one another

Question 15

what is the matrix structure and how does it help overcome the negative effects of the bureaucratic struture?

Answer 15

• sets up multiple reporting lines of authority
  –> employees report to multiple lines to keep them woke

Question 16

3 types of organizational change

Answer 16

1. structural change (change in formal relationships)
2. technological change (implement new tech)
3. culture change (most difficult change to create, involve reshaping/ reimaging core identity of organization)

Question 17

4 stages of the organizational life cycle

Answer 17

1. entrepreneurship
2. survival and early success
3. sustained success
4. renewal or decline

Question 18

explain the life cycle of an organizaiton

Answer 18

1. org starts small and fragile
2. begins to scale up and find success
3. expands and hierarchy deepens, tension may emerge over how to find balance in the org structure
4. expansion to the point where operations far-flung and need to operate somewhat autonomously, tensions between mechanistic or organic inclinations may be out of balance

Question 19

3 dimensions of change

Answer 19

1. scope of change
2. level of change
3. intentionality

Question 20

3 scopes of change

Answer 20

incremental change
- small refinements in current practices
- do not challenge, but build on

transformational change
- significant shifts in system that may cause significant disruption to underlying aspect(s) of org, structure, processes, etc.
- can be invigorating or stressful

strategic change
- either incremental or transformational
- necessary to stay competitive in current market or organization

Question 21

examples of methods of incremental change

Answer 21

six sigma
LEAN

Question 22

different levels of change

Answer 22

• individual level
• group level
• organization level

–> higher level change often impact change on lower levels

Question 23

two aspect of intentionality

Answer 23

• planned change
  
  • intentional activity to create movement towards a
    specific goal or end
• unplanned change
  - result of informal organizing
  - may or may not serve aims of whole organization
  - may be completely spontaneous or occur as a
  byproduct of planned change process

Question 24

important questions to ask as a manager figured out which model of change to use

Answer 24

1. is the organization in a state of deficiency or is it highly functioning (is there a problem)?
   - deficit-based or abundance-based change
2. assumptions about how to create change?
   - top-down change or bottom-up
   - rule of thumb: more complex = greater need to involve employees in planning
3. what are our fundamental beliefs about people and change?
   - conventional mindset or positive/ appreciative mindset

Question 25

deficit-based change

Answer 25

change that comes from perception that an organization may be in some state of dysfunction

may require transformational change

Question 26

abundance-based change

Answer 26

change that comes from perception that organization is highly functional

leaders assume employees will change if they can be inspired to greatness

Question 27

top-down change

Answer 27

rely on mechanistic assumptions about the nature of an organization

relatively small group in organization design process and instruct others how change will unfold

formal org must drive the legitimacy of the change

Question 28

emergent or bottom-up change

Answer 28

relies on belief that employees will be more invested in change if they play some role in designing it

“participatory management”

Question 29

conventional mindset about people/ change

Answer 29

leaders assume most inclined to resist change and need to be managed in a way that encourages them to accept change

sees people as objects/ obstacles that need to be overcome

Question 30

positive or appreciative mindset about people/ change

Answer 30

leaders assume that people are inclined to embrace change when they are respected as individuals

employees seen as partners or champions of change

Question 31

4 common change models and the two categories

Answer 31

models that rely on mechanisms of formal organizations
1. Lewin’s Model
2. Kotter’s Model

models that are designed to promote informal organizing and emergent change
3. Cooperrider’s Appreciative Inquiry Model
4. Olson and Eoyang’s Complex Adaptive System Model

Question 32

Lewin’s Change Model - 3 steps

Answer 32

organizational change happens in three phases
1. unfreeze –> existing customs interrupted
2. move –> changes introduced
3. refreeze –> reinforce the new customs and practices

==> most people like a stable, predictable organization, so common routines need to be disrupted
==> stability gives way to instability

top-down or bottom-up approaches
deficit-based or abundance-based

Question 33

Kotter’s Change Model - 8 steps

Answer 33

8 steps
1. managers establish sense of urgency
2. managers form powerful coalition
3. coalition creates vision of change
4. managers communicate vision
5. managers remove obstacles to reduce resistance
6. managers create small wins to encourage change
7. managers consolidate improvement
8. managers anchor changes as new norm

challenge = employees may resist if they had no say in shaping the plan, especially if urgency isn’t understood

generally aligned with mechanistic structure
top-down process
(tends to be used when leaders hold deficit-view and are generally inclined to go top-down)

Question 34

what is one of the most widely used change models?

Answer 34

Kotter’s

Question 35

Appreciative Inquiry (Cooperrider/ Eoyang) - 5 stages

Answer 35

broadly defined = can be question-focused, participatory approach to change

5 stage
1. define (objective for change)
2. discover (look for ideal existing change)
3. dream (explore ideas of change)
4. design (decide change)
5. destiny (implement change)

explicitly designed as a positive, abundance-based and bottom-up approach

Question 36

Complex Adaptive Systems - 3 considerations

Answer 36

process of having conversations expands the social capital of the organization, or the ability of the people to work effectively together

builds on assumption that all organizations are complex adaptive systems (CAS) –> relies on people’s ability to self-manage and adjust based on local circumstances

things to consider with this method
1. to what degree do people feel empowered to act as change agents?

2. how connected are people to one another in the organization?
3. what extent are flow of information and energy passing through the connections that exist between people? (formal/ informal feedback loops)

ways in which self-organizing structures can be altered:

1. boundary conditions
   = establishes the limits for emergent activity
   = more undefined boundaries = more self-organizing
2. introduction of disturbances to system
   = example: helping employee learn about tension that can exist around self-organizing
   = ex: nearly always significant differences in perspective among subunits –> help them have convos with other subunits (intro positive disturbance)
3. pay attention to flows and connections that exist among employees
   = need to create healthy connections!

Question 37

are the models of change mutually exclusive?

Answer 37

no. many can be used together

Kotter’s = can be seen as an overall framework for designing a long-term change process

appreciative inquiry model can be used in certain parts of Kotter’s process
= example: creation of a guiding coalition or creating a vision for change

Question 38

different types of CAS approaches

Answer 38

open space
whole systems change
future search