Module 1.2B: OD & Growth: HR's Role Flashcards
What is Organizational Development (OD)?
A systematic process for effecting change within an organization.
What are the 5 distinct aspects of OD?
- Organizational development is planned.
Data is collected, analyzed in current and desired situation, and action steps are determined and executed. Outcomes are evaluated. - Organizational development applies to the entire organization. Impacts every level of an organization in every department.
- Organizational development begins at the top.
Organization’s executives, leadership, and management are not on board with the OD effort, it will not be successful.
- Organizational development aims to increase overall health and effectiveness of the organization.
Measurable outcomes should be clearly tied to the efficacy of an organization’s service, product or people.
- Organizational development action steps are informed by behavioral science.
It is essential to anticipate reactions to intervention to predict and direct OD outcomes.
What are Divestitures?
A form of organizational restructuring where a large organization sells off or otherwise disposes of subsidiaries, business units, or other investments.
Can be done when mergers resulted in redundancies or
when business units no longer align with organizational values, or as a result of poor profitability.
What is Downsizing?
The most well-known form organizational restructuring, downsizing refers to the constriction of an organization through the elimination of staff positions.
May be accomplished through early retirement buyouts or layoffs.
What is Outsourcing?
Outsourcing and offshoring involve reducing in-house staffing and hiring a third party to fulfill the same functions.
Outsourcing involves transferring the fulfillment of specific services to an organization with that expertise. Ex) Bookkeeping, Payroll, IT.
What is Offshoring?
Offshoring specifically refers to the practices of moving production and/or manufacturing outside of the U.S., usually as a cost-saving initiative.
What is a Service Consolidation?
Aka shared services, the consolidation of administrative services into a central hub is done to eliminate redundancies. It lowers organizational overhead through cost sharing.
Common shared services include IT, accounting, and HR.
What is a Organizational Restricting?
A common organizational development intervention that involves altering the fundamental structure of an organization.
Restructuring may occur to meet the demands of organizational growth
What are the common forms of organizational restructuring?
- Contract Manufacturing
- Global Expansion
- Mergers & Acquisitions
What is Contract Manufacturing?
Private label manufacturing, occurs when an organization produces goods which are then sold under the brand or label of another organization.
What is Global Expansion?
Organizational structure is immediately affected by entrance into a new global market.
Influencing factors include:
organization’s existing international presence,
cross-border coordination needed, political and socio-economic influences, and complexity of existing structure, goods, and services.
What are Mergers & Acquisitions?
When two organizations combine, either through merger or acquisition, restructuring must occur to streamline processes and remove redundancies.
An acquisition occurs when one organization gains control over another.
Aetna’s sale of their Medicare prescription drug plan when they combined with CVS Health in 2015 is an example of:
Divestiture
Organizational development is all of the following except:
Employee-driven
What is an Organizational Culture?
The values and behaviors that make up the unique environment of an organization.