Organizational Structure and Organizational Change PPT #12 Final Flashcards
Differentiation and Integration
Differentiation:
* Developing specialized units/teams in order to meet organizational needs and appropriately respond to various environmental demands
Integration:
* Coordinating across the different units of the organization
As differentiation increases so does integration
Basic Structural Dimensions
Centralization: The degree to which decision-making authority is concentrated at higher levels (A,B,C report to HQ)
Formalization: The extent to which policies, procedures, job descriptions, and rules are codified (Southwest is LOW in formalization)_
Hierarchy: The layers between frontline employees and top management
- Flat: Wide span of control; 1 manager to many employees
- Hierachal: Narrow span of control; 1 manager to few employees
Departmentalization: The extent to which specialized functions are grouped together (using some form of functional structure) (Functional, Divisional, Matrix)
John Kotter’s Change Model
His change model has eight stages:
1. Create urgency
2. Build a coalition
3. Create a vision/make change a part of that vision
4. Communicate a plan for change
5. Remove obstacles
6. Create/celebrate small wins
7. Build on change
8. Make change a part of the culture
Kotter 1 – Create Urgency
1 – Create Urgency:
Clearly communicate the importance of the change (“make or break opportunity”) while energizing people to become involved in creating the change
* Whenever possible, don’t just tell people why they need to change. Instead, help them see for themselves that change is needed.
Kotter 2 – Build a Coalition
2 – Build a Coalition
Not just one or two change agents, but a network
* Volunteers from across the organization who will collectively map out and drive the change
* Aim for diversity in information, connections, and skills
Kotter 3 – Create a Vision
3 – Create a Vision
…and strategic initiatives that flow logically from that vision
* Serves as a guide and empowers people to take action
* Should be pragmatic (offers clear goals), but also emotionally compelling
* Executives must be on board with the vision, but so must employees
Kotter 4 – Communicate a Plan for Change
4 – Communicate a Plan for Change
* …In a way that will mobilize and empower others from throughout the organization
Kotter 5 – Remove Obstacles
5 – Remove Obstacles
(AKA, “enable action by removing barriers”)
Examples of barriers:
* Systems and processes that no longer serve the organization
* Bureaucratic red tape; rules and regulations that create barriers
* Unnecessary hierarchies
Kotter 6 – Create (and Celebrate) Small Wins
6 – Create (and Celebrate) Small Wins
* Achievements or milestones along the way that keep the momentum flowing
- Should be visible, unambiguous…and celebrated!
Kotter 7 – Build on Change
7 – Build on Change
(AKA, “sustain acceleration”)
Constantly pushing forward, learning from implementation process, and continuing to watch for barriers
- Resist the temptation to declare victory too soon
- When momentum stalls, resistance and old habits likely to set in
Kotter 8 – Make Change a Part of Organizational Culture
8 – Make Change a Part of Organizational Culture
* Cementing the change by making sure that people continue to see progress and understand the strategic importance of that progress
- Shift in values/culture to align with change (where applicable)
Kurt Lewin Change Model
Unfreezing: Prepare (disrupt old habits) for the change by creating a vision, motivating people, and developing political support
Change: Implement the desired change
Refreezing: Solidify and adopt the change
Resistance to Change
Sources of Resistance:
* Disrupted habits; work rythm is taken away
* Personality; individual differences afect change
* Feelings of uncertainty; change creates uncertainty
* Fear of failure; tisk of not succeeding increases
* Personal impact/changes to job; job roles and task change
* History of frequent changes; Past change creates change fatigue
* Disruption of interpersonal relationships; Might not work with same members
* Perceived loss of power; Reduced control or influence
Departmentalization: Functional vs. Divisional grouping vs. Matrix
Functional: Each Unit works within their respective teams (department is formed around specific function; HR team has only HR people)
Divisional Grouping: A team that is more cross disciplinary, they have all the departments within each team as opposed to having the same people in each team (Team like Product Team, has 1 HR person, 1 Sales person, 1 Manager etc.)
Matrix: Combines functional and divisional structures, where employees report to both functional managers and project or product managers. (Employee reports to 2 people; a functional manager and a divisional manager)
Mechanistic
High in:
* Formalization; Rules and procedures are used a lto
* Centralization; Top managment holds authority/decision making
* Functional specialization; specific teams with specific people (HR, IT, Etc.)
* Hierarchy; Chain of command
Match to Enivronment: Stable; If you know what to expect you know how to better use your time
Match to Strategy: Maximize efficiency/minimize costs; You are better able to find the bottle neck as there is a specific system in place.
