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1. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT UNIT I ORGANIZATIONAL DESIGN Organizational Design Determinants & Components Basic Challenges of design – Differentiation, Integration, Centralization, Decentralization, Standardization, Mutual adjustment -Mechanistic and Organic Structures Technological and Environmental Impacts on Design-Importance of Design – Success and Failures in design. https://archive.nptel.ac.in/courses/110/105/110105164/

2. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Organization is a tool people use to coordinate their actions to obtain something they desire or value—that is, to achieve their goals. People. Organizational design There is no one best method, and there are no right or wrong types of organizational design. Instead, each organization must determine what works best for them. As a result, you may find some elements of every design structure in a single organization . An organization’s behavior is the result of its design and the principles behind its operation.

3. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Nature of the Objectives Operative Activities Technology Sequence of Tasks Limitations of Skill and Working Capacity Managerial Functions  Size and Scope Strategy Social Needs Determinants of Organization  

4. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Functional Design structure Divisional Design structure Matrix Design structure Team Design structure Network Design structure Hierarchical Design structure Flat organization Design structure

5. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Functional Design structure A functional structure groups employees into different departments by work specialization. Each department has a designated leader highly experienced in the job functions of each employee supervised by them.

6. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT pros of a functional organizational Design structure: Scalable. Operational efficiency. Encourages employees to specialize their skillsets . Empower employees to focus on their specific roles and responsibilities. Empowers teams and departments with clear, specific goals that they can work towards. 

7. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT cons of a functional org structure: Leads to poor cross-department communication. Builds silos. Creates difficult to understand roles, processes, and workflows

8. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT In a divisional organizational structure, the company is divided into different business units that have complete control of their budget, resources, and strategy – essentially acting as an independent company. Each division can have its own dedicated marketing, sales, product, and IT teams. Divisional organizational

9. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Divisional organizational

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12. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Market-based divisional org structure:   Divisional organizational structures can be divided by market or customer type. For example, Walmart could separate its its internal business units by department and have separate entities that own children’s toys, clothing, electronics, food and beverage, etc Industry-based divisional org structure:   Business units can by divided by the industry or use case they target. Consider Salesforce. It packages it Sales Cloud product to verticals based on sector, like Education Cloud, Nonprofit Cloud, Health Cloud, etc.

13. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Product-based divisional org structure: For example, Google has entire organizations that focus only on AdSense , YouTube, YouTube TV, Google Search, Google Maps, and so forth. Salesforce has entire division dedicated to Sales Cloud, Slack, Salesforce Territory-based divisional org structure:   This can be divided into regions (like north, west, south, midwest , etc.), a country’s states or provinces, by country, or by continent .

14. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Pros of a divisional organizational structure: Understand individual markets, sectors, and products better. Promotes flexibility. Faster responses to changes or needs that are locality or regional-based. Autonomous approaches lead to team experimentation and allow organizations to test multiple strategies, driving innovation

15. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Cons of a divisional structure: Can result in duplication efforts like multiple applications that do the same thing. Teams and data with poor knowledge transfer. Poor documentation. Lack of organizational communication. Departments compete against one another. Lack of hierarchy understanding

16. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Matrix organization

17. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Matrix organization An organization may have one or more cross-functional teams that form for special projects. An individual may work for a department manager and on a project led by a project manager. When the project ends, the individual goes back to the department or takes on another project. Many types of companies, such as engineers and construction firms, operate almost entirely on this model of matrix structure.

18. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Advantages Allows project managers to choose individuals by the needs of a project. Encourages employees to use their skills in various capacities aside from their original roles It makes the organization more dynamic and malleable. Disadvantages Conflicting needs can create friction between department managers and project managers.

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20. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Team-based organization A particular type of team structure is the learning organization, which has developed to learn continuously, adapt, and change. Such an organization gives its people the freedom to adapt to customer needs as they arise. It requires a strong culture and commitment to common goals. . These teams can solve problems and make decisions without bringing in third parties. Team members are responsible for managing their workload and have full control over the project. Team-based organizations are distinguished by little formalization and high flexibility. This structure works well for global organizations and manufacturers.

21. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Advantages Organizations that are innovative and knowledgeable through learning create a significant advantage over their competitors. Disadvantage The organization must have knowledgeable employees willing to share their knowledge and apply it. It requires team design and excellent leadership

22. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Pros of a team-based organizational structure: Drives growth and innovation. Promotes lateral career moves.  Provides experiences across departments and teams. Experience is valued over seniority. Less emphasis on management. Encourages lateral moves. Is more agile and fits well with Scrum models. Cons of a team-based structure : No clear authority. Career path growth is not clear. Not formalized

23. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Network structure

24. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT A network structure goes far beyond your internal company structure. It’s the act of joining the efforts of two or more organizations to deliver one product or service. Typically, a network organization outsources independent contractors or vendors to complete the work. Companies that outsource business functions and rely on external partners, like businesses with extensive supply chains and franchises, or companies that focus on core competencies while leveraging partnerships for other operations.

25. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Pros of a network structure: Promotes organizational agility and flexibility. Fosters collaboration across employees. Breaks down silos. Cultivates better understanding of industry, products, and customers. Creates a web of work-related relationships. Creates highly specialized skills in employees.

26. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Cons of a network structure: Extremely complex and convoluted. Lower formalization. High turnover. There is a feeling of inequality between full-time employees and contractors/freelancers. It’s difficult to know who has final approval .

27. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT A hierarchical structure is the most common type of organizational structure. This pyramid-shaped structure follows a direct chain of command from the top (the CEO) and flows down the org chart through individual teams and entry-level employees. hierarchical Design structure

28. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT MICRO companies or hotel and startups that require faster decision-making and a collaborative culture, accelerating innovation and flexibility. Flat organization structure

29. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Pros of a flat structure: More responsibility for employees. Open communication. Clear path of approval. Change and improvement implementation happen fast. Rewards adaptability, flexibility, and innovation. Cons of a flat structure: Not scalable. Often leads to confusion, as employees lack a clear supervisor or manager. Relies on one person to be the decision-maker. Leads to employees with generalized skills with a lack of specializations. Difficult to maintain when organizations start to scale .

30. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT What Is the Organizational Environment? The forces that surround an organization, and can affect organization performance and constitute, Its is known as an organizational environment . The forces have a potential effects on all parts (zone) of the organization. The environment may be categorized as General and specific

31. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT The Various in the environment may be categorized as General and specific

32. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Specific Environment The specific or the task environment comprises force that directly affected an organizations ability to Acquire resource. in order to survive and obtain resource, organization must forge relationships and engage in transactions with the various external stakeholders like, customers, competitors, vendors and suppliers dealers and distributors, union and the governments.

33. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT The various force that provide shape to the specific environment and affect the ability of the various organization in a specific environment to acquire resource constitute the General environment These force do not directly impact the daily operations of an organization but have an indirectly impact. General environment

34. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Economic forces: Type of economy whether developed, developing, or underdeveloped. Economic situation whether boom (or) recession the state of the economy. Interest rates all of these are economic factors that can affect organization performance. (GDP, GNP,FDI, and economic growth of rate.) 2. Technological force : The company operation are influenced by technology force like development in manufacturing technology improved production tools and techniques, advancement in information and communication technology (labor-technology- customer)

35. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT 3. Political forces: The government policy pertaining to the organization and their stakeholders are affected by political force. The political enveronmental affect the governments attitude towards industrialization, privatization and globalization 4. Demographic , culture and social forces: Age mix, gender mix, education and literary level socio-economic level, lifestyle , value, and norms, as well as other cultural elements of the people in country also affect organizational performance. 5. Legal Laws of the land , rules and regulations, and policies and procedures impact the manner in which organization function. Rules and regulation pertaining to employment wags and compensation, social security at affect overall cost.

36. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT 6. Competitive environment Organization performance also affects by the completive environment, market potential, power of vendors & suppliers as will as dealers and distributors. Organization must design their structure such that they fit with the environment. organization Environment Environment Organization Unfit structure fit structure

37. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Environmental uncertainty and source of uncertainty The various forces in an organization specific and general environment causes organization uncertainty. The extent to which the external domain is simple or complex and the extent to which events are stable or unstable are a determinant of uncertainty. Environmental complexity : Complexity may range from simple to complex (surround situation organization ..like numbers , strength.etc.) The greater the number, and the greater the differences between them, the more complex and uncertain is the environment and the more difficult to predict and control., example - Ford ,

38. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Environment dynamism : Dynamism may range from stable to unstable ( company resource, supply, capacity of production) Environment richness: Richness may range from poor to rich ( company located poor zone or rich zone dependent …performance.)

39. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Uncertainty The set of forces that cause these problems can be looked at in another way in terms of how they cause uncertainty because they affect the complexity, dynamism, and richness of the environment. As these forces cause the environment to become more complex, less stable, and poorer, the level of uncertainty increases.

40. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT 3. Organization will perform effectively of they learn to manage Uncertainty Emery and Trist (1965) Carried out a detailed investigation of the organization environment. They proposed that meaningful knowledge of an organization requires understanding of its environment, and they termed this as the causal texture of the environment. Emery and trist (1965) identified four different types of environment, ranging from extremely certain to extremely uncertain Placid Ordered Reaction Turbulent

41. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT According to emery and trist , there exist four ‘ ideal types” of causal textures of the environment . Placid randomized environment Placid clustered environment Distributed –reactive environment Turbulent environment . Placid randomized environment Goal/ resource retain relatively unchanged and are randomly distributed , there is no difference between tactics and strategies. Placid clustered environment Goal/ Resource are clustered unchanging and not randomly distributed strategies are required for survival and organizations are centrally organized and well-coordinated.

42. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Distributed- Reactive environment Similar organizations, co-exist and strategies are required to design organizational. Objective to meet challenges from competitors as also to acquire resource. Control is decentralized so as to adapt to environmental changes. Turbulent environments The most complex environment the overall field is an important force and introduces dynamism to the organization all actors are interlinked

43. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Duncan (1972) Introduced another framework that defines the environment as the totality of physical and social factors that are taken directly into consideration in decision making behaviors of individuals in the organization. According to him, the environment can be classified into internal and external . To analysis as to how perceived uncertainly influenced executive decision making, Duncan classified organization environments on the basis of two dimensions viz Simple- Complex and Static dynamic .

44. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Duncan (1972) Simplicity Defined as the extant to which factors that influence decision making in the internal and external environment are fewer in number and similar to one another and located in a few components. Dynamism: Defined as the extent to which factors considered during decision making, change, and the frequency with which new and different factors are considered

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46. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT

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48. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Basic Challenges of Organizational Design

49. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Differentiation The process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals. Division of labor The process of establishing and controlling the degree of specialization in the organization In a simple organization, differentiation is low because the division of labor is low Individuals typically perform all organizational tasks. In a complex organization, differentiation is high because the division of labor is high Differentiation is a set of processes that organizations use to deploy employees and assets ,

50. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Integration Babu and Aand , the owners, cook and wait tables as needed. They employ one additional waiter. (3 individuals in the organization).

51. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Babu and Anad work in the kitchen full-time . They hire waiters busboys, and kitchen staff. (22 individuals in the organization)

52. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Unable to manage both the kitchen and the dining room, they divide tasks Into two functions, kitchen and dining room, and specialize. Babu runs the kitchen, and Aand runs the dining room. They also add more staff. (29 individuals in the organization)

53. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT The business continues to prosper. Babu and Aand create new tasks and functions and hire People to manage the function. (52 individuals)

54. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT See new opportunity to apply their core competences in new restaurant venture. They open new restaurants, put support functions like purchasing and marketing under their direct control, and hire Shift managers to manage the kitchen and dining room in each restaurant. (150 individauls ).

55. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Construction Blocks of Differentiation

56. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Set of task-related behaviors required of a person by his or her position in an organization As the division of labor increases, managers specialize in some roles and hire people to specialize in others Specialization allows people to develop their individual abilities and knowledge within their specific role Organizational structure is based on a system of interlocking roles Organizational Roles Authority : The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources Control: The ability to coordinate and motivate people to work in the organization’s interests

57. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Function: a subunit composed of a group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs Division: a subunit that consists of a collection of functions or departments that share responsibility for producing a particular good or service Organizational complexity: the number of different functions and divisions possessed by an organization Degree of differentiation Function & Division

58. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Support functions : facilitate an organization’s control of its relations with its environment and its stakeholders, Purchasing, sales and marketing, public relations and legal affairs Production functions: manage and improve the efficiency of an organization’s conversion processes so that more value is created ----Production operations, production control, and quality control

59. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Maintenance functions: enable an organization to keep its departments in operation Personnel, engineering and janitorial services Adaptive functions: allow an organization to adjust to changes in the environment Research and development, market research, and long-range planning

60. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Vertical differentiation t he way an organization designs its hierarchy of authority and creates reporting relationships to link organizational roles and subunits. Establishes the distribution authority between levels Horizontal differentiation the way an organization groups organizational tasks into roles and roles into subunits (functions and divisions) Roles differentiated according to their main task responsibilities ORGANIZATIONAL DESIGN

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62. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Integration the process of coordinating various tasks, functions, and divisions so that they work together and not at cross-purposes

63. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Types of Integration Mechanisms Hierarchy of authority dictates “who reports to whom” Direct contact managers meet face to face to coordinate activities Problematic that a manager in one function has no authority over a manager in another Liaison roles a specific manager is given responsibility for coordinating with managers from other subunits on behalf of their subunits Task force managers meet in temporary committees to coordinate cross-functional activities Task force members responsible for taking coordinating solutions back to their respective functions for further input and approval Teams a permanent task force used to deal with ongoing strategic or administrative issues

64. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Integrating role a new, full-time role established to improve communications between divisions Focused on company-wide integration Integrating department a new department intended to coordinate the activities of functions or divisions Created when many employees enact integrating roles.

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70. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Managers facing the challenge of deciding how and how much to differentiate and integrate must Carefully guide the process of differentiation so that it develops the core competences that give the organization a competitive advantage Carefully integrate the organization by choosing appropriate integrating mechanisms that allow subunits to cooperate and that build up the organization’s core competences

71. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Centralized organization the authority to make important decisions is retained by top level managers Top managers able to coordinate activities to keep the organization focused on its goals Decentralized organization the authority to make important decisions is delegated to managers at all levels in the hierarchy Promotes flexibility and responsiveness

72. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Standardization conformity to specific models or examples that are considered proper in a given situation Defined by rules and norms Mutual adjustment the process through which people use their judgment rather than standardized rules to address problems, guide decision making, and promote coordination. Formalization the use of rules and procedures to standardize operations

73. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Challenge facing managers is To find a way of using rules and norms to standardize behavior, and T o allow for mutual adjustment to give managers opportunity to discover new and better ways to achieve goals

74. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Mechanistic structures structures that are designed to induce people to behave in predictable, accountable ways Emphasis on the vertical command structure Roles are defined narrowly Promotion is slow and steady Best suited to organizations that face stable, unchanging environments

75. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Organic structures Structures that promote flexibility, so people initiate change and can adapt quickly to changing conditions Less emphasis on vertical command structure Roles are defined loosely Status conferred by ability to provide creative leadership Encourages innovative behavior Suited to dynamic environments

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78. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT UNIT II ORGANIZATIONAL CHANGE Meaning , Nature, Forces for change- change agents- Change process-Types and forms of change. Models of change- Resistance to change – individual factors – organizational factors – techniques to overcome change- Change programs –job redesign.

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81. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Managers facing the challenge of deciding how and how much to differentiate and integrate must Carefully guide the process of differentiation so that it develops the core competences that give the organization a competitive advantage Carefully integrate the organization by choosing appropriate integrating mechanisms that allow subunits to cooperate and that build up the organization’s core competences Balancing Differentiation and Integration

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84. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Pros of a network structure: Promotes organizational agility and flexibility. Fosters collaboration across employees. Breaks down silos. Cultivates better understanding of industry, products, and customers. Creates a web of work-related relationships. Creates highly specialized skills in employees.

85. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT Pros of a network structure: Promotes organizational agility and flexibility. Fosters collaboration across employees. Breaks down silos. Cultivates better understanding of industry, products, and customers. Creates a web of work-related relationships. Creates highly specialized skills in employees.

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88. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT UNIT I ORGANIZATIONAL DESIGN Organizational Design Determinants Components Basic Challenges of design – Differentiation, Integration, Centralization, Decentralization, Standardization, Mutual adjustment -Mechanistic and Organic Structures Technological and Environmental Impacts on Design-Importance of Design – Success and Failures in design.

89. BA4017 - ORGANIZATIONAL DESIGN , CHANGE AND DEVELOPMENT UNIT I ORGANIZATIONAL DESIGN Technological and Environmental Impacts on Design-Importance of Design – Success and Failures in design. https://www.aihr.com/blog/types-of-organizational-design/ https://whatfix.com/blog/organizational-structure/