01+Org.+&+Org.+Effectiveness

Ch 01 Organizations and Organizational Effectiveness Organizational Theory, Design and Change 6th edition, Gareth R. Jones Power Point Presentation on Ch01 by the Author himself    What is Organization Theory Ch01, Mary Jo Hatch

Learning Objectives:
1. Explain why organizations exist and the purposes they serve 2.Describe the relationship between __organizational theory and organizational design and change__, and __differentiate between organizational structure and culture__ 3.Understand how managers __can utilize organizational theory to design and change their organizations to increase organizational effectiveness__ 4.Identify how managers __assess and measure organizational effectiveness__. قياس و من ثم تقييم الاداء التنظيمي 5.Appreciate the way contingency factors influence the design of organizations.  Topics: 1- Help organizations in crafting their desired culture . ( drive the Cultural Transformation to enable the achievement of your business strategies)  2- Help organizations in design their adequate structure. __<span style="background-color: #ffffff; font-family: Impact,Charcoal,sans-serif; font-size: 35px; text-align: center;">** Organization Development and Effectiveness ** __ <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">** Today ,** teams and __organizations face rapid change like never before__. __Globalization__ has increased the markets and opportunities for more growth and revenue. However, increasingly diverse markets have a wide variety of needs and expectations that must be understood if they are to become strong customers and collaborators. Concurrently, scrutiny of stakeholders has increased as some executives have been convicted of illegal actions in their companies, and the compensation of executives seems to be increasing while wages of others seems to be decreasing or leveling off. Thus, the ability to manage change, while continuing to meet the needs of stakeholders, is a very important skill required by today's leaders and managers. = <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">5 - To exert power and control. This ** figure ** explain why organization exist :-
 * <span style="background-color: #ffffff; color: #800080; font-family: Arial,Helvetica,sans-serif; font-size: 15px;">Why Do Organizations Exist ? ** <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">1 - To increase specialization and the division of labor.  <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">2 - To use large-scale technology  <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;"> a - ** Economies of scale ** : cost savings that result when goods and services are produced in large volume.  <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;"> b - ** Economies of scope ** : cost savings that result when an organization is able to use underutilized resources more effectively.  <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">3 - To manage the external environment  <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">4 - To economize on transaction costs
 * ** Transaction costs ** : the costs associated with negotiating, monitoring, and governing exchanges between people.

<span style="background-color: #ffffff; color: #ff0000; font-family: Arial,Helvetica,sans-serif; font-size: 20px;">**(1-2) What is Organization Development ?** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">There are many definition described in the <span style="background-color: #ffffff; color: #800080; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**class** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : <span style="background-color: #f5f5f5; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**OD** <span style="background-color: #f5f5f5; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> :- The way org. use IT & Technology & Human resources to transform input into output. <span style="background-color: #f5f5f5; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**OD** <span style="background-color: #f5f5f5; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> :- The process of moving from actual state to future state. ** OD ** :- Methodology or technique used to effect desired change in an org. or section of an org. with a view of improving the org. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">, <span style="background-color: #f5f5f5; font-family: 'Comic Sans MS',cursive; font-size: 15px;">- ** Effectiveness ** : at the management level. - ** Efficiency ** : the most efficient way we do business ( at the operation level ). In general, ** Organization Development (OD) ** : is a process by which behavioral science knowledge and practices are used to help organizations achieve greater effectiveness, including improved quality of work life and increased productivity. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Richard Beckhard** + OD class, defines <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Organization Development (OD)** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> as <span style="background-color: #f5ff00; font-family: 'Comic Sans MS',cursive; font-size: 15px; vertical-align: baseline;">" an effort, planned, organization-wide, futuristic, strategic, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization's processes, using behavioral-science knowledge." <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> In essence, OD is a <span style="background-color: #ffffff; color: #0000ff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**planned system of change.**

<span style="background-color: #ffffff; color: #ff0000; font-family: Arial,Helvetica,sans-serif; font-size: 20px;">**(1-3) When and why should an Organization use OD ?** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">The field of OD is extremely broad—one of the problems in communicating clearly what the field entails. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 16px; vertical-align: baseline;">OD is not a technique or a group of tools, <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> though some OD professionals practice as if it were. Rather, OD can be applied any time an organization wants to make planned improvements using the OD values. OD might be used in any of the <span style="background-color: #ffffff; color: #800080; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**following situations** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> :  <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To develop or enhance the organization’s mission statement (statement of purpose) or vision statement for what it wants to be. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To help align functional structures in an organization so they are working together for a common purpose. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To create a strategic plan for how the organization is going to make decisions about its future and achieving that future. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To manage conflict that exists among individuals, groups, functions, sites, and so on, when such conflicts disrupt the ability of the organization to function in a healthy way. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To put in place processes that will help improve the ongoing operations of the organization on a continuous basis. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To create a collaborative environment that helps the organization be more effective and efficient. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To create reward systems that are compatible with the goals of the organization <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To assist in the development of policies and procedures that will improve the ongoing operation of the organization. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To assess the working environment, to identify strengths onwhich to build and areas in which change and improvement are needed <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To provide help and support for employees, especially those in senior positions, who need an opportunity to be coached in how to do their jobs better  <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">■ To assist in creating systems for providing feedback on individual performance and, on occasion, conducting studies to give individuals feedback and coaching to help them in their individual development. <span style="background-color: #ffffff; color: #800080; display: block; font-size: 15px; text-align: left;">**Why do we have to Develop Organization ?** <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">1 - **Human resources may be a large fraction of our costs of doing business**. They certainly can make the difference between organizational success and failure. We better known how to manage them. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">2 - **Changing nature of the workplace**. Our workers today want feedback on their performance, a sense of accomplishment, feelings of value and worth, and commitment to social responsibility. They need to be more efficient, to improve their time management. And, of course, if we are to continue doing more work with less people, we need to make our processes more efficient. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">3 - **Global markets**. Our environments are changing, and our organizations must also change to survive and prosper. We need to be more responsible and develop closer partnerships with our customers. We must change to survive, and we argue that we should attack the problems, not the symptoms, in a systematic, planned, humane manner. <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">4 - **Accelerated rate of change**. Taking an open-systems approach, we can easily identify the competitions on an international scale for people, capital, physical resources, and information. <span style="background-color: #ffffff; color: #800080; display: block; font-size: 15px; text-align: left;">**Characteristics of OD and its Importance :**  <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">1 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Planned** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : OD takes a long-range approach to improving organizational performance and efficiency. It avoids the (usual) "quick-fix". <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">2 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Organization-wide** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : OD focuses on the total system. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">3 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Managed from the top** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : To be effective, OD must have the support of top-management.They have to model it, not just espouse it. The OD process also needs the buy-in and ownership of workers throughout the organization. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">4 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Increase organization effectiveness and health** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : OD is tied to the bottom-line. Its goal is to improve the organization, to make it more efficient and more competitive by aligning the organization's systems with its people. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">5 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Planned interventions** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : After proper preparation, OD uses activities called interventions to make system-wide, permanent changes in the organization. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">6 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Using behavioral-science knowledge** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : OD is a discipline that combines research and experience to understanding people, business systems, and their interactions.

<span style="background-color: #ffffff; color: #ff0000; font-family: Arial,Helvetica,sans-serif; font-size: 20px; vertical-align: baseline;">**(1-4) What is an Organizational Development process ?** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px; vertical-align: baseline;">** OD Process ** is based on the action research model which begins with an identified problem or need for change. The process proceeds through assessment, planning of an intervention, implementing the intervention, gathering data to evaluate the intervention, and determining if satisfactory progress has been made or if there is need for further intervention. The process is cyclical and ends when the desired developmental result is obtained.

<span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px; vertical-align: baseline;">1 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px; vertical-align: baseline;">**Entry** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px; vertical-align: baseline;"> : <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">The first phase is when the OD professional (“consultant”),having done the requisite marketing, and a person representing the client organization (or part of an organization) (“client”) meet to decide whether they will work together, assess the readiness of the organization to change, and agree on the conditions under which they will work together. 2 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Start-up** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : The next phase occurs after an agreement has been reached to work together, and a basic infrastructure (such as a client team with whom the consultant will work) is put in place. 3 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Assessment and Feedback** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : This phase is sometimes called analysis or diagnosis; in this phase, the consultant and client, together, determine the organizational culture, including its strengths and weaknesses, and give this information to the organizational members. The assessment can also focus on a specific area of interest to the organization that might, because of its lack of depth, require much less commitment of time and resources. 4 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Action Plan** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : Based on what was determined in the previous step, plans are mutually developed as to how the organization wishes to move forward, in terms of both goals and objectives and how these will be accomplished. 5 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Implementation** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : In this phase, the plans that were made in the previous step are implemented; this is called an intervention. 6 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Evaluation** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : This phase answers the question, “How well did our intervention accomplish the objectives that were planned?”. 7 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Adoption** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : If the evaluation indicates that the objectives of the intervention were accomplished, then the change that was implemented becomes institutionalized; that is, it becomes a part of the way in which business is done in the organization. If the evaluation indicates that desired objectives were not met, then this phase is skipped. In both cases, the process begins all over again. 8 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Separation** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : At some point, the consultant will withdraw from the intervention process, having transferred his or her skills to the client organization (again, whether the OD professional is internal or external). This may occur because additional change is no longer a priority to the client organization, or that it is not ready for the next stage of change. It may be because OD skills are needed that the current OD consultant does not possess. It may be that the consultant has been co-opted by the organizational culture and is no longer able to maintain objectivity. For whatever reason, separation should occur intentionally and not by just letting it happen. **OD Players : ( Discussed in the class )** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">1 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Initiator** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;"><span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">* <span style="background-color: #ffffff; color: #0000ff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">New Ideas <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">* <span style="background-color: #ffffff; color: #0000ff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">Discover Opportunities <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">2 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Mgmt Support.** 3 - ** Implementer, Doers, testing ** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">4 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Evaluation** 5 - ** Adoption, Institutionalization. **
 * <span style="background-color: #ffffff; color: #0000ff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">First Mover

<span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;"> <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">This <span style="background-color: #ffffff; color: #800080; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">**Figure** <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;"> illustrates the Organizational Change and Development life Cycle :

<span style="background-color: #ffffff; color: #ff0000; display: block; font-size: 20px; text-align: left;">**(1-5) Effectiveness** <span style="background-color: #ffffff; display: block; font-family: 'Comic Sans MS',cursive; font-size: 15px; text-align: left;">Effectiveness as producing the right things or getting the right things done ; formulate strategies that enable the org meet it mission and goals by taking advantage of the opportunitiespresented in highly uncertain and rapidly changing environments while also managing the risks. <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Organizational Effectiveness** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : is about doing everything you know to do and doing it well. The universals of management planning, organizing, leading, direction, and controlling. Six dimensions to improve Organization Effectiveness : <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">1 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Direction** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : We help people align their actions with the direction of the organization. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">2 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Leadership** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : We develop leadership skills and build the confidence needed to apply those skills. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">3 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Interaction** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : We enhance the capacity of people to collaborate and work as teams. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">4 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Communication** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : We work to improve communication effectiveness. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">5 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Environment** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : We guide organizations to create an environment in which people work to their best abilities. <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;">6 - <span style="background-color: #ffffff; color: #008000; font-family: 'Comic Sans MS',cursive; font-size: 15px;">**Adaptability** <span style="background-color: #ffffff; font-family: 'Comic Sans MS',cursive; font-size: 15px;"> : We increase people's ability to drive positive change.