Organizational Behavior Evaluation 1

Running head: ORGANIZATIONAL BEHAVIOR EVALUATION

Organizational Behavior Evaluation Dr. Vernon T. Cox

July 26, 2004

Organizational Behavior Evaluation 2 TABLE OF CONTENTS ORGANIZATIONAL BEHAVIOR EVALUATION .................................................................... 3 ORGANIZATIONAL DESIGN APPROACH..................................................................................... 3 SHORT AND LONG TERM EFFECTIVENESS OF THE DESIGN STRATEGY ......................................... 4 ANTICIPATED INTERNAL AND EXTERNAL ENVIRONMENTAL, POLITICAL, CHANGES ...................... 6 ANTICIPATED IMPACT OF CHANGE ON THE BUSINESS ORGANIZATIONAL BEHAVIOR AND
STRUCTURE ........................................................................................................................... 6

DID THE ORGANIZATION CONDUCT APPROPRIATE RESEARCH IN DEVELOPING ITS

ORGANIZATIONAL BEHAVIOR STRATEGY? ................................................................................ 7

ORGANIZATIONAL BEHAVIORAL THEORIES THAT WERE MANIFESTED IN THE ORGANIZATION....... 7 THEORIES OMITTED THAT COULD RESULT IN AN OPTIMIZED OUTCOME .................................... 8 The Supportive model ................................................................................................. 8 The Collegial model .................................................................................................... 8 The System model ........................................................................................................ 8 RECOMMENDATIONS THAT CAN BE MADE FOR A FUTURE ORGANIZATION OF THIS NATURE......... 9 CONCLUSION.............................................................................................................................. 10 ORGANIZATIONAL BEHAVIOR AND LEADERSHIP OF THE FUTURE ............................................ 10 LEADERSHIP MODELS WITH AUTOMATION ............................................................................. 10 SUMMARY ........................................................................................................................... 12 REFERENCES ............................................................................................................................. 14

Organizational Behavior Evaluation 3 Organizational Behavior Evaluation Organizational design approach According to the New Mexico Economic Development Departments website, the New Mexico Economic Development Departments (NMEDD) mission is to provide leadership and technical assistance to communities, businesses, and economic development organizations (NMEDD Staff, 2002). The NMEDD staff effectively work within a changing environment. As stated, the business of the NMEDD is to support the government and business entities. Risk is a practical part of this atmosphere and the organizational structure of the NMEDD has the elasticity to assist other organizations with risk. The business of economic development exist in a changing environment and risk is a natural part of commerce. Permanent white water puts organizations and their members in the position of continually doing things they have little experience with or have never done before at all (Vaill, 1996, p. 19). The basis of providing this service to the public is the organizations design for implementation. Gull says, Organizational design is about bringing order to the many tasks and components of the organization. The issue of how to design the organization is in essence how to divide the tasks, the resources and the authority and how to coordinate efforts among many toward the achievement of the (organizations) aim. (Gull, 2004, para. 1) The New Mexico Economic Development Department (NMEDD) is organizationally designed on the team structure theory. Robbins says, when management uses teams as its central coordination device, you have a team structure (Robbins, 2001, p. 425). Since the NMEDD has a fundamental obligation to work with numerous government entities, the team

Organizational Behavior Evaluation 4 structure is appropriate. More often, particularly among larger organizations, the team structure complements what is typically a bureaucracy. This allows the organization to achieve the efficiency of bureaucracys standardization, while gaining the flexibility that teams provide (Robbins, 2001, p. 426). The existing policies that have been instituted by the leadership at the State of New Mexico, as well as internal local policies of the NMEDD, are effective concerning the fundamentals of organizational behavior. Concerning these basic issues, Booth-Butterfield says, 1. 2. 3. Consequences which give rewards increase a behavior. Consequences which give punishments decrease a behavior. Consequences which give neither rewards nor punishments extinguish a

behavior. (Booth-Butterfield, 1988, para. 2) These three categories are well covered by the New Mexico policies. Short and long term effectiveness of the design strategy From project to project, in the short term, the team approach is the most effective and efficient design structure. The NMEDD must utilize the resources that each team member brings to the table to overcome the natural scarcity of resources. According to Thompson, managers discovered the large body of research indication that teams can be more effective than the traditional corporate hierarchical structure for making decisions quickly and efficiently (Thompson, Aranda, & Robbins, 2003, p. 11). Leaders of projects that require urgent decisions utilize the team structure to quickly review many alternatives and narrow the focus. Since the NMEDD staff primarily interacts with organizations outside of the department, the information that is necessary for accurate decisions must be critically managed.

Organizational Behavior Evaluation 5 According to Agranoff, Public managers search for knowledge-based solutions that are increasingly outside of their organizations. As a result, managers will spend more and more of their time in knowledge management working across organizations (Agranoff, 2003, p. 6). Agranoff describes organizational networks as sub-associations within the parent entity. The network teams that are utilized at the NMEDD have a viable role in the effectiveness of the organization. Network teams can be an asset to a firm that is under intense pressure to rapidly change. With increased demands leaders of vibrant firms must think thoughts they have never thought before. Networks Agranoff says, The demand for knowledge will increase as an important resource, as will the demand for new capital that resides in human resources or knowledge workers. Knowledge capital will continue to need some form of collective that will bring it together. (Agranoff, 2003, p. 10) One of the most significant projects within the state of New Mexico is the Navajo-Gallup Water Supply Project. This project will require public leaders to engage in team activities with partners that perceive the project as mutually exclusive to their interest. In general the project is described as follows; To authorize the construction of the Navajo-Gallup Water Supply Project in New Mexico and Arizona, to provide for completion and rehabilitation of existing and authorized Navajo Nation water projects in New Mexico, to authorize the settlement of the water rights claims of the Navajo Nation in the San Juan River Basin in New Mexico, and to enhance management of the Navajo Reservoir water supply. (D'Antonio, 2004, p. 1)

Organizational Behavior Evaluation 6 This project will take place over many years and many miles of desert. The teams that are currently in place, and those that will be instituted, will be vital to the success of the project. Anticipated internal and external environmental, political, changes The organizational culture and environment of the NMEDD is principally political. The senior staff of the department are appointed at the pleasure of the Governor. The most significant change that should be anticipated, in the near term, is the selection of Governor Bill Richardson for federal office in Washington, D.C. It will be difficult for Governor Richardson to refuse to serve the country as the new administration will require his experience. This event is likely to happen after the November 2004 elections. According to the NMEDD website; Rick Homans, Secretary of the Economic Development Department was Governor Bill Richardson's first appointment in his 2003 administration. Homans was the deputy campaign director for Richardson's successful gubernatorial bid, serving as the Governor's lead policy advisor (NMEDD Staff, 2004, para. 1). Since the leader of the NMEDD, Secretary Rick Homans, works closely with Governor Richardson, it should be anticipated that the Secretary will continue to work closely with Richardson in Washington, D.C. Anticipated impact of change on the business organizational behavior and structure Although there will be administrational transitions at the federal and state level, the structure of leadership will surmount the challenges. At the state level, the efficiency of the department may temporarily subside but, the anticipated impact of the change of senior leadership should be minimal. This is due to the secondary organizational design of the NMEDD. Since the state of New Mexico has career staff members that are not appointed by the

Organizational Behavior Evaluation 7 Governor, these individuals, in general, stabilize the organization during transitions that occur due to political appointment changes. Did the organization conduct appropriate research in developing its organizational behavior strategy? Leaders have a responsibility to their followers and their company, to effectively create an environment that individuals can excel in, converse with staff concerning positive and negative issues in an appropriate manner, and develop departments so that the expertise level is stable. Companies must also have leadership that directs the theoretical course for an effective institution. Newstrom (2002) says the definition of organizational behavior is the study and application of knowledge about how people as individuals and as groups act within organizations. It strives to identify ways in which people can act more effectively (Newstrom & Davis, 2002, p. 4) The leadership at the NMEDD performed extensive research in the search for the effective organizational structure for the department. Part of the research included the establishment of a action plan. The NMEDD 2002 Strategic Action Plan outlines ways every community and tribal government willing to commit resources and manpower to economic development can lay solid groundwork for this growth over the next several years (NMEDD Staff, 2004). The result of the study was the team structure that is in existence today. Organizational behavioral theories that were manifested in the organization Although the team model is the prime organizational model at the NMEDD, the supportive model (or a variance) is also intertwined. When examining the supportive model, Newstrom says, the supportive model depends on leadership instead of power or money. Through leadership, management provides a climate to help employees grow and accomplish in

Organizational Behavior Evaluation 8 the interests of the organization the things of which they are capable (Newstrom et al., 2002, p. 36) Theories omitted that could result in an optimized outcome Three theories that could, if instituted, result in an optimized outcome for the department are the supportive, collegial, and the system models. Since the department is the chief branch for the economic development of the State of New Mexico, there is a significant incentive to increase the productivity and results of the department. These models are effective models for resolving human resource challenges. The Supportive model When examining the supportive model, Newstrom says, the supportive model depends on leadership instead of power or money. Through leadership, management provides a climate to help employees grow and accomplish in the interests of the organization the things of which they are capable (Newstrom et al., 2002, p. 36). By instituting this model, the leadership at the NMEDD can address the future needs of the career staff member. The Collegial model This model is based on teamwork. The collegial model depends on managements building a feeling of partnership with employees. The result is that employees feel needed and useful (Newstrom et al., 2002, p. 38). Although there is a team model in effect at the NMEDD this model incorporates self-managed teams (SMT). Since the SMT have significant control over the processes that influence their results, this model would be effective at the NMEDD. Thompson says, self-managed teams can set goals, plan, staff, schedule, monitor quality, and implement decisions (Thompson et al., 2003, p. 7) The System model

Organizational Behavior Evaluation 9 An emerging model of organization behavior is the system model. It is the result of a strong search for higher meaning at work by many of todays employees; they want more that just a paycheck and job security from their jobs. To accomplish this, managers must increasingly demonstrate a sense of caring and compassion, being sensitive to the needs of a diverse workforce with rapidly changing needs and complex personal and family needs (Newstrom et al., 2002, p. 38). By establishing this model the leadership at the NMEDD could avert the brain drain that affects many organizations that do not keep up with staff members that are upwardly mobile. Recommendations that can be made for a future organization of this nature Collins states that leaders must prepare their organizations for the future without regard for their own personal egos. Leaders that fit that theme are level 5 leaders. The business that is critically prepared to transition to a new successor will have a program in place that identifies individuals who have been mentored, trained, and sponsored to take the firm to the next level. Collins says: As one Level 5 CEO said, I want to look from my porch, see the company as one of the great companies in the world someday, and be able to say, I used to work there. By contrast, Level 4 leaders often fail to set up the company for enduring success -- after all, what better testament to your own personal greatness than that the place falls apart after you leave? (Collins, 2001, para. 8) Although the organizational structure of the NMEDD will survive any transition of senior management, the preparation of second and third line leaders will be essential for the perception of the department. Since each leader of the external organizations that interact with the NMEDD

Organizational Behavior Evaluation 10 base their confidence in the senior staff, as well as the individual staff member assigned to their project, the level 5 process will be critical to the network success and long term projects. Conclusion Organizational behavior and Leadership of the future Future leadership is a difficult and ambiguous subject. Organizational behavior will be directly affected by the changes in leadership models that evolve. Two leadership models, and therefore organizational design updates, that I would like to introduce as synthesized versions of many models are: Leadership models with automation and the Asynchronous Level 5 leadership model. First, leadership models with automation. Leadership models with automation Leaders of the future will have to be consistently effective. In my opinion this consistency will require added level of automation to expedite the leaders learning curve in new situations. There are certain decisions that can be made based on instinct (experience) and other decisions that can be made based on knowledge (learned information). By using an expert system the learning curve can be shortened. This type of system is currently under development at the NMEDD. The central focus of the system is a proprietary software product called GoldMine. This system is being instituted as a macro process to allow more efficient decisions, reduce repetitive documentation, and disseminate information concerning the departments many projects. Another way to exploit the expert system is for a firm to use the expert system when an urgent high dollar decision must be made. According to Schmuller the expert system uses information from the human expert to answer questions.

Organizational Behavior Evaluation 11 Within the last ten years, artificial intelligence-based computer programs called expert systems have received a great deal of attention. The reason for all the attention is that these programs have been used to solve an impressive array of problems in a variety of fields. Well-known examples include computer system design, locomotive repair, and gene cloning (1). How do they do it? An expert system stores the knowledge of one or more human experts in a particular field. The field is called a domain. The experts are called domain experts. A user presents the expert system with the specifics of a problem within the domain. The system applies its stored knowledge to solve the problem. (Schmuller, 2003, para. 5) In their book Expert Systems for the Technical Professional Deborah Wolfgram, et. al. say: The goal of an expert system is to mimic an experts thought processes in solving a problem. The characteristics of an expert system include: a. Interpreting and identifying: Explaining summarized results from input

information. b. situations. c. d. e. Diagnosing: Identifying causes, given symptoms. Designing: Configuring objects into systems, given constraints. Planning: Devising a method for making or doing something in order Predicting: Inferring likely consequences of given or hypothetical

to achieve an end. f. Monitoring: Comparing observations with established standards.

Organizational Behavior Evaluation 12 g. h. i. Debugging and Testing: Prescribing remedies for malfunctions. Instructing and training: Educating and transferring information. Controlling: Regulating or guiding the operation of a machine,

apparatus, or system.(Wolfgram, Dear, & Galbraith, 1987, p. 7) Although both of these references are a bit dated, they have more commercial relevance now due to the size and power of devices such as personal digital assistants (PDAs). A similar type system widely used in todays internet environment is the Frequently Ask Question (FAQ) format. Next, let look at the Asynchronous Level 5 leadership model. Asynchronous Level 5 leadership The authors, Wade, Richardson, M'Mbui, and Cox (2004), of the report, Asynchronous Level 5 leadership, found that mobility will be a important factor in future leadership effectiveness. Currently, the NMEDD has staff members who are deployed in their regions. This decentralized organizational model requires an increased use of mobile technology. New methods of collaborative leadership will have to be instituted. Wade et al. (2004) say: By adding the term Asynchronous to the original Collins phrase, we intend to illustrate how the contemporary leader must ascribe to all of the Level 5 leadership qualities but with a twist: the modern Level 5 leader must be astute in a demanding mobile environment. The Asynchronous Level 5 Leader must use old and new technologies to consistently empower and envision the team members: during long term face-to-face absence. In the end the goal of this new leader is to transform the team into a stronger unit than any one of the team members.(Wade, Richardson, M'Mbui, & Cox, 2004, p. 3) Summary

Organizational Behavior Evaluation 13 All indications show that the design of the organization, by the leadership, is critical to the productivity of the firm. In her article, Influence and Power, Kim Barnes says, Firms where people feel that they have little influence over matters that affect them become cultures of complaint (Barnes, 2002, para. 6). Barnes says that effective leaders are required to use and accept influence to inspire others toward the goals of the firm. Barnes says, Because influence tends to be reciprocal, a leader needs to let others know when and how he or she can be influenced. Leaders and managers make a big mistake when they act as if they can be influenced and then communicate that the decision has already been made. Those in leadership roles must use their personal influence skills to align other members toward a shared goal and to energize and inspire them to do what it takes to achieve it. (Barnes, 2002, para. 1) When leaders purposely design in a feedback loop of influence they will have a better sense of what is going on within the organization. The leadership of the NMEDD has focused on the long-term concerns of the staff of the institution by implementing an effective organizational behavior model.

Organizational Behavior Evaluation 14 References Agranoff, R. (2003). Leveraging Networks: A Guide for Public Managers Working across Organizations Bloomington, IN: School of Public and Environmental Affairs Indiana UniversityBloomington. Booth-Butterfield, S. (1988). REINFORCEMENT THEORY. www.as.wvu.edu. Retrieved on July 31, 2004 from http://www.as.wvu.edu/~sbb/comm221/chapters/rf.htm

Collins, J. (2001). Level 5 Leadership. Harvard Business Review, 79(1) 66-77. D'Antonio, J. (2004). Navajo-Gallup Water Supply Project in New Mexico and Arizona. www.seo.state.nm.us retrieved on July 31, 2004, from http://www.seo.state.nm.us/waterinfo/NavajoSettlement/Navajo-Appendix2.pdf Economic Development Staff (2004). Doing Business in New Mexico. www.gonm.biz retrieved on July 25, 2004 from http://www.gonm.biz/NMBUSINESS/index.html Gull, G. (6-29-2004). Lecture Four: Organizational Design and Effectiveness. Newstrom, J. W. & Davis, K. (2002). Organizational Behavior: Human Behavior at Work. Boston: McGraw-Hill Higher Education. NMEDD Staff (2002). Action Plan New Mexico Economic Development Department. www.edd.state.nm.us retrieved on July 29, 2004 from http://www.edd.state.nm.us/PUBLICATIONS/02action.pdf NMEDD Staff (2004). 2002 Strategic Action Plan. www.gonm.biz retrieved on July 29, 2004 from http://www.gonm.biz/PUBLICATIONS/strategic.pdf NMEDD Staff (2004). The Secretary of the Economic Development Department: Rick Homans. www.edd.state.nm.us retrieved on July 29, 2004 from http://www.edd.state.nm.us/secretary.html

Organizational Behavior Evaluation 15 Robbins, S. P. (2001). Organizational Behavior. Upper Saddle River, NJ: Prentice Hall. Thompson, L., Aranda, E., & Robbins, S. P. (2003). Tools for Teams. Boston, MA: Pearson Custom Publishing. Wolfgram, D. D., Dear, T. J., & Galbraith, C. S. (1987). Expert Systems for the technical professional. John Wiley & Sons.