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RGANISATINAL DEVELPMENT AND CHANGE
ASSIGNMNT 1
2.1.1 Strategy
Specializatin
Shape
Distributin f pwer
Departmentalizatin
2.1.3 Prcesses
2.1.4 Rewards
The purpse f the reward system is t align the gals f the emplyee with
the gals f the rganizatin. It prvides mtivatin and incentive fr the
cmpletin f the strategic directin. The rganizatins reward system defines
plicies regulating salaries, prmtins, bnuses, prfit sharing, stck ptins, and
s frth. A great deal f change is taking place in this area, particularly as it supprts
the lateral prcesses. Cmpanies are nw implementing pay-fr-skill salary practices,
alng with team bnuses r gainsharing systems. There is als the burgening
practice f ffering nnmnetary rewards such as recgnitin r challenging
assignments.
The Star Mdel suggests that the reward system must be cngruent with the
structure and prcesses t influence the strategic directin. Reward systems are
effective nly when they frm a cnsistent package in cmbinati n with the ther
design chices.
2.1.5 Peple
Anther insight t be gained frm the Star Mdel is that different strategies
lead t different rganizatins. Althugh this seems bvius, it has ramificatins that
are ften verlked. There is n ne-size-fits-all rganizatin design that all
cmpaniesregardless f their particular strategy needsshuld subscribe t. There
will always be a current design that has becme all the rage. But n matter what the
fashinable design iswhether it is the matrix design r the virtual c rp rati n
trendiness is nt sufficient reasn t adpt an rganizatin design. All designs have
merit but nt fr all cmpanies in all circumstances. The design, r cmbinatin f
designs, that shuld be chsen is the ne that best meets the criteria derived fr m the
strategy.
A third implicatin f the Star Mdel is in the interweaving nature f the lines
that frm the star shape. Fr an rganizatin t be effective, all the plicies must be
aligned and interacting harmniusly with ne anther. An alignment f all the
plicies will cmmunicate a clear, cnsistent message t the cmpanys emplyees.
The Star Mdel cnsists f plicies that leaders can cntrl and that can
affect emplyee behavir, as suggested in Figure 4. It shws that managers can
influence perfrmance and culture, but nly by acting thrugh the design plicies
that affect behavir.
Challenging
when custmers
buy frm mre
than ne prduct
divisin
Since the intrductin, the mdel has been widely used by academics and
practitiners and remains ne f the mst ppular strategic planning tls. It s ught
t present an emphasis n human resurces (Sft S), rather than the traditinal mass
prductin tangibles f capital, infrastructure and equipment, as a key t higher
rganizatinal perfrmance. The gal f the mdel was t shw hw 7 elements f
the cmpany: Structure, Strategy, Skills, Staff, Style, Systems, and Shared values, can
be aligned tgether t achieve effectiveness in a cmpany. The key pint f the
mdel is that all the seven areas are intercnnected and a change in ne area requires
change in the rest f a firm fr it t functin effectively.
In McKinsey mdel, the seven areas f rganizatin are divided int the
sft and hard areas. Strategy, structure and systems are hard elements that are much
easier t identify and manage when cmpared t sft elements. n the ther hand,
sft areas, althugh harder t manage, are the fundatin f the rganizatin and are
mre likely t create the sustained cmpetitive advantage.
3.1.1 Strategy
3.1.2 Structure
Systems are the prcesses and prcedures f the cmpany, which reveal
business daily activities and hw decisins are made. Systems are the area f the
firm that determines hw business is dne and it shuld be the main f cus f r
managers during rganizatinal change.
3.1.4 Staff
3.1.5 Style
3.1.6 Skills
Skills are the abilities that firms emplyees perfrm very well. They als
include capabilities and cmpetences. During rganizatinal change, the questin
ften arises f what skills the cmpany will really need t reinfrce its new strategy
r new structure.
Shared Values are at the cre f McKinsey 7s mdel. They are the nrms and
standards that guide emplyee behavir and cmpany actins and thus, are the
fundatin f every rganizatin.
3.2 Advantage & Disadvantage f McKinsey 7S Framew rk
4.0 rganizatinal Diagnsis
Advantage Disadvantage
The mdel can be used t asses the The mdel can help guide rganisatinal
impact f strategic change n the client change. Managers must act n all Ss in
rganisatin thrugh crss-analysis. The parallel, and understand that the fact rs
strengths and weaknesses f an are interrelated. This intercnnectivity
rganisatin can be identified by creates a dynamic system where ne
cnsidering the links between each f the change requires the system t adapt t a
Ss. N S is a strength r a weakness in new equilibrium. The human brain finds
itself, but is a relative measure. Each it ntriusly difficult t predict the
factr's degree f supprt fr the ther effects f changes in cmplex systems.
Ss is relevant. A S that harmnises with The mdel has limited use as a real-time,
the ther Ss is cnsidered a strength, and numerical maintenance and mnitring
a dissnance a weakness. tl.
The mdel vercame the limited view f The authrs d nt view the
Chandler's "Structure fllws Strategy". rganisatin as a plitical arena. The
Peters saw excellence as a cultural issue authrs viewed that cnflicts between
where ambiguity and paradx are individuals and departments had t be
required t bind peple's need fr avided by adpting strng and uniting
cnfrmity with their desire t be shared values
regarded as individuals. He went even
further by pleading that a strng reliance
n ratinal decisin making is nt nly
wrng, but dangerus.
4.1 ASP Sftware Analysis
Prblem Causes
I think that Susan thinks that the change has been managed very well, this is
shw in her enthusiasm t create rganizatinal charts. She nly really wants
Nathans guidance abut hw t prceed that is implementing her plan. She wants t
knw hw t make the team wrk tgether well and hw t get them t be mre
efficient in their new psitins. I have a feeling that the emplyees are mre anxius
than she thinks. She published the new chart which left ut Stevens name. She said
that Steven was very ppular amng the emplyees and by leaving ut his name she
may have them wrried that he is getting fired. Frm the sund f it Steven may n t
be allwed t share his prmtin yet until it is annunced in the meeting.
Management team prbably feels uncertain because things are changing and peple
fear uncertainty.
4.2 Suggestin
ASP rerganized their Human Resurces Department, this change tk place
t facilitate the current full functinal mdel t a full client management services
mdel. ASP wishes t maximize the value the teams add t the rganizatin by
rganizing teams t serve internal custmers instead f primarily fcusing n day-
t-day activities. An rganizatin design and structure change interventin strategy is
necessary when emplyees receive new jb titles, departments are created r
cmbined, r when an rganizatin utgrws its previus design structure
(Andersn, 2015). I wuld recmmend Stanfrds five-phase methd fr
rganizatinal design change is as fllws:
I wuld recmmend t Susan frm the new teams and build chesiveness in
the new teams are team develpment, teambuilding exercise, team startup and
transitin meetings, rle negtiatin and rle analysis (Andersn, 2015).
REFERENCE
Cummings, T. G., & Wrley, C. G. (2014). rganizatin devel pment and change.
Cengage learning.
Galbraith, J., Dwney, D., & Kates, A. (2001). Designing dynamic rganizatins: A
hands-n guide fr leaders at all levels. AMACM Div American Mgmt
Assn.
Nadler, D., Tushman, M., & Nadler, M. B. (1997). Cmpeting by design: The p wer
f rganizatinal architecture. xfrd University Press.