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Organisational design and development are based on the assumption that the human being is rational. However, behavioural scientists have argued that man is not always rational because he makes choices based on emotion or habit rather than rationally.
Rational choice theory has inspired several varieties of models for organisational design and these include the Weber-Fayol model, the human relations model, and the open system model. Each model has its strengths and weaknesses, and no one model perfectly fits all organisations. The best organisation would instead be a combination of elements from differing models, all focused on individual needs in the organisation and by the employee.
In the interest of treating organisational design and development as a matter for behaviourist action, the view adopted is that people are not always rational and decisions are taken on instinctive grounds and habit; the goal or expectancy theory, the equity theory. Communication, motivation, and leadership are among the actions brought out in the design and development of effective organisations.
Improved efficiency or effectiveness: Outdated organisational structures and systems that no longer serve the company’s purposes may impair the extent to which an organisation can be efficient or effective in its role. Redesign can help address such problems.
With the changing strategy: If a company is adopting a change in strategy, then so must its organisational design. An organisation trying to change track will not align if it still carries an old structure with itself.
Changes outside: organisations must look for change in structural aspects and systems when things outside – such as new technologies or new rules – change. If they can’t, the organisation may be placed at a disadvantage.
Handling growth: A fast-growing organisation can discover that its current structure may not be adequate for the new size and reach of the business. Redesign can help solve these problems.
Organisational design and development help organisations understand themselves better regarding how they function and in which way they can get better. This helps the individuals within an organisation know more about their roles and responsibilities and align them with the organisational goals. Organisational design and development, if successful, can make things more efficient, effective, and productive.
Quality in organisational design and development costs money, but rewards can be great. Adaptation and keeping pace with the speed of change are of tremendous importance in today’s changing business world. That is the reason why the need for specialists in organisational design and development to help organisations stay ahead has gained momentum..
Absolutely! These four points would help chart the direction for organizational design decisions.
The design choice would also depend on the organizational culture, as for example a collaborative culture is one that prefers networked structures while performance-driven cultures tend to prefer hierarchy.
One of the most critical aspects of organisational design is that the chosen structure aligns with an organisation’s goals and objectives. For instance, if an organisation seeks to become more efficient, a functional structure is ideal. However, in cases where an organisation aims to be creative and innovative, the more matrix-based structure will be preferred. It is important to consider the specific situation where the organisation works when picking a design, as this can greatly affect which choice is best. For example, if an organisation works in a highly regulated field, then a more centralised structure may be needed to follow the rules.
The organisational design chosen should be based on how it will affect the employees. For instance, the functional structure might lead to isolation; an employee may be within the organisation but unable to relate to other parts of it. On the other hand, a matrix might be hard to understand and complicated.
There are primarily three ways of designing an organisation:
When it comes to the design of an organisation, there are a few key things that need to be taken into account to create a high-performance work system.
The first crucial point to note is that the organisation must be able to rapidly adapt to changing environments or markets. This implies that it must be resilient and equipped to respond rapidly and with efficiency to new demands.
To be new and original, the organisation needs to be an enabling source of innovation. That means ideas have a chance to flourish while exploring and testing them without any fear of punishment or blame.
Finally, the organisation must find a way to be efficient and flexible. It needs to get things done quickly and well, but not at a cost that causes it to lose the ability to change direction if needed.
Organisational development is the process whereby organisations can improve their performances and attain the objectives they seek. Its application requires a number of techniques and approaches as well, including change management, process improvement, human resources management, and leadership development processes.
There are different forms of evidence and data, such as research studies, surveys, interviews, focus groups, or case studies that can be used to support choices in organisational development. The pros and cons for each of them are so different that it then becomes important to choose the right one for a particular situation.
One of the principal points to be considered in the selection of a source of evidence or data is the aspect of whether it can be accepted as reliable and valid. Here, it can be taken that it is precise and consistent over a period, and validity would mean it is related and coherent. Another significant point to keep in mind would be the bias of the source. It ideally should not be biased in an issue and, instead, present fair as well as objective reporting on the matter.
Organisational development practitioners often find it difficult to use whole methods for building organisations. This is because most organisations do not like change and perhaps are not willing to invest in much time and other resources required in using a holistic method.
Further, one should be aware of how the organisation runs and be very communicative so that they get on with anyone to have the purpose of the organisation realised. Beyond that, a comprehensive strategy demands much coordination and planning, something that can be very gruelling in large and complex organisations.
Many resist change in the organisation. They might be afraid of the future, dislike the way the change is handled, or oppose anything that shifts the comfort of familiarity. It is essential to know these feelings and what they mean for a change effort.
Affective reactions are feelings such as fear, anger, or happiness. Such feelings may affect the thoughts and behaviours of individuals during the period of change. For instance, an individual who is afraid might not risk taking or trying new things. An angry person might be very aggressive towards other people or try to sabotage the change.
Behavioural responses would be what people do when something changes, such as a manifestation of more absences, less work getting accomplished, or just people not wanting to go along with new rules and processes.
Cognitive responses are perceptions and attitudes that people have concerning the change. These may include the perception that change is unnecessary or that the change will not take place. It is therefore important to find out how people will react to a change so that it can be managed well. Overcoming resistance to change includes explaining why the change is necessary, involving people in decisions, and giving support during the transition.
organisations are at a constantly changing stage to remain competitive and, hence successful. It becomes tough for employees to handle at times; thus, they leading to disengagement. Hence, it is a must that organisations initiate some strategy at work so that during the period of change, employees will not detach from their working environment.
That would call for getting the employees involved in the change process. This is actually by involving them in open and regular communications on changes that are happening and reaching out to get their input and feedback.
The other approach would involve providing support and training for the employees, so they feel empowered enough to handle the change.
Finally, acknowledgement of employee efforts in the period of transition will be necessary and rewarded. Doing this will create a culture of engagement which will affirm successful change.
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