BU611-Organizational Development
Final Project
Lisa Dick
Debbie Gibb
Kerry Ozmelek
Christie Yantos
10 December 2005
Agenda
Strategic Design Lens
Political Lens
Cultural Lens
Questions?
The Strategic Lens
Overview
How information and task flow are designed
How people are organized into roles
How roles are related
How organization can be optimized to
achieve its goals
The Strategic Lens
Key Points
Efficiency and effectiveness of organization
Based on an assumption that the
organization has a strategy for creating
value that assesses the design of the
organization
Value proposition establishes activities that
must be carried out for the organization to
achieve success
The Strategic Lens
Key Elements of Organizational Design
1. Strategic Grouping
2. Strategic Linking
3. Alignment
The Strategic Lens
Strategic Grouping – focus is on how to
group tasks and activities
Expertise/Function- Southwest Airlines
Output/Product – 3M Company
Market – AMI DODUCO
Hybrid
• Matrix – McCutcheon Enterprises
• Front/Back - Kennametal
The Strategic Lens
Grouping Summary
Advantages
Output/Product Expertise/Function
- allows development of deep knowledge and
high degree of specialization within each function
Disadvantages
-as specialization increases, perspectives
narrow; less innovation
- economies of scale - easy to transfer resources -leads to poor collaboration between
across activities
departments
-allows each group to create separate incentive
and control systems that fit their needs
-allows restricted views of organizational
goals
-transparency of performance
-makes new business creation difficult
Front/Back
Hybrid
Matrix
Market
-provides product development managers clear
strategic focus
-leads to no sharing of technologies or best
practices between manufacturing
-difficult to share resources across business
units
-eliminates economies of scale in functional
-develop in depth knowledge of customers
departments
-leads to poor coordination between
- able to address change in unstable environment departments
- high coordination across functions
-eliminates the need for expertise
-leads to high customer satisfaction
-makes standardization of products difficult
- allows tailoring to specific customer needs
-duplication of resources
-increases missed opportunities
-has necessary coordination to meet dual
-people need extensive training and
demands for customers
interpersonal skills
-allows frequent changes
-participants have dual authority
-provides opportunity for development
-time consuming
-requires massive resources to maintain
power balance
-facilitates close integration of technology and
-requires frequent and extensive effort to
development
maintain power balance
-builds loose customer relationships and deep
-poor integration between market needs
knowledge of the market
and technology development
-suited for complex decisions and frequent
changes in unstable environments
-fragmentation of expertise in the back end
-poor integration between front and back
The Strategic Lens
Strategic Linking – how all areas
(people, information) are connected
Mechanisms
• Hierarchy and Dotted Line Structure
• Liaison Roles
• Integrator Roles
• Permanent Cross-Unit Groups
• Temporary Cross-Unit Groups
• Information Technology Systems
• Planning Process
The Strategic Lens
Strategic Alignment – arranging resources
and incentives to effectively complete
tasks
Systems:
• Organizational Performance Measurement System
• Individual Rewards and Incentives
• Resource Allocation
• Human Resource Development
• Informational Systems and Processes
The Strategic Lens - EMD
Primarily organized as a Functional
Organization
In 2000 added Project Management as a
Matrix Organization
Support departments and functions
unchanged
The Political Lens
Views an
Organization as an
arena for
competition and
conflict
Political Lens
Focuses on Power
Who has the power?
Why do they hold
such influence?
Is power
concentrated at the
top or, are there
multiple centers of
power?
Political Lens
What are the key areas of conflict?
Who are the contributors to the
conflict?
What are the interests of the
contributors?
Political Lens
What mechanisms
are in place to
resolve disputes?
Is the current
method working?
How could it
improve?
Political Lens
Who benefits from the current patterns
of power, conflict, credit
Who gets credit for goals being met?
Who gets blamed when goals are not
met?
Do those who are blamed have the
power to make improvements?
Political Lens
How well does information flow within
the organization?
Are problems identified early so they
can be solved and changes can be
made before the strategic plan is
altered?
Political Lens - EMD
Represented Employees
IBEW
AWSE
Exempt Employees
Professional
Management
The Organizational Culture of:
What is organizational culture?
The personality of the organization
Places certain restrictions and boundaries
around behavior
How authority is exercised and distributed
How people act and feel rewarded, organized
and controlled
The values and work orientation of staff
How much initiative, risk-taking, scope for
individuality and expression is given the
employee
Innovation at Google
Disruptive Innovation
New kind of work environment at
Google
Work/Life Balance?
Small Teams
Top leaders drive innovation by
being open to all ideas from
Googlers
Passion
Passion for Innovation
Any Googler might have the next great idea,
so they make sure every idea is heard.
Because great ideas need resources to grow
into reality, at Google employees always get
the resources they need to make their
dreams a reality.
Google engineers all have “20 percent time”
in which they’re free to pursue projects
they’re passionate about.
Googler perks are widespread.
Employees are First
In the same way Google puts users first when it
comes to its online service, Google Inc. puts
employees first when it comes to daily life in its
Googleplex headquarters.
There is an emphasis on team achievements and
pride in individual accomplishments that contribute
to the company's overall success. Ideas are traded,
tested and put into practice with an enthusiasm that
can be dizzying.
Cultural Lens- EMD
Westinghouse heritage – Circle W
Adversity to change
Prevalent Sole source supplier mindset
Questions???