Organizational Design
Organizational Design Theory
Teri McGuigan
Leadership 630 – Organizational Design
Mr. Gary Brown
March 12, 2012
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Organizational Design
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Organizational Design Theory
Organizations do not just happen. They are constructed and fine-tuned like an instrument.
The dynamic processes of culture, creation and management are the essence of leadership
(Schein, 2004). Schein also believed that leadership and culture are two sides of the same coin.
This paper will discuss two theories of organizational change as applied to organizational design.
I will also discuss combining these two cultural theories to form a third combination of
organizational culture and design, as applied to Papa Vino’s Italian Restaurant in St Joseph,
Michigan.
Schein (2004) defined culture as, “a pattern of shared basic assumptions that was learned
by a group as it solved its problems of external adaption and internal integration, that has worked
well enough to be considered valid and, therefore, to be taught to new members as the correct
way to perceive, think, and feel in relation to those problems (pg. 17).
Characteristics of successful organizational design include a well-defined organizational
vision, which is easily adaptable to change. Employees must have belief in the vision and
mission of the organization. Consistency in personal standards and effectiveness will also elevate
an organization’s success. Leadership must find the balance between efficiency and
effectiveness.
Leadership faces the constant rotation of the external forces as well as internal workings
while running a business. Within a world of constant change, leadership must focus on the
organizational design to achieve maximum competiveness. The first organizational design model
is the Congruence Model (Nadler & Tushman, 1997). See Figure 1-1.
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Figure 1-1
First Organizational Theory Congruence model, (Nadler &Tushman, 1997)
Communication and the need for others to assist in the final product among sub-systems
through the transformation process are essential for the success of the organizational process
(Nadler & Tushman, 1997). Each organization has unique features for change process according
to the professional and personal relationships that are formed while working in an organization.
(See figure 1-1). Whatever policy or change may be implemented, there is always one team and
one result. The integrity of the team must deliver on achieving demanding goals. Eventually
within this organizational design structure, accountability will become habit and known by each
employee, while creating personal relationships (Nadler &Tushman, 1997) describes subsystems
as the following;
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o The work: This is the daily activities of individuals in the organization. This includes the
flow and the movement of the organization. It is the raw form of a job description.
o The people: Unique experiences (backgrounds), capabilities and expectations of those
working in the organization
o The formal organization: This is the organizational structures, guidelines and formal
organizational processes. Most every organization has a vision and belief system posted
on their homepage. Part of this seems to be for the employee. The other part is marketing
to the public, by declaring superior standards set by the organization
o The informal organization: This means the emerging leaders regardless of title. Each
group of people will create a system of norms and communication. The opinion leader
affects the power structure of the organization. This individual will influence the level of
productivity. Sometimes the opinion leader will assist the leader. Other opinion leaders
will have to be won over by leadership. The informal organization is the heart of culture.
With each of these subsets, every department is responsible for the final output. The idea of
putting walls up between specific divisions is self-detrimental as a leader. The entire
organization must be realistic
Second Organizational Theory – Lewin, 1951
The second theory of organizational design involves the constant need for change within
organizations. Forces for change should be more than resistance to change. Therefore,
leadership should “concentrate on decreasing the resistance and increasing the forces for change”
(Lewin, 1951). In order to achieve organizational design and to break the habits of bad policy,
there are three steps to change:
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o Unfreezing: This is the state that shows the resistance and change alarms to create
awareness about the necessity for change, yet does not overthrow the system.
o Moving: The second step is to taking action and force employee to participate and to
involve in change process.
o Freezing: Finally, freezing tries to stabilize the organization and to create a more
peaceful environment after a new process is applied
Figure 1-2
Looking at figure 1-2, one can see a path that slants out and forward, much like any great
journey.
The captain once of an expedition, Ernest T. Shackleton was lost just a day from reaching
his goal on the Antarctic. (Morrell & Capparell, 2002). Shackleton gave quaint small parties that
praised specific individuals, even being stranded in below freezing weather at times (pg. 118). I
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ask if a captain of an iceberg can get his culture into a positive, productive, predictable schedule,
then why today do many leaders struggle with looking forward.
The Third Theory – Walk the Talk
The third theory, which is both a combination of the Congruence Model by Nadler &
Tushman (1997) which exposes the external and internal happenings and the strategyof acting
on a known issue that impends on the productivity of employees . The attention span of
employees is
The bulls ‘eye is the thermometer of organizational design. As teams or groups get to
know one another and build relationships, there is a certain atmosphere that develops quickly
into expected behavior. If one member of the team notices another member is struggling, it is the
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responsibility of others to assist in that project that is being struggled on. Because when all is
said the final product is representative of the company. As the changing external and internal
environment runs its course on any given organization, it is the responsibility of each employee
to measure and gauge their surrounding environments.
The organizational design of an organization affects every part of working relationships.
The idea of maintaining a “ride of positive culture” is important to the concept of freezing and
unfreezing, created by Lewin, 1951. Yet the idea of maintaining a perfect corporation is
unrealistic. There will be times of great struggle.
I would like to keep communication constantly ready for change. There should be
nothing said to one that the other cannot hear. As the great Antarctic explorer Ernest t Shackleton
once said about struggle “Learn from past mistakes - yours and those made by others. Sometimes
the best teachers are the bad bosses and the negative experiences” (Morrell & Capparell, 2002).
An organizational design model should be created to open up each and every line of
communication.
Applied to Organization
Papa Vinos has nine restaurants across the Midwest. Quality Dining is the flagship of
over 176 restaurants including over 116 Burger Kings, 40 Chili’s Restaurants, and a personally
owned dining concept Papa Vino’s , and a Blue2O seafood restaurant in New Jersey .
Papa Vino’s restaurant believes in superior food and service (Quality Dining
Incorporated, 2012). The brand and external appearance of this restaurant chain leaves an
impression in the mind of the consumer that it is “upscale.” The brand was designed with a
certain level of expected service. Otherwise it is just spaghetti.
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When the service began to take a nose dive, the kitchen morale also plummeted. Causing
a domino effect of negativity. employees festered too long in a pool of negativity. The
organizational design was poorly executed or wasn’t a solid plan to begin with. Newly created
Model 3 is a perfect solution to current problems.
Expected Outcomes
The organizational design model three, Walk the Talk, would apply to the service issues
at Papa Vino’s Italian Kitchen. When negativity seeps into a restaurant it has a habit of affecting
those around it, much like a virus. Papa Vino’s adopted the business model of grass root
marketing. It began to buy advertising in a local marketing campaign, which dropped 37,000
coupons across Southwest Michigan. This created mass volume which filled the restaurants most
every evening. Even with discounted food and non-alcoholic beverages it made positive revenue
to keep leadership content. Although I knew it could be twice as better with more training.
The climate of a restaurant is set by the attending manager on duty. Each manager has a
different personality, as we all have different fingertips. It is not uncommon for restaurant
managers to play favorites have known likes and dislikes, and who will allow you to bend the
rules. The organizational application of Theory 3 to Papa Vino’s would only keep everyone
consistent with the standards.
With open lines of communication, and serious issues only being addressed, it is more
likely that the momentum or energy of Pap Vino’s would move forward. Miscommunication
costs organization’s many accounts or customers. Balancing the minds of both the employees of
a restaurant and the open public is a dual level of service and attention. A leader is able to steer
that energy through open honest conversation and stable organizational design.
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Summary
Organizational design begins with the vision of the leader. The leader must be keenly
aware of both the internal and external environment. This will impact the productivity and
efficiency of total operations.
Nadler & Tushman (2004), believed that the external and internal environment produce
happenings to an organization. There is one team creating one outcome, which represents one
product. Then there is the work of Lewin (1951) who agreed that problems do arise, but let us fix
them and moved forward. I believe that Nadler & Tushman lay the foundation, but Lewin
demands we move forward.
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References
Lewin, K (1951) Field Theory in Social Science New York, Harper Row.
Morrell, M., & Capparell, S. (2002). Shackleton's Way. London: Penguin Books Ltd.
Nadler, D. & Tushman, M. (1997). Competing by Design: The Power of Organizational Architecture,
Chapter 2, pg 31-42.
Quality Dining Incorporated. (2012, March 9). Papa Vino's Italian Restaurant. Retrieved from QDI.com:
www.qdi.com/PaPa Vino's
Schein, E. H. (2004). Organizational Culture and Leadership. San Francisco: John Wiley & Sons, Inc.