PSYC3202 - Industrial Psychology

kms

Building blocks of organisational design

Formalisation, centralisation, departmentalistion, span of control

Centralisation definition

degree to which deicison making is concentrated at a single point within an organiation

Centralisation advantages

clear chain of command, allows for oversight and control

Centralisation disadvantages

slow, less adaptable

Departmentalisation definition

basis by which jobs are grouped together

Departmentalisation groupings based on…

• Function

• Product

• Process/Customer

• Geography

Departmentalisation advantages

N/A

Departmentalization disadvantages

N/A

Formalisation

degree to which jobs within orgnization are standardized

Formalization advantages

easier training and onboarding, consistency in customer experience, role clarity

Formalization disadvatanges

N/A

Span of Control definition

number of subordeinates a manager can effectivelry oversee

Wide Span - Span of Control

cost-effecftive and encourages autonomy, but less individualized mentorship

Narrow Span - Span of Control

Cloaser supervision, individual considerations; but slow, increased costs, and risk of micromanagement

Two extreme models of organisational design

Mechanistic models and organic model

Mechanistic model

• High specialisation

• Rigid departmentalisation

• Clear chain of command

• Narrow spans of control

• Centralisation

• High formalisation

Organic model

• cross-functional teams

• cross-hierarchical teams

• free flow of information

• wide spans of control

• decentralisation

• low formalisation

Contextual factors in org design

stategy, organisational size, technology, environmental factors

Strategy — contextual factor in org design

innovation (organic) vs cost-monimization (mechanistic) vs imitaation (mixed)

Organisational size - contextual factors in org design

shift away from organic to mechanistic with growth

Technology - contextual factors in org design

organic often better when technology rapidly evolving

Environmental factors - contextual factors in org design

mechanistic often more common when external landscape more complex

Organisational Culture

• ‘vibe’ or ethods of an organization

• assumptions that members of an org may have which affect their thinking, act, and perception of environment

• collective knowledgge reflecting how organization has learned to exist

Org Culture Importance

• shapes employee behaviours + company direction

• certain cultures associated with better formance

• other cultures associated with higher employee satisfaction

Functions of culture

• defines boundarues - differentiates one org from another

• provides identity - fosters sense of belonging within org

• enhances commitment - dvlps loyalty to org

• clarifies behaviour - sets workplace behaviour standards

• shapes atttitude - influences employee mindsets and actions in workplace

Schein’s Iceberg model (1985)

• Artifacts - observable symbols and behaviours

• Values - shared beliefs and objectives

• Assumptions - deep-seated, often unconscious beliefs

How is culture formed and maintained?

• leadership

• selection

• socialisation/onboarding

• reward systems

Attraction-Selection-Attrition Model (Scheider et al, 1995)

companies attract and retain people aligned with hteir values, while those misaligned tend to depart

Hatch’s Model of Cultural Dynamics (1993)

Symbols → Assumptions → Values → Artifacts → Symbols (REPEAT! CYCLE!)

ex: customer service culture [Hatch’s Model of Cultural Dynamics]

prioritise customer service in training (symbols) → internalised belief in importance of customer service (assumptions) → customer-centric vision and policies (values) → less formalised structure, autonomous decision making (artifacts)

ex: creating an ethical culture [Hatch’s Model of Cultural Dynamics]

Role modelling + communication from leadership + reward [symbol] → employee believe ethical conduct valued [assumptions] → value transparency + accountability [values] → code of confuct, confidential reporting [artifacts]

Culture as a liabilty

• Impediment to change

• Obstacle to mergers + acquisitions

• Barrier to diversity

Organisational Climate

How employees perceive policies, practices, and procedures within an organization

Individual’s perception of climate

psychological climate

Share perceptions of climate

organizational climate

Culture vs Climate

• Culture

  • ethnological/anthropological research tradition

  • target organisations

  • focus on underlying assumptions

  • qualitative methodology

  • long-term time span

  • perspective that organisations have one

• Climate

  • psychological research tradition

  • targets individuals

  • focus on observable manifestations

  • quantitative methodology

  • short-term time span

  • perspective that organisations have many

Hatch’s Model Extended

Added artifacts → climate → behaviour → artifacts alongside basic cycle