MAN ch.13

industry discontinuities

product life cycle shifts

internal company dynamics

What are the 3 types of disruption triggering large scale change?

industry discontinuities

sharp changes in legal, political, economic, and technological conditions that shift the basis for competition within an industry

product life cycle shifts

changes in product life cycle stages that require different business strategies or business models.

internal company dynamics

changes in size, corporate portfolio strategies, ownership, or executive leadership.

envisioning

energizing

enabling

engaging

what are the four key leadership roles for transformational change?

envisioning

Executives are expected to articulate a credible, compelling, and consistent vision of the organization’s strategic direction.

energizing

Executives need to demonstrate personal excitement for the changes and model the behaviors that are expected of others.

enabling

Communication that helps organization members make sense of the transformation contributes to acceptance of large-scale change.

engaging

Executives also need to set new and sometimes uncomfortable performance standards and hold management teams accountable to them.

multiple stakeholders

systemic nature

significant learning

what are the key aspects of large-scale change?

multiple stakeholders

impacts diverse internal and external stakeholders; understanding and reconciling their goals is crucial for gaining support and enhancing performance

systemic nature

reshaping the organization’s strategy and organization design to affect culture and performance

they realign strategy, design, and culture with the environment

significant learning

significant shifts in mental or organizational frameworks and therefore requires considerable learning and innovation

members are expected to learn new behaviors associated with new paradigms like sustainability or customer focus

structure

work processes

human resource processes

management processes

what are the components of organization design?

structure

describes how the organization identifies and categorizes tasks, assigns them to departments, and coordinates across them

work processes

describe the high-level tasks and routines that add value for the customer

human resource processes

involve attracting, developing, and rewarding people

management processes

describe how goals are set and decisions are made and how resources and information are shaped

mechanistic design

organic design

what are the two distinct and fundamental organization designs?

mechanistic design

supports a cost-minimization strategy and utilizes a functional structure that is coordinated by a managerial hierarchy

work designs are traditional, with standardized jobs and low decision making responsibility

organic design

aligns with a strategy focused on flexibility and innovation

involves employees in the innovation process, fosters interaction, and rewards expertise

enriched jobs and self-managed teams

international

global

multinational

transnational

what are the different worldwide organization designs?

international design

appropriate when global integration and local responsiveness are low

success requires the relatively straightforward coordination between headquarters and its foreign sales offices

goal of international design

to increase sales from non domestic markets by leveraging existing products/services and extending domestic operating capacity

global design

appropriate when global integration requirements are high but the need for local responsiveness is low. This situation occurs when the worldwide market is relatively homogenous, allowing for standardization of products and services without affecting local sales or customer loyalty.

multinational design

suitable when the requirements for global integration are low but local responsiveness requirements are high. This tends to occur when different worldwide markets require customized and localized products and services

transnational design

works well when both global integration and local responsiveness are high. This worldwide design combines customized products with efficient and responsive operations.

diagnosing the current design

designing the organization

implementing and evaluating the design

what are the application steps of worldwide organization design?

self-design

describe how OD practitioners can help organizations change their designs to achieve higher performance in turbulent environments. The approach promotes learning among members at all levels of the organization, providing them with the knowledge and skills needed to continuously redesign it.

clarifying the strategy

laying the foundation

creating design criteria

designing

implementing and assessing

what are the five stages of self-design?

formulate a clear strategic vision

display top-management commitment

modify the organization to support change

select and socialize newcomers and terminate deviants

what are the steps for implementing culture change in an organization?