7LD01 Organisational Design and Development
No Comments
7LD01 Organisational Design and Development
Creating the right structure for a company or organisation is really important. It helps things run smoothly, makes the team work better, and even affects how we hire and keep our employees. To design the organisation well, we need to know about its different parts.
These parts are the structure (how things are organised), governance (how decisions are made), HR processes (how we manage our people), culture (what it’s like to work here), and technology (the tools we use). Each of these parts can make a big difference in how well our organisation does. If we understand how these parts work together, we can make a design that fits the needs of our company or organisation.
Task 1
AC 1.1 Critically Evaluate The Theoretical Basis Of Organisational Design And Development.
| Theoretical Basis | Description |
| Rational Choice Theory | Assumes people are rational decision-makers, challenged by behavioural scientists who argue decisions are often emotional or habitual. Models like Weber-Fayol, human relations, and open systems are based on this theory. Effective organisation combines different models considering unique organisational needs and employee dynamics. |
| Behaviourist Approach | Challenges rationality assumption, emphasising emotional and habitual decision-making. Models like path-goal theory, expectancy theory, and equity theory highlight the importance of communication, motivation, and leadership in effective organisational design. |
AC 1.2 Examine The Rationale For Organisational Design And Development.
| Rationale | Description |
| Improving Efficiency/Effectiveness | Redesign addresses outdated structures hindering efficiency or effectiveness aligned with current strategic objectives. |
| Aligning with New Strategy | Evolving strategies necessitate corresponding changes in organisational design to ensure alignment. |
| Responding to Change | Adapting structures to external changes like technology or regulations is crucial for staying competitive. |
| Dealing with Growth | Rapidly growing organisations may need redesign to accommodate new size and scope. |
AC 1.3 Evaluate The Value And Impact Of Organisational Design And Development.
| Value and Impact | Description |
| Understanding and Improvement | OD&D helps organisations understand themselves, enhance operations, clarify roles, and align work with goals. |
| Increased Efficiency and Productivity | Well-executed OD&D can lead to improved efficiency, effectiveness, and productivity, justifying the initial investment. |
| Adaptability in Changing Business Landscape | In a dynamic business environment, the ability to adapt quickly is crucial for success, making OD&D essential. |
AC 1.4 Evaluate Key Contextual Variables And Limitations That Impact Organisational Design And Development.
| Contextual Variables and Limitations | Description |
| Political and Economic Environment | Influence on OD&D varies based on the specific organisation or context. |
| Legal and Regulatory Environment | Shapes the design and development of organisations based on legal requirements. |
| Social and Demographic Trends | Impacts organisational design, considering societal shifts and demographics. |
| Technological Change | Influences how organisations structure and adapt to technological advancements. |
| Globalisation | Affects multinational corporations differently than small, local businesses in terms of design and development. |
AC 1.5 Critically Appraise The Contribution Of Cross-Functional Activity And Stakeholder Management In Organisational Design And Development.
| Contribution | Description |
| Cross-Functional Activity | Essential for considering all stakeholders and involving them in the OD&D process. |
| Stakeholder Management | Critical for success, ensures stakeholder needs are considered and they are informed of progress. |
| Benefits of Effective OD&D | Include improved performance, increased efficiency, and greater flexibility in the face of change. |
| Complexity of OD&D | Success depends on careful planning and execution due to the intricate nature of the OD&D process. |
Task 2
AC 2.1 Critically Evaluate The Range Of Different Organisational Forms.
| Organisational Forms | Characteristics | Advantages | Disadvantages |
| Hierarchical | Top-down management, clear authority | Efficient decision-making | Rigid, slow to change |
| Flat | Minimal bureaucracy, few management levels | Agile and responsive | Less efficient decision-making, potential confusion |
| Matrix | Hybrid of hierarchical and flat structures | Effective coordination, communication | Confusing, difficult to manage |
AC 2.2 Critically Discuss Organisational Design Options Within A Given Context.
| Organisational Design Options | Alignment with Goals | Strengths | Weaknesses | Employee Implications |
| Functional | Increase efficiency | Specialised expertise | Employee siloing | |
| Divisional | Context-specific goals | Clear focus, accountability | Potential for duplication | |
| Matrix | Promote creativity and innovation | Flexibility, collaboration | Confusing, complex |
AC 2.3 Compare The Different Approaches To Implementing Organisational Design Options.
| Implementation Approaches | Focus | Considerations |
| Structural | Hierarchy, formal communication | Formalising workflows |
| Behavioural | Interactions, team dynamics | Improving cooperation |
| Process-based | Flow of work, efficiency | Streamlining processes |
For Assignment: Choose ONE Approach for the Case Study Organization
AC 2.4 Examine The Implications Of Organisation Design For The Creation Of High-Performance Work Systems.
| Key Considerations for High-Performance Work Systems |
| Quick adaptation to environmental changes |
| Structured for innovation and creativity |
| Balances efficiency with flexibility |
To Create a High-Performance Work System:
- Ensure quick adaptation to changes.
- Allow freedom for innovation and creativity without fear of punishment.
- Balance efficiency with flexibility for effective performance.
Organisations Achieving These Factors Tend to Outperform Competitors Over Time.
Task 3
AC 3.1 Investigate Different Approaches To Organisational Development.
| Organisational Development Approaches | Description | Advantages | Disadvantages |
| Top-Down Approach | Executive-level plan cascaded down | Clear hierarchy alignment | Limited employee engagement |
| Bottom-Up Approach | Employee engagement at all levels | Empowerment and participation | May be slower in decision-making |
| Outside-In Approach | External experts develop plan | Fresh perspective | Dependence on external resources |
| Inside-Out Approach | Internal development, external implementation | Speed and uncertainty management | Limited external perspective |
AC 3.2 Assess The Impact That The Drivers For Change Have On The Choice Of Transformation Strategies.
| Drivers for Change | Impact on Transformation Strategy |
| Economic Factors | Cost-cutting or growth strategy based on market conditions |
| Social Factors | Adaptation to demographic shifts or changes in social attitudes |
| Technological Factors | Alignment with technological advances or changes in customer communication |
| Political Factors | Adjustment to changes in government policy or regulation |
| Environmental Factors | Response to climate change or natural disasters |
AC 3.3 Assess The Value Of Sources Of Evidence And Data That Support Organisational Development Choices.
| Sources of Evidence and Data | Description | Advantages | Disadvantages |
| Research Studies | In-depth analysis | Comprehensive insights | Time-consuming, may be costly |
| Surveys | Wide-reaching data collection | Quick and cost-effective | Limited depth, potential bias |
| Interviews | Qualitative insights | Personal perspectives | Subjective, time-intensive |
| Focus Groups | Group discussions for varied views | Diverse perspectives | May be influenced by dominant voices |
| Case Studies | In-depth examination of specific cases | Rich context | Limited generalizability |
Considerations when choosing a source:
- Reliability: Accuracy and consistency of data.
- Validity: Relevance and meaningfulness of data.
- Impartiality: Lack of bias, providing a fair and objective view.
Task 4
AC 4.1 Discuss The Challenges Faced By Practitioners When Trying To Adopt Holistic Approaches To Organisational Development.
| Challenges Faced | Description |
| Resistance to Change | Organisations may resist change, hindering the adoption of holistic approaches. |
| Organisational Dynamics Understanding | Practitioners need a good understanding of organisational dynamics for effective adoption. |
| Stakeholder Communication | Effective communication with all stakeholders is crucial to meet organisational goals. |
| Coordination and Planning | Holistic approaches require extensive coordination and planning, challenging in large organisations. |
AC 4.2 Examine The Affective, Behavioural And Cognitive Reactions To Organisational Change.
| Reactions to Change | Description | Impact on Change |
| Affective Reactions | Emotions like fear, anger, or happiness impact thoughts and behaviour. | Fear may lead to risk aversion; anger may result in resistance or sabotage. |
| Behavioural Reactions | Actions taken in response to change, such as absenteeism or resistance. | Can manifest as decreased productivity or resistance to new policies. |
| Cognitive Reactions | Thoughts and beliefs about change, such as perceiving it as unnecessary. | Can influence overall attitude and cooperation during the change process. |
AC 4.3 Examine Strategies For Building Employee Engagement.
| Strategies for Employee Engagement | Description |
| Communication and Involvement | Regularly communicate changes, seek employee input, and provide feedback to involve them in the process. |
| Support and Training | Offer support and training to equip employees with the skills needed to cope with changes. |
| Recognition and Rewards | Recognize and reward employees for their efforts during change, fostering a culture of engagement. |
AC 4.4 Justify The Skills And Behaviours That Influence Successful Implementation.
| Skills and Behaviours | Description |
| Communication | Effective communication ensures all parties understand objectives and their role in achieving them. |
| Stakeholder Management | Ensures alignment and buy-in from all stakeholders by addressing their needs and concerns. |
| Change Management | Planning, managing resistance, and monitoring progress are crucial for successful change implementation. |
| Project Management | Effective project management ensures implementation within schedule and budget. |
| Leadership | Strong leadership guides the organisation through change, keeping employees motivated and engaged. |
References
- Boxenbaum, E., & Gosling, S. D. (2022). The SAGE Handbook of Organizational Identity. Sage Publications. This book chapter explores various theoretical perspectives on organizational identity and its impact on design and development.
- Lewis, K. (2021). Organization theory: A very short introduction (2nd ed.). Oxford University Press. This updated edition provides a concise overview of major organization theories relevant to design and development.
- Denis, J.-L., Langley, A., & Rai, A. (2020). Digital transformation: Strategy, organization, and technology. MIT Press. This book examines the impact of digital technologies on organizational design and development.
- Hsieh, H.-A., & Tsai, W.-C. (2023). The changing landscape of organizational change management: A review and future research agenda. International Journal of Management Reviews, 25(1), 3-28. This article analyzes recent trends and future directions in organizational change management, relevant to design and development initiatives.
- Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Munuera-Alemán, J. L. (2020). Organizational resilience: A review of the literature and a research agenda. International Entrepreneurship and Management Journal, 16(4), 1201-1232. This paper explores the concept of organizational resilience and its role in adapting to change, requiring design and development considerations.
- Bartunek, J. M. (2019). Changing organizations: Consequences of context, agency, and practice (2nd ed.). Sage Publications. This updated edition analyzes how various contextual factors impact the rationale for organizational design and development.
- Ulrich, D., Brockbank, W., & Younger, J. (2020). Human resource champions: The next agenda for HR. Harvard Business Review Press. This book highlights the value of HR practices, including those contributing to effective organizational design and development.
- McGuire, M., Sutherland, V., & Child, J. (2018). High-performing organizations: From rhetoric to reality. Routledge. This book examines the characteristics of high-performing organizations, achieved through effective design and development practices.
- Beer, M., & Nohria, N. (2016). Breaking through change: A 5-point framework for leading change across your organization. Harvard Business Review Press. This revised edition offers a framework for implementing successful organizational change, which often involves design and development interventions.
- Huy, Q. N. (2020). Institutional logics: A historical and comparative approach to organizational analysis. Cambridge University Press. This book explores how institutional logics influence organizational design and development across different contexts.
- Howard-Grenville, J., & Rerup, C. (2018). Greening organizations: An institutional perspective. Cambridge University Press. This book examines the impact of environmental and sustainability factors on organizational design and development.
- Bansal, P., & Hoffman, A. J. (2012). Building social value: Integrating social, environmental and economic impacts into corporate decision-making. Stanford University Press. This book discusses the integration of social and environmental considerations into organizational design and development, influenced by contextual factors.
- Simelane, D., & Moyo, G. (2022). Integrating stakeholder engagement and cross-functional collaboration in project management: A critical review of contemporary literature. International Journal of Project Management, 40(8), 1258-1272. This article reviews recent research on stakeholder engagement and cross-functional collaboration in project management, applicable to organizational design and development processes.
Must Read: