SYSTEMS AND CONTINGENCY APPROACH

TO ORG THEORY & PRACTICE

AND
TECHNIQUES OF ORGANISATIONAL
DIAGNOSIS
Facilitator and Course Coordinator:

Vinayshil Gautam PhD, FRAS(London)

(Founder Director IIM K; Leader Consulting Team IIM S)
A Al_Sager Chair Professor and First Head,
Management Department, IIT D
Chairman, DKIF
1

Theories and their

importance
A theory is a set of assumptions or
principles that have been repeatedly
tested to explain or predict facts or
phenomena
Theories:

Provide a conceptual framework

Provide a common vocabulary
Guides action
Assists comprehension or judgment
Challenge practice wisdom
2

Systems Theory
Ludwig Von Bertalanffy, has long been
regarded as the Founder of Systems
Theory
He argued that all systems, whether
organic or organisational, shared similar
characteristics & could be analysed in
similar terms
3

Systems Theory
Views the organization as a
system of interrelated parts that
function in a holistic way to
achieve a common purpose.

McGraw-Hill

Systems concept: Environment

Organisations are open to their
environments

Systems Concepts: Adaptation

To survive the organisations must adapt to

its

environment
All non-random functioning systems have:
Inputs

Processes

Output

Feedback loop with criteria

An organisation that does not produce what is

reqd by its environment must either change or
disappear
6

Systems Concepts:
Boundaries
Boundaries are the interface between a
system and its subsystems or a system
and its environment.
By examining the boundaries of a
system, we can often isolate the friction
and its causes.

Systems Concepts: Goal Seeking

Organisations & Organisational
subsystems tend to be goal seeking, that
is, they move in the direction of goal
achievement.
The primary goal of a system is survival.

Systems Concepts: Cybernetics

For a system to work properly, it must have
feedback and control mechanisms
Feedback and control mechanisms
Accept information about system outputs
Evaluate information using goal related criteria
Use evaluative information as additional i/p

Systems Concepts: Differentiation

Organisations are complex systems
Different subsystems become specialised
through catering for different aspects of
organisation
Various depts of any business org e.g.,
prodn, marketing, finance etc, are all
geared to a very different environment
10

Systems Concepts:

Synergy
Systems working well experience
synergy where the total system output
are greater than the sum of all inputs.
For synergy to occur, subsystems must
not optimize, but cooperate for the
good of the overall system, e.g.,
Teamwork.
Synergy is also called nonsummativity
11

Contingency Theory
Or
It all depends on the situation

12

Contingency Theory
States that there is no one best way to manage
an organization.
Because what works for one organization may
not work for another
Situational characteristics (contingencies) differ
Managers need to understand the key
contingencies that determine the most effective
mgt practices in a given situation
13

Technology
Lots of research since 1950 has taken
place to identify the effects of technology
upon organisations
Research by Woodward & Tavistock
Institute indicated that Technology
influenced :

14

 Degree of Job dissatisfaction

Behaviour of Work groups
Pattern of Industrial relations
Structure of Organisations

15

Technology & Degree Of

Job Dissatisfaction
Different technologies have different
effect upon nature of work & degree of
job dissatisfaction
Blauner distinguished between four
different technologies :

16

 Craft technology (printing)

Machine-minding technology
(textile)
Mass prodn technology
Process technology (chemical)

17

Levels of Alienation suffered by

people due to different technologies

18

Technology & Behaviour

Of Work Groups
Sayles suggested that technology
determines not only the formation of work
groups but also their behaviour
Factors determining the formation of work
groups :
- Worker skill level reqd by technology
Degree of interactions between workers
permitted by technology
19

20

Technology & Industrial

Relations

21

Technology & Organisational

Structure
J Woodward carried out one of the most
influential studies to discover whether
principles of organisations laid down by
an expanding body of Mgt theory
correlates with business success when
put into practice

22

 Methodology :
About hundred firms were taken as a sample
They were divided into 3 general categories
based on their method of production :
-

Simple units & small batch prodn methods

Large batch & mass prodn methods

Complex process prodn methods

All these firms were placed along what she

called continuum of technological complexity

23

 Main Findings :
Firms with similar methods of prodn were
organised in a similar way
Firms at either end of continuum had similar
characteristics
There was a relationship between technology,
organisational structure & economic success
There was a relationship between technology
and the pattern of industrial relations

24

25

Socio-Technical Systems
Socio-technical theory evolved from the field work
of researchers from Tavistock Institute of Human
Relations
Principle finding was that there are social
implications for every implementation of change
Measures suggested :
- Set up a structure for intergroup
communications to solve any problems groups
might experience

26

- Develop company code to govern relations

between people at different levels
- Counseling of workers in groups to
express feelings constructively

In Tavistock view, a healthy organisation

is one which is capable of tackling in a
realistic manner whatever technical,
economic, or social problems it might
encounter
27

SOCIOTECHNICAL SYSTEMS
THEORY EVOLVED FROM THE FDWORK OF
RESEARCHERS OF TAVISTOCK INSTITUTE OF
HUMAN RELATIONS
DEVELOPING OF METHODS FOR SYSTEMATIC
OBSERVATION OF HUMAN BEHAVIOUR IN
ORGANISATIONS SO AS TO SOLVE SOCIAL
PROBLEMS.

28

 PROBLEM

SERVICE DEPARTMENT - PIECEWISE PAY VIS A VIS

FIXED PAY.
NO CONCERN FOR THE WORKERS INTEREST.
MANAGERS AND WORKERS SHOWED LACK
OFTRUST
FOR EACH OTHER.
RESEARCHERS SUGESSTIONS
MGMT WORKER INTERRELATIONSHIP.
MORALE BUILDING.
29

TAVISTOCK RESEARCH
THE BASIC PRINCIPLE WAS THERE ARE SOCIAL
IMPLICATIONS FOREVERY IMPLEMENTATION OF CHANGE.

SETUP STRUCTURE FOR INTERGROUP COMMUNICATION TO

DEAL WITH THE PROBLEMS

DEVELOPMENT OF A COMPANY CODE GOVERNING THE

RELATION BETWEEN PEOPLE AT DIFFERENT LEVELS.

MANAGERS SHOULD BE MORE RESPONSIVE TO

ORGANISATIONAL PROBLEMS.

BASIC PROBLEM IS MAINTAINING A STRUCTURE AND CULTURE

TO COPE WITH CHALLENGES OF A CHANGING SOCIETY.

HEALTHY ORGANISATION - ONE WHICH IS CAPABLE OF

TACKLING THE PROBLEMS IN A REALISTIC MANNER.
30

SOCIOTECNICAL SYSTEMS THEORY

ORGANISATIONS ARE OPEN SYSTEMS.
DEPEND ON THE ENVIRONMENT FOR RAW MATERIALS
AS INPUTS AND FOR MARKETS TO ABSORB THEIR
OUTPUTS OR PRODUCTS.
CONSIST OF SEVERAL SUBSYSTEMSTO DEFINE THE
INTERNAL PROCESSES.
31

ORGANISATIONAL SYSTEM
ENVIRONMENTAL SYSTEM
GOALS &VALUES SUBSYSTEM
CULTURE
PHILOSPHY
OVERALL GOALS
INDIVIDUAL GOALS

PSYCHOSOCIAL
SUBSYSTEM

MANAGERIAL SUBSYSTEM
GOAL SETTING
.
PLANNING
ASSEMBLING
RESOURCE
ORGANISING
IMPLEMENTATION

HR
ATTITUDES
MOTIVATION
GP DYNAMICS
LEADERSHIP
INFLUENCE SYSTEMS

TECHNICAL SUBSYSTEM

TASK REQUIREMENT
KNOWLEDGE
TECHNIQUES
LAYOUT OF FACILITIES
MACHY EQUIPMENT
INFORMATION

STRUCTURAL SUBSYSTEM
TASKS
WORK FLOWS
WORK GROUPS
AUTHORITY
INFORMATION FLOWS
PROCEDURES & RULES
32

TECHNICAL SUBSYSTEM

ORGANISATION REQUIRES STRUCTURING AND

INTEGRATING HUMAN ACTIVITIES AROUND
VARIOUS TECHNOLOGIES.
EVERY MODERN ORGANISATION IS INFUENCED BY
THE RAPID ACCELERATION OF TECHNOLOGY IN
OUR SOCIETY.

33

AFFECTS THE TYPES OF INPUTS AND THE OUTPUTS

FROM THE SUBSYSTEM AND THUS THE TASK
ACCOMPLISHMENT.

WAYS IN WHICH THE ORGANISATION ADAPTS TO

THE CHANGING TECHNOLOGY HAS A SIGNIFICANT
IMPACT ON THE OTHER ORG SUBSYSTEMS.

34

TECHNICAL SUBSYSTEM

DEFINITION
MECHANISTIC VIEW - THE MECHANICAL
MEANS FOR PRODUCTION OF GOODS AND
SERVICES AND REPLACEMENT OF HUMAN EFFORT.

35

 TECHNOLOGY IS FAR MORE THAN THE MACHINE

AND REFERS TO STANDARISED MEANS FOR
ATTAINING A PREDETERMINED OBJECTIVE OR
RESULT. THUS CONVERTS SPONTANEOUS AND
UNREFLECTIVE BEHAVIOUR INTO BEHAVIOUR THAT
IS DELIBERATE AND RATIONALISED AND RESULTS
IN ABSOLUTE EFFICIENCY IN EVERY FIELD OF
HUMAN ACTIVITY.
----JACQUES ELLUL.

36

DETERMINED BY THE
-

TASK REQUIREMENTS OF AN ORG.

KNOWLEDGE AND SKILLS
MACHINERY AND EQPT INVOLVED.
TECHNIQUES.
LAYOUT OF FACILITIES.
INFORMATION

38

TECHNICAL SUBSYSTEM
ACCELERATING TECHNOLOGY
SCIENCE AND TECHNOLOGY PERVASIVE FORCES IN MODERN

SOCIETY.

IMPACTED THE SOCIAL STRUCTURE AND CULTURE.

AUTOMATION - REPLACED HUMAN DECISION MAKING IN THE
CONTROL PHASE.
EFFECTIVE UTILISATION OF TECHNOLOGIES REQUIRE THE
DEVELOPMENT OF COMPLEX ORGANISATIONS.

39

DANGERS OF TECHNOLOGY
WILL DRIVE OUT HUMANISTIC AND SOCIAL
CONSIDERATIONS.
TOTAL INTEGRATION OF MAN INTO THE TECHNICAL
SYSTEM(SOCIOCULTURAL STRUCTURE).

CHANGES IN VAUES AND GOALS.

CHALLENGE TO PROFIT FROM ITS OPPORTUNITIES

ANDCONTAINING ITS DANGERS.

INTERACTION BETWEEN THE TECH AND

PSYCHOSOCIAL SYSTEM IS A DETERMINANT OF
THE RELATIONSHIP BETWEEN TECHNOLOGY AND
SOCIETY.
40

TECHNICAL SUBSYSTEM
CLASSIFICATION OF TECHNICAL SYSTEMS
BASIS OF PRIMARY FN - SCHOOLS , HOSPITALS,UNIONS, ETC.

TECHNICAL SYSTEM BASIS.

INDUSTRIAL ORGANISATIONS SMALL BATCH MASS
PRODUCTION AND CONTINUOUS PROCESS.

41

CLASSIFICATION BY THOMPSON

LONG LINKED TECHNOLOGY INVOLVES SERIAL

INTERDEPENDENCE BETWEEN VARIOUS
PRODUCTION UNITS ,eg FULLY AUTOMATED ASSY
LINE.

MEDIATING TECHNOLOGY - INVOLVES JOINING OF

CLIENTS &CUSTOMERS ,OTHERWISE
INDEPENDENT,eg BANKS, POST OFFICES.
INTENSIVE TECHNOLOGY DEAL WITH SPECIFIC
PROBLEMS,eg R&D, HOSPITALS.
THE TWO PRIMARY DIMENSIONS HERE ARE
COMPLEXITY AND DEGREE OF UNIFORMITY OR
NONUNIFORMITY.
42

TECHNICAL SUBSYSTEM
PROBLEMS

ADAPTING TO ONE TECHNOLOGICAL COMPONENT.

INTEGRATING AND COORD A NO OF DIFFERENT

TECHNOLOGIES WITHIN THE ORG SYSTEM.

43

TECHNICAL SUBSYSTEM

IMPACT OF TECHNICAL SYSTEM

TRADITIONALLY , TECHNOLOGICAL COMPONENT WAS

CONSIDERED AS A CLOSED SYSTEM DID NOT HAVE
ANY DYNAMIC INTERACTION WITH OTHER SYSTEMS .

LEAD TO UNREALISTIC AND IDEALISTIC

GENERALISATIONS..
ACTUALLY TECHNOLOGY AND OTHER SYSTEMS ARE
INDEPENDENTLY RELATED.

44

 THREE

BASIC WAYS IN WHICH TECHNOLOGY INFLUENCES

BEHAVIOUR THROUGH ITS EFFECT ON OTHER INPUTS.
- HUMAN INPUTS REQUIRED BY AN ORG.
- GROSS FEATURES OF ORG STRUCTURE AND
PROCEDURES.
- DETERMINANT OF INDIVIDUAL AND GROUP JOB
DESIGNS/SOCIAL STRUCTURE AND NORMS.

45

TECHNICAL SUBSYSTEM
CLASSIFICATION OF TECHNICAL SYSTEMS

BASIS OF PRIMARY FN - SCHOOLS ,

OSPITALS,UNIONS, ETC.

TECHNICAL SYSTEM BASIS.

INDUSTRIAL ORGANISATIONS SMALL BATCH,
MASS.PRODUCTION AND CONTINUOUS PROCESS

46

CLASSIFICATION BY THOMPSON
LONG LINKED TECHNOLOGY INVOLVES SERIAL
INTERDEPENDENCE BETWEEN VARIOUS PRODUCTION
UNITS ,eg FULLY AUTOMATED ASSY LINE.
MEDIATING TECHNOLOGY - INVOLVES JOINING OF
CLIENTS &CUSTOMERS ,OTHERWISE INDEPENDENT,eg
BANKS, POST OFFICES.
INTENSIVE TECHNOLOGY DEAL WITH SPECIFIC
PROBLEMS,eg R&D, HOSPITALS.
THE TWO PRIMARY DIMENSIONS HERE ARE
COMPLEXITY AND DEGREE OF UNIFORMITY OR
NONUNIFORMITY.
47

TECHNICAL SUBSYSTEM
IMPACT UPON STRUCTURE
RESEARCH BY JOAN WOODWARD.
DIRECT CORRELATION BETWEEN TECHNOLOGY
AND ORG STRUCTURE .
ORG CHARACTERISTICS WHICH SHOW A DIRECT
RELATIONSHIP WITH TECH ADVANCE ARE :-

48

- LENGTH OF LINE OF COMMAND

INCREASES IN VERTICAL LEVELS.
- SPAN OF CONTROL - INCREASED FROM 4 10, BY
MANAGEMENT AND COMMITTEE.
- SALARIES AND WAGES.
- MANAGER /PERS RATIO INCREASED.
- STAFF-WORKER RATIO LARGER.
- SUPERVISION LEVEL HIGHER.
SYSTEM OF PRODUCTION LEAD TO DIFFERENT
STRUCTURE.
OPERATIONS TECHNIQUES HAD LIMITED IMPACT ON
THE COORDINATIVE SYSTEM.
STRATEGIC LEVEL ENVIRONMENTAL INFLUENCES ON
THE BROAD ADMINISTRATIVE STRUCTURE
49

TECHNICAL SUBSYSTEM
IMPACT ON PSYCHOSOCIAL SYSTEM

TRADITIONALLY , ASSUMPTION WAS ADAPTATION,

BUT IT AFFECTS THE
- NETWORK OF SOCIAL RELATIONS AMONG
WORKERS.
- SIZE AND COMPOSITION OF WORKGROUPS IN
RANGE, CHARACTER, FREQUENCY OF CONTACT
WITH FELLOW WORKERS AND SUPERVISORS.

.
50

- LEAD TO JOB INSECURITIES.

- STATUS POSITION OF THE WORKER
.
- PHYSICAL AND SOCIAL MOBILITY.
- OUTMODED JOBS.
- SELF IMAGE AND MOTIVATION

51

TECHNICAL SUBSYSTEM
IMPACT ON PSYCHOSOCIAL SYSTEM

INCREASED SPECIALISATION RESULTED IN

GREATER PREDICTABILITY OF WORK BEHAVIOUR
AND INCREASED DISCIPLINE IN THE WORKPLACE.

ASSY LINE AFFECTS THE SOCIAL ORGANISATION

IN
TERMS OF SIZE , FN AND INTERACTION OF
WORKGROUPS, INTERPERSONAL RELATIONSHIP,
RELATIONSHIP WITH THE SUPERVISORS, WAGE
STRUCTURE AND PROMOTIONAL ASPECTS.
52

 ALIENATION AND DISSATISFACTION IN ASSY,

LINE WORKERS AND MORE MOTIVATION
INTEGRATION AND SATISFACTION IN CRAFT
AND CONTINUOUS PROCESS.
EMOTIONAL STRESS , LACK OF GP IDEN
WHICH LEAD TO LOSS OF PRODUCTIVITY.

53

TECHNICAL SUBSYSTEM
REMEDIAL MEASURES

INCREASED PRODUCTION.

PERSONAL SATISFACTION.
QUALITY AND EFFICIENCY.
MAINT HIGH LEVEL OF GROUP MORALE.
BETTER COORDINATION.
JOB ENRICHMENT.
LEAD TO INCREASED ORGANISATIONAL
EFFECTIVENESS AND EFFICIENCY
54

TECHNICAL SUBSYSTEM
IMPACT ON MANAGERIAL SYSTEM
SPECIALISED SKILLS AND TRAINING

IMPACT ON STAFF AND FUNCTIONAL PERSONNEL,

MIDDLE AND LOWER LEVEL MANAGERS.

55

 ROLE OFFIRST LINE MANAGER REQUIRED TO

INTEGRATE ACTIVITIES ACROSS A BROADER
SPECTRUM
SUPERVISORY REQUIREMENTS BOTH IN
TERMS OF TECHNICAL AND HUMAN
RELATIONS HAVE INCREASED.
TRADITIONAL SYSTEM PRIMARY
CONSIDERATION WAS
GIVEN TO THE DIFFERENTIATION OR
SEGMENTATION OF ACTIVITIES INTO
SUBSYSTEMS FOR TASK PERFORMANCE.

56

TECHNICAL SUBSYSTEM
IMPACT ON MANAGERIAL SYSTEM
IN TRADITIONAL SYSTEMS PRIMARY CONSIDERATION
WAS GIVEN TO DIFFERENTIATION OF ACTIVITIES INTO
SUBSYSTEMS.

IN COMPLEX ORGANISATIONS INCREASED

DIFFERENTIATION RESULTED IN INTEGRATION
PROBLEMS IN THE VARIOUS SUBSYSTEMS.

57

BURNS AND STALKER

MECHANISTIC ADAPTED TO STABLE SYSTEM

- RIGID ORG STRUCTURE RESEMBLANCE TO
BUREACRACY
-

WELL DEFINED TASKS,AND THE METHODS , DUTIES

AND POWERS OF EACH FUNCTIONAL ROLE WERE
DETERMINED PRECISELY.

COORDINATIONS &INTERACTIONS WERE VERTICAL

COMMAND HIERARCHY.

58

TECHNICAL SUBSYSTEM
ORGANIC SYSTEMS

ADAPTED TO RAPIDLY CHANGING TECHNOLOGY AND

ENVIRONMENT .

SUITABLE TO UNSTABLE CONDITIONS.

FLEXIBLE STRUCTURE.
CONTINUOUS ADJUSTMENT AND REDIFINING OF
INDIVIDUAL TASKS THROUGH INTERACTION A
NETWORK.

59

 LATERAL COMMUNICATION ,WIDE DISPERSAL

OF POWER BASED ON TECHNICAL EXPERTISE
AND KNOWLEDGE.
AUTHORITY AND SUPERIORNOWLEDGE DO NO
NECESSARILY COINCIDE
THE PROBLEM - INSECURITY ON THE PART OF
MANAGERS.
INNOVATIVE JUDGEMENTAL DECISION MAKING
WHERE STRESS IS ON PROBLEM SOLVING.
BUREACRATIC JUNGLE
60

ORGANISATIONAL SYSTEM
GOALS &VALUES
SUBSYSTEM

ENVIRONMENTAL SYSTEM

TECHNICAL
SUBSYSTEM

CULTURE
TASK REQUIREMENT
KNOWLEDGE
PHILOSPHY
TECHNIQUES
OVERALL GOALS
MANAGERIAL SUBSYSTEM
LAYOUT OF
INDIVIDUAL GOALS
FACILITIES
GOAL SETTING
.
MACHY EQUIPMENT
PLANNING
INFORMATION
ASSEMBLING
RESOURCE
PSYCHOSOCIAL ORGANISING
SUBSYSTEM
IMPLEMENTATION
STRUCTURAL SUBSYSTEM
TASKS
HR
ATTITUDES
MOTIVATION
GP DYNAMICS
LEADERSHIP
INFLUENCE SYSTEMS

WORK FLOWS
WORK GROUPS
AUTHORITY &1`ORG CHARTS
INFORMATION FLOWS
PROCEDURES & RULES
61

STRUCTURAL SUBSYSTEM
ESTABLISHED PATTERN OF RELATIONSHIPS AMONG
THE COMPONENTS OR PARTS OF AN ORGANISATION
THAT ARE RELATIVELY STABLE AND THAT CHANGE
SLOWLY .
INFERRED FROM THE ACTUAL OPERATIONS AND
BEHAVIOUR OF THE ORGANISATION .
ARRANGEMENT OF ITS SUBSYSTEMS AND
COMPONENTS IN THREE DIMENSIONAL SPACE AT A
GIVEN MOMENT OF TIME.

62

STRUCTURE AND ITS FUNCTIONS ARE

SEPARATE PHENOMENA BUT CANNOT BE
LOOKED AT AS COMPLETELY SEPERATED.

INITIALLY SET FORTH BY THE DESIGN OF THE

MAJOR COMPONENTS OR SUBSYSTEMS AND
THEN BY THE EST OF PATTERNS OF
RELATIONSHIP AMONG THESE SUBSYSTEMS.
INTERNAL DIFFERENTATION AND PATTERN OF
RELATIONSHIPS WITH SOME DEGREE OF
PERMANENCY REFERRED TO AS
STRUCTURE.

63

STRUCTURAL SUBSYSTEM

FORMAL AND INFORMAL STRUCTURES.

FORMAL SLOW IN RESPONDING TO EXTERNAL

CHANGES SUCH AS TECHNOLOGY CHANGES THUS
INFORMAL RELATIONSHIPS DEVELOP
INFORMAL ADAPTIVE AND SERVE TO PERFORM
INNOVATIVE FUNCTIONS.

64

 TRADITIONALLY CONCENTRARATION WAS ON

THE FORMAL ORG STRUCTURE AND
INFORMAL RALATIONS WERE OF CONCERN
BOTH ARE INTERMESHED .
DIFFICULT TO UNDERSTAND THE NATURE OF
FORMAL ORG WITHOUT INVESTIGATING THE
NETWORKS OF INFORMAL RELATIONS AND
THE UNOFFICIAL NORMS AS WELL AS THE
FORMAL HIERARCHY OF AUTHORITY AND THE
OFFICIAL BODY OF RULES..
CLEAVAGE BETWEEN THE TWO IS ARTIFICIAL.
TWO BASIC MODELS MATRIX.

BUREACRATIC AND
65

STRUCTURAL SUBSYSTEM
IMPACT OF SOCIOCULTURAL ENVIRONMENT

RESEARCH BY STINCHCOMBE

STRUCTURE AT THE STRATEGIC LEVEL HAS A GREAT

IMPACT OF THE FORCES IN THE TASK
ENVIRONMENT.
MNCS STRONGLY INFLUENCED BY THE DIFFERING
CULTURES IN WHICH IT OPERATES AND HAS TO
ADAPT ITS GOALS STRUCTURE AND MANAGERIAL
APPROACH TO THE DIFFERENT CULTURE.

66

STRUCTURAL SUBSYSTEM
IMPACT OF SOCIOCULTURAL ENVIRONMENT
RESEARCH BY CHANDLER
CHANGING POPULATION ,INCOME ,TECHNOLOGY,
AND OTHER FORCES IN THE ENVIRONMENT LED
TO EXPANSIO OF THESE FIRMS INTO NEW FIELDS.
STRATEGY OF DIVERSIFICATION AND EXPANSION
LED TO MAJOR MODIFICATIONS IN STRUCTURE

67

 LED

TO ADOPTION OF A MULTIDIVISIONAL
STRUCTURE.
- CENTRAL CORPORATE OFFICE PLANS AND
COORDINATES THE ACTIVITIES OF A NUMBER
OF OPERATING DIVISIONS AND ALLOCATES
PERS ,FACILITIES ,FUNDS AND OTHER
RESOURCES.
-

OPERATIONS ARE DECENTRALISED TO THE

OPERATING DIVISIONS WHICH HAVE A
SUBSTANTIAL DEGREE OF AUTONOMY.

68

STRUCTURAL SUBSYSTEM
IMPACT OF SOCIOCULTURAL ENVIRONMENT
STRUCTURE OF CONGLOMERATES
- SMALL CORPORATE HQs.
- DO NOT EXERCISE STRICT CONTROLOR
COORDINATE ACTIVITIES OF THE OPERATING
UNITS

69

- SUBUNITS ARE SELF CONTAINED AND

AUTONOMOUS
- INTEGRATION ACHIEVED THROUGH
CORPORATE DIVISIONAL INTERACTIONS WITH
MINIMUM DIVISION TO DIVISION
INTEGRATION.
- THE BASIC STRATEGY IS TO INTEGRATE AT
THE STRATEGIC LEVEL.
IMPACT OF TECHNOLOGY ,SIZE AND
COMPLEXITY OF ORGANISATIONS.

70

ORGANISATIONAL SYSTEM
GOALS &VALUES
SUBSYSTEM

ENVIRONMENTAL SYSTEM

CULTURE
PHILOSPHY
OVERALL GOALS
MANAGERIAL SUBSYSTEM
INDIVIDUAL GOALS

PSYCHOSOCIAL
SUBSYSTEM
HR
ATTITUDES
MOTIVATION
GP DYNAMICS
LEADERSHIP
INFLUENCE SYSTEMS

GOAL SETTING
.
PLANNING
ASSEMBLING
RESOURCE
ORGANISING
IMPLEMENTATION

TECHNICAL
SUBSYSTEM
TASK REQUIREMENT

KNOWLEDGE
TECHNIQUES
LAYOUT OF FACILITIES
MACHY EQUIPMENT
INFORMATION

STRUCTURAL
SUBSYSTEM
TASKS
WORK FLOWS
WORK GROUPS
AUTHORITY &1`ORG
CHARTS
INFORMATION FLOWS
PROCEDURES & RULES
71

PSYCHOSOCIAL SUBSYSTEM
INDIVIDUAL AND THEIR RELATIONSHIPS ARE THE
PRIMARY ELEMENTS OF THIS SUBSYSTEM.
PSYCHOSOCIAL SYSTEMS CAN BE UNDERSTOOD
INTERMS OF MOTIVATION AND BAHAVIOUR
OCCURRING IN AN ENVIRONMENT WHICH
INCLUDES

72

STATUS & ROLE SYSTEMS

-SERVE TO STRUCTURE SOCIAL RELATIONSHIPS AND
PROVIDE A FRAMEWORK WHERE GP ENDEAVOR CAN
BE COORD TOWARDS OBJECTIVESS.
-ROLE SYSTEMS ARE INTEGRALLY RELATED WITH
STATUS SYSTEM.
-STATUS CONCERNS THE RELATIVE PRESTIGE OF A
POSITION IN A STRUCTURAL RELATIONSHIP WITHIN
ORGANISATIONS.
-ROLE RELATES TO THE BEHAVIORAL PATTERNS IDENT
FOR A GIVEN POSN.

73

PSYCHOSOCIAL SUBSYSTEM
GROUP DYNAMICS
SMALL GPS PROVIDE A MEDIATING MECHANISM
BETWEEN INDLS AND ORGS.
ACTIVITIES, INTER ACTION AND SENTIMENTS PLAY AN
IMP PART IN ORG BEHAVIOUR.
INDLS HIGH LEVEL NEEDS (SOCIAL ESTEEM AND SELF
ACTUALISATION) ARE SATISFIEDVIA HIS POSITION IN A
SMALL GP OR A LARGE ORG.
COMMUNICATION IS THE BASIS OF GROUP DYNAMICS.

74

PSYCHOSOCIAL SUBSYSTEM
INFLUENCE SYSTEMS
INCLUDES VIRTUALLY ANY INTERPERSONAL
TRANSACTION WHICH HAS PSYCHOLOGICAL OR
BEHAVIORAL EFFECTS.
EXERTED IN MANY DIRECTIONS - UP AND DOWN THE
HIERARCHY AND LATERALLY IN PEER GROUP
RELATIONSHIPS.
CHANGES IN BEHAVIOR OF A PERS/GROUP DUE TO
ANTICIPATION OF THE RESPONSE OF OTHERS
RELATIONSHIPS AMONG PEOPLE.
WAYS TO INFLUENCE BEHAVIOUR - EMULATION
,SUGGESTION PERSUASION, COERCION.
75

PSYCHOSOCIAL SUBSYSTEM
LEADERSHIP
ABILITY TO PERSUADE TO SEEK DEFINED OBJECTIVES
ENTHUSIASTICALLY .
BINDS A GROUP TOGETHER AND MOTIVATES IT TOWARDS GOALS.
TAPPING OF LATENT HUMAN CAPABILITY IN ACHIEVING GROUP
OBJECTIVES.
MGMT ACTIVITIES SUCH AS PLG ORG AND DM ARE DORMANT
COCOONS UNTIL THE LEADER TRIGGER THE POWER OF
MOTIVATION IN PEOPLE AND GUIDES THEM TOWARDS GOALS.
76

PSYCHOSOCIAL SUBSYSTEM
HR ATTITUDES.
NORMS, VALUES AND CULTURE OF THE ORG MAKE UP
THIS SUB SYSTEM.
INCLUDES SOCIAL RELATIONSHIPS AND COMMON
NETWORK.

77

HOW PEOPLE COMMUNICATE AND ACTUALLY

DO THE WORK, STRONGLY INFLUENCES THE
ORG THROUGH THE PSYCHOSOCIAL
SUBSYSTEM.
TAVISTOCK EXPERIMENTS PROBLEM WAS
WORKERS HAD PROBLEM COMMUNICATING
WITH MANAGEMENT.
WHEN A PERSON ENTERS OR LEAVES THE
ORG THE PSYCHOSOCIAL SYSTEM CHANGES.

78

FACTORS AFFECTING HUMAN

BEHAVIOUR
REWARD SYSTEM
ECONOMIC,INCENTIVES

CURRENT
PAST EXPERIENCE
PERSONAL
SITUATION
PERCEPTION

MANAGERIAL SYSTEM
PERSONAL VALUE SYSTEM
(PLG & CONT DECISIONS (ATTITUDES ,PROPENSITIES TO ACT)
LEADERSHIP)
COGNITION

GROUP RELATIONDHIPS

MOTIVATION

WORK SITUATION
(TASK &TECHNOLOGY)
CULTURE (NORMS )
79

ORGANISATIONAL SYSTEM
ENVIRONMENTAL SYSTEM
GOALS &VALUES SUBSYSTEM
CULTURE
PHILOSPHY
OVERALL GOALS
INDIVIDUAL GOALS

PSYCHOSOCIAL
SUBSYSTEM

MANAGERIAL SUBSYSTEM
GOAL SETTING
.
PLANNING
ASSEMBLING
RESOURCE
ORGANISING
IMPLEMENTATION

HR
ATTITUDES
MOTIVATION
GP DYNAMICS
LEADERSHIP
INFLUENCE SYSTEMS

TECHNICAL SUBSYSTEM

TASK REQUIREMENT
KNOWLEDGE
TECHNIQUES
LAYOUT OF FACILITIES
MACHY EQUIPMENT
INFORMATION

STRUCTURAL SUBSYSTEM
TASKS
WORK FLOWS
WORK GROUPS
AUTHORITY
INFORMATION FLOWS
PROCEDURES & RULES
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MANAGERIAL SUBSYSTEM
MGMT PROCESS OF INTEGRATING HUMAN AND
MATERIAL RESOURCES INTO A TOTAL SYSTEM FOR
OBJECTIVE ACCOMPLISHMENT.
LINKS OTHER PRIMARY SUBSYSTEMS OF ORGS.
INTEGRATES ACTIVITIES TOWARDS ACHIEVEMENT
OF EXPLICIT/IMPLICIT GOALS.

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PLG & CONT ARE THE PRIMARY ACTIVITIES

INVOLVED IN INTEGRATING PURPOSEFUL ORG
ACTIVITY.
PLG & CONTROL HAVE TO CONSIDERTHE
IMPACT OF EXTERNAL ENVIRONMENTAL
SYSTEM AND THE INTERNAL TECHNICAL AND
PSYCHOSOCIAL SYSTEM.
BEHAVIOUR IS GOAL ORIENTED AND HUMAN
BEINGS MOVE TOWARDS GOALS BY CHOOSING
AN ALTERNATIVE.
BEHAVIOUR IS A RESULT OF SEQUENCE OF DM.
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ORGANISATIONAL SYSTEM
ENVIRONMENTAL SYSTEM
GOALS &VALUES SUBSYSTEM
CULTURE
PHILOSPHY
OVERALL GOALS
INDIVIDUAL GOALS

PSYCHOSOCIAL
SUBSYSTEM

MANAGERIAL SUBSYSTEM
GOAL SETTING
.
PLANNING
ASSEMBLING
RESOURCE
ORGANISING
IMPLEMENTATION

HR
ATTITUDES
MOTIVATION
GP DYNAMICS
LEADERSHIP
INFLUENCE SYSTEMS

TECHNICAL SUBSYSTEM

TASK REQUIREMENT
KNOWLEDGE
TECHNIQUES
LAYOUT OF FACILITIES
MACHY EQUIPMENT
INFORMATION

STRUCTURAL SUBSYSTEM
TASKS
WORK FLOWS
WORK GROUPS
AUTHORITY
INFORMATION FLOWS
PROCEDURES & RULES
83

GOALS AND VALUE SUBSYSTEM

BASIC VALUES WHICH UNDERLIE GOAL SETTING AND
DM ARE A FUNDAMENTAL PART OF THE ORG SYSTEM.
NORMATIVE VIEWS OF WHAT IS GOOD AND DESIRABLE.
PROVIDE STANDARDS WHICH INFLUENCES CHOICE OF
ACTIONS.
SOCIAL VALUES REFLECT A SYSTEM.
CULTURAL VALUES PROVIDE COHESIVENESS

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FIVE LEVELS.
INDIVIDUAL VALUES.
GROUP VALUES AFFECT INDL BEHAVIOUR
AND ACTIONS OF ORG.
ORGANIZATIONAL VALUES.
VALUES OF CONSTITUENTS CUSTOMERS,
COMPETITORS OF ENVIRONMENT AND GOVT
AGENCIES.
CULTURAL VALUES VALUES OF THE TOTAL
SOCIETY.

85

GOALS AND VALUE SUBSYSTEM

THREE PRIMARY PERSPECTIVES.
ENVIRONMENTAL LEVEL THE SOCIAL GOALS
IMPOSED ON THE ORG.
ORGANISATIONAL LEVEL SYSTEM GOALS.
INDIVIDUAL LEVEL PARTICIPANTS GOALS.

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 GOALS - INFLUENCE THE INTERACTIONS

WITH
ENVIRONMENTAL SUPRASYSTEM AND THE
OTHER SYSTEMS.
FOCUS THE ATTENTION OF PARTICIPANTS
UPON ACTIONS WHICH ARE
ORGANIZATIONALLY RELEVANT.
HELP DETERMINE THE TECHNOLOGY REQD.
SET BASIS FOR SPECIALISATION OF EFFORT,
AUTHORITY PATTERNS , COMMUNICATION AND
DECISION NETWORKS AND OTHER
STRUCTURAL RELATIONSHIPS.
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GOALS AND VALUE SUBSYSTEM

INFLUENCES ON GOALS
PERSONALITY OF TOP EXECUTIVES.
HISTORY OF THE ORG.
COMMUNITY ENVIRONMENT.
NORMS ON VALUES WITH WHICH THE ORG DEALS.
STRUCTURE.
CULTURAL SAFETY

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RESPONDING TO ENVIRONMENT LEADS TO A

CONTINUOUS NEED TO ELABORATE THE GOAL
SET OF THE ORG AND IS INFLUENCED BY
INTERACTION COMPETITION , BARGAINING,
CO-OPTATION AND COALITION.
SYSTEM GOALS
SELF PERPETUATION , STABILITY OF OP, HIGH
RATE OF RETURN, GROWTH , SATISFACTION OF
PARTICIPANTS , TECH LEADERSHIP AND
INNOVATION.

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SUPRASUBSYSTEM
EVERY ORG HAS IDENTIFIABLE BUT PERMEABLE
BOUNDARIES WHICH SEPARATE THEM FROM THEIR
ENVIRONMENT.
THEY RECEIVE INPUTS ACROSS THESE BOUNDARIES,
TRANSFORM THEM AND RETURN OUTPUTS.
BOUNDARIES PROVIDE A DEGREE OF AUTONOMY AND
INDEPENDENCE FOR ORG FROM EXTERNAL
INFLUENCES.
SELECTIVELY OPEN TO INPUTS, TRANSFORMATIONS
AND OUTPUT
.

ACTS AS A FILTER.
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ORG DO NOT HAVE ANY PRECISE PHYSICAL

BOUNDARIES.
ACTIVITIES NECESSARY FOR ORG
TRANSFORMATION PROCESS DEFINE ITS BDY
RATHER THAN THE PHYSICAL STRUCTURES.
BASICALLY STANDARDISES THE INPUTS AND
OUTPUTS TO THE VARIOUS OP SUBSYSTEMS I.E.
STRATEGIC AND CO-COORDINATIVE SUB SYSTEMS
BUFFER THE OP SUB SYSTEMS OF THE ORG FROM
ENVIRONMENTAL INFLUENCES.
HETEROGENEOUS AND DYNAMIC ENVIRONMENTS
LEAD TO COMPLEX AND DIFFERENTIATED THE THE
INTERNAL STRUCTURING OF THE ORG .
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AUTONOMOUS WORKGROUPS
SOCIO TECH THEORY.
WORKERS ARE LIKELY TO BE PRODUCTIVE AND
SATISFIED WHEN THEIR SOCIAL NEEDS ARE MET.
TAVISTOCK RESEARCHES CONCEPT OF
AUTONOMOUS WORK GROUPS.
WORKERS WORK AS A TEAM TO COMPLETE AN
ENTIRE TASK VIS A VIS WORKERS PERFORMING A
PARTICULAR CHORE ALONG AN ASSY LIVE.

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TWO APPROACHES.
TEAM BUILDING
MATRIX ORG COMPROMISE BETWEEN
STAFF AND COMPLETE
AUTHORITY.
- VERTICAL FLOW OF AUTHORITY FROM
VARIOUS FM MANAGERS.
- HORIZONTAL FLOW OF PROJECT AUTH.

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AUTONOMOUS WORKGROUPS
CHANGES IN EACH SYSTEM AFFECTS THE OTHER
SYSTEMS FOR eg
THE PROBLEM OF RETAINING WORKERS.
MGMT SUBSYSTEM MGMT OF WORKERS.
TECHNICAL SUB SYSTEM - AVAILABILITYOF TOOLS
AND RESOURCES.
PSYCHO SOCIAL SUB SYSTEM --- INTER
PERSONNEL
RELATIONSHIPS.

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UNCERTAINITY

BURNS AND STALKER SUGGESTED TWO

FACTORS DETERMINANT OF ORG STRUCTURE
AND PERFORMANCE - RATE OF CHANGE AND
THE LEVEL OF UNCERTAINITY IN THE
ENVIRONMENT.TWO TYPES OF SYSTEMS
RECOMMENDED.

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LAWRENCE AND LORSCH

SPECIALISED SYSTEM DEVELOP IN RESPONSE TO
DIFFERENT ASPECTS OF THE ORGANISATION
ENVIRONMENT.
PRODUCTION DEPATRMENTS WHICH HAD STABLE
ENVIRONMENTAL CONDITIONS TEND TO BE MORE
BUREACRATIC THAN RESEARCH DEPARTMENT.
HIGH LEVEL OF DIFFERENTIATION REQUIRED BY THE
ENVIRONMENT LED TO THE PROBLEM OF
INTEGRATING THE DEPARTMENT.
THIS PROBLEM SOLVED BY SOME FIRMS EMPLOYING
A GROUP OF MANAGERS TO COORDINATE THE
DIFFERENT DEPARTMENTS.
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AFFECT OF SIZE

RELATIONSHIP BETWEEN SIZE AND LEVEL OF

BUREACRATISATION
ORG SIZE AND JOB SATISFACTION STUDY BY
REVANS AND PORTER--- LARGER THE ORG
LOWER THE JOB SATISFACTION LEVEL ,HIGH
LEVEL OF ABSENTEEISM AND LABOUR
TURNOVER.

97

ORG SIZE AND UNIONISATION

BAIN SUGGESTS A STRONG POSITIVE
CORRELATION BETWEEN ORG SIZE AND WHITE
COLLAR UNIONISATION.
ORG SIZE AND STRIKE PRONENESS
RESEARCH BY DOE AND PRAIS SUGGEST
LARGER THE FACTORY GREATER THE
FREQUENCY OF STRIKES.
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Contingency Theory as a Model of Change

Systems thinking approach adopted by Lawrence
and Lorsch
Studied the characteristics of organizations and their
environment.
Believed that determining the best structure and
leadership for an organization is contingent on the
relation of the organization to its environment.
The systems that constitute the organizations are
affected by boundaries and by a process called
differentiation & integration.
99

Boundaries:
The

boundary between an open system and its

environment is permeable; similar to cells in human body.
Sales people going out in the market to sell.
Resource mobilization like physical goods and
human resource from environment.
The problems in an organization first becomes visible at
the boundaries.
Drop in sales and complaints from customer a
sign of organizations unresponsiveness towards
customers needs
Organizations must be attuned and responsive to
environmental changes that occur at the boundary.
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Contingency Theory as a Model of

Change ..Contd..
Integration:
Specialized groups / units for tasks
Independent style of interaction with the organization
Different impact of their behavior on organization
Need for coordination between units to achieve
organizations overall goals

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 The effective coordination between units is called

Integration
Need for appropriate structure such as
bureaucratic or matrix
Need for appropriate leadership

Differentiation:
The organizational units vary on following four
dimensions:
Formality of structure
Goal Orientation
Time Orientation
Interpersonal Orientation
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Formal and Informal Systems

Deals with:
The formal policies and procedures of the organization.
The informal ways in which organizational members work
together.
Two theories have been put forward by:
Marvin Weisbords
The Six box model Formal Systems
The organizational fit Formal and Informal
Interactions
Nadler & Tushmans
Congruence Model - Formal and Informal Interactions

103

The 6 Box Model

Purposes:
What business are we
in?
Agreement on goals in
missions
Relationships:
Structure:
How do we manage conflict
How do we assign the
among people with
work and how it gets
technologies? How do workers
done?
get along
Leadership:
Does some one keep the
boxes in balance?
Helpful mechanisms:
Have we adequate
coordinating technologies?
Like budgeting, planning &
control, and management
information

Rewards:
Do all needed tasks
have incentives?

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Organizational Fit
How the organization fits within its environment
Compatibility with customers, government, union
How the individual fits with in the organization
Compatibility of individuals personal values, political
orientation, hobbies, style of dress with other
organizational members

105

The Congruence Model

Organization

draws inputs from environment in the

following form
Capital, raw material, technology and people
Organization history
Pattern of employee behavior
Organizational policies and procedures
Managements method for decision making
The model takes into account the inputs and resulting
output after transformation
106

 The transformation process includes four components:

Task job and their inherent characteristics
Informal organizational structure social structure
among organizational members including informal
communication, politics and authority structure
Individual personal characteristics of employee
such as age, sex, education
Formal organizational arrangements documented
managerial and operational structure, the pay
system, the management information system
Outputs are the outcomes for the organization, the
work group and the individual.

107

A Change Based Organizational Framework

According to Porras and Robertson model, the factors in the
internal organizational environment that shape and guide the
behavior of workers fit into four categories:
Organizing arrangements the formal elements that
coordinate the behavior of people and groups in an
organization
Goals & Strategies
Structure & administrative policies and procedures
Administrative system & reward system
Ownership
108

 Social factors characteristics of the people in the

organization and their relations
The culture, management style, interaction
process, informal patterns & networks and
individual attributes
Physical settings
The building and locations
Technology
Equipments, IT, job design, work flow design,
technical expertise & procedures and technical
systems

109

Thank You

110