Académique Documents
Professionnel Documents
Culture Documents
Lecture 8
Organisational Development/
Organisational Culture (Unit 18)
p y
Employment Act / Industrial Relations ((Unit
19)
Organisational Development
& Organisational Culture
(Unit 18)
1
Organisational Development
(OD)
Organisational
Development (1)
• Definition
– The application of behavioural science knowledge effect to improve
an organisation’s ability to cope with change in its external
environment and increase its problem solving capabilities
capabilities.
• Goals
– To offer a systematic approach to planned change in organisations
that addresses two main goals:
• process goals
• outcome goals
– Process Goals:
• Goals that focus on improvements in the way people work
together in an organisation
– Outcome Goals:
• Goals that focus on improvements in what people accomplish in
an organisation
4 B2002 HRM Lecture 8
2
Organisational
Development (2)
• OD is intended to help organisations & their
members by:
– creating an open problem – solving climate
– supplementing formal authority with that of
knowledge & competence
– moving decision points to where relevant
information is available
– building trust and maximising collaboration
among individuals and groups
– allowing people to exercise self-direction &
self-control at work
5 B2002 HRM Lecture 8
Organisational
Development (3)
• Process of OD
– Diagnosis:
• stage of gathering and analysing data to assess a situation
• set appropriate
pp p change
g objectives
j
– Active intervention:
• Change objectives are pursued through a variety of specific activities
– Reinforcement:
• Changes are monitored, reinforced, and evaluated
• Suggested Stages of the OD Process
– The ‘change agent’ and senior executives discuss the aims of the programme
and the ideas behind it, bearing in mind future needs
– The
Th main i problems
bl & objectives
bj ti are sett outt clearly.
l l
– An ‘audit’ of the organisation is effected, e.g. state of morale, existing
relationships between persons (done by interview, questionnaire, etc.).
– Targets for improvement can then be set & agreed.
– A check on effect of plans is needed to ensure that the new methods are
maintained
6 B2002 HRM Lecture 8
3
Organisational
Development (4)
• Inputs of OD:
Organisational
Development (5)
• Characteristics of OD:
– The target is the total organisation.
– The goal is improved organisational effectiveness.
– Strategies,
Strategies methodologies,
methodologies and interventions are based on
behavioural sciences & other socio-technical disciplines.
– OD examines the relationship of management practices, individual
feelings, and behaviour in relationship to outcomes.
– OD is a continuing long-term effort.
– Based on explicit human values.
– It is the assigned tasks of one or more persons in an organisation
• OD Interventions:
– activities initiated in support of an OD programme
– designed to improve work effectiveness of individuals, groups, or the
organisation as a whole
– can be categorised in respect to their major impact at the
organisational, group, and individual levels of action
8 B2002 HRM Lecture 8
4
Organisational
Development (6)
• OD Interventions
– Organisation-wide Interventions
– Survey feedback:
• Confrontation
C f t ti meeting ti
• Structural redesign
• Management by objectives (MBO)
– Group & Intergroup Interventions:
• Team building
• Intergroup team building
– Individual interventions:
• Sensitivity Training
• Management Training
• Role Negotiation
• Career Planning
• Job Redesign
9 B2002 HRM Lecture 8
Organisational
Development (7)
• OD can be considered as an approach to the introduction of planned change
and concentrating on the process of change.
• The emphasis is in creating a more flexible open-minded organisation, which is
more receptive to change and where people can recognise the need for change
and implement
p action themselves
• The increasing need for change led to the development of OD; created by
changes in:
– technology & labour skills
– attitudes of employees
– size of organisation
– need to improve performance
• An ‘agent of change’ (change agent)
– is needed to act as a catalyst
– may be from inside or outside the organisation.
organisation
– help the company solve its own problems and the focus is on organisational,
group and interpersonal processes (process consultancy).
– Many aspects of the organisation are examined & activities are largely group
based.
• Members are encouraged to speak more openly about problems & intergroup
activities are encouraged
10 B2002 HRM Lecture 8
5
Organisational
Development (8)
STRUCTURE
(Systems of communication,
authority or work flow)
TASK TECHNOLOGY
(Manufacturing, (Tools, presses, drills, work
servicing, etc.) measurement)
PEOPLE
11 B2002 HRM Lecture 8
Organisational
Development (9)
• The above factors are all inter-dependent as a change in one
• Technology (introduction of a computer) will influence tasks (nature of work
changes, i.e. output is greater and quicker), organisation structure (fewer staff
needed), people (by their accepting or not accepting the need for a computer).
• There is too much rigidity in the organisation
• Rigidity does not enable creative ideas to be introduced.
• To overcome rigidity:
– Diversification
• companies with too narrow a product base buy interests in other
industries.
– Decentralisation
• parent company has overall control
control, but units are given authority to make
major decisions and the unit managers are held accountable for results to
the parent company.
– Venture groups
• group is given resources to develop a new idea, which may have come
from a group member.
12 B2002 HRM Lecture 8
6
Organisational
Development (10)
• Advantages of OD
– Concentrates on the team rather than on
individual development
– Raise morale & efficiency
– Helps employees to face changes themselves in
an ever-changing environment.
• Disadvantages of OD
– Difficult to convince staff of the need to change
change.
– May be costly to implement.
– Needs continual support by top management
and their conviction of the need for change
13 B2002 HRM Lecture 8
Organisational
Development (11)
• Experience has shown that managers would
be more effective if they:
– did not rely too much on their experience;
– adopted a more flexible role in discussions;
– encourage the definition of problems in many
varied ways;
– helped others to methodically talk through points
in ol ed
involved;
– are skilled in questioning persons and working
with them in making decisions;
– have a management ‘style’ conducive to change.
14 B2002 HRM Lecture 8
7
Organisational
Development (12)
• Organisational Health
– The following features indicate a healthy
organisation:
• Objectives
• Communications
• Frankness
• Conflict
• Motivation
• Decisions
• Organisation structure
• Feedback
• Change
15 B2002 HRM Lecture 8
Organisational
Development (13)
• Objectives
– Objectives are well defined for all parts of the organisation
– there are well developed and agreed plans for achieving them
• Communications
– both formal and informal are effective with people talking to each
other and listening to what others are saying
• Frankness
– predominates with people being allowed to say what they feel
and what they really mean rather than saying what they think the
other person ought to or wants to hear.
• Conflict
– is recognised as an inevitable factor
– is handled openly and resolved constructively, thus minimising
the idea of winners and losers
• Motivation
– is maximised at all levels by attempting to integrate the personal
needs of individuals with the organisation’s objectives
16 B2002 HRM Lecture 8
8
Organisational
Development (14)
• Decisions
– are made at the lowest levels of management having the necessary information
and responsibility for implementation
– are not p
passed upwards
p as a means of avoiding
g such responsibility
p y
• Organisation structure
– is continually under review
– sufficiently flexible to allow changes to be made easily to meet new
circumstances
• Feedback
– is quick so that managers at all levels have information readily available to them
on which they can assess the effectiveness of their actions and decisions and
thus make any necessary changes
• Change
– the organisation does not use up energy clinging to an obsolete status quo but
accepts that change must be met positively to maintain or increase effectiveness.
• No organisation achieves perfect health!
Organisational Culture
9
Definition of
Organizational Culture
• Definition
– The deep-set belief about the way work
should be organised
organised, the way authority should
be exercised, people rewarded, people
controlled
– An important aspect of the process by which
leaders can articulate a vision and engender
support
• Impact:
I t
– If the culture of an organisation is not adaptive to
change or to new ideas, then the leadership
objectives will be difficult to achieve
19 B2002 HRM Lecture 8
Levels of Corporate
Culture
Observable Symbols Artefacts
Ceremonies, Stories,
Slogans,
Behaviors, Dress,
Physical Settings
Values
Underlying
Values
Values,
Assumptions,
(Source: Adapted from Schein,
Beliefs, Attitudes,
E. (1992) Organizational
Culture and Leadership,
Feelings Basic
second edition, San Francisco:
20 Jossey Bass.) B2002 HRM Lecture 8
Assumptions
10
Organisational Culture
(Exploring corporate
strategy: text and
cases, 2005, P.200.)
3 Levels of
Organizational Culture (1)
• Artefacts
– Tangible phenomena that embody organizational culture
– Examples:
• Types of people employed (personalities, levels of education, etc.)
• T diti
Traditions & rituals
it l (ceremonies)
( i )
• Technology
• Architecture
• Logos, heroes, stories, myths, etc.
• Values
– Answers to questions like:
• What are we doing?
• Why are we doing it?
– Involved ethical statements of “rightness”
– Examples:
• Commitment to equality of opportunity
• To solve human problems through the application of technology or to profit
maximization for shareholders
(Source: Knights D. & Willmott H. (2007) Introducing Organizational Behaviour
and Management, London: Thomson. P.347)
11
3 Levels of
Organizational Culture (2)
• Basic Assumptions
– Unconscious & taken for granted ways of seeing
the world
– The source of values & artefacts
– Concern questions about:
• Our relationship to our environment
• Our relationship to each other
• Reality & truth
• Human nature
• Human activity
(Source: Knights D. & Willmott H. (2007) Introducing Organizational
Behaviour and Management, London: Thomson. P.347-8)
• “Purple
Purple Promise Culture
Culture” – I will make every Fedex
experience outstanding! (Fedex)
• Innovation and risk taking (3M)
• Outcome orientation (Bausch & Lomb)
• People orientation (Southwest Airlines, SWA)
• Aggressiveness (Microsoft)
• Family-friendly (SAS Institute)
12
Formal Signs and
Policies Symbols
Ho Do
How
Managers Shape
Culture?
Rites and
Stories
Ceremonies
4 Types of Organizational
Culture
• Power Culture
– Represented by a Web
• Role Culture
– Represented by a Greek Temple
• Task Culture
– Represented by a Net or a Matrix
• People/Cluster
P l /Cl C
Culture
l
– Represented by a Galaxy of Stars
13
Power Culture
(Represented by a Web)
Power Culture
(Represented by a Web)
•Depends on a central power source, usually the founder/owner
•Trust between centre and “outlying" staff is key to effectiveness, as in personal
interaction.
• The central figure needs to select staff who have similar ways of thinking (so they can
be left to get on with their work; thus members have a lot of freedom)
• Few rules & routines
• Decisions depend on balance of power rather than procedure
• A strong, cohesive, and flexible culture where politically minded risk-takers thrive
• Centre's influence declines as organization grows bigger (and the web weaker),
which may prompt break-up into smaller divisions or a shift toward “role culture"
• Tough & competitive, possibly causing low morale & high labour turnover
• Replacement of the centre at the end of their career is a key challenge because a
“ b without
“web ith t a spider
id h t th " (source:
has no strengths" ( Handy
H d C C. (1993) U
Understanding
d t di
Organizations: Managing Differentiation and Integration, New York: Oxford University
Press. P. 184.)
• Likely to be found in small entrepreneurial organisations (e.g. trading, finance, or
property companies, new businesses and/or family firms)
(Source: Knights D. & Willmott H. (2007) Introducing Organizational Behaviour and
Management, London: Thomson. P.351)
28 B2002 HRM Lecture 8
14
Role Culture
(Represented by a Greek Temple)
Role Culture
(Represented by a Greek Temple)
• Reason & logic are key values
• A bureaucratic & highly structured organization (temple’s pillars are
specialist departments like marketing or production; roof is senior
management team)
• Organizational operations controlled by job procedures,
procedures reporting
procedures, communications policies, etc.
• Staff are selected on basis of capability/expertise & are not required to do
anything more than their roles require
• Power comes from hierarchical position, not personal charisma
• Works well where the market is a predictable or a monopoly/oligopoly exists
• Provides security & predictability for workers who are able to climb the
“career ladder”
• “But Greek temples are insecure when the ground shakes” (source: Handy
C. (1993) Understanding Organizations: Managing Differentiation and
Integration, New York: Oxford University Press. P. 184.)
• – they do NOT respond quickly to changing circumstances, and can be
frustrating for those who seek freedom
• Examples: civil service, car manufacturers, oil companies, life insurance
companies, high street banks
(Source: Knights D. & Willmott H. (2007) Introducing Organizational Behaviour
and Management, London: Thomson. P.352)
30 B2002 HRM Lecture 8
15
Task Culture
(Represented by a Net or a Matrix)
Task Culture
(Represented by a Net or a Matrix)
• Centres on getting the job done
• Bringing the right people & resources together at the right time to work on a
project
• Staff may be simultaneously involved in several different projects
• Key values are expertise & teamwork
• Overall control maintained by central allocation of resources & people to
projects
• Suited to competitive & volatile markets with short product cycles, where
responsiveness, cooperation, and creativity are vital
• Project teams can be formed & abandoned rapidly
• Decision-making is often faster
• Being devoted to team level
• But no real attention to economies of scale
• Staff may have little opportunity to develop expertise when working a
across a range of projects
• Staff can generate confusion & insecurity
• Examples: venture capital firms, management consultancies, advertising
agencies, etc.
(Source: Knights D. & Willmott H. (2007) Introducing Organizational Behaviour
and Management, London: Thomson. P.352)
32 B2002 HRM Lecture 8
16
Person/Cluster Culture
(Represented by a Galaxy of Stars)
Person/Cluster Culture
(Represented by a Galaxy of Stars)
• Key value is individuality or freedom
• Organization exists only for its members’ benefits
• Organization comes into existence when people find that sharing
p
office space,, desks,, IT network,, etc. helps
p them (but
( there are no
collective goals as such)
• Overall control is only possible by mutual consent
• Power is shared
• Tends not to last
• “Too soon the organization achieves its own identify and begins
to impose on its individuals. It becomes, at best, a task culture,
but often a power or role culture” (source: Handy C. (1993)
Understanding g Organizations:
g Managing
g g Differentiation and
Integration, New York: Oxford University Press. P.191.)
• Examples: barristers’ chambers, architects’ partnerships, small
organizational enclaves like consultants in an National Health
Services (NHS) hospital.
(Source: Knights D. & Willmott H. (2007) Introducing Organizational
Behaviour and Management, London: Thomson. P.352-3)
34 B2002 HRM Lecture 8
17
Employment Act (UK) &
((Unit 19-20))
18
Employment Act (2) - Notice
• Either party may, at any time, give the other party notice of his/her
intention to terminate the contract of service
• The length of notice shall be the same for both the employer & the
employee and shall not be less than:
employee,
– 1 day’s notice, if the employment has been for less than 26 weeks
– 1 week, where it has been more than 26 weeks, but less than 2 years
– 2 weeks, where it has been more than 2 years, but less than 5 years
– 4 weeks, where it has been 5 years or more
• The notice shall be in writing, and the day on which the notice is given
shall be included in the period of notice
• Either p
party
y can waive the right
g to receive notice
• Should either party terminate employment without notice, he/she shall
pay to the other party a sum equivalent to the amount of salary that
would have accrued
• In the event of a wilful breach, either party may terminate a contract of
service without notice
37 B2002 HRM Lecture 8
19
Employment Act (4)
• Change of Employer
– If a trade or business is transferred from one person to another, or
from one body corporate to another, the period of service of the
employee at the time of transfer shall be counted as a period of
employment with the transferee
– There is no break in continuity
– Similar provisions apply on the death of an employer, where the
employee is taken into employment by the personal
representative or trustee of the deceased
• Salary
– Salary shall be paid at fixed periods, and no period shall exceed
one month and, unless otherwise agreed in writing, shall be paid
in legal tender
– No deductions, other than those authorised by the Employment
Act shall be made, unless by order of a court or other competent
39 authority B2002 HRM Lecture 8
20
Employment Act (6) – Rest Days
Hours of Work, Holidays, etc.
• 9. An employee required to work on a holiday shall be entitled to an extra day’s pay at
ordinary rates.
• 10. In addition to rest days, holidays or sick leave, an employee shall be entitled to Annual
Leave as follows:
– a) 1st year of service – 7 day’s leave
– b)) 2nd yyear of service – 8 day’s
y leave
– c) 3rd year of service – 9 day’s leave
– d) 4th year of service – 10 day’s leave
– e) 5th year of service – 11 day’s leave
– f) 6th year of service – 12 day’s leave
– g) 7th year of service – 13 day’s leave
– h) 8th year of service – 14 day’s leave
• 11. He/she shall lose this entitlement if he absents himself without permission or reasonable
excuse for more than twenty percent of working days in the year.
• 12. Leave is to be taken within twelve months of the end of the twelve month period of
employment, and any employee failing to do so loses his/her entitlement.
• 13. An employee who is dismissed, other than for misconduct, should be entitled to leave
pay up to dismissal
dismissal.
• 14. An employee with not less than twelve months of continuous employment shall, after
examination at the expense of the employer, be entitle to sick leave not excluding:
– a) fourteen days in each, if no hospitalisation is necessary
– b) sixty days, if hospitalisation is necessary or certified
• 15. Where both conditions 14.1 and 14.2 apply, the maximum entitlement shall be fourteen
days, plus the number of days hospitalised.
• 16. An employee absenting himself on sick leave other than in accordance with these
provisions, shall be deemed to be absent without permission or reasonable cause
41 B2002 HRM Lecture 8
21
Employment Act (8) –
Emergency Situations
• 1. Irrespective of the limits placed on working hours, an
employee may be required to work hours in excess or on a
rest day in the case of:
– a) Accident, actual or threatened.
– b) Work which is essential to the life of the Community.
– c) Work which is essential for defence or security.
– d) Urgent work to machinery or plant.
– e) Unforeseen interruptions.
– f) Any industrial undertaking essential to the economy of
Singapore, or certain other essential services.
• In the event of a dispute in connection with paragraph f.
above, the Commissioner has power to decide whether
employer is justified in calling upon employees.
43 B2002 HRM Lecture 8
• Employment Laws - UK
– Industrial Relations Act
– Employment Act
– Central Provident Fund Act
– Trade Disputes Act
– Trade Union Act
– Workmen Compensation Act
– Factory Act – Health and Safety
• Why are Labour Laws Important?
– Understand the demands of the law
– Operate within the law
– Avoid deaths, injuries, compensation, fines, and jail terms
44 B2002 HRM Lecture 8
22
Employment Act (10)
• Labour Laws & The Employee
– Agent/representative for the Company
– The first contact for the Company
– You
Y implement
i l t company’s ’ policies
li i andd th
the llaw
– You are also an employee
• Enjoy benefits
• Protection provided by the law
• Face the union/employee’s representative(s)
• Labour Laws & the Company
– Instruct y
you to carry
y out p
policies and benefits
– Ensure that you know what to do
– That what you do is correct and proper
– Operate within the law
– Good employer image
– Unions are coming into the industry
45 B2002 HRM Lecture 8
23
Employment Act (12)
24
Employment Act (14)
• Industrial Arbitration Court” – Part II of “Industrial Relations Act”
– Part II of this act (INDUSTRIAL ARBITRATION COURT) provides
for the establishment of an Industrial Arbitration Court, which will
have a president
president, assisted by two lay people selected from an
employer’s panel and an employees panel respectively.
– Part III of this act (COLLECTIVE BARGAINING) acknowledges the
fact that recognised Trade Unions have the right to invite employers
to negotiate an agreement.
– No collective agreement shall cover:
• a) the promotion of individual employees
• b)) the transfer of employees
p y
• c) the selection of employees
• d) the termination of employment for reasons of redundancy
• e) the dismissal or reinstatement of employees which is subject to
investigation under the Employment Act
• f) the assignment of tasks which is compatible to the employers terms of
employment.
49 B2002 HRM Lecture 8
25
Employment Act (16)
– d) it is also an offence for an employer to discriminate against
prospective employees on the grounds of Trade Union membership.
– e) an employee may apply in writing for reasonable paid leave to carry
out the duties of a Trade Union Officer,
Officer provided the business is on
matters concerning his employers.
– f) Section 81 (Injuring employee on account of industrial action) states
that an employer shall not dismiss or threaten to dismiss or to injure any
employee who:
• - proposes to become a Trade Union member or office
• - is, or becomes entitled to any award
• - proposes to become a witness at the Industrial Arbitration Court
• - is a member of a Trade Union which has given notice to negotiate
• - absents himself to carry out his Trade Union duties under section
80 of the Industrial Relations Act. (Leave on trade union business)
26
English – Chinese
Glossary
English Chinese English Chinese
Artefacts 人工製品/ Leadership 領導
實物 (才能)
Basic Assumptions 基本假設 Organisational 組織文化
Culture
27