Organizational Dynamics

(ODY): Slot III 2014-15

Prof. Vishal Gupta
OB Area, Wing 14-E
E-mail: vishal@iimahd.ernet.in
Webpage: http://www.iimahd.ernet.in/~vishal
Why ODY?
Organizational Behavior
A field of study that investigates the impact that
individuals, groups, and structure have on
behavior within organizations, for the
purpose of applying such knowledge toward
improving an organizations effectiveness
Lecture 1 2
Why ODY?
Lecture 1 3
Individual
Dynamics
Organizational
Dynamics
Group
Dynamics
Lecture 1 4
ID
IGP
ODY
Importance of Organizations
Our society is an organizational society
Our actions and behaviors are influenced by
organizations
Provide the setting for a wide variety of basic social
processes (e.g., socialization, communication, exercise
of power, and goal setting and attainment)
Lecture 1 5
Why Organizations Exist?
Economize on transaction costs
Increases specialization and division of labor
Use of large-scale technology
Managing external environment
Expert power and control
Lecture 1
What is an Organization?
Lecture 1 7
Development of organizations is
the principal mechanismby
which, in a highly differentiated
society, it is possible to get things
done, to achieve goals beyond
the reach of the individual
Organizations are the primary vehicle by which,
systematically, the areas of our lives are rationalized
planned, articulated, scientized and made more
efficient and orderly.
Organization as the Medium
Lecture 1 8
Organizations are the
mechanism the
media by which
goals are pursued
E.g., health vs. medical care, automobile
also represents manufacturing process
Some Metaphors
Metaphor Characteristics
Brains Mechanisms for learning, intelligence, creativity,
and information processing; interpret ambiguous
events; provide meaning and direction for participants;
interpret stimuli and add meaning to it
Cultures Have norms, values, rituals, and traditions that provide
deeper meaning for members; provide a shared
meaning that sustains and guides organizational life
Political Sys. Function based on power structures and coalitions.
Conflict and power are central to operation
Psychic Prisons Unconscious sublimated, repressed, reactive,
displaced motives and needs.
Lecture 1 9
Lecture 1 10
Metaphor Characteristics
Flux and
Transformation
Constant state of change, a dynamic unfolding
Instruments of
Domination
Process of domination where certain people impose
their will on others to achieve their own ends. Labor as
a commodity to be bought and sold
Machines
Tools to achieve the predetermined goals; made up of
interlocking parts with a clearly defined role
Organisms
Interacting subsystems that acquire inputs from the
environment, transform them, and discharge outputs to
the environment
Corporate Actors
Natural versus J uristic (corporate) person. Society
consists of relationships between natural persons,
between natural and corporate persons and between
corporate persons
Some Metaphors
Orgs. as Open Systems
Lecture 1 11
Water Heater
General Open System
Orgs. as Open Systems
Lecture 1 12
Social Structure
Technology Goals
Participants
Organization
Environment
Social Structure: Patterned relationships existing among participants
Normative: What ought to be (norms, values, roles)
Behavioral: What actually exists (activities, interactions, sentiments)
Formal (positions explicitly defined) vs Informal
Conflict is always possible even after espoused orderliness
Orgs. as Open Systems
Participants: Individuals who, in return for a variety of inducements,
make contributions to the organization
Goals: Conceptions of desired ends conditions that participants
attempt to effect through their performance
Technology: Machines, equipment, knowledge and skills used to
convert inputs to outputs
Environment: Physical, technological, cultural and social environment
external to organization to which it should adapt
Lecture 1 13
Orgs. as Open Systems
Organizations are goal-oriented entity of differentiated components
(Session 1)
Designed as deliberately structured and coordinated activity systems
(Sessions 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 16)
Components interact within a structure and are interdependent
Issues of structure, power, culture
System takes inputs from the environments and gives outputs to it
(Session 2, 13, 14, 15)
Linked to external environment and interacts with it
Feedback from output to change or correct its operation
Structure is separated from its environment by a boundary (Session 2,
13, 14, 15)
System grows, differentiates, matures and dies (Session 12)
Lecture 1 14
Performance and
Effectiveness Outcomes
Efficiency amount of resources used to
achieve the organizations goals
Effectiveness the degree to which an
organization achieves its goals
Stakeholder Approach balancing the needs of
groups in and outside of the organization that has
a stake in the organizations performance
Lecture 1 15
Major Stakeholder Groups
and What They Expect
Lecture 1 16
Goals
Official Goals (Mission): Organizations reason for
existence
What the organization stands for
What it is trying to achieve
Communicates legitimacy to stakeholders (internal and external)
Operative Goals: Ends sought through actual operating
procedures of organization
What the organization is actually trying to do
Specific measurable outcomes (short-term)
E.g., overall performance, resource goals, market goals, employee
development goals, innovation and change
Lecture 1 17
The Importance of Goals
Lecture 1 18
Organizational Effectiveness
An effective organization, one that excels, is one that
continually strives to identify and focuses on factors
critical to its customers and improves its processes in
order to provide the highest-quality product or service
possible.
Meets Organizational Objectives and
Prevailing Societal Expectations in the Near Future, Adapts
and Develops in the Intermediate Future, and Survives in the
Distant Future
NEAR
FUTURE
INTERMEDIATE
FUTURE
DISTANT
FUTURE
TIME
DIMENSION
Approx.
1 year
Approx.
5 years
EFFECTIVENESS
CRITERIA
The organization
must be
1. EFFECTIVE in
accomplishing its
purpose(s)
2. EFFICIENT in the
acquisition and use
of scarce resources
3. A SOURCE OF
SATISFACTION
to its owners,
employees, customers
and clients, and society.
The organization
must be
4. ADAPTIVE to
new opportunities
and obstacles
5. CAPABLE OF
DEVELOPING
the ability of its
members and of
itself
The organization
must be
6. CAPABLE OF
SURVIVAL in
a world of
uncertainties.
Factors Affecting
Organizational Effectiveness
Strategic Factors
Market
Product
Technology
Customers
Suppliers
Vision
Value Creation Strategy
Organizational Factors
Strategic Deployment
Effective Leadership
Policies
Procedures
Processes
Continuous Improvement Culture
Problem-solving
Commitment
Culture
Measures of Performance
Trust, Honesty, & Ethical Behavior
People Factors
Employee Involvement
Education
Training
Internal Supplier-Customer Relations
Motivation
Teamwork
Communication
Safety
Environmental Factors
Social
Economic
Competitive
Technology
How do we Measure
Effectiveness?
Lecture 1 22
Assessing Organizational
Effectiveness
Goal Indicators Identifying output goals and assessing how well the
organization has attained those goals (Technical Efficiency)
E.g., profitability, market share, growth, social responsibility, quality
Resource based Indicators Ability to obtain and manage scarce and
valued resources (Control over environment)
E.g., bargaining position, ability to use resources, ability to respond to changes
Internal Process Ability to coordinate resources creatively to innovate
and adapt to changing customer needs (efficiency of processes,
innovation)
E.g., strong positive culture and work climate, operational efficiency, undistorted
horizontal and vertical communication, growth and development of employees
Lecture 1 23
Thank you!