MGT3OCD Week 8 Notes

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La Trobe University *

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3OCD

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Information Systems

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Oct 30, 2023

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LEARNING OUTCOMES  After studying this lecture, you should be able to:  Explain the different ways an organisation can respond to its environment.  Describe the guidelines for open systems planning.  Discuss planned change initiatives, including transorganisational development, restructuring and re-engineering.  Explain the three approaches to work design. ORGANISATION AND ENVIRONMENTAL FRAMEWORK Consists of everything outside organisations that can affect, either directly or indirectly, their performance and outcome  General environment  Social, economic and ecological forces  Task environment  Customers, suppliers, competitors, producers of substitute products/services, unions and potential new entrants  Enacted environment

 Managerial perceptions and representations of the environment ENVIRONMENTAL DIMENSIONS AND ORGANISATIONAL TRANSACTIONS ORGANISATIONAL RESPONSES: SCANNING UNITS  Special units for scanning particular parts or aspects of the environment  market research  public relations  government relations  strategic planning  Gather and interpret relevant information about the environment, communicating it to decision makers  Enables organisations to monitor and make sense of their environment and gives a competitive edge ORGANISATIONAL RESPONSES: PROACTIVE  Engage in political activity to influence laws and regulations

 Seek government regulation to control entry to industries  Behave in a socially responsible way  Acquire control over resources  Introduce new products/services and use advertising to shape customer preferences ORGANISATION RESPONSES: COLLECTIVE STRUCTURES  Organisations deal with problems of environmental dependence and uncertainty by building alliances with other organisations, e.g. bargaining, contracting, co-opting, joint ventures, strategic alliances, consortia and federations  Ways in which organisations respond to the changing environment:  Open System Planning (OSP)  Transorganisational Development (TD)  Transorganisational Systems (TSS)  Organisational Restructuring UNDERLYING ASSUMPTIONS IN OSP  Perceptions play a major role in environmental relations

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 Organisation members must share a common view of the environment  Perceptions must accurately reflect the condition of the environment if organisational responses are to be effective  Organisations can not only adapt to their environment, but also create it proactively OSP IMPLEMENTATION PROCESS  Assess the external environment  Assess how the organisation responds to the external environment  Identify the core mission of the organisation  Create a realistic future scenario of environmental expectations and organisational responses  Create an ideal future scenario of environmental expectations and organisation responses  Compare the present with the ideal future and prepare an action plan for reducing the discrepancy What could go wrong with this process? GUIDELINES FOR IMPLEMENTING OSP

 Devote sufficient time and resources  Document all steps  Deal only with key parts of the environment  Follow the steps in order  View planning as a process, not an outcome TRANSORGANISATIONAL DEVELOPMENT (TD)  An emerging form of planned change aimed at helping organisations develop collective and collaborative strategies with other organisations  When one organisation forms a partnership with another to perform tasks and solve problems that are too complex to be handled alone TRANSORGANISATIONAL SYSTEMS (TSS) AND THEIR PROBLEMS  TSs are complex, with individual organisations coming together for a common purpose  Tend to be underorganised and:  Relationships among member organisations are loosely coupled;

 Leadership and power are dispersed among autonomous organisations rather than hierarchically centralised; and  Commitment and membership are tenuous as member organisations attempt to maintain their autonomy while coming together for the common purpose  Regarded as difficult to manage, but a useful response to external threat TD APPLICATION STAGES RESTRUCTURING - DOWNSIZING  Refers to interventions that are aimed at reducing the size of the organisation  Application stages  Clarify the organisation’s strategy  Assess downsizing options and make relevant choices  Implement the changes  Address the needs of survivors and those who leave  Follow through with growth plans  Results  Research shows mixed results

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 The way in which downsizing is conducted may explain these divergent outcomes  Following a well planned application of the process seems to improve outcomes DOWNSIZING TACTIS RESTRUCTING – RE-ENGINEERING The fundamental rethinking and radical redesign of business processes in order to achieve dramatic improvements in performance.  Implementation steps  Prepare the organisation  Fundamentally rethink the way work gets done  Identify and analyse core business processes  Define performance objectives  Design new processes  Restructure the organisation around the new business processes  Results  Wide variation  Little systematic research despite popularity THREE APPROACHES TO WORK DESIGN

 Engineering approach  Focuses on efficiency and simplification and results in traditional jobs and work groups redesigns  Motivational approach  Uses motivational theories  Focuses on enriching the work experience  Sociotechnical Systems (STS) approach  Seeks to optimise both the social and technical aspects of work systems JOB ENRICHMENT: BARRIERS AND RESULTS  Not all people react in similar ways to job enrichment interventions  Individual differences can impact negatively  A worker’s knowledge and skill levels  Growth-need  Strength and satisfaction with contextual factors JOB ENRICHMENT: BARRIERS AND RESULTS (CONT.)  Four system level barriers have also been identified  Technical system  Technology may limit job enrichment  Personnel system

 Rigid and inflexible job roles/descriptions  Control system  Reporting methods limits complexity of job  Supervisory system  Level of autonomy and feedback  Results from participants are generally positive SOCIOTECHNICAL SYSTEM (STS) CONCEPTUAL BACKGROUND  Two fundamental notions  An organisation/work unit is a combined, social- plus-technical system  This system is open to its environment  Self managed work teams are the most common application of STS  STS produces two kinds of outcomes:  Goods and services  Social and psychological consequences (job satisfaction and commitment) SELF-MANAGED WORK TEAMS STS: APPLICATION STAGES  Sanction the design effort  Diagnose the work system  Generate appropriate designs

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 Specify support systems  Implement and evaluate the work designs  Continually change and improve DESIGNING WORK: TECHNICAL FACTORS  Technical interdependence  Extent to which cooperation among workers is required to produce a product or service  Technical uncertainty  Amount of information processing and decision making that employees must do to complete a task DESIGNING WORK: PERSONAL FACTORS  Social Needs  Desire for significant social relationships  Growth Needs  Desire for personal accomplishment, learning and development SUMMARY  Newer forms of OD and organisation change focus on external environmental factors and systems level changes to optimise organisation performance.

 The impact of the external environment is becoming increasingly important.  Responses to external threats and pressures:  Open systems planning  Transorganisational interventions  Organisation restructuring  Changes in work design.  Juggling the personal needs of people with the technical needs of work is becoming increasingly complex.