

MVJ College of Engineering, Bengaluru.

(An Autonomous Institute)
Affiliated to VTU, Belagavi, Approved by AICTE, New Delhi, Recognised by UGC with 2(f) & 12 (B),
Accredited by NBA & NAAC

ORGANISATIONAL DYNAMICS

Unit – 5

Organizational design
Organization Design is a process for shaping the way organizations are structured and run. It involves
many different aspects of life at work, including team formations, shift patterns, lines of reporting,
decision-making procedures, communication channels, and more.

What is meant by organizational design?

Organisational design is the process of aligning the structure of an organisation with its objectives,
with the ultimate aim of improving efficiency and effectiveness. ... Understanding the business
processes, workflows, roles and responsibilities, volumes of work, activity analysis and resources.

Organizational Design and Structure; Definition, Elements, Types, Pros, Cons

‘Organisational Design’ encompasses restructuring and destructuring roles, hierarchy level, terms, and
conditions as per business or organizational needs.

Definition
As stated above, the organization structure is the system which describes the organizational hierarchy in
terms of different functions, roles, responsibilities, supervision, etc. It demonstrates different concerns
including different roles of the employees, job descriptions, job functions, decision-making authorities,
reporting structure, allocation of tasks in the department, individuals, project team, branch, etc.

The organizational structure also defines the flow of information between different levels of an
organization, clarity of job of each employee, and its fitment in the overall system which motivates the
employees to work efficiently by keeping their morale high; hence, increasing the overall productivity of
an organization.

Organizational Structure Is Of Two Types

1. Centralized Structure
In this type of organizational structure, all decisions, as well as processes, are defined; and handled by
the top management. Employees and managers are responsible for the successful implementation of
decisions and have to follow them. The employees low in the chain of command play a minimal role in
the process of decision-making. Few real-life examples of such organizations are Army, companies like
Flipkart, Apple, McDonald’s, etc. where the power of decision- making is held at the top level and there
is a wide chain or hierarchy of managers and subordinates. Thus, the centralized structure has a top-
down approach for decision flow.
2. Decentralized Organization Structure
In such type of organizations, day-to-day tasks and the decision-making processes are delegated to the
supervisors at the middle and lower level by the top management for fast and effective decisions and to
improve efficiency. By letting the middle and lower level executives jump in the process of decision-
making, the top management can focus on other major decisions. This also increases the responsibility
and accountability of the employees.

For Example; Mark, the HR Manager at ABC Company, has to finalize a deal with a vendor at a job
portal for hiring and, for this, he negotiates best prices with discounts to close the deal. If his
organization is a centralized one, then he will first seek senior management permission to finalize the
deal and wait for their approval. If there is a delay rendered by the management part, he might lose the
deal. However, if his company is decentralized, then, he has authority to close the deal all by himself
with the vendor without seeking any approval from the management which, in turn, results in finalizing
cost-effective and quick decisionmaking.

Organizational Design
In simpler terms, “Organizational Design” refers to defining, designing, and re-structuring
organizational structure. The very process of organizational design is aimed at finding any type of
defective or dysfunctional elements related to an organization’s system, organization structure, process,
and work culture. Identification of these elements leads to their rectification so that they can better fulfil
an organization’s objective.

It clarifies different aspects like authority, the responsibility of tasks and its limitations, reporting
structure, a flaw of information, etc. With the help of organizational design, one can identify and
eliminate any kind of duplicity in work, inefficient work, and poor customer dealing, blame games,
obstacles in the decision-making process, shortfalls in systems, and processes which result in the decline
of efficiency of the employees, lack of trust among superiors and subordinates, etc.

So, organizational design and organizational structure are interrelated to each other, yet have a slight
difference. The organizational structure represents organizations in an immovable or static form that can
be presented through a diagram, popularly known as “Organogram.” These diagrams or organization
charts provide an easy interpretation of different functions of organizations and their relationships. Also,
they show a hierarchy of the staff i.e. managers, leaders, other team members, and supervision levels.

Elements of Organizational Design

A well-designed organizational structure not only defines functions, hierarchy, roles, and responsibilities
but also the alignment of organizational goals of staff/teams. Poor organizational design or structure may
result in serious downfalls in organizations i.e. ambiguity of roles, lack of trust in team and superiors,
rigid work environment, slow and ineffective decision-making, etc. The above-mentioned factors are
further responsible for low productivity and turnover.

So, it is important to look for organizational design and structure as per a company’s requirement. Also,
there are certain segments of organizational design which are known as the key elements. Largely, there
are 6 elements of organizational design and structure:

1. Chain Of Command/Line of Command

In this, the authority and power are delegated from top to bottom i.e. in an organization top management
gives instructions to the bottom team and all the employees at each level. Further, the accountability of
an employee’s job flows upward to the management. It gives clarity of the reporting structure in an
organization. Let us have a look at the chain of command with a visual diagram:
2. Span of Control
“Span Of Control” demonstrates how wide is the area of the direct control of supervisors over their
subordinates which is directly related to how many subordinates (in numbers) report to a

senior or supervisor; which, in turn, depends on the number of tasks performed at different levels. In
case of more tasks, the span of control will be wider. It also depends on other aspects like geographical
location, the ability of the team and superior, the complexity of tasks, etc.

3. Centralization
Centralization refers to centralizing an organizational system where planning and decisionmaking
authority is allotted either to a single person or the top management. A decentralized organization is the
one where planning and decision-making are handed over to middle or low-levels.

• Centralized Organization:
• Decentralized Organization:

4. Specialization
Large organizations divide some of its functions based on the specialized areas and, so, subtasks are
defined in different tasks. These subtasks are distributed among individual job roles.

5. Formalization
Formalization refers to the process of specifying or mentioning rules, procedures, and duties to the
employees as an individual as well as to the teams, departments, units, and the whole organization by
managers in written form too. Formalization indicates the goals and vision of an organization, tasks,
hierarchy and relationships, authority and responsibilities, different processes, and work methods.

A formal organization emphasizes on job roles, responsibilities, and assigning work to the individuals as
per the requirement of roles. These are controlled by rules and procedures.

An informal organization emphasizes on individuals, and the job responsibilities are designed based on
individual employee skills and preferences irrespective of the department in which he/she is working.
An individual can be assigned the role of different departments as well based on self-interest, skills, etc.

6. Departmentalization
As the name states, “Departmentalization” is the process of dividing organizational functions into
different departments as per specializations of jobs or responsibilities so that the common tasks can be
handled by specialized teams.
In rigid departmentalization, there is almost no interaction between different teams and each team works
as per their area of specialization. In contrast, in loose departmentalization, the teams are free to interact
with each other and can work together for common tasks.

Type of Organizational Design and Structure

There are two major categories of organizations- formal and informal.
The formal organizational structure includes a well-defined structure of jobs that clears authority,
functions, and responsibility in organizations. Plans, processes, and policies are already defined in these
types of organizations and the teams need to follow and perform their tasks based on these. Its main
focus is on jobs and functions rather than the employees. Jobs in the formal organizations are divided
into sub-tasks and employees are assigned these tasks as per their skills. It demands the intervention of
different departments, which is based on a grouping of sub-tasks of common jobs. For example,
organizations have different departments based on their functioning i.e. production, marketing,
purchase, etc. Delegation of work is from top to the bottom level which means that supervisors assign
work to the subordinates. Supervisors are responsible for the coordination of activities of their
subordinates as well as their performance.
Informal Organizations focus more on humans or employees as compared to jobs. In this, humans or
employees formally interact with each other to share their ideas, thoughts, beliefs, hobbies, etc. There is
no formal structure of these types of organizations. Also, there is no existence of a superior-subordinate
relationship.
Types of formal organizational design and structure:
1. Line Organizational Structure & Design
Line organizations follow line/chain of command and demonstrate relationships at different levels in
vertical form. The authority comes from top to bottom. There is no specialization existing in this.

2. Functional Organizational Structure & Design

In these types of organizations, different tasks and activities are distributed to different functions and
departments i.e. sales & marketing, finance, production, purchase, HR, IT, etc. These departments have
their own staff to perform duties and hence, perform different roles.

In these type of organizations, there are two authorities of jobs or two roles exist i.e. line and
staff/function. Line authority is similar to the direct chain of command of supervision and instructions
are given by the supervisors to subordinates in a vertical chain. However, staff authority gives power to
the specialists to support and increase work efficiency of staff members of line authority with their
expertise areas. Line managers have direct authority over staff; staff or functional authority has indirect
authority over line staff members in certain but narrow specialized tasks.

For example, the diagram of functional organization given below has two departments i.e.
Quality Control and Production. Both have line authority over their respective staff and roles. The
Quality Control Department staff has staff authority over the staff of the production department for
providing support services related to maintaining and ensuring the quality of products at different
production stages through proper quality checks.

3. Line and Staff Organizational Structure & Design

This concept works mostly in big organizations. The vertical but direct relation exists at different levels
in these type of organizations where the specialist staff has the responsibility to advise the line managers
and assist them whenever required. Both the departments, i.e., line and staff exist in such organizations.
The specialized staff is present for assisting or advising and has direct control over the line staff.

4. Divisional Organizations
Divisional organizational structure is present in large organizations which are more than one product
based, working in multiple territories or working on different projects with separate teams. In these, the
different functions of organizations are grouped on the basis of geographic areas, products, projects, or
in a combination.

Each division has its own functions and resources like manpower and others for products or the
geographic area to which it belongs.

In product- or project-based divisional organization, all activities like marketing, purchase, production,
quality, etc. come under the supervision of a single head who is head of the department. For example: in
the geographic division, all activities are combined based on particular geographic areas like the east or
the west or international locations like middle-east etc. This division exists in organizations that work in
more than one territory or geographic area and has different market strategies; and products are offered
based on customer needs in that geographic area.

5. Project-Based Organizations
Project-based organizations are temporary in nature and are developed to fulfil some defined set of
results for a project. These types of organizations have team members having different skill sets from
different functions or areas. Specific resources like budget, time, and manpower are assigned in a
particular project until its completion. After the completion of the project, the manpower of the project
goes back to the respective departments. For example; in the case of IT companies where there are lots
of projects like designing and developing software for any college. To handle this, different teams of
different functions of the IT department like planning, designing, developing, testing, etc. come into
play are allocated respective tasks.

6. Matrix Organizations
These types of organizations work on dual relationships in terms of responsibilities ushered over the
employees. Employees in such organizations report to both- functional head and project head. For
example, in matrix organizations, HR team members will report to the project manager, i.e., Hiring
Manager of real-estate recruitment project and the HR head for their functional tasks.

7. Hybrid Organizations
Hybrid organizations are a combination of values and elements which are based on social impacts in
different sectors like private, public, etc. and revenue generation. Basically, when organizations combine
to fulfil the common social and profit generating goals, such organizations are known as hybrid
organizations. It is also a combination of functional and product organizations.

Various MNCs (multi-national companies) work on this structure where they have the head office in a
country and also have international offices in different countries; and the seniors or heads of these
countries report to the CEO of the head office.

Implementation of Organization Design:

The task of implementing organizational re-design is a bit challenging as it requires changes throughout
the organization. Lots of things are re-arranged i.e. types of equipment, facilities, etc. Training is
provided to the employees including the top management for new design and skills in demand. There is
a change in different systems like PMS, rewards & recognition, MIS, decision-making process, etc.

Organisational culture:

Organizational culture includes an organization's expectations, experiences, philosophy, as well as the

values that guide member behaviour, and is expressed in member self-image, inner workings,
interactions with the outside world, and future expectations.

What is organizational culture?

Organizational culture is the collection of values, expectations, and practices that guide and inform the
actions of all team members. Think of it as the collection of traits that make your company what it is. A
great culture exemplifies positive traits that lead to improved performance, while a dysfunctional
company culture brings out qualities that can hinder even the most successful organizations.
Don’t confuse culture with organizational goals or a mission statement, although both can help define
it. Culture is created through consistent and authentic behaviors, not press releases or policy
documents. You can watch company culture in action when you see how a CEO responds to a crisis,
how a team adapts to new customer demands, or how a manager corrects an employee who makes a
mistake. Important of organisational culture:

• Increased employee engagement

• Decreased turnover
• Strong brand identity
• Elevated productivity
• Transformational power
 • Top performers
• Effective onboarding
• Healthy team environment
Organisation climate

Organizational climate is a concept that has academic meaning in the fields of Organizational Behavior
and I/O Psychology as well as practical meaning in the business world. There is continued scholarly
debate about the exact definition of organizational climate for the purposes of scientific study.

Factors Influencing Organisational Climate Organisational climate is a manifestation of the attitudes of

organisational members towards the organisation. These attitudes are based upon such things as
management policies, supervisory techniques, the ‘fairness’ of management, labor’s reactions to
management, and literally anything that affects the work environment. Lawrence James and Allan Jones
have classified the factors that influence organisational climate into five major components:

1. Organisational Context: The management philosophy of an organisation will be evident from the
goals, policies and functions of the organisation and the manner in which the goals are put into
operation. For instance, the reputation of a particular company regarding the treatment of employees
would provide some indication of the managerial philosophy regarding the utilization of human
resources. This philosophy of management is expressed by policies, rules, regulations and, of course, by
the actions of mangers. The reaction of the employees and the degree to which they agree within
management’s philosophy is critical to the development of a favorable climate. If management is able to
match employee’s goals to organisational goals, it is most likely to put a positive influence on climate.
The management’s attitude towards employees is indeed a major determinant to the overall organisation
climate.

2. Organisation Structure: An organisation structure is the framework of authority responsibility

relationships in an organisation. It clarifies who is to supervise whom and who
Abhinav International Monthly Refereed Journal of Research In Management & Technology
78 ISSN – 2320-0073 Volume III, January’14 Available online on www.abhinavjournal.com is
responsible to whom. It serves as the basis of inter-personal relationships between the superiors and the
subordinates and the peers (people of same rank in the organisation).The organisation structure followed
by management is critical organisational climate. If the top management feels the need of giving greater
importance to the subordinates, it will follow a decentralized structure. There will be fewer layers in the
organisational hierarchy and participative decision-making will be encouraged. The organisational
climate will be inductive to the development of the employees. But if the top management like to
maintain a

greater degree of consistency in decision-making, it would follow a centralized structure. This would
enable greater control over decisions; and organisational climate will encourage centralized information
management and decision-making.

3. Relationship between superior and subordinates: Every employee has to interact with his superior or
boss for necessary instructions and guidance. It is the immediate superior who allows (or disallows) the
subordinate to participate in decision-making, gives assignments, does performance appraisals, conducts
performance reviews, interprets policies, determines pay increments, and decides who has the potential
to be promoted. These functions are inherent in managing and every manger is concerned with these
functions. The relationship between superior and subordinate is not only of an interpersonal nature, but
it also represents the primary interface between the organisation and the employee. All mangers must
therefore be aware of the possible influence on climate when deciding the type of leadership (autocratic
or participative to be provided to the subordinates. The effectiveness of a leadership style is determined
mainly by the particular situation. In other words, the leadership style must suit the situation faced by
the manger. If it is not so, the motivation level of the workers will be low, they will feel frustrated and
dissatisfied and productivity may also go down. If the workers are not satisfied with the type of
leadership provided, effective communication will be hindered and their morale will also be low.
Therefore, every manager must consider the likely impact of this style of functioning on the
organisational climate.

4. Physical environment: It has been observed that office decor, office size and the physical space
allotted to a person at work (private office or general office) etc. have an important influence to the
development of a favorable attitude towards the job. Noise has also been considered instrumental in
influencing the climate of organisation. High level of noise may bring a bad feeling and lead to
frustration, nervousness and aggression and thus have a negative effect up to organisational climate.
Some degree of immunity to noise may be possible when it is a steady part of the external environment.
Therefore, noise to a tolerable extent may not adversely affect the organisational climate.

5. Values and Norms: Over a period of time every organisation develops a culture of its own. Culture is
the social or normality glue that holds an organisation together. It expenses the values or social ideals
and beliefs that organisation members come to share. In the words of Bro Utal, “Organisation culture is
a system of shared values (what is important) and the beliefs (how things work) that interact with a
company’s people, organisation structures, and control systems to produce behavioral norms (the way
we do things).The above quotation suggests that organisations have different cultures goals and values,
managerial styles, and norms - for carrying out activities. We have already discussed as to how
organisational goals and managerial styles influence the organisational climate. Now we shall study the
impact of values and norms.

Implications of organisational behaviour:

1. Control affects individual freedom. Hence, it is common for individuals to resist certain controls if
such controls put constraints on their freedom.

2. Control carries certain status and power implications. For example, a quality control inspector may
carry more power than a line supervisor and this may be resented.

3. When controls are based upon subjective and personal judgments as against quantified performance,
standards and appraisals, these may create interpersonal or intergroup conflicts within the
organization.

4. Excessive number of controls may limit flexibility and creativity.

This may lead to low levels of employee satisfaction and personal development.

5. Controls may influence the generation of invalid and inaccurate information. For example, if the top
management habitually reduces budget requests when reviewing them (a control activity), then the
lower management, when proposing a new budget or a new project may overstate the cost of
resources needed. Similarly, managers may set objectives lower than what are attainable so that a
higher output will look better at performance appraisal time.

6. Controls can be resented by employees if they have no control over the situation. For example, if a
professor’s performance is appraised over the number of publication of books and research articles,
but he is not afforded the freedom of time to do so because of heavy teaching loads and excessive
committee work, then it can result in frustration which may be detrimental to the entire control
system. Similarly, a manager will become highly frustrated if his performance evaluation is based
upon profits achieved by his department but he does not have the authority and control to make
operational changes such as hiring and firing of workers.
7. The control system must be synchronized to create a balance among all affecting and interconnected
variables. The standards should complement each other and not contradict each other. For example, a
 control system which emphasizes increased sales as well as reduction in advertising expenditure at the
same time may seem contradictory to the marketing manager and thus may be frustrating for him.

Meaning:

Organisational change refers to the alteration of structural relationships and roles of people in the
organization. It is largely structural in nature. An enterprise can be changed in several ways. Its
technology can be changed, its structure, its people and other elements can be changed.

What is the Organisational change?

Organizational change is the movement of an organization from one state of affairs to another. ... It
may involve a change in a company's structure, strategy, policies, procedures, technology, or culture.
The change may be planned years in advance or may be forced on an organization because of a shift
in the environment.

Nature of organisational change:

Association of People: An organization consists of people who interact with each other while they are at
work. In an organization, people perform a variety of activities to achieve a goal. Mutual understanding
and cooperation are necessary for the smooth operation of an organization. Hence, an organization is a
human association formed to achieve a common goal.

Common Goal: The basis of an organization is a common goal. It is a reason to be associated with an
organization. All activities of the members concrete on the attainment of a common goal. It motivates
them to devote their effort to produce synergy.

Allocation of Works: All the works are allocated into small units on the basis of the nature of the jobs
and ability of the members. Each work is assigned to different individuals on the basis of their skills,
ability, and experience. This enables the development of the concept of specialization among the
individuals and also contributes to developing the working efficiency.

Coordination: All activities in the organization are performed through coordination. The works which
are divided into individuals need to be linked together to focus on objectives. Coordination integrates the
efforts of various departments and members for the uniform performance of the organization.

Social composition: An organization exists to serve the needs of people caring norms and values of the
society. So, it is a social unit. People in the organization interact with each other as social relations in
workplaces. They prefer participation with dignity and equity for mutual benefits.

Hierarchy of authority: The hierarchy of authority is performed on the basis of the degree of
responsibility and accountability. It clarifies the role of each individual from the top of the subordinate
level in the organization. Therefore, authority or power has a clear hierarchy delegated from higher to
the lower level to perform organizational activities successfully.

Environment: An organization operates its activities in a dynamic environment. It consumes or takes

the necessary resources from the environment and converts them into output. Its suppliers’ output to its
external environment. But the environmental elements may or may not remain under the control of the
organization. Basically, the impact of external environments like political, economic, socio-cultural and
technology must be taken into consideration. But the internal environments like objectives, policy,
structure, resources and internal culture, etc. remain under control of the organization.

Causes of Organisational Change:

• (A) External Pressures:
• (B) Internal Pressures (Pressures for Change from Within the Organisation):
• (1) Unfreezing:
• (2) Changing:
• (3) Refreezing:
• Overcoming Resistance to Organisational Change:
Resistance to change is as much an organizational and group issue as it is an individual issue.

Organizational Resistance

Organizational inertia is the tendency for

an organization as a whole to resist change and want to maintain the status quo. Companies that suffer
from inertia become inflexible and can’t adapt to environmental or internal demands for change. Some
of the signs that organizational inertia is in play are through internal power struggles, poor decision-
making processes and bureaucratic organizational structures.
Organizational cultures and reward systems can foster resistance or acceptance of change. A culture that
promotes high levels of trust and cooperation lays the foundation for employees and their acceptance and
instigation of change. If employees are punished for honest mistakes, if new ideas aren’t rewarded, and
managers aren’t prepared for daily issues with proper training, then that organization is ripe for change
resistance.
Timing of change can also play a role in organizational inertia. If the organization is still recovering from
a large-scale change in organizational structure, that would not be the time to introduce a new
information management system. Employees will be likely to resist the change and turmoil that goes
along with a second change. Thinking about the order and timing of a planned change can help managers
avoid employee resistance.

Group Resistance

We talked about groups in an earlier module, and we learned that when groups start to work well
together, it’s because they’ve established norms and cohesion. Central norms in a group can be difficult
to change, because they involve the group’s identity. Any change to them is likely to be resisted, as
group members will work to protect each other and preserve the group. If a group is used to practicing
centralized decision making and suddenly they’ve been told to use a decentralized style of decision
making, they’re likely to resist, because it goes against their norm.
Group cohesion can affect the acceptance of change. If a cohesive group has been disbanded in favor of
a different kind of team structure, the group’s desire to stick together may make them resistant to
change. But just as group cohesion can work against change, it can also work for change. A cohesive
group looking to implement change can typically overcome any one individual member’s resistance to it.
 Individual Resistance

People resist change because they fear

the consequences. Change means learning new habits and facing new situations. Learning new skills
comes with the uncertainty of being able to master those skills. It’s easy to see why change can seem
threatening. Furthermore, if individuals sense that there will be economic insecurity or risk regarding the
change, or if they don’t trust management, this could further add to the resistance.
Sometimes, individual traits can make one change resistant. Culture, personality and prior experiences
can contribute to one’s level of acceptance where change is concerned. Management of change:
What is meant by management of change?
Change management is a systematic approach to dealing with the transition or transformation of an
organization's goals, processes or technologies. The purpose of change management is to implement
strategies for effecting change, controlling change and helping people to adapt to change.
What are the 7 R's of Change Management?
• The REASON behind the change?
• RISKS involved in the requested change?
• RESOURCES required delivering the change?
• Who RAISED the change request?
• RETURN required from the change?
• Who is RESPONSIBLE for creating, testing, and implementing the change?

RELATIONSHIP between suggested change and other changes.

1. The REASON behind the change?
Why was the change requested by the upper management or the project managers related to the project?
What was the reason behind this change request?
There can be many reasons regarding the processes of the company or the project development process,
but the most common reasons for a change request are as follows:
• Capacity increase of a project element or some other element associated with the company
• Availability increase is also a viable reason for a change request
• Minimizing a security risk can also be one of the reasons to invoke a change request
 No matter what the reason for the change request is, the entity that is filing for change has to present a
credible evidence trail or a persuasive argument to support their push for change.
This evidence has to submit to the board so that they can investigate and approve the change request.
One thing that you have to make sure of is to align all of the changes that are being proposed with the IT
strategy and business objectives associated with the organization. This will help you avoid the
expenditure of valuable resources on unnecessary changes.
1. RISKS involved in the requested change?
What are the risks associated with the changes that have been proposed in the change management
process?
You have to understand that there is risk associated with literally everything included in the project
development process and every entity associated with the organization.
The risks can be major like the company shutting down or something less fatal like losing a chunk of
data during a system upgrade.
The question is how much risk is you going to allow making sure that the changes can be administered
with that risk present and there isn’t any fatal damage to the whole shebang.
2. RESOURCES required delivering the change?
What are the resources required to administer the change the company is proposing or the project
manager is rooting for?
Whenever we talk about the project development process, we talk about the budget and available for the
project to be a definite success.
If the company doesn’t have the money to back the project development process or if they don’t have
the required or recommended personnel to finish the job, they are never going to complete the project in
time or even after the deadline.
That’s why even when you are rooting or proposing a change request, you need to make sure that you
have the right amount of resources to complete the change management process, otherwise, you’re just
shouting in the wind with no outcome.
To measure your resource pool, you first need to make sure that you know about all of the resources
that are needed for your change management process. When you narrow that down, then you can check
the resource pool for those resources, and if they are available, you will be victorious.
4. Who RAISED the change request?
One thing you need to make sure in the very start of the change management process is to get to know
the person that raised the change request in front of the board in the first place. You need to do this
because in the future it gets very hard to pinpoint the person who initiated the request because of the
mayhem everywhere.
This person is extremely valuable for you because they are the ones with the evidence to support the
change request process which they have to submit to the board as quickly as possible so that the change
request can be accepted as soon as possible and the work can begin.
5. RETURN required from the change?
What is going to be the outcome of the change that you are trying to get implemented in the whole
scenario?
Let’s say that you are working on a software development process and you are trying to add a new
feature to the software.
You need to make sure that the return that you are going to get from that feature being introduced in the
project is sufficient enough to perform the change in the first place, otherwise, there is no point in
making a change request.
This is why you must make a pros and cons list of every change that you are trying to enforce so that
you can check the returns you can get from every change being incorporated.
 6. Who is RESPONSIBLE for creating, testing, and implementing the change?
One thing you need to make sure of is to find the right person that is going to be in charge of the
creation, testing, and implementation of the change that you are trying to propose. This is where upper-
level management or project management comes into play because they have the authority and the
mindset to appoint a suitable candidate for the job so that the change management process can go
smoothly without any hiccups.
7. RELATIONSHIP between suggested change and other changes?
You need to find out about the relationship between the change that you are proposing and all of the
other changes that are swirling around your change management process.
This process is done because most of the time we see in the organizational paradigm, that the changes
not unlike tasks and processes are dependent on each other. One can’t happen without the other
happening first.
This is why it’s your job to find out the relationship between all of the different tasks so that you can
complete all of those dependencies and get your change incorporated. Conclusion
This was our take on the 7 R’s of change management, but if you think that we missed something or
there is something wrong in the content, feel free to contact us and we’ll get back to you.
Organizational Development:
It is a field of research, theory, as well as practice devoted to expanding the knowledge and effectiveness
of how people accomplish successful organizational change and performance.

What is Organisational development in OB?

A definition. Organizational development is a critical and science-based process that helps
organizations build their capacity to change and achieve greater effectiveness by developing,
improving, and reinforcing strategies, structures, and processes.

Organizational Development Examples

• Employee training. Employee training is essential, especially in the digital business environment.
• Product research and development. The development of new services, products, and ideas can change
the nature of a business. ...
• Cultural change campaigns.
Need of Organisational development:

Organizational development focuses on increased communication to influence employees to bring

about desired changes. The need for employee development stems from constant industry and market
changes. This causes an organization to regularly enhance employee skills to meet evolving market
requirements.

Need for Organisational Development:

Organisational development is a dynamic technique. It uses the behavioural science knowledge
to assist the organisations in adjusting easily to the changes. Every organisation has a need to remain
viable and to survive in the world of change. OD has grown rapidly in response to this need of the
organisations. For this purpose it uses the systems approach. There are two important factors which
cause the use of OD for the purpose of implementing planned change:

(i) Training for Change:

Employees need training to adjust with the changes. Training for change does not work properly only
through reward structure on the job. There should be a proper change in the environment of the
organisation in which people work, to make the training work proper. Thus, the basic objective of OD is
to bring about change in the organisational structure so that it supports training.
(ii) To Help in Making the Organisational Culture More Responsive:

In a dynamic environment, changes take place very rapidly. This requires a highly receptive and
effective organisation so that changes are implemented and absorbed to make organisations survive
and grow. OD can help a lot in this direction. OD reaches into all aspects of organisation culture in
order to make it more responsive. Benefits of Organisational Development:

Newton Margulies and Anthony Raia have given the following benefits of organisational

development:

1. Provides opportunities for people to function as human beings rather than mere resources in the
production process.
2. Give each member of the organisation opportunity to develop to his full potential.
3. Seeks to make the organisation more effective in meeting all its goals.
4. Tries to create an environment in which exciting and challenging work can be found.
5. Gives people in the organisation the chance to influence how they relate to work, the organisation and
the work environment.
6. Treats each human being as a person with a complex set of needs, all of which are important in his
work and life.
Organizational Development (OD) Interventions
These are structured program designed to solve a problem, thus enabling an organization to
achieve the goal. These intervention activities are designed to improve the organization’s functioning
and enable managers and leaders to better manage their team and organization cultures. These OD
interventions are required to address the issues that an organization might be facing ranging from
process, performance, knowledge, skill, will, technology, appraisal, career development, attrition, top
talent retention and the list can actually be pretty exhaustive.
There are 3 types of interventions that an organization should be able to identify and plan to implement.
1. Individual: Interventions pertaining to an individual.
2. Group: Interventions pertaining to a group.
3. Organization: Interventions related to the organization’s strategy and policy.
An organization should be able to identify the kind of OD intervention required. Once the intervention is
identified the organization should then plan to address or eradicate the issue at hand in an effective
manner. Below mentioned are the OD intervention process that an organization should have to address
any intervention.
1. Entering and Contracting: Here we establish the fact that yes we do require OD intervention to
address an issue.
2. Diagnosis: In this process we identify the intervention and establish the root cause of the issue.
3. Designing Intervention: In this process we design the approach to address the issue or intervene to
sort the issue out and bring value to business.
4. Leading and Managing Change: Here we establish a focus group with management buy in and
implement the designed intervention. OD intervention is a structured programme driven from top to
bottom.
5. Evaluating and Institutionalizing Interventions: Here we evaluate the course of actions
implemented and see if we are on track or if we need to re-design the approach so that the objective if
met.
There are 4 types in which the OD intervention process can be bundled together.
1. Human Process: Human process related activities are tagged under this group viz. a. Job
Analysis.
b. Team Building Activities.
2. Strategic: Activities related to organizational strategies and policies are grouped under this bucket.
3. Human Resource Management: Human resource related activities are grouped under this bucket
viz.
a. Reward and Recognition.
b. Appraisal.
c. Career Development.
4. Techno structural: Activities related to technology or where technology is related are tagged
under this type.
Unit - 6

What Is an Organizational Structure?

An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization. These activities can include rules, roles, and responsibilities.
The organizational structure also determines how information flows between levels within the company.
For example, in a centralized structure, decisions flow from the top down, while in a decentralized
structure, decision-making power is distributed among various levels of the organization.
Having an organizational structure in place allows companies to remain efficient and focused.
Organizational Structure FAQs
What are the four types of organizational structures?
The four types of organizational structures are functional, divisional, flatarchy, and matrix structures.
Types of Organizational Structures
Functional Structure
Four types of common organizational structures are implemented in the real world. The first and most
common is a functional structure. This is also referred to as a bureaucratic organizational structure and
breaks up a company based on the specialization of its workforce. Most small-to-medium-sized
businesses implement a functional structure. Dividing the firm into departments consisting of marketing,
sales, and operations is the act of using a bureaucratic organizational structure.
Divisional or Multidivisional Structure
The second type is common among large companies with many business units. Called the divisional or
multidivisional structure, a company that uses this method structures its leadership team based on the
products, projects, or subsidiaries they operate. A good example of this structure is Johnson & Johnson.
With thousands of products and lines of business, the company structures itself so each business unit
operates as its own company with its own president.
Flatarchy Structure
Flatarchy, a newer structure, is the third type and is used among many startups. As the name alludes, it
flattens the hierarchy and chain of command and gives its employees a lot of autonomy. Companies that
use this type of structure have a high speed of implementation.
Matrix Structure
The fourth and final organizational structure is a matrix structure. It is also the most confusing and the
least used. This structure matrixes employees across different superiors, divisions, or departments. An
employee working for a matrixed company, for example, may have duties in both sales and customer
service.
Benefits of Organizational Structures
Putting an organizational structure in place can be very beneficial to a company. The structure not only
defines a company's hierarchy but also allows the firm to layout the pay structure for its employees. By
putting the organizational structure in place, the firm can decide salary grades and ranges for each
position.
The structure also makes operations more efficient and much more effective. By separating employees
and functions into different departments, the company can perform different operations at once
seamlessly.
In addition, a very clear organizational structure informs employees how best to get their jobs done. For
example, in a hierarchical organization, employees will have to work harder at buying favor or courting
those with decision-making power. In a decentralized organization, employees must take on more
initiative and bring creative problem solving to the table. This can also help set expectations for how
employees can track their own growth within a company and emphasize a certain set of skills—as well
as for potential employees to gauge if such a company would be a good fit with their own interests and
work styles.
What are the key elements of an organizational structure?
Key elements of an organizational structure include how certain activities are directed in order to
achieve the goals of an organization, such as rules, roles, responsibilities, and how information flows
between levels within the company.
What is an organizational structure example?
An example of an organizational structure is a decentralized structure, which gives individuals and
teams high degrees of autonomy without needing a core team to regularly approve business decisions. A
good example of this decentralized structure is Johnson & Johnson. With thousands of products and
lines of business, the company structures itself so each business unit operates as its own company with
its own president.
What is an organizational structure chart?
Organizational structures are normally illustrated in some sort of chart or diagram like a pyramid, where
the most powerful members of the organization sit at the top, while those with the least amount of power
are at the bottom.
What is the best organizational structure?
There is no one best organizational structure, as it depends on the nature of the company and the
industry it operates in.
The Bottom Line
There are entire fields of study based on how to optimize and best structure organizations to be the most
effective and productive. Senior leaders should consider a variety of factors before deciding which type
of organization is best for their business, including the business goals, industry, and culture of the
company.
PATTERNS OF ORGANISATION
STRUCTURES OF ORGANISATION

HOSPITAL ORGANISATION STRUCTURE