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One day open training event held in Toronto, Canada.
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Organization development and organization design
by Toronto Training and HR
January 2012
Contents
3-4 Introduction to Toronto Training and HR5-6 Definitions7-8 Planned change9-19 The Work Levels Model20-21 Key aspects of work23-29 The reconfigurable organization30-34 Organizational learning35-38 The learning organization39-42 Competence at the organization level43-45 Ways of looking at organizations46-55 Reviewing organization structure56-59 Present and future talent needs60-66 HR and organization development 67-73 Organization development practitioners74-75 Organizational structure and job design76-77 Types of organization design78-82 Organization design principles and processes83-90 Three design contexts91-94 An organization design model95-96 Trends in organization design97-98 Looking forward99-100Conclusion and questions
Page 3
Introduction
Page 4
Introduction to Toronto Training and HR
• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden
• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR
are:- Training event design- Training event delivery- Reducing costs- Saving time- Improving employee engagement &
morale- Services for job seekers
Page 5
Definitions
Page 6
DefinitionsOrganization developmentOrganization design
Page 7
Planned change
Page 8
Planned changeReasons for rapid changeBasic principlesTypical phasesTypes of interventionsEstablished modelsMovements
Page 9
The Work Levels model
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The Work Levels model 1 of 10
AccountabilityHierarchyRole assignmentThe golden rule
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The Work Levels model 2 of 10
LEVEL ONERoutine, practical judgementLEVEL TWODiagnostic judgementLEVEL THREESystematic coordinationLEVEL FOURStrategic development
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The Work Levels model 3 of 10
LEVEL FIVEStrategic directionLEVEL SIXEnvironmental screeningLEVEL SEVENShaping context
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The Work Levels model 4 of 10
BENEFITS TO THE ORGANIZATION:A robust, dynamic and flexible organization structureAn externally focussed and responsive organizationClear and effective channels of communication Transparent process flowsEasy capability assessment
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The Work Levels model 5 of 10
BENEFITS TO THE ORGANIZATION:Effective potential assessment, career development and successionA performance-driven cultureSignificant cost efficiencies and enhanced overall business performance
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The Work Levels model 6 of 10
APPLICATION OF WORK LEVELS:manage and enhance the performance of role holders against clear accountabilities androle demands
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The Work Levels model 7 of 10
APPLICATION OF WORK LEVELS:intervene effectively to ensure that individuals are developing the competencies and skills they need to discharge their accountabilities at different levels of work recruit and select individuals against level-based role accountabilities and demands
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The Work Levels model 8 of 10
APPLICATION OF WORK LEVELS:assess the potential of individuals against the competencies required to operate at different levels of workmanage people’s careers to ensure they realise their full potential and ensure appropriatesuccession to key roles in the hierarchy
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The Work Levels model 9 of 10
APPLICATION OF WORK LEVELS:ensure that rewards reflect contribution to the organization, in terms of accountabilities and complexity
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The Work Levels model 10 of 10
APPLICATION OF WORK LEVELS:shape and manage a performance-orientated organization culture, which encourages and enables people at all levels to contribute effectively to the achievement of organizationalobjectives
Page 20
Key aspects of work
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Key aspects of work 1 of 2
Time-span of discretionThe nature of work Resource complexityProblem-solvingDiscretionary authority
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Key aspects of work 2 of 2
JOB DIMENSIONS AND THEIR EFFECTSSkill varietyTask identityTask significanceAutonomyFeedback
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The reconfigurable organization
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The reconfigurable organization 1 of 6
Teams and networks that cross organizational departmentsUse of internal prices, markets and market-like devices to coordinate the activity of multipleteamsForming partnerships for the capabilities the organization does not have
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The reconfigurable organization 2 of 6
SELF-MANAGED WORK TEAMS:Minimal rulesVariance control Multi-skillsBoundary locationInformation flow
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The reconfigurable organization 3 of 6
BENEFITS OF SELF-MANAGED WORK TEAMS:Better decisions because there are multiple sources of input and feedback, and the decisions are made closer to the issue and by people who have the greatest knowledge and ability to take effective action
Page 27
The reconfigurable organization 4 of 6
BENEFITS OF SELF-MANAGED WORK TEAMS:People in the organization feel accountable and responsible for the success of theenterpriseThere is buy-in on decisions made by the teamPeople are better able to adjust to the rapidly changing competitive and global environment
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The reconfigurable organization 5 of 6
BENEFITS OF SELF-MANAGED WORK TEAMS:Cross training and building organizational depth is easierPeople are more flexible and respond faster to customersThere is more opportunity for diversity in work and leadership roles for team members
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The reconfigurable organization 6 of 6
BENEFITS OF SELF-MANAGED WORK TEAMS:People are better suited for continuous improvementPeer feedback provides more opportunity for growth
Page 30
Organizational learning
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Organizational learning 1 of 4
WAYS TO ADVANCE ORGANIZATIONAL LEARNINGCreate a “learning culture” where opportunities for formal and informal learning can occur among employees up and down the organizational chartEnsure personal development and development of subordinates remains a key performance objective for everyone
Page 32
Organizational learning 2 of 4
WAYS TO ADVANCE ORGANIZATIONAL LEARNINGBuild learning opportunities into every post-project evaluationCreate cross-disciplinary learning opportunitiesMatch the competencies needed for achieving business objectives against the skill inventories of incumbents; source internal or external subject matter experts to fill the gaps
Page 33
Organizational learning 3 of 4
WAYS TO ADVANCE ORGANIZATIONAL LEARNINGKeep the development and advancement of subordinates a meaningful metric for the assessment of leaders Maintain close ties between hiring managers and recruitment professionals; in cases when core competencies are in short supply in the labor pool, internal training programs might make sense
Page 34
Organizational learning 4 of 4
WAYS TO ADVANCE ORGANIZATIONAL LEARNINGMonitor performance appraisal tools for trends in employee development needsConsider the value of knowledge management programs
Page 35
The learning organization
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The learning organization 1 of 3
A learning approach to strategyParticipative policy-making with consultation and participation by people from all parts of the organizationOpen information systemsFormative accounting and control
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The learning organization 2 of 3
Internal exchange of ideas and informationFlexibility of rewards so that people can work to their own best wayStructures that make individual contributions possible
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The learning organization 3 of 3
Capacity for boundary workers to act as boundary scannersInter-worker learningA learning climate for allSelf-development opportunities for all
Page 39
Competence at the organization level
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Competence at the organization level 1 of 3
DefinitionAttracting the human resources adequate to the organization activity from the labour marketIts use according to the existing technical and technological requirements, as well as a discipline required by the specific servicesThe involvement and innovation according to the requirements of the created product’s consumer
Page 41
Competence at the organization level 2 of 3
TYPES OF COMPETENCEBehavioural competenceTechnical competenceConcept of ability
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Competence at the organization level 3 of 3
CORRELATED PROCESSESSchooling and professional orientation is essential to ensure the individual competence of employees of an organization and attain performanceDetection of specific natural characteristics and appropriate orientation of young people is the role of the educational and vocational orientation systemKnowledge managementRoles and jobs
Page 43
Ways of looking at organizations
Page 44
Ways of looking at organizations 1 of 2
Organizations as machinesOrganizations as organismsOrganizations as culturesOrganizations as political systemsOrganizations as brainsOrganizations as psychic prisonsOrganizations as instruments of domination
Page 45
Ways of looking at organizations 2 of 2
ORGANIZATIONAL PRINCIPLESExclusive organizational principlesInclusive organizational principles
Page 46
Reviewing organization structure
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Reviewing organization structure 1 of 9
Page 48
Reviewing organization structure 2 of 9
Once the goals and strat egy are deter mined; cur rent func tions, work processes and inter con nected activ i ties need to be iden ti fied and assessed:
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Reviewing organization structure 3 of 9
What is it that you do?What are the major func tions of your business?Do the cur rent work units and report ing rela tion ships sup port the strate gic plan?
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Reviewing organization structure 4 of 9
An in-depth under stand ing of cur rent processes is vital to under stand ing what needs to be changed-now that you have assessed func tions and work processes, the orga ni za tional struc ture com po nent needs to be addressed:
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Reviewing organization structure 5 of 9
Do we need to add a new work unit?Should we com bine por tions of work units?
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Reviewing organization structure 6 of 9
How many lev els of man age ment are required to meet the strate gic plan?Would a Matrix Design be more effec tive in reach ing our goals?
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Reviewing organization structure 7 of 9
MORE FACTORS TO CONSIDER:The actual work sys tems need to be acknowl edgedWhat is the busi ness plan for each unit?Who is mon i tor ing the work?How are resource allo ca tion and tech nol ogy imple mented?How do the sup port func tions contribute?
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Reviewing organization structure 8 of 9
Integrate peo ple, pro fes sions, and skills:Will we hire a new man ager from out side or pro mote from within? Do the exist ing employ ees have the skills required to ful fill new respon si bil i ties as a result of required changes?
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Reviewing organization structure 9 of 9
Finally, a major fac tor that needs to be con sid ered is the cul ture of the orga ni za tion, as orga ni za tional cul ture is a key dri ver for suc cess in orga ni za tional changeA paper exer cise will not help if employ ees are not will ing to accept the new way of operating
Page 56
Present and future talent needs
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Present and future talent needs 1 of 3
Career managementCareer development
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Present and future talent needs 2 of 3
TALENT MANAGEMENT OBJECTIVESIdentify business essentialsDevelop existing peopleBuild bench strength
Page 59
Present and future talent needs 3 of 3
INTEGRATED TALENT MANAGEMENTMeasurement of organizational and individual capability gapsAlignment of strategy, organization design, and peopleDeployment of talentExpansion of organizational and individualcapabilities
Page 60
HR and organization development
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HR and organization development 1 of 6
THE HR DOMAINIs talent discussed at the strategy table?Are we attracting and retaining top talent?Are our best leaders in the most critical jobs?Do we have retention plans for key executives and positions?
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HR and organization development 2 of 6
THE HR DOMAINWho can we not live without? What could have been done to keep the top talent we lost?Are there situations where high potentials are being blocked in their advancement?Why do people join our company? Stay? Leave?
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HR and organization development 3 of 6
THE HR DOMAINDo we have plans in place to increase or sustain employee productivity, development, and retention? Are the plans working?
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HR and organization development 4 of 6
THE ORGANIZATION DEVELOPMENT DOMAINIs talent discussed at the strategy table?Do our corporate values reflect talent as a priority?What is our culture? Does it fit with what we say it is?
Page 65
HR and organization development 5 of 6
THE ORGANIZATION DEVELOPMENT DOMAINDo standards exist that describe the skills, behaviours, and attributes of an exceptional leader?Does the organization design support the strategy?Succession depth, do we have multiple backups for critical positions? Will we have the talent we’ll need for success in 2 years? 5 years? 10 years?
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HR and organization development 6 of 6
THE ORGANIZATION DEVELOPMENT DOMAINWhich talent segments add the most value?Are we good at workforce planning? How can we improve?Do we have a plan to increase employeeengagement? Is the plan working?
Page 67
Organization development practitioners
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Organization development practitioners 1 of 6
Understanding social systems, drawing on theories and ideas from the social sciences, including psychology, social psychology, sociology, anthropology, political science, and others, consistent with organization development values
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Organization development practitioners 2 of 6
Understanding the hows and whys of change, including the bodies of knowledge that help explain how all levels of the system—individual, group, organizational, community, and even societies change
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Organization development practitioners 3 of 6
Understanding the role of the third party change agent, especially aiding the person in charge as well as the system itself to bring about the desiredchanges, requiring an understanding of the issues, politics, psychological processes related to being a third party in a change process
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Organization development practitioners 4 of 6
SKILLSStart with processGathering and assessing dataFeedback and decisionForm your planInterveneEvaluate
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Organization development practitioners 5 of 6
WHAT DO THEY DO?Establishing relationships with key personnel in the organization (often called "entering" and "contracting" with the organization)Researching and evaluating systems in the organization to understand dysfunctions and/or goals of the systems in the organization ("diagnosing" the systems in the organization)
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Organization development practitioners 6 of 6
WHAT DO THEY DO?Identifying approaches (or "interventions") to improve effectiveness of the organization and its peopleApplying approaches to improve effectiveness (methods of "planned change" in the organization)Evaluating the ongoing effectiveness of the approaches and their results
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Organizational structure and job
design
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Organizational structure and job design
Types of structuresJob design
Job descriptionsGlobal organizational development
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Types of organization design
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Types of organization designDivi sion of Labour (depart men tal iza tion and/or spe cial iza tion) Depart men tal iza tion (func tional, pur pose and/or location-based)Coor di na tion and Con trol (chain of com mand, span of con trol) Author ity and Respon si bil ityLine activ i ties ver sus Staff activ i ties Job design
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Organization design principles and
processes
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Organization design principles and processes 1
of 4CompatibilityMinimal critical specificationsVariance control at sourceBoundary location enabling self-regulationInformation flows first to primary task holderAuthority and resources match whole task accountabilityMultifunctional teams
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Organization design principles and processes 2
of 4Congruent support systemsOngoing redesignQuality of working lifeParticipative and democraticStakeholder and strength-centredJoint optimization and innovation
Page 81
Organization design principles and processes 3
of 4Build the senior leadership teamDesign the organizational strategyDetermine the structure needed to implement the strategyDesign the working relationships between functionsEnsure people are in the right roles for now and in the future
Page 82
Organization design principles and processes 4
of 4Manage performance; ensure that managers are skilled at managerial leadershipStrengthen the role of managers who are responsible for managing other managersBuild the compensation system
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Three design contexts
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Three design contexts 1 of 7
1. Hierarchically-integrated, decentralized Organization – multiple sub-units/teams within a business unit bound by shared resources2. Value Realization Network – multiple entities within an environment bound by shared outcomes3. Social Eco-system – multiple entities within an environment bound by shared will for issue resolution
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Three design contexts 2 of 7
Hierarchically-integrated, decentralized Organization
Page 6
Three design contexts 3 of 7Hierarchically-integrated, decentralized Organization
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Three design contexts 4 of 7
Value Realization Network
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Three design contexts 5 of 7
Value Realization Network
Page 6
Three design contexts 6 of 7
Social Eco-system
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Three design contexts 7 of 7
Social Eco-system
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An organization design model
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An organization design model 1 of 3Align organizations with their outside
circumstances by quickly aligning structural components (managerial strategy) with the outside environment (contextual variables)
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An organization design model 2 of 3CONTEXTUAL VARIABLES
Environment TechnologyCompetitive StrategyOrganizational sizeNature of workforce
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An organization design model 3 of 3TYPICAL STRUCTURAL FORMS
geography customer segment product or line of business process
Page 95
Trends in organization design
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Trends in organization design
DownsizingNature of organizational changesMultidimensionalityNetworkingLateral integrationCustomer orientationProcess orientationKnowledge distribution
Page 97
Looking forward
Page 98
Looking forwardMore access for leaders and managersMore complete business trainingMore focus on 20% that makes 80%More focus on small organizationsMore focus on community developmentMore integration with other professionsMore on-line diagnosis and interventionMore practical systems toolsFewer myths, e.g. “Credible if:”
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Conclusion & Questions
Page 100
Conclusion
SummaryVideosQuestions
