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## PowerPoint Slideshow about ' The Congruence Model' - eliana-pickett

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The Congruence Model

- The critical first step to successfully lead large-scale organizational change is to understand the dynamics and the performance of the enterprise.
- The tried and true managerial tricks do not always work. The new, a unique set of problems watched through the old, well-worn filters might leave the real issues undetected.

The Congruence Model

- The congruence model is a useful tool that helps leaders fully grasp the interplay of social and technical forces that shape the performance of each organization.
- It suggests that the starting point for analyzing organizational performance is to first understand the organization as a system.
- The organization consists of a basic set of elements: input, strategy, output, and the transformation process.

Basic organizational components - Input

- Three main categories of input:
- The environment
- Imposes demands
- Imposes constraints
- Provides opportunities
- Resources
- History (Ex.: Xerox)

Basic organizational components - Strategy & Output

- Two levels of strategic questions:
- Corporate strategy
- Business strategy
- Markets
- Offerings
- Competitive basis
- Three levels of output:
- The total system
- Units within the system
- Individuals

Basic organizational components - The organizational transformation process

- The heart of the model
- Four key components of the organization:
- Work
- People
- Formal organizational arrangements
- Informal organization

The concept of fit

- The organization’s performance rests upon the alignment of the components (work, people, formal org., informal org.)
- The tighter the fit - the greater the congruence, the higher the performance.
- The interaction between each set of organizational components is more important than the components themselves.
- Normally, managers only have to do the necessary adjustments, but some situations call for radical, large-scale change. (Ex.: Xerox)

Analyzing the organization’s problems

- The congruence model gives a conceptual framework to solve the organization’s problems:
- Identify the symptoms
- Specify the input
- Identify the input
- Identify the problems
- Describe the organizational components
- Assess the congruence
- Generate hypotheses about problem causes
- Identify the action steps

Using the Congruence Model

- Make sure the new strategy fits the organization’s resources and environment!
- Be sure the strategy fits the formal structures, systems, and processes!
- Constantly be on the lookout for inappropriate fit among all the internal components of the organization!

Give practical examples of how the manager can follow the 8 steps mentioned above to solve the organization’s problems!

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