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Organizational Design, Diagnosis, and Development

Organizational Design, Diagnosis, and Development. Session 24 Strategic Interventions, I Organization & Environment Relationships. Objectives. To review organization and environment relationships To understand when the intervention needs to be a strategic one

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Organizational Design, Diagnosis, and Development

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  1. Organizational Design, Diagnosis, and Development Session 24 Strategic Interventions, I Organization & Environment Relationships

  2. Objectives • To review organization and environment relationships • To understand when the intervention needs to be a strategic one • To describe three strategic interventions and demonstrate how organizations respond to and effect environmental relationships.

  3. Components of the Environment • General Economy • Customers • Suppliers • Competitors • Social factors • Legal and social factors • Technology

  4. Environmental Uncertainty Complexity Complex Simple Moderately Low Uncertainty Many factors which remain the same Static Low Uncertainty Few factors which remain the same Rate of Change High Uncertainty Many factors which are in a state of change Moderately High Uncertainty Few factors which are in a state of change Dynamic

  5. Environmental Sensitivity Resource Dependence High Low Low Sensitivity churches & convenience stores Moderately low Sensitivity child care agencies restaurants Low Uncer- tainty High Sensitivity Utilities, financial services, pharmaceutical industry Moderately high Sensitivity general manufacturing High

  6. Managing Environmental Uncertainty • Organizational structure • Vertical integration • Mergers and acquisitions • Strategic alliances

  7. Strategic Interventions • Open systems planning • Integrated strategic change • Transorganizational development

  8. Open Systems Planning • Role of members’ perceptions • Implementation process • Environmental assessment • Identify core processes • Create future scenarios (real and ideal) • Compare scenarios to present and create plans for moving towards the future

  9. Integrated Strategic Change • Perform strategic analysis • Exercise strategic choice • Design change plan • Implement change plan

  10. The Fed Ex Example • Core competency: Fast delivery, tracking systems • The environment: Technology, Competition, Customers • The red flags • The strategic shift: Competing with the competition, E-commerce, Technology advantage

  11. Transorganizational Development • Identification stage • Convention stage • Organization stage • Evaluation stage

  12. Backwards & Forwards • Summing up: Today we considered strategic intervention including open systems planning, integrated strategic change, and transorganizational development. Fed Ex was used as a case in point for strategic change. • Looking ahead: Next time we conclude our discussion of strategic interventions with a look at organization transformation. The focus will be on organizational culture and learning

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