Organizational Development and Change
Organizational Development and Change
Autonomy: Teams have the freedom to make decisions regarding their work processes, goals, and
methods. This autonomy fosters innovation and responsiveness to change.
Continuous Learning: These organizations prioritize learning at all levels. Employees are
encouraged to experiment, share knowledge, and reflect on their experiences to improve
performance.
Fluid Structures: Instead of fixed hierarchies, self-designing organizations often employ fluid
structures that allow for dynamic team formations based on project needs or challenges.
Feedback Mechanisms: Regular feedback loops are established to ensure that teams can
assess their performance and adapt accordingly.
Example of a Self-Designing Organization:
One prominent example of a self-designing organization is W.L. Gore & Associates, the
company behind GORE-TEX products. W.L. Gore operates with a unique organizational
model characterized by minimal hierarchy and an emphasis on employee autonomy.
Employees, referred to as “associates,” are encouraged to pursue projects they are passionate
about without strict managerial oversight. The company fosters a culture of collaboration
where associates form teams based on shared interests rather than formal job titles or
departments.
In this environment, associates engage in continuous learning through experimentation with
new materials and technologies while receiving feedback from peers rather than top-down
evaluations. This approach has led to significant innovations in product development while
maintaining high employee satisfaction rates.
To explain how dynamic capabilities built into the organization enable it to adapt to rapidly
shifting environments constantly
Knowledge Creation:
Organizations must foster an environment conducive to innovation and creativity,
encouraging employees to generate new ideas and solutions. This can involve collaborative
projects, brainstorming sessions, or research initiatives that stimulate the development of new
knowledge.
Knowledge Capture:
Once knowledge is created, it needs to be captured effectively. This can be achieved through
documentation processes such as reports, databases, or content management systems that
store valuable insights and experiences for future reference.
Knowledge Sharing:
Effective sharing mechanisms must be established to disseminate knowledge across the
organization. This may include training programs, workshops, online forums, or intranet
platforms where employees can exchange information and best practices.
Knowledge Utilization:
The ultimate goal of KM is to apply the shared knowledge in decision-making processes and
operational activities. Organizations should create frameworks that encourage employees to
leverage available knowledge in their daily tasks to improve efficiency and innovation.
Knowledge Evaluation:
Continuous assessment of KM practices is essential for improvement. Organizations should
evaluate how well their KM initiatives are functioning by measuring outcomes such as
employee engagement with KM tools, the impact on productivity, and overall organizational
performance.
Feedback Mechanism:
Establishing a feedback loop allows organizations to refine their KM processes based on user
experiences and changing needs within the organization. Regular feedback helps in adapting
strategies to better serve organizational goals.
Sustaining Knowledge Management Practices:
Finally, sustaining KM practices requires ongoing commitment from leadership and
continuous investment in technology and training
OD interventions: People and Process
Describe performance management and appraisal from both individual and group
perspectives.
Performance management and appraisal are critical components of organizational behavior
that focus on assessing and enhancing employee performance. These processes are essential
for aligning individual and group objectives with the broader goals of an organization. They
involve systematic approaches to evaluating employee contributions, providing feedback, and
fostering professional development.
Individual Perspective
From an individual perspective, performance management involves setting clear
expectations, monitoring progress, providing ongoing feedback, and conducting formal
appraisals. The process typically includes:
Goal Setting: Employees work with their managers to establish specific, measurable,
achievable, relevant, and time-bound (SMART) goals.
Continuous Feedback: Regular check-ins allow for real-time feedback on performance,
which can help employees adjust their efforts as needed.
Formal Appraisal: At the end of a designated period (often annually), a formal review is
conducted where performance against the established goals is assessed.
For example, in the Pacific region, a company like Air New Zealand may implement a
performance management system where flight attendants receive regular feedback on
customer service metrics. This could include passenger satisfaction scores collected through
surveys after flights. The annual appraisal would then evaluate how well each attendant met
their service targets over the year.
Group Perspective
From a group perspective, performance management focuses on team dynamics and
collective outcomes rather than just individual achievements. Key elements include:
Team Objectives: Establishing shared goals that require collaboration among team members.
Group Feedback Mechanisms: Implementing systems that allow teams to assess their
collective performance regularly.
Recognition of Team Achievements: Acknowledging not only individual contributions but
also how well teams work together to achieve common objectives.
In the Pacific context, consider a project team working on environmental conservation
initiatives in Fiji. The team might set collective goals such as reducing plastic waste in local
communities by 30% within a year. Performance appraisals would assess both individual
contributions (e.g., outreach efforts by each member) and overall team effectiveness in
achieving this goal.
Conclusion
Both individual and group perspectives on performance management and appraisal are vital
for fostering an environment of continuous improvement within organizations. By integrating
these approaches effectively, organizations can enhance productivity while also promoting
employee engagement and satisfaction.
Discuss the interpersonal processes of organization development (OD).
2. Motivational Approach
The motivational approach focuses on enhancing employee satisfaction and motivation
through job design. This perspective draws from theories such as Herzberg’s Two-Factor
Theory and Hackman and Oldham’s Job Characteristics Model. The goal is to create jobs that
not only fulfill organizational needs but also engage employees by providing them with
meaningful work.
Example: A software development company may implement agile methodologies that allow
team members to take ownership of projects, collaborate closely with others, and have a say
in decision-making processes. By providing opportunities for skill variety, task identity,
autonomy, and feedback, employees are more likely to feel motivated and satisfied with their
work.
3. Biological Approach
The biological approach considers the physical aspects of work design with an emphasis on
ergonomics and employee well-being. This perspective aims to reduce physical strain on
workers by designing jobs that accommodate human capabilities and limitations. It seeks to
enhance safety, comfort, and health in the workplace.
Example: In an office environment, ergonomic furniture such as adjustable desks and chairs
can be implemented to promote better posture among employees who spend long hours at
their desks. Additionally, incorporating regular breaks into the work schedule can help reduce
fatigue and improve overall productivity.
Conclusion
Three approaches to work design: mechanistic, motivational, and biological, offer distinct
perspectives on efficiency, employee engagement, and health, enabling organizations to
create a balanced work environment.
Define and explain organizational design. Analyse the cultural aspects of change and
organizational design.
Organizational design refers to the process of structuring an organization in a way that aligns
its resources, processes, and systems with its strategic objectives. It encompasses the
arrangement of roles, responsibilities, communication systems, and authority within an
organization. The primary goal of organizational design is to create a framework that
enhances efficiency, fosters collaboration, and enables effective decision-making.
The concept of organizational design can be broken down into several key components:
Structure: This involves determining how tasks are divided, grouped, and coordinated.
Common structures include functional (grouping by function), divisional (grouping by
product or market), matrix (a hybrid of functional and divisional), and network structures.
Processes: These are the workflows and procedures that dictate how work is performed
within the organization. Effective processes ensure that resources are utilized efficiently and
that there is clarity in how tasks are executed.
Culture: Organizational culture plays a critical role in shaping behavior within the
organization. It encompasses shared values, beliefs, norms, and practices that influence how
employees interact with one another and approach their work.
Technology: The tools and technologies employed by an organization can significantly
impact its design. The integration of technology into organizational processes can enhance
communication, streamline operations, and facilitate innovation.
Environment: Organizations operate within external environments that can affect their design
choices. Factors such as market dynamics, regulatory requirements, competition, and
technological advancements must be considered when designing an organization.
Cultural Aspects of Change in Organizational Design
Change is an inherent aspect of organizational life; however, it often meets resistance due to
established cultural norms. Culture influences how change is perceived and enacted within an
organization. When considering cultural aspects in organizational design during periods of
change, several factors come into play:
Shared Values: An organization’s culture is rooted in shared values among its members.
When changes are introduced—such as restructuring or new processes—these values may
either support or hinder acceptance of the change.
Communication: Effective communication is essential for successful change management.
Cultural norms dictate how information flows within an organization; thus, understanding
these norms can help leaders communicate changes more effectively.
Employee Engagement: Engaging employees in the change process fosters a sense of
ownership and reduces resistance to change. Cultures that prioritize employee involvement
tend to adapt more readily to new designs.
Leadership Style: Leadership plays a pivotal role in shaping organizational culture during
times of change. Leaders who embody the desired cultural attributes can inspire others to
embrace new structures or processes.
Adaptability: A culture that promotes flexibility and adaptability will likely respond
positively to changes in organizational design. Conversely, rigid cultures may struggle with
transitions due to entrenched behaviors or mindsets.
In summary, organizational design is a multifaceted process aimed at aligning structure with
strategy while considering cultural dynamics during periods of change is crucial for
successful implementation.
Global social change refers to significant alterations over time in behavior patterns, cultural
norms, values, and social structures that affect societies on a worldwide scale. These changes
can arise from various factors, including technological advancements, economic shifts,
political movements, environmental challenges, and cultural exchanges. Global social change
is often characterized by its complexity and interconnectedness; it reflects the dynamic nature
of human societies as they adapt to new realities.
Examples of Global Social Change
Technological Advancements: The rise of the internet and digital communication has
transformed how people interact, work, and access information. For instance, social media
platforms have enabled global connectivity and activism, leading to movements such as
#MeToo and Black Lives Matter that transcend national boundaries.
Environmental Movements: Increasing awareness of climate change has led to a global
shift in attitudes towards sustainability. Initiatives like the Paris Agreement illustrate how
countries are coming together to address environmental issues collectively. This change is
reflected in the growing popularity of renewable energy sources and sustainable practices
across various sectors.
Migration Patterns: Globalization has facilitated increased migration for economic
opportunities or refuge from conflict. This movement has resulted in multicultural societies
where diverse cultures coexist but also raises challenges related to integration and social
cohesion.
Gender Equality Movements: The fight for gender equality has gained momentum globally,
with movements advocating for women’s rights in various contexts—from reproductive
rights to equal pay. This shift is evident in legislative changes in many countries aimed at
promoting gender equity.
Change agents are often characterized by their ability to influence others and drive change
initiatives. They possess strong communication skills, emotional intelligence, and a deep
understanding of the systems they operate within. They may be formal leaders within an
organization or informal influencers who have the respect and trust of their peers.
Competitive strategies refer to the methods and tactics that organizations employ to gain an
advantage over their rivals in the marketplace. These strategies are essential for businesses
aiming to achieve superior performance, enhance market share, and ensure long-term
sustainability. Competitive strategies can be broadly categorized into three primary types:
cost leadership, differentiation, and focus.
Cost Leadership: This strategy involves becoming the lowest-cost producer in an industry.
Companies adopting this approach aim to attract a broad customer base by offering products
or services at lower prices than competitors. Achieving cost leadership often requires
significant investments in technology, efficient production processes, and economies of scale.
For example, Walmart employs a cost leadership strategy by leveraging its vast supply chain
network and bulk purchasing power to offer low prices on a wide range of products.
Differentiation: Differentiation strategies focus on creating unique products or services that
stand out from competitors. This uniqueness can stem from various factors such as quality,
features, branding, or customer service. Companies that successfully differentiate themselves
can command premium prices due to perceived value among consumers. An example of
differentiation is Apple Inc., which offers innovative technology products with distinctive
designs and user experiences that set them apart from other brands.
Focus Strategy: The focus strategy involves concentrating on a specific market segment or
niche rather than targeting the entire market. Companies using this strategy tailor their
offerings to meet the particular needs of their chosen segment, whether through cost focus
(offering lower prices) or differentiation focus (providing specialized products). An example
of a company employing a focus strategy is Rolls-Royce, which targets the luxury automobile
market with high-end vehicles tailored for affluent customers.
In addition to these primary strategies, businesses may also adopt hybrid approaches that
combine elements of both cost leadership and differentiation to create competitive advantages
tailored to their specific markets.
Assessment and Planning: The first step in managing network change is to conduct a
thorough assessment of the current network environment. This includes identifying existing
hardware and software components, understanding traffic patterns, evaluating performance
metrics, and recognizing potential vulnerabilities. Once this assessment is complete, a
detailed plan for the proposed changes should be developed. This plan should outline
objectives, timelines, resource allocation, risk assessments, and contingency plans.
Example: A company may decide to upgrade its routers to improve bandwidth. The IT team
would assess current router capabilities against projected traffic demands and create a plan
that includes selecting new equipment, scheduling installation during off-peak hours, and
preparing rollback procedures in case of failure.
Example: Prior to implementing a new firewall system that could affect internet access
speeds for employees, the IT department might hold meetings with staff to explain the
benefits of enhanced security measures while also addressing concerns about potential
disruptions.
Example: Following an upgrade of network switches aimed at reducing latency issues in data
transmission between departments, IT staff would monitor traffic flow and user feedback
closely for several weeks post-implementation.
Documentation and Review: Finally, documenting all aspects of the change process—
including planning documents, implementation steps taken, issues encountered during
deployment, and outcomes—is vital for future reference. A review meeting with stakeholders
can help identify lessons learned that can inform future network changes.
Learning organisations are those with the ability to learn how to change and improve themselves
constantly.
Individual learning, which focuses on the knowledge, skills and abilities of the individual employee,
this intervention helps organisations move beyond solving existing problems to gaining the capability
to improve continuously.
It results in the development of a learning organisation where empowered members take responsibility
for changing the organisation and learning how to do this better and better. Organisational learning
and knowledge management practices gather, organise and disseminate the knowledge and skills of
members, who are located throughout the organisation and, sometimes, around the world.
Question 2
Single-Loop Learning
Definition: Single-loop learning occurs when individuals, groups, or organizations modify their
actions or strategies in response to an error or problem, but without altering the underlying
governing values or assumptions. It’s about correcting mistakes within a given set of rules.
Process: In single-loop learning, the organization detects a problem, makes an adjustment (like
tweaking a process or changing a strategy), and continues operating as before. It’s a reactive
approach that doesn’t question or challenge the broader framework or goals.
Example: If a company experiences a decline in sales, it might respond by increasing its marketing
efforts. This is a single-loop response, as it focuses on adjusting the strategy without questioning the
underlying assumptions about the product, market, or customer needs.
Double-Loop Learning
Definition: Double-loop learning goes deeper by questioning and potentially altering the underlying
assumptions, values, or policies that led to the problem. It involves reflecting on the governing
norms and frameworks and may lead to significant changes in how an organization operates.
Process: In double-loop learning, when a problem is identified, the organization not only adjusts its
actions but also critically examines and possibly changes the underlying beliefs or values. This is a
more reflective and transformative process.
Example: In the same scenario of declining sales, a double loop learning approach would involve not
just increasing marketing but also questioning whether the product meets market needs, whether
the company’s strategic goals are aligned with customer demands, or whether the organizational
culture supports innovation.
Question 3
Organizational Learning
Definition: Organizational learning is the process by which an organization improves its ability to
achieve its goals by developing new knowledge, skills, and capabilities over time. It involves the
collective learning of individuals within the organization and the integration of this learning into
organizational practices, culture, and processes.
Focus: The focus is on the continuous improvement and adaptation of the organization based on the
experiences and knowledge gained by its members. Organizational learning is often about change,
innovation, and the capacity of an organization to evolve in response to internal and external
factors.
Key Elements:
Learning from Experience: Organizations learn by reflecting on past successes and failures.
Adaptation: Organizations adapt their strategies, structures, and processes based on what they have
learned.
Knowledge Creation: New insights, ideas, and innovations emerge as a result of learning.
Cultural Change: The organization's culture evolves to support continuous learning and
improvement.
Example: A tech company reflects on the failure of a product launch, analysing what went wrong and
learning from the mistakes. They then implement new processes and strategies to ensure future
products are better aligned with market needs and customer expectations.
Knowledge Management
Focus: The focus is on the practical management of knowledge as a resource. KM is concerned with
storing, sharing, and applying knowledge to enhance organizational performance.
Key Elements:
Knowledge Capture: Identifying and documenting valuable knowledge within the organization.
Knowledge Sharing: Ensuring that knowledge is distributed and accessible to those who need it.
Knowledge Utilization: Applying knowledge to improve processes, products, services, and decision-
making.
Knowledge Retention: Preserving critical knowledge, especially in the face of employee turnover.
Example: A consulting firm creates a database where consultants can document best practices, case
studies, and client insights. This database allows employees across the firm to access valuable
information, improving the quality and efficiency of their work.
Question 4
The "built to change" (B2C) concept suggests organizations are designed to function reliably,
preventing change initiatives from failing. Lawler and Worley argue that the best long-term
competitive advantage is the capacity for continuous change. B2C designs aim to identify and
manage the best talent for change, using selection procedures to identify proactive,
professional, and change-loving individuals. Incentives are crucial for promoting and
sustaining change, linked to changing objectives and skill acquisition.B2C designs emphasize
lean, adaptable structures with decision-making authority for familiar workers. Organic
designs like process, matrix, and network keep the organization in constant contact with the
environment, enabling recognition of external changes and creative solutions.
Tutorial 7 Questions and Answers: Organisation development interventions: People and process
1. How does the performance management model enable organisations to influence employee
work behaviours and outcomes?
The performance management model consists of three stages: goal setting, performance
appraisal, and reward systems. It aims to define, assess, and reinforce (support) employee
work behaviours, aligning them with business strategy, employee involvement, and
workplace technology, resulting in high performance levels. Goal setting can clarify the
duties and responsibilities that are associated with a particular job or work group.
Performance appraisal is a systematic process of jointly assessing work-related achievements,
with strengths and weaknesses. Reward systems support goal-setting and feedback systems
by rewarding the kinds of behaviours required, implementing a particular work design or
supporting a business strategy
2. In a third-party consultation, what skill must the third party develop in order to be
successful?
Third-party intervention focuses on conflicts arising between two or more people within the
same organisation. Conflict is inherent in groups and organisations and can arise from a
variety of sources, including differences in personality, task orientation and perceptions
among group members, and competition over scarce resources. It is important to emphasize
that conflict is neither good nor bad per se. Conflict can enhance motivation and innovation
and lead to a greater understanding of ideas and views. On the other hand, conflict can
prevent people from working together constructively and destroy necessary task
interactions among group members. Consequently, third-party intervention is used primarily
in situations where conflict significantly disrupts necessary task interactions and work
relationships among members. Third-party consultants must acquire some skills in order to
be successful.
These include:
The knowledge that too much conflict can be dysfunctional to both individuals and an organisation
Sensitivity to the situation and the ability to use different intervention strategies and tactics to help
Professional expertise in third-party intervention
The ability to be perceived as neutral and unbiased on the issues and outcomes of the conflict
resolution
3. What influence do secrecy and communication about remuneration have, either positive or
negative, on motivation in the workplace?
Cricket players' workplaces differ from other industries due to shift from top managers and
compensation professionals designing compensation to employee involvement, promoting
mutual respect and understanding, and addressing pay equity concerns.
Decreased Morale Due to Perceived Inequity: When remuneration details are kept secret, it can
lead to feelings of inequity among employees. If individuals suspect that colleagues with similar roles
are being compensated differently without justification, it may result in resentment and decreased
morale. Employees may feel demotivated if they believe they are not being rewarded fairly for their
contributions.
4. What are the basic implications of the model for conflict resolution?
According to the conflict resolution paradigm, disagreements arise because some people care
about their personal results (distribution), while others care about the results of others
(integration). Additionally, how conflicts are resolved can affect people and organizations in
both positive and negative ways. While disruptive conflicts can result in intensely
unfavourable feelings among organization members, constructive conflicts can bring issues
that have previously been disregarded to the forefront.
Tutorial 8
Question 1
Explain two popular options available for a manager who wants to restructure an
organisation.
The more standard methods of separating the organization's overall activities, including
functional, self-contained unit and matrix structures, as well as more adaptable and
integrative forms, like process- and network-based structures, are examples of interventions
targeted at structural design. Which structure is suitable for organizational contexts,
technologies, and conditions can be ascertained with the aid of diagnostic criteria.
The goal of downsizing is to make an organization smaller in order to cut expenses and
bureaucracy. Layoffs, organizational reorganization, and outsourcing—which involves
assigning tasks outside the organization's core competencies to outside contractors—can all
be used to achieve this staff reduction. The organization's strategy is intimately linked to
successful downsizing.
The organization's fundamental work processes are completely redesigned through re-
engineering to provide closer connections and coordination across the many jobs. Task
performance is improved by this workflow integration, becoming quicker and more
responsive. Often, business process management is carried out using new information
technology that enables workers to better manage and coordinate work processes.
Question 2
ANS:
The engineering approach focuses on efficiency and simplification, resulting in traditional job
and work group designs. It aims to find procedures that produce maximum output with
minimal input, resulting in high-specialization designs. These designs allow rapid task
learning, short work cycles, and reduced costs due to easy hiring and training of lower-skilled
individuals.
Motivational theories guide work design, aiming to enhance the work experience by focusing
on member needs and satisfaction. This approach enhances employee performance by
providing autonomy, responsibility, and feedback, while ensuring high levels of meaning.
Question 3
ANS:
Not everyone react to job enrichment interventions in the same way. Reactions to job
enrichment interventions can vary (different in size) widely among individuals within an
organization. While many will likely respond positively with increased motivation,
satisfaction, and skill development, others may experience anxiety or resistance due to
changes in workload or expectations. Effective implementation requires careful consideration
of employee needs and ongoing support throughout the transition process.
Question 4
ANS:
Work design approaches like engineering, motivational, and sociotechnical enhance
employee satisfaction and productivity, but their effectiveness depends on the workplace's
combination of technical and personal factors.
Shop floor changes are influenced by technical dimensions like interdependence and
uncertainty, with traditional jobs suitable for low-interaction, self-control jobs.
Work should be tailored to traditional work groups, individual jobs, and self-managed teams,
meeting social and growth needs. Traditional jobs are most effective for employees with low
social and growth needs.
Traditional work groups cater to employees with high social needs but low growth, while
enriched jobs offer variety, discretion, and feedback, and self-managed teams offer
significant social interaction.
A company must balance technical and human needs in work-design success. Aligning
technology and people is preferable to compromise designs, especially when heavy change
constraints are imagined rather than actual.
Tutorial 9
1. What constitutes (form) the organisation’s general environment? How would this impact
on decisions made by a change agent?
The general environment consists of all external forces that can influence an organisation or
department, and includes technological, legal and regulatory, political, economic, social and
environmental factors. Each of these forces can affect the organisation in both direct and
indirect ways. For example, the early 1980s recession that followed a disruption in the global
oil supply in 1979. Economic recessions can directly affect the demand for a company’s
product. The general environment can also indirectly affect organisations by virtue of the
links between external forces. For example, an organisation may have trouble obtaining raw
materials from a supplier because a consumer group has embroiled (argument, conflict) the
supplier in a labour dispute with a national union, a lawsuit with a government regulator or a
boycott (withdraw from commercial or social relations with (a country, organization, or person)
as a punishment or protest). These parts of the organisation’s general environment can affect
the organisation, even though they have no direct connection to it.
2. Through what strategies do organisations gain ‘control’ over their environments? What
implications does this have for how change is managed?
Organisations analyze customer needs through focus groups and surveys, understand
competitor strategies through press releases and sales force behaviours, monitor the
environment through scanning units, and make proactive responses to influence external
forces in favourable directions, with a wide range of options. Collective structures help
organizations cope with environmental dependence and uncertainty by increasing
coordination and performing tasks that are too costly and complicated for a single
organization to perform alone.
3. From your work experience, or from companies you have read about, describe an example
of each of the approaches to work design discussing why you think that approach was chosen.
2 motivational theories and attempts to enrich the work experience. Job enrichment
involves designing jobs with high levels of meaning, discretion and knowledge of results.
This approach, based on Herzberg’s motivational factors provides autonomy, responsibility
and closure from completing a job. Together, these aspects provide feedback on performance.
Lack of employee involvement in the process has cast doubt on the usefulness of Herzberg’s
original theory. The research of Hackman and Oldham represents this more recent trend in
job enrichment.
3 sociotechnical systems methods. This more recent perspective seeks to optimise both the
social and the technical aspects of work systems. It has led to the development of a popular
form of work design called ‘self-managed teams. This approach, which recognises that work,
in organisations, is a system with both social and technical aspects open to and interacting
with the environment, is based on action research in both public and private organisations in a
wide range of cultural settings.
4. Outline the four types of basic process intervention. When are they used?
T-groups derived from the early laboratory training stem of OD. They are used mainly today
to help managers learn about the effects of their behaviour on others.
Team building is aimed both at helping a team to perform its tasks better and at satisfying
individual needs.
Tutorial 10
1. What are the external and internal disruptions that can affect an organisation?
Provide current examples of each and explain your selections.
Internal disruptions, such as the appointment of a new CEO or board, can be triggered by
management style, market changes, government regulation, privatisation, technology
introduction, industry life cycle changes, and high executive turnover.
2. Define organisational culture. What are the major elements at different levels of
awareness?
Organisational culture is the shared assumptions, values, and norms within an organisation,
which can impact strategy formulation, implementation, and performance. Culture change
involves diagnosing and altering these assumptions and values. Corporate culture
encompasses aspects like vision, mission statement, values, policies, and internal politics.
Organisational culture includes four major elements existing at different levels of awareness:
• Artefacts refer to the observable behaviours and physical elements such as
structures, systems, policies and procedures.
• Norms dictate the generally accepted mode of behaviour in varying situations.
• Values define what is important and what should be prioritised
Basic assumptions are shared way in which people in the organisation
perceive, think and feel about aspects of their external environment.
Deep assumptions highlight the most fundamental aspects of organizational culture, the
suggested and widely held beliefs that influence member behavior and frequently have a
significant influence on the efficacy of the organization. Students' own experiences, such as
their time in secondary school, might serve as examples.
Question 1
Identify three significant political and economic changes in the past five years that would
require businesses to adjust their practices to consider the changes.
Foreign economies are developing quickly, including the reorganization of socialist and
communist economies and strong expansion in developing nations such as those in South
Asia, East Asia, and the Pacific. As the Middle East, China, Russia, and South Africa
undergo political disruption, the European Union is fostering integration through fiscal
policies, luring new nations, and streamlining economic norms.
Foreign governments and organizations have found it easier to grow and flourish as a result
of the increasing worldwide availability of technical and financial resources, especially
through the internet and e-commerce. Increased access to finance and technology, especially
in the field of information technology, which has made the globe smaller and more
interconnected, was a major factor in the growth of Chilean businesses in the 1980s.
The global economy's emergence, China's instability, global terrorism, and global warming's
impact highlight the interconnectedness of global markets. Foreign organisations are
expanding globally through free trade agreements, removal of regulations and privatisation,
requiring adaptation of structures, information systems, processes, and human resources
practices across various countries.
Question 2
Explain the three key facets in worldwide strategic orientation. Give examples that are not in
the book.
The style of arrangement of products/services, organisation and personnel enables businesses
to compete in the global marketplace.
2 Global corporations must strike a balance between geographical concerns of time, distance,
and culture and product and functional considerations. For instance, Chinese New Year,
which occurs just as Australian businesses are starting up again after their Christmas and
New Year's holidays, has a 27-day impact that Australian companies who manufacture in
China need to take into account. Inadequate management of manufacturing schedules might
result in time losses exceeding six weeks.
3 International businesses use a diverse range of workers, including local staff, short-term
and long-term business travelers, and expatriates, to function across cultural barriers.
Employees from diverse cultural origins need to be managed in a way that promotes the
organization's overall objectives and image. In order to achieve operational goals and suit the
culture, human resource management must be modified. With almost 3 million people
departing the Philippines annually for medium-term jobs abroad, the country is a significant
exporter of human resources. This necessitates advanced inbound and outbound health
screening.
Question 3
What are the characteristics of the global design? How do these differ from the characteristics
of the multinational orientation and transnational design?
The concept of global design is centered on standardized products with the aim of achieving
efficiency through volume. It is a centralized organization with a global product division and
activities that are balanced and coordinated. Human resource functions and formal
information systems will be ethnocentric, meaning that the policies are based on the cultural
viewpoint of the host country. OD interventions include conflict resolution, team building for
senior management, career planning, role clarity, and employee involvement.
Question 4
Describe what is meant by ‘worldwide organisational development’ and offer some best-
practice examples.
1 offering products or services in more than one country and actively managing substantial
direct investments in those countries.
2 balancing product and functional concerns with geographic issues of distance, time and
culture
The airline, automobile and oil refining industries are timely examples in Australia.
Discussion of the issues that Qantas, Ford, Toyota, deal with on a daily basis, as a
consequence of being worldwide organisations undergoing (often transformational)
development, are regularly in the news.
Tutorial 12
Question 1
Competitive strategies are the choices that organisations make to improve their competitive
situation, including integrated strategic change and mergers and acquisitions (see
Competitive Strategies. Collaborative strategies help organisations to deal with
environmental dependence and uncertainty as well as included alliances and networks.
Examples may include bargaining, contracting, co-opting and creating joint ventures,
federations, strategic alliances and consortia (see Collaborative Strategies).
Question 2
Select two of the competitive strategies. After explaining the characteristics of each, compare
them.
Question 3
Why would an organisation choose to merge rather than acquire another company?
A merger refers to two independent organisations integrating and becoming one new
organisation. An acquisition refers to one organisation purchasing another where the latter
becomes subsumed within the former. A merger is likely to occur where the two
organisations become equal partners in the new entity. An acquisition is likely to occur where
the purchased organisation is markedly smaller than the buying entity. (However, ‘reverse
takeovers’, where the buyer is smaller than the organisation being purchased, are known.)
Question 4
What are the advantages and disadvantages of alliances? Give examples where appropriate.
Sharing Resources and Expertise: Strategic alliances allow companies to combine their
strengths, leading to a deeper understanding of products, enhanced sales strategies, or
improved marketing knowledge. For example, a technology firm might partner with a
marketing agency to leverage each other’s expertise for better product launches.
Speed and Agility: In a fast-paced business environment, strategic alliances enable partners
to respond quickly to market changes and customer needs by pooling resources and expertise.
Increased Liability: Both organizations share the risks associated with the alliance’s
outcomes. If one partner fails to deliver on its commitments or if issues arise (like production
delays), both companies may suffer reputational damage and financial losses.
Complexity in Management: Managing an alliance requires effective communication and
coordination between different organizational cultures and structures, which can be
challenging.
Dependency Risks: Over-reliance on a partner for critical resources or capabilities can create
vulnerabilities if one party encounters difficulties.
Question 5
Competitive strategies are strategies to increase performance and gain comparative advantage
through alignment with the environment. They include integrated strategic change, mergers
and acquisitions. Integrated strategic change is a comprehensive OT intervention aimed at a
single organisation or business unit. Mergers and acquisitions seek to leverage the strengths
(or shore up the weaknesses) of one organisation by combining with another organisation.
The theories are based on the premises that organisations have access to unique resources and
add value in a variety of ways that are difficult to imitate.