Organizational Behavior diagnosing what needs to be changed and patching Tomáš Ondráček ondracek.t@mail.muni.cz Faculty of Economics and Administration, Masaryk University 2021 Models Models ·ORBE ·2021 2 / 28 Models characterization (key) elements (causal) relationships outputs (Hayes, 2014: 124–125) ·ORBE ·2021 3 / 28 Models use description interpretation guidence decision making (Hayes, 2014: 125) ·ORBE ·2021 4 / 28 Models component and holistic models part, element, person the whole, complex (Hayes, 2014: 125) ·ORBE ·2021 5 / 28 Models good models relevance recognition usefulness (Hayes, 2014: 142) ·ORBE ·2021 6 / 28 Open Systems Theories Open Systems Theories ·ORBE ·2021 7 / 28 Open Systems Theories characterization embedded within a larger system able to avoid entropy regulated by feedback subject to equifinality cyclical in their mode of functioning equilibrium seeking bounded (Hayes, 2014: 132) ·ORBE ·2021 8 / 28 Kotter’s Integrative Model of Organizational Dynamics Kotter’s Integrative Model of Organizational Dynamics ·ORBE ·2021 9 / 28 Kotter’s Integrative Model of Organizational Dynamics Kotter’s integrative model of organizational dynamics ((Hayes, 2014: 133) adapted from (Kotter, 1980: 282)) ·ORBE ·2021 10 / 28 Kotter’s Integrative Model of Organizational Dynamics Kotter’s integrative model of organizational dynamics short term imediate medium term months long term years ((Hayes, 2014: 133) adapted from (Kotter, 1980: 282)) ·ORBE ·2021 11 / 28 The McKinsey 7S Model The McKinsey 7S Model ·ORBE ·2021 12 / 28 The McKinsey 7S Model The McKinsey 7S model (Waterman Jr, Peters, & Phillips, 1980: 18) ·ORBE ·2021 13 / 28 Weisbord’s Six-Box Model Weisbord’s Six-Box Model ·ORBE ·2021 14 / 28 Weisbord’s Six-Box Model Weisbord’s six-box model (Weisbord, 1976: 432) ·ORBE ·2021 15 / 28 The Burke-Litwin causal model The Burke-Litwin causal model ·ORBE ·2021 16 / 28 The Burke-Litwin causal model The Burke-Litwin causal model of organizational performance and change (Burke & Litwin, 1992: 528) ·ORBE ·2021 17 / 28 Selecting a diagnostic model Selecting a diagnostic model ·ORBE ·2021 18 / 28 Selecting a diagnostic model component and holistic models ??? (Hayes, 2014: 133) ·ORBE ·2021 19 / 28 patching patching ·ORBE ·2021 20 / 28 patching patching patching Patching is the strategic process by which corporate executives routinely remap businesses to changing market opportunities. It can take the form of adding, splitting, transferring, exiting, or combining chunks of businesses. (Eisenhardt & Brown, 1999) ·ORBE ·2021 21 / 28 patching patching and reorganizing structure stable vs. temporary strategy first vs. emerging (Eisenhardt & Brown, 1999) ·ORBE ·2021 22 / 28 patching patching: further characteristics changes small frequent size agil efficient infrastructure modular fine grained metrics and complete consistent compensation quick (Eisenhardt & Brown, 1999) ·ORBE ·2021 23 / 28 patching patching: further characteristics reorganization and patching reorganization patching role of change defensive reaction proactive weapon scale of change sweeping small, some moderate, a few large frequency rare ongoing formalization every change is unique change process is routine and follows standards patching moves driver of change get business focus right get business focus and size right precision optimal restructuring at specific point in time roughly right realingments over time metrics collect fine-grained metrics only for infrequent reorganizations reguĺarly trasck extensive, fine-grained metrics on modular business compensation not relevant companywide parity (Eisenhardt & Brown, 1999) ·ORBE ·2021 24 / 28 patching patching: examples Hewlett-Packard small frequent 3M agil efficient Johnson & Johnson modular fine grained metrics and complete consistent compensation quick (Eisenhardt & Brown, 1999) ·ORBE ·2021 25 / 28 patching patching: principles Do it fast. Develop multiple options, then make a roughly right choice. Take an organizational test-drive. Get the general manager right. Script the details. (Eisenhardt & Brown, 1999) ·ORBE ·2021 26 / 28 patching patching: blocks "missing the hill" "Snow White and the Seven Dwarfs" (Eisenhardt & Brown, 1999) ·ORBE ·2021 27 / 28 Sources Burke, W. W., & Litwin, G. H. (1992). A causal model of organizational performance and change. Journal of management, 18(3). doi: 10.1177/014920639201800306 Eisenhardt, K. M., & Brown, S. L. (1999). Patching. Restitching business portfolios in dynamic markets. Harvard business review, 77(3). Hayes, J. (2014). The theory and practice of change management. Palgrave MacMillan. Kotter, J. P. (1980). An integrative model of organizational dynamics. In E. e. Lawler, D. A Nadler and C. Cammann (eds) Organizational Assessment. New York: Wiley. Waterman Jr, R. H., Peters, T. J., & Phillips, J. R. (1980). Structure is not organization. Business horizons, 23(3). doi: 10.1016/b978-0-12-054752-4.50024-5 Weisbord, M. R. (1976). Organizational diagnosis: Six places to look for trouble with or without a theory. Group & Organization Studies, 1(4). doi: 10.1177/105960117600100405