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
???
·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
(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