Showing posts with label organizations. Show all posts
Showing posts with label organizations. Show all posts

Friday, May 22, 2020

HIERARCHIES, CLANS AND THEORY Z

Ouchi, W. G., Price, R. L. (1978), Hierarchies, Clans, Theory Z : A new perspective on organizational development, Organizational Dynamics, AMACOM, 25-43

The research paper starts with the introduction of bureaucratic hierarchies which is defined as the use of legitimate authority in which employees grant their superiors the rights to tell them what to do which is not as indispensable to industrialized settings as is commonly assumed. Secondly, organizational development (OD) has been discussed. In fact, the industrialized organizations share many of the properties of the organizations described by Elton Mayo, Chris Argyris, Douglas Mc-Gregor and Rensis Likert, the founding fathers of humanistic organizational development.

The OD programs rely on small group techniques especially T-training and team building. OD is people and a process oriented approach and is not reliable as per Porres and Berg. The theories by the four authors mentioned are as follows. Elton Mayo: The Social Problems of an Industrial Civilization (1945) which included Hawthorne studies at western electric company. He stated that in simple communities, there is a stability of the social order that has ceased to characterize highly developed industrial centers. Chris Argyris: Integrating the individual and the organization (1957, 1964) which focuses on the psychology of the individual. He stated that psychological success and effectiveness is not possible in a pyramidal structure. Douglas Mc Gregor: Human side of the enterprise. He suggested three basic means, which include the development of; a) A climate or philosophy that leads to the humanistic utilization of a hierarchy, b) Interpersonal skills through the use of T-groups, c) The improved effectiveness of small working groups (the inevitable basic links between interdependent individuals in organizations). Rensis Likert: The human organization. Likert maintained it is the consistency with which the parts mesh together that is more important the character of any of the specific techniques of management or organization. He promoted common culture and matrix organisation. He also suggested that highly productive organizations are tightly knit social systems.

A lack of clarity in the relationships among industrialization, hierarchy, alienation, and small group formation when all these four theories are considered. After these theories are covered, the social organization mechanisms are considered which includes markets, bureaucratic hierarchies and clans. Bureaucratic hierarchies are said to overshadow the markets and the clans. Types of organizations have been discussed including Type Z (Long-term employment, Slow evaluation and promotion, Moderately specialized careers, Consensual decision making, Individual responsibility, Implicit, informal, Holistic concern) and Type A organization (Short-term employment, Rapid evaluation and promotion, Highly specialized careers, Individual decision making, Individual responsibility, Explicit, formal control, Segmented concern). Striking example of Japan has been taken to make the understanding of Type Z organization. 

Lastly, the solution to the industrialised settings is given in the form of organizational philosophy (OP) which is defined as primarily a mechanism for integrating an individual into an organization and linking individual goals to the organizational goals which can ultimately help in decision making of the companies. The companies do not use it because of little incentive or benefit to itself. People do not have the luxury to start a company themselves. OP should be formed at the top organisational unit which is autonomous. OP has to be practiced when it is in the context of long term goals whilst taking care of the short run changing conditions and when it can be practically implemented.


Submitted by: Srijana Singh, OBD group

RE-ENERGIZING THE MATURE ORGANIZATION

Beatty, R.W. and Ulrich, D.O. (1991). Re-energizing the Mature Organization. Organizational Dynamics, Vol.20(1). 16-30

Organizations evolve through a life cycle with each evolving phase raising change challenges. The challenge for mature organizations is to renew the mind sets on which it has based its past success to meet the demand of the dynamic environment and recreate its culture consistent with changing customer requirements.
The purpose of this paper is to explore how mature firms can be re-energized; unique challenges of creating change in mature firms; detailed principles that can guide the change; identifying the leadership and work activities required to accomplish change. Here, hourglass analogy has been used to portray the organizational life cycle and challenges associated with each life stage.
The study focuses on the organizations in their maturity stage. These mature organizations face significant renewal change challenge where competitors offer similar products and services at comparable costs. The greatest effort involved is to replace the long established norms of stability and security with new values- speed, simplicity, unparalleled customer-service, self- confident and empowered workforce. These efforts at the renewal stage, still under way, will determine which firms will survive. The organization that fails this renewal change challenge enters the decline stage in which it loses its market share to firms that have renewed.
This study entails four broad principles, which if managers adhere to, the probability of renewal increases. These principles are based upon customer-centred activity, changing capacity, organizational activities- hardware and software, and empowered employees who act as leaders at all levels of the organization. Sooner or later organizations will have to face the renewal change challenge and then managers and leaders will have to help employees accept change in culture; shared vision and values and to enable them to be more customer-centric, cost conscious, adaptable and teamwork-oriented. The organization that overcomes the renewal change challenge moves to the other side of the hourglass where there is the ability to be re-energized.
The study proposes five steps of re-energizing mature organizations based on the proposed four principles. In the re-energised organization, the leader must be an encouraging model to commit energy and accept changed culture. The study advocates that leaders must also learn that sharing power enables employee empowerment, a salient demand of the changing environment where power and authority doesn’t come from position and status but from relationships, trust and expertise.

Submitted by: Angel Lakra, OBD group