Organizational Design Diagnosis and Development Session 18 Technostructural

Organizational Design, Diagnosis, and Development Session 18 Techno-structural Interventions, I Structural design, downsizing & re-engineering

Objectives • To overview techno-structural design interventions • To review basic structural designs • To examine downsizing and reengineering as intervention strategies

Techno-structural Interventions Overview • • • Structural design Downsizing Re-engineering Employee involvement programs Work design

Structural Designs

Process-based Design • • Processes drive structure Work adds value Customers define performance Teams are key – Teams are rewarded for performance – Teams are linked to suppliers & customers – Teams are informed and cross trained

Networked Designs • Vertical disaggregation • Brokers • Coordinating mechanisms

Downsizing Plan • Types of employee termination • The plan and timetable • The termination plan (positions to be eliminated after analysis to determine required jobs and required employees ) • Survivor support plan • Communication plan

The Termination Plan • Management training re: termination interviews • The severance package • Employee assistance (outplacement, retraining, extended benefits) • Termination notice (lead time allowed, • Method of termination (who and where is the termination interview, pink slip) • Communication program (by whom, when)

Survivor Support Plan • Management training addressing survivor concerns, morale • Communication program: to address group & individual concerns • Stress counseling • Employee development plan (training and career planning

Other Components • Restructuring jobs and compensation packages • Employee development programs • Changes in operating

Re-engineering • Examines business and manufacturing processes, end to end. • Goals – Reduce number of steps and defragment work – Group people together who need to be – Reduce cycle times and cost – Innovation – Flexibility

Backwards & Forwards • Summing Up: Today’s session considering structural design, downsizing and re-engineering as interventions. Downsizing must be done in the context of other components to realize effect • Looking ahead: Next time, we explore employee involvement programs