SYSTEMS AND CONTINGENCY APPROACH TO ORG THEORY & PRACTICE AND TECHNIQUES OF ORGANISATIONAL DIAGNOSIS

1. SYSTEMS AND CONTINGENCY APPROACH TO ORG THEORY & PRACTICE AND TECHNIQUES OF ORGANISATIONAL DIAGNOSIS Facilitator and Course Coordinator: Vinayshil Gautam PhD, FRAS(London) (Founder Director IIM K; Leader Consulting Team IIM S) A Al_Sager Chair Professor and First Head, Management Department, IIT D Chairman, DKIF

2. Theories and their importance • A theory is a set of assumptions or principles that have been repeatedly tested to explain or predict facts or phenomena • Theories: • Provide a conceptual framework • Provide a common vocabulary • Guides action • Assists comprehension or judgment • Challenge practice wisdom

3. Systems Theory • Ludwig Von Bertalanffy, has long been regarded as the Founder of Systems Theory • He argued that all systems, whether organic or organisational, shared similar characteristics & could be analysed in similar terms

4. Systems Theory Views the organization as a system of interrelated parts that function in a holistic way to achieve a common purpose. McGraw-Hill

5. Systems concept: Environment • Organisations are ‘open’ to their environments

6. Systems Concepts:Adaptation • To survive the organisations must adapt to its environment • All non-random functioning systems have: Inputs  Processes  Output   Feedback loop with criteria • An organisation that does not produce what is reqd by its environment must either change or disappear

7. Systems Concepts:Boundaries • Boundaries are the interface between a system and its subsystems or a system and its environment. • By examining the boundaries of a system, we can often isolate the friction and its causes.

8. Systems Concepts:Goal Seeking • Organisations & Organisational subsystems tend to be goal seeking, that is, they move in the direction of goal achievement. • The primary goal of a system is survival.

9. Systems Concepts:Cybernetics • For a system to work properly, it must have feedback andcontrol mechanisms • Feedback and control mechanisms • Accept information about system outputs • Evaluate information using goal related criteria • Use evaluative information as additional i/p

10. Systems Concepts:Differentiation • Organisations are complex systems • Different subsystems become specialised through catering for different aspects of organisation • Various depts of any business org e.g., prodn, marketing, finance etc, are all geared to a very different environment

11. Systems Concepts: Synergy • Systems working well experience synergy where the total system output are greater than the sum of all inputs. • For synergy to occur, subsystems must not optimize, but cooperate for the good of the overall system, e.g., Teamwork. • Synergy is also called nonsummativity

12. Contingency Theory Or It all depends on the situation

13. Contingency Theory • States that there is no “one best way” to manage an organization. • Because what works for one organization may not work for another • Situational characteristics (contingencies) differ • Managers need to understand the key contingencies that determine the most effective mgt practices in a given situation

14. Technology • Lots of research since 1950 has taken place to identify the effects of technology upon organisations • Research by Woodward & Tavistock Institute indicated that Technology influenced :

15. Degree of Job dissatisfaction • Behaviour of Work groups • Pattern of Industrial relations • Structure of Organisations

16. Technology & Degree Of Job Dissatisfaction • Different technologies have different effect upon nature of work & degree of job dissatisfaction • Blauner distinguished between four different technologies :

17. Craft technology (printing) • Machine-minding technology (textile) • Mass prodn technology • Process technology (chemical)

18. Levels of Alienation suffered by people due to different technologies

19. Technology & Behaviour Of Work Groups • Sayles suggested that technology determines not only the formation of work groups but also their behaviour • Factors determining the formation of work groups : • - Worker skill level reqd by technology • Degree of interactions between workers permitted by technology

21. Technology & Industrial Relations

22. Technology & Organisational Structure • J Woodward carried out one of the most influential studies to ‘discover whether principles of organisations laid down by an expanding body of Mgt theory correlates with business success when put into practice’

23. Methodology: • About hundred firms were taken as a sample • They were divided into 3 general categories based on their method of production : • - Simple units & small batch prodn methods • - Large batch & mass prodn methods • - Complex process prodn methods • All these firms were placed along what she called continuum of technological complexity

24. Main Findings : • Firms with similar methods of prodn were organised in a similar way • Firms at either end of continuum had similar characteristics • There was a relationship between technology, organisational structure & economic success • There was a relationship between technology and the pattern of industrial relations

26. Socio-Technical Systems • Socio-technical theory evolved from the field work of researchers from Tavistock Institute of Human Relations • Principle finding was that there are social implications for every implementation of change • Measures suggested : • - Set up a structure for intergroup communications to solve any problems groups might experience

27. - Develop company code to govern relations between people at different levels • Counseling of workers in groups to express feelings constructively • In Tavistock view, a healthy organisation is one which is capable of tackling in a realistic manner whatever technical, economic, or social problems it might encounter

28. SOCIOTECHNICALSYSTEMS • THEORY EVOLVED FROM THE FDWORK OF • RESEARCHERS OF TAVISTOCK INSTITUTE OF • HUMAN RELATIONS • DEVELOPING OF METHODS FOR SYSTEMATIC • OBSERVATION OF HUMAN BEHAVIOUR IN • ORGANISATIONS SO AS TO SOLVE SOCIAL • PROBLEMS.

29. PROBLEM ? • SERVICE DEPARTMENT - PIECEWISE PAY VIS A VIS • FIXED PAY. • NO CONCERN FOR THE WORKERS INTEREST. • MANAGERS AND WORKERS SHOWED LACK OFTRUST • FOR EACH OTHER. • RESEARCHERS SUGESSTIONS • MGMT WORKER INTERRELATIONSHIP. • MORALE BUILDING.

30. TAVISTOCK RESEARCH • THE BASIC PRINCIPLE WAS – THERE ARE SOCIAL • IMPLICATIONS FOREVERY IMPLEMENTATION OF CHANGE. • SETUP STRUCTURE FOR INTERGROUP COMMUNICATION TO • DEAL WITH THE PROBLEMS • DEVELOPMENT OF A COMPANY CODE GOVERNING THE • RELATION BETWEEN PEOPLE AT DIFFERENT LEVELS. • MANAGERS SHOULD BE MORE RESPONSIVE TO • ORGANISATIONAL PROBLEMS. • BASIC PROBLEM IS MAINTAINING A STRUCTURE AND CULTURE • TO COPE WITH CHALLENGES OF A CHANGING SOCIETY. • HEALTHY ORGANISATION - ONE WHICH IS CAPABLE OF • TACKLING THE PROBLEMS IN A REALISTIC MANNER.

31. SOCIOTECNICAL SYSTEMS THEORY • ORGANISATIONS ARE OPEN SYSTEMS. • DEPEND ON THE ENVIRONMENT FOR RAW MATERIALS • AS INPUTS AND FOR MARKETS TO ABSORB THEIR • OUTPUTS OR PRODUCTS. • CONSIST OF SEVERAL SUBSYSTEMSTO DEFINE THE • INTERNAL PROCESSES.

32. ORGANISATIONAL SYSTEM ENVIRONMENTAL SYSTEM • GOALS &VALUES SUBSYSTEM • CULTURE • PHILOSPHY • OVERALL GOALS • INDIVIDUAL GOALS • TECHNICAL SUBSYSTEM • TASK REQUIREMENT • KNOWLEDGE • TECHNIQUES • LAYOUT OF FACILITIES • MACHY EQUIPMENT • INFORMATION • MANAGERIAL SUBSYSTEM • GOAL SETTING • PLANNING • ASSEMBLING • RESOURCE • ORGANISING • IMPLEMENTATION . • PSYCHOSOCIAL SUBSYSTEM • HR • ATTITUDES • MOTIVATION • GP DYNAMICS • LEADERSHIP • INFLUENCE SYSTEMS • STRUCTURAL SUBSYSTEM • TASKS • WORK FLOWS • WORK GROUPS • AUTHORITY • INFORMATION FLOWS • PROCEDURES & RULES

33. TECHNICALSUBSYSTEM • ORGANISATION REQUIRES STRUCTURING AND • INTEGRATING HUMAN ACTIVITIES AROUND • VARIOUS TECHNOLOGIES. • EVERY MODERN ORGANISATION IS INFUENCED BY • THE RAPID ACCELERATION OF TECHNOLOGY IN • OUR SOCIETY.

34. AFFECTS THE TYPES OF INPUTS AND THE OUTPUTS • FROM THE SUBSYSTEM AND THUS THE TASK • ACCOMPLISHMENT. • WAYS IN WHICH THE ORGANISATION ADAPTS TO • THE CHANGING TECHNOLOGY HAS A SIGNIFICANT • IMPACT ON THE OTHER ORG SUBSYSTEMS.

35. TECHNICALSUBSYSTEM • DEFINITION • MECHANISTIC VIEW - THE MECHANICAL MEANS FOR PRODUCTION OF GOODS AND SERVICES AND REPLACEMENT OF HUMAN EFFORT.

36. TECHNOLOGY IS FAR MORE THAN THE MACHINE • AND REFERS TO STANDARISED MEANS FOR • ATTAINING A PREDETERMINED OBJECTIVE OR • RESULT. THUS CONVERTS SPONTANEOUS AND • UNREFLECTIVE BEHAVIOUR INTO BEHAVIOUR THAT • IS DELIBERATE AND RATIONALISED AND RESULTS • IN ABSOLUTE EFFICIENCY IN EVERY FIELD OF • HUMAN ACTIVITY. • ----JACQUES ELLUL.

37. DETERMINED BY THE • - TASK REQUIREMENTS OF AN ORG. • - KNOWLEDGE AND SKILLS • - MACHINERY AND EQPT INVOLVED. • - TECHNIQUES. • - LAYOUT OF FACILITIES. • - INFORMATION

38. TECHNICALSUBSYSTEM • ACCELERATING TECHNOLOGY • SCIENCE AND TECHNOLOGY PERVASIVE FORCES IN MODERN • SOCIETY. • IMPACTED THE SOCIAL STRUCTURE AND CULTURE. • AUTOMATION - REPLACED HUMAN DECISION MAKING IN THE • CONTROL PHASE. • EFFECTIVE UTILISATION OF TECHNOLOGIES REQUIRE THE • DEVELOPMENT OF COMPLEX ORGANISATIONS.

39. DANGERS OF TECHNOLOGY • WILL DRIVE OUT HUMANISTIC AND SOCIAL • CONSIDERATIONS. • TOTAL INTEGRATION OF MAN INTO THE TECHNICAL • SYSTEM(SOCIOCULTURAL STRUCTURE). • CHANGES IN VAUES AND GOALS. • CHALLENGE TO PROFIT FROM ITS OPPORTUNITIES • ANDCONTAINING ITS DANGERS. • INTERACTION BETWEEN THE TECH AND • PSYCHOSOCIAL SYSTEM IS A DETERMINANT OF • THE RELATIONSHIP BETWEEN TECHNOLOGY AND • SOCIETY.

40. TECHNICALSUBSYSTEM • CLASSIFICATION OF TECHNICAL SYSTEMS • BASIS OF PRIMARY FN - SCHOOLS , HOSPITALS,UNIONS, ETC. • TECHNICAL SYSTEM BASIS. • INDUSTRIAL ORGANISATIONS – SMALL BATCH MASS • PRODUCTION AND CONTINUOUS PROCESS.

41. CLASSIFICATION BY THOMPSON • LONG LINKED TECHNOLOGY – INVOLVES SERIAL • INTERDEPENDENCE BETWEEN VARIOUS • PRODUCTION UNITS ,eg FULLY AUTOMATED ASSY • LINE. • MEDIATING TECHNOLOGY - INVOLVES JOINING OF • CLIENTS &CUSTOMERS ,OTHERWISE • INDEPENDENT,eg BANKS, POST OFFICES. • INTENSIVE TECHNOLOGY – DEAL WITH SPECIFIC • PROBLEMS,eg R&D, HOSPITALS. • THE TWO PRIMARY DIMENSIONS HERE ARE – • COMPLEXITY AND DEGREE OF UNIFORMITY OR • NONUNIFORMITY.

42. TECHNICALSUBSYSTEM • PROBLEMS • ADAPTING TO ONE TECHNOLOGICAL COMPONENT. • INTEGRATING AND COORD A NO OF DIFFERENT • TECHNOLOGIES WITHIN THE ORG SYSTEM.

43. TECHNICALSUBSYSTEM • IMPACT OF TECHNICAL SYSTEM • TRADITIONALLY , TECHNOLOGICAL COMPONENT WAS • CONSIDERED AS A CLOSED SYSTEM – DID NOT HAVE • ANY DYNAMIC INTERACTION WITH OTHER SYSTEMS . • LEAD TO UNREALISTIC AND IDEALISTIC • GENERALISATIONS.. • ACTUALLY TECHNOLOGY AND OTHER SYSTEMS ARE • INDEPENDENTLY RELATED.

44. THREE BASIC WAYS IN WHICH TECHNOLOGY INFLUENCES • BEHAVIOUR THROUGH ITS EFFECT ON OTHER INPUTS. • - HUMAN INPUTS REQUIRED BY AN ORG. • - GROSS FEATURES OF ORG STRUCTURE AND • PROCEDURES. • - DETERMINANT OF INDIVIDUAL AND GROUP JOB • DESIGNS/SOCIAL STRUCTURE AND NORMS.

45. TECHNICALSUBSYSTEM • CLASSIFICATION OF TECHNICAL SYSTEMS • BASIS OF PRIMARY FN - SCHOOLS , • OSPITALS,UNIONS, ETC. • TECHNICAL SYSTEM BASIS. • INDUSTRIAL ORGANISATIONS – SMALL BATCH, • MASS.PRODUCTION AND CONTINUOUS PROCESS

46. CLASSIFICATION BY THOMPSON • LONG LINKED TECHNOLOGY – INVOLVES SERIAL • INTERDEPENDENCE BETWEEN VARIOUS PRODUCTION • UNITS ,eg FULLY AUTOMATED ASSY LINE. • MEDIATING TECHNOLOGY - INVOLVES JOINING OF • CLIENTS &CUSTOMERS ,OTHERWISE INDEPENDENT,eg • BANKS, POST OFFICES. • INTENSIVE TECHNOLOGY – DEAL WITH SPECIFIC • PROBLEMS,eg R&D, HOSPITALS. • THE TWO PRIMARY DIMENSIONS HERE ARE – • COMPLEXITY AND DEGREE OF UNIFORMITY OR • NONUNIFORMITY.

47. TECHNICALSUBSYSTEM • IMPACT UPON STRUCTURE • RESEARCH BY JOAN WOODWARD. • DIRECT CORRELATION BETWEEN TECHNOLOGY • AND ORG STRUCTURE . • ORG CHARACTERISTICS WHICH SHOW A DIRECT • RELATIONSHIP WITH TECH ADVANCE ARE :-

48. - LENGTH OF LINE OF COMMAND • – INCREASES IN VERTICAL LEVELS. • - SPAN OF CONTROL - INCREASED FROM 4 –10, BY • MANAGEMENT AND COMMITTEE. • - SALARIES AND WAGES. • - MANAGER /PERS RATIO INCREASED. • - STAFF-WORKER RATIO LARGER. • - SUPERVISION LEVEL HIGHER. • SYSTEM OF PRODUCTION LEAD TO DIFFERENT • STRUCTURE. • OPERATIONS TECHNIQUES HAD LIMITED IMPACT ON • THE COORDINATIVE SYSTEM. • STRATEGIC LEVEL – ENVIRONMENTAL INFLUENCES ON • THE BROAD ADMINISTRATIVE STRUCTURE

49. TECHNICALSUBSYSTEM • IMPACT ON PSYCHOSOCIAL SYSTEM • TRADITIONALLY , ASSUMPTION WAS ADAPTATION, • BUT IT AFFECTS THE • - NETWORK OF SOCIAL RELATIONS AMONG • WORKERS. • - SIZE AND COMPOSITION OF WORKGROUPS IN • RANGE, CHARACTER, FREQUENCY OF CONTACT • WITH FELLOW WORKERS AND SUPERVISORS. • .

50. - LEAD TO JOB INSECURITIES. - STATUS POSITION OF THE WORKER . - PHYSICAL AND SOCIAL MOBILITY. - OUTMODED JOBS. - SELF IMAGE AND MOTIVATION