Technostructural Intervention

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Technostructural Intervention
(Technology = Job Design)(Structure =
The design that links the parts of organisation for coordination)

Contingencies that influence structural design
* Environment
* Organisation size
* Worldwide operations
* Technology
* Organisation goals

An organisation’ effectiveness depends on the extent to which organisation structures are responsive to these contingencies.

Functional Structure
* Basic hierarchical structure, and is most widely used organisational structure in the world today * A standard pyramid structure with senior management at the top * Middle and lower managers spread out directly below

* and workers at the bottom
* organisation is usually subdivided into different functional units, such as: 1. engineering
2. research
3. operations
4. human resources
5. finance

Advantages
* Promote specialisation of skills and resources
* People who perform similar work and face similar problems are grouped together * Faciliates communication within departments and allows specialists to share their expertise * Also enhances career development within the specialty

* Reduces duplication of services because it makes best use of the people and resources

Disadvantages
* Tend to promote routine tasks with limited orientation
* Department members focuses on their own tasks, rather than organisation’s tasks * Can lead to conflict across functional departments when each group attempts to maximise its own performance without considering other units’ performances * Coordination and scheduling among departments can be difficult when each emphasises its own perspective Downsizing

* Refers to the interventions that are aimed at reducing the size of the organisation * Clarifies organisation’s strategy
* Assess downsizing options and make relevant choices
* Implement the changes
* Address the needs of saviours and those who leave
* Follow through with growth plans

Advantages
* Can contribute to organisation development by focusing on the organisation’s strategy, addressing the needs of all organisation members * And following through with growth plans
* Cost-saving
* Improved efficiency

Disadvantages
* When downsizing occurs without making fundamental changes to how work is performed * Same tasks are being performed by fewer people
* Expected cost savings may not be realised because lower productivity offsets lower salaries and fewer benefits

Downsizing Tactics

1. Workforce reduction
* Reduces headcount
* Short-term focus
* Fosters transition
E.g. Attrition, retirement/ buyout (early retirement), lay-offs

2. Organisation redesign
* Changes organisation
* Medium-term focus
* Fosters transition and transformation
E.g. Eliminate functions, layers, products, merge units, redesign tasks

3. Systemic
* Changes culture
* Long-term focus
* Fosters transition
E.g. Change responsibilities, foster continuous improvement, downsizing is normal

Reengineering
* Fundamental rethinking and radical redesign of business processes in order to achieve dramatic improvements in performance * Identifies and questions the often taken-for-granted assumptions underlying how organisations perform work * Seeks to transform how organisations traditionally produce and deliver goods and services * It frequently takes advantage of new information technology * Modern information technologies such as teleconferencing, expert systems, shared databases and wireless communication can enable oganisations to reengineer * Invariably involves aspects of work design, where tasks are assigned to jobs/ teams

Characteristics of Reengineering
* Work units change from functional departments to process teams * Jobs change from simple tasks to multidimensional work
* People’s roles change from...
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