EMG 371-2

Managing Change in Organizations

S.F.Fasana
Faculty of Management
Uva Wellassa University

Learning Objectives
Present the emerging horizontal, network, and
virtual designs of organizations
Define organizational culture and its

characteristics
Relate how an organizational culture is created
Describe how an organizational culture is
maintained
Explain some ways of changing organizational
culture
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What is Organizational Design

Organizational design is the process of choosing

and implementing a structural configuration.

The choice of an appropriate organizational design is
contingent upon several factors, including the size of
the firm, its operations and information technology,
its environment, and the strategy it selects for growth
and survival.

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Modern Organizational Designs

Horizontal Organizations
Network Designs
The Virtual Organizations

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Horizontal Organizations
A Horizontal Organization is one of decentralization of
power and or control, at least within specific departments.
Where an emphasis is placed on horizontal collaboration.
Rather than conceiving of leadership as one person always
being firmly in charge, leadership is often shared among
team leaders and members shifting to the person with the
most knowledge or expertise in the matter at hand.
Richard L Daft.

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Guiding Principles for Horizontal

Organization Design
Organization resolves around the process, not the task
The hierarchy is flattened
Teams are used to manage everything

Customers driven performance

Team performance is rewarded
Supplier and customer contact is maximized
All employee need to be fully informed and trained

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Advantages of Horizontal
Organization Design
Make teams
Decrease hierarchy by eliminating non value added

work and giving authority

Emphasize multiple competencies
Measure for end of process performance objectives, as
well as customer satisfaction, employee satisfaction
Build a corporate culture of openness

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Network Designs
Highly flexible, and controlled by market mechanisms
rather than administrative procedures, firms with this
new structure arrayed themselves on an industry value
chain according to there core competencies, obtaining
complementary resources through strategic alliances
and outsourcing.

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Traditional Hierarchical Vs The Net

Work Organization

4-10

Traditional Hierarchical Vs The Net

Work Organization
Dimension/
Characteristics

Traditional Organization

Network Organization

Structure

Hierarchical

Networked

Scope

Internal/ closed

External/ open

Resource focus

Capital

Human/ Information

State

Static, stable

Dynamic, changing

Personal focus

Managers

Professionals

Key drivers

Reward and punishment

Commitment

Direction

Management commands

Self management

Basis of action

Control

Empowerment to act

Individual motivation

Satisfy superiors

Achieve team goals

Learning

Specific skills

Broader competencies

Basis for compensation

Position in hierarchy

Accomplishment, competence

Relationship

Competitive (my turf)

Corporative (our challenge)

Employee
attitude
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Detachment (its job)

Identification

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The Virtual Organization

"a group of people who interact through
interdependent tasks guided by common purpose"
that "works across space, time, and organizational
boundaries with links strengthened by webs of
communication technologies"

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Key Attributes of virtual

Organization
Technology
Opportunism
No boarders

Trust
Excellence

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What is Organizational Culture?

A pattern of shared basic assumptions invented,
discovered, or developed by a given group as it
learns to cope with its problems of external adaptation
and internal integration" which has worked well
enough to be considered valid and therefore, to be
taught to new members as the correct way to
perceive, think and feel in relation to those
problems

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Characteristics of Organizational
Culture
Observed behavioral regularities
Norms
Dominant values

Philosophy
Rules
Organizational climate

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Uniformity of Culture
Cultural uniformity is having the same mindset and

agreement on key values

Dominant culture
Is a set of same values shared by a majority of the
organizations members
Sub Culture
is a set of values shared by a minority of the
organization members

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