Navigating change through

formal structure and systems

Submitted By: OCD Group 2

Making Sense of Organizational Structures
and Systems
Differentiation Integration
01 The degree to which tasks are
subdivided into separate jobs
02 The coordination of various
tasks or jobs into a dept or
or tasks group

Chain Of
03 Commands
The reporting architechture in
a hierarchical org.
Making Sense of Organizational Structures
and Systems
Span of Control Centralisation v/s
04 The no. of individual who 05 Decentralisation
How and where is the decision
report to a managers
making distributed in an
organisation structure
Formal v/s
06 Informal
The degree to which the
organizational charts exist,
are codified and are followed
Impact of Uncertainty and Complexity on Formal Structures and
Systems
More Mechanistic
Tasks are broken down into separate parts and rigidly defined and
assigned
High degree of formalization, strict hierarchy of authority and
control, many rules
Narrow span of control with reliance on hierarchies of people in
specialized roles
Knowledge and control of tasks are centralized at the top of the
organization, limited decision making at lower levels
Communication is vertical
Simple, straight-forward planning processes
More Organic
Flexible tasks that are adjusted and redefined through teamwork and
participation
Relatively little formalization, less reliance on a hierarchy of
authority and control, few rules, greater participation and
decentralization
Wide span of control
Knowledge and control of tasks are decentralized and located
throughout the organization. Highly decentralized decision making
Communication is horizontal and free flowing, with many integrating
roles
Sophisticated environmental scanning, planning, and forecasting,
including the use of scenarios and contingency thinking
Information Processing View of Organisational Structure
Putting the Structural Concepts to Work
Aligning Systems and Structures with the Environment
• Structure should follow the strategy- mechanistic approach when cost strategies are critical, organic
approach when innovation is important
• Within divisions of a mechanistic organisation, information processing can differ greatly, hence
structured differently. Eg. R&D vs Production department
Structural Changes to Handle Uncertainty
• Identifying what needs to change, deciding how to break things down and allocate work accordingly,
and finally how to integrate these components to attain the intended results. Eg. Boeing went from 700
suppliers to 100 partners
Making Formal Structure and System Choices
• Organisational designs present structural dilemmas- tough trades offs. Eg. Gaps vs overlaps
• Understand the cost of mismanagement of these structural issues
• Mechanistic organisations may usually create structures which temporarily or permamnenty suspend
the hierarchical processes
 Using structures and systems to
influence the change
To advance the change
Approaches to advance the change do not have to result in a war with one’s employees. Their application can be
undertaken in a manner that facilitates understanding, build support and legitimizes change among those who have
serious reservation.

To obtain formal approval of a change project

To maximize the chances of receiving resources for change initiative, change leaders will need to understand the
budget process and how to garner support for the proposed change through departments and individuals who
approve the financial support. Timing is important.

To enhance the prospects for approval

Change leaders need to ask themselves if formal approval is required or if the change decision already rests within
their span of control. If no approval is required, they may choose to make people aware of their intent and engage
them in discussions to downstream the acceptance.
 Approaches to the Formal
Approval Process
Straightforward rational approach
Proposals are typically developed and brought forward for consideration, and they are reviewed for
inclusion on the agenda. Once the proposal is presented and discussed, it is approved, rejected, or sent back
for further study or rework.
Creeping commitment and coalition building
Initiatives such as customer and employee surveys, benchmark data, pilot programs and other incremental
system-based approaches can be used to acclimate organizational members to change ideas.

Bypassing the formal approval process

When the scope of change is manageable, defensible, and arguably within their scope of authority,
change leaders should consider proceeding on their own without seeking formal approval
 Aligning change with the strategy

• Gaining approval for change becomes easier when you are able to show how the
change aligns with mission, vision and strategy.
• If the resource required for the change is minor relative to the benefits, approval
is more likely.
• By starting small and minimizing the incongruence with the existing systems,
the change leader can move in a systematic fashion in the desired direction.
• Usage of Morphing tactics-when smaller change elements are added together
over time, the cumulative change will look far more significant in retrospect
than they did at any point along the way.
 Interaction of Structures & Systems with change during
Implementation

 Structures & Systems have a significant impact on success of implementation process.

 Transformation at MASkargo – Malaysian air cargo facility – example of system
enabled changes.
 Investment to create premier air cargo handling center – performance fell short of
expectations.
 Opted for a change path – assessed systems and structures.
 Change management was easy – facility was new, systems well documented,
participants expected and embraced change.
 Diagnosis of nature and impact of structures and systems during implementation –
identify when to expect challenges and changes can be made.
 Change agents needs to understand the approval process for their particular projects.
Using Structures & Systems to facilitate the acceptance of change

 Gaining formal approval is not same as gaining generalized acceptance to change.

 Assumption that approval will automatically lead to acceptance is a dangerous one.
 Inappropriate delegation of sponsorship and misapplication of systems – Commonly
cited mistake made by top management in change initiatives.
 Change agents need to understand effects of structures and systems from perspective
of person on the receiving end.
 If people don’t accept change, they won’t modify their behaviour.
 Effective use of formal communication, PMS and Reward systems can play a major role
in gaining acceptance and commitment.
 Clarity of purpose and direction, combined with employee involvement and rewards
for desired behaviour can also be used to advance the engagement and involvement
of employees in change related initiatives.
 People don’t resist all change – they tend to accept those changes that they
understand and believe are worth the effort and risk.
 THANKS!
Submitted By:
OCD Group 2
Anveshi Sharma MBA/06/009

Nithin Babu K MBA/06/151

Mohamed Anas Ravoof K MBA/06/142

Fayez
CREDITS: This A Musaliar
presentation template was created byMBA/06/075
Slidesgo, including icons
by Flaticon, infographics & images by Freepik