Industrial and organizational psychology/Module 14

Organizational Theory, Dynamics, and Change

Module 14.1 - Conceptual & Theoretical Foundations of Organizations

Organization: A group of people who band together for a common goal and follow a number of procedures to develop these products & services. They need strategic planning (buying from/selling to the unorganized).

These organizations are a "way of life".

Successful organizations are able to integrate several organizing forces (HR, finance, marketing, production) smoothly.

Classic Organizational Theory

Classic organizational theory proposes that organizations should emphasize architecture of organization rather than the processes of operation. Bureaucracy is the ideal way. The following are methods for describing an organization:

• Division of labor
• Delegation of authority
• Structure
• Span of control

The theory assumes there was one best configuration for an organization, and assumes that organizations affect the behaviour of their members, but not the other way around.

Human Relations Theory

The human relations theory adds a human element to the study of organizations. McGregor's Theory X & Theory Y goes as the following:

• Theory X: Managers believe subordinate behavior must be controlled.
• Theory Y: Managers believe subordinates are active members of the organization, and responsible for their own behavior.

The growth perspective of Argyris suggests there is natural developmental sequence in humans that can either be improved or destroyed by an organization. The proposed growth is a natural & healthy experience for an individual.

Contingency Theories

3 organization types are described:

• Small batch organization
• Large batch & mass production organization
• Continuous process organization

The span of control varies systematically by the organization type. Introduces technology.

Lawrence & Lorsch

Lawrence & Lorsch came up with:

1. Mechanistic organizations: Depend on formal rules & regulations, small span of control
2. Organic organizations: Less formal procedures, larger span of control.

They also identified the department as an "important level" for understanding organizations.

Mintzberg

6 forms of coordination:

1. Mutual adjustments based in informal communication.
2. Direct supervision
3. Standardization of work processes
4. Standardization of KSAOs necessary for production
5. Standardization of outputs
6. Standardization of norms

Tavistock Institute's Sociotechnical approach

This uncovered a number of dramatic changes in social patterns of work that accompany technological change. This includes joint consideration of technology & social patterns.

Recent Approaches & Conclusion

1. Pfeffer's resource theory: An organization must be viewed in context of connections to other organizations. He states that the key to organizational survival is the ability to acquire and maintain resources.

The conclusion of the theories of organization is that motivation metaphors can be applied to organizational theories.

Module 14.2 - Social Dynamics of Organizations

Climate & Culture

Brief history of climate consists of Lewin's autocratic vs. democratic climate. Recent investigations have found that multiple climates may exist with any organization (service climate and safety climate, for example).

The word culture was introduced to address issues regarding value & meaning of actions taken place in organizations that were not encompassed in climate. The Organizational Culture Inventory (OCI) measures culture in organizations.

When looking at climate vs. culture, basically...

• Climate is about context in which actions take place (created at lower levels of organization).
• Culture is about the meaning intended by these actions (created and conveyed from higher levels of organization)

What about when cultures clash?

For multinational corporations, acknowledging the existence of different cultures is key. The following models operate sufficiently under ethnocentrism, polycentrism, regiocentrism, and geocentrism.

Socialization & Concept of Person-Organization (P-O) Fit

Organizational socialization: the process by which a new employee becomes aware of values & organizational procedures. Recruitment is seen as socialization, as seen from research findings.

Socialization & P-O fit models: the extent to which skills, abilities, & interests of individual are compatible with the job demands (person-job fit). These are broadened to include fit between the person and the organization (P-O fit). See also the work adjustment model.

Three Stages of Socialization

1. Anticipatory Socialization: Getting in (learning about prospective organizations).
2. The Encounter Stage: Breaking in (first encounters with the new organization).
3. The Metamorphosis Stage: Settling in (making full entry into the organization)

Schneider's ASA model

ASA --> Attraction-Selection-Attrition (ASA) model: Organizations attempt to ATTRACT and SELECT particular types of people. ATTRITION occurs through direct/indirect actions.

Module 14.3 - Organizational Development & Change

Lewin's 3-stage process

1. Unfreezing: Become aware of values & beliefs.
2. Changing: Adopt new values, beliefs, and attitudes.
3. Refreezing: Stabilization of new attitudes and values.

Episodic changes do take place, but they are infrequent and discontinous. It is welcomed because it is focused, time-urgent, and reduces uncertainty amongst workers - but can be stressful at the same. These changes are usually managed.

Continuous change, on the other hand, is the opposite: ongoing and evolving. Usually improvised, rather than intentional like episodic changes. Lewin's model needs to be re-assessed in a continuous change environment. So it goes as follows: freeze → rebalance → unfreeze.

Resistance to change could be caused by the following barriers: economic fear, fear of the unknown, threats to power balance, and (possibly) previous unsuccessful change efforts.

Large-Scale Organizational Change Initiatives

• Total quality management (TQM): emphasizes team-based behavior directed towards improving quality and meeting customer needs/demands.
• Six Sigma systems: provides training in statistical analysis, project management, and problem-solving methods to reduce defect rate of products.
• Lean production manufacturing: focus on reducing waste in every form. Consists of just-in-time production (detailed tracking of materials & production; draws both suppliers and customers into organizational circle). Often requires radical redesign of HRM systems to be successful.