Organization Development and Transformation - Managing Effective Change - Literature review Example

Running Head: ORGANIZATIONAL EFFICIENCY Name Course Instructor Date Organizational Efficiency In today global competitive market, organizational effectiveness is one aspect that a manager should incorporate into their systems. According to Robbins & Barnwell (2006) organizational effectiveness is defined as that concept that measures how effective a particular organization is effective in achieving its outcomes widely focusing on its management. In the quest to achieve organizational efficiency, it is quite evidence that most managers find rational approaches to organizations and organizing appealing. Most managers involve in rational approach since by use of this approach they are able to realize a problem within the organization (Robbins & Barnwell, 2006). After realizing of the problem the manager easily is able to establish and evaluate various criteria that can be used to tackle the problems. The evaluation and establishing alternative criteria ensures that organizational efficiency is maintained thus achieving positive outcomes. Robbins & Barnwell (2006) asserts that, rational approach is defined as that model which highly focuses on outlining organizational ability in achieving its designed goals. Organizational goals are mainly identified by way of establishing general goals, discovering set objectives that should be accomplished and finally, defining a set of activities for each set objectives (Robbins & Barnwell, 2006). Organization is mainly evaluated by highly comparing activities that have been accomplished to those that had been planned for initially. It is for these reasons that from a rational perspective, organizational efficiency should be aimed at attaining specific goals. Characteristic of this approach of organizational efficiency is formalization and goals specificity. Further, it is quite evident that as compared to other approaches such as natural and open, rational perspective is more suitable approach especially in the technical level. Thompson & McHugh (2002) maintains that, this is because that manager is able to offer immediate response in case of technical problem. Further, rational approach in a technical level identifies the various organizational types that can adapt easily especially in varying technical environments. Within organizations, most managers make use of rational approach since it is mainly directed towards attaining specific goals through formal means (Thompson & McHugh, 2002). Driven by gradual rational decision making, managers who find this approach appealing in organization and organizing are considered to be capable of attaining both long and short term organizational goals (Thompson & McHugh, 2002). Organizational effectiveness from a rational approached is widely achieved by way of setting specific goals, prescribing organizational behavioral expectation through managers actively involvement in formalization of roles and rules and finally, monitoring conformance to the organization expectations. Thompson & McHugh (2002) maintains that, managers who find rational approach effective is able to create strong organizational form since the rational structure adapted provide ground for predictable and stable behavior for superiors and subordinates. Allen (2001) asserts that, in this approach, managers and subordinates behavior are rendered reliable due to division of labor that comprises specification of obligations, roles and specific clarity of a defined in hierarchical relation. For managers to prevent other superiors from behaving capriciously, rational approach assists management in formalization or defined roles and expectation (Allen, 2001). Clearly, both management and organizational goals are perceived to increase predictability and rationality within a system. Rationality approach is more appealing since it tries to eliminate organizational complexity by simplifying decisions and widely developing system that will ensure that all employees and employers support one another in decision making. Thompson & McHugh (2002) maintains that, a good example of rational approach is the use of scientific management. The concept of scientific management allows managers attain organizational effectiveness by widely placing focus on organizational internal function mainly emphasizing on system and structure of an organization. Managers are able to be innovative especially while guiding employees. It indicates that a best employee is proven by experimental result. Therefore, managers are able to understand that employees are resources which when properly utilized; there is increase in effectiveness and performance in execution of assigned tasks. Robbins & Barnwell (2006), employee participation in the management of organizations is important as this encourages modernism in that employees own the organization thus pursuing its goals and objectives. This process is alleged to encourage social equality and eliminating the science behind management where workforces are perceived as working equipment to be controlled in order to produce results (Thompson & McHugh, 2002). Finally, rational approach ensures that a manager is able to understand his roles especially in organizing and organizational efficiency. The manager is able to; define organizational mission through establishing goals and purpose, strategizing and planning, designing, organizing and structuring, setting value expectations and performance standards, budgeting and allocation of resources, managing of external relations, improving, learning and evaluation of various projects and finally, establishing and controlling authorities and roles. Evidently, there are many limitations of using the rational perspective of organization and this has ultimately forced management of many organizations to shift to an open or natural approach of organization. Unlike the rational system, the natural approach recognizes the fact that an organization is a social entity which offers collectiveness of ideas and it is a fundamental tool towards survival of the organizations systems. This approach emphasizes on harnessing the minds and hearts of all the members of the organization by creating informal social networks among participants of the organization rather than having formal structures. According to the Hawthorne Effect, the most effective organizational behavior of participants can be obtained by stressing on commitment and loyalty rather than having a management that is characterized by formal sanctions and self-interest (Scott and Davis, 2007). French et al (2005) asserts that the natural system approach helps to modify unstable and planned aspects of the organization that pose as a threat to all other systems. The way in which the organization responds to challenges is mainly influenced by the behavior and values of the participants as well as the defense mechanisms that the organization utilizes. The natural system concentrates on threats that might potentially disrupt the balance of the organization. In addition to this, the natural approach tries to balance the needs all participants of the organization including customers and suppliers. Since the model assumes that all members must belong to at least one staff group, committee or department, management can effectively monitor this work groups and determine the best and least performing. In the natural system change is viewed as effort of the entire organizations hence it affects everyone involved. Therefore, attempts to change the organization by management must involve the entire organization and not just part of it. This will require the process of planning and implementing the change to be very systematic and comprehensive. It is therefore notable that the natural approach increases commitment to change by all members of the organization and reduces conflicts over the change since everyone is involved in the change. The open system came up after the natural system due to the increasing need for closer interaction of the organization with its external environment. The open system approach stresses on the input-throughput-output model hence providing a system that is self-maintained. The inputs and throughputs are obtained from the external environments and they are taken back to the same environment. Besides the external environments, there are several other key features of an open system approach. The open system is treated as a separate entity form any other social entity in terms of physical, social, time-related, cultural and psychological; aspects. The approach links the visions and goals of the organization to the needs of its direct external environment. Once this has been achieved, the organization is considered to have attained its purpose of existence. The extent to which the organization is able to achieve its goals can be determined by use tactical feedback indicators. Results of this feedback indicate how the business is performing in relation to its external environment in terms of financial and non-financial aspects. In order to ensure sustainability of the system, management has to constantly obtain information concerning the external environment for instance material, financial and human resources as well as needs and trends of the market segments. Indeed, there are both positive and negative implications of an open system of organization. Understanding of all the technicalities involved in an open system will enable management to develop a completely responsive open system. Many Japanese firms that operate in foreign countries are a good example of successful open system since they have been able to understand all the elements required. These firms commit resources and time to understand customers and employees needs and local culture of the new market before taking the venture. Transnational organizations such as coca-cola have gained international popularity by launching marketing campaigns in different countries with the aim of understanding cultures of their target audience. On the other hand, there are many organizations that have failed in establishing branches in foreign countries as a result of simply not understanding the local culture. One such example is Sears Roebuck new store in a Coastal city which closed down in less than one year due to overwhelming returns of products from customers. Their motto allowed customers to return products in exchange for their money if they were dissatisfied. Adapting an open system of organization will enable the management in several ways. To begin with, it will be in position to identify and quantitatively measure results of the organization and also it will be able to determine the extent to which the organization is achieving its vision and goals. In addition to this, the system makes it easy to identify elements in the culture and organizational structures that might be derailing desired performance hence isolate them. This will consequently cause the management to redesign organizational structure, culture and systems in order to acquire the desired results. Finally, management can easily predict effectiveness of the changes and confirm it using key performance indicators (Goodman and Rousseau, 2004). References Robbins, S & Barnwell, N. (2006). Organisation Theory: Concepts & Cases,, 5th Edition Prentice Hall, Sydney, Australia French, W., Bell, C. and Zawacki, R. (2005).Organization Development and Transformation: Managing Effective Change. London: McGraw-Hill. Scott, W. and Davis, G. (2007). Organizations and Organizing: Rational, Natural and Open System Perspectives, Pearson Prentice Hall, NJ, USA. Goodman, P., and Rousseau, D. (2004)."Organizational Change that Produces Results: The Linkage Approach." Academy of Management Executive 18, no. 3: 7–20. Thompson, P & McHugh, D. (2002). Work Organisations: A Critical introduction, Palgrave, Hampshire, UK Allen, P. (2001). A complex system approach to learning in adaptive networks. International journal of innovation management,vol. 5,(2) 149-180. Read More