INDUSTRIAL

MANAGEMENT

GEPM 381
NE – 7; Level 3 ; Term I
Spring 2023
Department of Nuclear Science and Engineering
Instructor: Arif S. Bhuiyan, MSEd
 Chapter 2

Organization Planning, Design, and

Development
 Chapter Outline
• Introduction
• Principles of Sound Organization
• Organization Planning
• Organization Design
• Organization Development (O.D.)
• Characteristic Features of O.D.
• Models of Organization Development
• Organization Development Action Research Process
• Diagnostic Methods
• Planning the Program
• Characteristics of a Successful OD Program
 Organization
Organizations are formed – in pursuit of an objective call for the joint
efforts of two or more individuals.

Major Components:
• Composed of individuals and groups of people
• Seek the achievement of shared objectives through the division of
labor
• Integrated by information-bound decision processes to coordinate
the resulting tasks
 Organization - Definition
“It is the Grouping of activities necessary to attain organizational objectives and
assignment of each grouping to a manager with authority necessary to supervise
it.” – (Koontz and O’Donnell)
“Is the Process of identifying and grouping work to be performed, defining and
delegating responsibility and authority, and establishing relationships to enable
people to work most effectively together in accomplishing objectives.” – (Allen)

Organizations are developed around the concept that a complex task can be subdivided
into simpler components by means of division of labor. The design of a structure to attain
the organization’s goals requires addressing two primary issues: how to perform the
division of labor, and how to coordinate the resulting tasks.
 Organization Has
i. A system
ii. Well-established structure
iii. People to work and deal with each other in a coordinated and cooperative manner
iv. Grouping of work
v. Established relationship for authority and delegation
vi. Attainment of common goals
vii. Internal structure for performance
[Link] roles and responsibility of each person
ix. A constituent of (a) division of labor, (b) identification of the source of authority, and
(c) establishment of enterprise relationship.
 Organization Planning
Purpose of Organizational Planning:
Organization planning defines or reshapes the organization structure for:

a. Clarifying Objectives, roles, and relationships;

b. Determining the management resources required now and in the future;
and
c. Providing information on the job requirements
i. right people can be appointed
ii. Adequate training can be given
iii. Payments to the staff are commensurate with their relative levels of
responsibility and value to the organization.

The organization structure is the framework for carrying out the task of management.
The overall task has to be divided into a variety of activities, and means have to be
established for the direction, coordination, and control of these activities.
 Techniques for Organizational Planning

Two main techniques:

1. Organizational Analysis (SWOT Analysis)

This is the process of defining the objectives and activities of the organization in light of an
examination of its external environment and internal circumstances.

2. Organizational Design
The information provided by the organization analysis is used to define the structure of
the organization, function of each major activity, and the roles and responsibilities of
each management position in the structure.

The aim of organizational design is to enable collective effort to be explicitly organized to

achieve specific ends. The design process leads to a structure consisting of units and
positions, between which there are relationships involving the exercise of authority,
communication and exchange of information.
 The stages followed in an Organizational Planning

The initial stages include the following:

1. Defining overall aims and purposes,
2. Defining and classifying objectives, and
3. Conducting an external analysis of factors affecting the organization.

The remaining stages are described under the following headings:

1. Organizational Analysis
2. Organizational Design
3. Planning and Implementation
 Stages followed in an Organization
Define Aims & Purposes Planning (Organization Planning )
Internal Analysis of
• Objectives External Analysis of
• Activities Define & Classify Objectives • Environment
• Decisions • Economy
• Relationships • Market
• Organizational • Financial
Structure • Legislative
• Job Structure • Social
• Organization Climate • Cultural
• Management Style Define Activities Required

Group Activities Integrate Activities

Define Structure

Define Responsibilities &

Relationships

Develop Implementation Plan

Organization
Manpower Plans Inform Staff
Development

Implement
 Organizational Analysis
Organizational Analysis Examines:
1. Objectives: To find out what they are and how clearly they are defined and understood at
all levels.
2. Activities: To establish what work is done and what work needs to be done by the
organization to achieve its objectives.
3. Decisions: To study where and by whom the key decisions are made and how work is
delegated and decentralized.
4. Relationships: To define what interactions and communications take place between
people in the organization so that an assessment can be made of the extent to which the
grouping of activities, lines of communication and information systems facilitate
effective management and coordination.
5. Organization Structure: To find out
• How activities are grouped together
• The spans of control of senior and middle managers and
• The number of levels in the management hierarchy
 Organizational Analysis – cont’d
Organizational Analysis Examines:
6. Job Structure: To determine the content of individual jobs in terms of duties,
responsibilities, and authorities. The aim is to establish the degree to which tasks
are logically and clearly allocated and to indicate whether job holders are clear
about what they are expected to achieve.
7. Organization Climate: To get a feel of the working atmosphere with regards to
teamwork and cooperation, commitment, communication, creativity, conflict
resolution, participation, and confidence and trust between people.
8. Management Style: To find out what sort of approach to management is being
practiced, especially at the top.
9. Management: To establish
• The extent to which the existing organization has been built around the
personalities, strengths, and weaknesses of the key people in it and
• The availability of the quality of people required to facilitate necessary changes
in the organization structure.
 Organization Structure

Defined as the allocation of work roles and

administrative mechanisms that creates a
pattern of interrelated work activities, and
Direction
allow that organization to conduct,
Coordinate, and control its work activities.
Activity Activity

Task of
Management

Control Coordination

Activity
 Organizational Structure: Decision-supporting systems
Figure. 2.2 – Management Systems: Structure and Processes

Management Planning
Control System System

Organizational
Structure

Communication & Evaluation &

Information Reward System
System

This structure is not only a hierarchical allocation of responsibilities, but also encompasses all
the managerial processes. Usually these processes give rise to formal managerial systems.
Organizational Structure must give proper attention to the complex web of relationships and
mutual between structure and other decision supporting elements of the organization.
Symptoms of an Inadequate Organizational Structure
1. Lack of opportunities for development
2. Insufficient time for development
3. Intensive antagonistic environment
4. Lack of definition in portfolio business planning
5. Lack of coordination with the sister division
6. Excessive duplication of functions in different units of the firm
7. Excessive dispersion of functions in one unit of the firm
8. Poor profit performance and low return expectations
Organizational Design

Strategic Apex

Techno- Support
structure Staff
Middle Line

Operating Core
 Organizational Design
Mintzberg conceptually describes an organization as typically having Five
basic parts: Fig. 2.3

1. Operating Core: This part consists of those who perform the basic work
relating to production or services.
2. Strategic Apex: Comprises people having overall responsibility for the
organization, namely chief executive and other top-level managers.
3. Middle Line: It is the linking pin between the strategic apex and the operating
core. The chain runs from the senior managers down to the first-line managers.
4. Technostructure: Is made up of analysts whose job is to control, stabilize and
standardize patterns of activity in the organization.
5. Support Staff: Support staff is engaged in large organizations to encompass
more and more boundary activities. Can be found at various levels of hierarchy.
 Organizational Planning and Implementations
Organizational Planning and Implementations ensure:
• Changes are introduced smoothly on a staged basis to avoid disruption
• Manpower plans are drawn up to develop, train, and recruit the managers
required - now and in the future
• Organization development programs are introduced to help the new or revamped
organization operate successfully
• Staff are kept informed about what is happening, why is happening, where is it
going to happen, and how it affects them

Benefits: of organization planning derive mainly from the initial analytical process.
This stage defines any problems that may exist and leads directly to the provision of
optimum solutions
 Organizational Development (OD)
Definition: Is concerned with the planning and implementation
of programs designed to improve the effectiveness with which
an organization functions and responds to change.
-- Based on scientific awareness of
1. Human behavior
2. Organizational Dynamics
-- Directed towards
1. more participative management
2. Integration of individual goals with organizational goals
-- OD is intended to create an internal environment of openness,
trust, mutual confidence, and collaboration.
 Organizational Development - Objectives
Objectives
-- There are 4 basic objectives of OD
1. Improve Organizational Performance as measured by
profitability, market share, and innovativeness.
2. Better Adaptability to its environment
3. Willingness of Members to face organizational problems and
find creative solutions
4. Improve Internal behavioral patterns
Characteristic Features
-- There are 3 main features
1. They are managed or at least strongly supported
2. The plans for OD are based on systematic analysis and
diagnosis
3. They make use of behavioral science to improve
 Organization Development (OD)Models

There are 3 popular Models of OD – Change Process

(Behavior)

1. Kurt Lewin’s Model

2. Larry Griener’s Sequential Process Model

3. HJ Leavitt’s System Model

 Organization Development (OD)Models
Kurt Lewin’s Model – It can be divided into 3 stages:
-- Stage 1: Unfreezing (Creating the need for change, motivating the
people for change, and minimizing resistance to change)
-- Stage 2: Changing (Transition from old behavior to experimentation
with new behavior in terms of cognitive redefinition through identification
and scanning.
-- Stage 3: Re-freezing (Stablishing and integrating the change by
reinforcing the new behaviors and integrating them into one’s personality
as well as in formal and interpersonal relationships.
Organizational Development (OD) - Models
There are 3 popular Models of OD – cont’d

HJ Leavitt’s System Model

Structure

Technology
Task
(Tools)

People
(Actors
)
 Organizational Development (OD) - Models
HJ Leavitt’s System Model

Structure Task Technology (Tools) People (Actors)

The model focuses on the interactive nature of various sub-systems in a change process. Organization as a
system of four interacting sub-systems: task, structure, people and technology. Change in any one of the
sub-system tends to have consequences for other sub-systems.

OD effort should not focus on the intended change, but also on the effects of change on the other sub-
systems. Change can be brought out in any of the sub-systems depending upon the diagnosis of the
situation.

The planned change may be interpersonal training of the required type or technological change or structural
or task modification.
 Characteristics of a Successful OD Program
1. It is a planned program that involves the whole of an organization or a relatively autonomous
unit within an organization.
2. It is designed to create organizational conditions which will directly help the institution to
accomplish a specific strategy.
3. The senior management is personally committed to the goals of the program.
4. It is a long-term effort (takes 2-3 years)
5. The program is action-oriented (the program is designed from outside to generate action by
those involved)
6. Particular emphasis is placed on changing perceptions, attitudes, and behavior, not solely on
the structural or procedural change
7. It relies on some form of experience-based learning through which participants can examine
the present situation, define new goals, and explore new ways of achieving them.
8. The basis of all programs is the groups or teams from which the organization is constructed.