«Russia and the World Community’s Respond to a Challenge of Instability of Economic and Legal Systems Materials of the International Scientific-practical Conference ...»
the operation is controlled much more by the current policy than by control principles;
blockage of strategic initiatives due to the fragmentation of responsibilities;
loss of promising possibilities due to the lack of managerial attention.
Due to these factors, environmental changes in a short matter of time make the companies and institutions review their strategies, structures, and change.
The management often does not have reliable instruments and methodological knowledge for complex organizational rearrangements, for systematic, regular mapping and logical structuring of the company and – within that – areas (organizational units) being in critical situation. Therefore, decisions are often based on intuition and individual ideas.
Such structured transformation of a possible model of organization is presented below, which in my opinion, carries the possibility of enlargement, which may be suitable for capability development support.
In order to differentiate the model development, the preparation of typology of work organizations is required, which allows to specify and build-in new areas of investigation. When defining organizational characteristics, the considerations of empirical studies were taken into account as well (Table 1).
In order to refine the way of thinking, the specific approaches of Morgan (1986, 1998; Klein, 2001) have been improved; to present the essence of an organization graphically, metaphors are called for help (Figure 2). When characterizing an organization, metaphors, on the one hand, expand our thinking, provide deeper understanding and a new approach, on the other hand, they may be one-sided and repulsive. The display importance is that the metaphors created from an organization are powerful tools in understanding single elements of a complex phenomenon, but we get closer to the phenomenon as a whole only if we are capable of displaying these elements alternately or simultaneously and pushing ourselves off single approach. In my opinion, during the development of organizational capabilities the separation from conventional thinking is well supported by a metaphorical approach.
Within the world-wide, almost fierce market competition, companies tend to feel and recognize that within a very short matter of time they may lose their "traditional" competitive advantage resulted from the development, excellent quality, their services, products and technologies, etc. In this way, it gets into their field of view that a more durable competitive advantage can be acquired through competencies. The corporate/institutional competencies make the enterprise competitive only if it is able to show such value producing, personal and group competencies together with skills, which – due to their uniqueness and perfectness – are inimitable by competitors.
Nowadays, due to the effect of economic, political, technological and information globalization, the primary interest of not only large, but small and medium-sized enterprises is efficiency increase, cost reduction, improved resource concentration and allocation, which can be achieved mostly by improvement of competencies and capabilities.
In my opinion, the capability development does not logically differ from the classical process of organizational development; at the same time, we can find common elements and completely different, novel approaches and different emphases within the content of individual phases. The differences in the content of the two processes – organizational development and capability improvement – are presented in Figure 3 as part of the classical process model of organizational development. Within the process model, differentiated presentation of the differences can be realized at the phase of identification of problematic areas, mapping of characteristics of the qualifying system and selection of organization analytical method.
During identification of problematic areas, the organization developing elements are complemented by standpoints characterizing the judgment of capability improvement, ensuring a new approach in thinking.
When recording the initial situation, the areas determining organizational capabilities are shown.
One of the critical elements to successfully carry out the work on organizational development and capability improvement is the successful performance of the analysis.
Table 1: Typology of work organizations (own edition) characteristics Type of subor- Clear Shared Overlapped Shared Bidirec- Multidirec- Hierarchic levels partly over- Multidirec- Built on Separability of Fuzzy Strongly Concen- Directed to Clearly separates Integrates Creatable being directed to goal The characteristics Formation of Results in increase of centralization de- Possible Forms a center by creation of cross-sectional functions functions Reducibility of Results in - Leads to Possible being Subordination levels Partly or fully out of the sub- Subordination – Table 1 (continued): Typology of work organizations (own edition) characteristics vertical co- of connec- built for ver- of technocratic and vertical coordina- and person-oriented instru- horizontal and characteristics Organization is a sum of rationally structured working activities
OR G A NI ZA T I ONmethods to study organizational Figure 2: Metaphoric approach to an organization (own edition started from the systematization of Klein (2001)) Detection of deviations between actual and desirable states – identification Recognition of necessity of the organizational development / development of Carrying out causal tests; determination of external-internal reason(s) Determination and fixing problematic areas organizational development:
performance related problems, process network related problems, structural problems, HR related problems;
development of organizational capabilities:
problems related to performance, performance management system, process network related problems, structural problems, HR related problems, problems of cooperation culture, problems of knowledge sharing, deficiencies of strategic thinking, vision creation capability, problems of establishment of cooperation agreements, implementation of cooperation.
Fixing the initial situation – imaging characteristics of the qualifying system organizational development:
structure related characteristics process network related characteristics decision and information system related characteristics HR related characteristics environmental characteristics development of organizational capabilities:
determination of structural characteristics, characteristics related to process regulation and development, supporting systems – characterization of technical conditions of operation, characteristics of human knowledge and skills, putting these in service of strategic environmental characteristics.
The qualifying system •indicator system for valuable types •determination of quality characteristics Figure 3: A classical model of organizational development – complemented by the development of organization capabilities (own edition) Choice of the method of organization analysis •analysis of organizational connections (What does the organizational performance depend •analysis of factors acting on the structure of enterprise (What is the role of organizational characteristics in the organization characteristics?) •analysis of connections between the organizational structure and environment (How does the environmental uncertainty act upon the enterprise?) •factors influencing the organizational development, analysis of organization characteristics (How to determine the main factor?) •analysis of quantitative factors between the organizational structure and organizational performance (How to quantify the cross-connections?) Choice of the methodology of organizational capability analysis •appropriate fit is the base of competition (Does the organizational structure adequately direct the attention of management to the sources of competitive advantage on all the markets? Can we compete with other enterprises in capability improvement?) •value added by the top management (Does the organizational structure help the top management to contribute added value to functioning the organization? Does the clarification of strategy structure and development of capabilities take place in order to ensure the future?) •allocation of resources (Does the organizational structure reflect strengths, weaknesses, motivation of the employees?) •feasibility (Are there known factors preventing or restricting the implementation of planned organizational structure?) •refining structure, good plannability (Can the enterprise structure be interpreted as portfolio of capabilities, products and business units? Does the organizational structure tolerate or support the formation of cultures/subcultures different from the general one?) •problematic connections (Does the organizational structure provide coordination instruments to handle problematic, conflicting connections between organizational units?) •redundant hierarchy / status of business units (Isn’t there too many hierarchic levels and units in the organizational structure? Can the strategic business unit be considered storehouse of basic capabilities?) •accountability (Does the organizational structure help effective control?) •flexibility (Does the organizational structure help the development of new strategies and give flexibility required by adaptation to the change?) Recording method(s), mapping analytical parameters, determination of analytical Formulation of analytical results as organizational development/organizational Development of organizational development/organizational capability improvement Review of variations according to the selected ranking method(s), evaluation