Expert answer:System Approach to Organizational Change
Expert answer:Unit 5 Completed System & Structure Analysis Make sure you cover all the elements required in each of the seven sections below. Answer the questions in Word, then copy and paste your responses into the proper fields on this form. Introduction & Background Example: St. Jude’s Children’s Research Hospital is a non-profit healthcare provider founded in 1962 by actor Danny Thomas. Located in Memphis, Tennessee, St. Jude’s has affiliate hospitals in Illinois, Louisiana (2), Alabama, and an additional affiliate in Johnson City, Tennessee. St. Jude’s focuses on what are called ~catastrophic~ childhood diseases, especially cancer. St. Jude’s provides healthcare to over 4,900 children each year regardless of their ability to pay making it unusual in the healthcare industry where the cost of treatment typically outpaces inflation. For families with insurance, St. Jude’s accepts whatever payment is made by the insurance provider as payment in full. Children who have no insurance are treated without cost. In addition to providing care to children from many countries, St. Jude’s is a world leader in research in pediatric catastrophic diseases. All children treated at St. Jude’s are enrolled in one of the hospital’s research studies. St. Jude’s also offers assistance to patients whose physicians are unable to diagnose their illness. In 1996, a St. Jude’s researcher, Dr. Peter Doherty, received the Nobel Prize for Medicine for his groundbreaking work in immunology. St. Jude’s is supported by charitable contributions, federal grants, insurance payments, and its own endowment. 1.) In the box provided, write an overview of the organization including the types of services and/or goods produced and the industry in which it operates. Give a brief history of the organization, where it is located, when the organization was founded and major events in its history. Remember that any information you retrieve from an outside source, whether paper or electronic, must be cited in APA format. Recent Trends in the Industry Example: The two most significant trends in the healthcare industry are increasing costs and a shortage of healthcare workers. Since St. Jude’s accepts payment in full based on fees determined by insurance companies, who have an incentive to contain costs, efforts to reduce healthcare costs mean a reduction in the payments St. Jude’s receives for services. St. Jude’s is a charitable organization and supplements these payments with fundraising efforts and management of its endowment. St. Jude’s is also a consumer of healthcare products used in the treatment of patients. As such, when healthcare costs increase, St. Jude’s costs increase as well. The shortage of healthcare workers means that St. Jude’s must recruit aggressively in the labor market to hire the best caregivers and researchers. 2.) Here, discuss the industry in which the organization operates. Include significant recent trends in the industry or environmental factors that have affected your organization (such as higher fuel prices for a trucking firm). Potential factors include government regulation, new competitors, substitute products or new technologies. Structure Example: St. Jude’s has a Board of Directors who appoint the Chief Executive Officer who is W. Evans. Three executive vice presidents report to Evans: EVP Chief Medical Officer (J. Mirro), EVP Scientific Director (J. Downing), EVP Chief Operating Officer (J. Nash). There is also an Administrative Director who reports to the CEO. Each administrative department has a director who reports to the Administrative Director. Each department director has between three and 15 supervisors who directly manage the hourly or professional workforce (~Organizational Chart,~ 2007, art.10.005). In the Purchasing Department, the director is John Smith, who has three supervisors, one for each of the major areas (Medical Supplies, Food and Hospitality Services, and Janitorial/Maintenance). There are two clerks assigned to each area who directly process purchase orders and coordinate bids, if necessary. 3.) Provide a narrative of the departmental structure based on the structure analysis you completed earlier in the course. Discuss the interconnectedness of the department with other departments in the organization. Remember to cite the sources of any charts you acquired from other source System of Operations Example: Mission – The mission of St. Jude Children’s Research Hospital is to advance cures, and means of prevention, for pediatric catastrophic diseases through research and treatment. Consistent with the vision of our Founder Danny Thomas, no child is denied treatment based on race, religion or a family’s ability to pay.~ (http://www.stjude.org/media/0,2561,453_2139,00.html, retrieved September 9, 2007) St. Jude’s mission requires that it engage in cutting edge research activities that involve both basic scientific research as well as applied research that specifically focuses on developing and implementing treatment plans. Danny Thomas’s vision for the institution was that no child would ever be turned away because of the ability of his or her parents to pay for treatment, or because of race, nationality, sex, or religion. Goals and Objectives – The three major goals of St. Jude’s are to lead the way in pediatric cancer prevention and control, increase cure rates in the US from 70 percent to 90 percent for the major forms of cancer, and unfaltering commitment to excellence across every aspect of our enterprise (~Strategic Plan Unveiled,~ 2006). To support the goals, one objective is to complete development of the Cancer Prevention and Control Program and the ACT Clinic. Other projects support attainment of these goals such as the human genome project, pharmacogenomics, biotechnology and informatics. 4.) Mission Statement Present and discuss the mission statement of the organization in a narrative. You should quote the mission statement and cite the source in APA format. This section should expand on the statement to include discussion of why the organization chose this as its mission and if the majority of employees know and believe in the organizational mission. 5.) Goals & Objectives Provide a narrative of the major goals of your organization as well as the specific objectives of your department. This should include discussion of how these goals and objectives help the organization achieve its mission and an overall assessment of the clarity and effectiveness of such goals and objectives. Opportunity Assessment Throughout the course, you have identified several opportunities for improvement in the areas of communication network, organizational structure, physical layout, work processes, organizational productivity, and employee performance. Below is a list of questions that will help guide you in identifying specific opportunities in each of those six areas. List each answer fully and completely. Please make sure to complete the read and attend sections before attempting to complete this form. Areas for Improvement Communications:One potential area for improvement in the area of communications is to focus on interdepartmental communications and the timeliness of communications between departments. Sometimes it can be weeks before a decision in one department is communicated to another. One possible solution would be to have monthly staff meetings where each department communicates decisions that affect other departments. Structure/Physical Layout:Currently, several employees are under treatment for repetitive motion injuries. These injuries could be avoided if the current chairs at workstations were replaced with ergonomic chairs. This would reduce the number and severity of injuries. Work Process Analysis:As the Accounts Payable Department, we are responsible for paying St. Jude’s bills in a timely manner. The current process requires that a department obtain a purchase order number from the Purchasing Department, place the order, and then forward the information to Purchasing. If the Purchasing Department were responsible for placing the orders, it would not be necessary for the department making the purchase to communicate twice with Purchasing. Organizational Productivity:The software program that St. Jude’s uses to maintain its accounting system is out of date. The program was originally written by programmers at St. Jude’s in the early 1990s. Commercial packages are available that are more efficient and do not require programmers to maintain. Incentive Program:Currently, there is no incentive program at St. Jude. There are programs in which employees are recognized such as ’employee of the month or employee of the year,’ but that is not an incentive program. Due to the limited population in the clinical research ladder, a workable incentive program is difficult to develop. An incentive program that provided financial incentives for progress toward organizational goals would improve productivity and morale. Employee Performance:One of the most common reasons why employees leave St. Jude’s is because they experience high levels of stress due to the nature of the work. If St. Jude’s provided training in stress management, employees would be more productive and less likely to leave. 6.) What is your assessment of the health of the communication network within your organization? List any opportunities identified during your assessment. 7.) List any discovered opportunities to improve the structure or physical layout of your workplace. 8.) List the top recommendations discovered while completing the Work Process Analysis form. 9.) Here, list and briefly describe the top recommendation reached while completing the Organizational Productivity questionnaire. 10.) List and briefly discuss any opportunities to improve the current incentive program. 11.) What was the top recommendation to improve the performance of employees within your department? Top 3 Improvement Opportunities Example: Communication between the Accounts Payable department and the Purchasing department is a critical issue. When a bill is received, if it does not match the purchase order, the vendor must be contacted and the bill researched. In some cases, the error is on the part of the vendor. But in about half of the cases, the error is our fault. In fact, it is not an error at all. Many times, after a purchase order is approved, the Purchasing department makes changes to the order that are not updated on the purchase order. The hospital’s policy permits these changes as long as they do not exceed 10% of the purchase order, but the purchase order is supposed to be updated. Also, there are cases where a bill is paid even through it does not match the purchase order. During the annual audit of the hospital’s financial records, auditors cite this as noncompliance. Solving this problem would reduce errors and save considerable time as well as ensure that the hospital’s bills are paid on time. Ergonomics represent another highly promising area for improvement. Currently, the workstations in the Accounts Payable department do not include relatively common improvements such as lowered keyboards, repositionable chairs, and better designed workstations. The third possible area for improvement is organizational productivity. St. Jude’s employs 2 computer programmers just to maintain the accounting software. If a commercial accounting program were purchased, these employees could be reassigned to maintain other programs. Since it is difficult to recruit qualified programmers, this would enable St. Jude’s to use its human resources more efficiently. 12.) After completing the previous section, rank the top three opportunities based on their value to the organization, the feasibility in terms of implementation, and the consideration of your own role within the organization. Requirements:Learner successfully applied critical thinking to the case study analysis &recommendations/actions taken – Learner successfully incorporates a minimum of three scholarly sources in every essayquestion to support their position. (No more than 10% of the entire submission should befrom referenced sources. In other words, the references should support the learner’s worknot be the bulk of what is written.).- Learner met the criteria for academic writing (i.e. no spelling or grammar errors, properlyformatted paragraphs, APA formatting used for references, etc.) – Learner met the minimum 125 words per question.PLEASE SEPARATE THE ANSWER LIKE HOW I PROVIDED THE 12 QUESTION.EACH QUESTION NEEDS THREE REFERENCES.
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Systems
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Unit
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Theory to Practice
Unit Eight
Theory to Practice
Review & Summary: A Brief Assessment of Opportunities
After reviewing the core principles of Systems Theory, the focus shifts from the
descriptive phase to the prescriptive or the application of the knowledge.
The initial phase (descriptive)
presented the core principles
with the primary objective of
expanding the comprehension level of Systems Theory
and its overall impact on
organizational behavior.
The focus of the prescriptive is placed
on how such knowledge can be applied
Wto improve the organizational performance. The prescriptive begins with the
I process of assessing the opportunities
L for organizational improvements, then
S developing a strategy to improve perO formance within the organization.
N
The structure and systems analysis phase should
have yielded a list of opportunities
,
to improve the organizational performance. The next step is to conduct a brief assessment of each topic based on attainability, feasibility for implementation, and overall
J
value to the organization.
A
M
I
Six Major Areas of Possible Improvement
E
While the possibilities for improving organizational performance are virtually unlimited,
there are six general areas where the best opportunities are most easily found. Those
5
areas are:
0
• Layout/Structure
5
• Organizational Productivity
1 • Employee Performance.
B
Completion of the system and structure analysis
U process helps identify areas for possi• Communications
• Work Processes
• Incentives
ble improvement. Reviewing each of the six areas will help identify possibilities that
may not be obvious. Also, opportunities differ depending on the specific needs of the
organization, as well as changing industrial trends
8.2
Systems ~n~ Practice Online – Unit Eight – Theory to Practice
Unit Eight
Theory to Practice
#1. Communication Network
Let’s begin by exploring the all important organizational communication network. Remember that Systems
Theory’s foundational principle suggests a view of a
modern organization as a whole made up of interconnected parts where, to a varying degree, the
performance of each part affects and is affected
W
by the performance of all others.
I
Prescriptive
L
With interconnectedness being the trueSnature of
organizational components, we can now shift to a
O
prescriptive mode and ask how that knowledge can
N performance.
best be utilized to improve organizational
,
An effective structure where the all components
fit together
can be achieved through a healthy and active communications network
that keeps all parts working together and
J on the same pace.
A
M
An effective communications network can best be
defined asI timely dissemination of sufficient information onEa need to know basis. The general idea
Effective Communications Network
An effective way
to start the
improvement process
is to ask a general
question, the answer
to which can provide
a foundation for a
practical improvement
opportunity.
behind any network of communications is keeping
everybody5functioning together. An effective way to
start the 0
improvement process is to ask a general
question the answer to which can provide a founda5
tion for a practical improvement opportunity. In the
1
area of organizational
communication, a generic
B
(broad) question can be phrased in the following
manner: U
How do we improve the effectiveness of this communications network?
An effective communications network should be built to facilitate the unimpeded
flow of information between the separate components that make up the organization. Various departments, divisions and sectors within the company must share
information needed to operate.
8.3
Systems ~n~ Practice Online – Unit Eight – Theory to Practice
Unit Eight
Theory to Practice
The structure and system analysis may have identified a problem or an opportunity to
improve the flow of information between two different departments, shifts or others
dealing with the organization (i.e. suppliers or customers). Consider the following situations as examples of how to narrow the scope of research to become a more manageable project.
Problem:
The flow of
information
between the
purchasing
department
and the manufacturing
department
is ineffective.
Result:
Production is shutdown
because
W
either purchasing did not order
I
enough material, excessive cost
L
because of an excessive
amount of material,
S or possibly
material that was ordered is no
O
longer used in the manufacturN other numing process or any
ber of problems. ,
J
Question:
How can BC
Company
improve the
flow of
information
between the
purchasing and
manufacturing
departments?
In some cases, the more pressing issue may actually be the flow of information not
just between departments but also between A
shifts. If so, the question becomes:
M
How can BC CompanyI improve the flow of
information between day and night shifts?
E
Just as the need to be connected is not
limited to the traditional borders
of the organization, the
role of an effective
communications
network is not
limited to facilitating good flow
of information
between internal elements
only.
Information
must be shared
with suppliers and
customers as well.
8.4
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Systems ~n~ Practice Online – Unit Eight – Theory to Practice
Unit Eight
Theory to Practice
If you manage or own a restaurant, you need to have the right information sent to the
food or drink suppliers as well as know when the food and drinks will be delivered and
if they happen to be out of certain items. The question then becomes:
How can BC Company improve the flow of information to and from the suppliers?
Similarly, sufficient flow of information to and from your client base is another critical
element of effective communication. In this case, the research question would be:
How can BC Company improve the flow ofW
information to and from our customers?
Consider not only external communications,I but also the costly face-to-face meetings
that take place almost daily within the organization.
This can also be expanded to
L
include direct meetings with other stakeholders
S outside the organization. With the
increasingly effective means for electronic communications, the organization will also
O
be charged with developing ways to reduce the cost of such daily, weekly or monthly
N
meetings.
,
Your Access to Information
as a Factor
J
Consider your specific role within the organization before prioritizing the final list
A
of opportunities or questions and selecting a single one. For example, your analyM
sis may have uncovered a major problem in the flow of information from the comI
pany’s main overseas supplier creating problems
for several divisions including
E affects your own ability to perform, it
your own. Although such a problem directly
also involves multiple layers of management above and beyond the purchasing
department and/or specific agents. As a frontline
supervisor, your ability to influ5
ence the outcome or resolution of such challenge will undoubtedly be limited by
0
your distance and lack of authority to negotiate with such supplier. You may vol5
unteer to share pertinent information with those who are
in better position to resolve this issue but1you and the
B to
organization would benefit more if you chose
focus on improving the flow of information
Ubetween
your department and others within the factory; or,
improving the flow of information between management and the employees you supervise. The
bottom line here is that your role directly
affects your ability to access information and
needed data as well as the needed authority to
implement any recommendations.
8.5
Systems ~n~ Practice Online – Unit Eight – Theory to Practice
Unit Eight
Theory to Practice
#2. Layout or Structure
Organizational Structure is the next category to explore. Either physical layout or governing relationships offer significant opportunities for improving organizational performance. Effective structures focus on proper
alignment of organizational components to
better support the efficient completion of
needed work activities. Beyond major
CEO
restructuring of organizational components W
or governing relations, physical layout oftenI Marketing
Finance
offers a more attainable means to improving
Production
Human Resources
organizational performance. For example, L Sales
Recruiting
Payroll Dept
Front line supervisor
there may be good potential to improve effi- S
Marketing Public Relations
General Manager
Advertising
ciency by changing the layout in your office,O
2nd shift manager
factory floor, or other work venues.
Effective Alignment
N
,
The central focus here must be on effective alignment. In some cases, simple realignment
of office furniture or production machinery can enhance workflow and improve efficiency.
J
Suppose a new project increase the needed interaction between several employees who
are located on different floors or in separateA
buildings. Small steps between offices can
quickly add up and slow the flow of information
M between various team members.
Realigning the physical layout of some offices or creating a matrix layout that can better
I
facilitate flow of information or execution of steps can increase overall effectiveness and
E
improve overall productivity. If so, an appropriate
question may be phrased as:
How can your company realign office layout to improve workflow?
5
0
Workflow may not be a problem in your organization;
accessibility may be the problem.
What if there is a situation where layout impeded
the
accessibility of the worker to inter5
act with the rest of the office?
1
B consider traffic flow. Are there objects
In considering effective alignment we must also
such as tables or machinery that limit the flow
U of traffic within the office? Would it be
beneficial to change the layout to improve traffic flow for workers as well as potential customers or stakeholders to easily maneuver?
Accessibility to needed equipment may be an issue that many coworkers do not even
realize is a problem since things have “always been that way.” Maybe it is a copier or fax,
used by most of the staff that has always been in the same location. In its current position it limits accessibility and reduces the efficiency of the rest of the workers. It may not
be that big of a drain on a daily basis, but if all of the wasted time going back and forth
for all employees over weeks or months is considered, then hours start to add up.
8.6
Systems ~n~ Practice Online – Unit Eight – Theory to Practice
Unit Eight
Theory to Practice
While efficiency is important, it is
not the only concern of organizational performance; image is
another. Appearance to the customers and stakeholders can
have a direct influence on the revenue stream. Adding an attractive
picture behind a receptionist can
directly impact the impression of
the first time customer in an
office. If such an opportunity
exists, then the research question
may become:
Small Changes/Significant Savings
In one specific case, a manager studied
the possibility of rearranging the location
of a fax machine and adding multiple
machines to reduce wasted time. The plan
eventually led to an $86,000 reduction in
overhead
expenses for the company.
W
Seemingly a small change led to signifiI
cant savings of time and money for the
L
company.
S
O
How can BC Company realign to improve appearance or image?
N
, to change the physical structure of the
The previous scenarios offer examples of how
organization to improve efficiencies. Once again, specific organizational needs differ
and so will the research question depending on the overall assessment. The idea is to
J
examine the current structure in search of a more effective alignment to enhance work
A
flow, traffic flow, appearance, image, or accessibility.
#3. Work Processes
M
I
E
It is very important to remember that the system of any organization is made up of work
processes. The efficiency of those processes is determined by the set goals or desired
5
outcomes. Differing goals such as increased revenues, higher quality, or faster service
require different processes or processes with0a different sequence of steps. The idea is
to examine the current processes to see which
5 may be a candidate for improvement.
1
Simply defined, a process is a sequence of steps. An
B
efficient work process is one where all the needed
steps are deliberately aligned and specifically
U
sequenced to achieve the desired objective while
utilizing the least amount of resources possible.
Adapting work processes to gain efficiency is
another opportunity. Earlier in the course, you
identified a single process and traced its steps. Then
you were asked to analyze it to determine what steps could
be added, modified, combined, or deleted in an attempt to add
efficiency to the process.
8.7
Systems ~n~ Practice Online – Unit Eight – Theory to Practice
Unit Eight
Theory to Practice
Saving time is essential to an efficient work process. If you wanted to look at a specific
process in terms of saving time, it could be that there is an unnecessary step in the
process that adds time without adding equal value. Eliminating that step is sure to
reduce time and improve efficiency.
Efficient Work Processes
A process may involve two departments and saving overall processing time may involve
W
reallocating a couple of steps from one department
to another or simply reversing the
order of steps.
I
L
While many organizations are aware that desired outcome or set objective directly
S
affect the design of a particular work process, departmental objectives are often
O
changed without modifying the work processes. For example, if the initial training
N orientation, then more than likely, new
process is designed to serve the goal of faster
employees are rushed through a quick tour ,of work stations and a brief description of
their roles in their respective departments. After years of quick orientations, management realizes that the turnover rate among J
new employees is directly related to the
inadequate initial training and is costing the company more money in the long run.
A
M
The goal then shifts to a higher quality orientation for all new employees. The shifting
I
of goals from reducing cost to improving retention
requires the orientation process to
E logical to extend training time or improve
be redesigned. In this case, it would be more
the quality of instructions even if it means additional cost.
5
The processes are
dictated by the
end objective.
If the objective
changes, the
processes need to
be re-evaluated.
8.8
In the marketing department, the scenario may be that
0
the marketing process needs to be redesigned to set clear5
er expectations for customers, potentially resulting in
more satisfied 1
customers and increased revenue or simply
B
adding more funds to the marketing budget. Here, the
simple point that
U is often missed is that with any shift in
the organizational direction or change in departmental
objectives, processes must be examined and modified to
produce the desired outcome; otherwise, shifting the goals
alone is unlikely to produce the desired outcome if the
process stays the same.
Systems ~n~ Practice Online – Unit Eight – Theory to Practice
Unit Eight
Theory to Practice
#4. Organizational Productivity: OP=R+T+E
The fourth category of potential opportunities is organizational productivity. As you
may recall, the formula for maximizing organizational performance suggests that proper management of resources, technology, and effergy may be the key for optimum
organizational productivity
W of raw materials, IT, equipment, or
All organizations require some input in the form
general supplies. Such resources come fromI various sources. A key question to consider is whether the company can find an alternative
source for materials that could be
L
cheaper or more reliable. The actual goal (answer) here would be to find a supplier who
S
offers faster delivery or more reliable service.
O
Resources (Raw Material) N
, focuses on the opportunity to pool difA commonly successful topic
ferent branches of the same company together to increase buying
power therefore reducing overall
costs on raw materials and supJ
plies. If there is a similar opportunity within your company, it would
A
be worth exploring.
M
I
Technology (IT)
E
The second element directly affecting organizational
productivity is Technology. What
current technology can be upgraded to improve productivity? Specifically, is there a
newer version of software that can perform the
5 task better or faster with greater accuracy? Or has the company updated the software without
0
upgrading the hardware? If so, the full impact of the updated
5
software may not be fulfilled without newer, faster, more capa1
ble computers.
B
Obviously, technology involves more than software
or hardware.
U
As an example, a manager researched the opportunity of using twoway radio communication between the warehouse employees and
the office, cutting the response time and maintaining production
schedules while cutting back on shutdowns.
8.9
Systems ~n~ Practice Online – Unit Eight – Theory to Practice
Unit Eight
Theory to Practice
Effergy (efficient use of effort and energy)
The third element impacting organizational productivity is
Effergy. Effergy is the combination of human effort and raw
energy. The clearest example of how such a concept manifests
itself lies in automating processes traditionally completed by
human effort. For example, the vending machine provides customers with cans or bottles of their favorite drinks 24/7 and
W of a store that may
often faster than a clerk behind the counter
not be open 24/7. Here a machine automated
a work process
I
that previously required human effort. L
S
Another example is the newer automated garbage truck that is equipped with an
O
electronic metal arm to pick up the garbage cans. Here, we see a process dreaded by
most who performed it and is difficult to N
staff by those who managed it. The new
, or more men who chased the truck from
mechanized arms reduced the need for two
corner to corner. Another historical example is the logging industry where automation multiplied its production many folds Jwith the utilization of chainsaws and
heavy tree logging machinery to replace axes and saws.
A
M
In the case where such an opportunity is identified and the effectiveness can be
I
proven; it is almost a guaranteed recommendation
to be implemented. Keep in
E and require significant insight to find,
mind, that while such opportunities are rare
such opportunities can elevate someone’s career faster than any other.
5
Another possible consideration here is outsourcing where specialization offers greater
0
potential for efficiency. For example, there are many firms that specialize in cleaning
5
services that range from cleaning offices to heavy industrial equipment. Based on
1 exist for such considerations? If so, a
your assessment, do potential opportunities
B
good research question can be: would outsourcing
cleaning services or employing a
professional answering service that provides
a
live
voice
24/7 for clients without
U
having to triple administrative staff provide greater reliability and improved efficiency and savings?
Outsourcing to a company that specializes
in your need is an example of effergy.
8.10
Systems ~n~ Practice Online
Unit Eight
Theory to Practice
Keep in mind that the primary goal for this overall assessment is to identify attainable research (improvement) opportunities. Even though each of the three elements:
resources, technology, and effergy offer viable opportunities to improve organizational productivity, it is unlikely that an assessment will yield attainable opportunities
in all three areas. The list of questions may pertain to specific situations and an
assessment of the scope and attainability of each is necessary. Below are some poss …
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