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Leading & Managing Holistically >Part 4 >Chapter 12 >Step 1: Organization Development

[Solution] Step 1: Organization Development

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Author: Emily Carter

Although change can affect any aspect of an organization, most change interventions involve organization structure and design, technology and operations, or people. Significant changes to business processes can affect all these areas and others.

The Three Main Areas of Change

Following are the three main areas where change occurs in organizations, as well as the elements in those areas most commonly affected:

Organization Structure and Design

  • Job design
  • Departmentalization
  • Reporting relationships
  • Authority distribution
  • Coordination mechanisms
  • Line-staff structure
  • Overall design
  • Culture
  • Human resource management

Technology and Operations

  • Information technology
  • Equipment
  • Work processes
  • Work sequences
  • Control systems
  • Enterprise resource planning (ERP)

People

  • Abilities and skills
  • Performance
  • Perceptions
  • Expectations
  • Attitudes
  • Values

The table lists several aspects of organizations that commonly undergo change. Identify the broad organizational area of each.

Information technology

Job design

View Explanation

One aspect of technology and operations that is commonly involved in change is information technology. Here is a more complete list:

  • Information technology
  • Equipment
  • Work processes
  • Work sequences
  • Control systems
  • Enterprise resource planning (ERP)

One aspect of organization structure and design that is commonly involved in change is job design. Here is a more complete list:

  • Job design
  • Departmentalization
  • Reporting relationships
  • Authority distribution
  • Coordination mechanisms
  • Line-staff structure
  • Overall design
  • Culture
  • Human resource management

Select the correct response to the following question.

What is enterprise resource planning (ERP)?

  • A large-scale information system for coordinating activities across the enterprise
  • A logistics system for sourcing materials and supplies from outside vendors
  • An organization development approach for helping managers to improve planning and setting goals

View Explanation

ERP is a large-scale information system for coordinating activities across the enterprise, as well as with suppliers and customers. It is especially useful for managing processes that cut across product lines, departments, and geographic locations, such as materials management, production planning, order management, and financial reporting.

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