ORGANIZATION

ANALYSIS AND
DESIGN (OAD)
 ORGANIZATION ANALYSIS AND
DESIGN (OAD)
• OAD includes careful examination of detail staffing levels and hierarchy,
spans of control, and repetition of roles in the context of the businesses
strategy. This implies that all work is not created equal – there are some tasks
that are more strategically important to a company than others.
• Even if a company creates an elegant and elaborate organization design but
fails to recruit the right composition of talent and skill; it would be
meaningless
 Organization Analysis and Design (OAD)
• Undertaken in the context of changing situations and conditions. Each study
is done with specific ojectives such as:
1. To develop a structure by which the objectives and policies of the company
can best be realized and the supporting plans implemented
2. To develop structure that is responsive to environmental conditions
(competition, regulations, and technology)
3. To develop a structure that clearly delineates duties, responsibilities, and
working relationships of people
 STAGES OF
DEVELOPMENT OF
ORGANIZATIONS
 Author Renee O’Farrel identifies three stages:

• CHAOS
The chaos stage of organizational development has rightly been called
“firefighting” stage because everyone always seems to be putting out fires.
• STABILITY
The firm stabilizes its operations, goals, and direction become more consistent.
Policies and procedures become more defined and a structure starts to
emerge.
 Author Renee O’Farrel identifies three stages:

• HIGH PERFORMANCE
Once things start moving smoothly employees take ownership for their
successes and failures, and performance is consistent. Their focus shifts from
stability to performance.
From Stability to
High
Performance

From Chaos to
Stability
 STAGE III: High Performance (Outstanding,
Sustainable Results)
• Clear statement of mission that creates a sense of esprit de corp
• Well - defined values which result in distinctive culture. Respect for people
that is deeply ingrained is part of the culture.
• Good communication
• High and active involvement and empowerment of people. Design (work
flow, structure, systems) support mission and values.
 STAGE II: STABILITY (Back to the Basics)

• Clarity goals and direction

• Consistency in priorities
• Well – defined policies and responsibilities (technical and personnel)
• Agreement on roles and responsibilities
• Basic management processes rewarded and practiced (goal – setting,
performance reviews, etc.)
 STAGE I: CHAOS (Fire- Fighting Mentality )

• Crisis /Short term focus

• Lack of clear direction and goals
• Shifting priorities
• Unclear policies and procedures