READ THE LECTURE MATERIAL BELOW ALONG WITH ALL OF THE LINKS IN BLUE AND THEN ANSWER THE QUESTION:
Group A – The Peter Principle
• What are your thoughts about the Peter Principle? Do you agree/disagree with the theory and why?
Lecture
Organizational Development
Let’s start by talking about a concept called Organizational Entropy. In life, all living things are in one of two stages – growing or dying – and we have to think about businesses in the same way. Left to progress on their own, organizations go from order to disorder (Zipp, n.d.) There is an adage that applies, “resting on your laurels” – laurels being your successes in the past. How can we combat the “death” of our business?
Businesses have to continue to change in order to survive in the increasingly global and high tech economy. Organizational Development aka Organizational Behavior and Change Management is the part of the business to focus on this and the function is often within HR.
What is Organizational Culture?
According to SHRM, the culture of a business involves the norms and beliefs, how to behave. Leaders establish the culture then communicate it and reinforce it with all employees to shape their behaviors and build similar perceptions.
Strong, positive cultures are part of the most successful companies, contributing to highly engaged employees who go above and beyond to fulfill the vision and mission (such as helping customers or implementing process improvements). As imagined, companies with weak and/or negative cultures have higher turnover, poorer customer satisfaction, disengaged employees, and lower profits.
Building a Culture
According to AugmentHR writer Bruce Powell, there are 6 points to remember if the company wants to create a positive culture.
1. Define the culture first with a vision, mission and values that match what you want to do.
2. Management needs to lead by example. There is no sense in having values that the leaders, themselves, do not live by.
3. This one is particularly important in HR – hire people who are a ‘fit’ for the culture. Naysayers and employees who fight the norms does not add support to what the company is building even if the person performs the tasks of the job well.
4. Reward people for demonstrating the company’s values in their day-to-day work. Behaviors such as Putting the Customer First or Always Doing the Right Thing (ethics, integrity) are found on some performance appraisals and higher scores factor into raises. HR also encourages simple acknowledgement privately or in group settings and small perks.
5. Last, but not least, reinforce the culture. Coupled with rewarding it, make sure communication, events, processes, and the like are aligned with values and the mission.
Maintaining a Culture / Change Management
Should all change be managed?
Organizational Development professionals believe it should be and offer the 10 Principles of Change as guidance. Use this in the discussion.
Types of Change
Among the biggest types of change in an organization is when work is shifted and jobs eliminated, called Outsourcing and Downsizing.
Downsizing
Like the financial crisis in 2007-2009, the country/the world is experiencing a fairly unexpected and severe economic downturns. The inevitable result is often downsizing if the company hopes to survive. Downsizing also occurs without a major country or world crisis. It can be as simple as a company losing a large contract or losing customers due to poor service or products. How can leaders manage change during downsizing and are there any alternatives to downsizing? Read the following articles and use the information to respond to the topic in this week’s discussion.
What Happens During Downsizing:How Organizations can Manage the Experience
Downsizing Alternatives
RIF Avoidance Strategies When Downsizing and Restructuring
Thirteen Alternatives to Downsizing
Outsourcing
Another way companies can manage fluctuating workforce needs is to outsource all or part of the work. The number of people and expertise level required of HR changes as headcount and/or geography changes, so why not outsource HR too?
Read more about outsourcing individual HR functions or the entire department in the following articles. Use this information in addition to your own research and experience to contribute to the discussion.
Should you Hire or Outsource HR
Is It Time to Outsource HR
Professional Employer Organizations (PEOs)
Management – The Peter Principle
Where does management fit into the equation of organizational development and change management. With growth or decline, companies look to hire more managers and some of those positions are filled internally through promotions.
But how many of the individuals who are promoted turn out to be good managers? Do they hang on to the “we’ve always done it this way” or are they risk takers? Unfortunately, some people simply “max out” on their potential at that point in their life. They have not fully developed effective management skills and they may not even want to.
In 1969, Laurence Peters coined the term ‘the Peter Principle’ in his presentation of satirical research suggesting managers continue to be promoted until they reach a level where they are incompetent. Read about this concept in the following article by the Harvard Business Review and reflect on it as you address this topic in the discussion.
Overcoming the Peter Principle
