Case Study – Organization Redesign

Read ”Dr. Gayle Brings Collaboration to CARE” at the beginning of Chapter 4 of your textbook.Read at least two scholarly articles that address organizational redesign generally, or at CARE specifically.Write a paper of approximately 750 words that answers the following questions:
What role will differentiation and integration play in the organizational redesign for CARE?What teams would you recommend creating to facilitate the success of
this redesign? Describe them in terms of their functions, communication
and/or collaboration with other teams, and accountability to other
teams.What changes in decision-making rights do you recommend to
facilitate this redesign, and why? What challenges will this change pose
for the organization?Describe at least one specific job redesign you recommend to
facilitate the organizational redesign. What job dimensions (see Exhibit
4-5 of your textbook) are affected by this job redesign, and how does
it benefit the larger change effort?What evidence of good or poor employee commitment exists currently
in the organization? Describe one specific action that management can
take to ensure employee commitment to the change effort.
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Chapter 4 Organizational Redesign
Diagnosis exposes the current realities of organizational life, with particular attention to the fit between
patterns of employee behavior and the strategic requirements of the firm, to discussion and analysis.
Combined with mutual engagement, diagnosis provides both the motivation for and target of change.
Now, employees can engage in a process of organizational redesign to help shape required new
behaviors. Redesign provides a sense of direction for the change effort.
This chapter will analyze the complexities of design choices made to support change implementation. In
particular, this chapter will:
Define organizational design and differentiate between formal and informal design elements
Explore the main challenges posed by organizational redesign
Appreciate the special design challenges faced by multinational companies
Analyze the requirements for building collaboration in an organization
Discuss the dynamics of changing the design of an organization in order to impact patterns of
behavior
First, we will look at the design challenges faced by the CEO of one of the world’s oldest and largest
humanitarian organizations. As you read this introductory case, ask yourself:
Why was the original, decentralized design of CARE less effective in addressing 21st century issues
than it had been in CARE’s earlier years?
What do you think the challenge will be in promoting collaboration across national units of CARE?
What steps might Dr. Helene Gayle take to promote the improvements she hopes for?
Dr. Gayle Brings Collaboration to CARE
CARE, one of the world’s leading nongovernmental organizations, was created to provide aid to
devastated European countries in the immediate aftermath of World War II. When Dr. Helene Gayle
became CEO in 2006—after working at both the Center for Disease Control and the Bill and Melinda
Gates Foundation—the mission had changed considerably. Under the broadly stated mandate of
“Defending Dignity, Fighting Poverty,” CARE expanded its reach. The organization described its new
mission this way:
CARE is a leading humanitarian organization fighting global poverty. We place special focus on
working alongside poor women because, equipped with the proper resources, women have the power
to help whole families and entire communities escape poverty. Women are at the heart of CARE’s
community-based efforts to improve basic education, prevent the spread of HIV, increase access to
clean water and sanitation, expand economic opportunity and protect natural resources. CARE also
delivers emergency aid to survivors of war and natural disasters, and helps people rebuild their lives.1
Dr. Gayle believed, however, that CARE was better designed to serve its past mission than its future
opportunities.
The organization Dr. Gayle found when she became CEO was designed in a way that maximized the
autonomy of country offices: France, Germany, Italy, and so forth. “The country officers raised most of
their own funds and were used to being on their own,” she explained, “having a lot of autonomy, and
not thinking about the greater whole.”2 The managers in the organization were “comfortable” with that
highly decentralized design, but Gayle believed the approach undermined CARE’s effectiveness. Now,
the organization had to learn how to collaborate across national borders. “To do that,” she said, “we
had to ask, ‘How do we make the whole greater than the sum of its parts?’” The organizational change
would require both improved information sharing across country units and more rigorous measurement
of results to evaluate effectiveness.
One of CARE’s first efforts at cross-country collaboration involved a project called Access Africa. That
microfinance program (making small loans to encourage entrepreneurial efforts in poverty regions) was
a 10-year investment commitment targeting 39 sub-Saharan African countries with a combined
population of 150 million. “In 10 years,” Gayle noted, “we’d like to be able to look back and say, ‘Wow,
this is very different than if we had continued to function as separate country units.’” Still, she could not
deny the challenge of implementing this change.
Organizational Redesign
In order to address the challenges of global poverty, Dr. Helene Gayle needed to encourage
collaboration among formerly independent national units of CARE. To achieve that goal, she addressed
organizational design. Organization design refers to the arrangements, both formal and informal, that an
organization calls upon to help shape employee behavior (see Exhibit 4-1).
Building a Vocabulary of Change
Organization design
the arrangements, both formal and informal, that an organization calls upon in order to shape
employee behavior.
Exhibit 4-1 Design Elements
Formal
Compensation and measurement
Reporting structures
Informal
Defining roles and responsibilities of employees
Defining relationships within the organization and between the organization and external
stakeholders
Formal aspects of design include rewards and performance measurements as well as the reporting
relationships depicted on an organization chart. Informal aspects of design relate to how people
perform the required tasks of the organization and how they collaborate and work with others, both
inside the organization (within their own groups as well as across groups and functions) and outside
(with suppliers and customers, for instance). Informal design addresses questions of focus and
coordination, of where decision-making authority will be located, and the necessary balance between
the requirement for flexibility and the need for control.

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