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COVID-19: Implications For Business

(The Nadler-Tushman Congruence Model)

PREPARED BY: NORAINI BINTI ZAKARIA (2018431118)

WHO IS DAVID A. NADLER AND MICHAEL L. TUSHMAN?

David A. Nadler was an American organizational theorist, consultant and business executive, known for his work with Michael L. Tushman on organizational design and organizational architecture.

INTRODUCTION

Michael L. Tushman (born 1947) is an American organizational theorist, management adviser, and Professor of Business Administration at Harvard Business School. He is known for his early work on organizational design with David A.

WHO CREATED IT?

What Is the Congruence Model?

  • Developed in early 1980s by organizational theorist David A. Nadler and Michael L. Tushman.

  • It is based on the principle that a team organization can only succeed when the work, the people who do it, the organizational structure, and the culture all "fit" together.

  • The Nadler-Tushman Congruence Model is a diagnostic tool for organizations that evaluates how well the various elements within these organizations work together.

DIAGRAM

DIAGRAM & INPUTS

INPUTS

ENVIRONMENTS

  • Environment includes all factors outside the organization that have a potential impact on the organization. A thorough analysis requires not only looking at current state, but also making assumptions about the future state.

RESOURCES

  • Resources are all the various assets to which the organization has access, including human resources, capital, information, as well as less tangible resources, such as recognition in the market.

HISTORY

  • The element of history is often overlooked in diagnosing organizations. Nadler and Tushman explicitly list the organization’s history as an input.

  • Explore the history of patterns of employee behavior, policy, the types of people the organization attracts and recruits and how decisions get made in a crisis.

TRANSFORMATION PROCESS

Work

  • start by looking at the critical tasks that underpin your organization's performance, from two perspectives – what work is done, and how it is processed.

  • Consider what skills or knowledge individual tasks require, whether they are mechanical or creative, and how the work flows. Identify approaches that work best – for example, quick, thorough, empathic, analytical, precise, or enthusiastic – and what the stresses and rewards of the work are.

People

  • Look at who interacts to get these tasks done – bosses, peers, and external stakeholders, for example.

  • Identify the skills, knowledge, experience, and education that they possess. Then, explore how they like to be compensated, rewarded and recognized for their work. Also, consider how committed they are to the organization, and what career progression expectations they have.

Structure

  • map your organization's structures, systems and processes. Are there distinct business units or divisions (for example, regional, functional, or product or market specific)? Are there different levels or ranks, or does it have a flat structure? And how distinct or rigid are the reporting lines?

  • Also, consider how standardized work is within organization, and look at the rules, policies, procedures, measures, incentive schemes, and rewards that govern it.

Culture

  • The culture of a company consists of its politics, values, behavior patterns and rules including the unwritten ones. These are examined in light of how well, or how poorly, people support the company's overall goals and fit with other elements.

  • If the formal structure of a company has ceased to be relevant, the informal structure, or culture, often supplants it. Sometimes the culture of a company needs to change in order to improve performance or to adapt to a new business focus. .

Relationships Between the Elements

  • Work and People
  • Work and Structure
  • Structure and People
  • People and Culture
  • Culture and Work
  • Structure and Culture
  • outputs (organizational, group and individual level)

RELATIONSHIPS

Work/people/structure

  • Work and People: is the work being done by the most able and skilled people? Does the work meet individual's needs?

  • Work and Structure: is work done in a well-coordinated manner, given the organizational structure in place? Is that structure sufficient to meet the demands of the work being done?

structure/people/culture

  • Structure and People: does the formal organization structure allow the people to work together effectively? Does it meet people's needs? Are people's perceptions of the formal structure clear or distorted?

  • People and Culture: are the people working within a culture that best suits them? Does the culture make use of people's own resources?

Culture/work/structure

  • Culture and Work: does the culture help or hinder work performance?

  • Structure and Culture: do the culture and the organizational structure complement one another, or do they compete?

Outputs

  • The outputs of an organization are the services and products it provides to generate profitability or, especially in the case of public sector and non-profit organizations, to meet other goals.

  • Additional outputs are also important such as the satisfaction of organization members, the growth and development of the competencies of the organization and its members, and customer satisfaction. These outputs need to be defined and measured as attentively as profitability, return on investment (ROI), or numbers of clients served.

CONCLUSION

  • The Nadler-Tushman Congruence Model is an excellent concept and a way to illustrate how an organization should be considered a living organism.

  • This framework allows to consider the fuller picture of Change and not just the input or output approach.

  • Organizations are effective when the four key components of performance – Work, people, structure, and culture – fit together.

  • The result of these elements working in unison to support and promote high performance is an organization-wide system that functions efficiently and effectively.
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