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Diagnosing Change

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Diagnosing the Change

Dr. Jay Galbraith is an established expert and consultant in organizational design. What is interesting is that Galbraith identifies Information Technology as having an integral role in what shapes an organization, as well its design. In equating how Blockbuster and Netflix each chose to respond to the emerging presence of the Internet, the relevant factors Galbraith associated with I.T. here are:
Buyer Power – buyers are becoming more aware and demanding
Variety/Solutions – buyers aware that they are in control want more options/better solutions
Speed – buyers expect this variety of options/solutions as quickly as possible
Change – the business landscape is rapidly evolving, as are the demand for variety/solutions, as well as an increase in the pressure to bring them faster These factors once realized, can be used in conjunction with Galbraith’s Star model to evaluate an organization, provide a structure for organizational form, this from which a company can align its design. According to Galbraith Management Consultants, the Star Model framework “…consists of a series of design policies that are controllable by management and can influence employee behavior.”
The basic premise of the Star Model is that there are five points, each being an organizational design category. These groupings are Strategy, Structure, Processes, Rewards, and People. Following the design of the star, all five classifications must be aligned to correctly shape the star. Galbraith contends that “…for an organization to be effective, all the policies must be aligned and interacting harmoniously with one another.” This in return projects a clear and unfailing direction, as well provides meaning to the company’s employees.

The following will be a brief description of each category, as well as how they each were relative to

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