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Agile Methodology and
Organizational theories in Global
Development Context

An overview

S R V Subrahmaniam

14-Dec-2013
Agenda – Do the Agile Scrum norms and practices have a basis in
Organizational Behaviour theory?

Organization structure

High Performance teams

Organizational culture

Discussion
Slide 2
Key Parameters in defining structure

Work specialization

Departmentalization – grouping of jobs together

Span of Control – number of reportees to manager

Decision making (Centralized or de-centralized)

Formalization – with rules and regulations

Slide 3

Team
formation
Strategy drives the structure

Structural options
Innovation
 Adaptability & Flexibility
 Dynamic nature of tasks
 High uncertainty in Operating environment

 Standard & predictable output
 Accountability
 Stable external environment

Cost Minimization & Tight control
http://www.nwttech.com/wp-content/uploads/sites/15/2013/09/engineering.jpg
Slide 4

http://www.gksenvironmental.co.uk/assets/images/factory_production_line.jpg
Mechanistic Vs Organic structures

Source: http://jrwoodward.net/wp-content/uploads/2008/12/mechanistic-to-organic.png

Slide 5
Mechanistic structure
Decision making by
superiors

Strong department
affinity

Elaborate procedures
and SOPs

Repetitive tasks

Quantitative focus for
productivity
measurement

Low
interdependancies

Stable external environment
Maximum standardization
Increased efficiency
Economies of Scale

Slide 6
Nature of Organic Structures

Learning
Mindset

Differentiated
products and
services

Dominant values Blue
–
Trust, Participation and
commitment

Small scale setups

Reliance on
informal interpersonal
communication

Crossfunctional
teams

Communication
flows in all
directions

Seamless
transfer of
information

Knowledge
spread all
over

Nonroutine
technology

Open and
participative

Outcome
based
measurement

Future
Orientation

Frequent
innovation

Management
through
values &
objectives
Slide 7

Locus of the
work is
around
teams

Horizontal
structures
Decision
making by
teams

High Technology
and skill
obsolescence
Proactive and
opportunistic
Organic Structures – Typical Characteristics

Large network of authority, control, and communication

Problem solving is encouraged by all employees

Employees are more goal oriented with end customer focus

The Digital Workplace; disintermediation = eliminating the middleman.

Speed of Responsiveness to environmental changes or organizational crises or
shifting customer expectations

Slide 8
Moving towards team culture

Workgroups

Teams

 Share Information

 Collective performance

 Neutral (sometimes negative)

 Positive

 Individual

 Individual and mutual

 Random and varied

 Complementary

Goal

Synergy

Accountability

Skills

Source: Comparing Work groups and Work Teams, Page 303, Organizational Behaviour, Robbins, Judge and Vohra, Pearson publishers
Slide 9
http://thecollaboratory.wdfiles.com/local--files/2013-spring-sociology/social-groups.jpg
Agenda

Organization structure

High Performance teams

Organizational culture

Discussion
Slide 11
Self-Managed work teams

Overview
Teams are typically 10-15 members in number, performing highly related or inter-dependent functions
taking responsibility for the outcomes

 Take-over the tasks done, previously by the
supervisors – planning and scheduling work,
task allocation, operational decision making &
problem resolution
 Higher levels of job satisfaction
 Peer evaluation

 Possible conflicts and power struggles
 May have high turn-over rates

CON

PRO

Source: Self Managed work teams, Page 304, Organizational Behaviour, Robbins, Judge and Vohra, Pearson publishers,
Slide 12
Team effectiveness

Skills

Task allocation

Diversity

Size ( 5 to 9
members)

Common goal

Composition

Process
Conflict Management

Abilities

Social loafing

Context

Overall structure

Performance and
reward systems

Reference: Team Effectiveness Model, Page 306, Organizational Behaviour, Robbins, Judge and Vohra, Pearson publishers
Slide 13
5 Characteristics of Effective Teams
Ref: Prof. Karl Smith, Professor of Civil Engineering, University of Minnesota, in his book "Teamwork and Project Management"

Positive
Interdependence

Individual and
Group
Accountability

Promotive
Interaction

Teamwork Skills

Group
Processing

 "The team focuses on a common goal or single product“
 In Scrum, the Sprint objective and ultimately the Product backlog

 "Each person takes responsibility for both her or his own work and the overall
work of the team“
 Individual ownership of tasks and scrum team ownership of Sprint Objective
 "The members do real work, usually face to face"
 Co-location at Scrum Pit

 "Each member has the skills for and practices effective communication
(especially careful listening), decision making, problem solving, conflict
management, and leadership“
 Core trait of the Scrum team

 "The team periodically reflects on how well the team is working, celebrates the
things that are going well, and corrects the things that aren't"
 Sprint Retrospective
Slide 14

Reference: http://www.bobtuse.com/2009/01/5-characteristics-of-effective-
Implications for Scrum teams

Full-time roles



Co-location



High Cohesion



Less coupling


Slide 15
Re-skilling and competency building

Training areas
Technical Expertise
-

Domain
Technology
Test Automation
Configuration
Management
- Environment
Management

Tooling

Problem solving

- Implementation of
ALM tools
- Tools for
configuration
management,
static code
analysis, white
box testing, test
automation etc.,

- Project planning
and scheduling
- Problem
identification and
evaluation of
alternatives
- Work scoping,
constraint and risk
management

Building Technical Competence
Slide 16

Inter-personal skills
- Communication
and Presentation
skills
- Team work
- Negotiation skills

Building self-organized teams
Reworking performance evaluation criteria

Innovation
orientation
Task
accomplishment
Joint
Responsibility

Technical
expertise

Mix of group performance and individual performance
Slide 17
Social Loafing

- Social loafing is a widely
researched phenomenon that
suggests people exert less
effort to achieve a goal when
they work in a group than when
they work alone.
- Masking individual nonperformance under superior
group performance
- This can be undermined by
making team members
individually and jointly
responsible for team goals

http://www.all-about-psychology.com/social-loafing.html

Slide 18
Agenda

Organization structure

High Performance teams

Organizational culture

Discussion
Slide 19
Dimensions of organizational culture

Innovation and risk
taking

Attention to detail

Growth orientation

Culture
Outcome Orientation

People Orientation

Team Orientation

Agile
related

Neutral
Slide 20
The Last word..
from Scrumalliance

Source: The State of Scrum: Benchmarks and Guidelines, Scrumalliance
Slide 21
Agenda

Organization structure

High Performance teams

Organizational culture

Discussion
Slide 22
S R V Subrahmaniam, PMP, ACP, CSM
Siemens Limited
in.linkedin.com/in/subrahmaniamsrv/

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Agile Transformation - Taking cue from Organizational theories

  • 1. Agile Methodology and Organizational theories in Global Development Context An overview S R V Subrahmaniam 14-Dec-2013
  • 2. Agenda – Do the Agile Scrum norms and practices have a basis in Organizational Behaviour theory? Organization structure High Performance teams Organizational culture Discussion Slide 2
  • 3. Key Parameters in defining structure Work specialization Departmentalization – grouping of jobs together Span of Control – number of reportees to manager Decision making (Centralized or de-centralized) Formalization – with rules and regulations Slide 3 Team formation
  • 4. Strategy drives the structure Structural options Innovation  Adaptability & Flexibility  Dynamic nature of tasks  High uncertainty in Operating environment  Standard & predictable output  Accountability  Stable external environment Cost Minimization & Tight control http://www.nwttech.com/wp-content/uploads/sites/15/2013/09/engineering.jpg Slide 4 http://www.gksenvironmental.co.uk/assets/images/factory_production_line.jpg
  • 5. Mechanistic Vs Organic structures Source: http://jrwoodward.net/wp-content/uploads/2008/12/mechanistic-to-organic.png Slide 5
  • 6. Mechanistic structure Decision making by superiors Strong department affinity Elaborate procedures and SOPs Repetitive tasks Quantitative focus for productivity measurement Low interdependancies Stable external environment Maximum standardization Increased efficiency Economies of Scale Slide 6
  • 7. Nature of Organic Structures Learning Mindset Differentiated products and services Dominant values Blue – Trust, Participation and commitment Small scale setups Reliance on informal interpersonal communication Crossfunctional teams Communication flows in all directions Seamless transfer of information Knowledge spread all over Nonroutine technology Open and participative Outcome based measurement Future Orientation Frequent innovation Management through values & objectives Slide 7 Locus of the work is around teams Horizontal structures Decision making by teams High Technology and skill obsolescence Proactive and opportunistic
  • 8. Organic Structures – Typical Characteristics Large network of authority, control, and communication Problem solving is encouraged by all employees Employees are more goal oriented with end customer focus The Digital Workplace; disintermediation = eliminating the middleman. Speed of Responsiveness to environmental changes or organizational crises or shifting customer expectations Slide 8
  • 9. Moving towards team culture Workgroups Teams  Share Information  Collective performance  Neutral (sometimes negative)  Positive  Individual  Individual and mutual  Random and varied  Complementary Goal Synergy Accountability Skills Source: Comparing Work groups and Work Teams, Page 303, Organizational Behaviour, Robbins, Judge and Vohra, Pearson publishers Slide 9
  • 11. Agenda Organization structure High Performance teams Organizational culture Discussion Slide 11
  • 12. Self-Managed work teams Overview Teams are typically 10-15 members in number, performing highly related or inter-dependent functions taking responsibility for the outcomes  Take-over the tasks done, previously by the supervisors – planning and scheduling work, task allocation, operational decision making & problem resolution  Higher levels of job satisfaction  Peer evaluation  Possible conflicts and power struggles  May have high turn-over rates CON PRO Source: Self Managed work teams, Page 304, Organizational Behaviour, Robbins, Judge and Vohra, Pearson publishers, Slide 12
  • 13. Team effectiveness Skills Task allocation Diversity Size ( 5 to 9 members) Common goal Composition Process Conflict Management Abilities Social loafing Context Overall structure Performance and reward systems Reference: Team Effectiveness Model, Page 306, Organizational Behaviour, Robbins, Judge and Vohra, Pearson publishers Slide 13
  • 14. 5 Characteristics of Effective Teams Ref: Prof. Karl Smith, Professor of Civil Engineering, University of Minnesota, in his book "Teamwork and Project Management" Positive Interdependence Individual and Group Accountability Promotive Interaction Teamwork Skills Group Processing  "The team focuses on a common goal or single product“  In Scrum, the Sprint objective and ultimately the Product backlog  "Each person takes responsibility for both her or his own work and the overall work of the team“  Individual ownership of tasks and scrum team ownership of Sprint Objective  "The members do real work, usually face to face"  Co-location at Scrum Pit  "Each member has the skills for and practices effective communication (especially careful listening), decision making, problem solving, conflict management, and leadership“  Core trait of the Scrum team  "The team periodically reflects on how well the team is working, celebrates the things that are going well, and corrects the things that aren't"  Sprint Retrospective Slide 14 Reference: http://www.bobtuse.com/2009/01/5-characteristics-of-effective-
  • 15. Implications for Scrum teams Full-time roles  Co-location  High Cohesion  Less coupling  Slide 15
  • 16. Re-skilling and competency building Training areas Technical Expertise - Domain Technology Test Automation Configuration Management - Environment Management Tooling Problem solving - Implementation of ALM tools - Tools for configuration management, static code analysis, white box testing, test automation etc., - Project planning and scheduling - Problem identification and evaluation of alternatives - Work scoping, constraint and risk management Building Technical Competence Slide 16 Inter-personal skills - Communication and Presentation skills - Team work - Negotiation skills Building self-organized teams
  • 17. Reworking performance evaluation criteria Innovation orientation Task accomplishment Joint Responsibility Technical expertise Mix of group performance and individual performance Slide 17
  • 18. Social Loafing - Social loafing is a widely researched phenomenon that suggests people exert less effort to achieve a goal when they work in a group than when they work alone. - Masking individual nonperformance under superior group performance - This can be undermined by making team members individually and jointly responsible for team goals http://www.all-about-psychology.com/social-loafing.html Slide 18
  • 19. Agenda Organization structure High Performance teams Organizational culture Discussion Slide 19
  • 20. Dimensions of organizational culture Innovation and risk taking Attention to detail Growth orientation Culture Outcome Orientation People Orientation Team Orientation Agile related Neutral Slide 20
  • 21. The Last word.. from Scrumalliance Source: The State of Scrum: Benchmarks and Guidelines, Scrumalliance Slide 21
  • 22. Agenda Organization structure High Performance teams Organizational culture Discussion Slide 22
  • 23. S R V Subrahmaniam, PMP, ACP, CSM Siemens Limited in.linkedin.com/in/subrahmaniamsrv/