Leavitt’s Diamond is a Plan or structure for understanding the connection between the key factors in an organization, and building an integrated change strategy.
Leavitt’s Diamond is also a model apply that to and used for change management.
So, It gave insight into a company’s critical success factors and develops in the early 1970s by the American professor and organizational psychologist Harold Leavitt.
Also, As per Leavitt Diamond Model, the success factors requires to accomplish change are Structure, Tasks, People, and Technology.
So, In the model, these four factors are places in a square shape and interconnect, creating a diamond shape.
Also, This is what the model owes its name to. So, Other comparable business models shape like diamonds, the best of which are those by Michael Porter and Edward Lawler III.
Whats in it-
What is Leavitt’s Diamond
Each organizational system comprises four main components: people, work, structure, and technology.
So, It is the interaction between these four components that determine the fate of an organization.
Also, This tool allows you to work through the effects of the proposed change on the interrelated elements of functions, people, structure, and technology.
Change in People
The people are the employees of the organization. When using this approach, you don’t just look at employees like accountants, receptionists, managers, etc.
Instead, you also see their skills, competencies, knowledge, and productivity. Also, Now let us take a look at how this component has to modify the change in the other three components.
Hence, if you’re changing your manpower, you’ll need to modify the tasks or goals to make the right and optimum use of their skills and knowledge.
Or so if you’re hiring more skilled and more qualified people, you won’t need the same kind of supervision as is necessary for less experienced and less qualified employees.
Remember, if you are hiring computer literate employees, you cannot ask them to work on typewriters. Similarly, if you’re hiring engineers instead of mechanics, the old tools and equipment may not be sufficient.
So, to take full advantage of your workforce, you’ll need to change the technology under the change in the knowledge, qualifications, and skills of your workforce.
Although if you want your employees to handle additional tasks, you may have to provide them with technology that helps them in this direction.
For example, if you wish to your programmer to get clients to do field visits, you have to equip them with a laptop and a wireless Internet data-card to help them do the added work.
Change in Tasks
If you plan to change the tasks, you will have to educate and train the employees to make them familiar with the new methods.
Let’s say you decide to make your company more customer-centric. For this, you’ll need to set up a new customer support department, or you may need to have more people out in the field.
If you want to use your customer support center for order processing as well, you will need to replace your existing software with a new application that has customer service and order processing integrated into one.
If you want to cut the staff of a particular department, you have to automate some processes, to maintain the same level of production.
Change in Structure
Employees would need help to learn about their new job duties and responsibilities.
Tasks: This component can include goals in addition to functions. Thus this component will involve looking at two things – the first is how things are happening, and the second is what you want to achieve.
What happens if an organization decides to shift from a hierarchical pyramid setup to a flat organization? Can it continue with the change without altering the 5 tasks or processes? No, and the same is true for goals. If you’re merging two departments into one or splitting a department into two, you cannot continue with the same goals.
Change in Technology
This may even involve hiring new skilled employees to handle the latest technology.
Shifting to a newer technology would require making changes to the way things are done.
Structure: not only the hierarchical structure, but also the relationships included, but also communication patterns and coordination between different management levels, departments, and employees. It will also cover how rights and responsibilities flow within the organization.
Computers, equipment, LAN lines, barcode readers, software applications, etc. are all counted under technology. Like all other components of Levitt’s diamonds, technology also has to be replaced when another component is modified.
For example, inquiries through a web portal can be automatically accepts by email and direct to the appropriate person for follow-up. Investigations may not be included in the original process due to cost.
Business processes can also be better “informed” through the CRM system. For example, the people involved in the tasks that make up a process may need information available at the click of a mouse.
Requisite People Skills
Employees interacting with the new CRM system must be well trained and supported – especially in the early stages. They need to be confident in the order, and their confidence depends as much on their training as on the system itself.
Ideally, have at least one “super-user”, who can support the other users and deal with simple “how-to” questions before they turn into “This system doesn’t work.”
A new CRM system often requires revamping the organizational structure to benefit from technology.
New jobs may be created, and old ones will be over. Changes may be needed in interdepartmental coordination or communications. There may need to be changed in pay and reward systems, billing, procurement, or internal costing.
Remember, if not managed, some reciprocal adaptations to the new technology can occur anyway, and the CRM system may be disabled. The smart choice is to manage the entire change with under.
Leavitt’s Diamond is an interactive approach, in which the four factors mentioned above are mutually coherent and influence one another.
Leavitt emphasizes that whenever a factor changes and affects the organization, the other three elements will also change. Because of this direct effect, they will need to be adjusted to process the replacement.
This means the Leavitt’s Diamond model is an integrated approach, and it is often used for managing changes within organizations.
It is aimed at behavior within organizations, the dynamics of organizational change, and the interaction of the four mutually coherent components that apply in each organization.
The Leavitt’s Diamond may be useful in case of, for example, the introduction of new systems or a change of organizational structure.
Ans. Leavitt’s Diamond is a model that can be applied to and used for change management.
It gives insight into a company’s critical success factors by the American professor and organizational psychologist Harold Leavitt.
As per Leavitt Diamond Model, the success factors required to accomplish change are Structure, Tasks, People, and Technology.
In the model, these four factors are placed in a square shape and interconnected, thus creating a diamond shape.
Leavitt’s Diamond model is a perfect one for early analysis. It gives you the initial way to understand the changes you want to implement in your organization.
This model is very popular in IT and technology-based companies. These companies used to apply this model to their business.
Leavitt’s diamond model does not take the external forces into account, which also impacts the change management.
It does not apply in all the organizations and does not address issues of all the businesses. Its applicability is limited, and this is only best for IT and technology-based companies.
This is best for analyzing and does not show the path for organizational change.
Ans. Four components
Levitt’s Diamond proposes that each organizational system is made up of four main components: people, work, structure, and technology. It is the interaction between these four components that determine the fate of an organization.
Ans. Traditional organizational structures fall into four common types – functional, segmentation, matrix, and flat – but with the rise of the digital market, decentralized, team-based organ structures disrupt older business models.
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