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Module - IModule - I

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What is an Organization?What is an Organization?

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DefinitionDefinition

Importance of OrganizationsImportance of Organizations Bring together resources to achieve desired goalsBring together resources to achieve desired goals

and outcomes;and outcomes; Produce goods and services efficiently;Produce goods and services efficiently; Facilitate innovation;Facilitate innovation; Use modern manufacturing and informationUse modern manufacturing and information

technologies;technologies;

(contd)(contd)

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Adapt to and influence a changing environment; Adapt to and influence a changing environment;

Create value for owners, customers and employees;Create value for owners, customers and employees;

Accommodate ongoing challenges of diversity, ethics, Accommodate ongoing challenges of diversity, ethics,and the motivation & coordination of employees;and the motivation & coordination of employees;

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Perspectives on OrganizationsPerspectives on Organizations

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Open SystemsOpen Systems

Organizational ConfigurationOrganizational Configuration Technical CoreTechnical Core Technical SupportTechnical Support Administrative Support Administrative Support

Top ManagementTop Management Middle ManagementMiddle Management

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An Open System and ItsAn Open System and ItsSubsystemsSubsystems

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TransformationTransformation

ProcessProcess

Environment

Raw MaterialsRaw MaterialsPeoplePeopleInformationInformationresourcesresources

FinancialFinancialresourcesresources

InputInput

SubsystemsSubsystems BoundaryBoundarySpanningSpanning

Production,Production,Maintenance,Maintenance,Adaptation,Adaptation,ManagementManagement

BoundaryBoundarySpanningSpanning

ProductsProductsandand

ServicesServices

OutputOutput

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Organizational ConfigurationOrganizational Configuration

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TopTopManagementManagement

TechnicalTechnicalSupportSupport

Technical CoreTechnical Core

AdministrativeAdministrativeSupportSupport

MiddleMiddleManagementManagement

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Designing Organizations: DifferentDesigning Organizations: DifferentDimensionsDimensions

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Structure

1.1. FormalizationFormalization2.2. SpecializationSpecialization3.3. Hierarchy of AuthorityHierarchy of Authority4.4. CentralizationCentralization5.5. ProfessionalismProfessionalism

6.6. Personnel RatiosPersonnel Ratios

CultureCulture

Env ironmentEnvironment

Goals andGoals andStrategyStrategy

SizeSize

Techno logyTechnology

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Different Images ofDifferent Images ofOrganizationOrganization

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1. Organizations as Machine1. Organizations as Machine

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A good org. is one which has A good org. is one which has precision, efficiency, precision, efficiency,reliability, and predictability reliability, and predictability built into it;built into it;

Efforts are directed towards routinising activities &Efforts are directed towards routinising activities &reducing uncertainty of operations;reducing uncertainty of operations;

Fixed working hours, code of conduct, clear jobFixed working hours, code of conduct, clear jobdescriptions, reporting procedure, sales target, financial descriptions, reporting procedure, sales target, financial control systems, etc.control systems, etc. reflecting upon org as machinesreflecting upon org as machines ;;

Organizations insisting on grievances, leaveOrganizations insisting on grievances, leaveapplications, indents, etc. be submitted in prescribed applications, indents, etc. be submitted in prescribed

formats to be considered only formats to be considered only ;;

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DRAWBACKS:DRAWBACKS:

Best suited for Best suited for stable than unpredictablestable than unpredictable environment;environment;

Unquestionable reliance on fixed rules &Unquestionable reliance on fixed rules &

regulations results in negative impact on problem-regulations results in negative impact on problem-solving capacity of organizational members;solving capacity of organizational members;

Promoting unanticipated and undesirable politicalPromoting unanticipated and undesirable politicalbehaviors;behaviors;

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Relying on theRelying on the importance of interface b/w orgs and their importance of interface b/w orgs and their environment environment ;;

This interface is not confined toThis interface is not confined to INPUTSINPUTS (men, machine,(men, machine,& materials) and& materials) and OUTPUT OUTPUT (services/products)(services/products) but also tobut also tochanges in environment leading tochanges in environment leading to corresponding changecorresponding changein orgnal strategy, structures, and system (eg., ITC Ltd. Inin orgnal strategy, structures, and system (eg., ITC Ltd. In

1970s diversifying in Hotel Industry due to1970s diversifying in Hotel Industry due to FERAFERA && MRTPMRTP););Unstable & complex environment need org with moreUnstable & complex environment need org with moreloose and flexible structures to cope with adaptiveloose and flexible structures to cope with adaptive

demands;demands;

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Belief in wide variety of organizational formsBelief in wide variety of organizational forms as thereas therebeing number of businesses that the organizations arebeing number of businesses that the organizations arein;in;

Belief in role of strategy Belief in role of strategy in organizational functioningin organizational functioning((Asian PaintsAsian Paints in inception went for rural areas as morein inception went for rural areas as moreof competition from Multinationals in urban pockets);of competition from Multinationals in urban pockets);

Organizational growth being characterized byOrganizational growth being characterized bystep-by-step delegation, decentralization, etc.step-by-step delegation, decentralization, etc.

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3. Organizations as Brains3. Organizations as Brains

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More of More of Proactive & InteractiveProactive & Interactive thanthan ReactiveReactive

stance of organization vis--vis environment entity;stance of organization vis--vis environment entity;Orgnal strategies, structures, & systems depend uponOrgnal strategies, structures, & systems depend uponorg receiving, processing, and acting on informationorg receiving, processing, and acting on informationemanating from internal and external environment;emanating from internal and external environment;

Rules & procedures, and hierarchy & target settingRules & procedures, and hierarchy & target settingutilized to solve recurring problems;utilized to solve recurring problems;

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But in fast changing business environment the nature &But in fast changing business environment the nature &no. of problems faced increases much beyond problem-no. of problems faced increases much beyond problem-solving capacity of existing rules, hierarchies, andsolving capacity of existing rules, hierarchies, andmanagerial processes;managerial processes;

Orgs falling back on either Orgs falling back on either single-loopsingle-loop or or double-double-looploop learning to find relevant solutions to the problemslearning to find relevant solutions to the problems

faced;faced;

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DRAWBACKS:DRAWBACKS:Emphasis onEmphasis on conscious & deliberateconscious & deliberate rationality of rationality of organization, while ignoring itsorganization, while ignoring its irrationalirrational humanhumancontents;contents;

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4. Organizations as Political Systems4. Organizations as Political Systems

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Orgs with built-in hierarchy & authority relationshipsOrgs with built-in hierarchy & authority relationshipsbeing open to political process;being open to political process;

OP isOP is the mgt of influence to obtain ends not sanctioned the mgt of influence to obtain ends not sanctioned by org or to obtain sanctioned end through non-by org or to obtain sanctioned end through non-sanctioned influence means;sanctioned influence means;

Department dealing with environmental uncertainty,Department dealing with environmental uncertainty,

whose activities cannot be substituted by others, which iswhose activities cannot be substituted by others, which iscentral to the work-flow of orgnal activities, stand tocentral to the work-flow of orgnal activities, stand toenjoy greater power or influence as compared to others;enjoy greater power or influence as compared to others;

Viewing org as a political system leads to viewViewing org as a political system leads to vieworganization as a non-rational system;organization as a non-rational system;

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5. Organizations as Cultures5. Organizations as Cultures

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Culture: What is it?Culture: What is it?

ARTIFACTS, BELIEFS & VALUES, and ASSUMPTIONS ARTIFACTS, BELIEFS & VALUES, and ASSUMPTIONS ;;

Culture to determine OE; successful companies toCulture to determine OE; successful companies toflourish on strong culture core value being intenselyflourish on strong culture core value being intenselycherished, clearly stated, and widely shared amongcherished, clearly stated, and widely shared amongorganizational members;organizational members;

Concept OC leads to insight into crucial interface b/wConcept OC leads to insight into crucial interface b/worgnal and societal culture Whyorgnal and societal culture Why TELCO Jamshedpur &TELCO Jamshedpur &TELCO PuneTELCO Pune to have different way to operate;to have different way to operate;

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Questions???...Questions???...