Solved Assignment July-Dec 2016

MS-10 (SAMPLE COPY)

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MS-10
Organisational Design, Development and Change

MS-10/ TMA/SEM - II/2016

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1. Describe how organisation acts as a system. Explain with the help of examples.
The term organization is derived from the Greek word organon i.e., tool or instrument. It is often been understood as the
embodiment of persistent efforts to coordinate, influence and control human behavior in order to reach some desired result.
According to Chester I. Bernard, an organization is a system of consciously co-coordinated activities or forces of two or more
persons.
A system is a set of integrated and mutually ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of their collective interaction.
Organization as Systems
Components of Organization System: ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the organizations input, outputs and key elements in the task environment are depicted in Figure
1.

The task of the organization is its mission, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------level, as well as how departments, divisions and the overall organisation are designed at the macro level.
In addition to these major internal components of the organisation as a system, there is organisations task environment, such
as suppliers, customers, and regulators. In simpler terms it is that part of external environment which is relevant at present or
expected enforceable future to the organisations goal attainment.
Differentiation and Integration: Like any other ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- In organizations, this integration is typically achieved through methods such as coordinated levels of hierarchy;
direct supervision; and rules, procedures and policies.
Organization as a System: (Some Examples)

Normally system is defined as a ---------------------------------------------------------------------------------- to their quality

and ability, to achieve the goals of the management.

A system is an assembly of ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ organization is also a system of people.

This is the simplest justification for calling the organization a system.

The management ---------------------------------------------------------------------------------------. They have identified more

elements in the systems in the system besides the people. The choice of technology and structure as additional three
elements of the organization system.

He says that the task --------------------------------------------------------- cannot be ignored as elements of the system.

The arrangement of task in --------------------------------------------------------------------------------------------------------------people. You may choose the best technology and well designed task, but they have to be suited for the people.

Over and above these are to be --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- technical system consisting of people task
technology culture and structure. The modified Leavitts model is shown in Fig.

In view the nature of the task the ------------------------------------------------------------------------------------------------------------------------------- system capable of adjusting itself to the changing environment.

The organization ------------------------------------------------------------------------------- by the changes in it.

The organization therefore has to be --------------------------------------------------------------------------- environment and

the goals and the objectives are achieved.

Hence the --------------------------------------------------------------------------------------------------------------------------------------- and output satisfying at first its own objective and eventually the corporate organization goals and objectives.

If the sub-system's ------------------------------------------------------------------------------------------------------------------------------------------------------------- to change and non-attainment of corporate goals will be the consequences.

The systems and their ------------------------------------------------------- the changes in the business focus the
environment and in the people in the organization.

A significant change calls for ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- to the Natural process of growth and decline.

All organizations and their business go through the different phases of growth cycle in stages as Introduction Growth
Maturity and Decline.

Each phase generates new -------------------------------------------------------- organization is bound to suffer from decay.

The Organization as an Open System

There are two basic types of systems: open and closed. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------real systems interact with their environment.
The characteristics of an open system are:

Subsystems: A system is composed ------------------------------------------------------------------------------ an established

arrangement and need to have interdependencies.

Synergy: Synergy means that the whole ------------------------------------------------------------------------------------------------------------------------------- parts, its performance should be viewed as an integrated system.

The Input-Output Model: All open ------------------------------------------------------------------------------------------------------------------ a transformation process in dynamic interaction with its environment.

Goal seeking-Open system: Open --------------------------------------------------------------------------- their environment.

Interaction between elements results in some final state or goal.

Entropy: Every transformation process involves the degradation or use of energy and resources. The tendency
toward entropy is a movement toward disorder and eventually termination of functioning. To keep a system operating
there must be an infusion of energy and resources.

Steady State: The notion ------------------------------------------------------------------------------------------------------------------------------- and self-regulating. The open system seeks a state of dynamic equilibrium.

Feedback: The feedback of information ---------------------------------------------------------------------------------------------------------------------------------indicates that the system is deviating from goals and needs to readjust.

The open systems approach to organization -------------------------------------------------------------------------------------------------------------------------------------- to apply open systems theory to organizations in a comprehensive way in 1966.
The organization as an open system is composed of five sub-systems:

Goals and values, technical--------------------------------------------------------------------------------- on each other.

Organization, ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- relation with that environment in order to survive.

As an open system, it influences and is influenced by the environment through the process of interdependency, which
results in a dynamic (changing) ----------------------------------------------------------------------------------------------------------------------- achieves a steady state or dynamic equilibrium.

Like other open systems, ---------------------------------------------------------------------output mechanisms.

All systems transform inputs into outputs. The system is viewed as a transformation process in dynamic interaction with its
environment. There are three basic elements in the input/output model:
i)

Inputs: the resources --------------------------------------------------------------------------- function.

ii) Processes: the activities ----------------------------------------------------------------------- the resources.

iii) Outputs: ------------------------------------------------------------------------------- of the system

The organization system cannot continue to survive without the continuous influence of transformational outflow like the open
system it interacts with its environment, continually receives information, termed feedback from its environment, which helps
it to adjust. Figure above shows the open system model.
Organization is a system of consciously -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------: Machines, Organisms, Brains, Cultures, Political Systems, Psychic Prisons, Flux and Transformation, Instruments of
Domination.
The effect of this systems theory in --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, e.g., have wonderful departments that
operate well by themselves but don't integrate well together. Consequently, the organization suffers as a whole.
Now, more managers are recognizing the --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------larger patterns of interactions.

Managers maintain perspective by focusing on the outcomes they want from their organizations. Now managers focus on
structures that provoke behaviors that determine events -- rather than reacting to events as was always done in the past.
Each organization has numerous --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and on it goes. Subsystems are organized in
an hierarchy needed to accomplish the overall goal of the overall system.
The organizational system is defined by, e.g., its legal documents (articles of incorporation, by laws, roles of officers, eta.),
mission, goals and strategies, policies and procedures, operating manuals, etc. The organization is depicted by its
organizational charts, ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- systems, performance review systems, etc.

2. Explain the universal perspectives on organisational design citing suitable organisational examples.

Universal Perspectives of organization design and their relevance

Organization Design is a formal, guided process for integrating the people, information and technology of an organization. It
is used to match ----------------------------------------------------------------------------------- organization seeks to achieve.

1. The Bureaucratic Model

Max Weber, a German sociologist, ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- actions because they are required to act in
accordance with well-specified and agreed-upon rules and standard operating procedures.
This approach held that an ideal organization should have the following characteristics:
1. A division of labour based on functional specialization.
2. A well-defined ------------------------------------------------------------------------ the top of the organization to the bottom.
3. A system of -------------------------------------------------------------------------- of employees.
4. A system --------------------------------------------------------------------------------- work situations.
5. Promotion ------------------------------------------------------------------------------ competence.
6. Impersonality of interpersonal relations. All managers should conduct business in an impersonal manner, maintaining an
appropriate social distance form their subordinates.
Basic Elements of the Bureaucratic Structure are:

formal -------------------------------------------------- by rules

uniformity of operations continuity despite changes in personnel

functional ----------------------------------------------- specialization

---------------------------------------------------------------- of tasks

impersonal ----------------------------------------------

membership -------------------------------------------- career

promotion based on technical competence

limited --------------------------------officers

specific sphere of competence

legally -----------------------------------------------

employment based on merit-no ascribed status

qualifications ---------------------------------------

proscribed authority-legally defined

One of the basic strengths of this -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. The major drawbacks are:
(1) This model tends to get bogged ---------------------------------------------------------- in this process loses sight of the actual
objectives of the organization; and
(2) it is not well------------------------------------------------------- external environment.
Bureaucratic structures can become so ------------------------- cannot change fast enough to cope with external change.

2. The Behavioral Model

This model has evolved from the Human Relations School of management thought. In this model the performance of an
organization is believed to depend on human beings, their behaviour, characteristics and their mutual relationships emerging
from work patterns and organizational settings. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- the socio-technical systems theory and Likerts System 4 Organization.
Socio-technical Systems Theory- The socio---------------------------------------------------------------------------------------------------- human side with its technical and mechanical side. As such, this theory focuses on two systems:
(1) A social system that provides the --------------------------------------------- both formal and informal organizations; and
(2) A technical system that provides the framework --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------desilication , settling,
washing and filtration, precipitation and classification, and conversion of alumina into aluminum metal.
Likerts System 4 Organization- The most significant strength of --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------depends
on a number of contingency factors.

3. Contingency Approach
The contingency approach to --------------------------------------------------------------------------- facing an organization. The
structure is designed to respond to various contingencies- things that might happen and therefore must be planned.
According to Contingency Theory, the structure of an -------------------------------------------------. The key contingency variables
addressed in the literature include:

-----------------------------------

ability to adapt to the environment

technology -----------------------

-----------------------------------

As the objectives of an organization --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------by the contingency factors as illustrated

in Figure below-

There is strong support from empirical research --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------increasing

innovation
relating to its product. For carrying out this product innovation successfully, the organizations design and / or technical
process will have to be changed.

ExampleGood organizational design helps communications, productivity, and innovation. It creates an environment where people can
work effectively.
Many productivity and ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- not perform well because of poor organizational design.
Take the example of a company whose sales department and production department both work well as separate units. Yet
they need to communicate about customer needs and have not been organized to do so: Company performance suffers as a
result. Then take the example of a -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- is compromised as a result.
How work is done, business processes, -------------------------------------------------------------------------------------------------------------------------------------- are facets of the organization's design and each facet is important to organization's success.
Given the importance of organizational design, ----------------------------------------------------------------------------------------------------------------------------------------------- designed. With little or no planning and intervention, the organization design that
emerges is likely to be flawed with misaligned incentives, processing gaps and barriers to good communications.
Without due planning, an organization's design -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, the right incentives; and getting the most from people and other key resources
The organisation I are familiar with is Toyota and make a brief analysis of the contingent factors that have influenced
the organizational design of the company
Continuing their coverage -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- struggle with at some point:
The findings from the Toyota Quality Advisory Board:
a)

Toyota North ------------------------------ Panel Conclusions: The ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------panel.

b) Balance ----------------------------- Management Control: How can Toyota best balance decision making between
Toyota Motor ------------------------------------------------------------------- North America and the world?
c)

Responses to ---------------------------- Sources: The panel ----------------------------------------------------------------------------------------------------. The panel claims that this violates the tenets of the Toyota Production System.

d) Management --------------------- and Safety: Because Toyota treated Safety as a subset of Quality, the panel believes
that this has led to the ---------------------------------------------------------------------------------------------------------------------------------------------- to the old adage of if everyone is responsible, then nobody is accountable.
e)

The ------------------------------ Electronics and Software: -------------------------------------------------- problems?

f)

Management of Supplier Product Quality: As Toyota becomes ----------------------------------------------------------------------------------------------------------------------------------------------- it once had?

According to the Quality Advisory Panel, Toyota has remained too much on the side of an organizational structure that is too
globally centralized. In the Panels words:
a)

In the Panels view, Toyota ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- authority and control.

b) Toyota has traditionally structured its ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------controlled

by TMC.
c)

To accomplish this, Toyota --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to TMC in

Japan.

Apparently, strategy and structure go hand-in-hand and Toyotas lack of a strategy led to its organizational structure. The
outcome has, in large part, led to the public relations nightmare that Toyota has had to deal with.
In its review, the Panel has -------------------------------------------------------------------------------- Toyotas quality and safety
issues in North America. Specifically, Toyotas tightly-controlled global structure:
a) Hindered information sharing ------------------------------------------------------------------------------;
b) And -------------------------------------------------------- Toyota was being unresponsive to regulators and customers.
The Quality Advisory Panel ----------------------------------------------------------------------------------- structure to better allow
quicker decision making and faster flow of information:
a)

Work to further break down the regional ------------------------------------------------------------------------------------------------------------------------------------------------- responsibility for all regional functional organizations.

b) Identify additional critical cross-silo --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.

Toyota should consider what other decision-making models might be employed in emergency situations.
c)

Strengthen communication among global -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------a director from one of its key regional markets such as North America.

d) Develop clearer lines of communication, -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to benefit from the additional autonomy and authority they have been granted.
Continue to increase North American involvement in the product development and design process for vehicles in North
American markets

3. Explain the contemporary approaches to job design with the help of examples.
1. Contemporary approaches to job designJob characteristics Theory of Hackman and Oldham states that employees will work hard, when they are rewarded for the
work they do, and when the work gives them satisfaction. Hence, they suggest that motivation satisfaction and performance
should be integrated in the job design. According to this approach, any job can be described in terms of five core dimensions
which are defined as follows:
Core job dimensions:
1) Skill variety: The degree ----------------------------------------------------------------------------------------------------------------------------------------------, talents and skills in order to successfully complete the job requirements.
2) Task identity: The degree to --------------------------------------------------------------, rather than disjointed portions of the job.
3) ---------------------------------------------------------------------- the lives of others both within and outside the workplace.
4) Autonomy: The degree to -------------------------------------------------------------- and the methods used to complete the job.
5) ---------------------------------------------------------------- clear, direct and understandable knowledge of their performance.

The entire job dimensions impact workers ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of results.

The core job dimensions can be combined into a single predictive index called the Motivating Potential score. Its computation
is as follows:
Motivating potential score = Skill variety + Task identity + Task Significance / 3 x Autonomy x Feedback
Critical psychological states: --------------------------------------------------------------------------------------------------------------------------------------------------------------- individuals experience three psychological states in response to job design.

Personal and work outcomes: Jobs are high on motivating potential and must be high at least in one of the three factors that
lead to meaningful work and must be high in --------------------------------------------------- states lead to outcomes such as (1) High internal work motivation (2) high growth satisfaction, (3) high quality work performance, (4) high general job
satisfaction, (5) high work effectiveness and (6) low absenteeism and turnover (Figure). The models say that internal rewards
are obtained by the individual when he learns that he personally has performed well on a task that he cares about

2. Team ApproachThe team approach is not unique or new to --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------are identified, and tools and
strategies for facilitating more effective teaming are introduced.
The benefits of teamwork are obvious. Team practice has led professionals to see clients and their families as whole persons,
not as parts of a whole (e.g., mouths, brain, arms, legs). An appreciation of other disciplines allows professionals to
accommodate larger functional goals --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, redundancy or fragmentation of
service can be reduced or eliminated, thereby increasing the cost efficiency of service.
Classical organization structures did not rely heavily on teams, despite that division of work into functional units and multiple
levels. But in recent years, attention is focused on the design --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------for
their
personal development through increased involvement in decision making relation to the control and regulation of the work
system.
Suggested guiding principles for the design of work group activity include;

Primary work ----------------------------------------------------------------- and twenty members.

The primary work group should have a designated leader who is accountable for the groups performance.
The group should --------------------------------------------------------------- unit of work.
Wherever possible the group members should have responsibility for planning their own work.
Group members ---------------------------------------------------------- in relation to the plans.

3. Goal SettingGoals and objectives, in -------------------------------------------------------- important aspects of any job design.
Goal setting is the process of ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------performance in the following ways.

Difficult goals ---------------------------------------- difficult ones. The goals must be challenging but achievable

Specific goals are more likely ------------------------------------------------------------------------------------------------------------------------------------------------------------------ ones, or the absence of any goals at all.

Task feedback or knowledge of ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------that

can be sued for work adjustments to better performance.

Goals are most likely to lead to ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- and to feel confident in them as well. A lack of
confidence, or inadequate self-efficacy, can create performance problems for even a very capable person.

Goals are most likely to motivate ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- allowing the individual to

participate in the goal-setting process. This helps to create a sense of ownership of the goals.

Goal Setting and MBO - When we speak of -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------with Druckers help as a

consultant. MBO is essentially a process of joint goal setting.
It is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible
results from available resources. ------------------------------------------------------------------------ has a clear
understanding of the aims, or objectives of that organization, as well as awareness of their own roles and responsibilities in
achieving those aims.
During the past five years, productivity and ----------------------------------------------------------------------------------------------------------------------------, is considering closing the plant and moving south, although she wants to retain the company.
Example 1When Jackson, a mechanical engineer, started the company in --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------productivity.
Her response was to assume that pay was too low. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Nevertheless, she was
concerned about productivity, as well as the 'plight'of the workers.
About two months after the salary increase, --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------that
alternative.
Jackson
wondered if it would be more trouble than it was worth.
Jackson with the help of Professor Erin Brief got success in arranging job design of all the employees and thus productivity
started increasing.
Example 2Maids International Inc., a company that provides ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- pain in their neck and shoulders.
Example 3Nokia uses rotation at all levels, such as --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------leaders of the company by rotating
them through different jobs.
Example 4Gucci's CEO Robert Polet points to the -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------features, such as telecommuting, company structure, organizational climate, and leadership style

4. Discuss the process and significant dimensions of institution building with illustration.

Process of institution buildingInstitution building refers to transforming an organisation into an integrated organic part of the community, so that the
organisation can effectively play the role of projecting new values and become an agent of change in the community. Hence
institution building refers to the process aspects of:
a) ------------------------------------------------------------------------- an organization;
b) Making an organisation ---------------------------------------------------------------------- community;
c) The maintenance -------------------------------------------------------------------- existing values;
d) Projecting new values --------------------------------------------------------------------- renewal, and thus; and
e) The proactive role of bringing change contributing to change in the existing values of needs of the society.

Institution building refers to two aspects:

1) Development of an ----------------------------------------------------------------------------------------------------------------------------------------------------------------- including development of relevant norms and values, and
2) Internal development of an ---------------------------------------------------------------------------------------------------------------------------------------------------------- building refers to the process of birth, development, renewal and institutionalization.
All organizations are organic i.e. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, it is only a few that seem to live forever.
Warren Schmidt (1967) has suggested that organizations --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. The stage of
development at which an organization is, is more in terms of the crisis factors rather than its financial status or number of
employees or its share in the market etc.
The first stage is birth of an organization. Organizations originate at first, in the minds of individuals, as an idea. An operative
model with necessary resources and support mobilisation characterises the earliest stage.
The second stage is survival and sacrifice. An organization is born in a climate of a new idea, hope and excitement, but has to
struggle to survive in the world of --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------marginally with still heavier demands
made on the entreprenuer.
If the organization survives, then it should seek for stability which is the third stage. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, strong and flexible; while inability to do so results in the organization returning back to the survival stage and
stagnation.
The fourth stage is self-examination --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------reputation of the organization and

results in the improvement of its quality of goods and services.
Failure to resolve the crisis leads to living on ------------------------------------------------------------------------------------------------------------------------------------------------------------------ the greater is the likelihood of returning to instability.
The next issue (Fifth) that concerns the organization is --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, conservatism and
resistance that inhabits further development. The organization may not be able to realise its uniqueness.
The sixth issue of concern involves the organizations --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------castigation by the
public as heedless barons or heedless tycoons.
The different crisis discussed so far need not operate in --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and attitudes and it is
quite possible that at different stages of growth, the managerial and leadership skills required are different.
SIGNIFICANT DIMENSIONS OF INSTITUTION BUILDING: SELF-RENEWAL AND INNOVATION
Earlier we have described the growth stages and crises experienced in institution building. Two of the significant dimensions
of institution building are self-renewal and innovation.
Self-renewalSelf-renewal refers to concentrated -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- and social changes. The act of selfexamination from
time to time forms the basis of organization renewal. The different stage in self-renewal process are :
1) Sensing of change: Organizations should be -------------------------------------------------------------------- these changes, the
organization fails to cope adequately with its environment.
2) Identification of the ---------------------------------------------------------- forces are going to affect the ongoing system.
3) Deciding an appropriate plan of action. -------------------------------------------- on the basis of :

Obtaining necessary information with ---------------------------------------------------- other fact finding methods.

Accurate ------------------------------------------------------------------------ information.
Deciding at what sub-system level (i.e. -------------------------------- the neessary changes are to be brought about.
Implications ---------------------------------------------------------------------------systems.
Weighing the ------------------------------------------------------------------------- coping with external forces.

4) Introducing the change. The intended -------------------------------------------------------- action is important.

5) Stabilising the change, enough system support is -------------------------------------------------------- new equilibrium.
6) Obtaining feedback on the -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- and the degree of integration of the internal environment.
Failure at any of these stages results in ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- certain conditions within the organisation such as:

Effective ------------------------------------------------------------- communication.

Flexibility within the ------------------------------------------------ changes or remedial measures.
Willingness to change --------------------------------------------------------- goals.
Supportive climate at the top management level. Involvement of top-policy making group gives legitimacy to the
change process.

The present day organizations are at -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------with changing demands and forces.
InnovationInnovation may be -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------features of innovation are :

It does not function in -------------------------------------------------------- be thought of in a system perspective i.e. the

likely changes in the internal sub-systems.
It thrives in a -------------------------------------------------------- competitive environment.
Acceptablity ----------------------------------------------------- depends upon:

1. Its relative advantage --------------------------------------------- ideas or approaches.

2. Compatibility with existing norms, values and work behaviours.
3. Simplicity ------------------------------------------------------- and practice.
4. Utilitarian value for --------------------------------------------------------------------------------- and the stakes involved.
5. Compatibility with existing skills------------------------------------------------------------------------------- sufficiently in advance.
Otherwise, resistance may be built inspite of the functional value.

Innovative planning is an organizational necessity for self-renewal and institutional building.

Example- (INSTITUTION BUILDING: LESSONS FROM VIKRAM SARABHAIS LEADERSHIP)

Institutions are social areas where --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------an economic organization from an
institutional organization is the intensity and the depth with which individual members of an institutional organization hold the
core values which seem to suffuse their total being.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------One of the ways of understanding the impact of leadership actions on institution building is by presenting the three guiding
strategies he had intuitively used. These three strategies rest on a single pivotal value which is the primacy and centrality of an
individual.

The three guiding strategies he used to build institutions are:

Networking strategy or ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- into actions in terms of research programmes and projects.
Trusting strategy or creating a -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the role of administration as a support
system to the core tasks of the insitution.
The lessons that emerge from the study of Sarabhai as an Institution builder can be summed up as follows :

In order to develop ----------------------------------------------------------------------------------------------------------------------------------------------------------------------is to present a vision which will inspire many and to provide meaningful exchange
relationships.

Leadership actions have to nurture ----------------------------------------------------------------------------------------------------------------------------------------------- Failure to do so is likely to lead to the breakdown of the institutional aspects
of the organization resulting in its decline and decay.

It is important for an institution ------------------------------------------------------------------------------------------------------------------------- oriented, interface, and internally oriented leadership strategies for institution building.

While the criticality of organisational culture to the development of institutions has always been emphasised, the importance
of building in trust and caring has not been adequately emphasised in the literature

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