Module - I

What is an Organization?

 Definition Importance of Organizations Bring together resources to achieve desired goals and outcomes; Produce goods and services efficiently; Facilitate innovation; Use modern manufacturing and information technologies;

(contd)

 Adapt to and influence a changing environment; Create value for owners, customers and employees; Accommodate ongoing challenges of diversity, ethics, and the motivation & coordination of employees;

Perspectives on Organizations

 Open Systems Organizational Configuration Technical Core Technical Support Administrative Support Top Management Middle Management

An Open System and Its Subsystems

Environment
Raw Materials People Information resources Financial resources

Transformation
Input Output

Products and Services

Process
Boundary Spanning
Production, Maintenance, Adaptation, Management Boundary Spanning

Subsystems

Organizational Configuration

Top Management

Technical Support

Middle Management

Administrative Support

Technical Core

Designing Organizations: Different Dimensions

Goals and Strategy

Environment Culture
1. 2. 3. 4. 5. 6. Structure

Size Technology

Formalization Specialization Hierarchy of Authority Centralization Professionalism Personnel Ratios

Different Images of Organization

1. Organizations as Machine

 A good org. is one which has precision, efficiency,

reliability, and predictability built into it; Efforts are directed towards routinising activities & reducing uncertainty of operations; Fixed working hours, code of conduct, clear job descriptions, reporting procedure, sales target, financial control systems, etc. reflecting upon org as machines; Organizations insisting on grievances, leave applications, indents, etc. be submitted in prescribed formats to be considered only;

 MR delivering standardized sales-talk to physicians, on-board announcements made by air-hostesses, etc. are other example of viewing org as machines;

DRAWBACKS: Best suited for stable than unpredictable environment; Unquestionable reliance on fixed rules & regulations results in negative impact on problemsolving capacity of organizational members; Promoting unanticipated and undesirable political behaviors;

2. Organizations as Living Systems

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

environment; This interface is not confined to INPUTS (men, machine, & materials) and OUTPUT (services/products) but also to changes in environment leading to corresponding change in orgnal strategy, structures, and system (eg., ITC Ltd. In 1970s diversifying in Hotel Industry due to FERA & MRTP); Unstable & complex environment need org with more loose and flexible structures to cope with adaptive demands;

 Belief in wide variety of organizational forms as there being number of businesses that the organizations are in; Belief in role of strategy in organizational functioning (Asian Paints in inception went for rural areas as more of competition from Multinationals in urban pockets); Organizational growth being characterized by step-by-step delegation, decentralization, etc.

DRAWBACKS:

Organizational adaptation to environment is not automatic as it gets moderated by cognitive acumen of its members; Often difficult to identify exactly what comprises the organizations operating environment;

3. Organizations as Brains

 More of Proactive & Interactive than Reactive

stance of organization vis--vis environment entity; Orgnal strategies, structures, & systems depend upon org receiving, processing, and acting on information emanating from internal and external environment; Rules & procedures, and hierarchy & target setting utilized to solve recurring problems;

 But in fast changing business environment the nature & no. of problems faced increases much beyond problemsolving capacity of existing rules, hierarchies, and managerial processes; Orgs falling back on either single-loop or doubleloop learning to find relevant solutions to the problems faced;

DRAWBACKS: Emphasis on conscious & deliberate rationality of organization, while ignoring its irrational human contents;

4. Organizations as Political Systems

 Orgs with built-in hierarchy & authority relationships

being open to political process; OP is the mgt of influence to obtain ends not sanctioned by org or to obtain sanctioned end through nonsanctioned influence means; Department dealing with environmental uncertainty, whose activities cannot be substituted by others, which is central to the work-flow of orgnal activities, stand to enjoy greater power or influence as compared to others; Viewing org as a political system leads to view organization as a non-rational system;

5. Organizations as Cultures

 Culture: What is it?

ARTIFACTS, BELIEFS & VALUES, and ASSUMPTIONS; Culture to determine OE; successful companies to flourish on strong culture core value being intensely cherished, clearly stated, and widely shared among organizational members; Concept OC leads to insight into crucial interface b/w orgnal and societal culture Why TELCO Jamshedpur & TELCO Pune to have different way to operate;

Questions???...