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Introduction to Organization Management, Nature, Scope and Complexity

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Introduction to Organization Management, Nature, Scope and Complexity

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  1. Introduction to Organization Management, Nature, Scope and Complexity Facilitator and Course Coordinator: Vinayshil Gautam PhD, FRAS(London) (Founder Director IIM K; Leader Consulting Team IIM S) A Al_Sager Chair Professor and First Head, Management Department, IIT D Chairman, DKIF

  2. Nature of Organizations • Organizations are all pervasive • Family-First Organization • Place of work –Another Organization • Organizations are required as needs cannot be satisfied by individuals • Need for goods & services • Sociological needs

  3. Nature (contd.) • Means to wrest power and exert influence on others • Requires designing organization structure in such a manner that: • Objectives are achieved • Jobs are well defined • Information flow is smooth • Coordination and control can be performed Eg :- Employee organizations

  4. Characteristics of Organizations • Specific purpose-documented or verbal • Organizational members • Hierarchies of Authority and Accountability • Operate at some ‘state’ at all times • Strategies required if moving from chaotic conditions to healthy conditions • Part of macro environment consisting of society, competitors, vendors, financial institutions • Have a Value system • Structure

  5. Dimensions of organizations organization

  6. Analogy of organization with human body Structure Anatomy Processes Physiology Behavioral Psychology

  7. Structure Related Issues • Right Hierarchy • What should be span of control • Designing of line and staff functions • Nature of Management Information System • Work Methods • Job Definition • Performance Appraisal methods

  8. Process Related Issues • Centralized or Decentralized Decision making • Patterns of Communication • Top to bottom • Bottom to top • Across horizontal levels • Way of Coordination • Control Mechanism to be adopted

  9. Behavior Related Issues • Nature of affiliation of Human Beings • How members are motivated or demotivated • Influence through inter personal affiliations & group formations • Nuances of leadership Most Uncertain and unpredictable aspect of organizations

  10. Organizational Development (OD) OD refers to coping strategies or interventions which enable the organizations to consciously move from ‘chaotic’ conditions to those which promote healthy operations to achieve organizational effectiveness. It includes:- • Design Interventions • Technology Assessment • Management by objectives • Diversification and growth Strategies • Training and Development

  11. Rightsizing Rightsizing is management’s reduction in their organization’s use of human and/or capital resources to correct misalignment and improve performance when organization decline and environment decline are present.

  12. Reasons for Rightsizing Organization Decline -generated by mismanagement Environment Decline- caused by changes in competitive environment Requires Structural arrangements/changes in: • Standardization • Formalization • Centralization • Structural differentiation Requires strategies directed at an organization’s domain: • Changes in breadth of products • Changes in markets

  13. Strategies for rightsizing I. Structural and Domain retrenchment II. Structural Retrenchment and Domain Reorientation III. Structural Reorientation and Domain Retrenchment IV. Structural and Domain Reorientation

  14. I. Structural and Domain retrenchment -Resizes the organization and enhances efficiency & output Domain Retrenchment Structural Retrenchment • Breaks current portfolio of products/markets • Increases horizontal differentiation • Increases separation between performance of work and its evaluation • Span is reduced & layers of authority are added

  15. II. Structural Retrenchment and Domain Reorientation-leads to organic shift in organization Structural Retrenchment Domain Reorientation • Increase vertical differentiation • Decreased formalization and standardization • Identify defensible core of products or markets • Increase effort within that domain

  16. III. Structural Reorientation and Domain Retrenchment-mechanistic shift in organization structure Structural Reorientation Domain Retrenchment • White collar layoffs • Direct employment cuts • Layers of authority are eliminated • Elaboration of products & markets thru horizontal differentiation to pinpoint troubled domains

  17. IV. Structural and Domain Reorientation-Organic shift in organization Structural Reorientation Domain Reorientation • Decreases in standardization • Decreases in formalization • Decrease in horizontal and vertical differentiation