Q1.

Henri Fayol, often regarded as the father of the classical approach to management, laid the
groundwork for modern management theory with his seminal work, "General and Industrial
Management," published in 1916. Fayol's principles, which emphasized a systematic and
comprehensive view of organizational management, continue to resonate in contemporary
organizations. Four major principles from Fayol's classical approach that remain relevant today are
unity of command, division of work, scalar chain, and esprit de corps.

• Unity of Command:
• Fayol's Principle: Unity of command suggests that each employee should have a single
supervisor or authority to whom they report. This principle ensures a clear line of authority and
helps prevent confusion and conflicting instructions.
• Relevance Today: In contemporary organizations, the importance of unity of command is
evident in the hierarchical structure. Each employee typically reports to one manager,
streamlining communication and decision-making. For example, in a corporate setting, a
marketing executive may report to the marketing manager, ensuring clarity in roles and
responsibilities.
• Division of Work (Specialization):
• Fayol's Principle: Division of work advocates for breaking down tasks into smaller, more
manageable components to increase efficiency. Specialization allows employees to focus on
specific tasks, leading to expertise and higher productivity.
• Relevance Today: Specialization is a fundamental principle in today's organizations. For
instance, in manufacturing, assembly line workers focus on specific tasks, promoting efficiency
and quality control. In the information technology sector, software development teams often
comprise individuals with specialized skills, such as coding, testing, and user interface design.
• Scalar Chain (Chain of Command):
• Fayol's Principle: The scalar chain represents the hierarchy in an organization, emphasizing the
chain of superiors from the highest to the lowest levels. This principle ensures a clear and
unbroken line of authority and communication.
• Relevance Today: The scalar chain is evident in the organizational hierarchy, where decisions
flow through established channels. In a multinational corporation, for instance, the CEO
communicates strategic decisions to top-level executives, who then relay the information down
to middle and lower management. This principle maintains order and coherence in the decision-
making process.
• Esprit de Corps (Unity of Direction):
• Fayol's Principle: Esprit de corps emphasizes the importance of teamwork and a sense of unity
among employees. Fayol believed that shared values and a common understanding of
organizational goals foster a positive work environment.
• Relevance Today: Teamwork and a shared sense of purpose remain critical in contemporary
organizations. For example, in project management, cross-functional teams collaborate to
achieve specific objectives. Companies often promote a corporate culture that encourages
employees to work together toward a common mission. This unity of direction enhances
employee satisfaction, engagement, and overall organizational performance.

While Fayol's principles have endured, it's essential to acknowledge that the business landscape has
evolved since the early 20th century. Organizations today are often flatter, more dynamic, and
influenced by factors such as technology and globalization. However, the core principles proposed
by Fayol continue to offer valuable insights into organizational management.

Moreover, Fayol's principles can be seen as adaptable frameworks rather than rigid doctrines. For
instance, while unity of command remains relevant, matrix organizational structures allow
employees to report to multiple supervisors based on project needs. Similarly, contemporary
organizations recognize the importance of both specialization and cross-functional collaboration,
striking a balance between expertise and adaptability.

In conclusion, Henri Fayol's classical approach laid the foundation for understanding organizational
management. The principles of unity of command, division of work, scalar chain, and esprit de
corps, though formulated in the early 20th century, remain pertinent in today's complex business
environment. By recognizing the enduring value of these principles and adapting them to modern
organizational dynamics, companies can build robust management practices that promote
efficiency, collaboration, and overall success.

Q2.

Greiner's Organisational Growth Model provides a framework for understanding the challenges that
organisations often face as they grow and evolve. The model consists of six phases, each
characterised by a specific crisis that organisations typically encounter. Let's explore how
LookBook might experience these phases and the associated crises as it launches its new mobile
application.

Phase 1: Growth through Creativity

During this phase, LookBook experiences growth by focusing on product development and
innovation. The crisis here is the "leadership crisis" as the company founders struggle to manage
increased complexity.

Example:

LookBook's founders were initially hands-on in all aspects of the business. With the launch of the
mobile application, they find it challenging to oversee every detail. Decisions become more
decentralised, and communication gaps emerge.

Phase 2: Growth through Direction

As LookBook establishes clear goals and strategies, it enters the "autonomy crisis." There is a need
for more structure, and conflicts arise between departments as they seek autonomy.

Example:

LookBook now has specialised teams for app development, marketing, and customer support.
However, these teams start to clash over resource allocation and decision-making authority, leading
to inefficiencies.
Phase 3: Growth through Delegation
LookBook encounters the "control crisis" as it grows. There's a need for formal processes and
systems to manage the organisation's increased size and complexity.

Example:

To handle the increasing user base, LookBook implements new project management tools and
establishes formal reporting structures. However, employees may resist these changes, fearing
bureaucracy.

Phase 4: Growth through Coordination

In this phase, LookBook faces the "red tape crisis" as the organisation becomes more bureaucratic.
Decision-making slows down, and innovation is stifled.

Example:

As LookBook grows, layers of management increase, resulting in a more hierarchical structure.

This slows down the implementation of new features and hampers the company's ability to adapt
quickly to market changes.

Phase 5: Growth through Collaboration

The "crisis of internal growth" emerges as LookBook encounters challenges in maintaining the
collaborative spirit that fuelled earlier success.

Example:

LookBook, now a larger organization, struggles with interdepartmental communication. Marketing

and development teams may have different visions for the app's promotion, leading to conflicts that
hinder overall growth.

Phase 6: Growth through Alliances

The "crisis of external growth" occurs as LookBook seeks partnerships and alliances for further
expansion. The organisation faces challenges in managing external relationships and adapting to a
more complex business environment.

Example:

LookBook forms partnerships with other companies to enhance its mobile app's features. However,
coordinating with external partners proves challenging, and the company must adapt to different
corporate cultures and processes.
Conclusion and Recommendations
Understanding Greiner's Organisational Growth Model can help LookBook anticipate and navigate
the challenges associated with each growth phase. To address these crises effectively, the company
should:

• Proactive Leadership:
• Train leaders to adapt to changing roles and responsibilities.
• Foster a culture of innovation and continuous learning.

• Clear Communication:
• Establish effective communication channels to prevent silos.
• Implement feedback mechanisms to address concerns and conflicts.

• Adaptive Structures:
• Continuously evaluate and adjust organisational structures.
• Balance hierarchy with flexibility to encourage innovation.

• Efficient Processes:
• Implement streamlined processes to prevent bureaucracy.
• Invest in technology that enhances efficiency without sacrificing creativity.

• Cultural Cohesion:
• Nurture a strong organisational culture that values collaboration.
• Encourage cross-functional teams to promote a shared vision.

• External Relationship Management:

• Develop skills for managing external partnerships and alliances.
• Stay adaptable to external changes in the business environment.

By proactively addressing these recommendations, LookBook can navigate through the growth
phases, turning potential crises into opportunities for sustained success with its new mobile
application.

Q3.
(A)
Ashish and Avanti, in enhancing the organisational effectiveness of their e-commerce start-up,
would likely employ various metrics and indicators to measure the success and efficiency of their
business. Here are key areas and examples of how they might measure organisational effectiveness:

1. Financial Performance:
• Metrics: Revenue growth, profit margins, return on investment (ROI).
• Example: Look at quarterly and annual financial reports. If revenue is increasing, and profit
margins are healthy, it suggests that the organisation is effective in its financial management.
2. Customer Satisfaction:
• Metrics: Net Promoter Score (NPS), customer reviews, repeat business.
• Example: Monitor customer feedback on their website and social media. If NPS is high and
customers are returning, it indicates that the business is meeting customer expectations.
3. Operational Efficiency:
• Metrics: Order fulfilment time, inventory turnover, order accuracy.
• Example: Analyse the time it takes to process and deliver orders. If this time is decreasing, and
inventory turnover is optimised, it signals efficient operations.
4. Employee Productivity and Satisfaction:
• Metrics: Employee engagement surveys, turnover rates, productivity metrics.
• Example: Conduct regular surveys to measure employee satisfaction. If turnover is low and
productivity is high, it suggests a positive work environment and effective management.
5. Innovation and Adaptability:
• Metrics: Number of new products/services, speed of product development.
• Example: Track the introduction of new features or products. If the business is quick to adapt to
market trends, it reflects organisational agility.
6. Market Share and Competitiveness:
• Metrics: Market share growth, competitive analysis.
• Example: Monitor the growth of the business's market share compared to competitors. If they are
gaining a larger share, it implies effectiveness in the market.
7. Technology Utilisation:
• Metrics: Integration of new technologies, website/app performance.
• Example: Regularly update and assess the performance of their e-commerce platform. If they
leverage cutting-edge technology and their platform functions smoothly, it indicates effective
technological integration.
8. Supply Chain Management:
• Metrics: Supplier performance, cost of goods sold.
• Example: Evaluate the efficiency of the supply chain. If the cost of goods sold is reasonable, and
suppliers consistently meet expectations, it reflects effective supply chain management.
9. Social Responsibility and Sustainability:
• Metrics: Environmental impact assessments, community engagement.
• Example: Assess the company's efforts in sustainability and social responsibility. If they are
actively contributing to environmental causes and engaging with the community, it indicates a
broader sense of organisational effectiveness.

10. Risk Management:

• Metrics: Identification and mitigation of potential risks.
• Example: Regularly assess and update the risk management plan. If the business can effectively
identify and address potential risks, it demonstrates robust risk management practices.

Measuring organisational effectiveness requires a holistic approach, considering financial,

operational, and strategic aspects. Ashish and Avanti should continuously monitor these metrics,
using them as a guide to make informed decisions and adjustments to enhance the overall efficiency
and success of their e-commerce start-up. Regular reviews and a commitment to continuous
improvement will be crucial for sustained organisational effectiveness in a dynamic business
environment.

(B)
The systems approach is a holistic and interdisciplinary way of viewing an organisation,
considering it as an integrated and interconnected set of components that work together to achieve
common goals. In the context of Ashish and Avanti's e-commerce start-up, adopting a systems
approach means understanding and managing the organisation as a complex system with various
interrelated parts. Here's an explanation of the systems approach and its benefits, along with
examples.

Explanation of the Systems Approach:

The systems approach sees an organisation as a system composed of subsystems, and these
subsystems are further made up of interconnected elements. These elements interact with each other
and with the external environment to achieve common objectives. This approach emphasises the
interdependence of various functions within the organisation and how changes in one part can
impact the entire system.

In the case of the e-commerce start-up, the systems approach involves recognising that departments
like marketing, operations, finance, and customer service are interconnected. Changes in one area,
such as an improvement in the supply chain process, can have ripple effects on customer
satisfaction, financial performance, and overall organisational effectiveness.

Benefits of the Systems Approach:

1. Holistic Understanding:
• Example: By adopting a systems approach, Ashish and Avanti can understand how different
departments and processes contribute to the overall success of their e-commerce business.
For instance, a change in the marketing strategy can impact not only sales but also customer
service and inventory management.
2. Interdisciplinary Solutions:
• Example: If there's an issue with order fulfilment, the systems approach prompts
consideration of various factors such as inventory management, logistics, and customer
expectations. The solution might involve collaboration between the operations and customer
service departments to ensure a comprehensive resolution.
3. Feedback Loops:
• Example: Implementing a customer feedback system that collects data on product
satisfaction, delivery times, and customer service interactions. This information feeds back
into various subsystems, allowing the organisation to make data-driven improvements
across the board.
4. Adaptability to Change:
• Example: If there's a sudden shift in consumer preferences or a new technology disrupts the
market, the systems approach enables the organisation to adapt more effectively. For
instance, if a new payment method becomes popular, the finance and IT departments can
collaborate to integrate it seamlessly into the e-commerce platform.
5. Optimisation of Processes:
• Example: Analysing the end-to-end process of bringing a new product to market. The
systems approach helps identify bottlenecks and inefficiencies across departments, allowing
for a more streamlined and optimised product development and launch process.
6. Enhanced Communication:
• Example: Improved communication between different departments. For instance, if there's a
surge in customer inquiries, effective communication between customer service and the IT
department is crucial to ensure that the website's customer support features can handle the
increased traffic.
7. Long-Term Planning:
• Example: Strategic planning that considers the long-term impact of decisions on the entire
organisation. For instance, if the start-up plans to expand internationally, the systems
approach encourages a comprehensive assessment of how this expansion will affect supply
chains, marketing strategies, and customer service.

The systems approach provides Ashish and Avanti with a framework to manage their e-commerce
start-up in a more interconnected and strategic manner. By understanding how different parts of the
organisation work together, they can make informed decisions that positively impact overall
organisational effectiveness. The benefits of this approach include improved adaptability, better
problem-solving, and a more holistic view of the business's operations, leading to sustained success
in the dynamic e-commerce landscape.