What is implied by the word Organisation?

Raman
What are organisations?
 We take them for granted
 They are everywhere
 Indian Railways versus Indigo---in terms of
organisational culture and structure.
 PSU versus Indigo or Tesla---obsolescence versus
adaptability and survival
 They are comprised of human beings who are
aligned in a particular way to individually and
collectively co-ordinate activities to achieve the
objectives the organisation set out to do so in the 06/02/23 2

first place.
What is an organisation?

 Organisations are social entities

 They are deliberately structured and coordinated systems
 Organisations operate and interact in the context of the external
environment, they are linked to the external environment are are
moulded and shaped by it.

06/02/23 3
Defining an organisation?

Organisations are purposeful social

entities that are goal-directed Designed
as deliberately structured and
coordinated activity systems Linked to
the external environment
06/02/23 4
Critical You tube videos

 Watch this without fail Mr.Shivakumar

 https://www.youtube.com/watch?v=OoS55W8o3eY

 https://www.youtube.com/watch?v=g6LDkz0JtOM
 And
 https://www.youtube.com/channel/UCIvloS2zTYgEaGFEoERB90Q

06/02/23 5
What Is managing? Luther Gulick and L.Urwick –provided
the acronym which captures it all[1937]- POSDCORB

 Planning
 Organising
 Staffing
 Directing
 Co-ordinating
 Reporting
 Budgeting
06/02/23 6
What are organisations created for?

 Organisations bring together and logically coordinate and synergise resources

financial, human and technical to achieve desired goals and outcomes
 Produce goods, emotions and services efficiently and effectively depending
on the operative context.
 Facilitate innovation
 Use modern manufacturing and computer-based technology

06/02/23 7
The operative context of an organisation which impacts how
it operates

 Globalisation

 Necessity to respect local cultures and yet

be profitable

 Manage across different cultures with

different people and yet retain best 06/02/23 8

practices
ORGANISATIONS HAVE DIFFERENT
REQUIREMENTS AND OPERATE IN
DIFFERENT ENVIRONMENTS
Some require centralised control, clear separation of roles and responsibilities, clear
sop and clear reporting relationships-clear fragmentation of tasks—greater vertical
coordination of activities and greater control and efficiency== The Army.

Some require innovation, adaptability, speed and flexibility and operate in a environment where
customer demand is changing rapidly and timely execution is the crux of success—greater
horizontal coordination of activities of people-more collaboration and consultation--- Google

Flat structures-multi-tasking start-up colloquial wow momo

story-https://www.youtube.com/watch?v=zuMCageDhK8

Context, contingency and stage of the organisational lifecycle determine the orgnaisational design
06/02/23 9
and eventual configuration..
The Operative context differing implications-

The VUCA world

Cost which the
pressures in organisation now
the finds itself operating
globalised under, forces an
world which organisation to Welcome to the
mould an adapt itself both
Standardized digital world and the
organisation Cost and innovation structurally and
processes in the office-less
’s strategy pressures –example functionally. Its
unrelenting pursuit workplace—IT
and hence FMCG sector responds through
of efficiency innovations, rapid
bring about process, workflow, making changes in
Improving efficiency communication,
changes in quality, novelty all its structure,
through time and artificial intelligence
its structure done at the optimal systems and policies
motion studies- and collapse of
and internal price. . that flow through
manufacturing taken for granted
reporting the system ideas of work.
relationship adaptation. Refer
s which https://www.youtub
shape its e.com/watch?
design v=lPRV8fTn3WQ
priorities.

06/02/23 10
 Change versus continuity
 The environment for today’s companies, however, is anything but
stable. With the turbulence of recent years, managers can no longer
maintain an illusion of order and predictability. 
 ——>The principle of chaos theory suggests that relationships in
complex, adaptive systems—including organisations—are nonlinear
and made up of numerous interconnections and divergent choices
that create unintended effects and render the whole organisational
hierarchy and system unpredictable.
  ——>The world is full of uncertainty, characterised by surprise,
rapid change, and confusion. Managers cannot simply measure,
predict, or control in traditional ways the unfolding drama inside or
outside the organisation.

06/02/23 11
 Tasks and Roles
 —->A task is a narrowly defined piece of work assigned to a person. In traditional
organisations, tasks were broken down into specialised, separate parts, as in a machine.
Knowledge and control of tasks are centralised at the top of the organisation, and
employees are expected to do as they are told. 
 ——>A role, in contrast, is a part in a Dynamic social system. A role has discretion and
responsibility, allowing the person to use his or her discretion and ability to achieve an
outcome or meet a goal. 
 ——->Conversely, contemporary organisations which try to visualise themselves as
learning organisations. In such organisations employees play a role in a team or
department and their roles may be continually redefined or adjusted.
 There are few rules or procedures, and knowledge and control of tasks are located with
workers rather than with supervisors or top executives. Employees are encouraged to take
care of problems by working with one another and with their customers.
 ——->Reflective activity- Google the pioneer of this concept Peter Senge on the internet-
Learning Organisations. 06/02/23 12
Structural dimensions-Internal DNA skeleton.

 Formalisation-degree of codification and documentation of

procedures
 Specialisation-degree or extent to which activities are divided into
jobs with greater specialisation meaning narrower range of jobs
 Hierarchy-implies the span of control and number of layers an
organisation has in its reporting relationships-greater hierarchy
means greater division of labour and fragmentation[recall class
examples]
 Professionalism-The degree of technical ability, training and
experience
 Personnel ratio- The ratio of number of people to number of
departments 06/02/23 13
Contextual dimensions which interact the organisation's structural
dimensions and hence its structure individually and collectively

1. Size-specific components or specific departments or plants-

headcount
2. Organisational technology refers to the tools, techniques, and
actions used to transform inputs into outputs. It concerns how
the organization actually produces the products and services it
provides for customers and includes such things as flexible
manufacturing, advanced information systems, and the
Internet. An Automobile assembly line, a college classroom,
and an overnight package delivery system are technologies,
although they differ from one another.
3. The environment includes all elements outside the boundary of
the organization.
4. Key elements include the industry, government, customers, 06/02/23 14

suppliers, and the financial community.

Contextual dimensions continued

 5. The organisation’s goals and strategy define the purpose and competitive
techniques that set it apart from other organisations. Goals are often written
down as an enduring statement of company intent. ->

 -> A strategy is the plan of action that describes resource allocation and
activities for dealing with the environment and for reaching the
organization’s goals. Goals and strategies define the scope of operations and
the relationship with employees, customers, and competitors.

06/02/23 15
Contextual dimensions continued

 6.An organisation’s culture is the underlying set of key values, beliefs,

understandings, and norms shared by employees. These underlying values and
norms may pertain to ethical behaviour, commitment to employees,
efficiency, or customer service, and they provide the glue to hold
organization members together.
 In summary the above environmental elements impact the very sustenance
and being of the organization

06/02/23 16
Structural versus contextual dimensions

 Structural dimensions provide labels to describe the internal characteristics

of an organizational archetechture. They create a basis for measuring and comparing
organizations.

Contextual dimensions characterise the

whole organization, including its size, technology, environment, and goals. They
describe the organizational setting that influences and shapes the structural dimensions.
Contextual dimensions can be confusing because they represent both the organization
and the environment. Contextual dimensions can be envisioned as a set of overlapping
elements that underlie an organization’s structure and work processes

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Components of Organisational Configuration

 Technical Core. The technical core includes people who do the basic work of the
 organization. This part actually produces the product and service outputs of the
 organization. This is where the primary transformation from inputs to outputs takes
 place. The technical core is the production department in a manufacturing firm, the
 teachers and classes in a university, and the medical activities in a hospital.
 Technical Support. The technical support function helps the organization adapt to
 the environment. Technical support employees such as engineers, researchers, and
 information technology professionals scan the environment for problems, opportunities,
 and technological developments. Technical support is responsible for creating
 Innovations the technical core, helping the organization change and adapt.

06/02/23 18
Components of Organisational configuration
continued
 Administrative Support. The administrative support function is responsible for the
smooth operation and upkeep of the organization, including its physical and human elements.
 This includes human resource activities such as recruiting and hiring, establishing
compensation and benefits, and employee training and development, as well as maintenance
 activities such as cleaning of buildings and service and repair of machines.

 Management. Management is a distinct function, responsible for directing and

 coordinating other parts of the organization. Top management provides direction,
 planning, strategy, goals, and policies for the entire organization or major divisions.
 Middle management is responsible for implementation and coordination at the
 departmental level. In traditional organizations, middle managers are responsible
 for mediating between top management and the technical core, such as implementing rules and 06/02/23 19
passing information up and down the hierarchy
 Goals and
Strategy
Environment Size

Culture Technology
Structur
e
1. Formalization
2. Specialization
3. Hierarchy of Authority
4. Centralization
5. Professionalism
6. Personnel Ratios

06/02/23
THE CONTEXTUAL DIMENSTIONS INTERACTING WITH THE
STRUCTURAL DIMENSIONS THAT SHAPE AN ORGANISATION’S
STRUCTURE AND SYSTEMBOTH INDIVIDUALLY AND
COLLECTIVELY
Charismatic heroic leadership

 Organisations became large and complex, and boundaries between functional

departments and between organizations were distinct. Internal structures
grew more complex, vertical, and bureaucratic.
 Leadership was based on solid management principles
 and tended to be autocratic; communication was primarily through formal
memos, letters, and reports. Managers did all the planning and “thought
work,” while employees did the manual labour in exchange for wages and
other compensation.
 Recall personalities like Admiral Nelson, Mahatma Gandhi, Sam Manekshaw as
discussed in the class.

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Recapitulating the meaning of an organisation

 It is an organised collection of parts that are highly integrated in order to accomplish an

overall goal.
 The system has various inputs which are processed in order to produce certain outputs that
together accomplish the overall goals desired by the organisation
 There is ongoing feedback among these various parts to ensure that they remain aligned to
accomplish the overall goal of the organisation.
 These systems may be simple or complex in design

06/02/23 22
LET US RECAPITULATE AND
INTEGRATE IN THE NEXT FEW SLIDES
 WHAT IS MEANT BY AN ORGANISATION
 INPUTS AND OUTPUTS
 WHAT IS AN ORGANISATION’S PURPOSE?
 WHAT IS IMPLIED BY THE TERM ORGANISATIONAL DESIGN?

06/02/23 23
Dangers to organisational contiguity and coherence

Corporate fraud
Misleading quality
Misleading customers
Environmental catastrophe
Corporate covers up the lies and forces  even more lies

and fabrication to cover up the original lie.

06/02/23 24
MAX WEBER THE PIONEER OF THE CONCEPT OF
BUREAUCRACY IN THE MANAGEMENT DISCIPLINE

06/02/23 25
The five core principles of a conventional Bureaucracy

 Rule 1
 Formal hierarchical structure:
 There is centralisation of authority of the planning and decision making in process within and across the
organisation. The rules and regulations are to be strictly followed and the subordinate must be accountable to
the immediate supervisor.
 There must be a well-defined hierarchy of authority with clear lines of authority and control which is
concentrated at the apex. Each level of management should be controlled by the level of management above it
in the hierarchy and they should control the lower management below them. This will help the organisation to
proceed in a single direction

06/02/23 26
Rule 2

 Formal rules and norms:

 This bureaucratic form of organisational structure in order to
function requires that strict rules and regulations to be followed
by the various level of management in an organisation which
points us to the attribute of formalisation.

06/02/23 27
Rule 3
 Specialisation:
 The organizations can be divided into many departments and units based on their
function. These departments are led and supervised by domain experts and
specialists.
 There is a high degree of job specialization in the employees and the management.
Specialisation endeavours to make the organisational operations efficient.

06/02/23 28
RULE 4

Principle of Impersonality
Employees are judged on the
basis of well laid out rules and on
merit. Well laid out procedures
are followed in managing
employees-grievance enquiry for
example.
06/02/23 29
RULE 5

Formalised selection
and recruitment
processes are followed
in hiring employees.
06/02/23 30
Inputs and outputs

 Inputs-man machinery, capital-aligned carefully and deliberately

to achieve outputs for the systems which could be sub modules-
components of services or entire products-which are tangible
results produced by the process of the system.
 Feedback comes form employees, markets and from the
external environment

 Organisations interact with the environment with certain

departments being directly involved while others being
indirectly involved.

06/02/23 31
Recapitulating organisational purpose

 -exists to arrange resources in the most efficient and effective way.

 -to support the organisation’s strategy or for now a road map. The
organisational structure is designed to achieve the organisation’s
goals and objectives.
 --effective clarity and co-ordination in organisation decision making
purpose.
 --to ensure review of organisational activities
 -- to provide a channel of communication
 ---to provide a framework to logically neuter and handle crisis and
problems and handle change
 --- to provide a platform to guide succession and change in
organisations.
06/02/23 32
So what does organisational design imply?

In simple terms organisational design

means how various parts of the
organisation and its distinct elements are
brought together in order to make it
functional. Organisational design
principles consider how these elements
come together match and the process and
ways through which they can be reflected
and improved upon.
06/02/23 33
What does organisational design aim at?

 The design aspects of the organisation broadly include how the

organisation is structured, the types and number of jobs and
processes and procedures used in creating an underlying
framework which enables the efficient interaction of inputs and
outputs to viz--
 A) handle and pass information
 B) make decisions
 C) produce results
 D) manage quality.

06/02/23 34
The key considerations underlying any organisational design
process

 Planning and decision making---setting the organisational goals and how best to achieve them
 Organising =determining how best to group activities and resources
 Leading-Motivating employees to work in the best interests of the organisation
 Controlling-Monitoring and controlling to achieve the best interests of the organisation.

06/02/23 35
The typical steps involved in an organisation’s design

 Step 1Creation of a strategy a road map and a logical plan of action. Creating a strategy does not mean organising. Organising means
connecting people in meaningful and purposeful ways and interlinking and aligning them with technology and information in the most
efficient way possible
 Step 2Creating an organisational structure which defines formal relationships among people and defines their roles and responsibilities-
GM versus clerk etc.
 Step 3 Creating Administrative systems to maintain and cohesively coordinate organisational governance through systematic procedures
and policies.
 Information and technology define how members achieve organisational outcomes

 Steps 1-3 aim to create a framework to direct the activities of people towards a common purpose because collective action is always
superior to disparate individual effort.

 The process of organisational design matches people information and technology to the purpose, vision and strategy of the organisation.
Structure endeavours to provide a platform for communication and information flow within and across people and roles. System is the
superstructure of structure mobilises structure by providing it with necessary linkages to translating the structure into action by moving
decisions, information and individual responsibility. Technology provides the components to translate the human efforts to outputs.

06/02/23 36
 The end product of any organisational design process is an integrated system of people and resources tailored to the specific purpose of
the organisation.
Optional Reading

02/06/2023 37
What are the five mindsets of a good manager?

 ----->The SYSTEMIC ACTIVITY OF MANAGING BREATHES LIFE INTO AN OTHERWISE MEANINGLESS

ENTTIY OF AN ORGANISATIONAL STRUCTURE CONSISTING OF POSITIONS AND ROLES

 ——>HIGHLIGHTS THE ACTIVITY OF MANAGING AND THE KEY COMPONENTS OF THAT ACTIVITY.

 ——->CONSIDERING THE ORGANISATION AS THE SUM TOTAL OF ITS PARTS WHICH CONSISTS OF
STRUCTURE AT FIRST LEVEL, SYSTEM AND PROCESS AT THE SECOND LEVEL AND CULTURE THAT
AFFECTS ALL THE THREE LEVELS. HELPS US UNDERSTAND THE MEANING OF AN ORGANISATION
THROUGH THE ACTIVITY OF MANAGING IMPACTS ALL THE LEVELS OF THE ORGANISATION.

06/02/23 38
 ——-> IT PROVIDES A ROADMAP FOR FUTURE MANAGING AND THROUGH THAT ROADMAP HELPS
YOU TO UNDERSTAND WHAT MANAGING IS AND NOT AND WHAT IT OUGHT TO BE?
So what does a manager do?

She or he reflects because without self-refection there can neither be insight or

self-knowledge.
The manager does not have a private language –he gathers information and
processes it and he can only do so by interacting with colleagues which means
collaboration.
Analysis is looking the organisation both through a telescope and a microscope
to understand what an organisation is up-to by decomposition of its activities.
Beyond the organisation we consider the world around the organisation with
which it interacts the worldly mind-set
Finally we have action mind-set-which pulls and rivets everything through the
process of self-change, relationship, organisation and context.
06/02/23 39
So what is management –it is an integrative
activity that interlinks strategy, design,
structure and process.
 Managing the self-reflective mind-set
 Managing organisations-The analytical mind-set
 Managing context-the worldly mind set
 Managing relationships-the collaborative mind-
set
 Managing change-the action mind-set
06/02/23 40
The Reflective Mind-set

The ability to look beyond one’s nose

The ability to bring the world within the span of
one’s nose and integrate present, past and future.
Turning attention inward to turn it outward-great
history of deals and disasters but also the minute
nuts and bolts of organisational components.

06/02/23 41
What does it mean to be analytical?

To go beyond the obvious decomposition, division of labour and organograms to

understand how analysis works and what impact it has on an organisation
Going beyond numbers and easy techniques- to the prejudices and values underlying
each choice-not simplifying complex decisions into bitty sized modules but sustaining
the organisations ability to retain complexity
Where people came from-their biases, their values, their agendas
The kind of data that would be overlooked but may be ignored.
And their own prejudices and biases which were subconsciously obstructing their
thinking. 06/02/23 42

Appreciating the score and the crowds while watching the ball
What does it mean to be worldly?

 Being worldly does not require global cover­age, just as global coverage does not a
worldly mind-set make. Indeed, global coverage does not even ensure a global
perspective, given that the managers of so many "global" compa­nies are rooted in the
culture of the headquar­ters' country. But there are companies that seem to be reasonably
global as well as worldly
 Changing ones perspectives and concepts
 Personal contacts within and across cultures
 Respect and adherence to local cultures and laws.
 Getting to the ground and choosing from a wide repertoire of experiences across
geographies.

06/02/23 43
The worldly mind-set puts the reflective mind-set into context

 The worldly mind-set encapsulates the similar, interdependent and yet different into the process of managing.
 Not being insensitive to the local culture and slapping a worker in full public view[Hyundai example in India].
 Changing one’s perspective and thought process and viewing things from the other person’s viewpoint

 Therefore to manage context is to man­age on the edges intersections fuzzy areas boundaries, between the organisation and the
various worlds that surround it-cul­tures, industries, companies.
 Mediating wide zones where organisation meets context –customers and markets however differentiated using products in
their particular ways.

06/02/23 44
The worldly mind-set recapitulated in
Mintzberg’s views-
 What matters is attention paid to particular responses
 to specific conditions.
 Local consequences are a key indicator of performance, which has to add social as well
as economic value. Companies are responsible for the local consequences of their
actions.
 Landing in different places, we join a plurality of worldviews.
 This is a world made up of edges and boundaries, like a patchwork.

06/02/23 45
The collaborative mind-set

 Going beyond rational choices and asset assumptions

 Viewing people as human beings and their relationships among teams and
projects across divisions and alliances.
 Getting beyond empowerment and freedom to actually take decisions by
managerial sanction translating into commitment.
 Going beyond heroism to listen and not judge immediately, allowing people
to collaborate, trusting them take control and arrive at decisions.

06/02/23 46
What does the collaborative mind set
out to do?

Rather, they help to establish the

structures, conditions, and atti­
tudes through which things get
done. And that requires a
collaborative mind-set

06/02/23 47
 Summarising the collaborative mind-set -1
t

Managers
 are important that they help other people do the important work of

developing products and delivering services.

An
 organization is an interacting network, not a vertical hierarchy.

Effective
 leaders work throughout; they do not sit on top.

Out
 of the network emerge strategies, as engaged people solve little prob­lems that

grow into big initiatives.

Implementation
 s the problem because it cannot be separated from formulation.
06/02/23 48

That is why committed insiders are necessary to come up with the key changes.
Summarising the collaborative mind-set 2

 To manage is to bring out the positive energy that exists naturally

within people.
 Managing thus means inspir­ing and engaging, based on judgment
 that is rooted in context.
 Rewards for making the organization a better place go to everyone.
 Human values, many of which cannot be measured, matter.
 Leadership is a sacred trust earned through the respect of others.

06/02/23 49
The crux of collaboration as summarised
by the authors-

Reflectively collaborative

Analytically worldly

06/02/23 50
What is action-

The dominant view of managing change is Cartesian: Action results

from deliberate strat­egies, carefully planned, that unfold as
systematically managed sequences of decisions.
The dominant view of managing change is Cartesian[I think
therefore I am my mind is enough to understand the world
and the world is a sanitised clear cut world where if
decisions are carefully thought through everything would
be fine. His example of Monsanto]:-- Action results from
deliberate strat­egies, carefully planned, that unfold as
systematically managed sequences of decisions. 06/02/23 51
The action mind-set-

 Mobilise energy on the things that need changing

 Retaining the rest
 Moving organically rather than following a mechanistic series of steps.
 Tweaking structure and processes by carefully listening in to the ground
Carefully being alert, cautious and experimental
Going beyond tired clichés of middle manager resistance and seeing through the
other person’s shoes what she or he is self-changing for creating better
operational performance.

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 Weaving and Sewing.
 Analyse-act-reflect-collaborate- being world-act-new insights-means back to analysis

 Careful weaving of each mind-set over each other to create what we understand to be an
organisation through the process of managing.

 This weaving process has to be balanced and in proportion.

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