Recap

Lecture No - 4

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 Organization Theory & Design applied to a Real Life
Situation
NBCC a company founded in 1964 as a State Owned Enterprise for taking up
primarily government works, over the time came into a situation where the
government was compelled to initiate action to sell the organization. Thus
resulting in great distress among its employees, suppliers, vendors and mainly
the dependents & family members of those who lived on this company for so
many years.
It required a major organization restructuring and redesigning applying the
Management of Organization Theory.

It is today a Navaratna Listed SOE.

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 Vision & Mission of NBCC
VISION
• To be a world class Integrated Engineering, Construction and Project Management
Consultancy Company aiming at accelerating Sustainability & providing
Excellence with utmost Governance.
• NBCC needs to focus to become a global construction giant who should cover the
entire spectrum of construction activities and services in the infrastructure sector.

MISSION
• To continue to be the building block of the nation by providing high quality,
sustainable infrastructure development across the nation through innovative &
world class construction solutions and optimizing value for all stakeholders and
providing utmost customer satisfaction.

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 Goal of NBCC
The strategic objectives in brief of NBCC are listed as follows:
To be the first ranked construction Business Company in India.
To adopt best practices and state-of-the art technology in construction business to
achieve a premier position and gain sustainable competitive advantage.
• Self-financing in view of limited availability of funding will drive those
companies which will have system in place for sustainable funding instead of
waiting for exchequer pocket.
• Public Private Partnership in Govt. Projects, Atmanirbhar Bharat Abhiyan or
Vocal for Local will also play significant role. Company needs to expand its
footprint in high technology and high value projects.

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 Goal of NBCC
• To achieve these objectives, the Company should endeavour to formulate strategic
alliances both in the domestic and foreign markets with other major private
players and participate in bids aggressively to further expand its horizon of
business opportunities. Focus should be on overseas opportunities being
undertaken by GOI on Line of Credit / Grant.

• Company also needs to formulate the strategy for inorganic growth by taking over
similar place CPSEs for maintaining the long term sustainability.

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NBCC (Pre 2000)

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NBCC (Post 2001)

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 Empowered Organization
COMPACT ORGANIZATION
Decision Making at 3 Levels
CMD

LEVEL -1

DIRECTORS

LEVEL -2 Regional Business Strategic Business

Groups Group

LEVEL -3

Projects
 Porter’s Competitive Strategies

Ryanair / Big Bazar / wall Mart

Edward Jones / Wagonr/Muthoot Finances
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Porter’s Competitive Strategies

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Miles & Snow‘s Strategy Model

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Miles & Snow‘s Strategy Model

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 Organization with Flexible Strategies

• The International Harvester Company was an American manufacturer of

agricultural and construction equipment, automobiles, commercial trucks,
lawn and garden products, household equipment, and more. Founded: 1902,

• BIC ; Société Bic S.A., commonly referred to simply as Bic and stylized as
BiC, is a French manufacturing corporation based in Clichy, France, best
known for making disposable consumer products such as lighters, razors and
pens. It was founded in 1945 

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 Comparison of Porter & Miles and Snow Strategy Models
Porter’s Competitive Strategies Miles and Snow’s Strategy Typology
Strategy : Differentiation Strategy : Prospector – works to compete
Organization Design Organization Design:
• Learning orientation: acts in a flexible, loosely knit way • Learning orientation: flexible, fluid, decentralized
with strong horizontal coordination structure.
• Strong capability in research • Strong capability in research
• Value and builds in mechanisms for customer intimacy.
• Reward employee creative, risk taking and innovation. Strategy: Defender
Organization Design:
Strategy: Low cost Leadership • Efficiency orientation: Centralized authority: tight cost
control.
Organization Design: • Emphasis on production efficiency: empowerment.
• Efficiency orientation: strong central authority: tight cost • Close supervision: little employee empowerment.
control, with frequent, detailed control reports. Strategy: Analyzer
• Standard Operating Procedures Organization Design:
• High efficiency procurement and distribution systems. • Balances efficiency and learning: product lines: emphasis
• Close supervision: routine tasks: limited employee on creativity, research, risk-taking for innovation.
empowerment Strategy: Reactor
Organization Design:
• No clear organization approach: design characteristics
may shift abruptly, depending on current needs.

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Indicators of Organizational Effectiveness

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Approaches to Measuring : Organizational
Effectiveness

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Four Approaches to Effectiveness Values

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Effectiveness Values for Two Organizations

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Major Stakeholder Groups and What They Expect

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 Students may look at some of the following links at
leisure
1. Indian Food Delivery
https://medium.com/@nikhildagalemet/porters-5-force-analysis-indian-online-food-
delivery-business-445d600b43b8
2. Airline Industry
https://www.business-to-you.com/porters-five-forces/
3. Wipro
https://casereads.com/porters-5-forces-model-on-wipro/
4. Tata Motors
https://tradebrains.in/porters-five-forces-competitive-analysis/
 5. Uber
https://innovationtactics.com/porter-five-forces/

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 Vision & Mission of NTPC
Vision
To be one of the world’s largest and best power utilities, powering India's growth.
Mission
Make available reliable and quality power in increasingly large quantities at
competitive prices and ensure timely realization of revenues.
Adopt a broad based capacity portfolio including hydro power, LNG, nuclear power,
and nonconventional and eco-friendly fuels.
Plan and speedily implement power projects using state-of-the-art technologies.
Be an integrated utility by implementing strategic diversifications in areas such as
power trading, distribution, transmission, coal mining, coal beneficiation etc.

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 Vision & Mission of NTPC
Develop a strong portfolio of profitable businesses in overseas markets including
technical services, generation assets etc.
Continuously attract and develop competent and committed human resources to
match world standards.
Lead fundamental and applied research for adoption of state-of-the-art technologies,
breakthrough efficiency improvements and new fuels.
Lead developmental efforts in the Indian power sector including assisting state
utility reform, policy advocacy etc.
Be a socially responsible corporate entity with thrust on environment protection, ash
utilisation, community development, and energy conservation.

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 Earlier Organization Structure
Ministry

BOD

CMD

Directors 6 Nos

ED Regions

Projects/ Station

OPTS CONST ENGG Contacts

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 Empowered Organization

Ministry /
CMD Directors
Owners

Regional Regional Regional

Stations Projects

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Thank You

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