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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

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

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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

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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

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organization

Structure Anatomy

Processes Physiology

Behavioral Psychology

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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

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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

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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

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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

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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.

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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

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I. Structural and Domain retrenchment

II. Structural Retrenchment and Domain Reorientation

III. Structural Reorientation and Domain Retrenchment

IV. Structural and Domain Reorientation

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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

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STRUCTURAL RETRENCHMENT DOMAIN REORIENTATION

Increase vertical differentiation

Decreased formalization and standardization

Identify defensible core of products or markets

Increase effort within that domain

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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

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STRUCTURAL REORIENTATION DOMAIN REORIENTATION

Decreases in standardization

Decreases in formalization

Decrease in horizontal and vertical differentiation

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