NMIMS GLOBAL ACCESS

SCHOOL FOR
CONTINUING EDUCATION

NMIMS GLOBAL ACCESS

SCHOOL FOR CONTINUING EDUCATION (NGA-SCE)

MANAGEMENT THEORY AND PRACTICE

Ans: -1 Changing the culture of an organisation is one of the most difficult

leadership challenge because, its culture comprises an interlocking set of goals,
roles, value, communication practices, attitude and assumptions.

The most fruitful success strategy is to begin with leadership tools, including a vision
or story of the future, cement the change in place with management tools.

To discover how Indian leaders drive their organizations to high performance, we

study the conversation of their interviews, leaders at Infosys, Reliance, Tata, and
Mahindra & Mahindra and many other companies. A picture rises of a distinctive
Indian model. None of them suggested that the company had succeeded because
of their cleverness at strategy, nor even the efforts of top team. Their source of
advantage lay deep inside in their people.

These leaders investing in people. They make aggressive investment in the

employee development.

This is true that Indian firms and their leaders are not virtuous. Corruption and
misleads can also be found in the Indian business community as sure as in any
other. Not all Indian executives are saints or sages.
The leaders of the most successful Indian companies do engage with their country,
culture and employees in a characterstic way.

Ratan Tata set a new atrategic course for the Tata Group when he look it over,
against some internal opposition he decided that company had to go globalin part
to reduce the risk of dependency on a single country’s economy.

He led many companies to acquire for example Tetley group, Daewoo Commercial
vehicle and the Taj Boston. Now half the companies revenue comesfrom other
countries.

Devi Shetty the founder of Narayana Hrudayalaya Hospital help the thousand of
Indian children whoo need cardiac surgery but they can’t afford it to do.

Bharti Airtel sees its mission as getting cell phones into the hands of the hundreds
of millionsof people in Indiawho have no way to communicate with one another.

Max Life Insurance is another India’s nw insurance productand combines life

insurance with saving in a model that allows people erratic incomes to pay whatever
they can, whenever they can.

IT companies like Cognizant and Infosys their social mission is to make India
and Indian companies to compete and win on the international stage.

Finally, the best Indian companies have a social mission and a sense of national
purpose because it helps employees to find out meaning in their work.

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Ans: -2 The earliest organizations were shaped by work. This was mainly from
necessity. When a certain type of work, or work-product was required, people with
the appropriate skills were recruited, and specifically organized to accomplish the
work.

Work-Shaped Organizations: The Rise of Business Bureaucracies

As the time has passed the work became more complex and the complexity of the
firm doing the work also increased. It gave rise to the bureaucracy. Factory
automation, management theories, human resource management and computer
technologies provided cast improvement throughout a business. Due to the
improvements which is realized by these emerging elements the old structure of
organisation were no longer important. This allowed bureaucracy such as executive
management and human resource to restructuring their organisation.

Characteristics of the Bureaucratic Organization are:

 Production methods designed against work-type
 Inflexible business processes
 Methods of production difficult to change
 Tight dependencies of workforce, procedures, and methods
 Clear lines of functional divisions
 Breaks in workflow between functions
 Compartmentalized automation
 Rigid job descriptions
 Long Management hierarchy chain
 Slow to decide, slow to execute
 Decision making at odds with changing business needs

Changes in Production Methods: Sustaining Bureaucracies

After the rise of Bureaucracy the large companies were making huge investments
into dividing their functional areas. Now these companies started overhauling their
software system that support their all operations. They need one system for sales,
another for purchasing, another for inventory, and another for shop floor control,
other for planning, and other for engineering. This result a large overhead of middle
management and ensuring the organisation the right paper work delivered to the
right person in the right department at the right time.

The Customer-Driven Era: Challenges to Business Bureaucracies

After the long time, market has changed, competition grew and customers began to
have choices. It means that companies could not design, manufacture, develop and
sell goods based on their own internal goals and choice. Because of this
management struggled to align their organisation to take advantage of modern
achievements.

The following points illustrate the characteristics of bureaucracies, and the demand
of today’s business environment.

Traditional Bureaucracy Today’s Environment

Large Decision Queues Need Quick Decisions

Work Navigates Slowly Work Product Done Quickly
Inflexibility Slows Progress Need to be Adaptive
Paper-Based Processes Automated Workflows
Large Middle Management Flattened Hierarchies
Rigid Roles and Rules Flexible Roles and Rules

As companies “re-invent” themselves today to meet tomorrow’s challenges. Without

true change at the center, other improvements become ancillary, short-term, low-
impact, and/or costly.

Until companies are truly challenged at the business viability level, bureaucracies
will remain in place. The post-bureaucratic era has created more flexible
organizations, but often retains characteristics of the old bureaucracies. Once a
company understands their new role in today’s world, they can begin to create
organizations that are far more capable than traditional bureaucracies.

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Ans: -3 (a.) The biggest problem of this case is that Jacob was over worried for his
job as he cannot accept the upcoming changes in the organisation. He has just
came to know about ERP implementation in the organisation which is right now in
the news only and he is determining about his abilities.

Another problem is that Jacob has a strong feeling of insecurity about his job and
he started searching for other opportunity to move out of the organisation. He don’t
want to accept the changes as he is worried for his job. He thinks that the new
software technology will take over his job.

Ans: -3 (b.) The changes are important for a company to make a transition from its
current state to some desired future state. Technological changes are often
introduced as components of large strategic changes.

Following principles for change management:

Address the “human side” systematically: A formal approach for managing

changes- beginning with the leadership team. The change management approach
should be fully integrated into program design and decision making. It should be
based on a realistic assessment of the organisation history.

Start at the top: Because the changes is inherently unsettling for people at all level
of an organisation, when it is on the horizon all eyes will turn to the CEO for strength,
support and direction. The executive team also needs to understand that, although
its public face may be one of unity, is composed of individuals who are going through
the stressful times and need to be supported.

Address culture explicitly: When the culture is understood, it should be addressed

as thoroughly as any other area in change program. Leaders should be explicit
about the culture and support the new way of doing business. Company culture is
a shared history, explicit values, common attitude and behaviors.
A consumer goods company with having premium brands determined that business
realities demanded a greater focus on profitability and accountability.

Prepare for unexpected: No change program goes completely according to the

plan. Change management plan needs continual reassessment of its effects and
ability to adapt another wave of transformation in organisation.

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