Ms-11 Dec 2009
MS-11 Dec, 2009
MS-11 : STRATEGIC MANAGEMENT
1. Briefly discuss two important changes in the Indian Business Environment in each of the following areas giving examples.
—Economic
- Social
—Political
---Technological
2. Explain the different levels of strategy. Discuss the importance of strategy for an organisation.
3. What are Mergers and Acquisitions as a part of diversification strategy ? Discuss the different forms of Mergers with suitable examples. Give five reasons of Merger and Acquisition Strategy
4. Critically discuss the perspectives on strategy and structure with respect to :
a) Porter's Perspective
b) Peter and Waterman's Perspective
5. Write short notes on any two of the following :
a) Leadership styles
b) Diversification
c) Experience curve
d) Mckinsey's 7s framework
6. Read the analyse the case and answer the questions given at the end.
The mobile phone industry
Competitive rivalry
By 2004 the competitive rivalry between network operators was becoming intense in most countries. In the UK numerous different packages were on offer. Initially if a customer threatened to withdraw, operators would offer a new free phone and several free months of line rental as an enticement to stay. However, as markets matured, emphasis was placed on price, coverage, general customer service and the offering of new products and services (with the advent of 3G technology).
Buying power
Buying power of consumers was high as they had so much choice. The danger for providers was confusing potential customers with over-complex offers. Independent retailers (e.g. in the UK Carphone Warehouse) competed with those owned by network operators (e.g. Vodafone). Others offered cheaper deals through newspaper adverts and the internet.
Power of suppliers
Equipment manufacturers competed for market share. Prior to 3G launch the big manufacturers-
Nokia, Motorola and Ericsson - had concerns about market saturation. Supplier power was increasing as their sector consolidated through alliances (such as 'Casio and Hitachi in 2003). Network operators could be held back by supply difficulties as with the Hutchison (3-UK) launch of 3G services in 2003/4.
Threat of substitutes
In the 1990s the main threat of substitution was 'technological regression' where customers returned to fixed-line telephony because of high mobile call charges. By 2000 price decreases and the 'need' for everyone to have a mobile phone reduced this threat. By 2004 the greatest threat was the convergence of mobile telephony with PDAs (Personal Digital Assistants) and with the internet (e.g. MSN Messenger). This could switch both voice and text messaging onto the internet -avoiding mobile phone operator networks.
Location technology in mobile phones (making the caller easy to find) might encourage this 'drift'.
Threat of entry
The threat of entrants was low because of the enormous cost in both licences (-E22bn (€33bn) in the UK alone) and in the general investment needed to be a player in new 3G (broadband) technology.. Power was a function of who was ahead of the game in 3G and had the licences to operate a service. There was only a threat of entrants if public policy towards this heavy regulation of the sector changed in future.
Questions :
Viewing this industry through the eyes of a network operator (such as Vodaphone).
1. Which would you regard as the three most important threats to your business ?
2. How could you respond to each of these to lessen their impact ?
3. Answer questions 1 and 2 for an equipment manufacturer - such as Nokia.
4. What are the main benefits and limitations of five forces analysis ?
Ms-11 Dec 2010
MS-11 Dec, 2010
MS-11 : STRATEGIC MANAGEMENT
1. Briefly discuss the process of strategy
(a) for a Single Business Unit (SBU)
(b) for a Multiple Business Units. Illustrate your answer with the help of examples.
2. 'Technological factors represent major opportunities and threats which must be taken into account while formulating strategies. Critically comment on the statement keeping in mind the technological advances in the field of agriculture. Also explain how these advances have affected in tapping the opportunities available overseas.
3. Explain the relationship between corporate level strategy, business unit strategy and functional strategy. How are these strategies different from each other ? Explain with the help of examples.
4. Briefly explain 'Ansoff's Product Market Expansion Grid', as a useful tool in discovering growth opportunities.
5. Write short notes on any two of the following:
(a) Shell's Directional Policy Matrix
(b) Mother - Daughter Type structure
(c) Business Portfolio Analyks
(d) Strategic Alliances.
6. Read the following illustration and answer the questions given at the end : Agility through outsourcing with British Telecom
British Telecom (BT) promotes its outsourcing business with the strap-line 'Agility
through Outsourcing'. Many organisations both in the public and private sector have reviewed their internal processes and found that they lack the necessary resources to meet the increasing challenges put on them by changing demands of their customers... They have turned to companies whose core competences fill the gaps in their internal structure. They hand over the running of whole business functions, such as payroll or training, gaining the expertise they need to meet that step change requirement forced on them by the expectations of their customers, but at a predictable cost.
BT offers its clients the opportunity to outsource its information, communication and technology (ICT) functions to provide them with 'freedom from technology' : Making an investment in technology requires a great deal of expert knowledge to ensure that it becomes an enabler for business rather than a barrier to it. Often organisations find they don't have that expertise in - house. The solution is either buying that expertise in, further raising the level of investment, or handing over the responsibility of managing their ICT systems to a third party like BT that has the relevant skills at its core.
BT has such skills, it argues, because in its own transformation from a public sector organisation to a private company, it placed ICT processes and management at its core, reducing its own cost base and focusing on competitive advantage and customer care by aligning its people, processes and technology. The result is that it believes it can offer a:
Totally integrated approach to IT infrastructure, software systems and applications which enables us to manage more effectively on behalf of our customers... BT can take some or all of the operational responsibility on behalf of the clients' ICT departments.
We are able to provide a customised communication service that involves taking over the customer's existing network, including services from other carriers. All solutions are tailored to meet the specialised needs of each customer... our services will go to the extent of transferring assets including staffing resources. We buy the assets from our customers that we need to serve their top technology needs. As a result they get a capital injection by removing those assets from the balance sheet... these organisations can then plough the money they saved into products that benefit their core competences, focused on giving a high quality service to their customers.
BT suggests further benefits to potential clients. Its services : Greatly benefit organisations that have a specific process or service, which depends greatly on leading edge technology, but for which there is little in-house expertise. The benefits include :
• Achieving costs savings and predictable costs, improving piece of mind through reduced risk.
• Gain access to funds which otherwise would not be available for potential large scale projects.
• Reduce the risk of business change by involving economies of scale from BT.
• Increased agility to reach new markets or new geographies.
• Increased agility to change your business in line with changes in the environment.
• Take advantage of access to resources in expertise not available internally.
• Improve access to technology, innovation and scarce technical skills.
• Reduce management overheads and supplier interfaces.
• Achieve productivity gains leading to lower costs.
Questions :
(1) Other than ICT, what other areas of business operations might benefit from outsourcing ? Specify some of the benefits that might be gained.
(2) Given the benefits stated in this illustration why might businesses choose to keep their ICT or other business operations in-house ? Explain.
Ms-11 Dec 2011
MS-11 Dec, 2011
MS-11 : STRATEGIC MANAGEMENT
1. Distinguish between
(a) Strategy v/s Policies
(b) Strategy v/s Tactics and explain giving examples.
2. How does the value chain framework work as a guide to any firm's strengths and weaknesses? Give examples in support of your answer.
3. (a) Discuss the cost of differentiation under following leads :
(i) Training.
(ii) Promotion of a product.
(iii) Hiring skilled workforce.
(iv) I mproving quality of the product.
(b) Discuss the Advantages and Disadvantages of Differentiation.
4. ' An organization can "go international" by crossing domestic borders as it employs various growth stratagies'. Keeping the statement in mind explain various ways through which a firm can expand internationally. Give examples in support of your answer.
5. What are the different methods of control ? Discuss them in brief giving examples.
6. Read The following case and answer the questions given at the end.
Abhinav Kumar never failed to enjoy his company's establishment-day jamboree. That was one time in the year when his company, Total Industries, really splurged on its employees. Assistant managers and about 122 of them-would be flown into Mumbai from all the branch offices, and lodged in hotels for 2 days.
The get-together cost the company Rs. 50 lakhs, but Kumar knew it was a small price to pay for the credibility it generated. After all, Total was no longer the textile peddling, one-man outfit his grandfather had founded back in 1927. Rather, it was a Rs. 6,000 crores plus conglomerate with interest in consumer electronics, switchgears, batteries, soaps and oils.
Being a largely family managed company, Total is likely to be perceived as a benevolent
employer. Today, watching is employees come together. like a big family, Kumar felt proud about his grand-father and father. He turned his gaze to where his father was sitting, 2 tables away to his right, chatting animatedly with Srikant Suresh, President (Consumer Durables Division). In another 5 minutes, Kumar Senior would be up on the dais, making his annual address to the empolyees. Kumar knew what his father would be talking about. They had discussed it over dinner last night. Ratika Sahai, the young President (Batteries), took the microphone as soon as the evening's last item, a dance recital, came to an end. "Thank you Rachana for your wonderful performance. Ladies and Gentlemen, before we wrap up this evening. I would like to invite our Chairman to the dais for his customary address". Amidst loud applause, Deepak made his way to the dais.
"I hope all of you had a good time over the last 2 days. Although this is only our fourth get-together in as many years, I feel a tremendous sense of belonging. I hope you feel the same because, as a company, we will prosper only when all of us contribute our
best".
Total Vision 2010'
To become a market-leader in each of the four business segments by ensuring total
quality, customer satisfaction, and continuous innovation.
"As I see it, " Deepak continued," the challenges before us are many. We need to become a more efficient company. We need to become more cost-competitive. Our products need to be of better quality, and we need to become more customer-friendly. The business environment today is vastly different from what it was when I joined Total. Unless we regularly re-vitalise the organization, change our mindsets, and revisit our basics, we cannot be competitive. What kind of company should Total be in another decade?"
For about half a minute nobody replied. Then, Manoj Kohli, the President of the switchgears division, stood up to answer the question. "Probably the largest company in the country", he said.
"Certainly the largest company, Manoj, but also the market-leader in all the segments we choose to be in", Deepak elaborated. "Do all of you feel that way ?" he threw the question at the audience.
"Yes," pat came the chorus.
"Let's keep that in mind when we return to our jobs tomorrow morning, and work towards making it happen. Once again, thank you all for being here, and I hope it was worth your while," Deepak said concluding his address. Kumar met up with his father near the exit, "Sir can you give me a ride back home," he asked. Kumar always "Sir-ed" his father in front of other executives.
"What happened to your car ?"
" I have it but I want to talk to you".
Deepak gave him a quizzical look but did not say anything. After saying good bye to his departing colleagues, Abhinav joined his father who was already seated in the car.
"So, what do think dad? Did it go off well ?"
"Of course, it did. Do you have any doubts?"
"Not about the party but something did strike me as odd."
"What ?" Deepak asked, his curiosity piqued.
"Remember when you asked what kind of a company Total should be in another 10 years?"
"Yes, What about it ?"
Didn't it strike you as odd that there was a long silence before Manoj replied ?
"I think they were hesitant. It's not everyday that I ask them a question like that."
"They were hesitant, dad, but not because they were shy. Don't you realize they don't know what we want Total to be ?rThey do not know what our vision for Total is."
"Bah ...don't give me your management jargon. I don't care if they don't know of our
"vision". We have done perfectly well over the last 73 years without your 'vision' thing," Deepak scoffed.
"Those days, our executives just took orders from you and grandpa. But, today we are asking them to act like profit-centres: Don't you think having a common vision which
everybody knows about will help ?"
"Do you think Total got to where it is today without a vision ?"
"No. But the vision is locked up inside the heads of people like you, me, and our top executives. We have not discussed its contours and documented a formal statement".
"I don't know' Abhi, I would still trust my gut feel than go by some fancy vision
statement. It looks good hanging from your office wall".
"No, dad," Abhinav persisted. "It's just like you and I having our breakfast or dinner
talks. Only, this time it will be communicated to all the employees in the company".
"I don't feel comfortable about your management mumbo-jumbo. But we will do it
anyway".
The car pulled into the drive-way of their sprawling mansion.
"Thanks, dad. Eventually, you'll see that it works."
"I hope so, Good night, son". Next morning, Abhinav asked his four presidents-Srikant
Suresh of Durables, Manoj Kohli of Switchgears, Guneen Roy of soaps and oils, and
Ratika Sahai of Batteries-to join him in the conference room. Without much ado, he
got to the point as soon as the meeting began.
"Tell me something frankly. Do you think Total has a vision where it wants to go?"
His audience of 4 was momentarily taken aback by the question. They looked at each
other, before Guneen replied : "Of course, aren't all of us committed to making Total
the best company in the industry?"
There are two things involved here, Guneen. One, only you and I seem to know where
Total is headed. And two, even we see the final goal differently. We have been so
caught up with our day-to-day operations that we haven't articulated the big picture".
"You are right, "Kohli said.
"But how do you develop a vision, for a company that is as diversified as ours ?"
Questioned Ratika. "Should we find a common thread that runs across all our businesses and build the vision around it, or develop separate vision statement for each of them?"
"I think the unit-specific vision would make sense provided we were to spin off our divisions into separate companies, "Guneen said... "Given our current position, we should identify the unique set of skills that straddles the 4 divisions".
"In fact, I do see some common characteristics," said Kumar "One, our businesses are volume-driven. Two, the sales are largely dealer-led. Three, our products cater to the mass market, and they are sold on the economy plank. So, what is the core proposition
that binds them all ? Obviously, it is value-for-money. So, should our vision be built
around this proposition ?"
It's my sense that we should," Kohli said "Look at our market shares. In refrigerators, we have 1/5 th of the market; it's 23 percent in switchgears, and 17 percent in CTVs.
Our market share in batteries is modest because it's a relatively new business for us. Of course, soaps and oils is a legacy business, which Guneen is trying hard to turn around".
I feel that connected to the issue of vision is also the question of strategy," Ratika noted.
"It must make a fit with the vision."
"I think this is what we should do", Kumar opined. "As a first step, do an in-house vision poll to find out what our people feel about it. We'll work on the strategy thereafter."
It took Total about 2 months to finish the in-house poll. The results were revealing.
There was a stark absence of vision awareness below the middle-management level. In fact, the clerical cadre was not even sure that Total had a vision.
"This is scary, dad," Kumar had told his father the evening the poll results came in.
"But do you think all our employees are capable of understanding the complexities of the business ?" his father had asked.
"May be not, but they'll appreciate transparency. And if we keep our vision simple-not simplistic, though I don't see why they won't buy it".
"I have my reservations, Abhi. Can we develop a meaningful, shareable vision for all our businesses ? How should the vision be put across, and how should we manage the mechanics of developing this vision without trivialising what we have toiled to build over the years, or scaring our employees away with too high a vision ?"
QUESTIONS :
(a) What should be the basis of the vision statement of Total Industries: Value for money or anything else ? Explain clearly.
(b) How can Total Industries develop a meaningful shareable vision for all its businesses ?
(c) Is it possible for Total Industries to develop the vision statement through active employee involvement and participation ? If yes, outline the steps in a sequential way.
(d) What are the dangers of building a vision statement through a bottom-up process ?
Ms-10 june 2007
MS-10 june, 2007
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1.Distinguish between the Functional and Product organisation and Une & Staff organisation. List out their merits and demerits with examples.
2. Describe the skills required for becoming a successful change agent and briefly discuss the role of a change agent.
3. Briefly describe the erherging trends in work organization and discuss how they affect the quality of work life of employees, with suitable examples.
4. Describe the meaning and purpose of job design and various approaches to job design and their relevance.
5. Write short notes on any threeof the following :
(i) Inverted pyramid structure
(ii) Intervidru as a diagnostic tool
(iii) Organisation vs. institution
(iv) T-Group training
v)Mechanistic vs. Organic organization
6. Read the following case carefully and answer the questions given at the end :
If lean and mean could be personified, Percy Barnevik would walk through thr door a thin bearded swede Barnevik is Europe's leading hatchet man. He is also the creator of what is fast becoming the most successful cross-border merger since Royal Dutch Petroleum linked up with Britain's Shell in 1907.
In four years, Barnevik, 51, has welded ASEA, a Swedish engineering group, to Brown Boveri, a Swiss competitor, bolted on 7 more companies in Europe and the [J.S., and created ABB, a global electrical equipment giant that is bigger than Westinghouse and can go head to head with GE. It is a world leader in high-i peed trains, robotics, and environmental control.
To make this monster dance, Barnevik cut more than one in five jobs, closed dozens of factories, and decimated headquarters staffs around Europe and the [J.S. Whole businesses were shifted from one country to another. He created a corps of just
25 global managers to lead 21,000 employees. IBM has talked with Bamevik and his team. about how to pare down its own overstaffed bureaucracy. Du Pont recently put Barnevik on its board. Says a senior executive at Mitsubishi Heavy Industries :
"They're as aggressive as we are, I mean this as a compliment. They are sort of super-Japanese." ABB isn't Japanese, nor is it Swiss or Swedish. It is multinational without a national identity, though its mailing address is in Zurich. The company's 13 top managers hold frequent meetings in different countries. Since they share no common first language, they speak only English, a foreign tongue to all but one. Like their boss, senior ABB managers are short on sentiment and long on commitment. An oil portrait of a l9th-century founder of Brown Boveri hangs in ABB's headquarters, but few are sure what his name is. (lt's Charles Brown.) Ask for a fax number, though, and you're likely to get two, office and home.
To Barnevik, today's competitive market economy is a "cruel world". Not making it any kinder, he has launched a personal war on what he sees as excess capacity
- 2% to 3% in the electrical equipment industry in Europe alone. Educated in Sweden and the U.S. (he studied Business Administration and Computer Science at
Stanford in the mid-1960s), Barnevik thinks European industry must be restructured massively to become competitive in world markets. He foresees billions of dollars of mergers and acquisitions in the next three to five years. Europe's best strategy against the Americans and Japanese, he national markets. believes; is to break free of, protected
Before the merger, Brown Boveri had 4 people in Baden, Switzerland. ASEA had as nrqny as 2, in Vasteros, Sweden. The combined company now employs just 15 in a modest six-storey building across from a train station in west Zurich. Where did everybody go ? Many were fired. The rest were sent to subsidiaries or off ered jobs in new companies set up to assume rnany headquarters functions. (ABB Marketing Services, for exarnple, creates. and mns and campaigns for ABB, but
. also takes on a few other clients. And Bamevik expects it to make money.) It's not just cost cutting Barnevik is after, though that is obviously irnportant. Says he : "ldeally you should have a minimum of staff to disturb the operating people and prevent them from doing their more importdnt jobs. "
Bamevik's master matrix gives all employees a country manager and a business sector manager. The country managers run traditional, national companies with local boards of directors, including eminent outsiders. ABB has about 2 such managers, most of them citizens of the country in which they work. Of more exalted rank are 65 global managers who are organized into eight segments : transportation, process automation and' engineering, environmental devices, financial services electrical equipment (mainly motors and robots), and three electric power businesses : generation, transmission, and distribution. Barnevik is well aware that the once popular management by matrix is in disfavour in the U.S. business schools and has been abandoned by most multinational companies. But he says he uses a loose
Decentralized version of it the two bosses are not always equal that is particularly suited to an organization composed of many nationalities
The matrix system makes it easier for managers like Gerhard Schulmeyer, a German who heads ABB's U.S. businesses as well as the automation segment, to make use of technology from other countries. Because of the matrix, Schulmeyer has a better idea of what is available where. He says that the techniques developed by ABB in
Switzerland that he uses to serviee U.S. steam turbines are more reliable and efficient than those of General Electric and Westinghouse, his main American competitors. Schulmeyer also relied on European technology to convert a Midland, Michigon, nuclear reactor into a natural gas-fired plant, ... ABB executives say the value of the company's matrix system extends beyond the swapping of technology and products. For example, the power transformer business segment consists of 31 factories in 16 countries. Barnevik wants each of these businesses to be run locally with intense global coordination. So every month the business segment headquarters in Mannheim, Germany, tells all the factories how all the others are
doing according to dozens of measurements. If one factory is lagging, solutions to common problems can be discussed and worked out across borders.
Questions
(a) How is ABB achieving integration and coordination of its global operations ?
(b) Which of the four basic departmentalization formats Explain.
(c) Has Barnevik created an effective balance between centralization and decentralization ?
(d) How does ABB apparently avoid unity-of-command problems with its matrix structure
Ms-10 june 2008
MS-10 june, 2008
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
l. Describe Organisational Design. By focussing on efficiency, highlight some of the factors affecting organizational design.
2. Compare the vertical and project organisation structures and their relevance in the present-day context. Illustrate with suitable examples.
3. Identify the emerging issues related to quality of working life. What is the relevance of QWL in the modern context, with suitable illustrations ?
4 Discuss resistance to change with reference to individuai and organisation. How would you overcome it ? Cite an example from organisational context.
5. Write short notes on any three of the following :
(a) Questionnaire as a diagnostic tool
(b) Business Process Reengineering
(c) Task force
(d) Architectural Ergonomics
(e) Role of CEO in Institution Building
6. Read the following case carefully and answer the questions given at the end :
The middle managers of a large firm were told by the corporate human resources office that a group of consultants would be calling on them later in the week.
The purpose of the consultants' visit would be to analyze cross-functional relations throughout the firm. The consultants had been very effective in using an OD intervention called team building. Their particular approach used six steps. When their approach was explained to the managers, a great deal of tension was relieved. They had initially thought that team building was a lot of hocus-pocus, like sensitivity training, where people attack each other and let out their aggressions by
heaping abuse on those they dislike. By the same token, these managers generally felt that perhaps the consultants were not needed. One of them put it this way : "Now that we understand what is involved in team building, we can go ahead and conduct the sessions ourselves. All we have to do is to choose a manager who is liked by everyone and put him or her in the role of the change agent/consultant. After all, you really don't need a high priced consultant to do this team-building stuff. You just hgve to have a good feel for human nature." The other managers generally agreed. How ever, the corporate human resources director turned down their suggestion. He hired the OD consultants to do the team building.
Questions :
(a) Bring out the main features of this case.
(b) What is a team building approach to organization development ? Do you think the managers had an accurate view of this OD technique ?
(c) Do you think that the managers had an accurate view of the role of external consultants ?
(d) What will be your plan of action in the situation
Ms-10 june 2009
MS-10 june, 2009
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1. Describe the importance of organizational diagnosis and different perspectives which could be used for analysing organisations and their purpose.
2. Discuss the various approaches in understanding organisation.
3. Explain the factors for an effective job design. Describe any two approaches to job design and their merits and demerits.
4. Discuss various steps involved in phases of planned change and their relevance
J. Write short notes on any three of the following :
(a) Skills of a change agent.
(b) Matrix organisations.
(c) Stages in organisation Development.
(d) Task force.
(e) MacDonaldisation.
6. Read the following case carefully and answer the questions given at the end.
Mr. Krishna Rao was utterly baffled. He took over office four months ago and has since initiated. several changes all of which are good. His main intentions in making the changes were that the office should look more professional and the employees should be facilitated to become productive without making them work too hard. The office now indeed looks more spacious with the new layout, and in fact, his colleagues from the other departments who pass by comment on how nice and professional the office looked ! Mr. Rao had put the secretaries' desks close to their bosses' cabins so that they did not have to walk up and down all the time. Previously, they were huddled together in the secretaries' pool, and whenever they had to take dictation which was several times a day they had to walk quite a bit.
He also purchased new calculating machines for the department which are quick, efficient, and accurate, so that the assistants now do their calculations without making mistakes. In fact, he had just placed an order for a high-speed computer
which would take away the boredom and monotony of all the laborious human calculations and would be a boon to all. Actually, once the computer is installed, the managers will not have to be dependant on the lower level staff. Whatever statistics or information the managers need, the computer will generate the data in no time at all. And the computer manufacturer was going to offer free programming sessions for all those who wanted to attend them. Manuals will also be made available to all the staff. It was the best of all possible worlds for the entire department and Mr.Rao could not understand why the staff were not more enthusiastic and some acfually seemed rather unhappy.
Questions :
(a) Identify the problems in this case.
(b) what kind of changes were prescribed by Mr.Rao and why ?
(c) Discuss why the changes did not produce the desired results in this situation.
(d) If you were Mr.Rao, how you would have handled the situation ?
Ms-10 june 2010
MS-11 june, 2010
MS-11 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1. Describe any two types of organisation structures and relate their significance to restructuring. Explain with suitable examples.
2. Discuss the current trends in the study of work organisation and their effect on the work culture.
3. Describe Questionnaire as a tool for analysing an organisation and its merits and demerits.
4. Explain Lewin's model in process of change and interventions in Managing Resistance to change.
5. Write short notes on any three of the following :
a) Task force.
b) Process consultation.
c) Quality of work life.
d) Institution Building.
(e) Competencies required for a change agent.
6. Read the following case carefully and answer the questions given at the end.
In mid-1984, Mr. Mahmood, the general manager of Westward Exports Ltd., Karachi, Pakistan was striving to implement a management information system. He was facing resistance from Mr. Saleem, his most senior supervisor. Mr. Mahmood wondered what he could do to overcome this resistance.
Westward Exports was an exporter of ladies' cotton garments. It was a private company established in 1971, a family-run business, all four directors being brothers.
Over the past 14 years, the exports of the company had grown from Rs. 0.71 million in 1972-73 to Rs. 59.76 million in 1984. Almost 90 per cent of the exports went to the USA. It owned no manufacturing facility of any kind. It purchased cotton cloth from six different textile mills and had the cloth dyed and printed. This fabric was then passed on to 138 stitching subcontractors. The company had been expanding the product line over the years, and by 1983 it was exporting about one million garments in over 100 basic designs. 'The 100 designs were presented in a range of fabric types, shades, designs and sizes. When seen in the context that the company got all these things done through subcontractors, the managerial control of the operations became quite challenging. The directors, who had always been actively involved in each and every aspect of the business, and made all the decisions themselves, felt the heat of the changing situation. They appreciated the problem, and decided to hire some professional assistance to bring more control to their operations.
Mr. Mahmood was hired in late 1983 to be the new general manager. He was an agricultural graduate who had about 15 years of marketing and sales experience with a multinational organization. He had also attended more than a dozen management development courses. The directors were confident that he could introduce some new control measures to help ensure the continued success of the company. Mr. Mahmood quickly determined that if Westward Exports was to remain in business, it must immediately eliminate the haphazardness in its operations. No proper costing, no scheduling, no progress sheets or order status reports, no follow-up charts, or for that matter no control procedure worth the name existed. "It was all so nebulous," he concluded. He worked late hours to comprehend fully the nature and scope of the company's business and its coordination and working relationships with the contractors.
Almost immediately, he started to design a proper system to help cure the lack of control
and information available.
Out of about 200-odd employees in the company, the key operating manager was Mr. Saleem. Saleem joined the company in 1973 as a production officer, nearly the lowest rung in the company's hierarchy. He distinguished himself because of his hard work and was promoted to be a supervisor. By 1982, Saleem under direct supervision of the directors, was looking after every activity in manufacturing. Right from raw material procurement to packing and shipping of finished garments, he was coordinating all the activities. Because of the varied nature of his duties and his dedication to work, he was able to learn all the ins and outs of the business. Saleem was also considered to be a man with a photographic memory. He virtually ran the whole business from the information stored in his head. "I have an abhorrence for paperwork," said Saleem. "My work-load is so great that I am always engrossed in my job. Even my dreams are job-related," he added, "but due recognition has always been accorded to me by my directors." Saleem initially cooperated with Mahmood.
However, when Mahmood started to implement some of the new systems and procedures, Saleem refused to go along with them. Saleem even questioned the very need for such a drastic change. "Ask me about anything — any detail of a fabric, any garment, any export order — for that matter anything that has happened in this company since I joined, and I will tell you instantly. Why are you bothering the people here with such clerical burdens ? These luxuries are alright for big companies, but not for us. We cannot spare people for such unproductive things." Mahmood understood that Saleem was close to the director and was the seniormost supervisor. Therefore, his opposition could not be taken lightly. Mahmood also felt that the other might say that he had neither the general management experience, nor any particular experience in the garment industry.
Nevertheless, Mahmood was confident that the company did need the change, and as soon as possible. He was troubled, however, with the resistance of Mr. Saleem. Unless he could somehow overcome Saleem's reluctance to accommodate his new systems, he would not be able to do the job.
Questions :
a) Discuss the main issues reflected in the case.
b) What mistake did Mr. Mahmood make ?
(c) How should Mr. Mahmood handle the current situation ?
Ms-10 june 2011
MS-10 june, 2011
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1. Identify the key factors which affect the Organisational Design ? Briefly discuss the principles of a good Organisational Design. Explain with examples.
2. Distinguish between the Functional and Product Organisation, and Line and Staff Organisation. Discuss their merits and demerits with suitable examples.
3. What is Organising and Analysing Work ? Briefly discuss 'Scientific Management' and 'Human Relations' approaches to organising and analysing
work.
4. Define and describe Organisational Diagnosis and its purpose. Discuss with suitable examples the role of various organisational sub-systems and processes as components of organisational diagnosis.
5. Write short notes on any three of the following :
(a) Institution Building.
(b) Questionnaire as a diagnostic tool.
(c) Essentials for success of Organisational Development.
(d) Team Building.
(e) Commonly used interventions for managing change.
"Sunrise" is the brand name of Sunrise Industries Ltd., a leading industrial house`of northern India with an annual turnover of more than Rs. 450 crores. The company produces a wide variety of electrical home appliances which are popular not only in India, but in foreign countries also. The Board of Directors is headed by Mr. Kamaldeep and its executive director is Mr. Ankit. The company has its head office at New Delhi and works at Ludhiana, about 300 km. from New Delhi. It is in the process of starting a new factory at NOIDA (about 25 km. from New Delhi) for the manufacture of refrigerators and air-conditioners. Sunrise Industries wasn`t always a big industrial giant. In fact, it had a very humble beginning. Kamaldeep, an electrical engineer, set up a small scale industrial unit in 1975. To start with, he undertook assembly and sale of sewing machines under the name `Sunrise` and gradually started manufacture of certain spare parts. Because of better quality,,greater selling skills and lower profit margin, his sales turnover touched the figure of Rs. 1 crore during 1979-80. The products included sewing machines, irons, fans, geysers, etc.
In 1981, Kamaldeep entered into a partnership with Ankit, an M.B.A., who contributed a lot of capital into the business. The firm acquired a big industrial plot in the New Industrial Area of Ludhiana and converted their business into a company known as Sunrise Industries Ltd. in 1982. The brand name `Sunrise` was also registered in the name of the company. The company started the commercial production of single tub washing machines and instant geysers in 1983. Kamaldeep looked after production and Ankit took care of marketing and finance. They never looked back as they had a motivated work force of 40 workers and 5 foremen who worked like a big family.
It was during 1990 that the company shifted its head office to New Delhi and entered into a technical collaboration agreement with a foreign company. As a result, new generation twin tub semi-automatic washing machines and vacuum cleaners were launched in 1991 and the products were well received in the market because of latest technology and expanding market for electrical gadgets. The sales turnover increased tremendously every year.
QUESTION
1. What changes in structural dimensions have taken place in Sunrise Industries ?
2. Is the present structure organic ? Give reasons for your answer.
3. Which approach to organisation do you feel can help the company tackle the current problems ?
Ms-10 Dec 2007
MS-10 Dec, 2007
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1.Describe the meaning and characteristics of an organisation. DisCuss Mintzberg's theory and its relevance in the existing business scenario.
2. what are the objectives and issues involved in quality of work life ? Describe the aspects which have to be included in quality of work life programme in the modern organizational context.
3. Describe various roles and competencies required for an effective change agent. Explain with examples.
4. Describe any two OD interventions and their advantages and disadvantages, citing examples from organizational context.
5. Write short notes on any three of the following :
(a) Observation Method as a diagnostic tool
(b) Scientific Management
(c) Matrix Organisation
(d) Bureaucratic Model of Organisational Design
(e) Business Process Re-engineering
6. Read the following case carefully and answer the questions given at the end :
Since 1994, Boeing began the process of remaking the company for the next round of aircraft purchases. Every part of the company is involved, from engineering to manufacturing. The focus of the change is that Boeing is a manufacturing company rather than an engineering and technology company. Due to changes in the air travel business, the major commercial airlines are demanding lower airplane prices and significantly lower operating costs. Airbus continues to be a f.ierce competitor, so Boeing must meet the competition early and on every front. (Boeing bought McDonnell Douglas in 1 997.)
It is not as if the company is in financial trouble. Its new .model 777 is generating lots of orders. plans are in the works for a new supersonic and another jumbo jet for commercial sales, and several new project possibilities exist for the defence division. The new 777 was designed completely on the computer so that designs went straight from the designers' computers to the machine tools for manufacturing. It can carry as many as four hundred passengers, fifty more than the comparable Airbus 33 t.
It is 15 per cent more fuel efficient, and can fly over eight thousand miles non-stop. orders are coming in faster than for any other new plane, although its price is pretty steep , $12 -$15 million, depending on interior layout.
Boeing's new CEO, Philip Condit, must continue the reductions in cycle time and cost cutting, started by his predecessor, Frank Shrontz, because airlines are making
their purchase decisions differently than in the past, even choosing in some cases. to refurbish older planes rather than buy expensive new ones. The changes started with Condit and his team of presidents of the divisions of commercial planes, defence and space, and computer services. This group differs notably from its predecessors in that they have met together for several years to discuss the good and bad things about each other's divisions and the future of the company. They all embrace the new togetherness theme as the primary means through which the company will be able to reduce cycle times, improve delivery times, cut product development time, and reduce total costs. In the former structure the design and manufacturing groups were separate. Design and engineering groups would design the planes and then give ihe plans to manufacturing to build. When problems existed in the design, they would be sent through the hierarchy back to engineering for correction. Under the new structure, comprehensive design-and build teams include members of all groups involved. Therefore, planes are originally designed to meet customers' needs, are easier to build, and corrections are made faster. For example, previously, when tool builder Tony Russell had a problem with an engineering design or specification, he would have to go to his supervisor and the problem would be shuffled through to engineering. Now he goes directly to the engineering and design group, gets the problem solved, and gets back to work with the correct design. This type of revision in the process has helped reduce the product delivery time from eighteen to ten months. The team approach and working-together ideas were used extensively on the 777. Some teams included tool makers, designers, manufacturing workers, suppliers, and even customer representatives. Contrary to past procedures, workers on the line were allowed to change how planes were built, which has significantly decreased costs. Condit has instituted 350 degree performance reviews in which managers are evaluated by their subordinates, their peers, and their own supervisors to improve understanding of how they are doing from all perspectives. Employee empowerment is increasing at all levels. Condit and his team are having quite an impact throughout the company.
Questions
(a) The new way of organizing at Boeing most resembles which of the classical types of organizing ?
(b) How have responsibility and authority been altered under Condit's new approach ?
(c) Describe the new ways of organizing ai Boeing in terms of the configurational and operational aspects of structure
Ms-10 Dec 2008
MS-10 Dec, 2008
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1. What are the key factors which affect Organization Design, examples ?
describe briefly with examples
2. Identify the main considerations in preparing a questionnaire and collecting data ? Describe the dimensions which can be diagnosed through questionnaire, citing suitable examples.
3. Describe diagnostic workshop methodology ? Discuss the conditions under which the workshop methodology can be used, with suitable examples.
4. Enumerate various significant competencies required by a change agent. Discuss cognitive and inter-personal competencies, with examples.
5.Write short notes on any three of the following :
(a) Quality of work life.
(b) Management Assessment Centres
(c) Mintzberg's Typology.
(d) Factors influencing Institution Building.
(e) Organisational Effectiveness.
6. Please read the case and answer the question given at the end.
Mr. Anand occupies No. 2 position in the Corporate Planning Department of multi-product company having a tumover of more than Rs. 900 crores and operating in a high technology (hi-tech) industry. For the last five years, Anand has been associated with strategic planning of the company and recently he has been deputed to a task force to reorganise the company to cope up with the changing technology and environment. At the last meeting of the Board of Directors of the company, the members expressed their concern about the falling competitive position of the company in the industry. The main reason
cited bv the Cheif Executive was the outdated organisation structure which has not undergone any change for the 10 years,though the size, technology and environment of the company have changed tremendously. It was on the advice of Chief Executive that the Bord of Directors decided to set up a task force for the company's reorganisation..
At the first meeting of the task force, Anand, who is an expert in planning, convinced the other members to adopt the following procedure :
(i) Determine exactly what type of structure the company has at present.
(ii) Determine the type of environment the company faces now and the weaknesses of the present structure
(iii) Forecast the environmental changes in the future and the type of technology to be used by the company.
(iv) Design the organisation structure to meet the future challenges
It was discovered that the company is currently structured along classical lines and the company is operating in a highly dynamic environment. The environment in future is likely to be more uncertain because of fast changes in technology and requirements of customers and competition by MNCs. The task force came to the
conclusion that the structural design must be responsive to change and if this is not done, the company's survival in the market would be made more difficult.
Questions :
(a) How far do you agree with the procedure adopted by the task force ?
(b) Explain how the system and contingency approches can contribute to the analysis of this case.
(c) What type of organisation designshould the task force reconunend ? Explain its broad features.
