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Two-Day National Conference on
Building Futuristic Organizations:
       Developing Sustainable
       Competitive Strategies

March 8-9, 2013
Coimbatore
The forum expects to answer key questions
including:

• Are organizations of the future going to be different than the
  organizations of the past and the present? If different, in what
  ways are they going to be different? What will be the
  characteristics of such organizations?

• Future organisations are bound to face challenges including
  Uncertainty, Unpredictability, Ambiguity and Change: in such a
  scenario what would be the appropriate strategies for adaptive
  sustainability?

• What appropriate competitive strategies can be developed and
  recommended for those specific characteristics?

• How can future organisations be sustainable in terms of service to
  society, environmental protection, long term vision, products and
  services, concern for people, thus addressing the triple bottom
10 Ways the Next 10 Years Are Going To
Be Mind-Blowing
• Bio Technology - Bionic Hand controlled by brain signals
• Architecture - Revolving Tower in Dubai
• Computer Speed, Size and Usability - chips will be assembled using
    individual atoms or molecules
•   Cars and Fuel - electric
•   How We Interact With the World - Goggles by Google
•   Energy - Solar
•   Health - custom-made organs
•   Success and Popularity Accessibility - internet is the perfect tool for
    capitalism, entrepreneurship, and dreaming
• Robots - !!!
• Clothing - would allow people to generate their own electrical current while
    walking
10 Great Career Fields for the Future
Medical Field
Nurse Anesthetists, Nurse Practitioners, Physician Assistants

Technology Sector
Software Architects, Systems Engineers, Software Engineers, IT Analysts

Financial Services
Accountants, Actuaries, Financial Advisors

Education Arena
College Professors, Elementary School Teachers, High School Teachers

Technical Jobs
Physical Therapist Assistants, Dental Hygienists, Veterinary Technicians
10 Great Career Fields for the
Future
Business Services Jobs
Environment Health Specialists, Construction Estimator

Sales Jobs
Sales Managers, Sales Executive, Senior Sales Professional

Consulting Jobs
Management Consultants, Healthcare Consultants

Engineering Jobs
Project Engineer, Civil Engineer, Structural Engineer, Environmental Engineer,
Biomedical Engineer

Middle Management Jobs
Research and Development Manager, Product Manager, Risk Management
Manager
Strategies for
 developing
Human Capital
Human capital
• Human          capital       is     the      stock        of
  competencies, knowledge, social and personality
  attributes, including creativity, embodied in the ability to
  perform work so as to produce economic value.

• Human Capital Development is a must need effort that
  must be taken forward by organizations to increase the
  technical skills, creativity and innovation to drive the
  knowledge-based economy.

• Few Demands that today's workforce face –
   – Acquiring and retaining new customers
   – Generating new ideas
   – Improving productivity
Human Capital Uncertainties
               Human capital related critical uncertainties


   Regional                  Competition for talent                 Global


    Heavy           Regulatory constraints in HR management           Light


    Low                  Adoption of online HR services               High


    Cost cutting            Organizational priorities              Growth


                                                                Networked
 Traditional and    Dominant type of organizational structure   or Virtual
    hierarchical


    Top - Down               Innovation and change              Bottom - Up
Human capital strategy
• It is a must need today for Executives to pursue a more
  comprehensive and integrated human capital strategy that includes
   –   Talent Management
   –   Leadership Qualities
   –   Cultural Values
   –   Organization Components

This helps multiply the value of talent and help create an enterprise
that is able to execute business strategy and adapt to a changing
market.


   ― Those who can effectively translate their business strategy
 into an actionable human capital strategy can drive a new kind
 of competitive advantage—one extremely difficult for others to
                            imitate. ―
Linking business strategy to human capital
requirement

                              WHAT IS MISSING ???
                              1. A strong program
HR is responsible for         2. An approach led from the
acquiring,      developing       top
and     deploying      the    3. Visualize human capital
people needed for an             dimension of a business at
successful organization          the strategic level
but    yet     many    HR
Departments struggle to
have a deep enough
understanding on how to
translate the     business
goals      into    specific
workforce              and
Devising a Human capital strategy will link business
strategy to HR strategy ,Hence bridging the gap


                                 The business strategy defines the
                                 direction, positioning, scope ,
    BUSINESS STRATEGY            objective       and    competitive
                                 differentiation
     ENABLES




                        SHAPES


                                 Human capital strategy defines the
                                 talent, leadership , culture and
               HUMAN CAPITAL     organization   to   execute    the
                 STRATEGY        business strategy
     ENABLES




                        SHAPES




                                 The HR strategy articulates the
                                 strategic direction and imperatives
                                 of the HR organization and builds
               HR STRATEGY
                                 out capabilities required to align to
                                 the human capital strategy
Advantages of an effectives human capital
strategy –
1. Helps the organization to put in place the right leaders to source,
   develop and direct the right workforce talent, supported by the right
   culture, organization and operating model

2. Working in the human capital dimension underpins many of the
   company’s most important decisions about where and how to
   compete

3. Helps support the organization as it balances short-term decisions
   with longer-term imperatives.

4. supports the organization in meeting today’s urgent needs while
   also helping it become agile enough to reposition itself for ongoing
   market competitiveness and growth

 ― For a human capital strategy to be truly robust, it must not only
 consider the strategy of today but also its potential evolution in
 the future. ―
Creating and implementing a human capital
strategy
• Human capital strategy work under four main streams –
   1. Talent Management
  Competency                       Planning              Gap Analysis


   2. Leadership Qualities

  Learning Plan               Self-Directed Learning   Training Sessions


  Action and Reflective learning

   3. Cultural Values
 Stories            Rituals             Language        Material Symbols


   4. Organization Component
  Organization Design               Operating Model
Talent Management
• In order to execute the business strategy to its best we
  need.
   – Competency assessment
   – Workforce planning
   – Gap Analysis

If properly designed and executed, programs within the
talent work stream of the human capital, strategy can
significantly contribute to a company’s ability to attain its
business goals, and to attract, motivate and retain the
right people.
First step – Competency
Talent Management                                                   assessment
                                                                   Review          organizations
Second         step        -                                        business     strategy      and
Workforce planning                                                  determine the capabilities and
• Determine              the                                        competencies required by the
workforce supply that the                          Competency       workforce
                                                   assessment
                                                                
                                  Workforce
organization needs                planning                          Understand the impact that
•Determine the no. of                                               the business strategy will
employees required for                        Gap analysis          have on the workforce.
each type of Job (now                                              Innovate new ideas and
and also for the future)                                            approaches            towards
                                                                    recruiting       and     hiring
                                                                    employees.
                                         TALENT
Third step – Gap Analysis
-analyze any potential gap between existing workforce competencies and those
needed to execute the business strategy going forward
-Provide training to the employees who have little variance in competencies in order
to fill in the gap.
-Try repositioning workforce to areas in which their competencies match the
requirement of the job.
-Terminate dead woods who prevent the organization from moving towards its
business strategy.
Leadership Qualities
•   Organizations need leaders who can –
     – rally the workforce when there is a challenge,
     – Confront them when they are mired in the status quo,
     – calm them when the seas are rough, and
     – propel them into action when there is a crisis.

•   The leadership development aspects of an organization’s human capital
    strategy focus on several key questions:
     – What is the specific value add beyond their official job titles?
     – What attributes, capabilities and behaviors are expected from future
        leaders?
     – How can organizations use leadership development as a competitive
        advantage?

Once these key questions are answered we must put in place a
leadership development program that is closely tied to the needs of
the business strategy and the shifting marketplace.

     “A leader is someone whom others will follow to a place they would
                       normally not go on their own".
The leaderships development program must focus on the
 following areas –
Training sessions interspersed                                Using the needs and assessment
throughout the program in addition to                         results , facilitate a Leadership
self-directed learning, so as to guide                        learning program
the leadership development process.


                                                    Leader
                                      Training
                                                   Learning
                                      Sessions
                                                     plan


                                      Action &       Self
                                      Reflective   directed
                                      Learning     Learning



Conduct of orientation sessions for the
leadership team                                    Facilitation of self-directed learning
Support the team to research solutions to          projects to build the competencies most
the challenges and enable the team to              needed by the leader.
report its results to the senior management        projects may include case studies,
during the end of the program.                     shadowing, executive interviews, reading,
Self awareness journal.                            specific skill development, behaviour
share the findings with the leadership team.       change activities, etc.
Culture Values
• The basic pattern of shared assumptions , values and
  beliefs considered to be correct way of thinking about and
  acting on problems and opportunities facing the
  organizations.

•    It is the philosophy that guides the organization’s policy
    towards employees and customers.

• Today's senior Leaders believe –
• business strategies stand little chance of being adopted and
   executed if the current culture of their company impedes the
   ability to accommodate change and support the business
  ―vision.
    Clarifying the value system and breathing life into it are the
 greatest contributions a leader can make. Moreover, that's what
the top people in excellent companies seem to worry about most
                                 ―
                                          – Peters and Waterman
Elements of organization culture
                                     Individual
                                      initiative


           Conflict tolerance                             Risk tolerance




                                                                    Communication
   Reward system
                                                                       pattern




         identity                                                  integration




                                                   Management
                           control
                                                     support
How to create , sustain and transmit
culture ??
- How it begins - founders!!

- How to keep it alive – Selection practices, Top
  Management and socializing

- How do employees learn the culture - Stories ,
  rituals, language, material symbols

               Cultural alignment with business strategy

If Aligned –                         If Not Aligned –
Executives must help reinforce       Specific programs must be put in
those attributes that support the    place to influence the culture and
execution of the business strategy   push it in the right direction.
Factors Influencing culture
Factors that support Changes in         Factors that are against changes in
culture                                 culture

Foreign competition                     Employees become committed to
                                        them

Changes in Govt. regulations            Written statements about mission
                                        and philosophy

Rapid economic shifts                   Design of physical spaces and
                                        building

Change in stories , rituals, material   Dominant leadership pattern
symbols, language

New technologies                        Past selection practices
                                        Organizations formal structure
                                        Popular stories about key people
                                        and event
An ideal organization culture

1. Equal opportunities for employees
2. No discrimination in terms of reward or punishment
3. Understanding the individual as a person
4. Standing by employees in time of crisis
5. Not bending organizational rules but allowing room
   for flexibility and humaneness.
6. Allowing true delegation of responsibility or authority
7. Changing roles and responsibilities appropriately.
Organization Components

                         Organization



                      Organization Design
                               +
                       Operating Model

      Effective job                         Employee
      Performance                            sourcing

    Leadership
   Development                               Culture
Organization Design

• A formal, guided process for integrating the people,
  information and technology of an organization.

• Used to match the form of the organization as
  closely as possible to the purpose(s) the
  organization seeks to achieve

• Through the design process, organizations act to
  improve the probability that the collective efforts of
  members will be successful.
Organization structures
•    Hierarchical Structure Vs Organic Structure


    Characteristics      Hierarchical structure                 Organic structure

    Complexity           High – with lots of horizontal         Usually lower – less
                         separation into functions,             differentiation or functional
                         departments and divisions              separation
    Formality            High – lots of well defined lines of   Lower – no real hierarchy and
                         control and responsibility             less formal division of
                                                                responsibilities
    Participation        Low – employees lower down the Higher participation – lower
                         organization have little involvement level employees have more
                         with decision making                 influence on decision makers
    communication        Downward – information starts at       Lateral, upward, and downward
                         the top and trickles down to           communication – information
                         employees                              flows through the organization
                                                                with fewer barriers




    It's worth saying that one type of structure is not intrinsically
    better than another. Rather, it's important to make sure that the
    organization design is fit for organization's purpose and for the
    people within it.
Organization structure

                              ORGANIZATION
                               STRUCTURE


                                                    Often found in small
                         Hierarchical    Organic
                                                    businesses, the simple
                          structure     structure   organization structure is
                                                    flat. It may have only two or
                                                    three levels; employees
                                                    tend to work as a large
                                                    team       with     everyone
functions                                Simple     reporting to one person.
(accounting,                            structure
marketing, HR etc)                                  people typically have two
are quite separate;      Functional                 or more lines of report. For
each led by a senior      structure                 example,       a      matrix
`executive       who                     Matrix     organization may combine
reports to the CEO.                                 both     functional      and
the    company      is
                                        structure   divisional      lines     of
organized by office                                 responsibility
or          customer
location.       Each                                Often known as a lean
division            is
                          Divisional    Network
                                                    structure, this type of
autonomous       and      structure     structure   organization has central,
has a divisional                                    core functions that operate
manager          who                                the strategic business. It
reports     to    the                               outsources or subcontracts
company CEO.                                        non-core functions
Key points and Advantages
• Key points in design of Organization structure –
   – Strategy – The organization design must support the strategy.
   – Size – The design must take into account the size of the
     organization.
   – Environment – If the market environment one works in
     (customers, suppliers, regulators, etc.) is unpredictable or volatile,
     then the organization needs to be flexible enough to react to this.
   – Controls – What level of control is right for the business?
   – Incentives – Incentives and rewards must be aligned with the
     business's strategy and purpose.
• Advantages –
   – Streamline Operation
   – Improve Decision Making
   – Operate Multiple Locations
   – Improve Employee Performance
   – Focus on Customer Service &Sales
Operating Model – Bridge between business
strategy and organization Design
The operating model shows how the strategy and structure of the
organization is executed. The operating model must be purposefully
reshaped in order for an organization to be effective.


                                                          Detailed organization
 Strategy and heritage          Operating model
                                                                 design




                                                          --Detailed structure and
                                                          specific decision roles
 -Where to play, including
                                                          -Company – wide clarity
 category brand and
                                                          on priorities and
 geographic priorities
                                                          principles
 -How to win, including
                              -Where and how the          -Processes, information
 repeatable routines and
                             most critical work is done   flows, technology, tools.
 non-negotiabes
                                                          -Detailed metrics and
 -Company culture and
                                                          feedback loops
 values to be preserved
                                                          -Talent system and
 and cultivated
                                                          incentives.
                                                          -Cultural reinforcements
Components of Operating Models
        Meeting Schedule and Design                                            Organization structure
 •What people and topics should be included in                       •Organization units and boundaries
 regular meetings?                                                   •Matrix groups and alignments (functional,
 •What are the roles in meetings?                                    geographic)
 •What general norms will be followed to make                        •Levels and spans
 meetings effective?

                                                                                    Decision Rights
       Programs and Services                                           •What are the most important decisions
                                                                       and how will they be made?
What programs are common and unique
                                                                       •What are the roles in the decision-making
to units?                                        Operating             process? (e.g., inform, consult, approve,
How is client contact conducted?                  Model                etc.)
What is the standard of service levels?
                                                                       •How will decisions be evaluated?



               Roles and Boundaries                                   Goal Setting and Measurement
 What are the boundaries of each unit and what are the       •What are the shared measures for common goals?
 shared tasks?                                               •How are individual and team goals (levels) set?
 What information should be available across                 •What benchmarks will be used?
 boundaries?
 Who has responsibility for various tasks?
 Are there any special boundary spanning roles?
Conclusion
• Today, there has been a drastic difference in the focus of
  professionals to train and retrain their skill-set through higher
  education.
• In fact, when the going gets rough, it's time for business to train
  and develop their human resource capital, so that once the
  darker nights are over, the sunrise is glorious.
• All this said, The competition in every industry is shifting in a
  very drastic manner, Will Organizations be able to innovate and
  execute strategies that can catch up to the shift in the
  marketplace?? The answer to that question will solely depend
  on the organizations investment towards human capital
  assets. Sourcing and retaining top talents in the exact needful
  numbers and in the exact needful place in our organization will
  be the key to the equation. Along with this equally important are
  the leadership quality, cultural characteristics and organization
  structure that would enable our workforce talent to help our
  company as a whole to achieve high performance
Humar capital strategy   national conference - 09032013

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Humar capital strategy national conference - 09032013

  • 1. Two-Day National Conference on Building Futuristic Organizations: Developing Sustainable Competitive Strategies March 8-9, 2013 Coimbatore
  • 2. The forum expects to answer key questions including: • Are organizations of the future going to be different than the organizations of the past and the present? If different, in what ways are they going to be different? What will be the characteristics of such organizations? • Future organisations are bound to face challenges including Uncertainty, Unpredictability, Ambiguity and Change: in such a scenario what would be the appropriate strategies for adaptive sustainability? • What appropriate competitive strategies can be developed and recommended for those specific characteristics? • How can future organisations be sustainable in terms of service to society, environmental protection, long term vision, products and services, concern for people, thus addressing the triple bottom
  • 3. 10 Ways the Next 10 Years Are Going To Be Mind-Blowing • Bio Technology - Bionic Hand controlled by brain signals • Architecture - Revolving Tower in Dubai • Computer Speed, Size and Usability - chips will be assembled using individual atoms or molecules • Cars and Fuel - electric • How We Interact With the World - Goggles by Google • Energy - Solar • Health - custom-made organs • Success and Popularity Accessibility - internet is the perfect tool for capitalism, entrepreneurship, and dreaming • Robots - !!! • Clothing - would allow people to generate their own electrical current while walking
  • 4. 10 Great Career Fields for the Future Medical Field Nurse Anesthetists, Nurse Practitioners, Physician Assistants Technology Sector Software Architects, Systems Engineers, Software Engineers, IT Analysts Financial Services Accountants, Actuaries, Financial Advisors Education Arena College Professors, Elementary School Teachers, High School Teachers Technical Jobs Physical Therapist Assistants, Dental Hygienists, Veterinary Technicians
  • 5. 10 Great Career Fields for the Future Business Services Jobs Environment Health Specialists, Construction Estimator Sales Jobs Sales Managers, Sales Executive, Senior Sales Professional Consulting Jobs Management Consultants, Healthcare Consultants Engineering Jobs Project Engineer, Civil Engineer, Structural Engineer, Environmental Engineer, Biomedical Engineer Middle Management Jobs Research and Development Manager, Product Manager, Risk Management Manager
  • 7. Human capital • Human capital is the stock of competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform work so as to produce economic value. • Human Capital Development is a must need effort that must be taken forward by organizations to increase the technical skills, creativity and innovation to drive the knowledge-based economy. • Few Demands that today's workforce face – – Acquiring and retaining new customers – Generating new ideas – Improving productivity
  • 8. Human Capital Uncertainties Human capital related critical uncertainties Regional Competition for talent Global Heavy Regulatory constraints in HR management Light Low Adoption of online HR services High Cost cutting Organizational priorities Growth Networked Traditional and Dominant type of organizational structure or Virtual hierarchical Top - Down Innovation and change Bottom - Up
  • 9. Human capital strategy • It is a must need today for Executives to pursue a more comprehensive and integrated human capital strategy that includes – Talent Management – Leadership Qualities – Cultural Values – Organization Components This helps multiply the value of talent and help create an enterprise that is able to execute business strategy and adapt to a changing market. ― Those who can effectively translate their business strategy into an actionable human capital strategy can drive a new kind of competitive advantage—one extremely difficult for others to imitate. ―
  • 10. Linking business strategy to human capital requirement WHAT IS MISSING ??? 1. A strong program HR is responsible for 2. An approach led from the acquiring, developing top and deploying the 3. Visualize human capital people needed for an dimension of a business at successful organization the strategic level but yet many HR Departments struggle to have a deep enough understanding on how to translate the business goals into specific workforce and
  • 11. Devising a Human capital strategy will link business strategy to HR strategy ,Hence bridging the gap The business strategy defines the direction, positioning, scope , BUSINESS STRATEGY objective and competitive differentiation ENABLES SHAPES Human capital strategy defines the talent, leadership , culture and HUMAN CAPITAL organization to execute the STRATEGY business strategy ENABLES SHAPES The HR strategy articulates the strategic direction and imperatives of the HR organization and builds HR STRATEGY out capabilities required to align to the human capital strategy
  • 12. Advantages of an effectives human capital strategy – 1. Helps the organization to put in place the right leaders to source, develop and direct the right workforce talent, supported by the right culture, organization and operating model 2. Working in the human capital dimension underpins many of the company’s most important decisions about where and how to compete 3. Helps support the organization as it balances short-term decisions with longer-term imperatives. 4. supports the organization in meeting today’s urgent needs while also helping it become agile enough to reposition itself for ongoing market competitiveness and growth ― For a human capital strategy to be truly robust, it must not only consider the strategy of today but also its potential evolution in the future. ―
  • 13. Creating and implementing a human capital strategy • Human capital strategy work under four main streams – 1. Talent Management Competency Planning Gap Analysis 2. Leadership Qualities Learning Plan Self-Directed Learning Training Sessions Action and Reflective learning 3. Cultural Values Stories Rituals Language Material Symbols 4. Organization Component Organization Design Operating Model
  • 14. Talent Management • In order to execute the business strategy to its best we need. – Competency assessment – Workforce planning – Gap Analysis If properly designed and executed, programs within the talent work stream of the human capital, strategy can significantly contribute to a company’s ability to attain its business goals, and to attract, motivate and retain the right people.
  • 15. First step – Competency Talent Management assessment  Review organizations Second step - business strategy and Workforce planning determine the capabilities and • Determine the competencies required by the workforce supply that the Competency workforce assessment  Workforce organization needs planning Understand the impact that •Determine the no. of the business strategy will employees required for Gap analysis have on the workforce. each type of Job (now  Innovate new ideas and and also for the future) approaches towards recruiting and hiring employees. TALENT Third step – Gap Analysis -analyze any potential gap between existing workforce competencies and those needed to execute the business strategy going forward -Provide training to the employees who have little variance in competencies in order to fill in the gap. -Try repositioning workforce to areas in which their competencies match the requirement of the job. -Terminate dead woods who prevent the organization from moving towards its business strategy.
  • 16. Leadership Qualities • Organizations need leaders who can – – rally the workforce when there is a challenge, – Confront them when they are mired in the status quo, – calm them when the seas are rough, and – propel them into action when there is a crisis. • The leadership development aspects of an organization’s human capital strategy focus on several key questions: – What is the specific value add beyond their official job titles? – What attributes, capabilities and behaviors are expected from future leaders? – How can organizations use leadership development as a competitive advantage? Once these key questions are answered we must put in place a leadership development program that is closely tied to the needs of the business strategy and the shifting marketplace. “A leader is someone whom others will follow to a place they would normally not go on their own".
  • 17. The leaderships development program must focus on the following areas – Training sessions interspersed Using the needs and assessment throughout the program in addition to results , facilitate a Leadership self-directed learning, so as to guide learning program the leadership development process. Leader Training Learning Sessions plan Action & Self Reflective directed Learning Learning Conduct of orientation sessions for the leadership team Facilitation of self-directed learning Support the team to research solutions to projects to build the competencies most the challenges and enable the team to needed by the leader. report its results to the senior management projects may include case studies, during the end of the program. shadowing, executive interviews, reading, Self awareness journal. specific skill development, behaviour share the findings with the leadership team. change activities, etc.
  • 18. Culture Values • The basic pattern of shared assumptions , values and beliefs considered to be correct way of thinking about and acting on problems and opportunities facing the organizations. • It is the philosophy that guides the organization’s policy towards employees and customers. • Today's senior Leaders believe – • business strategies stand little chance of being adopted and executed if the current culture of their company impedes the ability to accommodate change and support the business ―vision. Clarifying the value system and breathing life into it are the greatest contributions a leader can make. Moreover, that's what the top people in excellent companies seem to worry about most ― – Peters and Waterman
  • 19. Elements of organization culture Individual initiative Conflict tolerance Risk tolerance Communication Reward system pattern identity integration Management control support
  • 20. How to create , sustain and transmit culture ?? - How it begins - founders!! - How to keep it alive – Selection practices, Top Management and socializing - How do employees learn the culture - Stories , rituals, language, material symbols Cultural alignment with business strategy If Aligned – If Not Aligned – Executives must help reinforce Specific programs must be put in those attributes that support the place to influence the culture and execution of the business strategy push it in the right direction.
  • 21. Factors Influencing culture Factors that support Changes in Factors that are against changes in culture culture Foreign competition Employees become committed to them Changes in Govt. regulations Written statements about mission and philosophy Rapid economic shifts Design of physical spaces and building Change in stories , rituals, material Dominant leadership pattern symbols, language New technologies Past selection practices Organizations formal structure Popular stories about key people and event
  • 22. An ideal organization culture 1. Equal opportunities for employees 2. No discrimination in terms of reward or punishment 3. Understanding the individual as a person 4. Standing by employees in time of crisis 5. Not bending organizational rules but allowing room for flexibility and humaneness. 6. Allowing true delegation of responsibility or authority 7. Changing roles and responsibilities appropriately.
  • 23. Organization Components Organization Organization Design + Operating Model Effective job Employee Performance sourcing Leadership Development Culture
  • 24. Organization Design • A formal, guided process for integrating the people, information and technology of an organization. • Used to match the form of the organization as closely as possible to the purpose(s) the organization seeks to achieve • Through the design process, organizations act to improve the probability that the collective efforts of members will be successful.
  • 25. Organization structures • Hierarchical Structure Vs Organic Structure Characteristics Hierarchical structure Organic structure Complexity High – with lots of horizontal Usually lower – less separation into functions, differentiation or functional departments and divisions separation Formality High – lots of well defined lines of Lower – no real hierarchy and control and responsibility less formal division of responsibilities Participation Low – employees lower down the Higher participation – lower organization have little involvement level employees have more with decision making influence on decision makers communication Downward – information starts at Lateral, upward, and downward the top and trickles down to communication – information employees flows through the organization with fewer barriers It's worth saying that one type of structure is not intrinsically better than another. Rather, it's important to make sure that the organization design is fit for organization's purpose and for the people within it.
  • 26. Organization structure ORGANIZATION STRUCTURE Often found in small Hierarchical Organic businesses, the simple structure structure organization structure is flat. It may have only two or three levels; employees tend to work as a large team with everyone functions Simple reporting to one person. (accounting, structure marketing, HR etc) people typically have two are quite separate; Functional or more lines of report. For each led by a senior structure example, a matrix `executive who Matrix organization may combine reports to the CEO. both functional and the company is structure divisional lines of organized by office responsibility or customer location. Each Often known as a lean division is Divisional Network structure, this type of autonomous and structure structure organization has central, has a divisional core functions that operate manager who the strategic business. It reports to the outsources or subcontracts company CEO. non-core functions
  • 27. Key points and Advantages • Key points in design of Organization structure – – Strategy – The organization design must support the strategy. – Size – The design must take into account the size of the organization. – Environment – If the market environment one works in (customers, suppliers, regulators, etc.) is unpredictable or volatile, then the organization needs to be flexible enough to react to this. – Controls – What level of control is right for the business? – Incentives – Incentives and rewards must be aligned with the business's strategy and purpose. • Advantages – – Streamline Operation – Improve Decision Making – Operate Multiple Locations – Improve Employee Performance – Focus on Customer Service &Sales
  • 28. Operating Model – Bridge between business strategy and organization Design The operating model shows how the strategy and structure of the organization is executed. The operating model must be purposefully reshaped in order for an organization to be effective. Detailed organization Strategy and heritage Operating model design --Detailed structure and specific decision roles -Where to play, including -Company – wide clarity category brand and on priorities and geographic priorities principles -How to win, including -Where and how the -Processes, information repeatable routines and most critical work is done flows, technology, tools. non-negotiabes -Detailed metrics and -Company culture and feedback loops values to be preserved -Talent system and and cultivated incentives. -Cultural reinforcements
  • 29. Components of Operating Models Meeting Schedule and Design Organization structure •What people and topics should be included in •Organization units and boundaries regular meetings? •Matrix groups and alignments (functional, •What are the roles in meetings? geographic) •What general norms will be followed to make •Levels and spans meetings effective? Decision Rights Programs and Services •What are the most important decisions and how will they be made? What programs are common and unique •What are the roles in the decision-making to units? Operating process? (e.g., inform, consult, approve, How is client contact conducted? Model etc.) What is the standard of service levels? •How will decisions be evaluated? Roles and Boundaries Goal Setting and Measurement What are the boundaries of each unit and what are the •What are the shared measures for common goals? shared tasks? •How are individual and team goals (levels) set? What information should be available across •What benchmarks will be used? boundaries? Who has responsibility for various tasks? Are there any special boundary spanning roles?
  • 30. Conclusion • Today, there has been a drastic difference in the focus of professionals to train and retrain their skill-set through higher education. • In fact, when the going gets rough, it's time for business to train and develop their human resource capital, so that once the darker nights are over, the sunrise is glorious. • All this said, The competition in every industry is shifting in a very drastic manner, Will Organizations be able to innovate and execute strategies that can catch up to the shift in the marketplace?? The answer to that question will solely depend on the organizations investment towards human capital assets. Sourcing and retaining top talents in the exact needful numbers and in the exact needful place in our organization will be the key to the equation. Along with this equally important are the leadership quality, cultural characteristics and organization structure that would enable our workforce talent to help our company as a whole to achieve high performance