ORGANIZATIONAL PROCESS (GENERAL) A general view of your organization that describes the following: Why your organization exists? -What way it is planned and structured? -What is your position in your organization? -Why management functions are developed?

Organizational Process A process is a set of actions that are logically sequenced. For example, organizations have goals, and they achieve it by creating products and services and this is done in a logical sequence. The components of this sequence is given in the next slide.

Organizational Process Sequence VISION, MISSION, BUSINESS DEFINITION STRATEGY STRUCTURE SYSTEMS PROCESSES JOBS TAKS ( ACTIVITIES)

Organizational Process Sequence MISSION VISION BUSINESS - DEFINTION STRATEGY STRUCTURE SYSTEM PROCESS CORPORATE BUSINESS FUNCTIONAL SIMPLE TALL FLAT ADHOCRACY SIMPLE COMPLEX OPEN CLOSE PLANNING ORGANISING STAFFING DIRECTING (LEADING) CONTROLLING JOB TASK OUTPUT OR OUTCOME

Organizational Process – Vision & Mission A vision is a goal that is “ massively inspiring, overarching and long term”. It represents a destination that is driven by and evokes passion. A vision may or may not succeed; it depends on whether everything else happens according to a firm’s strategy A vision statement is a formal statement of what business wants to be.

Vision statement "the world's most respected service brand." 

Organizational Process – Vision How do we make a vision? A vision statement should have four parts ( Collins and Porras). They are: Core values Core Purposes BHAG ( Big Hairy Audacious Goals) Vivid Description

Organizational Process – Vision Core values are those things which are very close to your heart that you will not give up at any cost. It can be integrity or quality. Usually all companies will have 4 to 6 core values. This is something you want to achieve within the framework of our core values. It gives achievement orientation to business CORE VALUES CORE PURPOSE

Organizational Process – Vision This is about having a goal which qualifies the purpose. BHAG should be big, yet specific and your chance of attaining should be more than 70% It should be simple and easily understandable It can be understood by your grandmother as well as a 12 year old child. ( called as Grandma’s Test or the 12 Year Old Test) The BHAG VIVID DESCRIPTIOIN

Organizational Process – Mission Mission is the purpose for the existence of a company. It is always defined from the point of view of the customers. It explains what the company want to do for the customers and other stakeholders (public, government, suppliers, employees etc) so that the company can achieve its vision easily.

Mission Statement : Definition A sentence describing a company's function, markets and competitive advantages; a short written statement of your business goals and philosophies. It explains what the company intend to do to achieve what it want to be. ( The efforts that will be done by the company to achieve its vision)

Mission Statement Mission statements define the organization's purpose and primary objectives. These statements are set in the present tense, and they explain why you exist as a business, both to members of the organization and to people outside it. Mission statements tend to be short, clear and powerful.

“To instantly connect people everywhere to what’s most important to them.” Twitter "To bring inspiration and innovation to every athlete in the world.“ Nike

Organizational Process – Strategy Strategy means the grand plan and the term is borrowed from the military which is distinguished between the grand plan and actual action by calling former as strategy and the latter as tactics. Strategy can be divided into three. Corporate Strategy Business Strategy Functional Strategy

An organization is structured at three levels as follows: Corporate Strategy STRATEGY An organization is structured at three levels as follows: CORPORATE LEVEL (Board of Directors, CEO etc) Business Level SBU 1 Strategic Business Unit (SBU ) 2 Strategic Business Unit (SBU ) 3 Functional Level (Marketing, Finance, Operations etc) Functional Level (Marketing, Finance, Operations etc) Functional Level (Marketing, Finance, Operations etc)

STRATEGY

Organizational Process - Structure Structure follows strategy In small organization, the structure is simple and the structure comprises of few departments. In big organizations, it will be divided between different departments such as finance, marketing, production, HR etc Each department will have a head, some people, a rule for communication etc. These basic pillars on which the business is built are called the structure

Organizational Process – Structure Structures can be: Simple ( small organizations) Hierarchical ( Tall and Flat Structure) Adhocracy (Structure of future where information flow takes place in all directions thus enabling organization to take advantage of opportunities as never before) Matrix (Reporting to local in charge as well as the in charge of the department in HO. Used by MNCs)

Tall and Flat Structure

Matrix Structure

Adhocracy

Organizational Process – Systems The system is the way we group functions, create a logical order, organize the flow of information and resources and let it run almost by itself. Each system is independent as well as interdependent. For example, marketing system is dependent upon HR system to get people , but at the same time act independently.

Organizational Process – Systems It is easier to think in terms of human body system consisting of the cardiovascular system, digestive system etc. Cardiovascular system is fairly independent but it is also dependent on other systems for energy. In business too, we have systems such as HR, operations, finance, marketing etc. Now a days, more systems are added such as Supply Chain Management, International Marketing etc.

Organizational Process – Systems System can be simple, complex, open or closed. Typically every system would have: Input (raw materials, resources etc) Throughput ( the way it is mixed and connected) Output ( a final or interim product )

Management Functions (Process)

Organizational Process – Processes Process is a set of logical activities that lead to some final or interim output. For example, to manufacture some thing or to provide service, there is a logical sequence. For example, to manufacture something, it should be planned, resources should be coordinated, sufficient manpower should be provided, proper direction should be given and the work should be controlled and monitored. Thus at business level some process come into play.

Organizational Process – Processes These are called as management functions as given below: Planning Organizing Staffing Directing/Leading Controlling

Organizational Process – JOBS Each process is made of several jobs. A job is a set of similar activities. For example, the job of a teacher involves the task of preparing for the class, teaching, making question papers, correcting papers, giving feedback to the students etc. So a job is a cluster of similar tasks. The size of this cluster depends on the capacity of a person to do it. For example, in a small school, a teacher may do all those jobs but if it is a university, then many people will do one task

Organizational Process – TASKS (Activities) This is the most basic unit in an organization. In a big organization, a person may be performing only one task ( for example, in accounts department, one accountant may be handling accounts receivable, another may handle payable whereas a third person may be doing bank reconciliation). So the activity that is performed by a person in one particular department can be termed as tasks.

Activity 1 Read the case given in the next slide and try to answer the question from the point of view of your organization.

Suppose you are working in a small organization manufactures industrial batteries. You are well known for your quality and have a quality assurance department of five people and a manager and a sales team of one senior manager and 18 sales staff. The HR department is rather small with 3 staff and no manager and also the finance with only 4 people. They report to the General Manager directly and the GM takes care of the manufacturing as well. There are 60 people in the manufacturing which includes packing, purchase and dispatch in addition to the actual manufacturing process. Question What sort of structure are you likely to have? Justify your answer

Activity 2 Think about your organization. Check the following: What is your organization’s mission and vision? Think about the structure of your company. It is falling under tall, flat, matrix or adhocracy or a combination of these. What is your task in your organization? Are you doing a job or task? How many people are working in your company? Try to design an organizational chart, if it is not available.

Importance of Understanding Your Business If you understand the serial effect of the above organizational study, you will also appreciate that when you try to solve an organizational problem, you will be able to do it at the appropriate level, i.e. if you have a system problem, solve it at the level and don’t try to fix the structure. If you solve at a higher level than needed, then you will be wasting resources as you will have to adjust the lower levels tools and if you solve at the lower level, the problem persist as the issue will not be completely addressed. In a fast changing world, the manager should understand the above in order to pitch change at the appropriate level.