1. WMG 23– ODC – A Few Rules Punctuality
Late by 15 minutes – Not more than twice
If late for the first class, please enter the class only after the break
No intimation through friends
Attendance: As per rules.
Assignments – Claronline, Time Limit
Cases – Please don’t embarrass me…
Quiz – 2 best scores out of 3
Plagiarism

2. The IBM Case Organisation – growth, decline, change
System 360 – ‘complexity’ in business
130% increase in manpower for 97% increase in sales – control vs productivity?
Consensus, non-concurrence, meetings
‘The IBM Way’? What was it? What effect did it have on functioning?
‘Bureaucratic culture’, Bureaucracy run amok – how to find the balance between control and flexibility?
Why did IBM failed to see opportunities in PC market?
‘Values’ of mainframe leadership? What are values?

3. The IBM Case (Cont’d)
‘Values’ of mainframe leadership? What are values? How do they affect performance? Is it ‘necessary to have ‘values’?
Did IBM’s environment change? How does environment affect an organization? What can organisations do to cope with changes?
What impact did IBM’s size have on it’s performance?
Incentive – dress code – direct communication
Did Gerstner shift focus of IBM? Why?

4. Warm Up What do you think this course is about?
How are OB, HRM, ODC (OT), OD similar or different from each other?
What does an organisation do? How?
Why an organisation? Why not an individual?
Theory, Design, Structure, Culture, Change, Redesign
What is the purpose of Organisation Design and Change (OT)?

5. Micro
Macro
Theory OB OT
Application
HRM OD

6. Value Creation
Value creation takes place at three stages: input, conversion and output
Inputs: people, skills, knowledge, r/m, capital
Conversion: manner of using people and technology that converts input into output
Output: finished product produced that is used by the environment

7. Inputs from Environment Conversion (Value Added) Outputs
R/M HR
Capital
Information
Customers
Suppliers
Conversion (Value Added)
Machine
Computers
Competence
Outputs
Goods
Services
Dividends
Salaries
Value to customers
Organisation’s Environment
Customers
Suppliers
Shareholders
Employees
Government
Competitors

8. Why an Organization? Why not individual?
Specialization and Division of Labor
Large-scale use of technology
Economies of scale
Economies of scope (different products with same facilities, same assembly lines)
Manage external environment effectively
Lower transaction costs
Exercise Power and Control

9. Organization Structure
the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals
Can you imagine the systems, processes, structures (committees) in old IBM? New IBM?

10. Organization Culture the set of shared values and norms that
control organizational members’ interactions with each other and with suppliers, customers, and other people outside the organization
Bureaucratic? Rule Bound? HRD Oriented?
Remember IBM?

11. Organization Design
the process by which managers select and manage aspects of structure and culture so that
an organization can control the activities necessary to achieve its goals
Market Orientation?, Management of Change – Change What? Technology, Automation, Work Culture, Product Groupings/Managers

12. Organizational Change
the process by which organizations move from their present state to some desired future state to increase their effectiveness
Why change focus? What happens when goals/focus changes? Why change ‘whole systems’? Why change from a rigid bureaucracy to a flexible team structure or to a Product Structure? And how do you do it? What happened at IBM?

13. Importance of Organizational Design and Change
Dealing with contingencies
Gaining competitive advantage
The ability to outperform other companies because of the capacity to create more value from resources
Core competences
Strategy

14. Managing diversity
Differences in the race, gender, and national origin of organizational members have important implications for organizational culture and effectiveness
Promoting efficiency, speed, and innovation
The better the organizations function, the more value they create

15. Consequences of Poor Organizational Design
Decline of the organization
Talented employees leave to take positions in growing organizations
Resources become harder to acquire
Resulting crisis impels managers to change organizational structure and culture