SBenegaL

Blog

  • Engineering and Administrative Phases of Organizational Adaptation

    In the last blog we looked at the Entrepreneurial problem phase of the organizational adaptation process. In today’s blog we look at the next 2 phases- Engineering Problem and Administrative Problem.
    Engineering Problem
    The entrepreneurial problem when addressed would involve operationalization of the management’s solution – the creation of such a system is what the Engineering Problem summarizes. 
    The management would have to select an appropriate technology (in the management sense of the word, i.e. input-transformation-output process) for producing and distributing chosen products and services and to form new information, communication, and control linkages to ensure proper operation of the chosen technology  – These are what the system would encompass.
    One should also note that, the three problems don’t wait for a solution of the other to reach and then move it, Even as the Entrepreneurship Problem is in motion, the management would try to adapt a system giving rise to the Engineering Problem which when achieves some progress would attract the implementation of the Administrative system.  It is during the administrative phase that the actual form of the organization’s structure will be determined as the relation between the management – environment is formalized through formal processes for coordinating and controlling internal operations.
    In the TV case again, we find that the company’s redefinition of its domain required a change in its technology from mass-production technology to unit/small-batch technology!
    Administrative Problem
    The primary goal of most organizational administration is to reduce the uncertainty within the organizational system. It could also aim at rationalizing and stabilizing those activities which successfully solve problems faced by the organization during the other two phases. 
    The challenge at this phase doesn’t stop at rationalizing a model, to really succeed in the long run, the company would have to formulate and implement processes which would enable organizations to continuously innovate. 
    In the next blog, we shall look at this rationalization and Articulation process in a greater detail.

  • Entrepreneurship Problem in the organization’s adaptation process

    In the last blog, we looked at the types of challenges an organization could face when it attempts to adapt to the environment around. In today’s blog, we look at the first of these problems – “Entrepreneurial Problem”.
    The adapting cycle is most visible in the start-up organizations. These organizations are in a state of continuous flux, fighting for their survival with the environment in which they operate. They constantly grapple with the challenges at hand, with a lack of structure, processes etc. In a new organization, an idea (could also be called in the current context – “an entrepreneurial insight”), perhaps only vaguely defined at firs must be developed into an organizational domain: a specific good or service and a target market or market segment. 
    When looked into from the context of an ongoing organization, the entrepreneurial problem has another dimension – this is since the organization would have already found a set of solutions to its “engineering” and “administrative” problems. The entrepreneurial energy doesn’t easily get transferred primarily as a result of the stability that the organization would have achieved. If we relate the context with reference to TV case the initial struggle when the company attempted to modify its products and market was constrained by the existing production process and the expertise of the general manager and his staff.
    The entrepreneurial problem of adaptation cycle receives a logical end when the management accepts a particular product-market domain, and it become more evident when the organization commits resources to achieve the objectives relative to the domain. The commitment to entrepreneurial solution in the large ongoing businesses generally is sought through the development and projection of an organizational “image” that would define its market and the approach towards the market. GE’s commitment to only compete in markets where it would be number one or two and leave the others is one such creation of an “image”.

  • Problems of an Organization Adapting to change

    In the last blog, we had a case of TV which we would begin using for the next few blogs to understand the concepts of management. We begin today’s blog with the very famous question – Does strategy drive the organization structure or does the Organization structure drive the organization’s strategy. The school that believes Organization behavior is only partially preordained by the environmental conditions and that the choices which top management makes is critical determinants of organization process and strategy is called the strategic-choice school. 
    To link the context to the TV case, it would be easy to understand that TV had to experience a change in its products and markets, to handle these it had to change the technological processes, the administrative structure that used to plan, coordinate and control the company.
    The general focus over the next few blogs is again the process of organization adaptation which we call as the “adaptive cycle“. Specifically the adaptive cycle could be thought of as comprising of 3 problems listed next.
    The choices that the organization’s top management is many, but for the sake of simplicity to understand how the organization adapts to its changing environment, we could clarify the problem of Organization Adaptation into 

    1. Entrepreneurial Problem
    2. Engineering Problem
    3. Administrative Problem

    It would be hard to state where one problem ends and the other begins, and many a times the management of the organization would have to simultaneously handle multiple problems. Just for the sake of understanding these better it would be a good starting point to analyze these 3 separately.

  • Chunchi Falls

    It had been over a month and half since I had been to Kudremukh along with a few of my relatives, this time I was looking for something closer, something that could be done within a day.

    I had been to Mekedatu and Sangama while at school, and while searching for some places to visit around Bangalore, in addition to these I found this place – Chunchi Falls.
    Chunchi Falls is lacated around 75 km from Bangalore. This falls is formed by the river Arkavathy which has its origin at Nandi Hills. With the rapid urbanization of Bangalore, the catchment area of the river is seriously affected.
    This river joins the River Kaveri at Sangama and later flow through rapid stone gorge called Mekedatu. We shall discuss this in some other blog on travel and trek. Today’s blog is about our journey to Chunchi Falls and the experience there in. 
    It had been long since I had spent time with my family and so decided to get going on a trip with family. The location choice was mine – Chunchi Falls. I had heard about the falls a few times when I was planning some treks, trips over the last few years but had never made the move to reach the place. 
    From the blogs I had read, I had gotten to know that the falls would be around 75 Km from Bangalore and one had to cross Kanakapura Town and move in the direction of Sangama. 
    We set out on 24th December around 11 AM from our home towards the falls. It was car drive and together with me on the trip were my parent, my spouce Sahana and my cute niece – Pratiksha. We drove pretty steadily through the traffic in bangalore before we hit Kanakapura road. 
    It was probably the first time my parents had driven out in our car on the Kanakapura road. We moved past the Metro, before the traffic began to subside. The rest of te drive was pretty peaceful. You move in front of the Art of Living campus, then beside the campus of APS College of Engineering etc before we reach Harohalli. 
    Another 20 minutes drive from Harohalli we reach Kanakapura. Just as we enter the town of Kanakapura, we cross a bridge across the River Arkavathy. All along the journey this far, we find hills which appear to recemble various creatures – depending on your imagination!

    We reached Kanakapura a few minutes after 12:00 noon. We moves through the town’ main road and then came to the road taking us to Sangama. We move for quite some time on this road till, we find an arch (not in the general sense of the word – but more to indicate an entrance). This is where we need to take a left turn and drive down the narrow road till we reach the parking lot. (The roads are bit narrow and its good to keep an eye for the vehicles coming from the other side).

    The falls is supposedly best between early winter and early summer. One has to keep in mind that the falls is no perennial, and it is the rain-fed river which forms Chunchi falls. We reached the parking lot, just on the banks of River Arkavathy, when we found a localite run towards us with a receipt book – the parking fees for a car is Rs 30/-
    Just as we move towards the river, we first encounter a channel with water. This channel takes water from the small dam upstream to the power-station a short distance ahead. 
    We crossed the channel and began defending towards the river – The river flows along rocky bed of Arkavathy. At various points you would find small deviations from the trek route that take you down to the river. Any point would take you to the big heart shaped pool that the river creates before it decided to take a leap downstream. 
    One can reach to the top of the point where the falls finally makes it leap! The only precaution one would need to take is the smooth surface of the rocks. While the smooth surface is just one of the issues to take note of, the other challenge is that of  broken bottle pieces which the weekend parties of the bangalore crowd leave behind. 
    I still wonder, why we literate people do not understand that they have to be socially more responsible. The various waste that we produced as part of our joy is also our responsibility to dispose them without creating trouble for the others who too visit the place for enjoyment. 
    I some how wasn’t very happy with having visited the top of the falls, I could still see faint strains of another falls close by and being the fall lover I am, I would love to get a view of the other one too. I spotted a view point on the opposite side of the falls. I quickly realized that would give me a view of both these falls.
    We got back onto the return ascent to the channel and then took the jeep track to the view point. Its around a kilometer from the channel, and is relatively undisturbed. 
    The view of the 2nd falls from the view point was something that gave me a good satisfaction. The falls had 2 cascades and had a lot more water flowing when compared to the mail stream flowing.
    We reached the view point, munched the junk food we carried and had some snaps clicked before we decided to return back.  The view point however is not well maintained and if I could say is almost neglected. 
    This place too like many of the other places in Karnataka, has enormous potential but doesn’t get the required attention and dedication towards ensuring that the potential is expiated and also gets little maintenance.
    With these thoughts in the mind we began the return journey, when I woke up to the reality at hand. We had skipped lunch, so we had to get back to a good hotel to have some food that was to get us going back home. 
    We reached Kanakapura, had our lunch at a Udupi hotel that was at the entrance of Kanakapura just after having crossed over the bridge across the River Arakavathy when coming from Bangalore. My parents purchased some vegetables on the way back and we resumed the drive back home.
    The journey was pretty simple till we reached Metro, the rest was a drive through the city traffic and we finally reached home at 7:00 PM. 
    After many days it was a time well spent with family, and I wouldn’t be surprised if I would repeat this and get it to be a routine.

  • Changing Environment – changing response

    In the last blog, we concluded the implications of history to a practicing manager. Now, before we continue with the next set of blogs on organization development, and their process of growth. Let us look at a small case, though a bit old it would be give us a good starting point for the discussion over the next few blogs.
    TV is a semi-autonomous division of a medium sized equipment manufacturing firm which is part of a large, highly diversified conglomerate. TV manufactures a line of heavy duty pumps and some components for fluid movement systems. The company does most of its own castings, makes many of its own parts and maintains a complete stock of replacement parts. TV also does special-order foundry work for other firms as its production schedule allows. 
    Until recently, TV had defined its business as providing quality products and services to a limited set of reliable customers. TV’s GM, a first-rate engineer who had spent most of his time in the machine shop and foundry, personified the company’s image of quality and cost efficiency. In the mid-90’s corporate management became concerned about both the speed and direction of TV’s growth. The management and staff at corporate headquarters began considering two new product and market opportunities, both in the energy field. Fluid movement systems required for nuclear power generation provided one of these opportunities, and the development of novel techniques for petroleum exploration, well recovery and fluid delivery provided the second. TV had in the past done some large for these markets, but the opportunity now clearly indicated growth opportunities. 
    TV initially moved towards exploiting these opportunities tentatively, the GM realized that the contract sales involved extensive planning, field-contact work, and careful negotiation. These didn’t suit the GM’s primary strength or his area of interest. The Parent organization moved the present GM to another position at the headquarters and in his place got a new manager with extensive background both in sales and engineering and who was adept at large-scale contract negotiations.
    Within a year of this changeover, TV landed several lucrative contracts, and more appeared to be in the offing. The new business created by these contracts, however, placed heavy coordination demands on company management, and while the organization’s technology (production and distribution system) has not been drastically revised over the past 2 years, workflow processes and the operational responsibilities of several mangers have changed markedly. Materials control and scheduling, routine tasks in the past are now complex activities, and managers of these operations meet regularly with the executive planning committee. Moreover, a rudimentary matrix structure has emerged in which various line manages undertake specific project responsibilities in addition to their regular duties. Key personnel addition have been made to the marketing department and more are planned, with particular emphasis on individuals who are capable of performing field planning and supervising and who can quickly bring new fluid systems to full operation. Budget of some of the older departments are being cut back, and these funds are being diverted to the new areas of activity.

  • Manager’s usage of history to predict the future

    Continuing from the last blog, where we began a discussion on the managerial implications of the understanding of history that we had developed, we today look at the next 2 implications for the manager.
    2. Recognize the Limited Range of Solutions
    It is common to find people who would love to use what they have already learnt! In organizations too when you are faced with a new revolutionary change – it is common to be tempted to use the technique that had succeeded the last time. This essentially would complicate problems since the current organization structure is in response to the earlier revolution and the current revolution has grown out of the processes and structure that have evolved through the adaptation learning from the last revolution – seasoned through the evolutionary phase in between. 
    The management should be prepared to dismantle the current structures before the revolutionary phase become extremely turbulent. Top managers too would have to realize that their management style are no longer appropriate and may even have to move out of the leadership positions.
    It is important to note that evolution stage is not an automatic stage; it is a contest for survival. The company would have to consciously introduce planned structures to solve the current crisis but also are fitted to the next phase of growth.
    3. Realize the Solutions breed new problems
    Historical determinants are very much the determinants of what happens to the company at a much longer date. This awareness would help managers to avoid the habit of “pinning the blame” on a current development. A well experienced practitioner would also be able to “predict” future problems – thereby effective solutions and coping strategies could be gotten running before the revolution gets out of hand. 

  • Historical Implications to the manager

    In the last blog, we summarized the various management practices that are prevalent in the various phases of organizational growth. Starting from the current blog, over the next few blogs, we shall look at what this means for the manager! 
    In a recent comment to the post, one of the readers of the blog had indicated that all this is pure “common sense”; this is really the proof that it is intuitive. However, it is really hard for the individual manager who is going through the phase to really realize the challenges that he is currently undergoing and act accordingly. Today’s blog and the next few to follow also deal about this issue. The first of these is:
    The manager should know where the organization is in the developmental sequence
    Recognizing the current stage of growth of an organization is very critical for the Top Management of the organization. This enables the organization to recognize when the time for change has actually arrived, or it may result in imposing a wrong solution to the issue at hand. 
    Many a times the top management tends to work against the tide, realizing the flow and move with it is a good approach to take! It is also important to note that every phase is essential, and in a way strengthens the organization through the learning that is accumulated at that phase, these learning are very essential to the success in the subsequent phases. 
    It would be wise to really let the revolution move in, it is these periods of tension, pressure, which create ideas and awareness that builds the platform for change in the future and acts as a reason for the introduction of the new managerial practices.

  • Organization Processes at Evolutionary stages

    In the last blog, we looked at the last of the 5 phases – Collaboration. In today’s blog, we intend to provide a summary of the management processes of the organization across 1the various phases.
    The diagram below provides the summary.
    Org Processes at Evolutionary Stages

  • Interpersonal collaboration & organization

    In the last blog, we discussed about the phase of coordination understanding the characteristics of the evolutionary scenario there in and the following revolution. In today’s blog, we look at what the revolutionary phase leads to and what would characterize the evolutionary stage there in.
    Phase 5: Collaboration
    The red tape crisis of the earlier coordination phase begins to slowly open up into a more inter-personal collaboration phase. The phase generally composes of temporary teams that work on projects with spontaneity. Social control and self-discipline replace the formal control mechanisms of the earlier phase. 
    All is not rosy at this stage; the transition would be extremely difficult for those experts who created the old systems as well as for those line managers who relied on formal methods for answers. The characteristics of this phase include:

    • The focus is on solving problems quickly through team action
    • Teams are combined across functions for task-group activity
    • Headquarters staff experts are reduced in number, reassigned and combined in interdisciplinary teams to consult with, not to direct, field units.
    • A matrix-types structure is frequently used to assemble the right teams for the appropriate problems
    • Previous formal systems are simplified and combined into single multipurpose systems
    • Conferences for key managers are held frequently to focus on major problem issues
    • Educational programs are initiated to train managers in behavioral skills for achieving better team and conflict resolution
    • Real-time information systems are integrated into daily decision making
    • Economic rewards are geared more to team performance than to individual achievement
    • Experiments in new practices are encouraged throughout the organization

    The possible revolution that follows this evolutionary phase hasn’t been well documented so, we wouldn’t really discuss about these at the moment.

  • Collaboration phase of Organization Growth

    In the last blog, we discussed about the organization development phase of Delegation and the associated characteristics along with the build up to the next revolution. In today’s blog we look at the next phase – Coordination.
    Phase 4: Coordination
    The top-management which had a lot of issues in the delegation phases achieves control over the organization’s functioning in this Coordination phase. The evolutionary period of this phase would be characterized by the following:

    • Decentralized units are merged into product groups
    • Formal planning and procedures are established and intensively reviewed
    • Numerous staff personal are hired and located at headquarters to initiate company-wide programs of control and review for line managers
    • Capital expenditures are carefully weighed and parceled out across the organization
    • Each product group is treated as an investment center where return on invested capital is an important criterion used in allocating funds. 
    • Certain technical functions, such as data processing are centralized at headquarters, while daily operating discussions remain decentralized
    • Stock options and company-wide profit sharing are used to encourage identity with the firm as a whole.

    These coordination systems enable the organization grow efficiently allocating a company’s limited resources. The field manager begins looking beyond the local unit needs. They still enjoy much of the decision making authority, but they would have to justify their actions to the headquarters. This smooth sailing begins to rock when the lack of confidence begins to creep in. 
    The lack of confidence would be between the line and staff and between headquarters and the field. The proliferation of system and programs being to exceed its utility – a red tape is created. A lot of paper work is seen as highly bureaucratic. Procedures take precedence over problem solving, and innovation takes a backseat. The organization would have at the time of the next revolution become larger and complex to be managed through such rigid processes and formal programs. 
    The next phase following this revolution is that of Collaboration