Understanding Indian organizations

Description
This is a presentation describes on the —understanding of Indian organizations post open economy, —challenges to leaders in this environment, —causal Texture of Environmental context- Ansoff Model, —4 Types of organizations-Ansoff Model.

Understanding Environmental Context
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PGPM 609 SPJIMR 2010

Overview
?Understanding Indian organizations post

open economy ?Challenges to leaders in this environment ?Causal Texture of Environmental contextAnsoff Model ?4 Types of organizations-Ansoff Model

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Indian Leadership Context
“Indian leaders…..have been trained or groomed in extremely fluid, dynamic, uncertain environments. Thus, they have a much greater ability to cope with uncertainty, they don’t get disturbed by uncertain events, they keep an even keel. …they also tend to be more creative as a result, because they have to face these sorts of untoward situations almost on a daily basis.” Hindustan Unilever’s former CEO Manvinder Singh Banga, Harvard Business Review March 2010

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Opening up of the Indian Economy
?Productivity ?Product quality ?Customer service ?Business ethics ?Innovation

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Environment Dictates the Needs
?Process information and make decisions
(Huber, 1984)

?Solve complex and ill defined

organizational problems, ?Balance the competing demands of the external and internal environments
(Mumford, Zaccaro, Harding, Jacobs & Fleishman, 2000)

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Causal Textures of Organizational Environments
?Varying degrees of complexity, ?Levels of turbulence, and ?Corresponding adaptive responses
Emery and Trist

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Simple to Complex Environmental Context
?Type 1 - ‘stable’ ?Type 2 - ‘reactive’ ?Type 3 - ‘anticipatory’, ?Type 4 - ‘exploring ’

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Type 1
?Stable / reactive ?Environments change slowly and

management (after the event) control is sufficient Name Sector/Industry and organizations within this type

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Type 1 Organizations
?reputation of stability ?facing no imminent challenges in the

near future ?Operating in a core sector ?reaping benefits from changing governmental policies ?emphasizing knowledge sharing systems ?developing learning capabilities in individuals, to retain talent and manage change
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Type 1 examples
?Engineering

?What are the Leadership Challenges?

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Type 2
?Reactive / anticipating ?environments exhibit mid-levels of change ?require management by extrapolation (of

the past) to guide future action.

Name Sector/Industry and organizations within this type

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Type 2 Organizations
?Growing and have explored the route of

joint ventures and acquisitions. ?The focus is improvement of organizational efficiencies through organizational restructuring as well as developing systems ?challenges exist in terms of improving productivity and maintaining the capability
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Type 2 examples
?Oil & Natural Gas ?Shipping

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Type 3
?Anticipating / exploring ?environments exhibit more rapid and

discontinuous change which is, nevertheless, still slow enough to allow management by anticipation.

Name Sector/Industry and organizations within this type

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Type 3 Organizations
?customer relationship building and

improving services to the clients ?monitoring the organizational health ?enabling a participative and empowered culture ?tweaking the organizational design and structure to better respond to the environment

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Type 3 examples
?Office Equipment ?Services ?Advertising ?Pharmaceuticals

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Type 4
?Exploring / creative environments are

characterized by rapid and unfamiliar change and require management through flexible and rapid response. ?Name Sector/Industry and organizations within this type

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Type 4
?The organizations were growing through

both organic and inorganic means ?were constantly reworking their strategies in case of failure to cope with an ambiguous environment. ?strongly value driven, and their leaders do not compromise on the organizational values in the face of conflict laden situations.
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Type 4 examples
?Shipping ?Retail ?Logistics ?Healthcare ?Publishing ?Business Process Outsourcing ?Banking ?Media

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Leadership in Type 4 environments
?transformational change due to

increasing demand from the population as well as innovations in the marketplace ?intensively engaging with the environment to seek information and were focused on trying to design management and organizational structures to cope and interact with the environment.
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Leadership in Type 4 environments
?Type 4 organizations see turbulence as

an opportunity to grow (rather than a problem to be solved), this view might be an influencing factor in coping strategy design. ?The increased turbulence in the environment probably causes the leaders to constantly scan and assess it, thus making it critical for them to institutionalize regular and formal review and tracking mechanisms.
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Leadership in Type 4 environments
?They relied on innovative strategies,

creating learning environments, collaborating with competitors (as in the cases of Future Logistics and More), seeking information and unconventional ideas from their stakeholders in order to cope with the environment.

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Leadership in Type 4 environments
? The leaders’ actions focused on making sense

of their environment and gaining a personal understanding of the context. ? focused on building relationships and engaging with people; created enabling structures within the organization coupled with tight review mechanisms for tracking relevant and significant data. ? building and articulating the all important vision for the organization. ? the organizational vision was articulated and widely communicated to all employees.
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Type 4 organizations
?have ambitious growth targets and are

focused on building capability to achieve the targets, ?possessed distinctive competencies such as an innovation focus, ?collaborating with competitors to succeed and ?actively listening to stakeholders.

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Type 4 Culture
?transparent communication, ?empowerment of employees and ?participative decision making ?an open and team based culture ?a learning culture

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Leaders in type 4 environment
?enablers such as their people skills -

understanding people; appreciation; collaboration; building and managing relationships; Listening skills; Empathy; Patience; Counseling; consensus building: aligning people towards work issues

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Leadership in Type 3 environments
?Building alignment with values and goal

clarification, ?undertaking problem solving measures ?as building consensus and support using initiative ?displaying performance measures

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Leadership in Type 3 environments
?Leaders are inclined towards carrying their

teams with them as well as deal with the externalities

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Leadership in Type 2 environments
?correcting the internal organizational

processes and retaining their employees ?managing perception through communication ?creating efficient systems, ?focus on maintenance functions.

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Leadership in Type 1 environments
?Organizational Improvement with the

actions of the leader centering around initiative taking ?managing employees through counseling, training and developmental activities implying a focus on the capability building of employees. ?The leader may rely on domain knowledge as well as people skills.
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