MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1
Apr 03, 2026 10:57
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Welcome to the session on Importance of Organizational Design.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
In this session, we will understand about the importance of organizational design.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
1. Dealing with contingencies
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
A contingency can be explained as an event that might occur without any expectation
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
and the management should properly plan to meet such contingencies.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
One such contingency is the changing business environment.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
The design of an organization determines how efficiently it can control various factors in its environment.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
The ability of an organization to attract the skilled employees, permanent customers and government contracts
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
are the examples of the degree to which it can control those three environmental factors.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
The structure of an organization should be designed in such a manner so as to increase control over its environment.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
2. Competitive Advantage
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
In the modern competitive age, every organization wants to design its structure in such a way as to have the maximum sustained competitive advantage.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Competition allows a company to develop a business strategy to outperform competitors by producing better products and services.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
The method of designing an organization structure is the important determinant in the implementation of an organization's strategy.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
3. Diversity in Workforce
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Diversity in workforce on account of differences in race, gender and the place of origin of workers
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
has an important impact on organization's effectiveness.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Change in the characteristics of workers such as an influence of immigrant workers and retirement of current workforce require effective planning in advance.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
The organization structure should be designed in such a manner so as to make the optimal use of talent of diverse workforce with different culture backgrounds.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Those organizations that produce goods and services as per the expectations of the people are successful.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
The design and use of new and more efficient organizational structure is equally important in producing quality goods and services.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
In today's competitive environment, countries with lower labor costs are compelling organizations all over the world to become more efficient and competent
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
and reduce costs and also increase quality as per the requirements of the customers.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Designs, research and innovations are being undertaken to attain the desired efficiency in producing the good and the services.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Organizational design plays a crucial role in innovation and research.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Organizations with high mature organizational designs are 30 times more likely to adapt well to change,
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
5.3 times more likely to be a great workplace, 2.3 times more likely to exceed financial targets.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
So the various design work practices are explained in this model.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
One operating model design, design work practices, designing, winning and fit for purpose operating models
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
that include an organization's key building blocks and blueprint such as value chains, structure, people, technology, etc.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Then organization restructuring.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Restructuring an organization to meet design objectives and deep divide into structure roles, accountability and capabilities
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
to divide to drive high performance.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Right sizing, right sizing, focusing on right sizing an organization in terms of FTE requirements and optimizing manpower and workforce to reduce fat and meet company objectives.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Organization agility, embedding agile methods and ways of work into an organization to improve responsiveness, speed and flexibility.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Organization network analysis, analytics, mapping out the informal organization to identify informal leaders, influencers and how work really gets done in an organization.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Break for questions.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Question number one, the overall design of organization structure indicates all of the following except
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
A work activities, B reporting relationship, C departmental groupings and D informal systems.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
So the correct answer is informal systems.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Even though both formal and informal groups exist in the organization, the organization's structural design deals with only formal groups.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
DASH are used to coordinate activities between the top and bottom of an organization and are designed primarily for control of the organization.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
A vertical linkages, B functional groupings, C horizontal linkages and D divisional groupings.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
The correct answer is vertical linkages.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
So vertical linkages are used to coordinate activities between the top and bottom of an organization and are designed primarily for control of an organization.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Vertical linkages means a scalar chain.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
There is a flow of authority from the top level management to the lowest excellence in the organization.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
In this session, we have understood about the importance of organizational design.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Happy learning.
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Speaker 1 (MBA_OB_unit 5_week 13_seq5_Importance of organisational design _pandian_1)
Thank you.
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