MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

Welcome to the session on determinants of organizational design. In this session,

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

we will understand about the determinants of organizational design.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

Introduction. Organizational design is as much an art as it is a science. The process of creating

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

a system in which people can work together to achieve common goals is highly complex

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

and there is no one way to do it right. Organizational design is the administration

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

and the execution of an organization's strategic plan. This means that the organization's strategy

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

determines the optimal organizational design. Organizational design is about creating the best

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

fit between the strategic choices of the organization and the organizational setting.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

Organizational design is determined by the strategic direction of the company, namely the

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

vision, mission and goals of the company. These lead to strategies that the company competes on,

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

which are enabled through the organizational design. Determinants of organizational design.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

One strategy. The organizational strategy is the most important starting point for organizational

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

organizational structure and design. Michael E. Porter proposed that organizations can compete

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

through lower cost or through the ability to offer distinctive products and services which command

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

a premium price. The second step is to determine whether the organization has a narrow or broad scope.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

This means that the organization either competes in many or in select customer segments.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

This resulted in Porter's competitive strategies framework in which four competitive strategies are

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

identified. They are cost leadership, cost focus, differentiation and differentiation focus.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

2. Environment. The environment also impacts organizational structure and design. The industry, raw materials,

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

market, governmental and socio-cultural influences all shape the required design to

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

different degrees. The most important factor is environmental stability. There are two dimensions that influence

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

environmental stability. One simple complex dimension. This refers to the degree to which external factors

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

influence the organization and competition. There are multiple for large companies such as AT&T and British

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

telecom where all previously mentioned factors act on. In comparison, a family-owned hardware store in a suburb faces low environmental complexity.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

3. Stable-unstable dimension. This refers to the elements in the environment that are dynamic. Big consumer brands like McDonald's are influenced by online media.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

They are highly visible on platforms like Twitter, Instagram and TikTok and a single tweet or blog post can greatly damage a brand.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

On the other hand, public utility companies have been stable for a long time.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

3. Technology. Technology greatly influences organizational design. We saw this through the COVID crisis where many companies effortlessly went digital and some even closed their offices.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

4. World Press. World Press, a popular blocking platform, has a 100% remote workforce. This is possible through the extensive use of technology and technology-driven collaboration.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

5. Information technology also enables organizations to become more decentralized, improve horizontal coordination through intranets, and external collaboration becomes possible through extranets.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

5. In fact, Slack, one of the most used collaboration tools, allows internal and external collaborations to join the same team through different internal and external channels, enabling fast communication.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

6. Size and Life Cycle. Size is another factor that impacts organizational design. Small organizations are usually responsive, flexible, flat, organic, and entrepreneurial.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

7. Large organizations create value through efficiencies, have a global reach and brand, a more stable market, and put more emphasis on managers. This leads to different organizational design choices.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

7. As organizations grow, they go through different stages of development. Knowing which stage of organizational life cycle a company is in helps to spot misalignment between the organizational goals and strategies.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

8. And the organizational structure. In addition, it helps to identify which crisis the organization is likely to face.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

9. Culture. Every organization has its own unique culture based on their values, assumptions, beliefs, attitudes, feelings, stories, heroes, symbols, language, and habit.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

9. Different cultures lead to different organizational structures. An internally focused organization will have more collaboration.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

9. While an externally focused organization will have more customer facing project groups and business units.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

10. So the determinants of organizational design are explained in this figure.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

10. The causes include strategy, size, technology, environment.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

10. They determine structural changes, mechanistic and organic structures, which we will discuss later.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

11. It leads to performance and satisfaction and moderated by individual differences and cultural norms.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

11. Break for questions.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

Question number 1. What is not a purpose of an organization design?

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

12. A. To coordinate people and resources.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

12. B. To organize lines of communication.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

13. C. To formalize authority.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

14. B. To limit workers' rights.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

So the correct answer is D. To limit workers' rights.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

Because the purpose of an organization is to protect the workers' rights and not to limit the workers' rights.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

Question number 2. Organizational design is based on decisions about

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

14. A. Work Specialization and Mechanism.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

15. Centralization and Matrices.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

15. Strategy and Structure.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

15. Chain of Command and Span-off Control.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

15. Because organizational design is based on decisions about

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

15. Work Specialization and Mechanisms.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

15. Because the purpose of organizational design is to increase the organizational efficiency.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

which can be achieved through increasing their specialization work specialization in this session

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq1_Determinants of organisational design _pandian)

we have understood about the determinants of organizational design happy learning thank you

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