MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Welcome to the session on Principles of Organizational Design.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

In this session, we will understand about the principles of organizational design.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

You have one chance at organizational design and it takes a lot of time and effort.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

If you do not get it right, you are not going to reap the rewards.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

This makes it important to know the principles of organizational design

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

and how to move through the process correctly.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Every organization is different, of course, but they all share certain commonalities.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

While the 10 guiding principles may alter slightly depending on who is applying them,

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

they remain a fair roadmap for leaders who are looking to recalibrate their organizations

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

to attain some of the many benefits possible from organization design.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Principle number 1. Free yourself from the past.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

The organization has to work effectively at itself.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Its purpose and how changes to those foundational pillars will affect clients, employees and investors.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

As you begin to explore changes, think about how they can differentiate your firm from the competition

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

and how these changes will play out over the next few years.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Second principle.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Design with knowledge of your DNA.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

In order to know what to prioritize in organizational design,

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

set back and identify the universal building blocks of your organization.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

All organizations can be divided into tangible or formal elements

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

such as how decisions are made, how data is processed and how work is divided.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Businesses also have intangible or informal elements such as how people act and are inspired to contribute.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Third principle is fix your structure lost.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

The organizational chart of the company might seem like the logical first step

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

but you want to create a bridge that will carry the organization from the old ways to new ways.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

It is a common mistake to think that you can simply jump from one structure to another.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

That structure is the final step after you have done everything to support it

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

and the changes it will initiate.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Fourth principle is use your top talent.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

You make a change by empowering the people in your organization.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

So no matter what structural changes you plan on making,

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

you want to identify the strength of your key performers

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

and make sure they are empowered to collaborate and facilitate those changes.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

The leadership team is responsible for successful organizational design.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Principle number five.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Know what you can control.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

It is important to list the constraints that are slowing you down as an organization

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

and the sacrifices that you are always making.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Know your limitations before any attempt to execute a new organization design.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

You should also be aware of the regulations, supply shortages and consumer demand

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

that are out of your control

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

but don't depend too much time focusing on the things that you can change.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Sixth principle is promote accountability.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

You want to keep everyone accountable for their jobs

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

which requires a transparency and clear communications, not micromanaging.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

This is likely the single most important change you can make to your organization.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

If communication flows without obstruction

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

and everyone is taking responsibility for their work,

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

the structure you design is going to work better.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Seventh principle is benchmarking is not as important as you think.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

There can be problems with tracking what competitors are doing

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

but it can help optimize your design and expose hidden issues.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

It also shortchanges your unique capabilities.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

It is not productive to compare your organization to others

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

that might have a different value proposition or capabilities.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

If you must benchmark, focus on select elements rather than the whole organization.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Eighth principle is organization design should fit company purpose.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Every organization is different

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

and the right structure for your organization will likely not fit another.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

While designing the organization makes sure

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

it aligns with your purpose and is consistent across the organization.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Ninth principle is don't neglect the intangible elements.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

It is easy to focus on the tangible elements of organizational design

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

such as decisions, rights and the organization's art

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

but that won't get the results you want.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Instead, balance the tangible with the intangible

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

if you want to get the things done.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

The tangible is important

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

but without addressing how people think and act in the structure

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

you won't change anything.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

The tenth principle is build on your strength.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

One of the best ways to implement a successful organization design

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

is to build on your strength.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Often the organization design is so far from the organization's core values and strength

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

that it is destined to fail.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Make sure to find the organization's strength and build on that foundation.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

So these key principles of organization design

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

are explained in this diagram.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Key principles include specialization, coordination, knowledge and competence,

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

control and commitment, innovation and adaptation.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

They are influenced by size and lifestyle, strategy, environment, technology and culture.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Break for questions.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Dash is the formal arrangement of jobs within organizations.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

A. Organizational structure B. Organizational design C. Work specialization D. Apartmentation

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Correct answer is organizational structure.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

So organizational structure is the formal arrangement of jobs within an organization.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

So organizational structure is also an element of the organizational design.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

In some cases both are interchangeably useful.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Organizational structure is an indispensable means

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

and the wrong structure will seriously impair business performance and even destroy it.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Who has given this definition?

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

A. Lewis Allen B. George R. Terry C. Peter Drucker D. Herald Coons

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

So the correct answer is Peter Drucker because

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Lewis Allen, George R. Terry and Herald Coons have given definitions for management.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

In this session we have understood about the principles of organizational design.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Happy learning.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian)

Thank you.

MBA_OB_unit 5_week 13_seq4_Prinicple of organisational design _pandian

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