Facilitator and Course Coordinator:
Vinayshil Gautam PhD, FRAS(London)
(Founder Director IIM K; Leader Consulting Team IIM S)
A Al_Sager Chair Professor and First Head,
Management Department, IIT D
Chairman, DKIF
Organizations are all pervasive
 Family-First Organization
 Place of work Another Organization
Organizations are required as needs
cannot be satisfied by individuals
 Need for goods & services
 Sociological needs
Means to wrest power and exert influence
on others
Requires designing organization structure
in such a manner that:
Objectives are achieved
Jobs are well defined
Information flow is smooth
Coordination and control can be performed
Eg :- Employee organizations
Specific purpose-documented or verbal
Organizational members
Hierarchies of Authority and Accountability
Operate at some state at all times
 Strategies required if moving from chaotic
conditions to healthy conditions
Part of macro environment consisting of society,
competitors, vendors, financial institutions
Have a Value system
Structure
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organization
Structure
Anatomy
Processes
Physiology
Behavioral
Psychology
Right Hierarchy
What should be span of
control
Designing of line and staff
functions
Nature of Management
Information System
Work Methods
Job Definition
Performance Appraisal
methods
Centralized or Decentralized
Decision making
Patterns of Communication
 Top to bottom
 Bottom to top
 Across horizontal levels
Way of Coordination
Control Mechanism to be
adopted
Nature of affiliation of
Human Beings
How members are motivated
or demotivated
Influence through inter
personal affiliations & group
formations
Nuances of leadership
Most Uncertain and
unpredictable aspect of
organizations
OD refers to coping strategies or
interventions which enable the organizations
to consciously move from chaotic conditions
to those which promote healthy operations to
achieve organizational effectiveness. It
includes:
Design Interventions
Technology Assessment
Management by objectives
Diversification and growth Strategies
Training and Development
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Rightsizing is managements
reduction in their organizations use
of human and/or capital resources to
correct misalignment and improve
performance when organization
decline and environment decline are
present.
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ORGANIZATION DECLINE
-GENERATED BY
MISMANAGEMENT
Requires Structural
arrangements/changes in:
Standardization
Formalization
Centralization
Structural differentiation
ENVIRONMENT DECLINECAUSED BY CHANGES IN
COMPETITIVE ENVIRONMENT
Requires strategies
directed at an
organizations domain:
 Changes in breadth of
products
 Changes in markets
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I. Structural and Domain retrenchment
II. Structural Retrenchment and Domain
Reorientation
III. Structural Reorientation and Domain
Retrenchment
IV. Structural and Domain Reorientation
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DOMAIN RETRENCHMENT
STRUCTURAL
RETRENCHMENT
Breaks current
portfolio of
products/markets
Increases separation
between performance
of work and its
evaluation
Increases horizontal
differentiation
Span is reduced &
layers of authority are
added
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STRUCTURAL
RETRENCHMENT
Increase vertical
differentiation
Decreased
formalization and
standardization
DOMAIN REORIENTATION
Identify defensible
core of products or
markets
Increase effort within
that domain
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STRUCTURAL
REORIENTATION
White collar layoffs
Direct employment
cuts
Layers of authority are
eliminated
DOMAIN RETRENCHMENT
Elaboration of
products & markets
thru horizontal
differentiation to
pinpoint troubled
domains
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STRUCTURAL
REORIENTATION
Decreases in
standardization
Decreases in
formalization
DOMAIN REORIENTATION
Decrease in horizontal
and vertical
differentiation
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