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7/31/2019 Ospd Deepu
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Submitted by
Deepak Soni
Submitted to
Dr.Janaki Naik
By Marcia W blenko
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Consists of activities Task allocation
Coordination
Supervision
Towards achievement of goals & objectives
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MYTHS Organization structure is the key determinant
of financial performance.
Job of CEO is to put right person in right jobJob of army officer to put right troops in right
place.
Reorganization is important for cost cutting
and to achieve growth.
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Organizational structure is not the onlydeterminant of performance.
A change in structure to gather more creative inputmay end up with too many peoples involved and
thereby slowing the pace of decision making.
Similarly it happened with YAHOO.
In 2008 Bain & Company surveyed 760 companiesdecisions effectiveness
Decision quality
Speed
Yield
Effort
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Then scored with firms financial performance. companies who got 71/100 were found with
good decision execution throughout.
Found there were still scope of improvementfor companies who scored 30%.
Mainly it proved no relationship betweenstructure and performance can be
established.
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To stack up against the competition. when looking back on critical decisions we find we choose right
course of action
Q1) When looking back on critical decisions, we find that we choose
the right course of action ( Q SCORE ) 1 never
2 infrequently
3 some of the time
4 Most of the time
Q1) We make critical decisions ( S SCORE )
1 Much slower than competitors
2 Somewhat slower than competitors
3 Somewhat faster than competitors 4 Much faster than competitors
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we execute decisions as intended ( Y SCORE )
1 Never
2 Infrequently
3 Some of the time
4 Most of the time
Were off the charts
We put in somewhat too much/nowhere near
enough effort We put In somewhat too much/too little effort
We put imn exactly the right amount of effort
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1) 2) 3) 4)Strongly disagree Diagree more than agree Agree than disaagree Strongly agree
Our structure help rather hinders the decisions most critical to our success
Individuals understand their roles and accounatability in our most critical decisions
Our process are designed to produce effective,timely decisions and action
The people in critical decision roles have the information they need when and how theyneed
People understand their priorities clearly enough to be able to make & executedecisions they face
Our culture reinforces prompt, effective decisions and action throughout the org.
>35 great , 31-35= good but need improvement, 26-30=structure is barrier, 10-25=
major change is required.
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Identify your organizations key decision
Determine where in the organization thosedecisions should happen
Organize the macrostructure around sources of
value
Figure out what level of authority decision makersneed
Align other elements of the organizational system
such as incentives, information flow, process Help managers to formulate skills and behavior to
execute decisions.
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In 2006 division faced seriousperformance crisis.
Examined service, geographic, customersegment.
Discovered profitability and growth variedwith customer segment
1st segment used large amount ofgas/electricity with 2nd slight low and 3rd as
lowest and inconsistent. On the basis of this problem recognized
following decisions were proposed.
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Established three business Premier energy - Energy first -pay as you go
This structure directly affected customerssuch a service level, positioning, andproduct bundling
Reduced customer attrition from about 20%to less than 10%Reduce in bed debtGained business growth
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Adjusting to new structures that can be bothmacro or micro change.
New structure = New boundaries
That can make effective more difficult.
So they should be interconnected.
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