SOUND ORGANISATION presentation
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Principles of ManagementPrinciples of Management
Koshish
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SOUND ORGANIZATION IS ANSOUND ORGANIZATION IS ANESSENTIAL PREREQUISIT FORESSENTIAL PREREQUISIT FOR
EFFICIENT MANAGEMENTEFFICIENT MANAGEMENT
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IntroductionIntroduction
According to Robins : organization structure stipulates how
tasks are to be allocated, who report to whom and the
formal coordinating mechanisms and interaction pattern
that will be followed.
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Organization is a mechanism or structure, which helps the activities toOrganization is a mechanism or structure, which helps the activities tobe performed effectively.be performed effectively.
The organization is established for the purpose of achieving theThe organization is established for the purpose of achieving thebusiness objectives.business objectives.
Organization is the detailed arrangement of work and work conditions inOrganization is the detailed arrangement of work and work conditions inorder to perform the assigned activities in an effective manner.order to perform the assigned activities in an effective manner.
The effectiveness and efficiency of organization helps in providing theThe effectiveness and efficiency of organization helps in providing thecontinuity and success to the enterprise.continuity and success to the enterprise.
There are many factors that explain the importance and objectives ofThere are many factors that explain the importance and objectives ofsound organization.sound organization.
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A sound organization helps in the growth and diversification of activities.A sound organization helps in the growth and diversification of activities.
The growth is facilitated by clear division of work, proper delegation ofThe growth is facilitated by clear division of work, proper delegation of
authority etc. In short, it helps in the organizational elaboration. In caseauthority etc. In short, it helps in the organizational elaboration. In case
of reasonable expansion of organization, the functional types getof reasonable expansion of organization, the functional types get
replaced by a more flexible decentralized organization.replaced by a more flexible decentralized organization.
Facilitates Administration :Facilitates Administration :
Facilitates Growth and Diversification :Facilitates Growth and Diversification :
An efficient and sound organization make easy for the management toAn efficient and sound organization make easy for the management to
relate the flow of resource continually to the overall objectives. A soundrelate the flow of resource continually to the overall objectives. A soundorganization helps in providing appropriate platform whereorganization helps in providing appropriate platform where
management can performs the functions of planning, direction,management can performs the functions of planning, direction,
coordination, motivation and controlcoordination, motivation and control
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The optimum use of technical and human resources gets facilitated inThe optimum use of technical and human resources gets facilitated in
sound and efficient organization. The organization can have the facilitiessound and efficient organization. The organization can have the facilitiesof latest technological developments and improvements. It alsoof latest technological developments and improvements. It alsofacilitates optimum use of human resources through specialization. Thefacilitates optimum use of human resources through specialization. Thepeople in the organization get appropriately trained and get promotionpeople in the organization get appropriately trained and get promotionopportunities. A sound organization provides all the desired potentialopportunities. A sound organization provides all the desired potentialand strength to the company to meet the future challengesand strength to the company to meet the future challenges
The specialization in the organization helps individuals in getting wellThe specialization in the organization helps individuals in getting well
defined duties, clear lines of authority and responsibility. It encouragesdefined duties, clear lines of authority and responsibility. It encouragesthe creativity of the people. The sound organizational structure enablesthe creativity of the people. The sound organizational structure enables
mangers to concentrate on important issues where their talent can bemangers to concentrate on important issues where their talent can be
exploited to the maximum.exploited to the maximum.
Permits optimum use of Resources :Permits optimum use of Resources :
Stimulate Creativity :Stimulate Creativity :
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A sound organization helps in adopting efficient methods of selection,A sound organization helps in adopting efficient methods of selection,training, remuneration and promotion for employees. It makes peopletraining, remuneration and promotion for employees. It makes peoplework in a team and not like machines or robots. Organization helps inwork in a team and not like machines or robots. Organization helps inproviding factors like job rotation, job enlargement and enrichment toproviding factors like job rotation, job enlargement and enrichment toits employees. A sound organization provides higher job satisfaction toits employees. A sound organization provides higher job satisfaction toits employees through proper delegation and decentralization,its employees through proper delegation and decentralization,favorable working environment and democratic and participativefavorable working environment and democratic and participative
leadership. It enhances the mode of communication and interactionleadership. It enhances the mode of communication and interactionamong different levels of the management.among different levels of the management.
Encourages Humanistic Approach :Encourages Humanistic Approach :
Location of decision making :Location of decision making :
Sound organization structure determines the location of the center ofSound organization structure determines the location of the center ofdecision making.decision making.
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Sound organization allocates authority and responsibility. It specifiesSound organization allocates authority and responsibility. It specifieswho is to direct whom and who is accountable for what results. thewho is to direct whom and who is accountable for what results. thestructure helps an organization member to know what is his role andstructure helps an organization member to know what is his role andhow does it relate to other roles.how does it relate to other roles.
ClearClear--cut Authority and Relationship :cut Authority and Relationship :
Pattern of communication :Pattern of communication :
Sound organization structure provides the pattern of communicationSound organization structure provides the pattern of communication
and co ordination. By groping activates and people, structure facilitatesand co ordination. By groping activates and people, structure facilitatescommunication between people centered the job activities. People whocommunication between people centered the job activities. People whohave joint problems to solve often share the information.have joint problems to solve often share the information.
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Organization structure creates the proper balance and emphasizes onOrganization structure creates the proper balance and emphasizes oncoordination of group activities. Those more critical aspects for thecoordination of group activities. Those more critical aspects for thesuccess of the organization may be given higher priority in thesuccess of the organization may be given higher priority in theorganization.organization.
Proper Balancing :Proper Balancing :
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TATA COUNSULTANCY LTDTATA COUNSULTANCY LTD
Introduction :Introduction :
In the years 1998In the years 1998--99, TCS had grown into the largest Indian multinational99, TCS had grown into the largest Indian multinational
software company with revenues of over Rs.1600 crores and racingsoftware company with revenues of over Rs.1600 crores and racing
towards achieving its vision of being global top ten.towards achieving its vision of being global top ten.
Tata Consultancy Services is a part of the Tata group ( the largestTata Consultancy Services is a part of the Tata group ( the largest
industrial conglomerate ofIndia). They are spread across 42 countriesindustrial conglomerate ofIndia). They are spread across 42 countries
with more than 130,000 IT consultants.with more than 130,000 IT consultants.
TCS has been listed at NSE & BSE.TCS has been listed at NSE & BSE.
Providing services and counsultation to Banking and financial services ,Providing services and counsultation to Banking and financial services ,
Insurance,Telecom, Media and information services ,Government,Insurance,Telecom, Media and information services ,Government,
Healthcare and life sciences,Energy and utilities Retail and FMCG Travel,Healthcare and life sciences,Energy and utilities Retail and FMCG Travel,
transport and hospitality Manufacturing Hightransport and hospitality Manufacturing High--tech and professionaltech and professional
servicesservices
TCSTCS -- A Sound OrganizationA Sound Organization
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Selectivity in projects :Selectivity in projects :There was a tangible tension at TCS, between generating revenuesThere was a tangible tension at TCS, between generating revenuesand organizing strategically, on basis of technology and businessand organizing strategically, on basis of technology and business
areas, impacting selectivity in projects accepted. Pressures fromareas, impacting selectivity in projects accepted. Pressures fromcustomers on schedules was resulting in faster delivery and hence ,customers on schedules was resulting in faster delivery and hence ,snowballing into further pressure on future schedules.snowballing into further pressure on future schedules.
Focus on specialization :Focus on specialization :There was diffusion of expertise and we wereThere was diffusion of expertise and we were yet to focus onyet to focus on
building strategic expertise in individual centers. Employees werebuilding strategic expertise in individual centers. Employees wererotated across domains and skills in the interest of learn ability asrotated across domains and skills in the interest of learn ability aswell as for meeting requirements. In a sense, there was heightenedwell as for meeting requirements. In a sense, there was heightenedfocus on Voice of the Customer, in comparison to the Voice offocus on Voice of the Customer, in comparison to the Voice ofEmployee.Employee.
Efforts on Experimentation & Innovation :Efforts on Experimentation & Innovation :The management at TCS felt that by and large, employees tended toThe management at TCS felt that by and large, employees tended togo straight by the book. Though techniques were introduced andgo straight by the book. Though techniques were introduced andemployees trained on these techniques to encourage innovation,employees trained on these techniques to encourage innovation,there was a need to scale up on perceived rewards forthere was a need to scale up on perceived rewards forexperimentationexperimentation
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Branding and PRBranding and PR ::
Image building endeavors were not yet an area of focus and, in a subtleImage building endeavors were not yet an area of focus and, in a subtleway, this affected the sense of pride of employees.Among educationalway, this affected the sense of pride of employees.Among educationalinstitutions, this meant greater difficulty in terms of attracting qualityinstitutions, this meant greater difficulty in terms of attracting qualitytalent, which further aggravated stress among the few key performers intalent, which further aggravated stress among the few key performers inthe organization.the organization.
By the year 2002, management felt the conscious need to bring inBy the year 2002, management felt the conscious need to bring inchanges in our approach to the aforementioned areas, in order to alignchanges in our approach to the aforementioned areas, in order to alignmore closely with the customer, business and market requirements at anmore closely with the customer, business and market requirements at an
organizational level.organizational level.
Building Workshops :Building Workshops :
An internal organization workshop was conducted with top managementAn internal organization workshop was conducted with top managementfor scenario building. This program focused at a larger level, on the Thefor scenario building. This program focused at a larger level, on the The
TCS that can be . The idea was to challenge the conventional ways ofTCS that can be . The idea was to challenge the conventional ways ofthinking and to give shape to the key drivers of change through realisticthinking and to give shape to the key drivers of change through realisticlistening and dialoguing. These workshops were followed bylistening and dialoguing. These workshops were followed bydissemination and communication of the scenarios with teams in order todissemination and communication of the scenarios with teams in order todevelop a new language in the organization, consistent with thedevelop a new language in the organization, consistent with theenvisaged future scenario.envisaged future scenario.
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Improvements through Measurements/ Initiatives :Improvements through Measurements/ Initiatives :Excellence at the large relationship (AEP)Excellence at the large relationship (AEP)
The Account excellence program ( AEP ) The AEP was initiated as aThe Account excellence program ( AEP ) The AEP was initiated as achange driver & umbrella for business excellence initiatives in thechange driver & umbrella for business excellence initiatives in therelationship to facilitate creation and balancing of value to allrelationship to facilitate creation and balancing of value to allstakeholdersstakeholders employee, shareholder, customer,supplier and society.employee, shareholder, customer,supplier and society.
AEP helps to improve quality, service, cost and cycle time throughAEP helps to improve quality, service, cost and cycle time throughsetting benchmarks in the following:setting benchmarks in the following:
Meeting all customer requirements Meeting all customer requirements
Minimizing processes variances Minimizing processes variances
Reduction in Cost Of Quality Reduction in Cost Of Quality
Elimination of waste Elimination of waste
Enhanced Customer Support Enhanced Customer Support Efficient Product Service Efficient Product Service
Flexibility to meet Customer demands & Market changes Flexibility to meet Customer demands & Market changes
Rework Reduction Rework Reduction
Continuous Process Improvements Continuous Process Improvements
On On--time delivery of major programstime delivery of major programs
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Rewards and Recognitions :Rewards and Recognitions :
The reward structure at TCS was, at this point in time, primarily focused onThe reward structure at TCS was, at this point in time, primarily focused on
individual performance and we were yet to explore the institutionalization ofindividual performance and we were yet to explore the institutionalization of
team based rewards at the organizational level. Nakshatra is awarded toteam based rewards at the organizational level. Nakshatra is awarded to
encourage star performers for each month within each Business Unit of theencourage star performers for each month within each Business Unit of the
relationshiprelationship
Inter group coInter group co--ordination & knowledge sharing :ordination & knowledge sharing :
Sharing of knowledge was very centreSharing of knowledge was very centre--oriented, and although, informally,oriented, and although, informally,
best practices spread by interaction and word of mouth, we were yet tobest practices spread by interaction and word of mouth, we were yet to
evolve a formal system which would capture these for ease of replicationevolve a formal system which would capture these for ease of replication
across projects.across projects.
Multiple centers and multiple projects within the same centre ended upMultiple centers and multiple projects within the same centre ended up
resolving the same sort of issues, resulting in avoidable reworkresolving the same sort of issues, resulting in avoidable rework..
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Social Awareness :Social Awareness :
Social awareness Programmes likeSocial awareness Programmes like MaitreeMaitree ,, AdvancedAdvanced
Computer Training Centre for visually impaired,Computer Training Centre for visually impaired, RuralRuralDevelopment Initiative (at Panvel),Development Initiative (at Panvel),HIV AIDS awarenessHIV AIDS awareness
program,program, mKrishi is an agro advisory system developed bymKrishi is an agro advisory system developed by
TCSTCS .etc..etc.
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THANK YOUTHANK YOU