Organization Structure Mechanistic Well defined Teams Department wise Goals setting Instruction manuals – Documentation Focus on Efficiency Hierarchical System Organization wide Benchmarking Demarcated roles for teams Overlapping responsibilities for some employees
March 11, 2010 MDI Gurgaon 2
Organizational Structure Contd.. Target setting Cooperation between departments Sense of ownership to all levels by Autonomy Open culture – little use of memos Information sharing between dept Informal team outings to improve work life balance
March 11, 2010 MDI Gurgaon 3
Problems at St. Laurent Lack of efficiency – missed deliveries Decline in Sales Budget Driven Approach Poor Quality Standards Over Optimistic Estimates led to manufacturing inefficiency – defected items shipped
March 11, 2010 MDI Gurgaon 4
Problems at St. Laurent Contd..
No incentive to exceed individual performance
expectation The goal is achievement of budget target – no incentive for quality or customer satisfaction Highly target oriented – lack of customer insight High work pressure Workers willing to trade benefits in favor of a more relaxed environment All decisions Driven by Budget March 11, 2010 MDI Gurgaon 5 Recommendations – CCC