Organization Design and Dynamics

(ODD)
11/21/2021 1
 2

Session 1: Nature of
Decisions in
Organization Design
Ankur Jain ankur.jain@iimrohtak.ac.in

11/21/2021
 Who is a
TEACHER?
Sage on the Stage
11/21/2021
Guide on the Side 3
 The teacher of the class is not
the only teacher in the class.

11/21/2021 4
What is an Organization? 
Is this an Organization?
Is this an Organization?
Definition of Organization 

SOCIAL ENTITY GOAL DIRECTED DELIBERATELY LINKED TO

STRUCTURED EXTERNAL
AND ENVIRONMENT 
COORDINATED
 Is School / University an Organization?

Principal

Vice Principal Vice Principal Head

(Science) (Commerce & Arts) Administration

HoD Phy HoD Chem HoD Bio HoD Com HoD Eco HoD Socio

T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12

11/21/2021 O1 O29 O3
India will be under complete lockdown for 21 days: States should rethink the utility of mini-lockdowns,
Narendra Modi assess economic disruption, says PM Modi
(The Economic Times, March 25, 2020) (The Economic Times, Sep 24, 2020)

11/21/2021 10
The Indian Federal Structure

Source: Raut (2011). Structural Problems and Fiscal Management of States in India. Reserve Bank of India
11/21/2021
Occasional Papers 32(1). https://rbidocs.rbi.org.in/rdocs/Content/PDFs/SN_V32070212.pdf 11
 • Formalization – Amount of written documentation

• Specialization – Narrowness of tasks performed

Structural
dimension
s  • Hierarchy of Authority -  Reporting structure, span
of control (no. of people reporting), Scalar Chain
(no. of levels)

• Centralization – Decision making power

Contingency Factors
• Size
• Organizational Technology
• Environment
• Goals and Strategy
• Culture
 Interacting
Structural
Dimensions &
Contingency
Factors
 Strategy

Shared
Structure
Values To be effective, an organization
must have a high degree of fit
or internal alignment i.e. each S
is consistent with and

Style
7-S Systems
reinforces the other S’s.

Strategy: Superior Service to

end customer
Skills Staffing
Style: Top down,
Centralized decision making

Organizational Alignment: The 7-S Model

 HARD
Strategy

Shared
Structure
Values

Style
7-S Systems
Soft S’s are harder to change
directly than Hard S’s and
typically take longer.

Skills Staffing
SOFT

Organizational Alignment: The 7-S Model

 Assessment
• Class Participation – 15%
• Case Presentations / Decision sheets
• Preparation (PPT / Note / Role Play)
• PPT (3 slides) – Problem, Context, Analysis
• Send to CR by 10 pm (previous day)
• End of Session Quizzes – 15%
• Best of 12
• Term Project Presentation & Submission – 10%
• Mid Term Exam – 30%
• End Term Exam – 30%
 Term Project
• Objective: Understand the structure, practices
and processes of a real-life organization in detail
• Data collection: Interviews, discussions with
organizational members, news articles, company
reports
• Submit the softcopy of the presentation prior to
session 18 (night 12 midnight)
• 8 – 10 slides; The presentation will last for 10
mins followed by Q&A of 5 minutes
• 12 groups (5-6 members). Name of the
Organization & Topic to be decided by session 5
and communicated to CR
The Decision Dilemma:
Case for Next Class
• Secure Bank wants to give a contract
for software development to a third
party
• Two organizations – Vega & Zeta,
who were asked to make prototypes
• And Interesting turn of events
happen…
• Final Question - Whom will you give
the final order? And Why?
The Best Gift Is You !
Thank you.
 Session 2: 
Organizational structure
& environment 
Prof Ankur Jain
IIM Rohtak 
 Term Project -
• Objective: Understand the structure, practices
and processes of a real-life organization in
detail
• Data collection: Interviews, discussions with
organizational members, news articles,
company reports
• Submit the softcopy of the presentation prior to
session 18 (12 midnight)
• 8 – 10 slides; The presentation will last for 10
mins followed by Q&A of 5 minutes
• Name of the Organization & Topic to be frozen
before session 5 and communicated to CR
 Assessment
• Class Participation – 15%
• Case Presentations / Decision sheets
• Preparation (PPT / Note / Role Play)
• PPT (3 slides) – Problem, Context, Analysis
• Send to CR by 10 pm (previous day)
• End of Session Quizzes – 15%
• Best of 12
• Term Project Presentation & Submission – 10%
• Mid Term Exam – 30%
• End Term Exam – 30%
 Understand Organic and
Mechanistic designs

Learning
Objective 
Link environment &
organizational design 
Case: The Decision Dilemma 
 Centralized
Structure

Hierarchy of Specialized
Authority Tasks

Vertical
Many rules
communicatio
Formalized
n

Mechanistic Design
 Decentralized
Structure

Collaborative Empowered
Teamwork Roles

Horizontal
Few rules
Communicati
Informal
on

Organic Design
Is Organic Design always better than the Mechanistic Design?
External environment
Dimensions of external environment 
• Simple - Complex 
• heterogeneity; the number of external elements
and their dissimilarity (e.g. University, IT
MNC - more complex)

• Stable - Unstable 
• whether elements in the environment are
dynamic, pace of change (e.g. Fashion
Industry, Oil company - more unstable)
 Environmental Uncertainty
Simple Complex
Stable Stable
Stable
Low Uncertainty Low –Moderate Uncertainty

E.g. Local Kirana store, E.g. Universities, FMCG

Environmental Restaurant Manufacturing
Change
Simple
Complex
Unstable
Unstable
Unstable High – Moderate
High Uncertainty
Uncertainty
E.g. MNCs (IT),
E.g. Fashion Clothing, Online
Telecommunication
Games
Simple Complex
Environmental Complexity
How do organizations adapt to Environmental Uncertainty?
 • Adding Positions and
Departments – an open
system (Marketing, HR,
Legal to deal with
environment)
• Building Relationships –
Buffering, Boundary
Spanning
• Organic Design
• Differentiation of
departments with high
integration
• Scenario and Contingency
Adapting to changing Planning

environment
 Framework for response to Environmental Uncertainty

Low Uncertainty Low –Moderate Uncertainty

• Mechanistic, formal, • Mechanistic, formal,
Stable
centralized centralized
• Few Departments • Many departments, some
• No integrating roles boundary spanning
• Current operations • Few integrating roles
Environmental orientation • Some planning
Change
High – Moderate
High Uncertainty
Uncertainty
• Organic, participative,
• Organic, participative,
Unstable
decentralized
decentralized
• Many departments, much
• Few departments, much
boundary spanning
boundary spanning
• Many integrating roles
• Few integration roles
• Extensive planning
• Planning Orientation
Simple Complex
Environmental Complexity
 Ambidexterity  

Vega and Zeta could be two departments in the same organization !   

Organizational environment is defined as everything that exists outside the
boundary of the organization and has the potential to affect all or part of
the organization.

Organization’s domain is the chosen environmental field of action.

Niche Marketing 
• Commodity vs. Differentiated Service 
• Mass Marketing vs. Targeted (Niche) Marketing

• Advantages 
• Reduced competition
• Focused efforts
• Gaining expertise
• Premium pricing
• Establishing foothold 
 • Mr. Palkan Sharma operates a large diversified firm
Case for Next Class • He witnesses different divisions working is silos
Sharma Industries • He hires a consulting firm which confuses him
further…
The journey of a thousand miles begins with a single step.
Thank you!
 Session 3 : 
Fundamentals of
organization structure
& structural variations 

Prof Ankur Jain

ankur.jain@iimrohtak.ac.in 
 Evaluate varied forms of
organizational structure with respect
to their merits and demerits and how
they fit in with organizational
strategy
Learning
Objective 
Understand global organization
design
Information Sharing Perspective on Structure 

Vertical Linkages
Designed for efficiency
through control  Horizontal Linkages
Designed for
learning/innovation
through coordination and
collaboration 

Often, vertical control happens at the cost of horizontal collaboration.

Functional Structure 
CEO 

Engineering  Marketing  Production 

Weaknesses
Strengths Slow response time
Allows economies of scale  Cause decisions to pile on top
In depth knowledge development Poor horizontal coordination
Accomplish functional goals Less innovation 
Best with one/few products   Restricted view of organizational
goals 
Divisional Structure 
CEO 

Pdt Division Pdt Division 2 Pdt Division 3

1 

Strengths
Suited to fast changes Weaknesses
Higher customer responsiveness Eliminates economies of scale in
High coordination across functions functional departments
Decentralizes decision making Poor coordination across pdt lines
Local adaptation Integration and standardization
Large organizations, multiple pdts  across pdt lines difficult 
Matrix Structure 
CEO 

Marketing Manufacturing Forms:

Pdt Division Balanced Matrix
1  Functional Matrix
Product Matrix
Pdt Division 2

Strengths
Flexible sharing of human resources Weaknesses
Suited to complex decisions and Dual authority – frustrating & confusing
frequent changes  Time consuming, involves frequent
Provides opportunities for functional and meetings and conflict resolution
product skill development Will not work unless workers adopt
Medium size with multiple pdts  collegial rather than vertical relationship 
Geographic Structure 

CEO 

Western
USA Asia/Pacific
Europe 

China 

India 

Japan 
Class Exercise 
Class Exercise
• Kabir, an IIM Rohtak Alumni from PGP01 batch decided to become an automobile
component supplier. He started with a small team. As the startup grew to become 100
people big, it adopted a functional structure with Sales & Marketing, Production and HR
& Admin as key functions.
 CEO 

Sales & Production  HR & Admin 

Marketing 
Class Exercise
• Kabir, an IIM Rohtak Alumni from PGP01 batch decided to become an automobile
component supplier. He started with a small team. As the startup grew to become 100
people big, it adopted a functional structure with Sales & Marketing, Production and HR
& Admin as key functions.
• Sensing the global opportunity, the company started exporting to Dubai, Singapore, Japan
and Brazil. Given the complexities of managing operations for these different countries,
the company decided to change to geographic form.
 CEO 

India Singapore  Japan Brazil

HR 

Prod

Mark 
Class Exercise
• Kabir, an IIM Rohtak Alumni from PGP01 batch decided to become an automobile
component supplier. He started with a small team. As the startup grew to become 100
people big, it adopted a functional structure with Sales & Marketing, Production and HR
& Admin as key functions.
• Sensing the global opportunity, the company started exporting to Dubai, Singapore, Japan
and Brazil. Given the complexities of managing operations for these different countries,
the company decided to change to geographic form.
• In addition to automobile components, the company diversified into automobile lighting
system, power tools and household equipment. The company opened manufacturing
facilities in multiple countries. In order to specialize in product lines, the company
decided to move to a product divisional structure.
 CEO 

Auto Comp. Auto Lights  Power Household

Tools Equipment

India

Singapore

Japan 
Class Exercise
• Kabir, an IIM Rohtak Alumni from PGP01 batch decided to become an automobile
component supplier. He started with a small team. As the startup grew to become 100
people big, it adopted a functional structure with Sales & Marketing, Production and HR
& Admin as key functions.
• Sensing the global opportunity, the company started exporting to Dubai, Singapore, Japan
and Brazil. Given the complexities of managing operations for these different countries,
the company decided to change to geographic form.
• In addition to automobile components, the company diversified into automobile lighting
system, power tools and household equipment. The company opened manufacturing
facilities in multiple countries. In order to specialize in product lines, the company
decided to move to a product divisional structure.
• Given the difference in local preferences in respective countries, it became difficult to
cater to local demands. To simultaneously deal with local adaptation and product
specialization, the company adopted a global matrix structure.
Global Matrix Structure 
CEO 

India  Dubai  Singapore  Japan  Brazil

Automobile
Components 

Automobile
Lighting
System 

Power tools &

Equipment 

Household
appliances 
Conglomerate Structure (1980s)

CEO

S1 S4
S2
S5

S3
Examples of Conglomerates

N Chandrasekaran (Present)
 Local Responsiveness & Global Integration

HIG
H
Forces for Global
Integration

Export Strategy
LOW
International Division

LOW HIG
H
Forces for Local Responsiveness
International Division

CEO 

Engineering  Marketing  Production  International

Division 

Europe 

Mid. East 

SE Asia 
 Local Responsiveness & Global Integration

HIG
H
Forces for Global
Integration

Multidomestic Strategy
Export Strategy
LOW
Global Geographic
International Division
Structure

LOW HIG
H
Forces for Local Responsiveness
Global Geographic Structure

CEO 

International Global
Development  Marketing 

Europe  Mid. East  SE Asia 

HR  HR  HR 

Fin Fin Fin

Mark  Mark  Mark 

 Local Responsiveness & Global Integration

Globalization Strategy
HIG
H Global Product Structure
Forces for Global
Integration

Multidomestic Strategy
Export Strategy
LOW
Global Geographic
International Division
Structure

LOW HIG
H
Forces for Local Responsiveness
Global Product Division Structure

CEO 

Corporate
Finance  
Relations 

Global Global Global

Industrial Consumer Electronics
Products  Products Group 
Group Group 
 Local Responsiveness & Global Integration

Globalization Strategy Both Globalization &

HIG Multidomestic Strategy
H Global Product Structure
Forces for Global Global Matrix Structure
Integration

Multidomestic Strategy
Export Strategy
LOW
Global Geographic
International Division
Structure

LOW HIG
H
Forces for Local Responsiveness
Global Matrix Structure 
CEO 

India  Dubai  Singapore  Europe  Brazil 

Automobile
Components 

Automobile
Accessories 

Power tools &

Equipment 

Household
appliances 
Horizontal Linkage and Coordination
• Information Systems – Company Intranet
• Liaison Role – Person located in one
department having responsibilities to
coordinate with other department
• Task Force – Temporary committee of
representatives from multiple units
• Full time integrators – Create a full-time
position or department
• Teams - Cross Functional, Project, Global
Teams
• Relational Coordination – Not a structure,
Problem solving through relationships of
shared goals and mutual respect
Transnational Organizations
• Interdependence rather than full divisional
independence or total dependence on HQ
• Assets & resources dispersed worldwide
• Linked through interdependent relationships
• Structure are flexible and ever changing
• Subsidiaries initiate strategy and innovation –
bottom up, creative responses to local needs
• Unification & coordination are achieved
through corporate culture, shared vision,
values and management style rather than
through formal structures and systems
Philips
Appex Corporation

Shikhar Ghosh, Boston Consulting Group

For every minute spent in organizing, an hour is earnt.
Benjamin Franklin
 Session 4:
Structural Evolution
Prof Ankur Jain
ankur.jain@iimrohtak.ac.in
Horizontal Structure

E.g. Restaurant – Serving multicourse meal to customers

Chef, Dishwasher, Waiter, Person who answers phone, greets customers and takes reservations
Horizontal Structure
CEO

Process Owner Design Production R&D Customer

New Product Development Process

Process Owner Purchasing Material Customer

Distribution
Flow
Procurement & Logistics Process

Strengths Weaknesses
Flexibility, Rapid response to customer Determining core process is difficult
Employees have broader view of and time consuming
organizational goals Requires significant training
Promotes teamwork and collaboration May limit in-depth skill development
Horizontal Linkage and Coordination
• Information Systems – Company Intranet
• Liaison Role – Person located in one
department having responsibilities to
coordinate with other department
• Task Force – Temporary committee of
representatives from multiple units
• Full time integrators – Create a full-time
position or department
• Teams - Cross Functional, Project, Global
Teams
• Relational Coordination – Not a structure,
Problem solving through relationships of
shared goals and mutual respect
Transnational Organizations
• Interdependence rather than full divisional
independence or total dependence on HQ
• Assets & resources dispersed worldwide
• Linked through interdependent relationships
• Structure are flexible and ever changing
• Subsidiaries initiate strategy and innovation –
bottom up, creative responses to local needs
• Unification & coordination are achieved
through corporate culture, shared vision,
values and management style rather than
through formal structures and systems
Philips
LEARN

Have FUN
 Once upon a
time in
Appex
Corporation

Picture Source: http://onejive.com/story-king-looking-happiness/

 What should be done?
• Integration / Cooperation / Horizontal Communication
• Create multidivisional, multifunctional quality teams
• Create a centralized product development team
• Rotate employees across divisions

As organizations grow, structural differentiation becomes inevitable.

However, structural differentiation alone does not suffice. Integration
becomes equally important for ensuring effectiveness in organizations.
 Moral of the story
The Struggle continues!
People respond quickly to structural changes. If done Structure provides a roadmap
defining positions. Provides
in haste, demerits are the first to get highlighted. Stability and Predictability.
Case for next class
3M India:
In India, for India
Look up Innovative
products from 3M
Future belongs to those
who believe in the
beauty of their dreams.

Thank you!
 Session 5: 
Organization Strategy
and Structure
Ankur Jain
ankur.jain@iimrohtak.ac.in
 Term Project
• Objective: Understand the structure, practices
and processes of a real-life organization in detail
• Data collection: Interviews, discussions with
organizational members, news articles, company
reports
• Submit the softcopy of the presentation prior to
session 18 (night 12 midnight)
• 8 – 10 slides; The presentation will last for 10
mins followed by Q&A of 5 minutes
• 12 groups (5-6 members). Name of the
Organization & Topic to be decided by session 5
and communicated to CR
Learning objective

• Link organizational strategy

and structure
• Understand structure for
innovation
Innovation Culture at 3M

https://www.youtube.com/watch?v=CLlX9yJZosk (3mins)
The story of the Post-It Notes

In 1968, 3M’s Spencer Silver was working

on developing an ultra-strong adhesive for
use in aircraft construction.

Art Fry sang in a church choir and had a

regular problem of losing his hymn notes

In 1977 that the product was finally tested

for real-world sales but failed

In 1978, 3M tried one more time by

sending out large numbers of free samples
to companies. Almost 90% reordered.
Post-It Notes

From a glue that would not stick to a brilliant innovation!

 What is
Innovation?
 Innovation is not an accident. It is a
product of complex set of principles and
practices which support and encourage the
coupling of technology and creativity for
satisfying customer needs.

Innovation is accomplished by people:

leaders who give permission and
encouragement, staff who work with
determination, and imagination and
customers who provide inputs and
feedback to the process.
What is the starting point of organizational design?
https://www.coca-colacompany.com/company/purpose-and-vision (2mins)
 Organizational
Purpose
• Strategic Intent: Focused, unifying,
compelling overall goal
• Coca Cola – To put a Coke within arm’s
reach of every consumer in the world
• To refresh the world. Make a difference.
(To become a total beverages company)
• Operating Goals: Specific measurable
outcomes in the short run
• Double the size of business in 5 years
• Invest in the entire fruit supply of India
(committed to investing Rs 11000 crores by
2023)
 Organizational
Purpose: 3M
Who we are.
• 3M employees are empowered and encouraged
to pursue purpose-driven innovation.

3M continues to be inspired and motivated by our

corporate vision:
• 3M Technology Advancing Every Company
• 3M Products Enhancing Every Home
• 3M Innovation Improving Every Life

Operating Goal
• 30% of the revenue for each division to come from products
introduced in last 4 year
 Porter’s competitive strategies

Low-cost Leadership Differentiation

(e.g. Big Bazar, Walmart) (e.g. Apple, Disney)
Miles and Snow Strategy Typology
• Prospector e.g. Apple
• Learning orientation; flexible, fluid, decentralized structure
• Values creativity, risk-taking, and innovation, Strong research capability
• Defender e.g. Big Bazar
• Efficiency orientation; centralized authority and tight cost control
• Emphasis on production efficiency, low overhead, Close employee supervision
• Analyzer e.g. Hero Motocorp (to focus on Hero Electric)
• Balances efficiency and learning; tight cost control with flexibility and adaptability
• Efficient production for stable pdts, Creativity, research, risk-taking for innovation
• Reactor e.g. Nokia
• No clear organizational approach; design characteristics may shift abruptly depending on
current needs
Exploration

Exploitation

How to support both exploitation

and exploration?
How is it done at 3M?
Support for Innovation at 3M
• Structure
• Small size of each business unit
• R&D laboratories with each division
• Organizational roles – Idea generator & Executive champion
• Process
• 15% rule
• Short & simple proposal
• Grants from one’s own / other divisions; New Business Ventures division
• Organic nature of team formation
• Legendary stories
• 25% of revenues from new products (5yrs) – then raised the bar (30%, 4yrs)
• Patented new technologies
• Knowledge sharing across divisions and customers
Support for Innovation at 3M (contd.)
• Rewards
• Great innovators inducted into Carlton society
• https://www.3m.com/3M/en_US/company-us/about-3m/research-development/car
lton-society/
• Golden step award
• Salaries and promotions – related to inception & commercialization
• Failures as learning experiences
• People could come back to their old jobs if products failed
• People
• Hire and retain people who think differently
• Loyalty
• Dual ladder career – engineering and management
Contextual Ambidexterity
Contextual ambidexterity is the behavioral capacity to simultaneously demonstrate
alignment and adaptability across an entire business unit

DISCIPLIN STRETCH SUPPORT TRUST

E
15% Rule
https://www.youtube.com/watch?v=1D3DqIMLntM
Structural Ambidexterity

Source: The Ambidextrous Organization (HBR Article)

 Structural Ambidexterity  

Vega and Zeta could be two departments in the same organization !   

 Structure Strategy

Does structure always follow strategy?

 Structure Strategy

Strategy and Structure mutually reinforce each other.

In fact structure may constrain the strategic choices of a firm.
 As our business grows, it becomes increasingly necessary to delegate
responsibility and to encourage men and women to exercise their
initiative. This requires considerable tolerance. Those men and women,
to whom we delegate authority and responsibility, if they are good
people, are going to want to do their jobs in their own way.

Is it true for you?

Whatever we plant in our subconscious mind and nourish with repetition and emotion will one day become reality.
Earl Nightingale
Next Class: Zappos.com 2009 (Multimedia Case)
Would you like to join Zappos? Why? (100 words)
No ppt. Individual submissions. Google link. (10pm – 21st Oct)
It does not matter how slowly you
Thank you!
go, as long as you do not stop.
Session 6:
Organizational
Culture: Concept
& components
Organizational Culture and National Culture
• Beware of Stereotyping
• Is it to do with my values or is it just a stereotype? E.g. “I” fear Failures. Is it really true for everybody
in the country?
• National Cultures are Important
• National cultures are deeper values. May not be changed easily. International managers should see
them as the material they have to work with. Every national culture has its strengths and its
weaknesses, which need to be taken into account when management sets international strategies.
• Implications for Hiring
• National culture dimensions look at the national mean score but the same question may not correlate
across individuals, they may even show a reverse relationship, as individuals in a society often
supplement each other
• Balance between National, Organizational and Individual
• Societies are the gardens of the social world, organizations the bouquets, and individuals the flowers;
a complete social gardener should be able to deal with all three.
Source: https://www.bbvaopenmind.com/en/articles/national-cultures-organizational-cultures-and-the-role-of-management/
Three Eras of Multinational
Expansionis
Paternalism m Liberalism
R&D done in R&D expanded Democratizatio
home country to subsidiaries n of R&D,
and handed to tap market followed by
over to ideas and talent; Integration
subsidiaries for core still (inflow of
implementation happens in knowledge to
home country home country)

Source: Birkinshaw and Hood (2001). HBR. Unleash innovations in foreign subsidiaries
Holacracy

https://www.youtube.com/watch?v=MUHfVoQUj54
 What is Holacracy?

Let us implement Holacracy in today’s class!

What does this class
mean to you?

Purpose
• Learning

Philosophy
• Sage on the Stage to
Guide on the side
What are the merits and demerits of Holacracy?
Holacracy

Merits Demerits
• Cohesion • Creates confusion
• Motivation • Lack of direction
• Sense of ownership • May lead of less accountability
• Decrease in office politics • Not everybody can fit
• Self management • Rules for interpersonal
interactions
 What is Structure for?
Control, efficiency, clarity, accountability, incentives, cohesion
What is culture for?
Culture is the set of values, norms, guiding beliefs, and understandings
that is shared by members of an organization and taught to new
members as the correct way to think, feel and behave.
 Observable symbols, ceremonies, stories,
slogans, behaviors, dress, physical settings

Underlying values, assumptions, beliefs,

attitudes, feelings

Levels of Corporate Culture

So what is relationship between Structure and Culture?
How would you describe
Zappo’s Culture?
Which is the best culture?
 Types of Organizational Culture

External
Adaptability
Mission Culture
Culture
Clear vision of
Innovation, Risk
profitability,
taking, Entrepreneurial
measurable goals
Strategic values
Focus Flexibility Stability
Bureaucratic
Clan Culture
Culture
Involvement,
Consistency,
Participation, Sense of
conformity &
ownership
collaboration

Internal

Needs of the Environment

Culture Strength and Organizational Subcultures

Culture Strength: Degree of agreement among

members about the importance of specific
values!

Several set of subcultures may develop in

organizations. In the absence of a strong
corporate culture, conflicts may develop.
Institutionalization of Organizational Culture
Level III
Consolidation of cultural values through
repeated actions

Level II
Validation and internationalization of
cultural values

Level I
Physical objects, Technology, Orientation
& Direction, Visible behavior patterns
Typology of
Organization Culture
• Power Culture: High regard for formal
position, authority, and power relationships
• Role Culture: High level of job
specialization
• Task Culture: High performance, target and
achievement orientation
• Person Culture: Attributed to one man show
(CEO or CMD)
Do you think Holacracy worked at Zappos?
 Present status of Holacracy at Zappos

https://www.youtube.com/watch?v=8hejcdYFJ1k

It is alignment around a shared culture, not the content of specific values that is powerful !
Do you think it can work in India?

https://www.youtube.com/watch?v=2NG0yWBXeos
Case for next class: Terror at Taj Bombay

NO PPT SKIT
• What does it take to build a GREAT PLACE TO WORK
• 5 groups – 5 minutes each
• Groups 1+2, 3+4, 6+7, 8+9, 5+10+11 (Section C)
Be your own Inspiration !

Thank you!
 Session 7:
Institutionalizing
Organizational
Culture 
Ankur Jain
ankur.jain@iimrohtak.ac.in 
 Types of Organizational Culture

External
Mission
Adaptability
(Market) Culture
(Adhocracy) Culture Clear vision of
Innovation, Risk taking, profitability,
Entrepreneurial values measurable goals
Strategic
Focus Flexibility Stability
Clan Culture Bureaucratic
Involvement, (Hierarchy) Culture
Participation, Sense of Consistency, conformity
ownership & collaboration

Internal

Needs of the Environment

What does it take to create a Great Place to Work 
Source: https://www.greatplacetowork.in/great/100-best-companies.php
The Great Place to Work Model 

Experience
Trust the people Have Pride in
Camaraderie with
they work for   what they do  their colleagues
Dimensions of culture

Sociability Solidarity
Sincere friendliness among Community ability to pursue shared
members of a community objectives quickly and effectively,
regardless of personal ties
 Two Dimensions, Four Cultures

NETWORKED COMMUNAL
HIGH (long time frame, (synergy, long term,
aggregation of local) difficult to achieve)
Sociability

FRAGMENTED MERCENARY
LOW (where there is little (economies of scale,
interdependence) clear goals)

LOW HIGH

Solidarity
Source: Goffee & Jones (1996). What holds the modern company together. Harvard Business Review
The Taj Attack [3:11 to 6:30], [9:30 to End]   

https://www.youtube.com/watch?v=vQGz1YRqBPw
IHCL - Mission
To improve the quality of life of the communities it serves globally. Through long-term stakeholder
value creation based on ‘Leadership with Trust', the Tata brand stands as a lasting promise behind its
businesses, many of which are industry leaders. IHCL is honoured to be one of the first of those
timeless and tireless initiatives.
“Business, as I have seen
it, places one great
demand on you: it needs
you to self-impose a
framework of ethics,
values, fairness and
objectivity on yourself at
all times.”

 Ratan N Tata, 2006

We can be hurt, but not knocked out – Ratan Tata
 Case for next class
DRW Technologies

2 Slides
Q1. Did Edward Claiborne do the right thing? Why?
Q2. If you were Edward Claiborne, what would you do
differently?
Thank you!
Managing Change in Organizations
Ankur Jain
ankure.jain@iimrohtak.ac.in
 Project work:
• Name of the Organization
• Objectives and Methodology for the
Study (100 words)
• Submit by Session 9
Mid term Exam:
• Application based - Case / Caselets
• Closed Book
• What is your plan, how to study?
No Plagiarism / Cheating
What has been your experience with Change?
Why is Change so difficult?
 Resistance to
change
• Inertia, habits
• Preference for status quo
• Cognitive rigidity
• Worry that events may get out of
control
• Short term results get jeopardized

• People become defensive

• Morale drops
What makes people change/adopt new behavior?
Theory of Planned Behavior
(Favorable Inclination)

(Approval by others)

(Ease of performance)

https://en.wikipedia.org/wiki/Theory_of_planned_behavior
https://sphweb.bumc.bu.edu/otlt/mph-modules/sb/behavioralchangetheories/BehavioralChangeTheories3.html
What is the going on at DRW Technologies?

Why no contracts have been submitted to Claiborne?

Culture eats strategy for
breakfast!
Kurt Lewin’s Model of Change

https://www.youtube.com/watch?v=kerDFvln7hU
Also refer: https://www.mindtools.com/pages/article/newPPM_94.htm
Destruction Creation Nurturing
Approaches to Change

Instructed / Directive Participative Change

(Top Down) (Bottom Up)
 Companies such as Google, Whirlpool,
and Facebook hold internal hackathons
to encourage new product innovation
by their employees. For example, the
Like button, chat button, and timeline
of Facebook were created during its
company-internal hackathons.

https://www.hackerearth.com/community-hackathons/resources/e-books/guide-to-organize-hackathon/
 Kotter’s model of Change
Source: Leading change, HBR Article

To put a Coke within arm’s reach of To refresh the world. Make a difference!
every consumer in the world! (To become a total beverages company)
https://www.coca-colacompany.com/company/purpose-and-vision
Establish a sense of urgency
• Examine market and competitive realities
• Identifying crises and opportunities
• “WHY the need” / “WHY now”
Form a powerful guiding coalition
• Assembling a group to lead change efforts
• Encourage the group to work together as a team
• “Include others who can influence”
Create a vision
• Give direction to the change effort
• Develop strategies to achieve that vision
• “Increase profitability to survive. Bring the cost down by 50%”
Communicating the vision
• Using multiple vehicles to communicate the vision
• Teaching new behavior by example of guiding coalition
• “Board meeting, Appraisal meetings, Town halls – Be obsessed”
• “Exemplify Behavior – ACT on the vision”
Empowering others to act on the Vision
• Getting rid of obstacles to change
• Changing systems and structures that hinder change
• Encourage risk taking and non-traditional ideas
• “Give power to your people – let them own the change”
Planning for and creating short-term wins
• Planning for visible performance improvement
• Recognizing and rewarding employees
• “Show mid term results”
Consolidating improvements, Producing
more change
• Using increased credibility to change systems
• Hiring, promoting, developing employees who implement vision
• Reinvigorating the process with new projects
• “Do not declare victory too soon”
Institutionalizing new approaches
• Articulating the connection between new behavior and success
• Developing means to ensure leadership development and succession
• “Make it a part of your culture”
• “Change has to stick in the ways we do things here”
 Strategies to deal with resistance with change
Approach Commonly used in Advantages Drawbacks
situations
Education + Lack of information or Once persuaded, people will help Can be time consuming if lot of
Communication analysis with implementation of change people are involved
Participation + Initiators do not have all the People will be committed and ready Time consuming, Participants may
Involvement information to design the to share information design inappropriate change
change
Facilitation + People resisting because of Provides real-time support to adjust Can be expensive, time
Support adjustment problem consuming, still fail
Negotiation + When group(s) have sufficient Relatively easy to avoid major Can be too expensive, if it alerts
Agreement power to resist resistance others to negotiate
Manipulation + Where other tactics will not Relatively quick and inexpensive Lead to future problems if people
Cooptation work, power to control feel manipulated
Information and events
Explicit + Implicit When speed is essential, Speedy, overcome resistance Can be risky, people may quit
Coercion initiators have lot of power

Is Politics Good or Bad?

Case: Merger • Role Play – Maitra, Dinshaw and Rohit Wadhwa
Management • We will hear people who do not get to participate so much
The only constant is Change!

Thank you
 Session 9: Managing
Conflict, and Control in
Mergers and Acquisitions
 Project work: Mid term Exam:
• Name of the Organization • Revision – Next class
• Objectives and Methodology for the
Study (100 words)
• Submit by tonight
Merger Management Case. What is going on?
Why do conflicts arise in organizations?
Sources of conflict

Goal Incompatibility
Differentiation
Task Interdependence
Limited Resources
 What is Power?

Who has power – Dinshaw or Maitra?

 Power is defined as the extent to which the agent can get the target to do
something which the target would not otherwise do.

Positional Power Sources Personal Power Sources

• Legitimate Power • Expert Power
• Reward Power • Knowledge & skills
• Coercive Power • Referent Power
• Informational Power • Respect & admiration
 Is Organizational Politics Good to Bad?

Do you want to indulge in Politics? Why or Why not?

What is Organizational Politics?

 Natural Organizational Process-
Resolution of differences among
interest groups, resolutions of
Self Serving Behavior - conflicts and uncertainty,
Use of power to achieve Bargaining and Negotiation
desired personal
outcomes.
If you were Maitra, how could you have handled the process better?
Do you agree?

“May be I should have attempted to conform to the B&S style of

functioning to gain acceptance and recognition. May be I should have
created informal networks so that my worth, potential and contributions
were known to people in the new firm.”
Response to mergers
• Mergers are personally disruptive

• Three Responses
a. Focus on the tasks at hand and hope things turn out OK
b. Polish your resume and look outside
c. Embrace the dynamic and intense integration process
and use it as an opportunity for introspection and growth
 Guide for Mergers –
Personal Sphere
• Identify your SWOT and act accordingly
• Control your own attitude so you can be a
positive model for others in the merger
• Expect changes and be an agent of change
• Don’t blame the acquisition for everything,
Prepare yourself for disruption
• Use the acquisition as an opportunity to grow
• Focus on networking and building relationships
• Be understanding of mistakes done by the
management
If you were Dinshaw, how could you have handled the process better?
The aim is to generate enough
synergies to present the market
with a clear concise argument as to
why the merged entity will be
more productive and deliver better
results in less time
Over 60% of mergers end up failing !

Why mergers fail?

• The human factor is overlooked

• Anxiety, frustration, disappointment and uncertainty
• Poor implementation of merger plan
• Resistance to change
• Poor communication
 Guide for Mergers – Professional Sphere
• Human due diligence
• Don’t take anything for granted or create false expectations
• Find out about the culture of other company
• Anticipate the problems of other company and build a
climate of trust
• Set clear short-term objectives for acquired company
employees
• Reassure people & help them understand the new context
• Communicate specific messages, clearly, repeat them, don’t
feed rumors
 Comprehensive Plan before the merger

• Put the mission and values into writing and see how they
differ
• Plan short-term and long-term actions that will facilitate
the transition of one culture to the other
• Specify new structure and organizational chart
• Have a Plan B for each position and contemplate
dignified exit
• Full time Interdisciplinary Merger/Integration Committee
• Monitor results in first 100 days and act accordingly
Bank Mergers, 2019

Creating globally stronger banks, doing away with needless overlaps in

operations and infrastructure, and ushering in economies of scale to bring
down costs. But will the move create the synergy required?
 Mindtree – Hostile takeover by L&T

• Mindtree has an informal

work culture: many of its
employees call members of
the founding team by their
first names
• In contrast, Larsen and
Toubro's (L&T) work culture
is based on command-and-
control and top-down
management

https://www.mindtree.com/about/lt-and-mindtree-the-way-forward
https://mnacritique.mergersindia.com/l-and-t-hostile-takeover-mindtree/
 Case for Next Class

Cunningham Motors:
The Virtual Automobile Company

Role Plays – Groups

• Entrepreneur (1,2,3,4,5)
• Investors (6,7)
• Partners (8,9)
• Customers (10,11,12)
Change is inevitable but
personal growth is a choice.
Thank you!
 Session 10:
Learning, Knowledge
Ankur Jain
ankur.jain@iimrohtak.ac.in
Management and Networks
 Cunningham Motors:
The Virtual Automobile Company

Role Plays – Groups

• Entrepreneur (1,2,3,4,5)
• Investors (6,7)
• Partners/Suppliers/Vendors (8,9)
• Customers (10,11,12)
As a company, should you own assets? Why or Why not?
 Resource dependence theory argues that firms try to minimize their
dependence on other organizations for the supply of important resources.
 Collaborative Networks: Companies join together to share scarce
resources and become more competitive. Allows for risk sharing,
safety net, enhancing organizational profile, information sharing.
Market based organizing –
Interorganizational Relationships
• Central hub responsible for
coordination
• Flexibility and rapid
response
• Lack of control
• Equity and fair dealing
• Long-term contracts & Trust
• Loose performance measures
• Information sharing
• Shared resources
Virtual Networks
Challenges of network/platform business models

• Local clustering
• Have global clustering
• Disintermediation
• Provide complementary services
(transaction fees is short term)
• E.g. Alibaba – Allowed haggling on
Taobao
• Multi-Homing
• What extra value do you add?
• E.g. Amazon prime, Uber - Reduce
driver wait time

Source: Zhu & Lansiti (2019). HBR. Why some platforms thrive
 Let us now shift our focus to large organizations!

What hinders their adaptability and how can they continue to be

continue to be innovative?

Can they form networks? How?

What hinders adaptability?
• Structural Inertia
• Investment in plants, equipment and specialized personnel
• Limited information
• Established viewpoints of decision makers
• Organization’s own successful history that justifies current procedures
• Difficulty of changing corporate culture
 An
Organizational
Ecosystem
Developing & Administering Covid-19
Vaccine

Researchers, doctors,
scientists, approval
boards, regulatory
groups, governments,
manufacturers
mobilized quickly!

Source: https://www.astrazeneca.com/what-science-can-do/topics/covid-19/developing-vaccines-at-speed.html.
 Network
Structure
• Higher levels of innovation
as organizations learn to
shift from adversarial to
partnership mindset
• Role of manager?
• Corporate alliances require
managers to be good at
building personal networks
across boundaries
 Operational role: Collaborative role:
Vertical authority, accountable for Flexible & adaptive, achieve results through
business results primarily through direct communication, assertively seeking
control over people and resources information & resources, strengthen the
larger ecosystem
Thank
you