Reforming the Public Sector

(MGMT 244) – Fall, Autumn 2022

Session 2: Framework for Dynamic Governance
(Additional Slides

Tariq Mahmud
Organizational Capabilities

• It refers to deliberate use of its knowledge and resources for specific results

• These are understood in terms of organizational structures and managerial processes to

achieve productive activity.

• Capabilities are developed and deployed through conscious and deliberate decisions,

choices, planning, organized activity and deployment of expertise

• These are incremental learnings through step-function learning. Feedback interpretation

influences decision making

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Routines: Standard Processes for Operational Activities
• Routines are regular ways of doing the repetitive tasks of voluminous daily business
activities which are often executed semi-automatically in response to internal or external
input flows
• These are standard operating procedures bringing stability and predictability to
organizational activity. Routine includes procedures for producing things, processes for
hiring people ore ordering goods, policies for advertising, capital investments and R&D
• Routines are like genes, encoding the essential coordinating information for efficient
functioning of the organization and they are remembered through repetition
• Actual performance of the routines by specific people at specific times in specific places
may vary from the prescribed structure as they respond to prevailing circumstances and to
their own perceptions and reflections

3
Resources: Tangible and Intangible Assets for Executing Strategies
• Resources are tangible assets such as specialized equipment, and intangible assets such as
knowledge, skills and expertise that enable an organization to conceive of and execute
unique strategies to achieve its purposes and desired outcomes
• Value-creating organizational resources that are not easily replicated have four main
attributes
– Valuable

– Rare

– Inimitable

– Non-substitutable

• While routines are previously learned patterns of action, resources that have potential for
strategic options require deliberate direction, definition, and decision

4
Dynamic capabilities: Capacity to Change Routines and Resources
• Capabilities may also be reconfigured through the acquisition, recombination, integration
and shedding of resources. The mechanisms for reconfiguring capabilities include
substitution in the overall capability portfolio, capability transformation through purposeful
managerial action and organizational investments
• It is acquits for resilience which implies anticipation and adjustments to deep secular trends.
It is a capacity to change before the case for becomes desperate

5
Integrated Framework of Organizational Capabilities
• Routines are operational capabilities repetitive dealing with high volume transactions while
resources are core capabilities enabling to formulate and execute value creating strategies,
develop strategic resilience
• Operational routines can be evolved into core capabilities through organizational learning
and experimentation

Example
• The core capabilities of the particular university relates what it can to do differently in pursuit of its
strategy. A university may seek to excel in research and development, to select and attract qualified
faculty, to support and resource their research needs and performance

• All universities has routines for recruiting and selecting students and yet build it into a brand

• So is the case in the banking and manufacturing sector