Understanding

Organizations
(Business & Development; Rural-Urban Set up )
Instructor- H K Misra and Kushal Anjaria
Development Organizations

Session-2, chapter-2-MIS, PRM-43

Development Measures through Growth
 Development and growth are similar in that
both refer to a process of positive change or
progress.
 Growth is a narrower concept that focuses
on economic expansion
 Development is a broader concept that
encompasses a wider range of social,
cultural, and policy improvements.

Session-2, chapter-2-MIS, PRM-43

Development Measures through Growth

 Development:
 Development refers to a comprehensive process
that involves not only economic growth but also
improvements in social, cultural, and policy spheres.
 It is a multidimensional process that aims to improve
the overall well-being of a society.
 Development can involve improvements in areas
such as education, healthcare, infrastructure, and
governance.

Session-2, chapter-2-MIS, PRM-43

Development Measures through Growth

 Growth:
 Growth refers specifically to an increase in
economic output, such as gross domestic product
(GDP) or per capita income.
 It is often measured as a percentage increase over
a certain period of time.
 Economic growth is an important aspect of
development, but it is only one component of a
broader process of societal progress.

Session-2, chapter-2-MIS, PRM-43

Development Measures through Growth
 Development brings in change:
 qualitative, innovative,
 multi-dimensional, discontinuous,
 irreversible, non-elastic
 Development is non-linear
 Growth is
 linear, continuous, reversible
 Growth is part of development process

Session-2, chapter-2-MIS, PRM-43

Development and demand

 Development organizations satisfy three

types of demands
 Economic demand
 Social demand
 Ecological demand

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Economic demand in development

 Economic demand refers to the desire and

willingness of consumers to purchase a
certain good or service at a certain price.
 It is determined by various factors such as
consumer income, preferences, and the
availability of substitutes.
 The general management theory states that
economic demand will decrease as price
increases.

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Social demand in development

 Social demand refers to the need or desire

for a certain good or service within a society.
 It is driven by social factors such as cultural
beliefs, norms, and values.
 For example, the demand for organic food
may be driven by a societal desire for
healthier and more sustainable food options.

Session-2, chapter-2-MIS, PRM-43

Ecological demand in development
 Ecological demand, also known as environmental
demand, refers to the demand for products and services
that are environmentally sustainable and have minimal
negative impact on the environment.
 This demand is driven by concerns about the depletion of
natural resources and the effects of climate change.
 Examples of products with ecological demand include
energy-efficient appliances, hybrid or electric cars, and
sustainably produced food and clothing.

Session-2, chapter-2-MIS, PRM-43

 Understanding Development

Total Demand = ∑ ∑deconomic + ∑ dsocial + ∑decological

Session-2, chapter-2-MIS, PRM-43
 Understanding Development Organizations

 Development Organizations
 relate to Society in terms of
 poverty,
 environmental sustainability ,

 bringing synergies among different

agencies.
 More concerned with
 Quantity and quality in development
(What about Business Organizations?)

Session-2, chapter-2-MIS, PRM-43

 Understanding Development
Organizations
 Technology can change the type of
organization
 Example
 free-to-air channel to a paid channel for TV broadcasting
(Changes from public good to club good)
 paid toll-booths in highways/expressways

(Changes from public good to club good)

 Today we have the possibilities of “Hybrid”
organizations

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 Understanding Development Organizations
 Development Organizations need to ensure
development of
 Individuals
 Communities
 Environment
 Development needs to be sustainable in
terms of
 Economic
 Social
 Environmental

Session-2, chapter-2-MIS, PRM-43

 Development Triggers - Growth
 Business recognizes growth as an indicator
 Growth is measured by
 labour force, capital, volume of trade and consumption
 Development is measured by factors of
growth:
Development:
 production techniques, Identify the “latent” and make it active
 administrative systems,
 economic policy,
 social values
 Empowerment

Session-2, chapter-2-MIS, PRM-43

Understanding Development Organizations
 Life Cycles of Development Organizations
are influenced by life cycles of
 Individuals
 Communities

 Society

(What about Business Organizations?)

Session-2, chapter-2-MIS, PRM-43

Single System of Interface
 The Single System of Interface is an approach in which
the international development community and the
national government work together in a unified system.
 In this approach, the national government takes the lead
in setting development priorities and designing
programs, while the international development
community provides support, technical assistance, and
funding as needed.
 The goal of this approach is to ensure that development
efforts are aligned with national priorities and are
sustainable in the long run.

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Dual System of Interface
 The Dual System of Interface is an approach in which the
international development community and the national government
work separately but in parallel.
 In this approach, the international development community designs
and implements its own development programs independently of the
national government, with the goal of achieving specific
development outcomes.
 This approach may be used in situations where the national
government is perceived to be inefficient or corrupt, or where there
are significant political or economic constraints to working together
in a unified system.

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 What if government is not involved at all in
the project?

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Single System of Interface for
Development

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Dual System of Interface for Development

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Life Cycle of Development Organizations

1. People come together

with a common motive
2. Growth, but lack of trust
3. Growth with trust
4. Maturity with trust
5. Complacency affecting trust
6. Decline
7. Dead

Session-2, chapter-2-MIS, PRM-43

 Understanding Urban Set up-
Organizational Views
 Does Urban ecosystem have organizational
Setting?
 Are they different from Business /
Development Setting?
• Municipalities
 Is Governance Different? • Government Bodies
• NGOs
 Is the Geography an issue? • SPVs
• Business Entities
 Local/ Regional • PSUs
 National
 Global

Session-2, chapter-2-MIS, PRM-43