Section-A
Question1)i) Explain process consultation. Discuss when it must be used and how it applies to organization development.
ii) What are the key components of group level diagnosis? Discuss how absence of any one of these components can impact outputs.
Question2)i) Explain either a functional, self-contained, or matrix structure and discuss its advantages and disadvantages.
ii) Under what conditions are customer-centric structures suitable? What challenges does this type of organization structure face and why?
Section – B Case Study
Digital Electronics (Digital) was established twenty years ago by Ramprasad Goud, The mission of this manufacturer of consumer electronic goods was to produce high quality, innovative products at the lowest possible costs, that catered to the ever changing requirements of its customers. The organizational structure at Digital was characterized by the tall hierarchy with the number of managerial levels between shop floor executives and the CEO. Leadership style which prevailed in a company was the autocratic form, in which employees were seldom involved in the organization’s decision-making process. All crucial decisions were made by top management and merely conveyed to employees at the lower rung of the organizational structure.
Though Digital had been performing well in the industry, its profitability levels and market share were gradually dwindling. This was a serious cause of concern to the CEO, Goud, who invited top level managers to give their suggestions, to tackle this problem. A discussion which followed during meeting identified deteriorating quality of their products coupled with lack of innovation (especially during the recent past) as the major reason for the low demand for their products in the market.
Mohan Das, the Director-HR, blamed organizational structure for the depressing innovative spirit among employees, which in turn, hit the sales. He suggested that Digital introduce the concept of self-managed teams (SMTs) to overcome this crisis. By providing enhanced responsibility and authority to a group of individuals through SMTs, Digital might enhance employee commitment which would result in improved quality of goods, and in the productivity and efficiency of the workers.
The whole team was taken aback for the moment, when they heard the proposal of Das. Goud himself felt that bureaucratic culture at Digital might not encourage the implementation of SMTs. “Besides, there are other issues that have to be dealt with, to make sure success of SMTs,” said Goud. Das then pointed out recent organizational examples that had benefited by implementing concept of SMTs. One of the examples was that of the reputed telecom company that had witnessed a 26% increase in its sales after the introduction of SMTs in its sales force.
Though the management was not much convinced about proposal, it decided to introduce SMTs in its production and R&D departments. After careful analysis of the organizational culture and the benefits likely to be accrued to organization through its new initiative, Das implemented the concept of SMTs in both the departments. Though Digital faced a few problems during initial stages, it began reaping benefits of improved productivity and greater innovation among its employees. Soon, sales figures picked up and the company recorded huge profits and increased market share, but also reaped the benefits of a motivated and a committed workforce.
Case Questions:
Question1) Mohan Das carefully analyzed organizational culture at Digital before deciding to implement the concept of SMTs. Discuss the different cultural issues that may have cropped up during implementation of SMTs at Digital Electronics.
Question2) Briefly explain characteristics of self-managed teams and the benefits that are likely to accrue to the organizations which implement them.
Question3) How do you think the concept of SMTs and good organizational culture relate to the concept of organizational development?