Facilitator and Course Coordinator:
Vinayshil Gautam PhD, FRAS(London)
(Founder Director IIM K; Leader Consulting Team IIM S)
A Al_Sager Chair Professor and First Head,
Management Department, IIT D
Chairman, DKIF
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Organizations are all pervasive
 Family-First Organization
 Place of work –Another Organization
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Organizations are required as needs
cannot be satisfied by individuals
 Need for goods & services
 Sociological needs
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Means to wrest power and exert influence
on others
Requires designing organization structure
in such a manner that:
 Objectives are achieved
 Jobs are well defined
 Information flow is smooth
 Coordination and control can be performed
Eg :- Employee organizations
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Specific purpose-documented or verbal
Organizational members
Hierarchies of Authority and Accountability
Operate at some ‘state’ at all times
 Strategies required if moving from chaotic
conditions to healthy conditions
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Part of macro environment consisting of society,
competitors, vendors, financial institutions
Have a Value system
Structure
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Structural
organization
Processes
Behavioral
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Structure
Anatomy
Processes
Physiology
Behavioral
Psychology
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Top
Level
Middle
Level
Lower
level
Lower
level
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Middle
Level
Lower
level
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Right Hierarchy
What should be span of
control
Designing of line and staff
functions
Nature of Management
Information System
Work Methods
Job Definition
Performance Appraisal
methods
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Top
Level
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Centralized or Decentralized
Decision making
Patterns of Communication
 Top to bottom
 Bottom to top
Middle
Level
 Across horizontal levels
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Lower
Level
Way of Coordination
Control Mechanism to be
adopted
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Nature of affiliation of
Human Beings
How members are motivated
or demotivated
Influence through inter
personal affiliations & group
formations
Nuances of leadership
Most Uncertain and
unpredictable aspect of
organizations
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OD refers to coping strategies or
interventions which enable the organizations
to consciously move from ‘chaotic’ conditions
to those which promote healthy operations to
achieve organizational effectiveness. It
includes: Design Interventions
 Technology Assessment
 Management by objectives
 Diversification and growth Strategies
 Training and Development
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Rightsizing is management’s
reduction in their organization’s use
of human and/or capital resources to
correct misalignment and improve
performance when organization
decline and environment decline are
present.
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ORGANIZATION DECLINE GENERATED BY
MISMANAGEMENT
Requires Structural
arrangements/changes in:
 Standardization
ENVIRONMENT DECLINECAUSED BY CHANGES IN
COMPETITIVE ENVIRONMENT
Requires strategies
directed at an
organization’s domain:
 Formalization
 Changes in breadth of
 Centralization
products
 Changes in markets
 Structural differentiation
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I. Structural and Domain retrenchment
II. Structural Retrenchment and Domain
Reorientation
III. Structural Reorientation and Domain
Retrenchment
IV. Structural and Domain Reorientation
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DOMAIN
RETRENCHMENT
STRUCTURAL
RETRENCHMENT

Breaks current
portfolio of
products/markets

Increases separation
between performance
of work and its
evaluation

Increases horizontal
differentiation

Span is reduced &
layers of authority are
added
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STRUCTURAL
RETRENCHMENT

Increase vertical
differentiation

Decreased
formalization and
standardization
DOMAIN REORIENTATION

Identify defensible
core of products or
markets
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Increase effort within
that domain
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STRUCTURAL
REORIENTATION
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White collar layoffs
Direct employment
cuts
Layers of authority are
eliminated
DOMAIN RETRENCHMENT

Elaboration of
products & markets
thru horizontal
differentiation to
pinpoint troubled
domains
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STRUCTURAL
REORIENTATION

Decreases in
standardization

Decreases in
formalization
DOMAIN REORIENTATION

Decrease in horizontal
and vertical
differentiation
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