assignment- 2 - priyanka

7/31/2019 Assignment- 2 - Priyanka

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are a combination of the two. The contingency approach tailors organizational structure to thesources of uncertainty.

Our organization is highlydecentralizedanddifferentiated

Decentralized- as it has got five divisions- Marketing and sales, Engineering, Production,administration, Supply Chain

Each division is headed by 2 divisional managers and they report to the MD. One of them is aJapenese and the other is an Indian, the Japanese are the Executive directors and the IndianDivisional managers are managing executive officers supported by functional managers.Following is the division wise hierarchy

Marketing and sales- This division has 6 functional managers, manager- sales , manager-pre-owned cars, manager- spares, manager-market strategy development, manager-marketing and manager- road safety

Engineering Manager- Marketing, Manager- QA and Manager- Service

Production- This division has 4 managers Manager- manufacturing, Manager-facilities

planning, Manager- production and services, Manager- supply quality assurance Administration- 3 Managers- 3 Manager- Finance , Manager- IT and Manager- HR

Supply Chain- Manager-Supply chain, Manager-component sourcing, Manager-Vendormanagement, Manager- consumables

Differenciated- Our organization with large amount of differentiation gives our departmentsseparate components a great deal of autonomy. Business culture differs significantly between thevarious divisions of the organization. The division of work, labor and authority is clearlydifferentiated among all 5 departments

Integrated mechanism- Our organizationneeds to integrate its teams into a hierarchy of authorityto provide control so that teams coordinate with functions.

As companies become large and complex, communication barriers increase. We have created anintegrating role, a full-time position to improve communication between divisions. This differs froma liaison role, which is only part-time.

Balancing Differentiation and IntegrationIt is a challenge to balance differentiation and integration. Horizontal differentiation creates subunitsto facilitate specialization; however, subunit orientations, perceiving ones role as a subunitmember, emerge as an organization becomes complex.

Integration and Integrating MechanismsSubunit orientations make communication and coordination difficult. Integration or coordinatingtasks, functions, and divisions, improves coordination and communication. (Table 4.1)

The seven integrating mechanisms, from simplest to complex, include:

1. Hierarchy of authority specifies reporting relationships.2. Direct contact requires managers from different functions to meet to coordinate activities.3. Liaison role requires a manager to coordinate with other subunit managers.4. Task forces create a temporary cross-functional committee.5. Teams require different functional managers to coordinate activities.6. Integrating roles coordinate two or more functions or divisions.7. Integrating departments coordinate functions or divisions.


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Is behavior in the organization very standardized or does mutual adjustment play an important rolein co-ordinating people and activities?

Balancing Standardization and Mutual AdjustmentIt is challenging to balance control through standardization with employee problem solving formutual adjustment. Some functions, like accounting, require standardization, but others, like R&D,require risk taking. Integrating mechanisms, such as task forces and teams, increase mutualadjustment. Complex, uncertain tasks rely on mutual adjustment. An appropriate balance betweenstandardization and mutual adjustment promotes creative and responsible behavior and thereforewe have a balance of these in our organization withstandardized methods where ever possible

Standardization is facilitated through formalization, written rules, norms, and informal behavioralexpectations. Standardization results in predictable behavior. In similar activities the there arestandard methods for divisions like Administration and production, they will perform and deliverbetter in this way

However other departments like R and D etc. depend and can be successful in mutual co-ordination giving them the scope for innovation and improvisation in which case we have thesedepartments operate on mutual co-ordination

In our organization Standardization and formal rules facilitate control and coordination.

Marutis environment is more uncertain due primarily to changing consumer tastes. Marutismechanistic structure is based on formalization and ensured standardization, but an uncertainenvironment has led to an organic structure. Franchisees can tailor menus and decor to localcustomers. Marutis challenge is to make its structure organic to promote flexibility yet maintaincentralization to ensure standards of quality

Socialization- means learning norms and unwritten rules.

Socialization is the vehicle for coordinating and motivating employees. They learn organizationalroles from members of their functions and the norm of providing excellent customer service.

Employees receive company stock as a motivator.

In an organization like ours Socialization is extremely important due as ours is a Matrixorganization, it has vertical and horizontal differentiation. It is a complex organization in which casemore interaction is required to be successful

We have the following structured activities to achieve this objective. The frequency and structuremight vary from department to department

- Best practice sharing- Team Building trainings- Informal team outings-

Breakout zones at each corners- Formal management dinners- Fun at work team- Rewards and recognition ceremony at organization level


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Ques 4- Does you analysis in Item 3 leave you to think that your organization confirms more to theorganic or the mechanistic model of organizational structure? Briefly explain why you think itsorganic or mechanistic

Marutis environment is more uncertain due primarily to changing consumer tastes. Marutismechanistic structure was based on formalization and ensured standardization, but an uncertainenvironment has led to an organic structure. Franchisees can tailor menus and decor to localcustomers. Marutis challenge is to make its structure organic to promote flexibility yet maintaincentralization to ensure standards of quality

Our organization is highlydecentralizedanddifferentiated

Organic structures encourage flexibility and decentralize decision making. Roles are looselydefined. Employees perform many tasks and work with people from various functions.

Organic structures respond quickly to change- In which case Maruti keeps on working based oncustomer needs and demands

Our organizations success of the organic structure was due to a policy of promoting from within

the highest performing salespeople. The company has also created a system in which employeesfeel like they owned the company.

The seven integrating mechanisms, that we have in our organization are:

1. Hierarchy of authority specifies reporting relationships.2. Direct contact requires managers from different functions to meet to coordinate activities.3. Liaison role requires a manager to coordinate with other subunit managers.4. Task forces create a temporary cross-functional committee.5. Teams require different functional managers to coordinate activities.6. Integrating roles coordinate two or more functions or divisions.7. Integrating departments coordinate functions or divisions.

Thus an organic structure is appropriate and is what we have in our organization with anuncertain, changing environment requiring flexibility.

assignment- 2 - priyanka

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