IGNOU MBA MS-10 Solved Assignment

Course Code : MS - 10
Course Title : Organisational Design, Development and Change
Assignment Code : MS-10/TMA/SEM-I/
Coverage : All Blocks

1) Briefly discuss different approaches to organisation and their relevance. Give examples.
Answer:
APPROACHES TO ORGANIZATION
The nature of an organization can be better understood by using different metaphors. A metaphor is
defined as the figure of speech that characterizes one object in terms of another one. The use of
metaphor implies a way of thinking and a way of seeing that pervades how we comprehend our world
generally. According to Morgan, a number of metaphors can be used to think and explain about the
nature of organization. Collectively these metaphors can be used to engender a range of complementary
and competing insights into the strengths and weaknesses of different view points.
Morgan illustrates his ideas by exploring eight archetypical metaphors of organisation: Machines,
Organisms, Brains, Cultures, Political Systems, Psychic Prisons, Flux and Transformation, Instruments
of Domination.
a) Organisations as Machines: Mechanistic approaches to organisation work well only under the
following conditions: (a) When there is a straightforward task to perform; (b) when the environment
is stable enough to ensure that the products produced will be appropriate ones; (c) When one wishes
to produce exactly the same product time and again; (d) when precision is at a premium; and (e)
when the human ‘machine’ parts are compliant and behave as they have been designed to do.
Mechanistic approaches to organisation have proved incredibly popular, partly because of their
efficiency in the performance of tasks that can be successfully routinized and partly because they
offer managers the promise of tight control over people and their activities. In stable times, the
approach worked from a managerial point of view. But with the increasing pace of social and
economic change, its limitations have become more and more apparent.
Its limitations are that it: (a) can create organisational forms that have great impediment in adapting
to changing circumstances; (b) can result in mindless and automatic bureaucracy; (c) can have
unforeseen and undesirable consequences as the interests of those working in the organisation take
precedence over the goals the organisation was designed to achieve; and (d) can have dehumanizing
effects upon employees, particularly those at the lower levels of the organisation hierarchy.
b) Organisations as Organisms
Morgan parallels between organisms and organisations in terms of organic functioning, relations
with the environment, relations between species, and the wider ecology. The organism metaphor
focuses on the following:
 Organizations as “open systems”.
 The process of a adapting organizations to environments.
 Organizational life cycles.
 Factors influencing organizational health and development .
 Different species of organization.
 The relations between species and their ecology.

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The organism metaphor views organization as a living system striving to survive in an uncertain
environment.

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c) Organizations as Brains
This approach to understanding organization, originally known as “the decision-making approach,”
was pioneered in the 1940s and 1950s by Nobel Prize winner Herbert Simon and colleagues like
James March. Exploring the parallels between human decision making and organizational decision
making, Simon is famous for arguing that organizations can never be perfectly rational because
their members have limited information processing abilities. Arguing that people: (a) usually have
to act on the basis of deficient information about possible courses of action and their consequences,
(b) are able to explore only a limited number of alternatives relating to any given decision, and (c)
are unable to attach accurate values to outcomes, Simon challenged the assumptions made in
economics about the optimizing behaviour of individuals. He concluded that individuals and
organizations settle for a “bounded rationality” of “good enough” decisions based on simple rules of
thumb and limited search and information.
d) Organizations as Cultures
Organizations are mini-societies that have their own distinctive patterns of culture and subculture.
Culture is a modern concept used in an anthropological and social sense to refer broadly to
“civilization” and “social
heritage”. Durkheim (1934) is particularly valuable for understanding the relationship between
culture and industrialization.
The approach known as “Institutional theory” has developed the broad tradition by examining the
links between organization and social context, revealing how both are intertwined in the most
fundamental sense. The greatest strength of this metaphor is that it shows how organizations rests in
shared systems of meaning, values, ideologies, beliefs, norms, and other social practices that
ultimately shape and guide organized action.
e) Organizations as Political Systems
Organisations can be understood as mini-states where the relationship between individual and
society parallel by the relationship between individual and organization. There are three frames of
references that are quite relevant for understanding organizations as political systems. The pluralist
frame of reference emphasizes the plural nature of interests, conflicts, and sources of power that
shape organisational life. The unitary frame of reference views that society can be considered as an
integrated whole where the interests of individuals and society are synonymous. And the radical
frame of reference views society as comprising antagonistic class interests, characterizes by deep
rooted social and political cleavages and hold together as much by coercion as by consent. These
three views are presented in Table 1.

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f) Organizations as Psychic Prisons

The idea of psychic prison was first appeared in Plato’s The Republic. This metaphor plays a
powerful role in drawing attention to the ethical dimension of organisation. It shows that we have
over-rationalized our understanding of organisation. Both in our behaviour in organisations and in
our explanations of organisations, factors such as aggression, greed, fear, hate, and libidinal drives
have no official standing. When they do break into the open, they are usually quickly banished
through apologies, rationalizations and punishments designed to restore a more neutered state of
affairs.
g) Organisations as Flux and Transformation
This metaphor throws ideas about chaos, complexity, mutual causality etc. Four sets of ideas
explored by Morgan in this context are:
 The Theory of Autopoiesis
 The Lens of Chaos and Complexity Theory
 Theory of Mutual Causality
 The Lens of Dialectical Analysis
h) Organisations as Instruments of Domination
Organisation in this view, is best understood as a process of domination. This aspect of organisation
has been made a special focus of study by radical organisation theorists inspired by the insights of
Karl Marx and two other very famous sociologists: Max Weber and Robert Michels.
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2) What is organisational structure? Briefly describe the inverted pyramid, boundary less
and virtual organisation designs. Explain how they meet the challenges of the new
environment.
Answer:
ORGANISATIONAL STRUCTURE
An organisation structure specifies the various job tasks and shows how the same are formally
divided, grouped, and coordinated. It provides an appropriate framework for authority relationship.
It indicates the hierarchy of authority and the reporting relationships. It is a means to help the
management to achieve the organisational objectives.
As the objectives of the organisation are derived from the overall strategy of the organisation, it is
logical that an organisation structure is closely linked to its strategy. As such, if the management
makes a significant change in the organisation’s strategy, the organisation’s structure needs to be
modified to accommodate and support the change. There is considerable evidence to indicate that
choice of an organisation’s strategy (stability strategy/growth strategy) is determined by three basic
factors (contingency factors): (i) the organisation’s size, (ii) technology used by the organisation
(for converting the financial, human and physical resources into products and services), and (iii)
environmental uncertainty (external environment).
Information technology and globalisation have had a tremendous impact on organisation structures.
The result has been that the vertical (tall) structures are being replaced by horizontal (flat)
structures; the organisations with mechanistic structures are being transformed into ones with
organic structure. The new forms of organisation structure that have emerged are: taskforce,
network, virtual, boundary less structures. The salient features of these and other organisation
structures are briefly described here to present an overview of different types of organisation
structure and their suitability under different situations.

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VIRTUAL ORGANISATION (NETWORK STRUCTURE)
A virtual organisation is a small, core organisation that outsources major business functions. It is
highly centralised, with little or no departmentalisation.
The virtual organisation creates network relationships with other organisations / agencies located
anywhere in the world for the purpose of contracting out functions like manufacturing, distribution,
marketing, R & D, etc. (Figure 1). The networking is done through the electronic technology.
As such, the partnerships between the virtual organisation and other organisations (far-flung
companies) are based on electronic contracts. The partners are less permanent, less formal, and
more opportunistic. Each partner contributes to the virtual organisation its core capabilities. The
managers of the virtual organisations spend most of their time in coordinating the various activities
through the networking. Examples of virtual organisations include Ford, Harley Davidson, Nike,
Rebok, Mobil Corp., IBM etc.
Figure 1: Virtual Organisation Structure

The major advantages of a virtual organisation are:

1. Through virtual organisation it is possible to create “best-of-everything” organisation because
each partner brings its “core competence.”
2. A virtual organisation allows someone with an innovative idea and little money to successfully
compete against large companies. This is possible because of flexible nature.
The major disadvantages of the virtual structure are:
1. It reduces management’s control over the key parts of its business; and
2. The reliability of the partners may be doubtful.

BOUNDARYLESS ORGANISATION
General Electric Chairman, Jack Welch, coined the term boundaryless organisation. The
boundaryless organisation seeks to remove the vertical and horizontal boundaries within the
organisation and to break down external barriers between the company and its customers and

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suppliers. Once the management removes the vertical boundaries, the structure of the organisation
looks more like a silo than a pyramid.
To break down the vertical boundaries, the management adopts the following strategies:
i. Creating cross-hierarchical teams (which includes top executives, middle managers,
supervisors, and operative employees);
ii. Encouraging participative decision making; and
iii. Making use of 360 degree performance appraisal (peers and others above and below the
employee evaluate his / her performance).
To reduce the barriers to the horizontal boundaries, the management adopts the following
strategies:
1. Replacing the functional departments with cross-functional teams and organising activities
around processes;
2. Using lateral transfers; and
3. Rotating people into and out of different functional areas.
The external boundaries can be reduced through practices like strategic alliances, customer-
organisation linkages and telecommuting (mainly with the networked computers).
The major advantages of the boundryless organisation are:
1. It fosters teamwork among the employees;
2. It ensures speedy communication within the organisation (intra-organisational communication)
and between the organisation and the customers and suppliers (inter-organisational
communication); and
3. It can help competitiveness in the global economy.
A principal drawback of this form of organisation is that it is difficult to clearly establish the
relationship between superiors and subordinates in the organisation.
INVERTED PYRAMID
Organisations with this type of structure put the customers at the top and give them the most
important role in driving the business. The front-line employees like sales representatives, people in
charge of help-desk, etc. who come in direct contact with the customers, are also given a similar
position. The Chief Executive Officer of the organisation is at the bottom of the structure (Figure 2).
Thus, in this form of organisation, the role of the management changes from a commanding one to a
supporting one.
Some of the advantages of the inverted pyramid are:
1. This structure gives first preference to the customers. Therefore, it becomes easy for the
organisation to know the customers’ choices, and to work out appropriate strategies to ensure
customers’ satisfaction; and
2. In this form of organisation, the employees are given more responsibility and authority than the
top management.
A major disadvantage of the inverted pyramid relates to formulation of strategies. The frontline
foremen are not quite equipped to formulate strategies regarding the organisation. This leaves
sufficient ground within the organisation to doubt about their capabilities to make appropriate
strategies.

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 Figure 2: Inverted Pyramid Organisation Structure

Some of the advantages of the inverted pyramid are:

1. This structure gives first preference to the customers. Therefore, it becomes easy for the
organisation to know the customers’ choices, and to work out appropriate strategies to ensure
customers’ satisfaction; and
2. In this form of organisation, the employees are given more responsibility and authority than the
top management.
A major disadvantage of the inverted pyramid relates to formulation of strategies. The frontline
foremen are not quite equipped to formulate strategies regarding the organisation. This leaves
sufficient ground within the organisation to doubt about their capabilities to make appropriate
strategies.
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3) Describe emerging trends in work organisations and discuss how it affects the quality of
work life with examples.
Answer:
Emerging Trends in Work Organizations
The pressure of competitiveness due to globalization and privatization has resulted in many far
reaching changes in the work place. Companies are designing their work systems around the
following four props: virtual organizations, flexible and adaptive workforce, contingent pay and
democratic governance at workplace. Keeping people engaged in the work of the organization and
making them realize that they contribute to the mission of the organisation is a key challenge. Table
1 provides insights into the shifts depending on whether a company is engaged in traditional
agriculture or manufacturing or information technology leveraged manufacturing and service sector.

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 Table 1: Shifting Focus In The Realm Of Work

Details of a few changes are mentioned below.

1. Job Insecurity And Work Intensification
2. Flexibilisation & Casualisation
3. Macdonaldisation
4. Commodification
5. Rescheduling Working Arrangements
 Compressed Workweek
 Part-Time Work
 Job Sharing
 Telecommuting
 Call Centres
6. Growing Relevance of Knowledge Work
QUALITY OF WORK LIFE (QWL)
Organization, in the past, gave more importance on innovative technology for higher productivity
surpassing the needs and mental state of its employees. This created a negative impact on the
working environment among the employees. Thus it was realised that societal support goes hand in
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 hand with technical innovations. This integration can only be made through quality of work life
programmes. Quality of work life refers to all the organizational inputs which aim at the employee’s
satisfaction and enhancing organizational effectiveness.
Meaning and Concept of QWL
The term ‘quality of work life (QWL) has different meanings of different people. Some consider it
industrial democracy or codetermination with increased employee participation in the decision
making process. For others, particularly managers and administrators, the term denotes
improvement in the psychological aspects of work to improve productivity. Unions and workers
interpret it as more equitable sharing of profits, job security and healthy and humane working
conditions. Others view it as improving social relationships at workplace through autonomous
workgroups. Finally, others take a broader view of changing the entire organizational climate by
humanizing work, individualising organizations and changing the structural and managerial
systems.
The Effect of Quality Work Life
The positive aspects of QWL are:.
 Improved communication and co-ordination among the workers and organization helps to
integrate different jobs resulting in better task performance.
 Better working condition enhances workers motivation to work in a healthy atmosphere
resulting in motivation and increase in production.
 As QWL includes participation in group discussion and solving the problem, improving the
skill, enhancing their capabilities and thus building confidence and increased output.
 QWL attracts talented employees and make them loyal towards the organization.
 Making employees feel valued .
 Increased productivity
 Reduced absenteeism
 Earned the reputation of being an employer of choice
 Retaining valued employees .
 Help employees to have work-life balance .
The net result is - more satisfied and productive workers produce better and quality products.
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4) Discuss the importance of organisational diagnosis. Briefly describe questionnaire as
diagnostic tool.
Answer:
WHAT IS ORGANISATIONAL DIAGNOSIS?
In some ways organisations, their structure and functioning can be compared to structure and
functioning of the human system. Just as an organism has several parts an organisation is also
structured with several subsystems. Effective functioning of the human sub-systems depends on the
effective functioning of all the constituent parts. When the human system is in trouble it is either
due to a problem in a part that could be located or due to problems that affect the entire system. In
any case when there is trouble the entire system gets affected.
An organisation facing problems could be diagnosed by an organisational specialist on the basis of
noticeable (visible) symptoms and using tests to bring out what is not evident. The only difference
is that the human organism normally functions as a whole as it has a single mind. An organisation
has several parts each having its own independent minds and they may not always function in a

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fully unified way. So even when the top management think that there is a problem other systems
may not think so or vice versa. Organisation has several minds that is what adds to the complexity
of the organisation.
Thus organisational diagnosis is an exercise attempted to make an analysis of the organisation, its
structure, subsystems and processes in order to identify the strengths and weaknesses of its
structural components and processes and use it as a base for developing plans to improve and/or
maximise the dynamism and effectiveness of the organisation.
Organisational diagnosis could be done as a periodic routine exercise like the case of periodic
medical check up of an individual or may be undertaken whenever there is a cognizable problem
that is affecting the functioning of an organisation.
Importance of organisational diagnosis
Organisational analysis may be done for different purposes. These include:
1) Enhancing the general understanding of the functioning of organisations (i.e.
educational or research purposes.)
(The direct beneficiary is the researcher or the analyst rather than the organisation). Such a
study may aim at enhancing the understanding of human behaviour through a study of it in
organisation, or to enhance the understanding of the society as reflected in organisational life.
2) Planning for growth and diversification
An analysis or a diagnostic study may be necessary for planning growth, diversification,
expansion etc. Organisational analysis may reveal the strengths that could be used for growth
and diversification, weak spots that need to be removed in the new plans, the precautions to
be taken, structural dimensions to be kept in mind etc. Several insights may be provided on
structure, people, systems, styles, technology etc. that have implications for growth.
3) Improving Organisational Effectiveness or Planning General Improvements
Organisational Analysis may be used also for improving the general efficiency of an
organisation. On the basis of a diagnosis made out of the analysis action steps could be
initiated in terms of toning up administration, introducing new management systems and
processes, reduction of wasteful expenditure, introduction of time savers, change of personnel
policies to enhance employee motivation, restructuring of some parts, training, elimination of
unwanted structures and teasers, improvements in general health of the organisation etc.
4) Organisational Problem Solving
Whenever some subsystems departments, units etc. fall sick or start creating problems a
diagnosis may be undertaken with a view to identify the source of the problem and take
corrective action. A sick unit, a bottleneck, a communication block, a poor performing
department, frequently occurring conflict between two departments, repeated failures of a
management system or an organisational process, a frequent violation of an organisational
norm, fall in discipline, reduction in output absenteeism, increase in conflicts etc. can all lead
to the need for an organisational diagnosis of a part of the organisation or the entire
organisation.
METHODS OF ORGANISATIONAL ANALYSIS
There are many ways of analysing and diagnosing organisations and their phenomena. The
following are the most frequently used methods:
1) Questionnaires
2) Interviews
3) Observation
4) Analysis of records, circulars, appraisal reports and other organisational literature
5) Analysis of hard data of organisations and various units
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 6) Task forces and task groups
7) Problem identification/problem solving workshops
8) Seminars, symposia and training programme
9) Recording and examining critical incidents, events.
Questionnaire, Interviews, Workshops and Task-forces are the most frequently used methods of
organisational diagnosis in India. They are used separately or in combinations. Of the four,
Questionnaires are more commonly used as they could be used with ease and by persons inside the
organisation.
There are a number of fairly standardised Questionnaire for Organisational diagnosis. It is also easy
to develop Questionnaire to suit each organisation’s requirements.
Choice of a questionnaire depends on the purposes of diagnosis and the indications available from a
preliminary diagnosis of the dimensions needing in-depth study. Normally before the decision to
use a questionnaire the person or the group, intending to use it should have identified the area of
concern through interviews, complaints, observed symptoms or general opinions of interest
expressed by the top management etc.

There are many dimensions that could be studied through questionnaire. The following is a list of
these dimensions more frequently studied for diagnostic purposes.
The following are some considerations that could be kept in mind while preparing the
questionnaire.
Questionnaire for organisational diagnosis normally measure the perceptions of employees or
participants in an organisation. It is the aggregate of these perceptions that indicate the
organisational strengths and short-comings.
 The employees/participants of an organisation sometimes are in a good position to provide
dimensions/variables on which questionnaire can be framed. For example, to diagnose the
organisational health of an agriculture university a group of scientists of that university were
assembled and requested to make statements about what in their opinion is good and bad in the
university. All their statements were collected, edited and a questionnaire was made.
Subsequently it was administered to all the scientists in that university. Thus interviews/group
discussions/meetings/workshops help in developing questionnaire.
 Another form of developing a questionnaire is to sample test any standardised questionnaire on
a group of respondents. The respondents could be asked to indicate variables/items that should
be used for diagnosis.
 In preparing a questionnaire, structured questionnaire are more easy to analyse data and for
providing statistical information
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5) What are the competencies required for a change agent? Discuss.
Answer:
COMPETENCIES OF CHANGE AGENTS
Competency is an underlying characteristic of a person that results in effective and/or superior
performance (Boyatzis, 1982).
After going through various roles of Change agents, it would have become clear that they have to be
master of many competencies. It needs to clarify here that it is not possible for a particular Change
agent to be the master of all skills / competencies, that is why, Change agents also engage other
Change agents / Consultants. It is very difficult to make an exclusive list of Change agent

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 competencies — the roles themselves indicate many of them. The competencies include knowledge,
skills, attitudes, traits, value, motives and it is difficult to draw a line between theses. A skill is used
for applications or working for performing a task / satisfying a role, which is a result of a number of
visible and invisible competencies. In general, competencies for Change agents may be broadly
classified into:
– Cognitive Competencies;
– Functional / Technical Competencies;
– Personal (Effectiveness) Competencies (Self-control, attitudes, traits, values etc.); and
– Inter-personal Competencies.
In addition, ‘Consulting’ / Problem solving competency comprising of all the above mentioned
competencies is also essential for Change agents. Each of these competencies has been briefly
explained as following:
1 Cognitive Competencies:
Cognitive competencies are required for perceiving and thinking and are again a combination of a
number of competencies. For simple explanation, these can be divided in two types of thinking:
 Analytical thinking; and
 Conceptual thinking.
 Analytical Thinking enables a person to understand a situation by breaking it apart into smaller
pieces, or tracing the implications of a situation in a step-by-step causal way. It also involves
organising the parts of a problem or situation in a systematic way, making systematic
comparisons of different aspects or features, setting priorities on a rational basis, identifying time
sequences, causal relationships or ‘If .......... then ...........’ relationships.
 Conceptual Thinking involves understanding a situation or problem by putting the pieces
together and seeing the large picture. It includes identifying patterns or connections between
situations that are not obviously related and identifying key or underlying issues in a complex
situation. Conceptual thinking uses creative, conceptual or inductive reasoning for applying the
existing concepts of defining novel concepts. According to Spencer and Spencer (1993), there
are two main dimensions of Conceptual thinking :
 The complexity of thought processes and their originality — ranging from ‘using basic
thumb rules’ to ‘creating new theories explaining complex situations’.
 The breadth or the size of the problem analysed.
2 Functional/Technical Competencies
These are the skills required to perform effectively in a particular discipline, functional or technical
area such as — Heat Treatment, Corrosion, Investment analysis, Designing a wage and salary
administration system, Organization Development, Structural Design etc.
The Change agent, who is working for identifying or resolving problems, must have the necessary
knowledge particularly as Problem identifier or/and Solution provider. Technical / professional
competencies include mastery on a body or field of Job related Knowledge and skills and also the
motivation to enhance, use and disseminate work-related knowledge/skills to others. According to
Spencer and Spencer, there are four main dimensions to Functional / Technical/ Professional
competencies:
i) Depth of Knowledge and Skills
ii) Breadth of Knowledge and Skills
iii) Expertise Acquisition Motive
iv) Distribution / Dissemination of Expertise
Change agents / Consultants are engaged for solving problems, and all problems apparently will
emerge in one or more of functions/departments/ processes of the organizations. Functional /
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 technical knowledge provides a perspective to perceive in a holistic manner and also quite essential
for interacting with and convincing the client. It adds to the confidence and credibility of the
Change agent.
3. Personal (Effectiveness) / Self Management Competencies
These competencies help a person to be effective in achieving his goals, actions even amidst
environmental difficulties and pressures. For effectiveness of Change agents / Consultants, the
following personal / self management skills are quite essential.
 Self Control
 Self Confidence
 Flexibility
 Organizational Commitment
 Initiative
4. Inter-Personal Competencies
These competencies are essential for dealing with other people effectively. Inter-personal
competencies are a bunch of different skills largely overlapping with each other. It is very difficult
to clearly enumerate all such slots.
However, some of the inter-personal skills may be enumerated as :
 Inter-personal relations;
 Helping a person; and
 Developing and maintaining smooth, co-operative working relationships with colleagues,
superiors, customers, clients etc.
5. Consulting Competency
Although Change agents are also considered to be Consultants, however, in this section, this is
being taken as a specific competency of Change agents. These are needed to complete the various
phases of a change project and adapting the consulting role as needed for a variety of situations.
 General Skills These skills are necessary for selecting and expediting different roles as a
consultant.
 Contracting Skills It is the skill needed for building a verbal agreement with a client
 Sensing and Diagnosing Skills Helping the client to discover and clearly understand the
problem
 Problem Solving and Decision-Making Skills Involving others in problem solving and goal
setting.
 Implementing Skills These skills are essential for successfully carrying out a project of
planned change.
 Evaluating Skills For determining the success or failure of a change initiative / project,
evaluating skills are necessary.
 Maintenance Skills Creating a sense of responsibility, passion for the new system, procedures
etc., after change.
 Educating
 Diagnosing
 Consulting
 Linking
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