Emerging Organisation Models

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Emerging Organisation Models People Practices

• S.Varadarajan
• raja.sv_at_wipro.com
• November 2003

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Points for discussion

• Present challenges
• Characteristic features of an Organisation
• Coping with the challenges
• Organisation of the future

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Present Challenges !

• Transition era
• Industrial Revolution to Information
  Revolution
• I T explosion
• Turbulence intensified competition
• Anywhere, anytime, anything
• Immediate impact of market changes..little time
  to react
• Global Complexity and Increasing interdependence
• Emergence of new sets of values to do with such
  issues as quality of work life environmental
  conservation

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Characteristic features of Organisations

• They are social institutions
• They are socio-technical systems
• They are enduring
• They are made up of interdependencies across
• Structure
• Systems, procedures and processes
• Culture

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Coping with the Challenges Information Explosion
New Technology

• Flatter organisations for empowered employees
• Knowledge intensive specialists
• Constant networked flow of information
  Information based organisations
• Span of communication will take the place of span
  of control

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Coping with the Challenges Turbulence
Intensified Competition

• Functional flexibility
• Ability to re-deploy rapidly and smoothly
• Multiple customers, multiple needs
• Multi-skilling radically improve effectiveness,
  rapid and short learning curves
• Hire for attitude and train for skills

• Attracting and retaining talent will be a major
  challenge
• More involvement will be there from Government,
  to focus on education suited to industry needs
  and
• Private enterprises will participate in education
  industry much more

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Coping with the Challenges Turbulence
Intensified Competition

• Functional flexibility
• Ability to re-deploy rapidly and smoothly
• Multi-skilling
• Numerical flexibility
• Expand or contract headcount
• New flexible organisational model with radically
  different employment policies

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What will not work
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Leadership Implication of New Realities

• More of a Hub Spoke structure
• - Need for effective networking capabilities
• Passion for Learning
• - Capability Willingness

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The Flexible Organisation
Part-time employees
Outsourcing
Agency temps, students Seasonal casual
Core Business Activity
Licensees, Franchise operators
Self-employed contractors
Facilities management Sub-contractors
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Coping with the Challenges Turbulence
Intensified Competition

• Functional flexibility
• Ability to re-deploy rapidly and smoothly
• Multi-skilling
• Numerical flexibility
• Expand or contract headcount
• New model with radically different employment
  policies flexible employment terms
• Effective hiring strategy including outsourcing

• Aligning employees to Organisational Values and
  strategy will be a challenge
• Emotional alienation and pay disparity will be
  the major implications of the new order for
  employees.
• Successful organisations will develop outsourcing
  agencies, similar to the concept of vendor
  development, by manufacturing organisations in
  the past.

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Coping with the Challenges Turbulence
Intensified Competition

• Functional flexibility
• Ability to re-deploy rapidly and smoothly
• Multi-skilling
• Numerical flexibility
• Expand or contract headcount
• New model with radically different employment
  policies
• Financial flexibility
• Ability to adjust wage and salary costs to
  respond to changes in market conditions including
• Competitive pressure on costs
• Shortage of key skills
• Local labor market characteristics
• Fixed performance related variable pay

• There will be a disparity of salaries and a small
  proportion of employees will continue to be
  pampered and over-paid.
• This disparity will cause employees to search for
  clarity on rewards compensation and will drive
  them to find their career anchors.

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Coping with the Challenges Global Complexity
Increasing Interdependence

• Fading out of the boundary fence attitude
• Edges fuzzy enabling Velcro approach
• Adversaries becoming collaborators / partners
• Creating a global identity
• Strategic alliances
• Cross cultural Global awareness training

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Coping with the Challenges Changing Value
Systems in Organisations

• Efficiency international competitiveness can be
  consistent with concern for people
• Concern for wealth creation profit can be
  balanced by concern for legitimacy by the
  exercise of social responsibility
• Concern for environment non-renewable resources
  can be balanced with selective growth discovery
  of renewable resources
• Multi-level participation entrepreneurial
  innovation can balance the trend towards
  centralization and increased bureaucracy
• Self-reliance can be balanced with co-operation
  partnership without descending to paternalism
• Quality of life can be balanced in a world that
  is still growing
• Rights opportunities can be tempered by
  acceptance of responsibility

Source Howard Perlmutter, Director, Worldwide
Institutions Research Center
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Employers HR professionals with the values of
the post-liberalisation era

• Organisations in the future will need to tackle
  the negative effects of process orientation.
• They could do this in 5 ways
• Have a long-term orientation and a balanced
  approach to business, and change their mindset of
  trying in vain to please shareholders every
  quarter
• Define, communicate, emote and teach their
  organisational values to provide employees with
  uniform motives that would lead to consistent
  behaviour
• Engage employees emotionally and contest the
  increasing dehumanisation of the workplace
• Have a balanced staffing strategy and not rely
  only on lateral hires
• Invest in talent and leadership development of
  their employees, while creating learning
  organisations and off-shoot development
  organisations

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Some more challenges.

• Work Life Balance will be in complete disarray as
  commercial comforts luxuries increasingly
  become seen as the fruit of labour
• Long and erratic working hours will cause an
  exponential increase in stress levels and
  associated health problems
• Many will find solutions to their work-life
  imbalance through self-imposed sabbaticals and
  looking for peace through spirituality
• Employers will do their bit by allowing
  flexi-timing and implementing other
  women-friendly policies as women become preferred
  employees
• To bring back an equilibrium, men will need to
  learn life skills. This will be an important
  driver of societys preparedness in the future
• People over 45 will have three primary concerns
  upgrading their skill sets managing their
  finances and taking care of their health

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To conclude .. What is the organisation of the
future?
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Different strokes by different folks

• Information scientists concentrate on adapting
  Organisation to new developments in I T
• Economists concentrate on effects of instability
  due to heightened Competition
• Biz Strategists concentrate on Organisation
  complexity and how to deal with it
• Sociologists Conservationists focus on
  influence of changing values challenges

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So the art of Organisation design in the next
decade

• Ability to balance awareness of the four sets of
  influences
• Developments in I T
• Increased competition
• Complexity
• Changing values
• Across
• Structure
• Systems / Procedures
• Culture / Values

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The Organization of the future
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The Organization of the future
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The Organization of the future
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The Organisation of the future
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Parting thoughts . . . .
No limits to the future There are no limits to
the human imagination There are no limits to our
capacity to change There are no limits to our
capability to improve There are no limits to our
willingness to achieve There are no limits to our
dedication to serve There are no limits except
those we set ourselves There are no limits.