Tag: Innovation Management

Strategic decisions are the decisions that are concerned with whole environment in which the firm operates, the entire resources and the people who form the company and the interface between the two.

Characteristics/Features of Strategic Decisions

• Strategic decisions have major resource propositions for an organization. These decisions may be concerned with possessing new resources, organizing others or reallocating others.
• Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities.
• Strategic decisions deal with the range of organizational activities. It is all about what they want the organization to be like and to be about.
• Strategic decisions involve a change of major kind since an organization operates in ever-changing environment.
• Strategic decisions are complex in nature.
• Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot of risk.
• Strategic decisions are different from administrative and operational decisions. Administrative decisions are routine decisions which help or rather facilitate strategic decisions or operational decisions. Operational decisions are technical decisions which help execution of strategic decisions. To reduce cost is a strategic decision which is achieved through operational decision of reducing the number of employees and how we carry out these reductions will be administrative decision.

Nature of Strategy

Based on the above definitions, we can understand the nature of strategy. A few aspects regarding nature of strategy are as follows:

• Strategy is a major course of action through which an organization relates itself to its environment particularly the external factors to facilitate all actions involved in meeting the objectives of the organization.
• Strategy is the blend of internal and external factors. To meet the opportunities and threats provided by the external factors, internal factors are matched with them.
• Strategy is the combination of actions aimed to meet a particular condition, to solve certain problems or to achieve a desirable end. The actions are different for different situations.
• Due to its dependence on environmental variables, strategy may involve a contradictory action. An organization may take contradictory actions either simultaneously or with a gap of time. For example, a firm is engaged in closing down of some of its business and at the same time expanding some.
• Strategy is future oriented. Strategic actions are required for new situations which have not arisen before in the past.
• Strategy requires some systems and norms for its efficient adoption in any organization.
• Strategy provides overall framework for guiding enterprise thinking and action.

Marketing Strategies

Marketing strategy is the total and unbeatable instrument or a plan shaped and designed specifically for attaining the marketing objectives of a firm. A marketing mission and objectives tell us as to where we want to go and marketing strategy provides us with the grand design for reaching out there.

The borrow the words of Prof. Jerome Mc Carthy “strategy is the all important part of marketing. The one time planning decision the most crucial decision that determines what business the company is in and the general strategy, it will follow may be more important than has ever been realized”

In the words of Mr. Robertson and Yoram Wind, “there are three generic strategies for achieving success in the competitive market place. The first of these is to gain control over the supply or distribution, the second competitive cost advantage and the third product differentiation; marketing as a discipline is critical component of all these three strategies. Marketing performs a boundary role function in the firm’s selection of an appropriate strategy; marketing spares the customer interface and provides the assessment of needs which must ultimately guide all strategy development”.

To quite Michael E. Porter “marketing strategy has mainly one aim to cope up with competition; these are five major and vital forces that decide the nature and intensity of competition the threat of new entrants, bargaining power of customers, bargaining power of suppliers, threat of substitute products and jockeying among the existing contest arts ; the collective strength of these forces determine the ultimate profit potential, of an industry; the strategists goal is to find a position in the industry where his company can best defined itself against these forces or can influence them in his favour; strategy can be viewed as building defences against competitive forces.

In the final analysis marketing strategy stands for competitive marketing actions that are bound to evoke a response from competition. That is why a successful marketer needs to have a comprehensive strategy to tackle competition at any cost.

However, one cannot go to the extent of “any cost” unless one works according to a plan and that is competitive strategy for thumping success in marketing. It is but, therefore, natural that competitive strategy has to be one that will evoke the much sought after competitive advantage. Having given the competitive advantage, the said strategy should give a sustainable competitive edge.

It warrants the thorough investigation and analyses of competition before one hope to have a competitive advantage. Thus competitive investigation, scanning and analysis consist of two things namely, the “long-term profit- opportunity” and owns one’s competitive position.

The ways of out beating competition are:

1. Reducing competition

Perhaps this is the simplest way of fighting out. It sounds well in theory; however in practice it means acquisition of smaller or weaker units which are in competition. Thus, Hindustan Lever acquired TOMACO and Broke Bond acquiring Kissan and Lipton.

2. Joining competition

This is another way out to mitigate competition which is gaining ground. The best example is that of joint venture of Procter and Gamble and Godrej Soaps.

3. Pre-empting competition

This is another way which is a proactive approach, which is very effective particularly when it is backed by competitive analysis. The example of pre-empting competition is that of.

4. To create barriers

This implies forbidding others from entry in the line based on very strong financial and muscle power. Good many companies spend heavily barring others to just think of such extravagance a luxury or a dream for them. The example of this kind is that of.

5. To differentiated the products

It pays to differentiate the products. One must not hesitate to differ his own product with a new to provide better value for the money paid by the customers. It is not only ideal but practical. That is majority of the companies to do it. The examples are good many but we can take toiletotries of all companies.

6. To improve the speed of response

The competitive edge can be further sharpened than one thinks. There are certain manufactured products where speed of response as well as quick source is of top significance.

Though the companies are aware of keeping pace with changing technological tempo they should be well ahead of the same. Quality in consonance with technology has much valid response if it catches the required speed.

7. To divest from regular activities

Instead of moving in the same grow; it should more out of it. The firm should divest out of focus activities. This makes available much wanted scarce recess in the focused activities.

8. To improve efficiency

It is but natural that there is close alliance between important efficiency and the competitive edge. This helps the marketer to distinguish his products though reduced cycle of line and reduced costs.

To restate, a competitive marketing strategy should be such that will give sustainable competitive advantage. One has to be therefore proactive and quick in one’s responses and one should be willing to invest in long-term profits.

Nature of Marketing Strategies

The exact nature of strategy is self evident from the definitions we have gone through.

The nature is clearly spoken by the following points:

1. They are dynamic

The concept of marketing strategy is relative as it is designed to meet the changing demands of a situation. Each situation and event needs a different strategy that is why strategies are revised and recast very frequently to cope up with the changes in a given situation or event.

2. They are futuristic

A marketing strategy is forward looking. It orients towards future. A marketing strategy is designed to bring out the organization from a ditch of degression to the path of progress for better change in the coming times.

3. They are complex

A marketing strategy is a very complex plan impounding in its compound other plans or firms of plans which area must to achieve the organizational goals. It is a compendium or complex of plans within plan to out beat the strength and vitality of others in the line are allied activities.

4. They provide direction

Marketing strategies provide a set direction in which human and physical resources will be allocated and deployed for achieving organisational goals in the face of change environmental pressure, stress and strains and constraints and restraints.

5. They are all covering

Marketing strategies involve the right combination of factors governing the best results. In fact strategic planning warrants not only the isolation of various elements of a given situation but a judicious and critical evaluation of their relative importance.

6. They are a link between the unit and environment

The strategic decisions that are basically related with likely trends in the changing marketing changes in govt., policies, technological developments, ecological change over’s, social and cultural overtones. Then, the ever-changing environment which is external to the organization has impact on it because unit is the sub-systems of supra-system namely environment.

7. They are interpretative

Marketing strategies are the interpretative plans formulated to interpret and give meaning to other plans in the spot-light of a specific situation or situations. They demand an adjustment of plans in anticipator of the reactions of those who will be influenced. Strategic decisions are the result of a complex and intricate process of decision making.

8. They are Top Management Blue-print

Marketing strategies their formulation is the basic responsibility of top management. It is because, it is top management that spells out the missions, objectives and goals and the policies and strategies are the ways to reach them. Thus, top management is not only to say to where to go but how best to go the terminal point.

Essentials of Marketing Strategies

Any marketing strategy to be worth calling as successful or effective must enjoy certain extras which can be called as essentials or requisites of it.

The basic guidelines, used to call a strategy a successful one used by experts are:

1. It is consistent

A marketing strategy to be effective is to be consistent with the overall and specific objectives and policies and other, strategies and tactics of the marketing organization. Interval consistency is an essential ingredient of a good strategy as it identifies the areas where the strategic decisions are to be made imminently or in the long run.

2. It is workable:

Any strategy however laudable and theoretically sound is meaningless unless it is able to meet the ever changing need of a situation. In this business world contingency is quite common and the strategy that strikes at the head to contribute to the progresses and prosperity of marketing organization.

3. It is suitable

A strategy is emergent of situations or environment. It is the subservient of changing environment of business world. It is but natural that any strategy not suiting to .the environment can impound the marketing organization in the compounds of danger, digress and frustration.

4. It is not risky

Any strategy involves risks as uncertainty is certain; what is important is that the extent of the risk involved or associated with strategy is reasonably low as compared to its pay-off or returns. It is because; a high risk very strategy may threaten the survival of the marketing organization, let alone its success, if calculations go fit.

5. It is resource based

A sound strategy is one which is designed in the background of the available resources at its command. A strategy involves certain amount of risk which can hardly be segregated. A strategic decision warrants commitment of right amount of resources to the opportunity and reservation of sufficient resources for an anticipated or “Pass through” errors in such demands of resources.

6. It has a time horizon

The statement “a stitch in time saves nine” that aptly applies to the concept of strategy. A sound strategy is time bound to be used at the nick of the hour and tick of the opportunity. It has an appropriate time horizon. This time this is costlier than money and its horizon banks on the goals to be achieved.

The time should be long enough to permit the organization to make adjustments and maintain the consistency of a strategy.

There are four methods:

1. Three Paths of Yoga. According to this, traditionally, four paths have been suggested to motivate.

(1) Cyan Yog: Path of knowledge of right or wrong and person is motivated through discussions, debate and contemplation.

(2) Bhakti Yog: Emotional path; he feels that devotion alone will satisfy his psychological needs.

(3) Karma Yog: Action orientation: Cause and effect relationship. He takes right step. Does his duty religiously. Gita teaches karma yog.

(4) Raj Yog: Mystic experiences: Internal psyche brings in a change.

According to the pshyce of an individual, any one or a mix of the above-mentioned methods can be adopted to motivate an individual.

2. LAW OF PURUSHARTHA: According to this tradition, a person is motivated to satisfy fourfold Purusharthas or missions of life. They are Dharma, Artha, Kama and Moksha. The word Purushartha is derived from two Sanskrit words ‘Purusha’ meaning person, and ‘Artha’ meaning aim or goal. Therefore, the term Purushartha means aim of life or missing of life.

(1) Dharma: It is the rightful duty of a person. An individual is guided by his inner instincts to follow his Dharma. Also, one has to follows one’s ‘Swadharma’ which is beneficial to him as well as to the society.

(2) Artha: It is the pursuit of material wealth. However, Artha is only a means to achieve the ends, viz., to get comforts of life. But it must be remembered that Artha hopas to be acquired through dharmic means only. The most important thing to remember is that one should not have any attachment with money.

(3) Kama: It means ‘desire’. According to this, one’s desires (needs) must be fulfilled. However, one must keep desires to a minimum level so as not to miss the ultimate aim of life, which is to realise the soul within oneself.

(4) Moksha: It means ‘liberation’. It implies self-realisation which is the ultimate aim of a human being. It is the ultimate experience of union of self with the superme self. By obtaining Artha, through Dharma, one fulfills one’s Kama – desires and finally attains Moksha.

3. THEORY OF RIN: According to this theory, man is born to repay the ‘Rin’ (Debts) of all his past lives. This motivates a person to act in such a manner so as to repay these debts. Right from the birth, one is indebted to the following:

(1) Deva Rin: Here, Deva means all the Pancha Bhutas viz., Agni Dev, Varun Dev (Air), Vasundhara (Earth), Akash Dev, and Jal Dev. All living beings should be indebted to these five cosmic forces for their existence. They should repay their debt by preserving them.

(2) Rishi Rin: Our Rishis have given us great scriptures which have enriched our lives. Therefore, it is our duty to live our lives according to these thoughts. So also, we must spread the knowledge given in the scriptures.

(3) Guru Rin: Our teachers have taught us so many things in life and made it wonderful. Hence, we should feel indebted to them and repay these debts by using this knowledge. Also, we must respect our teachers.

(4) Pitru Rin: Our parents and grandparents have brought us into this world and gave us the value system which gives us peace. Therefore, we are indebted to them. We should do our best to look after them.

(5) Matru Rin: The word ‘Matru’ has double meaning. The first one is mother, who rears a child in her womb and brings him/her in this world and sacrifices her life for her children. The second one is the mother earth which sustains the life of all the living beings without any expectation.

(6) Bandhav Rin: Man is a social animal. Therefore, besides having good mental and physical health, he must possess a good social health. For good social health, one must contribute towards society’s improvement and peace. According to Indian ethics, we believe in ‘VASUDEV KUTUMBKAM’ which means that entire world is our family and therefore we must take care and love every human being in this world.

(7) Nrip Rin: ‘NRIP’ means the King. In the present context, it means the government. In this sense, we must be indebted to the government and be a law-abiding citizen.

(8) Bhuta Rin: According to this concept, a man is indebted to all his ancesstors who have died. Indians worship their deceased forefathers. For this purpose they perform ‘SHRADDHA’ a ritual, every year, to remember their departed forefathers.

Also, Indians believe that an indebted man cannot go to heaven, after death. Therefore, every Indian would like to repay all his debts, before leaving this world.

4. Ancient Technique of Motivation: According to this technique, there are four methods of motivation, viz., SAAM (Association), DAAM (Reward), DAND (Punishment) and BHED (Difference).

(1) SAAM: Man is social animal and he would like to be a part of the group to which he belongs. Therefore, a person can be motivated by the values, beliefs, ideology and lifestyle habits of the social and official groups.

(2) DAAM: Man can be motivated by offering rewards. Rewards should be such so as to satisfy the unfulfilled needs of an individual. These can be in terms of money or recognition, or both.

(3) DAND: Sometimes fear of punishment or losing a thing, may motivate a person to do a job.

(4) BHED: This technique believes in the method of ‘DIVIDE AND RULE’. Groups are created in the society and competition is set between them. This competition motivates the individuals in the groups.

Virtual Teams

A virtual team is a group of people who work for a common purpose but in separate locations. The concept of the virtual team has been introduced with the enhancement of technology. In these teams, people perform jobs in a virtual work environment created and maintained through IT and software technologies. The virtual team concept is relatively new to project management areas and IT. Most of the processes are outsourced in a virtual work environment. Since virtual team solely rely on electronic communication media, they work in different time zones and a variety of cultural boundaries. More diversified team members may work in a virtual team.

Virtual team management includes the following:

• Training: Team leader sets targets and develops the team member until he meets the standard level.
• Assembling: Probation periods are the measurable indicator to be applied when commencing with remote teamwork organization.
• Managing: Use of telecommunication technologies to manage ongoing projects and jobs of remote group members.
• Controlling: Team leader establishes performance indicators to evaluate the performance of team members.

Traditional Teams

A traditional team, also known as an intact team, is a functional team in which experts work together and share a common path to achieve their team’s processes and goals. In some cases, traditional teams are an entire department. Leadership is undertaken by a senior-level manager. New recruitments to the team are based on their technical skills and competency. Traditional teams mostly engage in described routine jobs.

Organization Structure: Compared to the traditional teams, virtual teams support flatter organization structure with dim lines of authorities and hierarchies. This is required to survive in hypercompetitive market, deliver results faster and encourage creativity which are actually the primary objectives for forming a virtual team.

Selection of Team Members: In case of traditional teams, members are largely selected based on their functional skills. But performing in a virtual team environment is not easy for everyone. Lack of face-to-face interactions and social focus in a virtual setting might lead to isolation and loneliness. It calls for managing ambiguity, proactive networking, exceptional time management and work discipline, ability to learn new technologies, and the ability to collaborate across functional and cultural boundaries. So, in the selection of a virtual team member, there is a need to look into these core competencies in addition to the basic functional skills.

Accountability

In a team-based organization, team members are accountable to each other, and to the team as a whole. This mutual accountability means that the entire team is responsible for its collective actions. This is the opposite of accountability at an individual level inherent in traditional organizations.

Although there are times when teams could have collectively performed better, lack of effort and accountability are rarely intentional. According to a February 2020 Harvard Business Review article, a team’s underperformance is most likely due to limited resources, ambiguity regarding roles, a poor strategy and/or unrealistic goals.

Leadership Style: In virtual team setting, managers cannot physically control the day-to-day activities and monitor each team members’ activities, therefore they need to delegate little more as compared to traditional teams. The command-and-control leadership style of yester years is giving way to the more democratic and coaching style of today.

Relationship Building: When traditional team members meet in the workplace every day they tend to develop close social ties with each other. They strike rapport with each other when they interact face-to-face. In the virtual team the interactions are tend to be more task-focused. Further, lack of verbal cues and gestures in virtual setting does not allow any scope for personal touch in the communication.

Psychological Contract: The foundation of psychological contract is more fragile in the virtual environment. Smaller instances of misunderstanding or gaps in communication result in violation of the psychological contract which has negative effects on the team’s effectiveness. Virtual teams also experience difficulties in building trust, cohesion and commitment among its members.

Knowledge Exchange & Decision-taking: Many a times in traditional teams, information is being exchanged during informal discussions. But in case of virtual teams, members have a very limited or no informal access to the information. Hence there is a need for more frequent updates on project status and building a shared database to provide all the important information to the team. Considering the time zone differences in global virtual teams, it becomes difficult to schedule meetings. Thus, in case of virtual teams many a times delay occurs in fixing a problem or reaching a consensus, whereas in traditional teams a meeting can be called at any time of the day when all the members are present together in the office, resulting quick decisions and problem solving.

Staffing for global operations is quite a complex affair. It involves activities on a global basis, including candidate selection, assignment terms and documentation, relocation processing and vendor management, immigration processing, cultural and language orientation and training, compensation administration and payroll processing, tax administration, career planning and development, and handling of spouse and dependent matters. In global staffing, companies need to choose from various types of global staff members and need to have specific approaches and strategies to global staffing. Global staff members are selected from among three different types: expatriates, host-country people and third-country nationals. Expatriate is a person who belongs to the country in which the organization is headquartered and not a citizen of the country in which the company operates. A host-country national is a citizen of the country in which the subsidiary company is located. A third-country national is a citizen of a country, but works in another country and employed by an organization headquartered in a third country.

Types of International Employees

International employees can be placed in three different classifications.

An expatriate is an employee working in a unit or plant who is not a citizen of the country in which the unit or plant is located but is a citizen of the country in which the organization is headquartered.

A host-country national is an employee working in a unit or plant who is a citizen of the country in which the unit or plant is located, but where the unit or plant is operated by an organization headquartered in another country.

A third-country national is a citizen of one country, working in a second country, and employed by an organization headquartered in a third country. Each of these individuals presents some unique HR management challenges. Because in a given situation each is a citizen of a different country, different tax laws and other factors apply. HR professionals have to be knowledgeable about the laws and customs of each country. They must establish appropriate payroll and record-keeping procedures, among other activities, to ensure compliance with varying regulations and requirements.

Selection Criteria of Global Staffing

Experts sometimes classify top executives’ values as ethnocentric, polycentric, or geocentric, and these values translate into corresponding corporate behaviors and policies. These values translate into three broad international staffing policies. The vital factors that affect Multinational enterprises (MNEs) staffing include strategy, organizational structure, and subsidiary specific factors such as its duration of operations, technology, production and marketing technologies, and host country characteristics such as level of economic and technology development, political stability, regulations and culture. Thus the philosophies of staffing abroad are ethnocentric, polycentric, regiocentric and geocentric.

Ethnocentric Staffing: In ethnocentric staffing, Parent Country Nationals (PCNs) are selected for key position regardless of location. Japanese, European, U.S and Korean firms utilise ethnocentric staffing. With an ethnocentric staffing policy, the firm fills key management jobs with parent country nationals. Reasons given for ethnocentric staffing policies include lack of qualified host-country senior-management talent, a desire to maintain a unified corporate culture and tighter control, and the desire to transfer the parent firm’s core competencies to a foreign subsidiary more expeditiously.

Polycentric Staffing: The polycentric staffing policy requires host-country nationals to be hired to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. Although home-country personnel fill top management positions, this is not always the case. For example, many US MNCs use home-country managers to get the operations started, and then hand it over to the host-country managers. Hindustan Lever Ltd, (HLL), the Indian subsidiary of Unilever, has local as its chiefs. Preference for home-country citizens for key positions does not fit into a pattern, unless government interventions dictate selection processes. In Brazil, for example, two-thirds of the employees in any foreign subsidiary traditionally had to be Brazilians. In additions, many countries exert real and subtle pressures to staff the upper management ranks with nationals. The polycentric approach to staffing has both merits as well as demerits. Hiring host country nationals eliminates language barriers, expensive training periods and cross-cultural adjustment problems of managers and their families. The disadvantages of the polycentric approach are equally strong. Local managers may have difficulty bridging the gap between the subsidiary and the parent company, because the experience and exposure they possess may not have prepared them to work as part of global enterprises. Language barriers, national loyalties, and a range of cultural differences may isolate the corporate headquarters staff from the various foreign subsidiaries. Finally, consideration of only home and host-country nationals may result in the exclusion of competent executives.

Regiocentric Staffing: With regiocentric approach, a firm’s recruitment for its international operation is done on a regional basis and the managers are selected on the basis of ‘the best in the region’ with international transfers that are restricted to regions. Regiocentric approach takes a somewhat larger operational view than that of polycentric approach as it covers a trade region like European Union and allowing managers to move between business units in various countries of the same region. In this staffing approach, a mix of Parent-country nationals, host-country nationals and third-country nationals can be used depending on the specific needs of the company. The regiocentric approach has recently become more popular as many multinational companies are choosing to organize in regional basis. One of the main advantages of this approach is that it reduces the need for costly duplication of support services. Most multinational companies regiocentric rather than truly international and majority of their sales and operations are concentrated on the region. When it comes to the corporate level, the regiocentric approach is may be limiting as ethnocentric approach as multinational companies are failing to understand the features of the regions outside of their home-region. The regional structure may also lead to the mergence of silo-mentalities as regional managers will be trying to hold and protect their top talent within the region rather than allowing them to develop outside their region.

Geocentric Staffing: This staffing philosophy seeks the best people for key jobs throughout the organization regardless of nationality. Seeking the best person for the job, irrespective of nationally is most consistent with the underline philosophy of a global corporation. Colgate-Palmolive is an example of a company that follows the geocentric approach. A geocentric policy is based on assumptions that, highly competent employees are available not only at headquarters, but also in the subsidiaries; international experience is a condition for success in top position; managers with high potential and ambition for promotion are always ready to be transferred from one country to another; competent and mobile managers have an open disposition and high adaptability to different conditions in their various assignments; and those not blessed initially with an open disposition and high adaptability can acquire these qualities as their experience abroad accumulates. The geocentric approach has merits and demerits. Among its advantages is the possibility of making the best use of its human resources and it enables the firm to build a cadre of international executives who feel at home working in a number of cultures. In addition, the multinational composition of the management team that results from geocentric staffing tends to reduce cultural myopia and to enhance local responsiveness. Thus, other things being equal, a geocentric policy seems to be the most attractive. Among the disadvantages, the restrictions imposed on staffing by host governments that a high number of their citizens are to be employed in subsidiaries, the increased training and relocation costs and a remuneration structure with standardized international base pay are the prominent.

Medium selectivity medium selectivity refers to the extent that a medium is directed towards the target Group. Medium selectivity can be represented by a selectivity index showing how well the target group is represented in the medium reach, relative to the universe:

Selectivity index = (% of the target group in total reach / % of the target group in the universe Selectivity index) * 100

Selectivity index < 100:

• The target group is under-represented.
• The vehicle is not selective on the target group.

Selectivity index = 100:

• The target group is proportionally represented.

Selectivity index > 100:

• The target group is over-represented.
• The vehicle is selective on the target group.

Goal approach:

The goal approach refers to optimal profit by offering the best service that will lead to high productivity. The limitation of the goal approach is that it is a bit difficult to identify the real goal and not the ideal goal

System-resource approach:

The system resource approach puts its onus on the interdependency of processes that align the organization with its environment. It takes the form of input-output transactions and includes human, economic and physical resources. The limitation of this approach is that acquisition of resources from the environment becomes aligned with the goal of the organization and thus it becomes quite similar to the goal-oriented approach.

Strategic Constituency Approach:

The strategic constituency model assesses effectiveness by measuring the degree to which it satisfies those in the environment who can threaten the organization’s survival; i.e., its strategic constituencies or interest groups. Each constituency has a degree of power and pursues different goals.

Constituencies can include owners, management, employees, customers, suppliers, government, and customer groups. Here, it is key to identify the relevant strategic constituencies, identify their expectations, and the way to meet these expectations.

Internal Process Approach:

The internal process model looks not at the outcome but at what happens inside of the organization. This approach assesses effectiveness through the smooth functioning of organizational operations. This is achieved through information management, documentation, and continuous consolidation.

The best-known example is the lean process approach, focused on continuous improvement and efficiency. The drawback is that the focus is often more on efficiency than on effectiveness and that the focus is more on inward processes than on outward opportunities.

Functional approach:

The functional approach assumes that the organization has already identified its goals, and now the focus should be upon attainment of these goals and how to serve society. The limitation of this approach is that the organization has the autonomy to take independent action for attaining its goals and so why will it accept serving society as its ultimate goal.

Process Consultation

The technique of process consultation is an improvement over the method of sensitivity training or T-Group in the sense that both are based on the similar premise of improving organisational effectiveness through dealing with interpersonal problems but process consultation is more tasks oriented than sensitivity training.

In process consultation the consultant or expert provides the trainee feedback and tell him what is going around him as pointed out by E H Schein that the consultant, “Gives the client ‘insight’ into what is going on around him, within him, and between him and other people.”

Under this technique the consultant or expert provides necessary guidance or advice as to how the participant can solve his own problem. Here the consultant makes correct diagnosis of the problem and then guides the participants.

The consultant according to E H Schein, “Helping the client to perceive, understand and act upon process events which occur in the clients’ environment.” Process consultation technique is developed to find solutions to the important problems faced by the organisation such as decision making and problem solving, communication, functional role of group members, leadership qualities. Consultant is an expert outside the organisation.

E H Schein has suggested the following steps for consultant to follow in process consultation:

(i) Initiate contact:

This is where the client contacts the consultant with a problem that cannot be solved by normal organisation procedures or resources.

(ii) Define the Relationship:

In this step the consultant and the client enter into both a formal contract spelling out services, time, and frees and a psychological contract. The latter spells out the expectations and hoped for results of both the client and the consultant.

(iii) Select a Setting and a Method:

This step involves an understanding of where and how the consultant will do the job that needs to be done.

(iv) Gather Data and Make a Diagnosis:

Through a survey using questionnaires, observation and interviews, the consultant makes a preliminary diagnosis. This data gathering occurs simultaneously with the entire consultative process.

(v) Intervene:

Agenda setting, feedback, coaching, and/or structural interventions can be made in the process consultation approach.

(vi) Reduce Involvement and Terminate:

The consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement.” The organisation benefits from the process consultation to ease out interpersonal and intergroup problems. To use the technique of process consultation effectively the participants should take interest in it.

Third Party

Activities designed and conducted by a skilled consultant to manage interpersonal conflict in the process of organizational change.

Team Building

Team Building is another method of organisation development. This method is specifically designed to make improvement in the ability of employees and motivating them to work together. It is the organisation development technique which emphasizes on team building or forming work groups in order to improve organisational effectiveness.

These teams consist of employees of the same rank and a supervisor. This technique is an application of sensitivity training to the teams of different departments. The teams or work groups are pretty small consisting of 10 to 15 persons. They undergo group discussion under the supervision of an expert trainer usually a supervisor. The trainer only guides but does not participate in the group discussion.

This method of team building is used because people in general do not open up their mind and not honest to their fellows. As they does not mix up openly and fail to express their views to the peers and superiors. This technique helps them express their views and see how others interpret their views. It increases the sensitivity to others’ behaviour.

They become aware of group functioning. They get exposed to the creative thinking of others and socio-psychological behaviour at the workplace. They learn many aspects of interpersonal behaviour and interactions.

Transactional Analysis

Transactional analysis helps people to understand each other better. It is a useful tool for organisational development but it has diverse applications in training, counselling, interpersonal communication and making analysis of group dynamics. Nowadays, it is widely used as OD technique. It helps in developing more adult ego states among people of the organisation. It is also used in process consultation and team building.

Benchmarking: Using standard measurements in a service or industry for comparison to other organizations in order to gain perspective on organizational performance. For example, there are emerging standard benchmarks for universities, hospitals, etc. In and of itself, this is not an overall comprehensive process assured to improve performance, rather the results from benchmark comparisons can be used in more overall processes. Benchmarking is often perceived as a quality initiative.

Balanced Scorecard: Focuses on four indicators, including customer perspective, internal-business processes, learning and growth and financials, to monitor progress toward organization’s strategic goals.

Business Process Reengineering: Aims to increase performance by radically re-designing the organization’s structures and processes, including by starting over from the ground up.

Cultural Change: Cultural change is a form of organizational transformation, that is, radical and fundamental form of change. Cultural change involves changing the basic values, norms, beliefs, etc., among members of the organization.

Quality Management: Focuses on ensuring the highest quality of activities to produce the highest quality of products and services to customers and clients. That includes diagnosing errors in the activities as well as recommendations and actions to avoid those errors.

Knowledge Management: Focuses on collection and management of critical knowledge in an organization to increase its capacity for achieving results. Knowledge management often includes extensive use of computer technology. In and of itself, this is not an overall comprehensive process assured to improve performance. Its effectiveness toward reaching overall results for the organization depends on how well the enhanced, critical knowledge is applied in the organization.

Management by Objectives (MBO): Aims to align goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. Includes ongoing tracking and feedback in process to reach objectives. MBO’s are often perceived as a form of planning.

Learning Organization: Focuses on enhancing organizations systems (including people) to increase an organization’s capacity for performance. Includes extensive use of principles of systems theory. In and of itself, this is not an overall comprehensive process assured to improve performance. Its effectiveness toward reaching overall results for the organization depends on how well the enhanced ability to learn is applied in the organization.

Program Evaluation: Program evaluation is used for a wide variety of applications, e.g., to increase efficiencies of program processes and thereby cut costs, to assess if program goals were reached or not, to quality programs for accreditation, etc.

Outcome-Based Evaluation (particularly for nonprofits): Outcomes-based evaluation is increasingly used, particularly by nonprofit organizations, to assess the impact of their services and products on their target communities. The process includes identifying preferred outcomes to accomplish with a certain target market, associate indicators as measures for each of those outcomes and then carry out the measures to assess the extent of outcomes reached.

Strategic Planning: Organization-wide process to identify strategic direction, including vision, mission, values and overall goals. Direction is pursued by implementing associated action plans, including multi-level goals, objectives, time lines and responsibilities. Strategic planning is, of course, a form of planning.

Systems-Based Model to Diagnose For-Profit Organizations: The model follows a logic model format, and specifies which management functions should be addressed and in which order. It is aligned with this online organizational assessment tool.

Total Quality Management (TQM): Set of management practices throughout the organization to ensure the organization consistently meets or exceeds customer requirements. Strong focus on process measurement and controls as means of continuous improvement. TQM is a quality initiative.

Systems-Based Model to Diagnose Nonprofit Organizations: The model follows a logic model format, and specifies which management functions should be addressed and in which order. It is aligned with this online organizational assessment tool.

Organizational development is a long term effort, led and supported by top management, to improve an organisation’s visioning, empowerment, learning, and problem-solving processes, through an ongoing, collaborative management of organization culture with special emphasis on the culture of intact work teams and other team configurations, utilizing the consultants, facilitator role and the theory and technology of applied behavioural science, including action research.

Some of the main technique, or interventions, coming under the OD umbrella are the following:

i) Role analysis

ii) TQM (Total Quality Management)

iii) Quality circles

iv) Assessment / development centers

v) Re-engineering

vi) Large-scale-systems change

vii) MBO (Management by Objectives)

viii) Team building

ix) T groups (also called encounter groups and sensitivity training)

x) Work re-design and job enrichment.

xi) Survey research and feedback

xii) Third party interventions

xiii) Quality of work life projects

xiv) Grid training

xv) Action research

Action research

Action research (Developed by Kurt Levin in 1947) is a core component of organisation development and an important tool of organisational analysis.

It is a process of systematically collecting research date relating to a specific goal, objective or need of the organisation, feeding the results back to the sources of the original data and planning further action based on discussion of the results obtained.

This may be regarded as an interactive process whereby the data is obtained, discussed and further refined before actions are jointly planned to meet the original objectives of the review. The key feature of action research is that it is a process that is continually being applied and re-tested until the desired results are obtained.

Organisation Structure Analysis There are a number of techniques that may be used to analyse the structure of organisations. The fundamental aim of the analysis is to determine whether:

• The existing structure supports the mission and strategy.
• The existing structure is appropriate to the needs of the organisation.
• It provides the most logical and cost-effective grouping of functions.
• The structure maximizes the people strengths in the organisation

One important step in creating a workplace that values diversity is training for supervisors and managers, as well as training for all employees. The other benefit of diversity training is that it may help reduce claims of discrimination or harassment.

Despite the unfavorable consequences inherent in the provision of multicultural supervision, supervisors who demonstrate multicultural competence in supervision may be able to mitigate the negative effects of cultural differences on supervision processes and outcomes. In particular, supervisors who demonstrate interest in supervisee cultural background, maintain a positive attitude towards cultural differences, openly discuss cultural differences in supervision, and convey warmth and support are capable of building a strong supervisory relationship with supervisees of a different race, gender, or sexual orientation.

Strategies

Mentoring

Mentoring programs can be of great help in bringing on nontraditional workers within a company. These mentoring relationships should be promoted as a voluntary arrangement, in which the mentee can identify her own preferred mentor. Once the pairing is in place, suggest ways in which the mentor can develop the relationship, and be clear about the goals the company desires from the arrangement, such as the identification of particular talents.

Diversity Training

Both supervisors and employees benefit greatly from specific diversity training in a workplace setting. This training should ideally explain the company’s policy on diversity and its aims in diversifying its workforce. It should also make employees think about viewing workplace issues from a number of different points of view. The course should contain specific information about the different cultures represented in the workforce. It should also confront stereotypes that individual workers may hold and should promote respectful discussion of issues surrounding diversity.

Flexible Schedules

Nine-to-five hours don’t always work best for employees with children or other domestic responsibilities. Instituting flextime or other solutions, such as telecommuting and job sharing, can help those workers be as productive as possible by allowing them to manage their other responsibilities efficiently.

Conflict Resolution

Just as managers may need help in adapting to a diverse workforce, so other employees may have to be prepared to see their colleagues in a new light. This may take longer for some workers than for others. For those who have difficulties in adapting to diversity, make sure that you have explained your expectations as a manager clearly and, if conflicts do arise, have a clear framework for conflict resolution explicit in your employee handbook.

Disability Accommodation

Managers supervising a diverse workforce must be prepared to manage disability needs in a sensitive and appropriate manner. It’s hard to predict disability accommodations ahead of time, as they will vary with each employee situation. Instead of viewing a disability accommodation as a disruption to the workplace, view it as an opportunity to allow that worker to contribute his unique talents fully to the company.

Points:

• It encourages a diversity of ideas and perspectives.
• Diversity recognizes, values, and respects differences.
• It helps the organization attract and retain high-quality employees.
• It promotes fairness and allows everyone to contribute to goals and to share in success.

Ethical decision-making is the process of evaluating and choosing actions that align with moral principles, values, and societal norms. It involves considering the consequences of decisions on stakeholders, upholding fairness, and respecting rights and responsibilities. Key steps include identifying the ethical dilemma, gathering relevant information, evaluating alternatives, and choosing the most morally justifiable option. Transparency, integrity, and accountability are essential to ensure trust and credibility. Ethical decision-making fosters a positive organizational culture, enhances reputation, and promotes long-term success. It requires balancing competing interests while adhering to legal and ethical standards. By prioritizing ethical considerations, individuals and organizations can build sustainable relationships, mitigate risks, and contribute to the greater good of society.

Basis for Ethical decisions Making:

• Moral Principles and Values

Ethical decision-making begins with moral principles and values that define what is considered right or wrong. These include honesty, fairness, justice, integrity, and respect. Decisions guided by these values help ensure that actions align with ethical expectations and promote the well-being of individuals and society. A decision rooted in core moral values is more likely to be universally accepted and respected. These principles act as moral compasses, helping individuals evaluate choices and choose those that reflect responsible and principled conduct, even in difficult or complex situations.

• Consequences of Actions (Utilitarian Approach)

One of the key bases for ethical decision-making is evaluating the consequences of actions, known as the utilitarian approach. This method focuses on choosing actions that result in the greatest good for the greatest number of people. It emphasizes outcomes—maximizing benefits and minimizing harm. Decision-makers consider how their choices will affect stakeholders and aim for solutions that generate the most overall happiness or value. While practical and widely used, this approach can sometimes overlook the rights of minorities or justify questionable means for achieving positive results.

• Rights of Individuals

Respecting the rights of individuals is another crucial basis for ethical decisions. This approach emphasizes that certain rights—such as the right to privacy, freedom, equality, and safety—must never be violated, regardless of the outcome. Ethical decisions must honor these rights and avoid using people as means to an end. This foundation helps ensure that each person is treated with dignity and protected from injustice. Even if violating rights benefits the majority, it is still considered unethical under this principle. It aligns closely with legal standards and universal human rights.

• Duty and Obligation (Deontological Approach)

The duty-based or deontological approach to ethical decision-making focuses on what one ought to do, based on rules, roles, or moral obligations, regardless of the outcomes. It asserts that certain actions are inherently right or wrong. For example, telling the truth is considered a moral duty, even if it leads to uncomfortable consequences. This approach is grounded in the belief that ethical decisions must be consistent, principled, and respectful of moral law. It is especially relevant in professions where ethical codes mandate specific responsibilities and standards of conduct.

• Justice and Fairness

Justice and fairness serve as an essential basis for ethical decision-making by promoting equality, impartiality, and fair treatment. This approach ensures that individuals are treated consistently and without bias, and that resources, rewards, and punishments are distributed equitably. Ethical decisions should not favor one group over another without valid justification. In business and governance, fairness in hiring, promotion, and customer service are key indicators of ethical behavior. Upholding justice helps build trust, reduce discrimination, and foster a more inclusive and ethical environment.

• Virtue and Character (Virtue Ethics)

Virtue ethics focuses on the character and moral integrity of the person making the decision rather than rules or outcomes. It asks, “What would a good or virtuous person do?” Virtues like honesty, courage, compassion, and humility guide behavior that is not only legally right but morally admirable. This approach encourages people to develop good habits and moral character over time. Decisions are judged based on whether they reflect and reinforce virtuous behavior. Virtue ethics emphasizes long-term moral growth and ethical consistency in both personal and professional life.

Process for Ethical decisions Making:

Ethical decision-making requires a structured approach to ensure fairness, accountability, and moral responsibility. By following a clear process, individuals and organizations can navigate complex dilemmas while upholding ethical standards.

1. Identify the Ethical Issue

The first step is recognizing that a decision has ethical implications. This involves distinguishing between personal preferences and genuine moral concerns. Ask: Does this situation involve fairness, rights, honesty, or potential harm? For example, a manager must identify whether favoring a friend for promotion over a more qualified candidate is an ethical issue or just a personal choice. Clarity at this stage prevents overlooking critical moral dimensions.

2. Gather Relevant Information

Before making a decision, collect all necessary facts, including legal requirements, organizational policies, and stakeholder perspectives. Missing information can lead to biased or uninformed choices. For instance, a doctor deciding on patient treatment must review medical history, risks, and patient preferences. Consulting experts or ethical guidelines (like corporate codes of conduct) ensures well-rounded understanding.

3. Evaluate Alternatives

Consider all possible courses of action and assess their ethical implications using principles like fairness, honesty, and consequences. Weigh the pros and cons of each option. For example, a company facing environmental concerns might evaluate alternatives like reducing waste, switching suppliers, or ignoring the issue. Tools like cost-benefit analysis or stakeholder impact assessment can help compare choices objectively.

4. Apply Ethical Principles

Use established ethical frameworks (such as utilitarianism, deontology, or virtue ethics) to analyze options. Ask:

• Which choice does the most good for the most people? (Utilitarianism)

• Does this action respect everyone’s rights? (Deontology)

• Would a morally upright person choose this? (Virtue Ethics)
  For instance, a journalist deciding whether to publish sensitive information might balance public interest (beneficence) against privacy rights (autonomy).

5. Make a Decision and Act

After thorough analysis, choose the most ethically justifiable option and implement it. Ensure the decision aligns with core values like integrity and accountability. For example, a business discovering a product defect should recall it despite financial losses, prioritizing consumer safety over profits. Acting decisively demonstrates commitment to ethical principles.

6. Reflect on the Outcome

After implementation, evaluate the results. Did the decision achieve its ethical goals? Were there unintended consequences? Reflection helps improve future decision-making. For instance, a nonprofit reviewing a fundraising campaign’s transparency can adjust strategies to avoid donor mistrust. Continuous learning refines ethical judgment over time.

Principles of Ethical decisions Making:

• Respect for Autonomy

Autonomy emphasizes respecting individuals’ rights to make their own informed decisions. Ethical decision-making requires acknowledging people’s freedom to choose without coercion. In professional settings, this means obtaining informed consent, maintaining confidentiality, and allowing individuals to exercise their judgment. For example, in healthcare, doctors must respect patients’ choices regarding treatment options while providing necessary information for informed decisions.

• Beneficence (Doing Good)

Beneficence involves acting in ways that promote the well-being of others. Ethical decisions should aim to maximize positive outcomes while minimizing harm. This principle is crucial in fields like medicine, education, and business, where decisions directly affect people’s lives. For instance, a company may implement workplace safety measures to protect employees, demonstrating a commitment to their welfare beyond legal requirements.

• Non-Maleficence (Avoiding Harm)

Closely related to beneficence, non-maleficence requires avoiding actions that cause unnecessary harm. Ethical decisions must assess potential risks and prevent damage to individuals or society. In business, this could mean rejecting exploitative labor practices, while in technology, it involves ensuring data privacy to protect users from misuse. The principle underscores the ethical duty to prevent harm proactively.

• Justice and Fairness

Justice demands equitable treatment and fair distribution of benefits and burdens. Ethical decisions should avoid discrimination and ensure impartiality. In legal systems, justice requires unbiased rulings, while in organizations, it means fair hiring practices and equal opportunities. Social justice extends this principle to addressing systemic inequalities, ensuring marginalized groups receive fair consideration in policies and decisions.

• Transparency and Accountability

Transparency involves openness in decision-making processes, ensuring stakeholders understand how and why decisions are made. Accountability means taking responsibility for outcomes, whether positive or negative. In corporate governance, transparency builds trust with shareholders, while accountability ensures leaders answer for ethical lapses. Ethical cultures encourage whistleblowing mechanisms to uphold these principles.

• Integrity and Honesty

Integrity requires consistency between actions and ethical values, while honesty demands truthfulness in communication. Ethical decision-makers must avoid deceit, conflicts of interest, and corruption. For example, financial advisors must disclose potential investment risks honestly, and journalists should report facts without bias. Upholding integrity strengthens credibility and fosters long-term trust.