ADMAP QUERIES SOLUTIONS

11/23/2012

ADMAP Group Submission by Group 19

Group 19 Abha Ajmera Gitika Singh Abhishek Singh Atul Mishra Kushal Jalan Chandan Agarwal

ADMAP Queries Solutions

ADMAP Queries Solutions

PRESENTED BY GROUP 19
In today's world which consists of fast-changing business contexts, where mergers and acquisitions take place frequently, there may be instances where we are required to take decisions without having complete knowledge of the administrative context i.e. systems and structures. How do we function as effective administrators in such a context? Context is composed of systems and processes. When we formed this query we were focusing on the absence of the systems and processes in taking a decision. While interacting with FMB participants, one of the most prominent queries they said was the lack of information which is so easily available for big MNCs these days. Often the organizations they are dealing with do not reveal complete information or present something extra added to what is the reality. The Satyam scandal also points out that system, structure or process can be deceptive sometimes. When we asked this query to Vasant Sir, he aptly replied that if we take decisions in the light of incomplete knowledge of the administrative context, then the accuracy of the decision will not be very high. Correctly so, even Organizational behavior emphasizes that for merger and acquisitions and other highly interactive business activities, organizational culture (of which context is very important part) is very important. Decision taken in less knowledge may lead to incompatibility, loss of goodwill and various kinds of loses. So the question is what we can do? Our group on contemplating these issues came with a solution of observing the Body language of the company. The crux of lecture by Vasant Sir was that context helps in decoding the body language of the company. They help in understanding the psychology of the organization as well as how they are able to get things done. What our academic group suggest is how to understand the administrative context when the knowledge is not available. Decoding the context of the organization by observing it.

Behavior and Performance

The Christensen articles deals with the impact of structure, system and processes on the behavior and performance. In our guidance material regarding Vasant Sirs session we have been given the example of GE which gave stock options and its possible impact on the behavior of the employees. Then we also have TATA group and the contrasting leadership styles of JRD Tata and Ratan Tata. However if information regarding context is not available then we suggest a an action plan 1) Why is the context not available? Suppose the organization claims itself to be very transparent and very honest and the details regarding the methodology of few non confidential processes are not available on request, or no one is ready to talk about then the question is what type of organization it is? We can deduce it is the organization is

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ADMAP Queries Solutions

either not very clear with its own context or they are trying to hide them. If the organization is transparent with the processes but they are not coherent with the results which they are giving then again it requires us to do further analysis, whether the context provided is right as in, do they actually follow those processes and adhere to structure or do they suffer from leakages which renders the structure and steps of procedure useless. By leakages we mean compliance to the procedures and systems. For example a company may set up strict rules against bribery, however if they do not keep enough provisions for protection of these rules then they might be of no value. For example every company under Tata Brand name distributes Tata code of conduct to its employees which lays down some basic rules for the organization irrespective of domain or industry. Now Tata Organization has to select few high ranking officials who have the responsibility of compliance of the code of conduct as well as making sure that the organization is transparent enough and it encourages the employees to report any malfunction regarding the code of conduct. Steps like these make the system and process transparent and even if the organization will not reveal its complete administrative context the other stakeholders will be assured of its values.

2) What type of decision are we talking about? Another important factor which we realized was the type of decision we are taking. Suppose I am buying a packet of potato chips, now for that decision I do not need to know the financial statements of the company or its net income however if tomorrow that potato company gives me the proposal of starting a joint venture then the required level of contextual knowledge will be different. Further still if they propose to sell their organization to me the level required will be completely different. Hence it is important to know the type of decision we are taking. This level determines the amount of contextual knowledge that we require. So if the organization is not completely transparent but the information which is available is authentic and it is sufficiently high to take correct decision, then an administrator can take right decision.

3) Role of context specially in mergers and acquisitions and how can we be assured In our query of taking decisions we realized that mergers and acquisitions are one of the most important decisions where knowledge of systems and processes are very important. When the amalgamation is based on mutual consent then there is good chance that organizations will share the knowledge, however if a company is wants to be sure and administrator wants to be reassured of the correctness of the decision, he can form a alternative knowledge base of systems and processes through interaction with various stakeholders like employees, shareholders, vendors, public image as well as independent auditors associated with the company. These channels will provide him knowledge and he can form the administrative context. This can be compares to the system and processes which has been provided to them. The degree of coherence will form the basis of assurance and security. Low coherence can warn the administrator to do further

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ADMAP Queries Solutions

analysis or demand explanation or call off the deal. Knowledge of the administrative context is indispensible for taking correct decisions. However we do realize that seldom we get the ideal situation. So we suggest first measure the level of information which is required, talk to alternative channels, make your own deduction and compare with what is available. Alternative channels should be used and if situation demands then reverse analysis of results and behaviors can be used to determine the context.

We categorize schools and colleges into educational institutions but these days they are getting commercialized so would calling them an institution be right or wrong? An organization is an entity that exists for a predefined purpose. In a business context an organization can be termed as an entity that functions through a collection of processes, systems and people for the purpose of generating revenues or money. In a social context an organization can be defined as an entity that exists for the purpose of adding value to the environment and society. Thus a business like Google and an NGO like CRY are both valid examples of an organization. This brings us to the next step. When can an organization be called an institution? Is this differentiation dependant on whether an organization generates money and is commercial? What attributes need to be present in an organization for it to be called an institution? Answering this question will help us understand whether schools, colleges and universities which serve the purpose of providing education to the students, as well as generating revenue and income for its stakeholders can be termed as institutes or organizations. All institutions may start of as organizations i.e. they may be entities set up to fulfill a particular purpose. Over a period of time however if the organizations adopt a value system that is a belief about the right/wrong way of doing things in order to meet its objectives then the organization is said to have transcended into being an institution. For example let us consider two cases Case A: A management college A is set up to provide business education to students Case B: A management college B is set up to provide business education to students. Additionally the founders believe that the right way to do that society needs ethical managers and hence the students must actively participate in social activities. They also believe that students need to learn by doing. In case A the college stakeholders will do whatever is necessary to provide MBA education to students i.e. they will do whatever is necessary to meet its goal and purpose and hence case A is an example of an organization. In case B the college stakeholders are willing to engage only in activities that will allow it to meet its goal while confirming to their beliefs and values. Thus case B is an example of an institution. In the given scenario let us assume there comes a time when it is observed that a management college is able to provide better placements to its students and thereby attract more students by offering to teach them how to find loopholes in the stock markets and gain large returns. College A will quickly adapt this strategy because it believes in operational efficiency and following processes that help it meet its primary objective. But college B will resist any attempts to engage in such activities because while this change could help boost its student numbers and thus help it fulfill its objectives, the activity is not in line with its value system. Additionally if college A can be easily shut down, it is expendable if the

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purpose for which it was set up no longer exists. Nut college B is not expendable. It has a value system with which people relate to and thus all the stakeholders involved who believe in that value system will make the utmost efforts to keep the college alive. From this example we can see that organization transcend into being institutions by a. Having a value system or a set of beliefs that guides all its strategies and actions b. Consistently following the value system while responding to external and internal stimuli. By doing these things an organization follows Selznicks process of institutionalization and develops a distinctive character for itself. We can test whether an organization has become an institution by the expendability test i.e. if the organization has developed character then it will not be expendable and cannot be shut down and discarded easily. Additionally as organizations transcend into being institutes they become less flexible. As seen in the example, college A will adapt to any activity that will help it meet its goals but college B has certain processes and certain values that guide its actions and will thus face resistance when faced with changes that challenge its values. Both College A and College B earn revenues, make money but college A is an organization whereas college B is an institution. Thus schools, colleges and universities cannot be simply classified as organization or institutions based on whether they are commercial i.e. concentrating of making more money. In order to understand whether an educational entity is an organization or institution we need to observe the policy decisions taken by the entity and detect if there is an underlying value system that is guiding their policies, actions and reactions. If such a value system is detected then the entity can be called an institution but if no such value system is detected then the entity can be called an organization.

What according to you is an effective administrator's approach to working with people with different and sometimes conflicting management styles? Every individual is different and thus is it quite common to see managers having contrasting management styles in any organization. Therefore, it becomes important for an effective administrator to ensure that he takes a right approach to deal with people having different or conflicting management styles. First and foremost understands the environment in which the organization is working and what are the strengths and weaknesses of particular style. For instance both JRD Tata and Ratan Tata are successful but their way of working is totally different. What motivated this were the context and the variables. It is very important for the administrator to analyze the situation as well as the alternative solutions An effective administrator needs to have excellent communication and coordination skills. He should try to communicate well. This will make his directives clear and also provides a certain sense of focus to other team members on what is the requirement. He should at the same time be organized so that he can coordinate efforts smoothly. Giving sufficient thought process to each style will help in determining what is best for a particular situation. His communication skills will come in handy when facing obstacles and organizing strategic approaches. He should strive to keep a clear head and calm demeanor

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while delegating tasks and coordinating efforts. It is important to attract multiple and diverse opinions or ideas from key individuals before taking a particular decision. An effective administrator cannot afford to ignore the views of others and be tempted to stimulate the organization with only his own ideas. What his quality should be that among the various alternatives he should have the knack of selecting the choice which is more promising. A good example of this is the working of the ADMAP committees. Every individual in the committee has a different style of working and everyone has a different thought process. Thus, whenever a new agenda is discussed in the meeting, many divergent views or ideas are put forward. On many occasions the views are quite conflicting in nature and ensues heated discussions. But the faculty head of the committees as well as committee coordinators effectively manage the whole process by letting everyone put his/her thoughts in the meeting, facilitating qualitative discussions and reaching consensus on a particular agenda. An administrator should also possess the quality of selecting an alternative without offending others. That requires the art of explaining the thought process that went into taking the decision, the logic and importance of the decision with respect to context and at the same time possess effective listening skills. Body language gestures such as making eye contact to demonstrate that he is listening and he encourages the speaker to continue talking or elaborate on certain points. He should make his managers understand that the organization can consider only a certain number of proposals that emanate from the key people of the organization. As he goes on inviting and listening to the reactions, ideas and views of the key individuals and groups, he should to able to make a better assessment of what to accept and which management style to adopt.

Administrators should practice emotional intelligence and should be able to deal with conflicts or other issues that may arise,. For instance, an administrator should try to convey a message to others without displaying any bias through control on his own emotional reactions and filter out any irrational thoughts or inappropriate display of emotions. It is important for an effective administrator to stay calm and genial, especially in times of difficulty or conflict. This would help him in retaining the respect of those around him and also in leading by example. Conflicts are inevitable phenomena and are bound to crop up. Effective administrators should follow the following Conflict Management Styles, depending upon the circumstances, to resolve conflicts that may arise due to the clashing management styles: 1. Collaborating - I win, you win: By seeking solutions that satisfy both the parties. 2. Avoiding : Stay away from the issues over which the conflict is taking place. 3. Competing : I win, you lose: Overpower opponents by forcing them to accept their solution to the conflict. 4. Accommodating : I lose, you win 5. Compromising : You bend, I bend: Seek a conflict solution in which both sides gain something As we already know availability of rich and diverse styles of management proves to be advantageous for an organization. An effective administrator should be able to leverage this rich resource. He should identify and understand the different management skills people have in his organization and then try to
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match these skills to the different tasks or responsibilities. We would like to share an example about how the Managing director of the organization, in which one of our group mates worked, used to designate the task based on the management styles of the employees. It was a management consultancy firm and projects ranged from productivity improvement to process streamlining, training to system development for clients. Each project was undertaken by a team of consultants and every team was headed by a senior consultant. The company had 4 senior consultants and every one of them had a different style of managing the team and the project. One of the senior consultants always emphasized on numbers and meeting the target output- for example, increasing the productivity to a certain level. Another senior consultant emphasized both on the qualitative as well as quantitative output of the team. The Managing director always tried to map the right senior consultant with the right project. For instance, all the productivity improvement projects were usually allotted to the former and training or system development and implementation projects to the latter one. There were rarely any projects in which both the senior consultants worked together. Thus the managing director effectively designated the tasks and ensured that there is proper mapping between senior consultants and projects and that less of conflicts or frictions arose.

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