keys to organizational excellence

- RASIKA R SALODKAR M14087 (HR BATCH)

Keys to Organizational Excellence

Concept

ORGANIZATIONAL EXCELLENCE

Excellence = Surpassing or outstanding achievement Forms of Human excellence:

1. Being best amongst the competitors ( excellence associated with the champion)2. Excellence of the perfectionist ( Doing much better than what one could in the

past)3. Performing far better than the general standard in a field4. Performing and succeeding at a difficult task that can be accomplished only

after a long haul5. Pioneering ( Doing something unique, something no one has done before)6. Invention or Innovation 7. Creative excellence 8. Altruism

Excellences are not cost free Human excellence is manifested through individual effort and team effort both Organizational design for excellence is a matter of promoting individual and group

level excellence and synchronising it to facilitate excellence in achieving organizational level goal

Forms of Organizational Excellence

ORANIZATIONAL EXCELLENCE

1. Champion-type organizational excellence OR Competitive Excellence ( The best performance in a competitive field during a particular period )

2. Rejuvenatory Excellence ( Sick organizations which have dramatically improved their performance)

3. Institutionalised Excellence ( Sustained high corporate performance over a fairly long time )

4. Creative Excellence ( Uniqueness, pioneering spirit and innovativeness)5. Missionary Excellence ( Altruistic or social change oriented voluntary

organizations)6. Versatile Excellence (focuses on its performance in terms of profitability,

growth or efficiency and also on the satisfaction of the needs of its staff, on meeting its social responsibilities, and commitments to other important stakeholders )

“EXCELLENT ORGANIZATION: ONE THAT MEETS ALL THE NEEDS AND EXPECTATIONS OF ITS STAKEHOLDERS”

Needs


Type of Excellence Why we need it?1. Competitive Excellence To increase the adaptability, market orientation

and resourcefulness of Third World organizations to reach the levels of global efficiency

2. Rejuvenatory Excellence To avoid the sickness proneness of sizeable Third World organization

3. Institutionalized Excellence

Needed where the whip of competitive pressure is weak or where the top management continuity is problematic

4. Creative Excellence For innovative and fresh approaches in many ossified spheres of the Third World

5. Missionary Excellence To accomplish vast social or economic missions in the context of Third World backwardness

6. Versatile Excellence For those organizations who have numerous stakeholders and pursue many different goals


Types of ExcellenceHeading/ Type

Competitive Excellence Rejuvenatory Excellence

1. Chief Characteristic

Being outstanding within a field of competitors vis-à-vis a clear-cut criterion or a few clear-cut criteria of performance

Vast improvement over previous performance

2. Example The company with the best or outstanding return on investment within an industry

The company which goes through a bad patch for a long time and then progresses

3. Must Haves • Clear-cut goal and strong management commitment to excel at them

• Tight control over operations and coordination of activities through team work

• Excellent monitoring mechanisms for operations

• Strong high energy leadership that galvanizes the organization and leads from personal example

• Quick pay-off actions• Great deal of internal

communication• Negotiations with

external stakeholders


Types of Excellence

Heading/ Type Institutionalised Excellence

Creative Excellence

1. Chief Characteristic Sustained high achievement over a long period of time on important performance parameters even when there is little pressure for excellence

Commitment to pioneering, innovation, experimentation, discovery and dynamic change

2. Example General Electrics, one of the original 12 of the NYSE

Google and Apple are the best examples

3. Must Haves • Institutionalism of good management practices

• High order of professional management

• Top management continuity and orderly succession

• A leadership rooted in expertise, competence and creativity

• Desire to dazzle the world with something breathtakingly new

• Meteoric rises for people with fresh ideas


Types of Excellence

Heading/ Type Missionary Excellence Versatile Excellence1. Chief Characteristic

Dedication to some social mission or ideal and the ability to make outstanding progress in achieving this mission or ideal

Desire and ability to meet the expectations of all the significant stakeholders of the organization and management should think as a trustee

2. Example Blind Men’s Association, Being Human Foundation, etc.

Governmental organizations or large scale private organizations

3. Must Haves • Altruistic goals• Limited resources• Idealistic leadership• Decentralized and

participative decision making• Very strong identification with

the organization’s clientele

• Multiple goals• Seek reasonable

profitability• Good growth rate to

create opportunities for growth for its staff and managers

• Good customer service

Commitments and Excellence


Four polarities of commitments:1. Commitment to a few versus many stakeholders2. Commitment to the short run versus to the long run3. Commitment to the organization itself versus commitment

to a larger entity4. Commitment to a novel versus to familiar means of

functioning

Studies of Organizational Excellence


1. PAUL’S STUDY• Studied 6 large, successful developmental programmes in a s many countries• Findings:

a) Successful programmes invested heavily in a learning strategy, earning credibility and acceptance

b) Organizational structure needs to be flexible and to adapt to the overall strategy for programme success

• Learning strategy: Started with one goal and later diversified their goals and activities sequentially and in a phased manner

2. GANESH’S STUDY• Studied 6 Indian academic (management) institutions to find out the

relationship between institution building processes and the performance of the institution

• 3 criteria for assessment: How successful they had been in developing capability appropriate to their missions; how innovative their thrust had been and what sort of an impact they were able to make through their ‘market’ penetration



2. GANESH’S STUDY (CONTINUED)• Ganesh categorised institution building process into birth process, start up

processes, development processes, renewal processes, institutionalisation processes

• Stronger the processes, better the overall performance of the institution• Different group of processes contributed to excellence on different

performance of the institution

3. PETERS AND WATERMAN’S STUDY• Identified 43 U.S. companies having a fine track record over 1961-1980 • Executives from these companies were interviewed to understand the

better sorts of management practices that contribute to corporate excellence in many organizations

• Eight characteristics of excellent corporate management: Bias for action and aversion to excessive analysis; being close to the customer and emphasis on learning from customer; autonomy and entrepreneurship; productivity through people, the treatment of rank and file as the root source of quality and productivity; hands-on, value driven management; stick to the knitting; simple organization structure and systems and lean staff at the corporate headquarters and simultaneous loose-tight properties.



4. KHANDWALLA’S STUDY• An Indian study of 75 mostly corporate organizations• A dynamic model of management ‘Pioneering-Innovative’ or PI mode was

identified• High scoring managements had an entrepreneurial – organic mode of

management

5. MAHESHWARI’S STUDY• Studied the decision-making styles of a dozen Indian Corporates, half in

the public sector and half in the private sector• Decision styles were related to organizational performance through

questionnaires• High scores: Management committed to decentralisation, operating

autonomy for the managers, a consultative leadership and group decision making

• Low scores: Centralised, autocratic mode of management



6. JAIN AND ANSARI’S STUDY• Identified 29 first generation entrepreneurs of India• Many used two managerial thumb rules:

1. Select a product line which is best suited to one’s own educational and work background and choose a factory location where family linkages are very sound

2. Emphasis on development of indigenous technology; emphasis on research and development; initiating the building up of management know-how by the entrepreneur initially handling everything from production to marketing to office work; etc.

7. MANIMALA’S STUDY• To examine how pioneering and innovative (PI) entrepreneurs differ from non-

PI entrepreneurs in the decision rules or ‘heuristics’ they use in running their business

• 164 Indian cases were studied and an index for innovativeness was developed• The study indicates alternative sorts of management in competitive domains;

one that goes for exclusive niches through innovation and the other that seeks survival and growth in familiar terrains

Leadership and Organizational Excellence


1. Likert’s Study2. Bowers and Seashore’s Study3. Bennis and Nanun’s Study4. Singh and Bhandarkar’s Study5. Woycke’s Study6. Hall’s Study7. George’s Study8. Khandwalla’s Study


Studies examining the relationship between professional management systems and practices and organizational

performance

1. Negandhi and Prasad2. Thune and House3. Enthemkuzhy

Studies on good fit between components of organizational design and features of the operating context

4. Lawrence and Lorsch’s Study5. Child’s Study6. Khandwalla’s Study (1)7. Khandwalla’s Study (2)8. Miller and Friesen’s Study

keys to organizational excellence

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