ob project report_b2
TRANSCRIPT
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STUDY OF ORGANIZATIONAL DECISION-MAKING
ORBEES MEDICAL
Submitted By:
GROUP 2
Aishwarya Kumar (PGP/16/063)
Anirban Bhar (PGP/16/064)
Anusha Acharya (PGP/16/071)
Palak Bansal (PGP/16/097)
Pratik Agrawal (PGP/16/101)
Nimish Shah (PGP/16/110)
INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE
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OB Project Report_Group B2 Page 1
TABLE OF CONTENTSORBEES BUSINESS SOLUTIONS ...................................................................................................... 2
ORGANIZATION HIERARCHY & CULTURE .................................................................................. 4
KEY DECISION MAKER AT ORBEES MEDICAL............................................................................ 5
PROGRAMMEDDECISION............................................................................................................... 6
KEY NON-PROGRAMMED DECISION TAKEN............................................................................... 7
RECCOMENDATIONS ..................................................................................................................... 11
REFERENCE....................................................................................................................................... 13
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ORBEES BUSINESS SOLUTIONS
Orbees is privately held organization, which provides innovative informationtechnology solutions and medical consultancy services to higher education and non-profit institutions in the U.S. Canada, Western Europe, and India since 2006
Orbees is headquartered in San Francisco, Silicon Valley (Fremont, CA, USA) with a
global delivery center located in Hyderabad, India
Orbees IT Overview
Orbees acts as an extended organization of the IT departments of various highereducation institutions in the US and offers both products and services
Orbees Medical Overview
Orbees Medical provides consulting services to healthcare and medical companies who
wish to develop and market their therapies and medical technologiesOrbees Medical has in-depth clinical expertise and industry insights and assist insolving major business challenges that range from developing a portfolio strategy tocarrying out analysis of a new market segment for upcoming medical / healthcareinnovationsTheir clients include various biopharmaceutical and medical devices companies.Among these organization they worked with various groups which include Sales,Marketing, R&D, Intellectual Property, Portfolio Management, Strategy and Training
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Core Values
Delivery Models
Depending on the customer preference and project requirement Orbees uses acombination of onsite, offsite and offshore resources for effective implementation ofprojectsThe onsite resources directly interact with customer executive on regular basis and actas the connecting link between the offsite resources and customerThe offsite resources come into picture for the project execution and quality assurance
Orbees believes in continuous customer interaction and timely regular feedbacks
Employee Break-Up
CUSTOMERS
Best-valuesolutions andquality services tocustomers
Highest ethicaland professionalstandards
EMPLOYEES
Provide themopportunities forthem to reachprofessional andpersonal potential
Mutual respectand enjoyableworkingconditions
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ORGANIZATION HIERARCHY & CULTURE
No particular rites and ceremonies to establishes organization cultureRites and Ceremonies
Stories about how hardworking a particular employee is are used forbenchmarking performance
Stories and Myths
Power and promotion both based on merit and not on educationalqualification or experience
Power Relationships
All major strategic and new project decision taken by Mr. Ramesh
Day-to-day routine decisions taken by Mr. Anirudh and Mr. HareeshControl System
Organic structure with greater horizontal communication and fewerrules
OrganizationStructure
Open cubicles with no private cabins/offices
No dress code & Flexible working hoursSymbols
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KEY DECISION MAKER AT ORBEES MEDICAL
Orbees is an owner driven organization, with the co-founder and CEO, Mr, Ramesh makingall key strategic decisions as Orbees was completely funded Mr. Ramesh and he did notapproach any external venture capitalist for monitory assistance.
Risk Taking Attitude Goes by the principle of greater risk, greater returnsIntuitive Decision Making bounded rationality. If decision making would have beenparticipative, bounded rationality could be minimized
Autocratic Leadership Style
EXERCISE1. Logic2.
InnerKnowing
3. Data4. Felt Sense5. Facts6. Instincts7. Concepts8. Hunch9. Reason10.Feelings
The CEO of the company, Mr. Ramesh Surapaneni was asked to
select five words which according to him described his decisionmaking style
OVERALL SCORE: +1
The odd numbered attributes pertain to a linear decision
making style and the even numbered items pertain to anonlinear decision approach.A score of-3 to -5 means the approach to decision is intuitive
and a sum total of experiences and instinct of the decisionmaker. A score of +3 to +5 implies a rational, systematicdecision making style.Based on Mr. Rameshs score, his decision making style is amixture of intuition based on experience and a rationalapproach. This is common at senior management levels,where the problems are highly complex and there is little
tangible data to evaluate
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PROGRAMMEDDECISION
Main programmed decision of the company include
Release of Monthly Salary10th of every month
Reimbursement Policy for the Travel & Subsidiary Office Expensee-reimbursement sheet to be filled by the employees at the end of each monthe-reimbursement sheet goes to Project Manager for approvalPost the approval, amount sanctioned and credited to the employees account with 2-daysIn case of bigger expenses, employees can file the e-reimbursement sheet on the 15th
of the month to claim part/full expenseExit Policy
Standard 2 months notice period requiredExperience or relieving letter given only after the employee ensures smoothknowledge transfer to his successor
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KEY NON-PROGRAMMED DECISION TAKEN
Starting of Product Development Cell
Due to economic slowdown in US, incoming new IT services projects started drying upMr. Ramesh was looking for new business opportunityAt that time, he got a number of product development projects from his alma mater(UC Berkeley)He used Management Science Approach and did a cost/benefit analysis of thealternatives availableBased on Cost/benefit analysis it was discovered that it was more profitable to startProduct Development, using SaaS based/ subscription model, as it was more costeffective and likely to be preferred by customers
Followed Management Science Approach
Monitored the
market conditions &
defined the problem
looking for new
business
opportunity
Specified the decision
objective of expanding
business by two fold in
two years
Diagnosed theproblem
performed cost
analysis of providing
IT servicesDeveloped two
alternate solution Open only a
product
development cell
- Or run both the
offerings in parallel
Evaluated both thealternatives in
terms of which
provided greater
profits
Choose the best
alternative Creating
New Product
Development Cell
Implemented the
decision and
launched New
Product
Development Cell
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Decision to Launch Provent in India
Mr. Anurag and Mr. Ramesh realized that to ensure future sustainable growth of OrbeesMedical they would require full-time projects and not part-time need based smalluniversity projects
They faced the problem of obtaining long full-time projectsHowever, they did not have any clear idea on how to solve this problem an attract
customers who would appoint them as on-going medical consultantsDuring one of his international business tour, Mr. Anurag met Dr. Raj Doshi of VentusMedicalDr. Raj Doshi was the creator of a device named ProventHe wanted to launch the product in India and needed a full-time medical consultant whocould perform preliminary market research, gauge whether the Indian market is readyfor the product and if so then arrange for pan-India distributionHere, Mr. Anurag saw a business opportunityMr. Anurag and Mr. Ramesh together used the Incremental Decision Making Model toevaluate and make this decision of whether to launch Provent in India or not
Followed Incremental Decision Making Model
Recruitment Process
Initially when, Mr. Ramesh started Orbees Medical their main decision was to decide theemployee mix and set up a hiring process in place. They realized that to build their base as ahealthcare consultant they would require the right mix of doctors and pharmaceutical experts.Doctors would enhance the legitimacy and expertise of the organization. Pharmaceuticalexperts would bring the technical knowledge especially required during new product launch.
Rational ApproachKey Decision Maker - Mr. Ramesh Had clear understanding of the problemExplored various options searched for the perfect candidature via online jobportals as well as personal contactsSelected Ms. Surbhi after evaluating all the alternatives as the ideal candidate
Bounded Rationality ApproachDr. Anirudh who was the principal consultant left the organizationThere was time constraint and Mr. Ramesh found it very difficult to find areplacement for him
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So he made a quick immediate decision of hiring people with MBA+MBBS degree
Garbage Can ModelProblematic Preferenceo Ambiguity persisted in each step of the recruitment processo Adopted methods and solutions that were most imminent
Unclear TechnologyoNo set explicit database or SOP regarding the recruitment processoNo set explicit database or SOP regarding the recruitment process
Turnovero Attrition rate was high around 50% (industry average 35%)o Being a start-up, the compensation package offered was not that attractive so as
and when employees found better opportunity they left
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Breakdown of Relationship with BITS Pilani
Kalpana, - intern from BITS Pilani - highly unproductive - frequently misusedorganization internet - liability to organization. Her behavior was unacceptable atOrbees due to competitive culture.
Before her midterm review Kalpana made allegations against Mr. Vinod - senioremployee - inappropriate comments he had passed about her - previously shared
friendly rapport with him Mr. Vinod highly productive, valuable asset to organizationBITS Internship program Dean scheduled meeting with Mr. Ramesh to discuss issue asked to conduct enquiry
Sequence of Events
How Mr. Ramesh should have handled the situation:
Should have used CARNEGIE MODELMr. Ramesh should not have been involvedHis role should be restricted to making big strategic decision and using his expertiseand experience in getting new projectsCarnegie Model should have been adopted where a coalition team should have been
formed comprising of the principal consultants and the two senior consultantsThey know the real situation
They would have probably foreseen withdrawal by BITS Pilani and its negativeimplicationsBeing the alumni of BITS Pilani they would have been to salvage the situation in caseof withdrawal
They would have been able to compare the benefits of retaining Mr. Vinod vis--vis thedanger of the breakdown of relationship with BITS Pilani
Mr. Ramesh conducted internal inquiry tolook into the issue
- Spoke to Mr. Vinod
- Spoke to all employees, except Kalpana
Assured BITS Internship Dean that Mr.Vinod was faultless and the blame lay
upon Kalpana, who made the allegationsto avoid getting a bad grade in the
midterm review
BITS Internship Dean informed Mr.Ramesh that he was unsatisfied withOrbees stand on the issue and had
decided to blacklist Orbees from theinternship process
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RECCOMENDATIONS
Organization Strategy
Other Major Issues
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Proposed Organizational Structure
The main bottleneck is the vertical communication link between Dr. Anirudh and Mr.Ramesh.
Mr. Ramesh did have any direct communication link with the two senior consultantWe propose a decentralized structure where the the two senior consultant are promotedto principal consultant
The three principal consultant have power to make decisions for projects upto a bracketDecisions about bigger projects can be handled by Mr. RameshOther administrative work should be strictly handled by Mr. Hareesh and the PrincipalConsultant, unless its anything big
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REFERENCE
Mr. Ramesh Surapaneni, Co-Founder & CEO, Orbees MedicalMr. Hareesh Yalamanchili, HR Head, Orbees Medical
Mr. Anirudh Rathod, Principal Consultant, Orbees Medical