Organisations Form and Shape of them - THREE PILLARS

ORGANIZATIONS - THREE PILLARS:

Three decisions / pillars of Organisaions: 

A. How to organize ( the work / People / Things )  ?  Differentiation ------------Commonisation

( Division of labour, Differentiation, Complexity, Specialization, Integration, Corodination are the group of concepts related to this aspect).

B. How to organise the Power / Authority  ? De Centralisatization ---------------- Centralization

( Distribution of authority, Democracy, empowerment, People participation, Power closeness are the group of concepts related to this aspect ) 

C. How to regulate working  ?  By Standardisation  ----------------- By Socialization

( Hard systems, soft systems, Culture, norms are related to this aspect ).

Above THREE decisions leads to   ' Designing  Organisaitons ' . 

By manipulating these THREE  aspects are THREE knobs  one can model ORGANISATIONS.

Effective Managers use all the THREE KNOBS in right mix to create EXCELLENT ORGANIZATIONS.

Types of work systems : Craft Vs. Non craft ones

Here is a video of one  person who is making cricket balls.

 http://www.youtube.com/watch?v=V5AKrgwAm_A
 
This is model of CRAFT based work system. Given worker  does almost all the work ( A to Z )  involved in making cricket balls. Imagine how much of the following are part of this..

• How much the work is Commonised and Non Commonised ( Differentiated ) ?
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• How much of the work is Centralised - Decentralised ? 
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•  How much of the work is Standardised -  Socialised?  

Work shown in the film  is .... 

Not.. Specialized X Not.. Centralized X Not.. Standardized 

Work is Commonised because it  is not differentiated. One person doing complete 100 percent work is nothing but commonised. Work  is not specialized being done by many people doing many parts and aspects of it ..

Work  is Not  Decentralised .. Person who is doing the work has the right to do the work  or not to do the work.. He / she can call the shots related to work...There is no Centralisation..

Further,

the work  is not Standardised. The worker does what work he wants to do, when he wants to do , how he wants to do..

See the below given video.. 

One more You tube video most Specialised +  Standardised + Centralised working is given here - Denim Zeans Cotton making process in USA..

 http://www.youtube.com/watch?v=_KZWe0sYglc

Compare Meerut worker working video to that of Denim cotton making process in USA..

Compare the concepts .. Differentiation X Centralization X Standardization..


Organizations with... High degree of Differentiation - ( De) Centralisation - and High Standardization leads to

Excellence .... Efficiency X Effectiveness ..

Comment on the following ?

• Why Specialization leads to better results ? What is meant by specialization ? What are the consequences of specialization  in  organizations? What are the related concepts for specilizaion ?
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• Why Centralisation / Decentralisation leads to better results ? Which is better and why ? How do you overcome the challenges related to power distribution ?
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• Why Standardization / Socialization leads to better results ? 
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Are there any exceptions to the above THREE rules in operating modern day organisations?