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At the core of Organization Direction is the concept of organization, defined as two or more people working together toward one or more shared goal(s). Direction in this context is the notion that an organization may become more effective over time at achieving its goals.
Organization Direction is a long range effort to improve organization's problem solving and renewal processes, particularly through more effective and collaborative management of organizational culture, often with the assistance of a change agent or catalyst and the use of the theory and technology of applied behavioral science. Although behavioral science has provided the basic foundation for the study and practice of organizational development, new and emerging fields of study have made their presence known. Experts in systems thinking, leadership studies, organizational leadership, and organizational learning (to name a few) whose perspective is not steeped in just the behavioral sciences, but a much more multi-disciplinary and inter-disciplinary approach have emerged as OD catalysts. These emergent expert perspectives see the organization as the holistic interplay of a number of systems that impact the process and outputs of the entire organization. More importantly, the term change agent or catalyst is synonymous with the notion of a leader who is engaged in doing leadership, a transformative or effectiveness process as opposed to management, a more incremental or efficiency based change methodology.
Organization direction is a "contractual relationship between a change agent and a sponsoring organization entered into for the purpose of using applied behavioral science and or other organizational change perspectives in a systems context to improve organizational performance and the capacity of the organization to improve itself".
Organization direction is an ongoing, systematic process to implement effective change in an organization. Organization direction is known as both a field of applied behavioral science focused on understanding and managing organizational change and as a field of scientific study and inquiry. It is interdisciplinary in nature and draws on sociology, psychology, and theories of motivation, learning, and personality.
The company Gobind Industries
Gobind Industries was founded in 1978 in Barabanki (INDIA), with the aim of providing farmers with Quality of Agriculture implements, at an affordable price, services, lower Horsepower (H.P). They now operate more than 100 stores in India. (Kushal Kumar Agarwal)
Gobind Industries offers Thresher's, Harrow, Cultivator, Razor, Reapers, Levelers, Rotovator, Trolley, and other small accessories.
Gobind Industries Vision
"To become a most successful and respected thresher company in the India and the best after sale service provider in the market."
Gobind Industries Mission
"We will provide high quality of product so that the consumer can easily use multi crop threshers."
1.1 Organizational direction
The direction is being given (told) to the people of an organization to achieve the organizational goals, mission, and objectives. It can be for a long term or it can be for a short term. These directions were made to achieve the organization profits. For that Strategic is being made.
1.2 Strategic Planning
Strategic planning is creating a vision of the future and managing toward
that expectancy. It's operating under a mission statement umbrella that focuses the organization's effort.Â It's an effective process for aligning your short-term decisions with your long-term goals.
Strategic planning answers the three big questions:
Where are we today?
Where do we want to be in the future?
What should we be focused on today, in order to make it more likely we will be where we want to be in the future?
It is a simple process with an incredible power to energize your organization and bridge the gap between long-term vision and day-to-day tactics.
Strategic Planning as per the Gobind Industries
Strategies are means to ends. Strategic planning is an organization process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), PEST analysis (Political, Economic, Social, and Technological).
(Bill Zalud, 2010)
Assessing Organization FinancialPerformance: - While making any strategy, firstly the organization looks towards his financial sources. That how much an organization can invest in particular strategy. In simple words budget is being maintained to achieve their goals that too in profit.The Organization check his last five years financial performance so that much they can invest in the strategy which doesn't affect the working of the company, if the strategy is for long term period.
This financial performance can be assets while working on the strategies, in broad terms how effectively the organization is doing so. This is the only way to know if the strategy is of a low cost carrier.
Strategic Methods: - The major strategic methods available to an organization is
(a) Mergers and acquisitions: - As the Gobind Industries manufactures a agriculture product, so to increase its sale and as well as capturing new market they are going to merge with the tractors manufactures which increases his sale as well as new market, because the customer who is going to purchase tractor then he/she must be required agriculture tools which fits in the tractor, it helps the both companies "the tractor manufacture and Gobind Industries" to supply more in quantity while earning good profit.
(b) Internal development: - Strategy can be made for the internal development also, it can be in the office development, internal environment, at the manufacturing unit, in marketing or technically. Which is going to help to reach out the organization goals.
(c) Reducing the level to competition: - If the organization works on mergers and acquisition and internal development then it is easy to reduce competition in the market.
Strategies in Profit-Making: - In this company makes strategies how to earn profit for the company as well as for its shareholders at the particular period of time and for long-term period.
Strategies in International Market: - Like in future company would to sale there product in the International Market, for that they had make strategies as per the International Environment. In which countries the company products are going to sell, which competitors are already exist over there, there customer demand, types of product for particular area, trend etc. the company had to study every single point to reach there strategies.
Strategic plan for marketing is
Target Market: - As per the Gobind Industries the target market is for two types i.e. Direct and Indirect
Direct: - The customers to whom they are going to deal directly that is known as business to customer target.
Indirect: - In this the company is going to deal with the dealers, agents, banks, suppliers these are known as a business to business market.
Position: - It's within the market in terms of product, price, and channels of distribution.
Sales Promotion: - How to promote our sales in the market in terms of
Advertising, road shows, banners, leaflets, coupons etc. which increases the sale of the company which helps to achieve its goals and aims which had been made by the top level management.
"Those individuals or groups who depend on the organization to fulfill their own goals and on whom, in turn, the organization depends."
(Johnson & Scholes, 2002)
Stakeholders are those people who are directly or indirectly affecting the organization in any terms, it can in profit or losses.
Stakeholders as per Gobind Industries and their influence on the Organization are
Board of Governors: -They is the key players of the company, who makes the strategy for the organization to reach their goals.
Customers: -They was known as client, buyer, or purchaser, is usually used to refer to a customer or potential buyer or user of the products. Their influence on the organization is more as compare to others because customers are those persons to whom we sell our final product and from them we get profit and as well as from their money whole organization runs, if we cannot satisfy them then our organization cannot run for the longer period.
Suppliers: -They supplies the raw material to the organization, so that the organization can made their finished product. There influence in an organization is that if they are not providing raw material of a good quality or on time then it will be difficult for the organization to sell there product and there brand image also effects a lot.
Dealers/ Distributors: -They is the most similar as the customers, they also purchase our product but in a huge quantity at there own risk, which helps the organization turnover, mostly they are the peoples who create brand image in the market of the organization.
Employee: -They is the assets of the organization, who works for the organization to achieve the organizations goals on time.
Competitor: -They is that organization that manufactures the same product but some different style. They always influence us in case selling the product, market capturing etc. in ways.
Expectations and Conflicting of the Stakeholders against the Company
Job security, Job satisfaction, a fair wages and a good working environment.
Salary is being not paid on time, overtime daily, no job security
Good quality of product at a lower price and needs a good after sales services
Some fault in the product, doesn't listening the complaints on time as they promise while selling the product
Needs a supply of goods on time and services too with a good quality
Supply of goods not in time due to heavy demand in the market
Higher orders, timely payment, no complaints
Complaints are there by the customers
Sales should be less, brand image should be lower than them, they should shut there businesses
Sales are more, brand image is much better than others
1.4 Power and Interest Matrix
It tells how much Interest and power of the stakeholders is there to achieve its goals and aims. While using power and interest matrix we can calculate that which shareholders Interest is high and low or power is high and low or both.
1.5 Organization Culture
When any group of people live and work together for any length of time, they form and share certain beliefs about what is right and proper. They establish behaviour patterns based on their beliefs, and their actions often become matters of habit, which they follow routinely. These beliefs and ways of behaving constitute the organization's culture.
It has been described, for example, as 'the dominant values espoused by an organization', 'the philosophy that guides an organization's policy toward employees and customers', 'the basic assumptions and beliefs that are shared by members of an organization'. More simply culture has been referred to as the 'way things are done around here'.
Major influences on culture
A problem stemming from the definitions of culture we have looked at is that they do not provide a structured approach to analyzing the culture of an organization. However, Robbins suggest that we can identify ten key characteristics which influence an organization's culture
Individual initiative: - the degree of responsibility, freedom and independence that individuals have.
Risk tolerance: - the degree to which employees are encouraged to be aggressive, innovative and risk-taking.
Direction: - the degree to which the organization creates clear objectives and performance expectations.
Integration: - the degrees to which units in the organization are encouraged to operate in a coordinated manner.
Management contact: - the degree to which managers provide clear communication, assistance and support to their subordinates.
Control: - the degree of rules and regulations, and the amount of direct supervision, that are used to oversee and control employee behavior.
Identity: - the degree to which members identify with the organization as a whole rather than with their particular work group or field of professional expertise.
Reward system: - the degree to which reward allocations (i.e, salary increases, promotions) are based on employee performance criteria.
Conflict tolerance: - the degrees to which employees are encouraged to air conflicts and grievances openly.
Communication patterns: - the degree to which organizational communications are restricted to the formal hierarchy of command.
It provides a framework for analyzing the culture of any organization.
Impact of culture on the organization
"In organization, there are deep-set beliefs about the way work should be organized, the way authority should be exercised, people rewarded and people controlled."
(Acc. to Charles Handy)
When executives articulate and publish the values of their firm, which provide patterns for how employees should behave.
Eg: - If I am not going to submit my assignment on given prescribed time, and faculty doesn't ask me or I submitted my assignment late then next time also I am going to do same, while looking to me other guys also started submitting there assignments late, then slowly-slowly the same process is going to beconverted into habit then culture in college of submitting late assignments.
In my work place the culture of speaking with the customers in Hindi, therefore for selling the product we required a salesperson those can speak good Hindi which helps the customer to understand the product properly, which will be beneficial to my organization, if I am going to keep those sales person who speaks in English then there is no use of it, but in India after every 14 miles language changes, so for dealing in the market we had to keep that employee who can speak at least three to four different languages. So therefore the cultural impact on the organization is very much, while making any strategies we had to keep in mind about the culture.
Impact of culture on the Individuals
Culture affects the environment of the organization that affects to the individual how to work in the particular place.
Eg: - In India colleges or in school we had study something by our self then we moves to "Library", but in England the Library is being known as "Learning Centre", some how it impact to the Individual. The individual had to adopt the culture to survive for the particular job.
1.6 Forecasting The Environment
"Those who know why changes come waste less effort in protecting themselves or in fighting the inevitable."
Therefore it is important for organization to be strategically aware, for the awareness there are two levels of forecasting the environment i.e
Micro Environment: - All those organization and individuals who directly or indirectly affect the activities of the organization.
Macro Environment: - It comprises general trends and forces that may not immediately affect the relationships that a company has with its customers, suppliers and intermediaries but, sooner or later, macro environmental change will alter the nature of these relationships.
1.7 SWOT Analysis
SWOT Analysis: - It means the strength, weakness, opportunities and threats of the organization. While using this analysis the organization can easily came to know about their strength of an organization, that what all is their strength it can be in terms of assets, after sale services etc., same with the weaknesses, opportunities and threats.
SWOT Analysis as per the Gobind Industries
Strength: - Brand Loyalty, Quality Product providing, after sales service, product of a high quality at a lower rate.
Weakness: - Less Production, Less fixed assets, poor marketing, poor advertising.
Opportunities: - Expanding the organization it includes the assets and labor forces, Innovation, New product development, back up hand for the financial resources and as well as for the new product.
Threats: - Competitors, Government, Media, Suppliers, Weather, Dealers, Sales, Subsidies, and Stocking.
1.8 PESTLE Analysis
PESTLE Analysis: - This analysis the organization is being measured in terms of macro environment, in this political, environmental, social, technological, legal and economical factors affects the organization.
As per my Organization
Political factors: - Local government, Central government, Green and environmental issues.
Environmental factors: - Global warming, Government guidelines, recycling, energy use, culture change
Social factors: - Demographics, lifestyle, education, trend, social values, fashions.
Technological: - Communications, product advances, new product methods, Information technologies, and personal computers.
Legal factors: - Employment Law, health and safety law, consumer law, Government policy, litigation, and competition commission.
Economical factors: - Inflation, Interest rates, taxation, level of unemployment, income distribution and exchange rates.
PESTLE- Strategic Analysis
Timeline (months) Short (0-6), Medium (7-12), or Long term (13+)
High, Medium, Low, Undetermined
Action to take
Meeting trading laws
Obeying the laws
2.1 Recommendations to improve Strategic Planning Process
As a leader of an organization, firstly I am going to study the past details about the organization, those will be the strategies which is being made by the organization in the past years, those strategies is being achieved on time or not, if not then what is the reason behind it and if yes then what all the benefits we get out of it, it is beneficial for the long term period or not.
The strategy means "a courseof action, including the specification of resources required, to achieve a specific objective.
(CIMA Official Terminology)
Army at war
Strategy to achieve objective
Army at war means the organization is in the market, and you had to make your own strategies so that you can defeat your competitor in the market and as well you achieves your goals and objectives, while giving a sense of purpose and direction to the organization.
In the year 2007, 08, 09 the target of the sale of Gobind Industries were as follows
Vertical numbers are the corers (Rs.)
As we can see in the chart that in 2007 the target of selling the product (threshers) was near to 20crore and achievable by 19crore, but in 2008 the target was something around 25crores but in that year the target had been achieved and its goes more than that, in that particular year the weather was excellent, due to that the demand was more than the expected figure, but in 2009 again we fall down. It means that there is something that the organization is failing in the strategy.
While knowing about the details of 2009, it's about the marketing strategy, where organization falls back. The strategies for achieving those goal and objectives, I am going to make a team of 20 people including the senior staff those who were working for the organization from last 5 years. Dividing them into four major groups, giving them the training about the product with the help of senior people. In every group one senior member is going to be there which is going to handle the respected groups. Just sending them into the market for the searching out the details of market and capturing new areas. They four them is going to cover each zones that is north, south, east, west. As in 2009 we cannot capture the whole zone due to the failing in the marketing strategies.
As in 2010 the target of sale will be more than 50crore because as the marketing is being done for the all zones the demand is going to be more and these strategies is for one year. The brand image in the market is much better than others due to one of the best service provider in the market. For this the back up plan is also being made so that if it seems that the organization is failing to achieve the target then we can cover with the help of back up plan. It can be the push and pulling strategy.
2.2 The Key Areas for Improvement
Production and Assets
Satisfying the consumers
Production and Assets: - As the demand of the product is more than the supply, for fulfilling the needs and wants of the consumer, we had to raise our production. That can be done by recruiting workers or by making assets in terms of machinery. I am going with both of it because both of them are the assets of the organization it can be directly or indirectly. The question arises that while getting both the cost of production rises suddenly, rightly said but this is not only rising up the cost but it is also helping the organization in terms of quality and much better production than before. As well as if I go with the machinery only, then for that also a worker needed to run that particular machinery and if we bring both then the production raises around 8% and cost for per product rises around 2.5% then also the organization is going to be in profit, because at least they were not loosing their consumers at the peak time period.
Advertising: - The main source to increase your sale and helps for introduce new product in the market and as well as advertising reminds the customer about the brand in the market. Therefore for increasing the sale of the organization as the increase in the production the advertising is must, therefore at the time of marketing the leaflets can be distributed, the road shows can be done, from one villages to another villages advertising can be done, because there is no use of advertising in the media because in India there are many channels, secondly there is problem of electricity in rural areas. The company can goes for the coupons that attracts the new customers and as well as old customers for new product. Posters can be pasted; the advertising can be given in the "Government Agro Company".
Satisfying the consumers: - In this, always improvement is needed, due to the market-changing environment. Firstly consumers needs the product at a lower rate with a good quality, then he goes for the services it can be after sales service or sales person dealing with consumer in which manner, what all the services is being provided to the consumers while selling the product.
After improvement and making the strategies and working on it, the feed back is required and the revision is also required so that while making strategy and following the strategy, any changes occur in the macro environment due to which some changes is being made in the strategy, so that the organization doesn't loose its achievements and goals and objectives. The plan is that the strategy is being made for a year, so it should be revised by every three months, which helps the organization to know till where we achieved our goals.
The recommendations for future development is that with in three years, we should enter into the international market, means that we can starts with the export business and as well as for the financial back up, the organization should starts with new organization which should be differ from this line. They should choose those line from where they can earn profits always, those businesses are going for education line. This is the best line from where you are going to earn profit, if in any year the crops doesn't grows in the market due to bad environment then the organization product is going to be stock for next year which can take company to looses for covering that losses, the company can go for the profitable business. .
Purposes: The organization member are clear about the organization's mission and purpose and goal agreements, whether people support the organization's purpose.
Structure: How do we divide up the work? The question is whether there is an adequate fit between the purpose and the internal structure.
Relationship: Between individual, between units or department that perform different tasks, and between the people and requirements of their job.
Rewards: The consultant should diagnose the similarities between what the organization formally reward or punished for doing.
Leadership: Is to watch for blips among the other boxes and maintain balance among them.
Helpful mechanism: Is a helpful organization that must attend to in order to survive which as planning, control, budgeting, and other information systems that help organization member accomplish.