Challenges of Organization Structure

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Challenges of

Organization Structure andProcedures in NepalBy

Pratap Kumar PathakSecretary, Ministry of Industry


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Welcome


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Organization Structure

Organization is a particular pattern of structure,people, tasks and techniques.

Structure is a formal system of task andauthority relationships that control howpeople coordinate their actions and useresources to realize and achieve organizationalstrategies, goals and objectives in course of influencing and satisfying the environment.


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D esigning Organizational Structure

Some important considerations in designing an effective organizationalstructure are:Clarity The structure of the organization should be such that there is

no confusion about people's goals, tasks, style of functioning,reporting relationship and sources of information.

Unde rsta nd i ng The structure of an organization should providepeople with a clear picture of how their work fits into theorganization.D e-cen tralizatio n The design of an organization should compeldiscussions and decisions at the lowest possible level.S tability a nd a d aptability W hile the organizational structure shouldbe adaptable to environmental changes, it should remain steadyduring unfavourable conditions.


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D ifferent Forms of Organization

Structure

Bureaucratic and Adhocratic Structures

Organic and Mechanistic StructuresProject StructureMatrix Structure

Network StructureVirtual Structure


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Classical and Modern Structure

Classical Structure Permanent Hierarchy Legal-rational authority Centralization of

authority and resources Formal relationships Rigidity and process-

driven Administrative

Modern Structure Team structure Networked relations Collaborative partnerships Group dynamics

Management of change Result-driven D ecentralized and

deconcentrated Virtual Informal relationships Professional competence Outsourcing Performing culture Participatory structure


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Factors D etermining OrganizationStructure

TechnologyEnvironment

MarketCulture and valuesInnovation


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Challenging Issues and Problems withOrganizational Structure

OvercentralizationEmpire buildingAuthority-focusHierarchical and absence of team-cultureD riven by complexities rather than performanceand changeProcess-drivenInefficient and resource consumingUnlimited liabilityResistance to change


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Key Challenges

D elivering better governmentAdapting technological changes

Achieving entrepreneurial qualityCompeting with the marketComplying with the global standardsManaging changesD eveloping performance cultureManage knowledge


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Organizational Effectiveness

External Resource Approach:External Resource Approach: Controllingexternal environment

Internal Systems ApproachInternal Systems Approach : Innovation andchange for better deliveryTechnical Approach:Technical Approach: Efficiency

Collaborative ApproachCollaborative Approach : Partnerships


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Influencing Factors for ReinventingOrganization Structure

GlobalizationEconomic liberalizationGood governanceTransformed role of the Government: FacilitatingEffective public service delivery

New public management movementPublic-private partnershipsSocial inclusionInformation and communication technologyParticipative governance and citizen involvementD ecentralization and local autonomyFederalism and state restructuring


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Requirements of a PerformingStructure

D ecentralizedPerformance culturePerformance management system

Customer-focusEfficient delivery systemTeam-basedResult-drivenCost-effectiveProfessional competenceCollaborativeHarmonizedContinuous improvement


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Attributes of an EntrepreneurialStructure

Market-drivenCitizen as customersInnovative

Performance-drivenResult-deliveryCompetitiveAnticipatingVirtualProactive and persuasiveD ynamic linkagesD ecentralized and deconcentratedManagement of changeResearch and development


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D ifferent Approaches to OrganizationalEffectiveness

Goal-attainment approach: Accomplishmentof specific/strategic goal

Systems approach: EnvironmentaleffectivenessStrategic constituencies approach: Satisfaction

of target audienceCompeting values approach: Incorporationand fulfilment of core values in a competitiveway


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D ifferent Models of OrganizationalRestructuring

Administrative Legitimacy ModelCritical Social Model


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Forms of Organizational

RestructuringStrategic restructuringOrganizational restructuring

Technological restructuringProduct restructuringBusiness restructuring

Human resource restructuringProcedural restructuringCultural restructuring


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Techniques of Organizational

RestructuringRightsizing

Outsourcing and contracting outEmpowerment of functional unitsSelf-managed teams

Networking


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New Public Management: Basis forRestructuring Organizations

(a) providing high-quality services that citizensvalue;

(b) demanding, measuring, and rewarding improvedorganizational and individual performance;

(c) advocating managerial autonomy, particularlyby reducing central agency controls;

(d) recognizing the importance of providing thehuman and technological resources managers

need to meet their performance targets; and(e) maintaining receptiveness to competition andopen-mindedness about which public purposes

should be performed by public servants asopposed to the private sector or non-

governmental organizations.


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W hat is a Procedure

A procedure is a series of related tasks thatmake up the chronological sequence and theestablished way of performing the work to beaccomplished.A procedure encapsulates a task composed of Step s (and possibly, Sub-steps ). Proceduresare usually performed sequentially, unlessindividual Step s direct the customer explicitly.


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Guiding Philosophy

EfficiencyEconomy

EffectivenessEquity and justiceUtility


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Achieving Procedural Effectiveness

TransparencyCost-effectiveEfficiency value

Process qualityStandardizationOutputs and resultsConsistency and

uniformityCustomer-focusContinuous improvement

InnovationD ecision making andproblem solving

Change managementEntrepreneurshipParticipativeFlexible

Coordinated andharmonized


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Citizen's Expectations

1.1. SpecificationSpecification :: W hat can I expect when I buy yourW hat can I expect when I buy yourproduct/service?product/service? - - QualityQuality

2 .2 . C onformanceC onformance : Is it what I expected?: Is it what I expected?3 .3 . R eliability R eliability :: D oes it continue to do what I expected?D oes it continue to do what I expected?4 .4 . V alue for Money V alue for Money :: How much do I have to pay?How much do I have to pay?5 .5 . E fficient Delivery E fficient Delivery :: W hen and how can I have it?W hen and how can I have it?

6 .6 . B ehaviour:B ehaviour: D esired behaviour of the deliveryD esired behaviour of the deliverypersonnelpersonnel - - Attitude, personality, cultureAttitude, personality, culture


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Quality D imensions of PublicQuality D imensions of Public

Service ProcedureService ProcedureT a ng ibility T a ng ibility -- appearance of physical elementsappearance of physical elementsRe liability Re liability -- dependable, accurate performancedependable, accurate performance

Respo nsiv ene ssRespo nsiv ene ss -- promptness, helpfulnesspromptness, helpfulnessA ssura nce A ssura nce -- competence, courtesy, credibility, securitycompetence, courtesy, credibility, securityEm pathy Em pathy -- easy access, good communications, customereasy access, good communications, customerunderstandingunderstandingS ta nd ar d ized S ta nd ar d ized -- quality, quantity, time and costquality, quantity, time and costCusto m e r satisfa ctio nCusto m e r satisfa ctio n -- acknowledging desired impactsacknowledging desired impactsIm prov ed se rvi ceIm prov ed se rvi ce -- reform measuresreform measures


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E-governance and Procedural

EffectivenessEE--governance is "the use of emerging information andgovernance is "the use of emerging information andcommunication technologies to facilitate the processes of communication technologies to facilitate the processes of government and public administration for ensuring efficiency,government and public administration for ensuring efficiency,economy, citizen satisfactioneconomy, citizen satisfaction

EE--government is intended togovernment is intended to transform the administrative process of government by usingtransform the administrative process of government by using

leading edge I Tleading edge I T to drastically improve the performance of governmentto drastically improve the performance of government

processesprocesses to provide highto provide high- -quality, lowquality, low- -cost administrative services tocost administrative services to

both citizens and businessboth citizens and business to employ multimedia technology to foster governmentto employ multimedia technology to foster government

effectivenesseffectiveness


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Effective StrategiesEffective Strategies

Delivering Better GovernmentDelivering Better Government Specification of service qualitySpecification of service quality

Consultation and participation of customersConsultation and participation of customers Quality information and advice to customersQuality information and advice to customers Horizontal and vertical integration of publicHorizontal and vertical integration of public

servicesservices Comprehensive system of measuring andComprehensive system of measuring and

assessing customer satisfactionassessing customer satisfaction Complaints and redress mechanismsComplaints and redress mechanisms


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Q uality Customer Service InitiativeQ uality Customer Service Initiative Clarity of service and structures for efficientClarity of service and structures for efficient

deliverydelivery Specification of standardsSpecification of standards Arrangements for service providerArrangements for service provider- -customercustomer

relationshipsrelationships Consultation mechanismConsultation mechanism Monitoring and reviewMonitoring and review Problem solving and reformsProblem solving and reforms


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P ublic Service Management StrategyP ublic Service Management Strategy EmpowermentEmpowerment Information systemInformation system Advocacy and sensitizationAdvocacy and sensitization


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P ublic Service Q uality CharterP ublic Service Q uality Charter StandardsStandards Openness and informationOpenness and information Choice and consultationChoice and consultation Courtesy and helpfulnessCourtesy and helpfulness Service with "smile"Service with "smile" Putting things rightPutting things right Value for moneyValue for money


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Strengthening P ublic Information System Extensive use of I T and multimediaExtensive use of I T and multimedia Service automation and computerizationService automation and computerization Generic office environmentGeneric office environment Effective monitoring systemEffective monitoring system Human resource management information systemHuman resource management information system EE--servicingservicing EE--procurementprocurement


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Any queries......


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Thank you

Challenges of Organization Structure

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