THEORETICAL FRAMEWORK ORGANIZATIONAL DESIGN

If one takes a closer look at various organizations, they appear to be as diverse and unique as different species. Some organizations have a large number of hierarchical levels, while others have just three or four; in some organizations all major strategic and operational decisions are taken at the top level, while in others, decision making authority is decentralized down the line or, some organizations encourage working in a more routinised and regimented way as compared to many others. Similarly, organizations also differs in terms of size of operating units, interdependence among various jobs, the manner in which decisions are taken, the nature and e!tent of formal transactions among the departments"jobs, and so on. Such differences e!ist because organizations are, after all, only instruments to achieve certain ends; and like instruments they need to be moulded to achieve these objectives. e.g., if the objective is to cut down the cost, stringent measures for cost control would need to be implemented. #n the other hand , if the aim is growth and innovation, more decentralization and fle!ibility in operations may be called for. $hus, the design of any organizations has a specefic goal based logic. $he goals set forth while designing an organization may be as varied as increase in profits, survival ,better utilization of human resources, greater efficiency, public image etc. $hat is why, decision regarding organizational design are an important aspect of a manager%s job and responsibility. & point which needs to be highlighted is that the design of an organization is not a mere description of the organization chart. #rganizational structure, as depicted by the organization chart, describes the e!isting divisions and clusters of people and task within an organization. It defines the responsibilities, span of control and reporting relationships of people and departments. 'ut this is only a partial view of the organization as it only

describes what an organization is, not what it does or how it operates. In fact, in confining organizational design to mere drawing up of a (good% organizational chart, there is a danger of making organization rigid and infle!ible. &n effective designing process , therefore, besides delineating the clustering of positions and hierarchies, must also identify the )design of the organizational processes or work, in particular the decision process, whose features are as structure in the implications as those more usually recognized in the organizational chart*.

DETERMINANTS OF ORGANIZATIONAL DESIGN

ENVIRONMENT: #ne of the most obvious determinants of organizational designs, of course, the environment in which the organization operates. $he e!ternal environment subjects the organization to a comple! set of forces. $he environmental influences on an organization are diverse in nature and include the competitiors, suppliers, consumers, trade unions, technological breakthroughs, governmental regulations etc. $hese affect the organization both directly and indirectly. $he entry of an competitor in a market would directly affect the organization while it would be indirectly influenced by the changes in the socio+political environment. OBJECTIVE/MISSION: $he objective"mission of an organization is the critical factor which influences its design. In a way, the organization%s objective determines which particular segment of the environment it is prepared to interact with. & clear statement and understanding of an organization%s mission or objective has a critical influence on its functioning. ,any public sector banks, for e!ample, look at their objective of developmental banking as a mere lending function. In contrast, the Industrial -redit and Investment -orporation of India .I-I-I/ redefine its objective in the 0123s, and conceptualise its tasks as that of working with the borrower+ enterpreneur as a business partner. $o accomplish this objective, the I-I-I went ahead to develop professional managerial structure and systems which were more market oriented and less bureaucratic. 4ithin an organization, the departmental missions and objectives has a decisive influence on the way the department is organized and how it operates.

STRATEGY: 4hile the objective"mission of the organization defines what the organization wishes to do, the strategy focuses on manner in which it will go about accomplishing it. -handler defines .0156/ defined strategy as 7the determination of the basic long+term goals and objectives of an enterprise, the adoption of courses of action and the allocation of resources necessary for carrying out these goals. 8ecisions to e!pand the volume of activities to set up different plants and offices, to move into new economic functions, or to become diversified along many lines of business involve the definition of new basic goals. #ne must note that strategy formulation involves an act of choice regarding how the organization intendes to deal with the environmental opportunities and threats. #ne obvious way it would adopt would be to develop appropiate structural mechanism. 9or e!ample, in responding to increased competition in the business environment, an organization has a choice between two strategic courses of action 9irst it can diversify into different product markets so as to spread out its risk. Secondly it can concentrate and protect its market niche, and try to counter competition by decreasing its overall operating costs. TECHNOLOGY: &nother important influence on organizational design comes from the nature of technology used for transforming the environmental inputs into organizational outputs. :ewman noted ) 4e cannot jump directly from strategy to management design because we have not yet classified the array of actions that will be necessary to e!ecute the strategy. $hinking of technology helps us to elaborate the work implications of strategy7.*

$here is, however, considerable confusion regarding the definition of the term technology. $he technology as a term is normally used to describe the manufacturing process. #ne way of getting over this confusion is to understand technology as a process used by the organization for transforming the inputs into outputs. $he input can be raw materials, capital, labour or information while the output can be a product or service. 8efined in this manner, technology refers to, in :ewman%s words, ) the work to be done*. PEOPLE AND CULTURE: It would be too na;ve to assume that any specific organizational structure whether it is centralized or decentralized, formalized or fle!ible, or tall or flat, is an automatic and inevitable consequence of its environment, objectives, strategies and technology. & more realistic perspective would recognize that any organizational structure is an outcome of a managerial decision making process. &fter all, somebody has to decide as to what particular structure is more appropiate for the organization in a given situation. It is therefore, but natural that the personal preferences, needs, aspirations and an!ieties of these people would play a dominant role in the development of the specific organizational design. $he nature of people employed by the organization also influences the choice of organizational structure. #rganizations, through their history, recruitment policies and socialization processes, tend to inculcate similar orientations among its employees. $hese orientations influence the choice of organizational design in that they make certain designs more acceptable as compared to others. 9or e!ample, an organization which houses entrepreneurial and innovative employers would find it very difficult to implement a structure which relies on formalized behaviour and close monitoring of activities. AGE: $he age of an organization is another factor which makes certain choices of organizational design more appropiate at one time as compared to another. Some organizational theorists have

suggested that criterion of organizational effectiveness changes during the course of its life cycle. $his is so because as the organization grows and matures, it has to cope with different kinds of environmental demands. -orrespondingly, each developmental stage of organization will favour structural mechanism for coping with these demands. & young organization, for e!ample, is more likely to be informally structured with loose control mechanisms since it is still vulnerable to even minor fluctuations in its environment and must deal with them swiftly. SIZE: 4hile the size of an organization is often related to its age, it is useful to consider as an independent influence on organizational design. ,any organizations in fact, do not evolve from a small to large size as is assumed by the life cycle theorists. <ather, with huge initial capital investment, they start with the advantage of being large. ,any studies have identified recognizable relationships with the size and structure of the organization. IMPLICATIONS FOR MANAGERS: 8esigning an effective organization seems to be far from a linear activity. It appears more like an act of balancing the diverse influences and forces. 9ollowing are the implications for managers #ne must recognize the specific design of an organization is not an arbitary arrangement. <ather it emerges out of influences of many diverse factors. $he relationship between the organizational design and its determinants is somewhat complicated by the fact that these various influences on the organizational structure are also inter+related with each other. & change occurring in any one factor is bound to create a pressure for corresponding changes in the others. &n effective organizational design must therefore be cognizant of such interdependencies and should evolve mechanism for coping with the pressure rising from the change.

ENVIRONMENT
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ILLUSTRATION OF INTERDEPENDENCIES AMONG DETERMINATS OF ORGANIZATIONAL DESIGN

THE

#ne needs to appreciate that designing an organization requires dealing with both the tangible and the intangible aspects. &n effective organization structure takes as much care of the formal business requirements as it focuses on the underlying human processes. $hus for e!ample, implementation of an organizational design incorporating decentralization of decision making is not merely a matter of formal documentation of delegation of powers across different hierarchial levels. $o be successful it also requires upgradation of decision+making skills across different levels, as well as the development of an organizational climate supportive of such change. Castly, while the various determinants of organizational design are inter+related, the designing process almost always has to cope with the certain constraints. &n ideal design would of course, be one which is totally consistent with the different requirements of various influences.

DETERMINANTS OF ORGANIZATIONAL DESIGN

Determ !"!t# $% $r&"! '"t $!"( )e# &! Ferceived environment <equired response organizational Re*+ re) )e# &! $,t $!#

Simple, Stable Slow and conventional

-omple!, -hanging Guick and fle!ible

&ppropriate organizational structure &ppropriate technology

,echanistic, formal decentralized

#rganic, informal centralized :on+routine, customized Innovative H informal

<outine, mass production

-ulture H people

-onservative and formal

ORGANIZATIONAL CULTURE
W-"t # Or&"! '"t $!"( C+(t+re. $here is no shortage for organizational culture. It%s been described, for e!ample as ) the dominant values espoused by an organization.* )the philosophy that guides an organization%s policy toward employees and customers,* )the way things are done around here,* and )the basic assumptions and beliefs that are shared by members of an organization.* & closer look at the wide array of definition does uncover a central theme I an organizational culture refers to a system of shared meaning. In every organization there are patterns of beliefs, symbols, rituals, myths, and practices that have evolved over time. $hese, in turn, create common understandings among members as to what the organization is and how its members should behave. -ulture implies the e!istence of certain dimensions or characteristic that are closely associated and interdependent. 'ut most researchers make no effort to specify these characteristics. <ather, they talk of culture as some abstract )milieu*. If culture e!ists, and we argue that is does, it should have distinct dimensions that can be defined and measured. $oward that end, we purpose that there are ten characteristic that when mi!ed and matched tap the essence of an organization%s culture. 4hile the whole of organization culture maybe somewhat different from the summation of its parts, the following represent the key characteristic along which cultures differJ I!) / )+"( ! t "t /e: $he degree of responsibility, freedom and independence that individuals have. R #0 t$(er"!1e: $he degree to which employees are encouraged to be aggressive, innovative and risk seeking. D re1t $!: $he degree to which the organization creates clear objectives and performance e!pectations.

I!te&r"t $!: $he degree to which units within the organization are encouraged to operate in a coordinated manner. M"!"&eme!t #+,,$rt: $he degree to which managers provide clear communication, assistance, and support to their subordinates. C$!tr$(: $he number of rules and regulations, and the amount of direct supervision that are used to oversee and control employee behavior. I)e!t t2: $he degree to which members identify with the organization as a whole rather than with their particular work group or field of professional e!pertise. Re3"r) #2#tem: $he degree to which reward allocations .i.e., salary increases, promotions/ are based on employees performance criteria in contrast to seniority, favoritism and so on. C$!%( 1t t$(er"!1e: $he degree to which encouraged to air conflicts and criticism openly. employees are

C$mm+! 1"t $! ,"tter!#: $he degree to which organizational communications are restricted to the formal hierarchy of authority. $hese ten characteristics include both structural and behavioral dimensions. 9or e!ample, management support is a measure of leadership behavior. ,ost of these dimensions however are closely intertwined with an organization%s design. $o illustrate, the more routine an organization%s technology and the more centralized its decision+making process, the less individual initiative employees in that organization will have. Similarly, functional structures create cultures with more formal communication patterns than do simple or matri! structures. -lose analysis would also reveal that integration is essentially an indicator of horizontal interdependence. 4hat this means is that organizational cultures are not just reflections of their member%s attitudes and personalities. & large part of an organization%s culture can be directly traced to structurally related variables.

D$ Or&"! '"t $!# -"/e +! %$rm C+(t+re#. #rganizational culture represents a common perception held by the organization%s members. $his was made e!plicit when we defined culture as a system of shared meaning. 4e should e!pect therefore, that individuals with different backgrounds or at different levels in the organization will tend to describe the organization%s culture in similar terms. &cknowledgement that organizational culture has common properties does not mean, however, that there cannot be subcultures within any given culture. ,ost large organizations have a dominant culture and numerous sets of subcultures. & dominant culture e!presses the core values that are shared by a majority of the organization%s members. 4hen we tall about an organization%s culture we are referring to its dominant culture. It is this macro view of culture that give an organization its distinct personality. Subcultures tend to develop in large organization to reflect common problems, situations, or e!periences that members face. $hese subcultures can form vertically or horizontally. 4hen one product division of a conglomerate has a culture unique from that of other divisions of the organizations, a vertical subculture e!ists. 4hen a specific set of functional specialists such as accountants or purchasing personnel I have a set of common shared understandings, a horizontal subculture is formed. #f course, any group in an organization can develop a subculture. 9or the most part, however, subcultures tend to be defined by departmental designations or geographical separation. $he purchasing department, for e!ample, can have a subculture that is uniquely shared by members of that department. Similarly, an office or unit of the organizations may take on different personality. &gain, the core values are essentially retained but modified to reflect the separated unit%s distinct situation. If organizations had no dominant culture and were comprised only of numerous subcultures, the influence of culture on organizational effectiveness would be far more ambiguous. 4hyJ

'ecause there would be no consistency of perceptions or behavior. It is the )shared meaning* aspect of organizational culture that makes it such a potent concept. 'ut we cannot ignore the reality that many organizations also have distinct subculture. Kee, !& " C+(t+re A( /e #nce a culture is in place, there are forces within the organization that act to maintain it by giving employees a set of similar e!periences. $he three forces that play the most important part in sustaining a culture are the organization%s selection practices, the actions of top management, and the organization%s socialization methods. Se(e1t $!: $he e!plicit goal of the selection process is to identify and hire individuals who have the knowledge, skills and abilities to perform the jobs within the organization successfully. 'ut typically, more than one candidate will be identified who meets any given job%s requirements. 4hile that point is reached, it would be na;ve to ignore the fact that the final decision as to who is hired will be significantly influenced by the decision maker%s judgment of how well the candidates will fit into the organization. $his attempt to ensure a proper match, whether purposely or inadvertently, results in the hiring of people who have common values .ones essentially consistent with those of the organization/ or at least a good portion information to applicants about the organization. -andidates learn about the organization, and if they perceive a conflict between their values and those of the organization, they can select themselves out of the applicant pool. Selection, therefore, becomes a two+way street, allowing either employer or applicant to abrogate a marriage if there appears to be a mismatch. In this way, the selection process sustains an organization%s culture by selecting out those individuals who might attack or undermine its core values. In contrast, Sony -orporation%s <ancho 'ernardo facility in -alifornia seeks to encourage a family atmosphere. $oward this end. $he company selects applicants who lack e!perience in manufacturing settings. Freference is given to hiring recent high school

graduates and housewives who arrive with a )blank slate* regarding how a factory system works. ) Sony family* without having to unfreeze their prior e!periences. T$, M"!"&eme!t: $he actions of top management also have a major impact on the organization%s culture. >mployees observe management%s behavior, ) such as the time so and so was reprimanded for doing a good job just because he was not asked to do it beforehand or the time that so+and+so was fired because she publicly disagreed with the company%s position.* $hese incidents then, over time, establish norms that filter down through the organization and convey whether risk taking is desirable; how much freedom managers should give their subordinates; what is appropriate dress; what actions will pay off in terms of pay raises, promotions, and other rewards; and the like. S$1 "( '"t $!: :o matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organization%s culture. ,ay be most important, because they are least familiar with the organization%s culture, new employees are potentially most likely to disturb the beliefs and customs that are in place. $he organization will, therefore, want to help new employees adapt to its culture. &ll marines must go through boot camp, where they )prove* their commitment. #f course, at the same time, the marine trainers are indoctrinating new recruits in the )marine way*, the success of any cult depends on effective socialization. :ew ,oonies undergo a )brain+washing* ritual that substitutes group loyalty and commitment in place of family. :ew 8isneyland employees spend their first two full days of work watching films and listening to lectures on how 8isney employees are e!pected to look and act. &n organization will be socializing every employee throughout his or her career in the organization. Bowever, socialization is most e!plicit when a new employee enters an organization. $his is when the organization seeks to mould the outsider into an

employee )in good standing*. :ew employees typically undergo some form of orientation where they are informed on )how things are done around here*. #nce on the job, a manager or senior colleague often becomes a coach, to further guide and mold the new member. In some cases, a formal training program will even be offered to ensure that the employee learns the organization%s culture.

METHODOLOGY FOR THE STUDY OF ORGANIZATIONAL CULTURE

W-2 St+)2 Or&"! '"t $! C+(t+re. In addition to e!plicit orientation and training programs, culture is transmitted to employees in a number of forms I the most potent being through stories, rituals, materials symbols, and language. Stories such as this circulate through many organizations. $hey contain a narrative of events about the organization%s founders, key decisions that affect the organization%s future course, and the present top management. $hey anchor the present in the past and provide e!planations and legitimacy for current practices. ,aterial Symbols. 'ank of &merica is a conservative firm. &ggressive risk taking is not central to its culture. Its e!ecutives drive four+door, &merican+made sedans provided by the bank. 'etween 0126 and 0125, 'ank of &merica owned the discount brokerage firm of -harles Schwab H -o. In contrast to ' of &, Schwab built its reputation on aggressiveness. It sought out and hired only out going and what some have called )flashy* brokers. $op e!ecutives at Schwab also drove company cars. #nly there were 9erraris, Forches and ',4s. $he car images fit both the people who drove them and the cultural values Schwab sought to maintain. 9our+dour sedans and 9erraris are material symbols that help to reinforce their organization%s culture. $he design and physical layout of spaces and buildings, furniture, e!ecutive perks, and dress attire are material symbols that convey to employees who is important, the degree of egalitarianism desired by top management, and the kinds of behaviors .i.e. risk taking, conservative, authoritarian, participative, individualistic, social/ that are appropriate. L"!&+"&e: ,ost organizations and units within organizations use language as a way to identify members of a culture or

subculture. 'y learning this language, members attest to their acceptance of the culture and, in so doing, help to preserve it. $he kitchen personnel in large hotels use terminology foreign to people who work in other areas of a hotel. ,embers of the D.S. &rmy sprinkle their language liberally with jargon that readily identifies its members. ,any organizations, over time, develop unique terms to describe equipment., offices key personnel, suppliers, customers, or products that relate to its business. :ew employees are frequently overwhelmed with acronyms and jargon that after si! moths on the job becomes a natural part of their language. 'ut once assimilated, this terminology acts as a common denominator that unites members of a given culture or subculture.

LIMITATIONS OF THE STUDY

$he study is limited to # H ,, 8elhi. $he study is limited to a sample size of 66. ,ost of the respondents were not forthcoming. $ime was a constraint.

REFERNCES
R$44 !#5 S6 P6 7899:;: )#rganizational 'ehaviour, -oncepts, -ontroversies and &pplications* , Frentice Ball of India, :ew 8elhi S-+0("5 M67899:;: )Dnderstanding #rganizations #rganizational $heory and Fractices in India* , Frentice Ball of India, :ew 8elhi T+#-m"!5 M6 L6< Re ((25 C6 O6 "!) N")(er5 D6 A67899:;: ),anagement of #rganizations Strategies, $actics and &nalysis*, Barper and :ew Fublishers, :ew Aork Wr &-t5 P6 M6 "!) N$e5 R6 A6 7899=;: ),anagement of #rganizations*, Irwin Fublication, -hicago

RESEARCH METHODOLOGY
>ssentially, all projects are conducted via e!tensive research and data collection. $he same is true for the project study conducted by @roup ?II. & research is of two types; Frimary <esearch Secondary <esearch

Frimary research encompasses manual data collection, summarization and analysis by those who conduct the research. Secondary research is the evaluation of data available in books, journals, magazines and official reports. $he project undertaken by us consists of personal interviews, questionnaire analysis and theory perfection. $hus the research undertaken by us is both+ primary as well as secondary. & sample of 66 were taken consisting of various personnel in the -ompany and they were personally interviewed through the questionnaire. $ype of sampling used -onvenient Sampling

ACKNOWLEDGEMENT
)4ords often fail to e!press one%s inner feelings of gratitude and indebtedness to one%s benefactors, but then it is the only readily available medium through which the undersigned can e!press their sincere thanks to all those who are associated with the work in one way or the other* & project can never e!ist and thrive in solitude. Froject work is never the work of an individual. It is more a combination of use, suggestions and contributions and work involving many individuals. $his project also bears the impact of many people. $hus one of the most pleasant part of writing this report is the opportunity to thank all those who have contributed towards it. 9irst and foremost, we would like to thank our mentor 8evendra Sood, Senior ,edia -onsultant #H,, for being guiding and encouraging figure all through the duration of project. 4ithout his cheering and invaluable insights into project, the project work would not have been accomplished. ,r. the this this

#ur acknowledgement would be incomplete without e!tending our sincere gratitude to 8r. <enu Furi who has patiently answered our incessant downpour of queries and questions.

E>ECUTIVE SUMMARY
$he objective of the project was to study organizational design and culture therein. $he organization chosen for conducting the study is #H, .#gilvy and ,ather/ a premier advertising agency part of international group, #gilvy worldwide. $he study includes theoretical framework as the base for further research. <esearch was done through primary and secondary sources of data. #ur group has tried to do comprehensive study in the light of study though we were restricted because of some limitations. In our bid to get first hand data we interviewed 66 respondents face to face. #H, operates conceptually in a disturbed reactive

environment. Feople in #H, operate in highly informal of and highly and

decentralized environment because creativity involved in the job.

customized

Identity factor is very high scoring among all employees in the organization.

<esponsibility also is another high scoring factor that may be because of the fact people identify themselves with the organization so well that they feel themselves as part of culture and feel responsible themselves for success of the organization.

COMPANY PROFILE: O?M

$he oldest advertising agency in the country .it started work in India back in 01K2 and handled Imperial &irways, which became 'ritish &irways/. $hrough strategic creativity, this year (recession+ defier% #H, has managed to race to the third spot, displacing ,udra. #H,, a name made famous by the late 8avid #gilvy, has been almamater to such legends as 'al ,undkur, who started Dlka, 9rank Simoes etc. it was called S.B. 'enson which became an #gilvy agency only in 015K, by when the foreign stake had fallen to a non+controlling level. $oday, it too is a part of 4FF group, which owns #H, 4orldwide, having L3M stake in #H, India. #H, globally+aligned accounts include Nodak, I',, &m>! H S&F. 'ut its% best for its work on -adbury%s 8airy ,ilk, $itan, &sian Faints and 9evicol. &nd it makes more money on local accounts. Strategic creativity is what every agency wants and its love of 6O3 degree branding might help in steal an advantage with internet advertising.
4FF @roup

=4$

4FF ,auritius .L3M/ .00M/

#H, 4orldwide .L3M/ #H,

.O3M/ B$& .O3M/ .033M/

-ontract .O3 M/ >quus

.1KM/

9ortune -ommunication

&rtig &rtig &dvertising Ctd.

# H , .>stablished in 01K2/ :o. of employees 0KLP

F !"!1 "( )"t" @ross Income -apitalized 'illing C", t"( 'e) B (( !& 42 Br"!1,umbai 8elhi 'angalore -hennai &hmedabad -alcutta

7 ! R#6 M (( $!#; 55K.6P P0P3.33

KP2L.33 523.33 0011.33 LP2.33 L2.33 26.33

ACCOUNTS $ata -ommunications Ctd. .-orporate/ Bindustan Cevel Ctd. .'rooke 'ond"Cipton $ea H Bealth/ I$- Ctd. .-orporate/ $elco .$ata Safari, Sierra/ ,I<-, >lectronic Ctd. .#nida $?/ T$, m"!"&er# <anjan Napur, .,8/ <. Sridhar .8irector, Fromoter I #gilvy -onsulting/ Fiyush Fanday .:ational -reative director/ S. :. <ane .>!ecutive 8irector 9inance H -ommercial/ 8ivisions

#gilvy .one to one communication H direct ,arketing/, ,umbai, 8elhi H 'engalore

9inancial H 'usiness -ommunication .Fublic issues/, ,umbai

#gilvy Fublic <elations 4orldwide .Fublicrelations/, ,umbai, 8elhi, 'angalore H -hennai

#gilvy -onsulting .-onsultancy/, ,umbai

&rtistree @raphic 8esign Studios .@raghic 8esigns/ &hmedabad H Fune

T-e W )e! !& G", .$he big four%s gross incomes, in <s. ,illion/

1800 1600 1400 1200 1000 800 600 400 200 0 1993-94

HTA

Lintas

Mudra

O& M

1998-99

INTRODUCTION
#rganization cultures refer to a system of shared meaning held by members that distinguishes the organization on from other organization. $his system of shared meaning is on class e!amination a set of key characters that the organization values. #rganization design is concerned with making decisions about the forms of coordination, control and motivation that best fit, enterprise. In making these decisions, its necessary to consider e!ternal factors like the need and an internal factors like the need and aspirations of the members of the enterprise. $he company taken by us for study of the organization culture and design is #gilvy and ,ather. It%s the K nd largest and the oldest advertising agency in the country. &dvertising is a lot of things. Its democratic pop culture, oppressor liberator, art, theatre, riddled in one. Its free speech, creative flow, its information and its help business and get things sold. $hus, this project aims at studying the organization culture and design of such an advertising agency.

LEARNINGS
Pr"1t 1"( e@,er e!1e : $he e!perience that we had in corporate organization is invaluable, and is an e!perience for life time. 4e observed how hard people work in an organization at different levels. $eam work, mutual understanding and friendly environment is the key to success in an organization 4e found that culture is not something an organization has a culture is something an organization is 8esign of the organization plays a crucial role in defining its success for long run. A,,( 1"t $! $% t-e t-e$r2 : 4hat we studied in ),anagement of organization* was true. $he most important aspect of real life project is to apply theoretical concepts in the organization under study. De"( !& 3 t- ,e$,(e : 4hile interacting with people found how difficult it was to get the work done from others at times, how tactful H pleasing you have to be to get your work done from seniors as well as the subordinates. H+m"! Re#$+r1e# : Buman resource is the most important resource in an organization like # and ,. in # H , the communication channel is very smooth and that%s why they obtain the third position in the market today.

CONCLUSIONS
9ollowing conclusions can be drawn after the completion of the survey and analysis of the project study $he organizational design at # H , is quite appropriate and provides a firm basis for smooth functioning of the company. $he functioning of the organization is informal and democratic, reporting and control systems are loose .but for a few departments such as ,arketing/, and people enjoy a fair amount of freedom in doing their work. 0. 8eterminants of organization 8esign option prevalent at # H , design K. Ferceived environment 6. #rganizational response L. #rganizational structure P. $echnology O. -ulture and people -omple!, changing Guick, fle!ible #rganic H ,atri! :on+routine, customized Innovative H informal

<egarding the organizational culture prevalent at # H ,, the climate is conducive for achievement. $here is great emphasis on autonomy, responsibility and high standards. &t the same time the culture at # H , de+emphasizes conformity and formalities. 9urther, there is a strong sense of belonging amongst the employees and they all take immense pride in the fact that they are a part of #gilvy H ,ather.

RESULTS ? ANALYSIS
Or&"! '"t $! De# &! E!/ r$!me!t : #ne of the most important determinant of an organizational design, we begin our analysis by stating the environment in which # H , .#ur #rganization under study/ operates. -onceptually, we may say #gilvy H ,ather is placed in a disturbed+reactive environment. &s e!pected such an environment is dominated by a few large organizations, that are collectively or individually able to e!ert considerable influence over their own environment H over other organizations. $he ad+world, per se is a micro+cosm in itself. $he major players are HTA, Lintas Mudra apart from # H ,. $he same 6 can be identified as # H , closest competitors. $he organization under study does not have a trade union, which is not at all surprising given the fact that a trade union is formed by workers. 9urther the most prestigious clients identified at # H , are -adburys $itan " $ata Industries Fidilite Industries #nida television Nodak

O4Ae1t /e / M ## $! : $he objective or mission of the organization is a critical factor which influences its design. # H , pridely announces utmost customer satisfaction by ensuring product sales ma!imization as its main objective. &n over whelming 1LM of the respondents claimed that they were aware of the company objective statement. #bjectives determine which segment of the environment its is prepared to interact with. $he marketing department at # H , specified that for them a

potential prospective client is one who can spend over <s. 0 crore per annum on it promotional H advertisement e!penditures. Str"te&2 : 4hile the mission statement of an organization defines what the organization wishes to do, the strategy focuses on the manner in which it will go about accomplishing it. $he various strategies adopted at # H , -ustomer relationship management .-<,/ Invariably all the

respondents listed emphasis on maintain e!cellent relations with clients as the most viable and effective strategy. -reative strategy >mployees at the company list their

creativity and innovative approach at conceptualizing their advertisement are the important factor that has contributed to its success. Str+1t+re : It is quite appropriate that structure follows strategy, that is, the structure or design of an organization is determined by its choice of strategy. &ppropriately, # H , has an organic structure I characterized by low comple!ity, low formation, and decentralization. &lternatively the structure at the company can be said to be a matri! structure, very appropriate for an advertising agency. >ssentially, the matri! combines two form of departmentalization functional and product. Te1-!$($&2 : $he term technology refers to how an organization transfers its inputs into outputs. $he technological approach used by #H, is intensive, that is, it is essentially customized. #H, creates different advertisement for different clients. <ather, it conceptualizes different advertisements for the same client over a period of time. 9ollowing Ferrow%s $echnology classification, #H, an be said to follow a non-routine technology since it has a high task variability and encounters many unanalyzable problem very often. $his technology is quite appropriately backed by a highly fle!ible, decentralized and organic structure.

A&e : # H , is the oldest advertising agency in India operating for the past OK years from the year 01K2. It can be placed in the later growth developmental stage. S 'e : # H , is the second largest organization in India after Bindustan $hompson &ssociates which has 0LP6 employees. # H , employs as many as 0KLP people. CULTURE &nalyzing the culture prevalent at # H , A+t$!$m2 : Guestion 0,1,05 of questionnaire II pertain to this aspect. $he gap between the ideal and the actual is not much .6PL+K2K Q 5K/. &s e!pected, the culture at the organization under study promotes independence and autonomy. I)e!t t2 : 6,00 H 01 helped us recognize new much employees at # H , identify with their company again the gap between actual and ideal is not much L33 I 6K0 Q 56/ the employees share a strong sense of belonging and are very proud of the fact that they belong to # H ,. St"!)"r)# : O,0L H KK, deal with what kind of work standards are set at the organization under study, again the employees feel that the companies work standard are higher that those of similar organization and quality of work is high. It is this high quality that has ensured the success and survival of ogilvy and mather. Re#,$!# 4 ( t2 : L, 0K H K3, pertain to this aspect, given the nature of the work it is not surprising that the climate at # H , promotes a sense of responsibility and the employees are e!pected to deal with contingencies and take responsibility head on. Re3"r)# : 05, 0P H K6 helped us know the reward behaviour at # H , comparatively the compensation packages offer at # H , are relatively higher than those of similar organization, also the rewards are both monitory and social in aspect rewards are given

more in the nature of a job done well, creative and innovative contributions. Or&"! '"t $!"( 1("r t2 : P, 06 H K0 deal with this aspect of organizational climate, e!pectedly there is a lot of confusion at the firm and the employees have to rely on their instincts and e!periences rather than stated routes, channels or regulations, this can be e!plained given the nature of their work and the structure .,atri!/ adopted by the company. C$!%( 1t# : 2, 0O H KL, pertain to a very important aspect of an organizational climate conflicts and collisions are innate to an organization further an organization can ensure I tine entropy by facing the problems and not avoiding them. -onflicts can be seen as natural, inevitable and productive only when dissident views are not dismissed # H , conflicts are more egotistical in aspect and are not resolved. <ather they are shoved under the carpet, complied with an over+active grape vine that leads to great disturbances in the organization. $his is one area where the organization needs to pay attention.

OBJECTIVE OF THE STUDY

#rganization can be seen as comple! realities. $o comprehend the essence of an organization it is essential to focus on the basic problem. Bow to integrate the various behaviours and activities across the parts of organziation, so that they are coordinated towards a common goal. $his coordination is facilitated by implementing on appropriate organization that is incongruent with the nature of the business of the company. 9urther the culture of the organization has a decisive influence on what happens in its day to day functioning. $he organization culture describes the personality of an organization its overall orientation, infuses it with life and gives it a unique identity. @iven this background the objective of the project is to study the organization design and culture problem at #gilvy and ,ather, India%s premier advertising agency.

ORGANIZATION DESIGN
OBSERVATION A%%e1te) 42 &$/er!me!t re&+("t $!#
Often 27.88% %arel# 0.00% &e'er 0.00% Al" a#s 14.42%

Al

!st Al" a#s $7.69%

S$1 "( !$rm# "%%e1t $+r 3$r0

%arel# 18.18%

&e'er 0.00%

Al" a#s 12.12% Al !st Al" a#s 27.27%

Often 42.42%

At O ? M t-e $r&"! '"t $! e!/ r$!me!t !ter"1t $! #

Mediu 3.00% Hi() 21.22%

L!" 0.00%

*er# L!" 0.00%

*er# Hi() 7$.78%

T-e )e,"rtme!t m ## $!# "!) $4Ae1t /e -"/e 4ee! )e% !e)

100 80 60 40 20 0 +es &!

I "m "3"re $% t-e 1$m,"!2B# $4Ae1t /e m ## $! #t"teme!t

100 80 60 40 20 0 +es &!

M2 3$r0 1$!tr 4+te# 1$!# )er"4(2 t$3"r)# t-e #t"te) $4Ae1t /e# $% t-e 1$m,"!2

$0 40 30 20 10 0
A(ree &eit)er a(ree n!r disa(ree ,isa(ree -tr!n(l# disa(ree

O+r $r&"! '"t $! -"# " #t"te) #et $% $r&"! '"t $!"( /"(+e#

100 80 60 40 20 0 +es &!

T-ere # 1$!&r+e!1e 4et3ee! t-e $r&"! '"t $!"( #t"te) /"(+e# "!) ,$( 1 e# "!) ,r"1t 1e#

&eit)er a(ree n!r disa(ree 13.33%

,isa(ree 0.00%

&e'er 0.00%

-tr!n(l# disa(ree 0.00%

-tr!n(l# a(ree 20.00%

A(ree 66.67%

O+r #tr"te&2 ("2# #tre## $! t-e#e ( !0 !& t-eme# C$!1e,t $% 1$m,ete!1 e# 033M Aes I!ter!"t $!"( ) me!# $!# 033M Aes Im,"1t $% te1-!$($&2 033M Aes

J$4 e@,e1t"t $!# %r$m me "re )e# &!e) t$ t", m2 ,$te!t "( ")e*+"te(2

100 80 60 40 20 0 +es &!

I -"/e 4ee! & /e! e!$+&- )e(e&"t $! $! t-e A$4 m2 #+,er $r7#; e!"4( !& me t$ e@e1+te m2 A$4 3 t-$+t "!2 - !)r"!1e

&eit)er a(ree n!r disa(ree 24.2$%

,isa(ree 3.00%

-tr!n(l# disa(ree 0.00%

-tr!n(l# a(ree 27.28%

A(ree 4$.47%

Fee( - &-(2 1$mm tte) t$ m2 A$4 4e1"+#e $% 1$!&e! "( 3$r0 !& "tm$#,-ere

&eit)er a(ree n!r disa(ree 9.29%

,isa(ree 0.00%

-tr!n(l# disa(ree 0.00%

-tr!n(l# a(ree 46.92%

A(ree 43.79%

T-ere # " #tr$!& %ee( !& $% 4e($!& !&!e## "!) ($2"(t2 t$3"r)# m2 $r&"! '"t $!

100 80 60 40 20 0 +es &!

Re3"r)# "re & /e! m$re ! t-e !"t+re $% " A$4 )$!e 3e((5 1re"t /e "!) !!$/"t /e 1$!tr 4+t $!#

100 80 60 40 20 0 +es &!

F$r t-e 1$m,"!2B# em,($2ee m$r"(e # " /er2 m,$rt"!t ) me!# $!

100 80 60 40 20 0 +es &!

I &et " %ree -"!) ! )e"( !& 3 t- m2 A$4 3 t-$+t /er2 1($#e #+,er/ # $!

&eit)er a(ree n!r disa(ree 16.67%

,isa(ree 3.30%

-tr!n(l# disa(ree 0.00%

-tr!n(l# a(ree 23.34%

A(ree $6.69%

T-e te1-!$($&2 em,($2e) 42 $+r % rm #

Hi()l# standardi.ed 0.00% /ust! i.ed 1$.16%

-tandardi.ed 0.00%

Hi()l# /ust! i.e 84.84%

De,"rtme!t"( He") Aes Fromotes independent thinking &llows fle!ibility 9irmly believes in going by stated values and regulations 033 033 033 :o 3 3 3

ANALYSIS OF CUESTIONNAIRE DII

C6 N$6 G. 0 G. 1 G. 05 G. K G. 03 G. 02 G. 6 G. 00 G. 01 G. L G. 0K G. K3 G. P G. 06 G. K0 G. O G. 0L G. KK G. 5 G. 0P G. K6 G. 2 G. 0O G. KL I)e"( OO 0LK 0LO 0PL 0P6 0P3 06K 06L 06L 06L 0LP 066 0LO 0L2 0L1 0PK 0PO 0PL 0P6 0LK 0P6 066 0L5 0PK A1t+"( OO 0K6 0KO 005 003 0KK 0K6 000 16 002 001 1O 032 03K 006 06K 060 0KL 032 0K5 0KP 5P 11 51 -onflicts L6K+KP6 Q 051 <ewards LL2+6O3 Q 22 Standards LOK+625Q 5P #rganizational -larity LL6+6K6Q 0K3 <esponsibility L0K+666 Q 51 Identity L33+6K5 Q 56 4armth H Support LP5+6L1 Q 032 &utonomy 6PL+K2K Q 5K A#,e1t I)e"( D A1t+"(

CONTENTS

I:$<#8D-$I#: #'=>-$I?> #9 $B> S$D8A <>S>&<-B ,>$B#8#C#@A $B>#<>$I-&C 9<&,>4#<N -#,F&:A F<#9IC> #'S><?&$I#:S <>SDC$S H &:&CASIS C>&<:I:@S CI,I$&$I#:S -#:-CDSI#:S

PROJECT REPORT ON

OGILVY AND MATHER

SUBMITTED TO: ,r. %0&1 21%3

DATE: 18.12.2000

SUBMITTED BY: 4+OT-&A A%O%A 61&4A& 6O2AL *37A- A66A%8AL MOH&3-H 2A%A-HA% -1%43T 7A1% 93-8A,002 -A%7A% 61&4A& 7A2OO% 0352000 9152000 9$52000 10152000 10752000 10952000 11$52000