Organizational Behavior Assignment Evaluating Business Case Of Sushma Industries Pvt Ltd
Consider the case study of “SUSHMA INDUSTRIES: THE GORDIAN KNOT OF COMPENSATION DESIGN” and prepare a detailed report on organizational behavior assignment.
Your organizational behavior assignment should:
- Provide a brief introduction to the company and its context, along with the objective(s) of your report
- Analyze the following aspects of organizational behavior against course concepts, models & frameworks:
- individual values, attitudes & behaviors that help or hinder positive change
- Develop a justified set of recommendations addressed to the C-Suite of the company
The case study assessment provided in this organizational behavior assignment aims to explore the different domains of organizational behavior of Sushma Industries Private limited from diversified business viewpoints with the support of a set of business concepts, models and organizational frames. In the light of different business concepts, the organizational structure, workplace culture and the organizational ethics of C-suite of the company will be evaluated in the case study. In this case study assessment, the individual values, workforce attitude and other parameters that are directly or indirectly linked to its positive or negative change will also be analyzed sincerely with the support of the latest business models and frameworks. The case study assessment is on SIPL, a company initiated by Sadananda Murthy in the year 1986 as a technology company that chiefly focused on the field of force, torque and pressure sensors products and services. The technological machinery products found a regular consumer base in the engineering, pharmaceutical, process and automobile industries along with some specific defense organizations and government bodies.
Organizational structure of SIPL (As per Mintzberg’s organizational framework)
The organizational structure of Sushma industries follows Professional bureaucracy as it focuses on each client's requirements and generates tailor-made products. Now, in an attempt to justify the claim that SIPL follows the professional bureaucracy, the structure and functionalities of Professional bureaucracy within an organization must be addressed in brief. As per Mintzberg's theory of organizational structure, a professional organization or a business organization that follows professional bureaucracy is generally client-centric and offers customized products or services that suit the individualized business requirements. In this type of organization, autonomous power is given to the field experts who are directly developing and designing the products or services (Dhargalkar, Shinde and Arora, 2016).
As per the case study, Sushma industries offered a variety of technological solutions such as torque, force, pressure sensors, display units and other products. As it provides services to specific clients based upon their requirements, professional bureaucracy rules over the innovative technology company. Professional bureaucracy is emphasized on the theory of decentralized organizational structure as it depends on highly skilled professionals to deliver services to a specific private or government organization. The skilled professionals are trained to work at their optimum prowess to bring forth maximum productivity and client satisfaction for an individual or an organization (Kadim, Sabti and Shliot, 2021). This organizational structure is reliant on standardization of skill, expertise and qualification to carry out customized works for the business. One advantage of this type of organizational structure is that since it focuses on customized service or products as per the order by the client base, the service is of high quality and leads to the tremendous prospect of growth for the individual or company who enrolled for such service. A bit of adhocracy has also been found while responding to the changes in market demand.
From Henry Mintzberg's perspective of professional organizational structure, SIPL adherently goes by the key principles and structure of the organizational framework. Although the company delivers a wide range of services, 80% of its revenue generates from customized solutions. Hence professional bureaucracy is the apt organizational structure of SIPL.
Organizational culture at SIPL (According to Charles Handy model)
Before identifying and discussing the organizational culture at SIPL, it is pertinent to sketch a brief overview of the Handy's model of organizational culture. The Iris philosopher Handy classified the organizational culture into four categories- power culture, task culture, person culture and role culture. Each business or financial institution follows a set of organizational cultures which forms the crux of organizational growth. As it becomes easy for an organization to a structural approach to abide by the organizational culture, it becomes appropriate to go by a popular model of organizational culture for the ultimate growth of a particular company. Among the four cultures practiced at any corporate set-up, role culture seems to be the most applied one. In the case of role culture, every employee is delegated with a separate job role which he/ she has to abide by to strike a balance at any workplace. In this type of work culture, power is not proffered to the employees in the first place; rather the only way to attain power is through being loyal to one's responsibilities (Tomic et al., 2018).
As evident in the very introductory part of the case study, the chief executive officer at SIPL is acknowledging the stoicism and the loyal endeavor of Padmanabhan, the head of human resources for his extraordinary contribution to the company. Hence, it is quite clear that the organization is inkling at a role culture, where each person assigned to a specific task obeys their responsibilities and comes out triumphant in the process. Padmanabhan, with 25 years of working experience in the human resources domain of multiple engineering and service organizations is perfectly acclimatized to many moderate to severe workplace designing and developing issues. The role play culture was rampant with the organizational structure of SIPL since the early 2000s when the mechanical engineer joined the company. The organizational culture was not pretty organized back in 2005 when the HR head joined and it was the role culture that became a savior during the phase of the utter organizational crisis (Bundy et al., 2016).
Another example of role culture at SIPL can be found in the employee culture of the organization. The tech service providing company believes in the culture of performance and when it comes to an organizational culture based on performance, it can be firmly stated that the performance of the workforce is directly linked to role culture inculcated within the organization. A company can never flourish without a strict role culture (Joseph and Kibera, 2019). In the case of SIPL too, leaders believe in strategic talent intervention which is built upon the organizational role culture. The compensation design and reward system attached to performance add to the organizational culture aimed at obtaining maximum profit and revenue generation for the company. The role culture at SIPL was so stringent that it never stayed back from paying more to an employee who is capable of handling the extreme challenges within an organization if the newcomer does not possess experience in the related domain. The HR head also revolution the organizational structure by diversifying the job roles into the required specific category and assigning tasks as per the skill set and experience of the employees (Osborne and Hammoud, 2017).
As per Hofstede's model of culture PDI or power distance index is quite low as the CEO and the HR Head are close to each other in terms of business relationships. A low uncertainty avoidance index or UAI also hints at the flexibility and openness to change as displayed by the organization. Although all the employee details are not known, it is difficult to access the masculinity versus feminity index for the company.
Individual values, attitudes and behaviors that help or hinder positive change
The case study on SIPL has been primarily centered on the transformational journey of thefounders and the HR head of the company who have been pivotal in bringing a change in the organizational structure of the company. The compensation strategy adopted by the human resource lead was remarkable as he tried to revolutionize the entire value system within the organization (Khudhair, Rahman and Adnan, 2020). A lack of employee compensation structure troubled him initially yet he remained resilient and consistently worked on bringing progress into almost every sector of the organization. Reintroducing the insurance coverage was the ultimate loosing of the Gordian knot for the company which easily resulted in employee satisfaction and greater client retention which is one of the boldest moves which bridge the decade long operational gap (Bakoti?, 2016).
The attendance management system again displayed his discrete organizational attitude which streamlined the employee management system by cutting a significant number of employees from wandering around the premises and avoiding duties. It automatically boosted workplace efficiency which led to better responses to challenging business scenarios (Aven, 2016). Whereas making changes to the compensation structure was a massive challenge for the company, investing in a talent intervention strategy seemed essential to cope up with the ever-increasing demand for change in every possible private or government organization that SIPL is currently tied up with.
Set of recommendations addressed to the C-Suite of SIPL
C-suite of an organization comprises the executive-level position holders of a business organization or a corporate such as chief executive officer, chief operating officer, chief financial officer and chief information officer. In some organizations, the human resource manager or HRM is also a part of the C-suite.
Firstly, the chief executive officer S. Suveer, being at the helm of the organization must be more diligent and discrete while hiring employees who will hold a higher position in the company such as the HR head. He must practice self-dignity and confidence so that people can hardly question his authority and decision-making process. Despite proffering the entire operational duties to the HR Head, he must also take certain responsibilities himself to diversify the workforce and innovate a management system that is seamlessly connected to all the segments of the business. On the part of the CEO landing, a genuine solution to unravel the knot and start afresh is essential. Simply deploying the sectional heads to take part in the decision-making process along with their load is tiresome and leads to certain negative outcomes which result in poor organizational growth and workplace culture (Tedla, 2016).
Planning an immediate change in compensation structure is highly recommended to G. Padmanabhan, the HR head at SIPL. Reviewing the compensation structure is unavoidable as this is a significant driving force when the company is looking for an organizational transformation (Buschmeyer, Schuh and Wentzel, 2016). Being an HR head, recruiting highly skilled employees should be the forte and hence, Padmanabhan should emphasize more on hiring candidates based on expertise and experience rather than hiring inefficient employees at low payout for the sake of cutting down the overall investment of the company. The compensation disparity among the old and the new employees has also a cause for concern and it must be addressed diligently so that any issue regarding the gap in the compensation structure does not come onto the fore.
A provision of gratuity payment to the tenured employee should also be considered as this has been a major cause of concern for the company in 2015. A company with a well-organized compensation structure definitely wins over its peer companies and the company must be able to perceive these key principles behind the optimum organizational success of the leading business organizations across the globe.
This case study assessment is predominantly focused on the organizational behaviors of SIPL, an economical machinery provider to a plethora of private and government organizations based on the latest technological advancement. Along with the organizational structure of the company, the cultural practices rampant with the organizational structure have also been highlighted in support of the popular business models and frameworks. As SIPL is targeted at customized solutions to the specific client base, a thoroughfare of professional bureaucracy has been noticed to take leads. Individual values and attitudes have been effective in bringing transformational change to the organization. A set of recommendations based on the corporate ethics and values most suitable for the company has also been suggested for optimum organizational progress.
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