Organizational Behavior 2

BIJAYINEE PATNAIK
 COURSE DESIGN
Class Participation – 20
Group Project 1 – 25
Group Project 2 – 15
End Term – 40

Total Sessions - 20
Organizational Structure – 5 Sessions
Organizational Culture – 4 Sessions
Leadership and Power – 4 Sessions
Diversity Equity and Inclusion – 3 Sessions
Organizational Change – 2 Sessions
Project Presentations and Viva - 2
ORGANISATION STRUCTURE
 SESSION 1
•Did you have a Structure in your Team in Trim 1

•What was the criteria of creating the structure

• How did it help you achieve your group objectives

•Did the structure change in between? Why?

OB Model
“The only difference between a mob and a trained army is organization.” – Calvin Coolidge
Why are we starting the Course with Organisation Structure module?
 RELEVANCE OF STRUCTURE AS THE FIRST MODULE

Structure follows Strategy – business principle coined by Alfred D Chandler

He described corporate strategy as a course of action required to achieve goals; and he defined structure as the design of the
organisation through which strategy is administered
Structure is a vehicle that carries your strategy
He opined : If the structure doesn’t support the strategy, the result is inefficiency (productivity as an outcome in OB Model)

Last 5 years in Organisations

Organisation restructuring has emerged as the top 3 priorities - Microsoft, Alphabet, Toyota, Cisco, Disney etc
Organizational structural change is often a consequence of financial or emotional turbulence in the workplace
McKinsey reported that in the wake of the covid pandemic, over 90% of companies are expected to see more structural change in the
coming years.
 Note on Organizational Structure

1. Why should there be an organization structure? What purpose or need does it serve?
2. What factor/elements determine the design of an organization structure?
3. What are the Characteristics of Functional, Divisional and Matrix structures?
 What is Organisation Structure
Definition:

◦ How Job tasks are formally divided, grouped and coordinated

Need for Structure in Organisation

◦ Enable people to effectively integrate their efforts and get things done - NMIMS
◦ Outlines the patterns of Org roles, relationships and procedures…to facilitate co-ordination
 Functions of Organisation Structure
FUNCTION ORGANISATION INDIVIDUAL

Co-ordinated Capabilities Defines a shared map of who is able Develop skills to learn, grow and
to do what – DOL, depth and breadth advance individualized careers
of work
Coordinated Activities Through integrating mechanisms such Bond and work with a larger
as hierarchical supervision, rules etc – community, engage in
Vertical Vs Horizonal independent work and collectively
Routine vs Exceptional produce work
Coordinated Goals Distribute decision making authority Integrate individual interest into
to achieve shared goals – Vertical shared goals that are personally
(C/D) and Horizontal – meeting broad motivating and rewarding
purpose and mission
Coordinated Boundaries Defines how is work done and who Enables members of the
will do what and not do what – (Buy, organisation to decide if they wish
build, leverage, outsource) to join/stay
 Note on Organizational Structure

1. Why should there be an organization structure? What purpose or need does it serve?
2. What factor/elements determine the design of an organization structure?
3. What are the Characteristics of Functional, Divisional and Matrix structures?
 Design Elements of Organisation Structure
1. Work Specialization – Degree to which activities are divided into separate jobs.
◦ Job is divided into several steps, each done by a separate individual – shop floor, TA, McD
◦ Individuals specialise doing part of the activity than the entire work – Manufacturing or R&D
◦ Makes most use of specialised skills and improves them through repetition

Started by Henry Ford in the early 20th century

Produce a car in 10 seconds with employees with very limited skills
However human dis-economics surfaced – boredom fatigue, stress (JCM)

Is work specialization limited to manufacturing/engineering or more structurally lower level

tasks??
2. Departmentalisation
◦ The basis by which jobs are grouped is called departmentalisation
◦ By functions, product or service, geography
◦ Ex – Microsoft – From Customer to Functional to Divisional/ Platform

3. Chain of Command
◦ Unbroken line of authority that extends from top to bottom, clarifying who reports to whom
◦ Authority – Rights inherent in a managerial position to give orders and expect them to be obeyed
◦ Unity of Command – the idea that an employee should report to one and only one manager
◦ Do Authority and UoC hold relevance today?
4. Span of Control – The number of subordinates a manager can direct efficiently and
effectively
◦ Impacts the levels in an organisation
◦ Narrow and Wider spans

5. Centralisation and Decentralisation – deals with Decision making

◦ Centralisation – Decision Making rests at the top and with a few
◦ Decentralisation – Decision making rests where the action is

6. Formalization – extent to which jobs within an organisation are standardised

◦ Defines SOP’s, explicit JD’s, Lots of Rules on how work is done
◦ Results in consistent and uniform output
◦ What happens when jobs are formalised?
7. Boundary Spanning – Employees forming relationships outside their formally assigned
groups
◦ Committees, Action Learning programs, Interest based groups

◦ What does Boundary Spanning help in??

 Evaluate A Structure’s Strength and Weaknesses
The Structure might vary across the four dimensions. So how do you check for its sturdiness

Efficiency – Produce results with the most economic use of resources (I-O - Amazon)
Responsiveness – Ability to meet and satisfy demands of various stakeholders (TAT’s - Amazon)
Adaptability – Ability to innovate and change dynamically (Samsung, Nike)
Integrity – Ability to provide the glue for consistency between organisation purpose and
individual motivations (Tata)
 N12 Case Questions

Any Start-up experience?

1. What kind of structure did N12 have in the beginning.

2. How did the structure evolve over a period of time.

3. What were the challenges as the structure evolved and how did the team try to overcome them

4. Was the company successful in adapting its structure while it grew (as its strategy evolved and the
organisation scaled up)? Justify

5. What are the possible repercussions if the organisation structure doesn’t follow the organisation strategy
 Common Organisational Frameworks
1. Simple Structure
2. The Bureaucracy
3. The Matrix Structure

Simple Structure
◦ Low level of departmentalisation
◦ Wide Spans of control, Centralised authority, little formalization
◦ Most organisations start as a simple structure

Bureaucracy
◦ Highly routine operating tasks
◦ Specialization, formalised rules and regulations
◦ Centralised authority, defined spans and chain of command
◦ Two types – Functional and Divisional
 How did the structure evolve over a period of time.
• Scaling up is a process that every start-up has to go thru as it grows
• It Involves
• Creation and deployment of Organizational and Managerial processes
• Planning and control systems
• Formal structures and reporting relationships
• Move from informal adhoc to more formal and repeatable processes
• Entrepreneurial to professional management

• The goal is to – maintain control over the organization and its outputs – without hampering creativity and adaptability
N 12
2010 to 2013 - Informal Adhoc Practices
Little or no structure
Processes were loosely specified, ad hoc or not documented. Most knowledge remained in William’s and Degtiarov’s head
Tech team has a rough DoL based on members comparative expertise (Science Vs Engg)
Most work was done collectively
 2013- (Sabados departure and Berkson and Flavin taking over - Disciplined Planning and Problem Solving
Flavin bought in rigor, discipline, consistency and order to N12, without the rigidity and rulebound behaviour (detested by emp’s)
Changed the way in which critical work processes were done by emphazing planning, pacing and priority setting
He streamlined and routinized communication (created a mgmt. process of regular, scheduled set of meetings, presentations and review)
Identified interdependencies and tasks that were on critical path – why is this important?

Defined Structure and Roles

2013-2015
N12 introduced a formal Org structure, with different roles and jobs – till then most employees were jack of all trades with broad roles
and limited specialization
Horizontal Structure/Expansion - Hired Jarosz, Gloudstone and Sanderson for specific functions/department and discipline.
Vertical Structure - Similarly Williamson in production and Degtiarov with Tech development. Both along with Gloudstone had people
reporting to them.
Roles changed from doing to delegating –communication, coordination, alignment, healthy team dynamics etc
What began with Berkson and Flavin at leadership level, slowly started moving to the next level in the org structure
 What were the challenges as the structure evolved and how did the team try to overcome them
1. Putting a structure in the first place
– The company moved at a measured pace through stages of increased formalization and structuring
- Allowed existing employees to adjust gradually to the shifts in behaviour and also onboarding new ones
2. Pushback/Resistance
- avoided the usual mistake of introducing a number of formal, rigid processes into an informal loosely run
environment.
- This ensured buy-in from all
- Began by introducing a more disciplined mindset and an orderly approach to getting work done. This led to
Willaims and Degtiarov seeing its value and accepting it
3.Sequencing – Began with Horizontal differentiation based on skills and then went to Vertical
- Most members of the old guard stepped into leadership positions at roughly the same time, thereby limiting
power plays. - 8 in 2014 and 11 in 2015 and were divided almost equally between W,D and G
4. Differentiation hampering Integration – Esp Williams and Degtiarov

WHAT ARE THE ELEMENTS ONE NEEDS TO FOCUS ON WHILE DESIGNING AN ORG STRUCTURE?
 Basic Forms of Structure
Functional Structure
◦ Employees are divided by similar specialities and tasks – Marketing, HR, Finance, Sales
◦ Activities are co-ordinated vertically within, by hierarchical supervision
◦ Employees are committed to achieving goals of their function
◦ Planning and Budgeting is done by function
◦ Decision making across functions happens through a senior executive

Advantage
◦ Enables to become functional specialist
◦ Shows a clear career path
◦ Standardisation
◦ Will experience higher levels of productivity

Disadvantage
◦ Works well if focus is on one type of product or service
◦ Rigid and formal communications
◦ Lack of job variety
 Basic Forms of Structure
Divisional Structure
◦ When capabilities are divided by product/service(P&G), Geography (Toyota) or customer (hospital,
bank)
◦ Employees are committed to achieving goals of their division
◦ Planning and Budgeting is by division and not function
◦ Careers are defined by experience within division (B2B/B2C, Domestic/International)

Advantages
◦ Better coordination across functions and hence efficient
◦ Greater local and product knowledge
◦ Speed in decision making

Disadvantages
◦ Duplication of efforts
 Basic Forms of Structure
Matrix Structure - Leveraging the strengths and limitations of both the functional and divisional
structures, come a hybrid form referred as matrix structure
◦ Both divisional and functional managers have authority within the organisation
◦ Employees have dual reporting – direct line (primary boss) and dotted line reporting (secondary boss)
◦ Technical expertise between function and horizontal coordination across functions
◦ Most employees will have dual assignments
◦ Requires a great deal of horizontal collaboration between both managers

Advantages
◦ Checks and balances, more discussion and coordination before decision making
◦ Better decisions

Disadvantages
◦ Lack of Jurisdictional Clarity
◦ Fosters power struggles
◦ Role conflict and challenges of reporting to two bosses
 CASE Questions
Case Questions: Moet Hennessey Espana:
1. Discuss the Organisation Strategy pre 1995 and how has it impacted the Structure then?
2. What were the changes made to the organisational structure in mid-1990’s, why were the changes made
and what was the impact of these changes?
3. What changes did Otano bring in the organisation’s structure starting 2001? What strategy led to the
choice of these structural changes?
4. What was the impact of these structural changes on:
a. Roles and responsibilities of employees
b. Need for integration within the organisation
5. What was the emerging culture at MHE? Will this present culture, and need for interlinkages facilitate
growth? What changes and interventions would you suggest to integrate the structure better?
 CASE
How has the structure of Moet Hennessy evolved over a period of time?
 Production to Distribution, Geog to Trade channel structure , Volume and Image channel, and Matrix structure

How has the business strategy influenced the organization structure?

Increase Value of MH brands
Transform MH into a professional distribution company
Most efficient marketing and distribution company for premium products
Improve efficiency and Reduce structural costs – Tata Motors
 Create a new channel for premium products- Nexa
 Tata Motors
 Lemonade – Customer centricity/TAT/Tech
Reasons for Organisation Restructuring
Minimise Costs
Better time management
Reduced effort for providing product or service
Timely and quality decision
Improve co-ordination – departments, people, tasks etc
Facilitate flow of information
Adaptability/flexibility
 Changes in Structure
1. From Geography to Type of Trade Channel
2. Sales Team – Volume and Image
3. Matrix Structure – What case facts show that it’s a matrix structure
◦ a. Sales
◦ b. marketing – maisons, sales and operations – ATL and BTL

4.
 Case Questions
4. What was the impact of these structural changes on:
a. Roles and responsibilities of employees
b. Need for integration within the organisation

 To what extent does the present organization structure facilitate interdepartmental communication?
 Key Observations
 Challenges

5. What was the emerging culture at MHE? Will this present culture, and need for interlinkages
facilitate growth? What changes and interventions would you suggest to integrate the structure
better?
 People related Issues in Restructuring

Philosophical differences and lack of respect for other functions

Culture differences and language issues
Working hours
Discipline, Control and Efficiency thru a Structure

 After studying the outcomes of the social network analysis, what changes will you suggest in the organization
design to Otano?
 Emerging Structures
Tech, Way of work, preferences of Millennials, TAT for customer satosfaction, new war for talent,
engagement at work
Employee Centric
Holocracy - Instead of operating top-down, power is distributed throughout the
organization – giving individuals and teams freedom while staying aligned to the
organization’s purpose
System Designed to move companies away from rigid corporate structures and
towards decentralized management and dynamic composition
The basic goal with this structure is to allow for distributed decision making
while giving everyone the opportunity to work on what they do best
Ex – Zappos, GitHub

Crowd Centric
Build platforms upon which the collective can iteratively self-organise
Stack Overflow,
What does it require to have these emerging structures
 New Age Structures
Article: Agile at Scale
1. What is the Business need for an agile structure in your chosen organisation
2. What Operating Architecture and People Processes, enabled building agility across the organisation
3. What major business outcome/s did the agile structure achieve for the organisation?
Agile Structures
1. Small and multi disciplinary, Agile is usually limited to areas/projects
2. Best suited for innovation – better create products n services
3. Largely self-governing
4. Reduced layer on control and approval
5. Decision making is quick
 Case: LIIP: A Path to Holacracy

1. What is the Difference between Traditional Hierarchical, Matrix and Holacracy structure?
2. What are the key characteristics of Holacracy?
3. Would you consider Holacracy to be an appropriate organisational design for LIIP? Why or
why not?
4. In the place of Prodon, what would you consider as pros and cons of working in a Holacracy
structure?
5. What factors influence the success of Holacracy structure in an Organisation in general and
LIIP in particular?
 What are the key characteristics of Holacracy?

•No Formal hierarchy – Circular structure defined by task based roles, rather than power over people
•The lowest level structural Unit is that of a task based role and NOT a person based job as in hierarchical
structures
•Structural Units consists of roles and circles. Roles are constantly adapted
•Every Role has – Purpose (need), Authority (decisions) and Accountability (Expectations)
•Work processes are regulated in a constitution
•Organization change is bottoms up
•In Holacracy processes dominate over structure
•Sociocracy – Comes from founders
Would you consider Holacracy to be an appropriate organisational
design for LIIP? Why or why not?
1. Does the business lends itself well to a holacratic structure
◦ Business is project and client driven which requires a highly decentralized approach
◦ Project execution requires quick reaction when a project scope or client needs evolve
◦ Circles can execute all projects and make all project related decisions

•Are employees at LIIP generally suited to Holacracy

• Employees engage in core tasks and also a lot of organizing activities
• Core tasks, Managerial tasks and entrepreneurial tasks
• Type of employee population

•Its size, Philosophy and culture

• Top management saw the need to relinquish power
• Relatively small size
 In the place of Prodon, what would you consider as pros and cons of
working in a Holacracy structure?
What would be some things that will excite you and scare you, about working in a Holacracy?

1. Authority and Accountability

2. Transparency – pros and Cons
3. Identity
What factors influence the success of Holacracy structure in an
Organisation in general and LIIP in particular?

1. Leadership buy-in
2. Holacracy Systems
3. Holacracy People
4. Holacracy Culture
 Closing Thoughts
1. No one size fits all
2. How ready are your people
3. does it require a culture change, most of the time the answer is yes
4. is it improving the overall efficiency of work – Before After
5. Pilot test it
6. Assess impact on people process and is the organization ready for it or ready to make those
investments
ORGANISATION CULTURE
What is Organisation Culture:
How would you describe was the culture of your organisation - characteristics

◦ A system of shared meaning held by an organisation’s members that distinguishes the organisation from
others
◦ Shared assumptions include Values, guiding principles, Norms
◦ An Org Culture is Strong, only if individuals from different backgrounds, levels etc describe the culture in
very similar terms
◦ That’s the Dominant Culture – Core values that a majority of members share, that gives the organisation
its distinct personality
◦ Culture ensures that a vast majority of the employees behave, act and respond in a relatively uniform
and stable manner.
 What do Cultures do?
Functions of Culture
Creates distinction between organisations
Conveys a sense of identity
Facilitates commitment to something larger than individual self interest
Social glue – defining standards of what employees shd do or not do
Mechanism that shapes employee behaviours and attitudes
Helps achieve Business Objective
 How does Culture Evolve
1. Burning Platform Syndrome
2. Managed Evolution
◦ Understand Present Culture – that came from successfully solving particular problems

◦ Rethink different set of problems OR different ways of managing the problems

Edgar Schein
Visible manifestations of culture are the Physical and Social environment of the organization – both tangible and
intangible.
Includes but not limited to
- Physical space
- output of work groups
- artistic productions
- Way people dress
- hours and patterns of work schedules
- Behaviour of its employees
Antecedents to Culture
How do members solve problems – how can this reflect upon an organisations culture?
◦ Reflect upon your organisation “process” of problem solving, and what does it say about the Org.
◦ From the patterns of decision making, can you find out what the organisation values?
◦ Processes, Ways of working together, shared criteria for decision making, what gets prioritized –
serve as norms, morals and functional guidelines
◦ These prioritization in decision making requires the definition and acceptance of certain metrics as
measures of value (ethical-legal dimension)

Founder/s mindset and pattern of solving problems

Culture as a tool for General Manager(reporting manager)
◦ As org size and scope expands
◦ Sum of autonomous decisions taken at individual level – What decisions did you take which was
reflective of the culture
◦ In your own experience, how did the culture guide you to make the right decision

Culture Capability and Disability – when does culture become a disability

Understanding Organisation Culture
What to look for when Joining
◦ Criteria for Inclusion – career histories of present members
◦ Power and Structure – Obtain, maintain and lose power
◦ Rewards and Punishments – what behaviours
◦ Manner of addressing problems – the response

Evaluating Culture in M&A

◦ Tangible and Intangible
◦ Organisation and Candidates(criteria for inclusion comes here)

Cultural Differences in Managing Cross functional Processes

◦ Subcultures within a culture
 How Employees Learn Culture
What was the culture of your organisation and how did you learn it?

Stories – Induction- what stories get shared? – OB to Mgr

Rituals – repetitive sequence of activities that express and reinforce the key values
◦ Pixar – Braintrust, dailies

Symbols – the kind of behaviours that are appropriate

◦ Leaders travelling in jets/business class/economy
◦ Failed innovation award, always using a Mah Vehicle

Language – jargons, acronyms, language specific to the organisation

 Creating and Sustaining Culture
How a culture begins:
1.Founders hire and keep employees who think and feel the way they do
2.Indoctrinate and socialise their employees to their way of thinking and feeling
3.Founders behaviour encourages employees to internalise values and beliefs
Ex – Haier, Tata, Netflix, Pixar, Amazon
Keeping a Culture Alive
1. Selection – candidate Organisation fit. Why is it critical?
Ex: Alternative Thinking at M&M – Camel and Fuji
Does the selection process tell about an organisation
2. Top Management: - Actions of top mgmt
Community orientation by Tata group
3. Socialization – helping new employees adapt to the prevailing culture
 Southwest Airlines
What are the business and operational challenges of the Airline Industry?

What does Organizational Excellence mean? How can you determine if an organization qualifies to be
organizationally excellent.
What factors drive Organizational Excellence

Given the complex nature of the airline industry, describe the key traits that have enabled Southwest’s
success throughout the years.
 Given the complex nature of the airline industry, describe the key traits that
have enabled Southwest’s success throughout the years.

Drivers Outcomes
Education and Training High Employee Retention
Hire for attitude train for skill Dedicated and loyal employees/Job fit
Universal aircraft model Gate efficiencies
Point-to-point travel Low cost structure
Customer centricity Loyal customers
No Company layoffs Job Security
Promote from within Engaged, Motivated, good employee and labor
relations
Leadership Strong Corporate Culture
What factors have helped Southwest create, maintain and sustain a Culture of Organizational Excellence

Organisational Leadership – Kelleher’s leadership style – eccentric and non traditional

methods – cross dressing – fun loving

Organisation Culture
◦ Hiring and Selection
◦ Hire for attitude and train for skill – why is this important for SWA or any organisation
◦ Pitfalls of recruiters
◦ Does the industry influence hiring practice?

Continuous training and on-boarding practices

◦ Why did SWA invest heavily in L&D?
◦ Can L&D be linked to financial gain?
◦ What can L&D help you evaluate?
◦ Linking L&D to org values
 What factors have helped Southwest create and maintain a Culture of Organizational
Excellence
Employee Retention and Recognition
Have you encountered a workplace with a very high turnover rate?
What factors at SWA contribute to Retention
Community Presence
◦ Do you consider community impact and CSR while making purchase decisions?
◦ 2013 – SWA generated 1,44,000 hours of service
◦ Community Giving Boards – developing local community

Customer Service Orientation

◦ Belief of being more of a customer service company rather than an airline
◦ Treat employees as individuals – same respect, care and attention to employees as it gives to its
customers
◦ Strong brand identity – What purchase decisions do you make because of a strong brand identity and
why?
 Is Southwest a Cult or Culture?

What is a Cult?
◦ A great devotion to a person, idea, movement, object or work
◦ Cult is a culture that looks unusual to outsiders
◦ Advantages and Disadvantages of a cult like culture

Layoffs and Organisation’s Culture

Listening Centre
Social Media Outreach
Planet Impacts
Four Attributes of Culture

Shared. Culture is a group phenomenon

Pervasive. Culture permeates multiple levels and applies very broadly in an
organization
Enduring. Culture can direct the thoughts and actions of group members over the
long term
Implicit. It acts as a kind of silent language

Determining an Organisation’s culture:

People interactions : fall on a spectrum from highly independent to highly
interdependen
Response to change: emphasize stability—prioritizing consistency, predictability,
and mainte- nance of the status quo—others emphasize flexibility, adaptability, and
receptiveness to change
 Flexibility

How people learn

Learning Purpose

Enjoyment Caring

Independence How people Interact Interdependence

Results Order

Authority Safety

Stability
 Eight Distinct Culture Styles
Caring focuses on relationships
Purpose is exemplified by idealism and altruism
Learning is characterized by exploration, expansiveness, and creativity
Enjoyment is expressed through fun and excitement
Results is characterized by achievement and winning
Authority is defined by strength, decisiveness and boldness
Safety is defined by planning, caution, and preparedness
Order is focused on respect, structure, and shared norms
Case: Amazon as an
employer

Does the people management strategy of care and compassion make business sense
How does the practice/culture of keeping employees always on the edge impact business in the
short and long run
Is Amazon’s employer brand as reported by the New York times sustainable? Why or why not?
Are employees thriving under Amazon’s workplace policies and culture or are they just barely
surviving
Does the people management strategy of care and compassion make business sense

Does Not Make Sense

Businesses are profit oriented Organisations, not public enterprises
Amazon runs on thin margins, hence economic performance is key to sustain
Responsibility towards shareholders
Care and compassion doesn’t increase the stock price, financial performance will
Amazon suits employees who are innovative and fine with working 24/7
Does Make Sense
A workplace of C&C enhances the employer brand
It might work as a competitive advantage
Reduce attrition
Its an era of triple bottomline
Markets and customers might not favor an organization engaged in inhuman practices even if its doing
financially well
C&C lead to positive outcomes like higher engagement that can lead to results.
 Amazon’s Culture Elements
Amazon Organizational Culture: harsh, but effectively contributing to the bottom line

1. Immense performance pressure. Amazon has a very intense corporate culture with an extensive emotional and even
physical pressure to some employees. Amazon organizational culture has been described as “breakneck-paced, and
notoriously cost-conscious, unrealistic performance standards, a work culture based on fear and the lack of recognition of
employee contribution.
Generally, pushy, combative and ‘bruising’ organizational culture is perceived as outdated. However, Amazon is proving
everyone wrong.
Only employees who can thrive under immense pressure and fast-paced environment can survive in this company. Its
culture is not for all

2. Constant reinvention and optimization of organizational culture. – Bezos “emphasizes the importance of constantly
assessing and adjusting Amazon’s culture so it never loses the agility, nimbleness, and hunger for experimentation”[
Bezos uses “two pizza rule” for meetings
is a data-obsessed company and this obsession also extends to the formation of its corporate culture
 Amazon’s Culture Elements
3. Customer-centricity. Amazon positions itself as one of the most customer-centric companies in the world. Amazon
vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they
might want to buy online.”
High level of customer-centricity is one of the cornerstones of Amazon corporate culture with direct implications to a
wide range of organizational processes and procedures.
4. Operating like a startup. Despite the gigantic size of the company that employs 1,3 million people worldwide, Amazon
attempts to maintain startup mentality in terms of risk-taking, experimentation, flexibility of the business and ‘hunger’
for success.
The founder and the first CEO Jeff Bezos was never tired of repeating ‘Day 1’ mantra and the new CEO Andy Jassy is
following the same suit. “Day 1”is about being constantly curious, nimble, and experimental. It means being brave
enough to fail. “Day 1” approach is deeply integrated into the core of Amazon corporate culture.

5. Diversity among workforce. Valuing diversity among the workforce is also placed at the core of Amazon
organizational culture. The company has GLAmazon, an official employee affinity group for gay and lesbian employees,
as well as, Black Employees Network and Women in Technology groups.
How does the practice/culture of keeping employees always on the edge impact business in the short and long run? Is it
beneficial
What culture do you create by always keeping employees on the edge
Eustress and Distress – Positives and Negatives
Positives of Keeping Employees on The edge:
• motivates them to work harder, improves productivity
• Produces a sense of meaning and fulfillment, excitement
• Fosters creativity and innovation
• Strengthens employee’s coping mechanisms
• Gets people to share resources and work together for the overall goals

Negatives of Keeping Employees on The edge:

Anxiety stress and even depression

Unpleasant feelings
Decreases performance, creativity n innovation
May lead to mental and physical illness
Work life n family conflicts
Overwhelms coping abilities
Is Amazon’s employer brand as reported by the New York times sustainable? Why or why not?

Yes it is Sustainable
 It will attract only those employees who are passionate about innovating, are open to criticism of their developed
products, and are emotionally intelligent enough to take the criticism in stride. These employees enjoy the “high” of
innovation, no matter the context.
 As a result of the eustress that Amazon is inducing in its employees, star performers are thriving at Amazon. This
segment of people may be attracted to Amazon as an employer brand.
 The company is a professional organization and employees are expected to give their best with minimum resources,
especially in times of global recession and low margins. Hence, frugality is justified.
 Optimal resource utilization is the aim of every individual, and the same is true for companies.
 The work environment at Amazon motivates employees to give their best.
 It gives employees confidence that they are working with the best minds in the industry.
 Amazon is not forcing people to join them. Employees are free to quit if they want.
 Amazon very clearly informs potential recruits about what it is like to work at Amazon.
 Amazon is paying unhappy employees to quit, so those who are not fitting in with the organization are free to quit and
leave.17
 No, it is not sustainable:
 Companies need to adapt to changing demographics and employee preferences, create new competencies, and
rejuvenate their organizations. Amazon appears to lag behind in this area when compared to other firms in the industry.
 Amazon seems to have failed to keep pace with the evolving needs and preferences of employees.
 Amazon does not see the benefit of hiring employees from different age groups.
 The practice is causing distress, not eustress; that is why people cry at their desks.
 Amazon seems only to recruit and select talented people. By failing to follow through with development and retention
strategies, Amazon is jeopardizing its sustainability.
 Given such a callous work culture, talented employees may prefer to join Amazon’s competitors, who provide a better
work atmosphere and are not as stingy as Amazon.
 This is the era of the Millennials, or Generation Y, for whom transparency is of the utmost importance. They post their
lives on social media sites and expect the same from their employer.
 The practice of sending secret feedback to bosses at Amazon doesn’t sit well with the values of Millennial employees.
 Amazon’s employee value proposition might be losing its effectiveness because other employers are skeptical about
hiring from Amazon’s employee talent pool.
 The influx of Millennials into the workforce brings with it a growing interest in work-life balance policies and
practices. Many of Amazon’s competitors are offering flexible work practices in an attempt to attract and retain the best
talent.
 Asset Vs Liability
Culture As an Asset

◦ Organisational performance
◦ Employee engagement
◦ Advocacy
◦ Strong employer brand
◦ Pride

Culture as a Liability

◦ Institutionalisation
◦ Barriers to Change
◦ Barriers to diversity
◦ Toxicity and Dysfunctions
◦ Barriers to M&A
 Case: Uniting Spirits: The Path to a New Culture at Diageo India

• How would you describe the culture of Diageo India immediately after the takeover of USL? Why was there
a need for change in Organizational Culture? (Use a framework to map the erstwhile USL culture and
compare the same with Diageo‘s global culture?)

• Discuss the role of the HR and business leaders in the context of the organizational culture change process
at USL by Diageo? Explain the different levels of acculturation that takes place?

• After the takeover, what aspects of culture at Diageo India needed to be strengthened, what needed to be
continued and what needed to be discontinued. Justify?

• Evaluate the culture building journey at Diageo India. Analyze the programmatic actions and initiatives
across the four pillars – compliance, non-hierarchy, collaboration and celebration.

• What are the results of the culture change initiatives at Diageo India? What needs to be done further to
complete the culture building journey? How can it be sustained and institutionalized?

• Can you give some recent examples of mergers in Indian companies’ context and can you help explain the
levels of acculturation in those entities. Was there a difference in the approach and what necessitated the
same?
 How would you describe the culture of Diageo India immediately after the takeover of USL? Why was there a need for change in Organizational Culture? (Use a
framework to map the erstwhile USL culture and compare the same with Diageo‘s global culture?)

USL Culture – Hierarchical, transactional and Traditional – mosaic of different cultures, centralized
authority, Top down
Using Groysberg F/W – USL would be Authority + Results
Diageo inherited an entire history and legacy of cultures

Diageo Culture
•Well established global culture
•Passionate and proud about what they do
•Culture marked by caring, enjoyment and purpose

Important to look at Positives of both cultures

Discuss the role of the HR and business leaders in the context of the organizational culture change process at USL by Diageo? Explain the different levels of acculturation that takes
place?
Role of Leaders – Psychological Safety

Key Area to work on : Business Integration

BI = TI + HI
TI is Capability transfer, Resource sharing, operational integration
HI is by integrated people practices, values, culture, positive attitudes, shared identity
Acculturation Process: Four Levers of Evolving Culture
•Analysing existing culture and articulating Aspirational Culture
•Align leaders with target culture
•Having culture conversations
•Org Design – PMS, L&D, degree of centralization, reducing hierarchies
After the takeover, what aspects of culture at Diageo India needed to be strengthened, what
needed to be continued and what needed to be discontinued. Justify?
Culture Change is not an Event – It’s a process
Evaluate the culture building journey at Diageo India. Analyze the programmatic actions and initiatives across the four pillars – compliance, non-hierarchy, collaboration and celebration.

Artifacts: Created Artifacts - that reflect the new aspiration and broke down the ones that didn’t serve it

Espoused Values and Shared Assumptions – From Hierarchical to Egalitarian

Factors that go into culture shaping – history of the organization, leadership conviction, prioritization, role
modelling, Focus on Imperatives (Non-Negotiables – Compliance in the case)
 What are the results of the culture change initiatives at Diageo India? What needs to be done further to complete the culture building journey? How can it be sustained and institutionalized?

• Behavioural Change in Leadership – reflect on which behaviours needed to change to reflect the new culture
• Positive role modelling by Leaders
• Creating Psychological Safety – pulse surveys by leveraging digital platforms, AI based chatbots. Taking action
• Frequent Culture interventions – catch up sessions, easy evenings, chai-pe-charcha
• Enabling Continuous Learning – Compliance Champions & Ambassadors, Tabtitude, Wall of Wisdom
Can you give some recent examples of mergers in Indian companies’ context and can you help
explain the levels of acculturation in those entities. Was there a difference in the approach and
what necessitated the same?

Key Takeaway’s

Culture change involves thoughtful programmatic actions

Leaders play a crucial role
Culture cant be built in a day – it’s a continuous process that often doesn’t end
ORGANISATIONAL CHANGE
 Life at MBA – What did you
change?
STARTED

STOPPED

CONTINUED
 FORCES OF CHANGE
FORCE

NATURE OF WORKFORCE

TECHNOLOGY

ECONOMIC SHOCKS

COMPETITION

SOCIAL TRENDS

WORLD POLITICS
 FORCES OF CHANGE
FORCE

NATURE OF WORKFORCE APPAREL COMPANIES; MOVED PRODUCTION TO ASIA , RISE OF GIG, AGEING POPULATION

MUSIC / ENTERTAINMENT – CDS TO IPOD

TECHNOLOGY CDS TO NAPSTER TO ONLINE STREAMING
ONLINE RETAILERS / RETAIL CHANGED

ECONOMIC SHOCKS BANKS CHANGED - INCREASE REGULATIONS AFTER GFC, DEMONITISATION

COMPETITION MEDIA – ADVENT OF BLOGGING SITES VS JOURNALISM

SOCIAL TRENDS ELECTRIC VEHICLES \ VEGANISM (COMPANIES LIKE BEYOND MEAT) , FOCUS ON ESG

WORLD POLITICS AFGHANISTAN TALIBAN RULE IS LEADING TO MORE MEDICAL TOURISM IN INDIA
BACKLASH TOWARDS CHINESE COMPANIES POST COVID
Pierre Frankel… How is he going to unfreeze the
situation to change it?
 CULTURAL CONTEXT FRANKEL FACED

What are the Economic, Political and Organisational Context Pierrie Frankel faced upon arriving in Moscow?
Do you think there is need to change in the Russian Operations? Why

Socio-Economic

Political

Organisational
How did different national cultures (Russian and Swiss) play a role in creating a need for change
 How did different national cultures (Russian and Swiss) play a role in creating a
need for change

Blue -India
Purple -Russia
Green -Switzerland
Orange -USA

85
https://carnegieendowment.org/2022/09/07/my-country-right-or-wrong-russian-public-opinion-on-ukraine-pub-87803
86
Sources of Resistance to Change
Individual
◦ Habit – programmed responses
◦ Security – ppl with high need of security
◦ Economic factors
◦ Fear of the Unknown
◦ Selective Information Processing

Organisational Sources
◦ Structural Inertia
◦ Limited Focus to Change
◦ Group Inertia
◦ Threat to expertise
◦ Threat to established power relationships
Case: Pierre Frankel in Moscow (A): Unfreezing Change

What forces created resistance to change for Pierrie Frankel?

Sources of Resistance to Change faced by PF

Loss of Control
The Difference Effect
Loss of Face
Concerns about Future
Past Resentments
Threat of disruption in existing network flow
What obstacles does Pierre Frankel face/ Sources of resistance to change of all stakeholders?

People Why

MD - Real Threat, Loss of control, Loss of face

LOB Leaders - Ripple effect, more work, alignment with MD
Head of HR - Uncertainty, personal relationship with MD
Subsidiary employees - Frankel is a temp head, Indifference
 Kurt Lewin Model
DRIVING FORCES

Movement Refreezing to
Unfreezing the status quo towards the make the change
future goal permanent

RESTRAINING
FORCES
Kurt Lewin Model
 Approaches to Managing Change

Kurt Lewin’s Three Step process

Unfreezing the status quo (state of equilibrium) – driving forces and restraining forces
Movement to the desired state
Refreezing the new change to make it permanent
1. What steps has Pierrie Frankel has begun taking to achieve Organisational Outcomes? What will you advise
him to reinforce and consolidate change?

Who should be ignored or neutralized or converted?

 Managing Director - Lebedev

 LOB Leaders

 Head of HR - Nadia

 Subsidiary Employees

 Corporate Executives
Session 11 - Case: Publicis Groupe 2016: Maurice and the Millennials

 What were the changes happening in the advertising, media and marketing industry that created a need
for change?
 Why was the Omnicom merger proposed? What were the anticipated benefits from this merger?
 Why was Sapient acquired? What gaps did it fill for Publicis’s business?
 Why were synergies and departmental collaboration needed across different business in Publicis Groupe?
 What steps were taken by Publicis to transform itself to serve its clients better and evolve itself into a
transformative organization.
 Session 11 - Case: Publicis Groupe 2016: Maurice and the Millennials

 What were the changes happening in the advertising, media and marketing industry that created
a need for change?

 Why was the Omnicom merger proposed? What were the anticipated benefits from this merger?

 Why was Sapient acquired? What gaps did it fill for Publicis’s business?
Digital Scale, Omni Channel & E commerce knowhow, Consulting , Technology &
Presence in India, Digital Revenue became 50% ,Entrepreneurial culture, Experience of
working in cross functional teams

Case
 Why were synergies and departmental collaboration needed across different business

Discussio
in Publicis Groupe?

n Anchors
 What steps were taken by Publicis to transform itself to serve its clients better and evolve itself
into a transformative organization
4 Solution Hubs(Arthur Sadoun,Herrick,King,Colucci) | Chief Revenue Officer leadings
GCLs
The Driving and Restraining Forces
Driving Factors:
1. The A&M industry was consolidating – cloud, big data, mobility, interactive media and industry
transformation (industry 4.0)
2. The media world going digital
3. Preference of Millennials and their rising numbers in ad agencies
4. Both organic and Inorganic growth
5. Competitor landscape
Kotter's 8 step model
97
 KOTTERS EIGHT STEP MODEL
1.Establish an urgency- Help others see the need for change through a bold, aspirational
opportunity statement that communicates the importance of acting immediately
2.Form a coalition – Power of one, Creation of a creative board across agencies, bringing in
Millennials
3.Create a new compelling vision – Power of One – to serve clients better
4.Communicate that vision – Both Levy and Sadoun , Power of One Roadshow
5.Empower people to act on the vision – Creation of Drugstore
6.Plan and create rewards for short term wins – P&G account
7.Consolidate the improvement, reassess changes – Train the Trainer
8.Reinforce changes by bringing a link between new behaviours and Org success – compensation
linked to collaboration, sponsoring hackathons, entrepreneurship
OMNICROM ACQUISITION- WHY IT DID NOT MATERAILISE

99
Why was Sapient acquired? What gaps did it fill for Publicis’s business?
 SAPIENT ACQUISITION
Publicis bought Sapient ] for a total of $3.7 billion, a 44 percent premium over its market valuation of
$2.46 billion.

Sapient’s sales growth was in the double digits- 12.3 percent increase from 2012, 2010 to 2013
compound annual revenue growth was 15 percent.

Publicis gained five key things:

1) digital scale to consolidate Publicis’ leadership position in that area;
2) in-depth knowledge of omni-channel and e-commerce;
3) a consulting arm;
4) technology; and,
5) a well- established operation in India. -talent from 13,000 Sapient employees (8,000 based in
India), and a leap in its digital revenue to half of all revenue overall (a 2018 target achieved in
2015).
6) the capability to work in cross- functional teams and distribute work around the world. “
7) a culture closer to millennial and entrepreneurial, disdain for hierarchy

101
What steps were taken by Publicis to transform itself to serve its clients better and
evolve itself into a transformative organization
The Change Wheel

103
 Common Theme, Shared Vision
 Change efforts at Publicis were always client-centered
 The Power of One goal: “To be the admired force for business transformation, driven through the alchemy of
creativity and technology”
 Publicis frequently connected its celebrated history to new initiatives such as The Drugstore and Viva
Technology Paris

Symbols and Signals

 Invited millennials and young leaders to the Power of One conference
 “No silo, no solo, no bozo”
 Acquired Sapient; this was not just symbolic, but became a signal of intentions for where Publicis wanted to go
 Publicis 90; using the company’s 90th anniversary to encourage innovation for its future
Governance and Accountability Structure
 Reorganized the Groupe into solution hubs and placed new leaders in charge
 Created Global Client Leaders, Publicis One, and Regional Leadership Teams to help clients access the best
Groupe assets
 Turbo Charged ReSources initiative sought to consolidate and streamline operations such as back-office
functions, finance, legal, and global IT
104
Education, Training and Action Tools

 Junior executive leadership training program

 Power of One Roadshow and the train the trainer materials being created from it
 Groupe personnel visited Sapient Nitro India
Champions and Sponsors
 Promoted leaders from within the Groupe to lead solution hubs
 Sapient Inside program placed a Sapient representative in major offices around the world to serve as a
resource and facilitator
 Brought millennials and young leaders to the Power of One conference, signaling them out as entrepreneurial
generation who could help lead change
 Levy, Kevin Roberts, and Olivier Fleurot presented as part of the Power of One Roadshow; the train the trainer
materials being developed from it aimed to enlist other champions of the Power of One
 Publicis 90 participants included employees, who by taking part in the contest and developing their ideas,
championed the change sought by Levy

105
 Policy, Procedures, System Alignment
 Global Client Leaders helped coordinate activities for top clients, brought different areas of the Groupe together
 Regional Leadership Teams identified regional assets
 Sadoun’s creative board could cross agency borders to bring together the best resources for critical creative projects and
clients
 Sapient Inside helped facilitate communication between Groupe personnel and Sapient
Measures, Milestones, and Feedback
 Won the P&G dish detergent account as a result of new capabilities; showed the new structure and initiatives could work
 90th anniversary of Publicis Groupe’s founding celebrated with tech conference and startup contest
 In late 2015, Levy held a conference call with Power of One conference attendees to discuss and get feedback on
transformation plans

Rewards and Recognition

 Efforts were made to tie compensation for GCLs to their success at encouraging brand collaboration
• Sadoun highlighted that Publicis Communications continued to win creativity awards

106
 Quick Wins and Local Innovations
 The Drugstore innovation lab; “Hack the Brush” session
 Publicis 90 contest promoted innovative ideas
Communications, Best Practice Exchange
 Global Client Leaders helped coordinate activities for top clients, brought different areas of the Groupe
together
 Regional Leadership Teams identified regional assets
 Sapient Inside helped facilitate communication between Groupe personnel and Sapient
 Power of One Roadshow

107
OUTCOMES OF THE CHANGE PROCESS
1. ability to create an end to end model in every type of communication with a single point of
contact, bringing best of their capabilities whatever be the brand
2. Elimination of silo’s – creation of Always# LikeaGirl campaign
3. All clients under a single P&L, bringing all resources with no fences or admin hassles
4. Collaboration across all HUBS (leveraging a matrix structure)
5. Common Level of Shared values and acceptance of sub-cultures across agencies
6. Ability to support 90 digital entrepreneurship startups or ideas, motivating millennials in
particular
 Overcoming Resistance to change
Communication
Participation
Building Support and Commitment
Develop Positive Relationship
Implementing Changes fairly
Manipulation and Cooptation
Selecting people who accept change
Coercion
 Understanding Leadership
Can you think of examples of where leadership was displayed – Trait, Values and Behaviors on the board

Leadership: The ability to influence a group towards the achievement of a vision or set of goals
Ratan Tata example
 UNDERSTANDING LEADERSHIP THROUGH HIDDEN FIGURES
What makes a Leader

What do you learn about Good Leadership from the movie?

1. Removing barriers for Employees

◦ Key task of any good leader is to remove barriers that prevent employees from doing their best
◦ A Leader enables others

Barriers in the movie (Segregation):

◦ Washroom, Teapot, masked reports

Al Harrison – realized the impact the barriers on the women in his project, he removes the barrier (symbol) which
sends a Signal and enables Katherine to progress on the job.
Simply put he demonstrated behaviour of that of an ally. His action revealed several dimensions:
◦ Humanity – Demonstrating genuine care and concern for others, irrespective of how distant others might be (White male
showing concern for black female).
◦ Justice – ensuring that people are treated fairly, keep personal biases to a minimum while making decisions, providing voice
◦ Courage – Doing the right thing even if its unpopular; showing unrelenting determination, confidence and perseverance in
confronting difficult situations

Use the last point to bring in the topic of “Authentic Leadership”

 AUTHENTIC LEADERSHIP
Authentic Leadership is characterized by:
Leaders who know who they are; know what they believe in and value; act on those values and beliefs openly and
candidly
Bring in AL Harrison and how he acts openly and candidly on his beliefs and values. (Dramatic way of breaking sign on
the washroom door)
It is courageous given how the society was during that time. Strong class divide, segregation
Dimension of Authentic Leader Movie
Stick to their ideals Rejection of Segregation by AL
Are Humble AL most of the time is respectful to all
Create Positive Energizing effect heightening Successful space mission
teamwork, productivity and performance
Followers tend to develop strong affective Katherine develops a visible affinity towards AL and displays OCB
commitment and trust

Ratan Tata and Flat Tyre

 SERVANT LEADERSHIP
A leadership style marked by going beyond the leader’s own self interest and instead focusing on
opportunities to help followers grow and develop
Because Servant Leadership focusses on serving the needs of others, you can see its impact from the
outcomes for the wellbeing of followers

Effects of Servant Leadership

Higher Job Satisfaction
Dutiful and Responsible subordinates
Focus on growth and advancement
Increases Team Potency (high ability of team)

Servant Leadership is the future – Engages the team “empathetically” – Listening, Empathy, Healing
and Stewardship
SL is not giving up power or ceding responsibility, or becoming a martyr or losing objectivity
 UNDERSTANDING LEADERSHIP THROUGH HIDDEN FIGURES
2. Showing Resilience : daring to be first to break new ground
Mary Jackson and Judge – Securing an degree to become and engineer in NASA
Scene: when questioned by the judge on why she should be allowed…her reply was, “ out of all the cases you are going to
hear today, which one will matter a hundred years from now? Which one will make you the first?
Leadership Behaviours demonstrated:
1. Transcendence: Sense of purpose and seeing possibilities where others don’t.
◦ Making the Judge the main character and hero (and not making her need to secure an engineering degree the main point)
◦ Successfully building an emotional bridge between how the judge saw himself and the situation she was in
◦ Presenting a human argument and not a rational one (involving law, rights and justice)

2. Integrity: Striving to be truthful and straightforward with oneself and others. Remaining open and honest in transactions
◦ Jackson actually didn’t get what she wanted
◦ But showed good judgement in accepting an alternative the judge crafts for her, rather than wasting time and energy on a battle she
doesn’t need to win to get what she wants
◦ The judge also showed humanity courage and justice – because he took a decision that could have had a negative outcome on self and
kept his personal bias outside while making a decision
◦ USE THE INTEGRITY THREAD TO COME TO EHTICAL LEADERSHIP
 ETHICAL LEADERSHIP
Leadership is not “Value-Free”.
In assessing leadership effectiveness, one needs to address the “means” a leader uses to achieve goals
The role of a leader in creating ethical expectations is crucial.
Research says El is effective because:
Leaders set moral expectations
EL leads to less CWB (Counterproductive work behaviours)
EL reduces interpersonal and intrapersonal conflict
Role Models hence a bigger impact on commitment, turnover intentions and driving
ethical behaviour down the command structure

For EL to be effective:
Leaders have to openly express their ethical beliefs
Leaders have to build trust
Create an ethical culture - rewards and punishments
 UNDERSTANDING LEADERSHIP THROUGH HIDDEN FIGURES
3. Showing Respect and Empowering people– Small Gestures matter
Here you ask the students where in the movie you saw respect and empowerement
1. Start of the movie, the police officer
2. Interaction of John Glenn
3. Dorothy Vaughan teaching her team the new technology – servant leadership
4. Al breaking protocol to include Katherine in the meeting (Boss Vs Leader analogy)
Result – foster a sense of belonginess, Become more inclusive, lead by example for others to emulate, create collaborative
environment
Leadership Reputation – Every leader or future leader should ask 2 questions:
1. What do I want to be known as
2. What do I want to be remembered as
SPEAK ABOUT STRAFFORD here – Was he wrong in what he was doing
Integrity+Humanity+Collaboration
GREAT LEADERS HELP OTHERS TO SUCCEED