This presentation is based on Chapter 3 of the text book Organizational Designs for Excellence by Khandwalla.

1. - R A S I K A R S A L O D K A R
M 1 4 0 8 7 ( H R B A T C H )
Keys to Organizational
Excellence

2. Concept
ORGANIZATIONAL EXCELLENCE
 Excellence = Surpassing or outstanding achievement
 Forms of Human excellence:
1. Being best amongst the competitors ( excellence associated with the champion)
2. Excellence of the perfectionist ( Doing much better than what one could in the
past)
3. Performing far better than the general standard in a field
4. Performing and succeeding at a difficult task that can be accomplished only
after a long haul
5. Pioneering ( Doing something unique, something no one has done before)
6. Invention or Innovation
7. Creative excellence
8. Altruism
 Excellences are not cost free
 Human excellence is manifested through individual effort and team effort both
 Organizational design for excellence is a matter of promoting individual and group
level excellence and synchronising it to facilitate excellence in achieving
organizational level goal

3. Forms of Organizational Excellence
ORANIZATIONAL EXCELLENCE
1. Champion-type organizational excellence OR Competitive Excellence ( The best
performance in a competitive field during a particular period )
2. Rejuvenatory Excellence ( Sick organizations which have dramatically improved their
performance)
3. Institutionalised Excellence ( Sustained high corporate performance over a fairly long
time )
4. Creative Excellence ( Uniqueness, pioneering spirit and innovativeness)
5. Missionary Excellence ( Altruistic or social change oriented voluntary organizations)
6. Versatile Excellence (focuses on its performance in terms of profitability, growth or
efficiency and also on the satisfaction of the needs of its staff, on meeting its social
responsibilities, and commitments to other important stakeholders )
“EXCELLENT ORGANIZATION: ONE THAT MEETS ALL THE NEEDS AND
EXPECTATIONS OF ITS STAKEHOLDERS”

4. Needs
ORGANIZATIONAL EXCELLENCE
Type of Excellence Why we need it?
1. Competitive Excellence To increase the adaptability, market orientation and
resourcefulness of Third World organizations to reach
the levels of global efficiency
2. Rejuvenatory Excellence To avoid the sickness proneness of sizeable Third World
organization
3. Institutionalized Excellence Needed where the whip of competitive pressure is weak
or where the top management continuity is problematic
4. Creative Excellence For innovative and fresh approaches in many ossified
spheres of the Third World
5. Missionary Excellence To accomplish vast social or economic missions in the
context of Third World backwardness
6. Versatile Excellence For those organizations who have numerous
stakeholders and pursue many different goals

5. Types of Excellence
ORGANIZATIONAL EXCELLENCE
Heading/ Type Competitive Excellence Rejuvenatory Excellence
1. Chief
Characteristic
Being outstanding within a field
of competitors vis-à-vis a clear-
cut criterion or a few clear-cut
criteria of performance
Vast improvement over
previous performance
2. Example The company with the best or
outstanding return on
investment within an industry
The company which goes
through a bad patch for a long
time and then progresses
3. Must Haves • Clear-cut goal and strong
management commitment to
excel at them
• Tight control over operations
and coordination of activities
through team work
• Excellent monitoring
mechanisms for operations
• Strong high energy
leadership that galvanizes
the organization and leads
from personal example
• Quick pay-off actions
• Great deal of internal
communication
• Negotiations with external
stakeholders

6. Types of Excellence
ORGANIZATIONAL EXCELLENCE
Heading/ Type Institutionalised
Excellence
Creative Excellence
1. Chief Characteristic Sustained high achievement
over a long period of time on
important performance
parameters even when there is
little pressure for excellence
Commitment to pioneering,
innovation, experimentation,
discovery and dynamic
change
2. Example General Electrics, one of the
original 12 of the NYSE
Google and Apple are the
best examples
3. Must Haves • Institutionalism of good
management practices
• High order of professional
management
• Top management continuity
and orderly succession
• A leadership rooted in
expertise, competence
and creativity
• Desire to dazzle the world
with something
breathtakingly new
• Meteoric rises for people
with fresh ideas

7. Types of Excellence
ORGANIZATIONAL EXCELLENCE
Heading/ Type Missionary Excellence Versatile Excellence
1. Chief
Characteristic
Dedication to some social mission or
ideal and the ability to make
outstanding progress in achieving this
mission or ideal
Desire and ability to meet
the expectations of all the
significant stakeholders of
the organization and
management should think as
a trustee
2. Example Blind Men’s Association, Being
Human Foundation, etc.
Governmental organizations
or large scale private
organizations
3. Must Haves • Altruistic goals
• Limited resources
• Idealistic leadership
• Decentralized and participative
decision making
• Very strong identification with the
organization’s clientele
• Multiple goals
• Seek reasonable
profitability
• Good growth rate to
create opportunities for
growth for its staff and
managers
• Good customer service

8. Commitments and Excellence
ORGANIZATIONAL EXCELLENCE
Four polarities of commitments:
1. Commitment to a few versus many stakeholders
2. Commitment to the short run versus to the long run
3. Commitment to the organization itself versus commitment to a
larger entity
4. Commitment to a novel versus to familiar means of functioning

9. Studies of Organizational Excellence
ORGANIZATIONAL EXCELLENCE
1. PAUL’S STUDY
• Studied 6 large, successful developmental programmes in a s many countries
• Findings:
a) Successful programmes invested heavily in a learning strategy, earning
credibility and acceptance
b) Organizational structure needs to be flexible and to adapt to the overall strategy
for programme success
• Learning strategy: Started with one goal and later diversified their goals and
activities sequentially and in a phased manner
2. GANESH’S STUDY
• Studied 6 Indian academic (management) institutions to find out the relationship
between institution building processes and the performance of the institution
• 3 criteria for assessment: How successful they had been in developing capability
appropriate to their missions; how innovative their thrust had been and what sort
of an impact they were able to make through their ‘market’ penetration

10. Studies of Organizational Excellence
ORGANIZATIONAL EXCELLENCE
2. GANESH’S STUDY (CONTINUED)
• Ganesh categorised institution building process into birth process, start up processes,
development processes, renewal processes, institutionalisation processes
• Stronger the processes, better the overall performance of the institution
• Different group of processes contributed to excellence on different performance of the
institution
3. PETERS AND WATERMAN’S STUDY
• Identified 43 U.S. companies having a fine track record over 1961-1980
• Executives from these companies were interviewed to understand the better sorts of
management practices that contribute to corporate excellence in many organizations
• Eight characteristics of excellent corporate management: Bias for action and aversion
to excessive analysis; being close to the customer and emphasis on learning from
customer; autonomy and entrepreneurship; productivity through people, the
treatment of rank and file as the root source of quality and productivity; hands-on,
value driven management; stick to the knitting; simple organization structure and
systems and lean staff at the corporate headquarters and simultaneous loose-tight
properties.

11. Studies of Organizational Excellence
ORGANIZATIONAL EXCELLENCE
4. KHANDWALLA’S STUDY
• An Indian study of 75 mostly corporate organizations
• A dynamic model of management ‘Pioneering-Innovative’ or PI mode was identified
• High scoring managements had an entrepreneurial – organic mode of management
5. MAHESHWARI’S STUDY
• Studied the decision-making styles of a dozen Indian Corporates, half in the public
sector and half in the private sector
• Decision styles were related to organizational performance through questionnaires
• High scores: Management committed to decentralisation, operating autonomy for the
managers, a consultative leadership and group decision making
• Low scores: Centralised, autocratic mode of management

12. Studies of Organizational Excellence
ORGANIZATIONAL EXCELLENCE
6. JAIN AND ANSARI’S STUDY
• Identified 29 first generation entrepreneurs of India
• Many used two managerial thumb rules:
1. Select a product line which is best suited to one’s own educational and work
background and choose a factory location where family linkages are very sound
2. Emphasis on development of indigenous technology; emphasis on research and
development; initiating the building up of management know-how by the
entrepreneur initially handling everything from production to marketing to office
work; etc.
7. MANIMALA’S STUDY
• To examine how pioneering and innovative (PI) entrepreneurs differ from non-PI
entrepreneurs in the decision rules or ‘heuristics’ they use in running their business
• 164 Indian cases were studied and an index for innovativeness was developed
• The study indicates alternative sorts of management in competitive domains; one that
goes for exclusive niches through innovation and the other that seeks survival and
growth in familiar terrains

13. Leadership and Organizational Excellence
ORGANIZATIONAL EXCELLENCE
1. Likert’s Study
2. Bowers and Seashore’s Study
3. Bennis and Nanun’s Study
4. Singh and Bhandarkar’s Study
5. Woycke’s Study
6. Hall’s Study
7. George’s Study
8. Khandwalla’s Study

14. Studies examining the relationship between professional management
systems and practices and organizational performance
ORGANIZATIONAL EXCELLENCE
1. Negandhi and Prasad
2. Thune and House
3. Enthemkuzhy
Studies on good fit between components of organizational
design and features of the operating context
1. Lawrence and Lorsch’s Study
2. Child’s Study
3. Khandwalla’s Study (1)
4. Khandwalla’s Study (2)
5. Miller and Friesen’s Study

15. ORGANIZATIONAL EXCELLENCE

16. ORGANIZATIONAL EXCELLENCE