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Organization Theory and Design (MGT504) Assignment No.01



Learning Objectives
• To develop case-based solution after reading and analyzing the scenario
• To make students familiar with the concepts of alignment of “culture and structure in organizational life cycle phases” and its impact on organizational effectiveness
• To make them familiar with approaches like TQM


The Case: Since its inception in the late 1940s, Vitol has proved itself to be the premier company in the cardiac pacemaker industry. The corporation business has shown a steady growth in annual sales of Rs. 450 million and a size of 3,000 employees in 1960. The company has also diversified its line of products in bio-electronic health care items besides dominating the pacemaker industry.
An explicit humanistic vision is the driving force behind operations of Vitol since its very beginning. The stakeholders described the Vitol culture predominantly to be a "scientific-technical hub" which showed dedication to preserving human life. The recipe to sustain in the environment was risk sharing and constant contact by maintaining an informal structure led by the CEO of Vitol, Mr. Riaz. He also used to convey corporate mission to every new employee during a luncheon especially held to socialize new employees. The company experienced steady and predictable growth owing to this value-laden system approximately for 20 to 25 years in an industry marked with little competition and offered steady and predictable growth.
By the mid 1960s, however, when the organization had grown to 3500 employees and 500 million in sales, grave product problems started emerging and invited increasing regulatory attention and criticism for the cardiac pacemakers. During this period, a new CEO Ali was appointed who introduced bureaucratic control systems to regulate the prevailing mismanagement in the organization. The culture rooted in humanistic vision claimed to have contributed to the organization’s success till then, was now blamed to be seen as insular, with an over emphasis upon internal processes only. These internal organizational changes were accompanied by the market transition offering price-based competition with the onset of new payment methods. This was the period when employees of Vitol started comparing between the "old culture" and the "new culture", between a clear sense of purpose and cost control, between empowerment and bureaucracy, between risk sharing and risk avoidance, between informal structure and formal controls in place in mid 60s. This period was also marked by heightened conflict between top management and employees and organization witnessed several operational disruptions in otherwise relatively stable growth of revenues.
*Note: See sample solution format at the end of the file.
Another leadership change in 1973 attempted to align the corporate mission and the operative goals. To resolve the issue of contradictory logics of formal structural controls and the inherent demand of the business being informal owing to its innovativeness, the new CEO worked on introducing complementary values along with structural changes in order to integrate the organization. To create commitment among employees with the new values, the new administration reinforced mission statement and its implication at every level. These changes helped restoration of company’s profitability and growth. The company’s products again started to make appearance in the list of successful products. To add to the above mentioned positive changes, the company also empowered employees while simultaneously holding them accountable so that they not only give input to improve the products but own those ideas as well during the implementation phase. Accountability also reduced the likelihood of making mistakes, this way company’s dependence on formal quality control department got diminished.
Assignment Requirements:
1. Your task is to identify the culture of Vitol at different stages of organizational life cycle from this case. Also, give instance of the remarkable event/statement which leads you towards determining that organizational culture.
Note: there might be more than one type of culture at different stages and the case might not depict all the stages of organizational life cycle, so identify carefully the stages and the corresponding culture. Also first two requirements are to be filled in the given table attached with the case. (3+3+3=9Marks)
2. What type of organizational structure would fit the culture/s, you have identified in Part 1. (3Marks)
3. If the organization wants to implement Total Quality Management (TQM) system to infuse quality in everything they do, what two factors from the above case do you think will assist them in the smooth transition? (1.5+1.5=3Marks)
IMPORTANT:
24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due date should always be treated as final to avoid any inconvenience.
DEADLINE:
• Make sure to upload the solution file before the due date on VULMS.
• Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
• Use the font style “Times New Roman” or “Arial” and font size “12”.
• It is advised to compose your document in MS-Word format.
*Note: See sample solution format at the end of the file.
• You may also compose your assignment in Open Office format.
• Use black and blue font colors only.
RULES FOR MARKING:
Please note that your assignment will not be graded or graded as Zero (0), if:
• It is submitted after the due date.
• The file you uploaded does not open or is corrupt.
• It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.
• It is cheated or copied from other students, internet, books, journals etc.
Note related to load shedding: Please be proactive
Dear students! As you know that post mid‐term semester activities have been started and load shedding problem is also prevailing in our country now a days. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date.
Sample Solution Format
Make sure to expand the columns to adjust to the text you will insert while attempting answers.
Part 1 and 2:
Stages of organizational life cycle
Remarkable event/statement which led you to determine the organizational culture
Culture of organization
Structure of organization
*Note: See sample solution format at the end of the file.


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kindly share ideal solution

please share the solution

kindly share some ideas

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kindly share solution idea

1. Growth Phase This is sometimes divided into an early growth phase (fast growth) and maturity phase (slow growth or no growth). However, maturity often leads to organization decline.

structure ??

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