Impact of technology and culture on organization

IMPACT OF TECHNOLOGY & CULTURE ON

ORGANISATIONPRESENTED BY

GROUP – 5Amar Mohanty(03)

Anjan Mishra(5) Ashok Panda(07)

A.Ram kausal(10)Biraja prasanna Dash(12)

J.Padmanav) Rao(19)Sabyasachi Tarai(39)Sandeep Behera(41)Santwna Sahoo(43)

Soumya ranjan Padhi(52)

Saturday, April 8, 2023GROUP = 5 2

TECHNOLOGY Technology refers to the

information ,equipment, techniques & processes required to transform inputs into outputs .

Technology is considered as the basic factor in the process of development .

The various changes in technology lead to increase in the productivity of labour ,capital &others factors of production .

Technological progress is thus the mover of economic development .

Biraja prasanna Dash(12)


ROLE OF TECHNOLOGY Increasing the productivity of the

workers . Utilisation of the resources . Higher level of output per worker . Creation of the employment . More profit for the organisation. Cost minimisation .



TYPES OF TECHNOLOGY There are two types of technology

1. labour intensive techniques.2. Capital intensive techniques.

1. Labour intensive techniques : use more amount of labour &small amount of capital.

2. Capital intensive techniques :use more amount of capital & small amount of labour .



LIT Arguments for labour intensive

techniques 1. Better utilisation of the local resources .2. Utilisation of the scare capital .3. More employment generation.4. More production at a cheaper rate .5. Social equality . Arguments against the LIT : static

&short term ,low rate of capital formation ,no possibility of improvement . Biraja prasanna

Dash(12)


CIT Arguments in favour of CIT :1. Rapid rate of development .2. Efficient method of production.3. Higher output per worker .4. More profitable .5. Creation of the social overhead .6. More employment opportunities . Arguments against the CIT :Requires huge investment ,adverse

effect on BOP ,difficulty in maintenance .



WOODWARD’S RESEARCH Joan Woodward in 1960 Focused on production technology Research on 1000 MF

England 150-<1000 employees

Research objective correlation between structural form & effectiveness

3 Types of technology Unit Mass Process

Anjan Mishra (05)

PERROW’S TECHNOLOGY CLASSIFICATION

CRAFT NON-ROUTINE

ROUTINE ENGINEERING

Ill d

efined a

nd

Unanaly

zab

leW

ell

defined

an

dA

naly

zable

Pro

ble

m A

naly

zab

ilit

y

Few Exceptions Many Exceptions

Task Variability

3 41 2

Routine

Non

Routine

J.Padmanav Rao(19)

Shoe making, furniture making

Strategy planning &

basic research activities

Construction of building

Automobiles , petrol refining


PERROW’S TECHNOLOGY-STRUCTURE PREDICTIONS

CELL

TECHNOLOGY

Structural Characteristics

FORMALIZATION

CENTRALISATION

SPAN OF CONTROL

COORDINATION AND CONTROL

1 Routine High High Wide Planning and rigid rules

2 Engineering

Low High Moderate Reports and meetings

3 Craft Moderate Low Moderate-Wide

Training & meetings

4 Non-Routine

Low Low Moderate-Narrow

Group norms and Group Meetings

J.Padmanav Rao(19)

THOMPSON’S TECHNOLOGY CLASSIFICATION

A B C D

Transformation Process

Client A Client B

Transformation Process

ResourcesABCD

Input Output

Output

A. Long-linked Technology (Characterized by sequential interdependence)

B. Mediating Technology (Characterized by pooled interdependence)

A. Intensive Technology (Characterized by reciprocal interdependence)

J.Padmanav Rao(19)


TECHNOLOGY COMPLEXITY FORMALITY

MEDIATING TECH. LOW HIGH

LONG LINKED TECH.

MODERATE MODERATE

INTENSIVE TECH. HIGH LOW

J.Padmanav Rao(19)


J.Padmanav Rao(19)


SIX SIGMA DEFINITIONS• Business Definition

A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business.

• Technical DefinitionA statistical term signifying 3.4 defects per million

opportunities.

J.Padmanav Rao(19)

Saturday, April 8, 2023GROUP = 5

WHAT IS SIX SIGMA? • Process Control;• Plan, Do, Check, Act;• Common and Special Causes;• Improvement can be done project by project• Statistical tools• Hawthorne Plant Experiences• Degree of variation;• Level of performance in terms of defects;• Statistical measurement of process capability;• Benchmark for comparison;• Process improvement methodology;• It is a Goal;• Strategy for change;• A commitment to customers to achieve an

acceptable level of performance

14

Sigma is a letter

in the Greek Alphabet

J.Padmanav Rao(19)

Saturday, April 8, 2023 GROUP = 5 15

WORLD CLASS PERFORMANCE

With 99 % Quality

With Six SigmaQuality

For every 300000 letters delivered

3,000 misdeliveries 1 misdelivery

For every week of TV broadcasting per channel

1.68 hours of dead air

1.8 seconds of dead air

Out of every 500,000 computer restarts

4100 crashes Less than 2 crashes

J.Padmanav Rao(19)


Sigma Level

Defects Per Million Opportunities

Rate of Improvement

1 690,000

2 308,000 2 times

3 66,800 5 times

4 6,210 11 times

5 230 27 times

6 3.4 68 times

J.Padmanav Rao(19)


BANK OF AMERICA – SS EXPERIENCE Goals

# 1 in Customer SatisfactionWorlds’ most admired companyWorlds’ largest bank

Strategy - “ Develop business process excellence by applying voice of the customer to identify and engineer critical few business processes using Six Sigma

Created Quality & Productivity Division

J.Padmanav Rao(19)


BANK OF AMERICA – SS EXPERIENCE

Results of first 2 years: Reduced ATM withdrawal losses by 29.7

% Reduced counterfeit losses in nationwide

cash vaults by 54% Customer delight up 20%; Added 2.3 million customer households 1.3 million fewer customer households

experienced problems Stock value up 52% Y 2002 – BOA named Best Bank in US &

Euro money's Worlds Most Improved Bank J.Padmanav Rao(19)


• Revenue• Capital Utilization• Return on Assets• Profits

• Quote Time• Defect Rate• Waste• On Time Delivery• Inventory;• Machine Utilization

Strategically: Used by Leadership as a vehicle to develop sustainable culture of Customer, Quality, Value and Continuous improvement.

Operationally: By Quality Managers to reduce cycle times, costs, errors, rework, inventory, equipment downtime.

Deployment across all types of processes and industries - worldwide

J.Padmanav Rao(19)


SIX SIGMA FRAMEWORKResults

Innovation and Learning

Encouraging & enabling people

To participate inImprovement

Personallyactively Involved in improvement

Recognizing Individual &Team effort

Identifying & designing

processes to deliverstrategy

Developing Team skills

Aligning Individual &Organization

Goals

Recognizing People

Establishing Process

managementSystem to be

used

ImplementingProcess Measures

Improving processes

to satisfy andGenerate valueFor customers

Delivery, Value,

reliability

Repurchasesatisfaction

Response Time to

customers

Time to Market

SatisfactionInvolvement Recognition

CompetencyProductivity

Utility consumptionTimeliness Inventory

Process cycle timeProcess costsDefect ratesProductivity

Cash flowMaintenance costReturn on assets

Gross marginsNet profit

SalesMarket Share

Leadership

Policy & Strategy

People

Processes

PeopleResults

Society Results

PartnershipsResources

Key PerfResults

Customer Results

Enablers

J.Padmanav Rao(19)


WHO IS IMPLEMENTING SIX SIGMA At least 25% of the fortune 200 claim to

have a serious six sigma program – Financial - Bank of America, GE Capital,

Electronics - Allied Signal, Samsung, Sony

Chemicals - Dupont, Dow Chemicals Manufacturing - GE Plastics, Johnson

and Johnson, Motorola, Nokia, Microsoft, Ford.

Airline - Singapore, Lufthansa, Bombardier

And hundreds of others in Americas, Europe, Sub Continent.

J.Padmanav Rao(19)


SIX SIGMA RESULTSCompany Annual Savings

General Electric $2.0+ billionJP Morgan Chase *$1.5 billion (*since inception in

1998)

Motorola $ 16 billion (*since inception in 1980s)

Johnson & Johnson $500 millionHoneywell $600 million

Six Sigma Savings as % of revenue vary from 1.2 to 4.5 %

For $ 30 million/yr sales – Savings potential $ 360,000 to $ 1.35 million.

Investment: salary of in house experts, training, process redesign.

J.Padmanav Rao(19)


SIX SIGMA PROJECT METHODOLOGY

ControlControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove

Establish standards to maintain process;

Design the controls, implement and monitor.

Evaluate financial impact of the project

Identify, evaluate and select projects for improvement

Set goalsForm

teams.

Collect data on size of the selected problem,

identify key customer requirements,

Determine key product and process characteristic.

Analyze data, establish and confirm the “ vital few “ determinants of the performance.

Validate hypothesis

Improvement strategy

Develop ideas to remove root causes

Design and carry out experiments,

Optimize the process.

Final solutions

Project Phases

J.Padmanav Rao(19)


WHAT MAKES SIX SIGMA DIFFERENT? Versatile Breakthrough improvements Financial results focus Process focus Structured & disciplined problem solving

methodology using scientific tools and techniques Customer centered Involvement of leadership is mandatory. Training is mandatory; Creating a dedicated organisation for problem

solving (85/50 Rule).

J.Padmanav Rao(19)


BENEFITS OF SIX SIGMA Generates sustained success Sets performance goal for everyone Enhances value for customers; Accelerates rate of improvement; Promotes learning across boundaries; Executes strategic change

J.Padmanav Rao(19)


INTRODUCTION In the highly competitive world the difference between

the winner and the looser is often one hundredth of percentage.

This requires perfection and zero tolerance for failure leading to Overall Performance Effectiveness better than the competition.

Total Productive Maintenance

Soumya Ranjan Padhi(52)


TOTAL PRODUCTIVE MAINTENANCE AIMS AT:-


Saturday, April 8, 2023GROUP = 5 28Soumya Ranjan Padhi(52)


- JISHU-HOZEN leads to operators maintaining own equipment leading to ownership.

- Pleasant work environment.

- Happy visitors to plant leads to businessgrowth.

Intangibles

- Improvement proposal increased from 5 to 10.M

- Reduction in accidents to zero.- Reduction in Pollution cases to zero.

S

- Reduction in product and work-in-process inventors by half.

D

- Reduction in manufacturing cost by 30%.C

- Reduction in defect ratio by 25%.- Reduction in customer complaints by 25%.

Q

- Increase in value added productivity by 1.5 - 2.0 times.

- Improvement in Overall equipment efficiency by 150% to 200%.

P

Tangibles

Benefits of TPM(As seen in various TPM implementation in companies)

Aiming at “Zero accidents”, ”Zero failures”, and “Zero defects” through introduction of TPM with all workers participating, which in turn contributes to the improvement of Overall equipment efficiency and reduction in costs.

BASIC POLICY

1.Reduction in equipment failure. 4. Accurate Management of equipment, tools and jigs.2.Reduction in waiting and setup time. 5. Promotion of resource conversation and energy saving.3.Effective use of existing equipment. 6. Education and training, cultivation of manpower.

OBJECTIVES

TO MEET

• Increase in production and reduction in quality problems.

• Equipment deterioration due to overload operation.• Elimination of equipment which has design weak

points.• Upgradation of knowledge of equipment control for

the operators. • Improve morale of associates.

OPERATIONAL DEMANDS

• Timely and effective start-up of new products.

• Flexible response to the demand trend.

• Reduction in prices.

• High-level quality assurance.

• Conservation of resources and energy.

MARKET DEMANDS

TPM

BA

SIC

PO

LIC

Y A

ND

EX

AM

PLE

O

F TA

RG

ET S

ETTIN

G



Accessing for resultsComplete implementation of TPM

Implement by horizontal deployment Company wide of various TPM activities

Regular and continuous training of all people on activity plan. Review and monitoring of the activities

Corrective action wherever necessary

Implementation & Deployment of TPM activities all over the organisation:

Jishu Hozen OEE / Kobetsu Kaizen Planned Maintenance Training & Skill development Office TPM

Initial Project Management Safety and Environmental

Management

Informing the commitment of Top Management to all, including Partners and Customers to TPM

Formal Kick off

Benchmarks and targets for effectiveness of TPM

Making Master plan

Target setting

For department heads and managers to understand & work on a machine for Jishu

Hozen, OEE and Kobetsu Kaizen activities

Selection of Manager Model Machine (MMM)

Start of Jishu Hozen activity in MMM

Control steering for coordinating company wide activity

Departmental committee for coordinating with Control committee and department activity

Formation of TPM

Organisation Committee Departmental Committee

Top Management: ½ Day

Senior Management : 1 Day

Managers/ Executives : 3 Days

TPM Awareness

Declaration by Top Management about adopting TPM as major initiative for change

TPM Declaration

Gulf Softwar

e

Organisation

ResponsibilityFocusing PointProcess

TPM – PROCESS MAP



STEPS FOR TPM IMPLEMENTATIONTop Management declaration of TPM initiative.

1

TPM education and awareness

2

Formation of TPM organisation and structure

3

Setting of basic company TPM principles and targets

4

Master plan for TPM implementation

5

Kick-off of TPM company wide

6

Establishing system for improving plant efficiency

7

Establishing upstream control management for new products and equipments

8

Building quality maintenance system

9

Improvement of administration and commercial function

10

Improvement of safety, health, environment system

11

Complete implementation of TPM

12



ORGANISATION DEVELOPMENT Applying behavioural science knowledge

to the strategies and structures that lead to organisational effectiveness.

Gradually improving an organisation’s problem-solving capabilities with the help of external or internal behavioural-scientist consultants.

Broadly focussed and applicable to any type of change: technical, managerial and social innovations.

ORGANISATION CHANGE

Anjan Mishra(05)


WHAT SHAPES ORGANISATION CHANGE Globalisation is changing markets and

environments Information technology is changing

work and knowledge Managerial innovation is responding

to these trends and accelerating their effect on organisations.

Anjan Mishra(05)


INTRODUCING NEW TECHNOLOGY

This will focus on managing the introduction of new technology and will include consideration of why many such investments fail to meet their objectives, and what companies can do to improve their success rate.

Key benefits

technology components are standards compatible technology infrastructure provides real-time access to

information sources technology provides integrated security, with single

sign-on and role-based access a consistent user interface standard is adopted.

Anjan Mishra(05)


TECHNOLOGY & STRUCTURE• Technology & Complexity

low complexity non-routine technology

• Technology & Formalization operating core

• Technology & Centralization formalization

Amar Mohanty(03)


ORGANIZATIONAL

DEVELOPMENT DUE TO

CULTURESabyasachi Tarai(39)


ORGANIZATION CULTURE The set of values, guiding beliefs,

understanding, ways of thinking, and norms shared by members of an organization…..

Sabyasachi Tarai(39)


KEY CHARACTERISTICS Individual Initiative

Risk ToleranceDirectionIntegrationManagement supportControlIdentityReward SystemConflict ToleranceCommunication Pattern

Sabyasachi Tarai(39)


ISSUES… Culture And Functions• The strength and health of a culture• Culture elements and role of each

element• Forces and pressure for changes• Resistance to change• Managing change

Santwna Sahoo (43)


FUNCTIONS OF CULTURE:

-Integral integration -External Adoption

Santwna Sahoo (43)


INTEGRAL INTEGRATION…Determines how members related o one

another Constitutes a collective perspective of

organization members(values ,beliefs and norms)

Shared by most members of organization Provides sense of identity of members Guides decision making Enhances commitment

Santwna Sahoo (43)


EXTERNAL ADAPTATION… Influences how organization meets goals

and deals with outsiders Influences perception of organizations by

outsiders Guides and control behavior of outsiders Shapes expectation of outsiders

Santwna Sahoo (43)


CULTURE AND ORGANIZATION EFFECTIVENESS… Strong Culture : It’s characterized by the

organization’s core values being instantly held, clearly ordered and widely shared- The more members that accept the core values, agree on their order of importance and are highly committed to them, the stronger the culture is

Ex : Religious Organization and Japanese CompaniesHow strong culture influence the organization’s effectiveness?- Effectiveness requires that an organization’s culture ,strategy, environment and technology be aligned. The stronger an organization’s culture, the more important its is that the culture fit properly with these variables.

Sandeep Behera(41)


CONT…Weak Culture: Organization’s that are

young will have a weak culture because members will not have shared enough experience to create common meanings

- Weak culture is not so responsible to influence the organizations effectiveness

Sandeep Behera(41)


CULTURE :A SUBSTITUTE FOR FORMALIZATION? A strong culture is that which increase behavioral

consistency that means it conveys to employee what behavior they should engage in

Formalization’s rules and regulations act to regulate employee behavior

High formalization creates predictability, orderliness and consistency.

A strong culture also achieve the same but with out the need of any formal documentation- So we can conclude that formalization and culture are two different road to a common destination

Sandeep Behera(41)


KEEPING CULTURE ALIVE

• Selection practices

• Top management

• Socialization methods

Amar Mohanty(03)


HOW EMPLOYEES LEARN CULTURE

Stories

Rituals

Material symbols

Language

Amar Mohanty(03)


CULTURETYPESDominant- Expresses core values shared by majority of the organization's members

Subcultures-formed vertically or horizontally

A. Ram Kausal(10)


… is an appraisal device that seeks performance feedback on an individual from a number of stakeholders. The stakeholders being the immediate supervisors, team members customers, peers and self.

Ashok Kumar Panda


The system is more comprehensive since the responses are gathered from multiple perspectives

Information on quality is much better

It complements TQM initiatives by emphasizing internal/external customer and teams

As feed back is from a number of people,the process is less biased

Feedback from peers can improve employees self development

The system is complex in combining al the responses

Feedback can be intimidating if employee feels that respondents have “ganged up”

There may be conflicting opinions, though they all may be accurate from therespective stand points

The system requires training to work effectively

Employees may collude or “game” the system by giving invalid evaluations to one another

Appraisers may not be accountable if their evaluations are anonymous

PROS AND CONS OF 360 DEGREE APPRAISAL

Ashok Kumar Panda

SITUATTIONAL ANALYSIS FOR CULTURAL CHANGE

CONDITIONS UNDER WHICH CULTURE CAN BE MANAGED:-

1. A Dramatic Crisis 2.Leadership Turnover 3.Life-cycle Stage 4.Age of the organization 5.Size of the organization 6.Strenth of the current

culture 7.Absence of sub-cultures

Ashok Kumar Panda


SUGGESTIONS(MANAGING CULTURAL CHANGES):-

1. Cultural analysis2. Comparison of the present culture

with the desired culture3. Cultural audit to assess a current

culture.4. New leadership should focus on new

values, stories, symbols, rituals.5. Management should focus on

processes, evaluation and reward systems Ashok Kumar Panda

(07)



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Impact of technology and culture on organization