OB Project Report_B2

7/27/2019 OB Project Report_B2

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STUDY OF ORGANIZATIONAL DECISION-MAKING

ORBEES MEDICAL

Submitted By:

GROUP 2

Aishwarya Kumar (PGP/16/063)

Anirban Bhar (PGP/16/064)

Anusha Acharya (PGP/16/071)

Palak Bansal (PGP/16/097)

Pratik Agrawal (PGP/16/101)

Nimish Shah (PGP/16/110)

INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE


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OB Project Report_Group B2 Page 1

TABLE OF CONTENTSORBEES BUSINESS SOLUTIONS ...................................................................................................... 2

ORGANIZATION HIERARCHY & CULTURE .................................................................................. 4

KEY DECISION MAKER AT ORBEES MEDICAL............................................................................ 5

PROGRAMMEDDECISION............................................................................................................... 6

KEY NON-PROGRAMMED DECISION TAKEN............................................................................... 7

RECCOMENDATIONS ..................................................................................................................... 11

REFERENCE....................................................................................................................................... 13


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ORBEES BUSINESS SOLUTIONS

Orbees is privately held organization, which provides innovative informationtechnology solutions and medical consultancy services to higher education and non-profit institutions in the U.S. Canada, Western Europe, and India since 2006

Orbees is headquartered in San Francisco, Silicon Valley (Fremont, CA, USA) with a

global delivery center located in Hyderabad, India

Orbees IT Overview

Orbees acts as an extended organization of the IT departments of various highereducation institutions in the US and offers both products and services

Orbees Medical Overview

Orbees Medical provides consulting services to healthcare and medical companies who

wish to develop and market their therapies and medical technologiesOrbees Medical has in-depth clinical expertise and industry insights and assist insolving major business challenges that range from developing a portfolio strategy tocarrying out analysis of a new market segment for upcoming medical / healthcareinnovationsTheir clients include various biopharmaceutical and medical devices companies.Among these organization they worked with various groups which include Sales,Marketing, R&D, Intellectual Property, Portfolio Management, Strategy and Training


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Core Values

Delivery Models

Depending on the customer preference and project requirement Orbees uses acombination of onsite, offsite and offshore resources for effective implementation ofprojectsThe onsite resources directly interact with customer executive on regular basis and actas the connecting link between the offsite resources and customerThe offsite resources come into picture for the project execution and quality assurance

Orbees believes in continuous customer interaction and timely regular feedbacks

Employee Break-Up

CUSTOMERS

Best-valuesolutions andquality services tocustomers

Highest ethicaland professionalstandards

EMPLOYEES

Provide themopportunities forthem to reachprofessional andpersonal potential

Mutual respectand enjoyableworkingconditions


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ORGANIZATION HIERARCHY & CULTURE

No particular rites and ceremonies to establishes organization cultureRites and Ceremonies

Stories about how hardworking a particular employee is are used forbenchmarking performance

Stories and Myths

Power and promotion both based on merit and not on educationalqualification or experience

Power Relationships

All major strategic and new project decision taken by Mr. Ramesh

Day-to-day routine decisions taken by Mr. Anirudh and Mr. HareeshControl System

Organic structure with greater horizontal communication and fewerrules

OrganizationStructure

Open cubicles with no private cabins/offices

No dress code & Flexible working hoursSymbols


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KEY DECISION MAKER AT ORBEES MEDICAL

Orbees is an owner driven organization, with the co-founder and CEO, Mr, Ramesh makingall key strategic decisions as Orbees was completely funded Mr. Ramesh and he did notapproach any external venture capitalist for monitory assistance.

Risk Taking Attitude Goes by the principle of greater risk, greater returnsIntuitive Decision Making bounded rationality. If decision making would have beenparticipative, bounded rationality could be minimized

Autocratic Leadership Style

EXERCISE1. Logic2.

InnerKnowing

3. Data4. Felt Sense5. Facts6. Instincts7. Concepts8. Hunch9. Reason10.Feelings

The CEO of the company, Mr. Ramesh Surapaneni was asked to

select five words which according to him described his decisionmaking style

OVERALL SCORE: +1

The odd numbered attributes pertain to a linear decision

making style and the even numbered items pertain to anonlinear decision approach.A score of-3 to -5 means the approach to decision is intuitive

and a sum total of experiences and instinct of the decisionmaker. A score of +3 to +5 implies a rational, systematicdecision making style.Based on Mr. Rameshs score, his decision making style is amixture of intuition based on experience and a rationalapproach. This is common at senior management levels,where the problems are highly complex and there is little

tangible data to evaluate


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PROGRAMMEDDECISION

Main programmed decision of the company include

Release of Monthly Salary10th of every month

Reimbursement Policy for the Travel & Subsidiary Office Expensee-reimbursement sheet to be filled by the employees at the end of each monthe-reimbursement sheet goes to Project Manager for approvalPost the approval, amount sanctioned and credited to the employees account with 2-daysIn case of bigger expenses, employees can file the e-reimbursement sheet on the 15th

of the month to claim part/full expenseExit Policy

Standard 2 months notice period requiredExperience or relieving letter given only after the employee ensures smoothknowledge transfer to his successor


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KEY NON-PROGRAMMED DECISION TAKEN

Starting of Product Development Cell

Due to economic slowdown in US, incoming new IT services projects started drying upMr. Ramesh was looking for new business opportunityAt that time, he got a number of product development projects from his alma mater(UC Berkeley)He used Management Science Approach and did a cost/benefit analysis of thealternatives availableBased on Cost/benefit analysis it was discovered that it was more profitable to startProduct Development, using SaaS based/ subscription model, as it was more costeffective and likely to be preferred by customers

Followed Management Science Approach

Monitored the

market conditions &

defined the problem

looking for new

business

opportunity

Specified the decision

objective of expanding

business by two fold in

two years

Diagnosed theproblem

performed cost

analysis of providing

IT servicesDeveloped two

alternate solution Open only a

product

development cell

- Or run both the

offerings in parallel

Evaluated both thealternatives in

terms of which

provided greater

profits

Choose the best

alternative Creating

New Product

Development Cell

Implemented the

decision and

launched New

Product

Development Cell


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Decision to Launch Provent in India

Mr. Anurag and Mr. Ramesh realized that to ensure future sustainable growth of OrbeesMedical they would require full-time projects and not part-time need based smalluniversity projects

They faced the problem of obtaining long full-time projectsHowever, they did not have any clear idea on how to solve this problem an attract

customers who would appoint them as on-going medical consultantsDuring one of his international business tour, Mr. Anurag met Dr. Raj Doshi of VentusMedicalDr. Raj Doshi was the creator of a device named ProventHe wanted to launch the product in India and needed a full-time medical consultant whocould perform preliminary market research, gauge whether the Indian market is readyfor the product and if so then arrange for pan-India distributionHere, Mr. Anurag saw a business opportunityMr. Anurag and Mr. Ramesh together used the Incremental Decision Making Model toevaluate and make this decision of whether to launch Provent in India or not

Followed Incremental Decision Making Model

Recruitment Process

Initially when, Mr. Ramesh started Orbees Medical their main decision was to decide theemployee mix and set up a hiring process in place. They realized that to build their base as ahealthcare consultant they would require the right mix of doctors and pharmaceutical experts.Doctors would enhance the legitimacy and expertise of the organization. Pharmaceuticalexperts would bring the technical knowledge especially required during new product launch.

Rational ApproachKey Decision Maker - Mr. Ramesh Had clear understanding of the problemExplored various options searched for the perfect candidature via online jobportals as well as personal contactsSelected Ms. Surbhi after evaluating all the alternatives as the ideal candidate

Bounded Rationality ApproachDr. Anirudh who was the principal consultant left the organizationThere was time constraint and Mr. Ramesh found it very difficult to find areplacement for him


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So he made a quick immediate decision of hiring people with MBA+MBBS degree

Garbage Can ModelProblematic Preferenceo Ambiguity persisted in each step of the recruitment processo Adopted methods and solutions that were most imminent

Unclear TechnologyoNo set explicit database or SOP regarding the recruitment processoNo set explicit database or SOP regarding the recruitment process

Turnovero Attrition rate was high around 50% (industry average 35%)o Being a start-up, the compensation package offered was not that attractive so as

and when employees found better opportunity they left


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Breakdown of Relationship with BITS Pilani

Kalpana, - intern from BITS Pilani - highly unproductive - frequently misusedorganization internet - liability to organization. Her behavior was unacceptable atOrbees due to competitive culture.

Before her midterm review Kalpana made allegations against Mr. Vinod - senioremployee - inappropriate comments he had passed about her - previously shared

friendly rapport with him Mr. Vinod highly productive, valuable asset to organizationBITS Internship program Dean scheduled meeting with Mr. Ramesh to discuss issue asked to conduct enquiry

Sequence of Events

How Mr. Ramesh should have handled the situation:

Should have used CARNEGIE MODELMr. Ramesh should not have been involvedHis role should be restricted to making big strategic decision and using his expertiseand experience in getting new projectsCarnegie Model should have been adopted where a coalition team should have been

formed comprising of the principal consultants and the two senior consultantsThey know the real situation

They would have probably foreseen withdrawal by BITS Pilani and its negativeimplicationsBeing the alumni of BITS Pilani they would have been to salvage the situation in caseof withdrawal

They would have been able to compare the benefits of retaining Mr. Vinod vis--vis thedanger of the breakdown of relationship with BITS Pilani

Mr. Ramesh conducted internal inquiry tolook into the issue

- Spoke to Mr. Vinod

- Spoke to all employees, except Kalpana

Assured BITS Internship Dean that Mr.Vinod was faultless and the blame lay

upon Kalpana, who made the allegationsto avoid getting a bad grade in the

midterm review

BITS Internship Dean informed Mr.Ramesh that he was unsatisfied withOrbees stand on the issue and had

decided to blacklist Orbees from theinternship process


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RECCOMENDATIONS

Organization Strategy

Other Major Issues


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Proposed Organizational Structure

The main bottleneck is the vertical communication link between Dr. Anirudh and Mr.Ramesh.

Mr. Ramesh did have any direct communication link with the two senior consultantWe propose a decentralized structure where the the two senior consultant are promotedto principal consultant

The three principal consultant have power to make decisions for projects upto a bracketDecisions about bigger projects can be handled by Mr. RameshOther administrative work should be strictly handled by Mr. Hareesh and the PrincipalConsultant, unless its anything big


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REFERENCE

Mr. Ramesh Surapaneni, Co-Founder & CEO, Orbees MedicalMr. Hareesh Yalamanchili, HR Head, Orbees Medical

Mr. Anirudh Rathod, Principal Consultant, Orbees Medical

Documents

OB Project Report_B2