IMPACT OF TECHNOLOGY &

CULTURE ON ORGANISATION
PRESENTED BY
GROUP – 5
Amar 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)
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)
GROUP = 5 12/13/09 2
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 .

Biraja prasanna Dash(12)

GROUP = 5 12/13/09 3
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 .

Biraja prasanna Dash(12)

GROUP = 5 12/13/09 4
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)

GROUP = 5 12/13/09 5
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 .

Biraja prasanna Dash(12)

GROUP = 5 12/13/09 6
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)
GROUP = 5 12/13/09 7
 perrow’s Technology Classification
Task Variability
Few Exceptions Many Exceptions
CRAFT NON-ROUTINE
Ill defined and
Unanalyzable

Shoe making, furniture

Strategy
making
planning & basic research activities
Problem Analyzability

tine
3 Rou
n
ROUTINE No ENGINEERING
4
Well defined and

1
Analyzable

Automobiles , petrol refining2Construction of building

tine
u
Ro J.Padmanav Rao(19)
Perrow’s Technology-Structure
Predictions
Structural Characteristics
CELL TECHNOLOGY FORMALIZATION CENTRALISATION SPAN OF COORDINATION
CONTROL 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- Group norms and

Narrow Group Meetings

J.Padmanav Rao(19)
GROUP = 5 12/13/09 9
 Thompson’s Technology Classification
Inpu A B C D Output
t
A. Long-linked
Technology
(Characterized by sequential
interdependence)

Client A Transformation Process Client B

B. Mediating Technology
(Characterized by pooled interdependence)

Resources
A
B Transformation Process
C Output
D

A. Intensive Technology
(Characterized by reciprocal
interdependence) J.Padmanav Rao(19)
TECHNOLOGY COMPLEXITY FORMALITY

MEDIATING LOW HIGH

TECH.

LONG LINKED MODERATE MODERATE

TECH.

INTENSIVE HIGH LOW

TECH.

GROUP = 5 12/13/09 J.Padmanav

11 Rao(19)
 J.Padmanav Rao(19)

GROUP = 5 12/13/09 12
Six Sigma Definitions
• Business Definition
üA break through strategy to significantly improve
customer satisfaction and shareholder value by
reducing variability in every aspect of business.
• Technical Definition
üA statistical term signifying 3.4 defects per million
opportunities.


J.Padmanav Rao(19)
GROUP = 5 12/13/09 13
 
What Is Six Sigma?

Sigma is a letter
•
•
•
Process Control;
Plan, Do, Check, Act;
Common and Special Causes;
in the Greek
Alphabet • 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
•

J.Padmanav Rao(19)
GROUP = 5 12/13/09 14
 World Class Performance
With 99 % With Six Sigma
Quality Quality
For every 300000 3,000 misdeliveries 1 misdelivery
letters delivered
For every week of TV 1.68 hours of dead 1.8 seconds of dead
broadcasting per air air
channel
Out of every 500,000 4100 crashes Less than 2 crashes
computer restarts

J.Padmanav Rao(19)
GROUP = 5 12/13/09 15
Sigma Defects Per Million Rate of
Level Opportunities 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)
GROUP = 5 12/13/09 16
Bank of America – SS Experience
 Goals
# 1 in Customer Satisfaction
 Worlds’ most admired company
 Worlds’ 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)
GROUP = 5 12/13/09 17
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)
GROUP = 5 12/13/09 18
 High Level Business Metrics
•Revenue
•Quote Time •Capital Utilization
•Defect Rate •Return on Assets
•Waste Operating Level •Profits
•On Time Delivery Metrics
•Inventory;
•Machine Utilization

Strategically: Used by Leadershipas 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) GROUP = 5 12/13/09 19
 SIX SIGMA FRAMEWORK
Enablers Results

Establi Com
shing pete
Recog
People People ncy Key Perf
Personally nizing Proces Prod
actively Peopl s Results uctiv Results
Involved in e
Aligni
improvement
manage ity
ng Satis Gross
Devel Indivi
ment facti
System Rec margins
oping dual & on Net
Team Organ to be Invol ogni
skills izatio tion profit
used veme
Sales
n nt
Goals Market
Encourag Identifyin Implem Res Share
enting Customer
Deli Results Process
ing g& very pon
& designin Proces , se cycle
enabling s Tim time
g Valu
people e to Process
To processe Measur e,
cust costs
es relia
participat s to Rep ome Defect
bilit Tim
e in urc rs rates
deliver y
has e to Productiv
Improve Cash
ment strategy e Mar ity
flow
Policy & Strategy Improvin sati ket Mainte
g sfac nance
processe tion cost
Recogniz s Return
ing to satisfy on
Individual and assets
& Generate Utility
Team value consum
effort Partnerships For Society ption
customer
Resources s Results Timelin
ess
Leadership Processes Inventor
y

Innovation and Learning

J.Padmanav Rao(19)
GROUP = 5 12/13/09 20
 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) GROUP = 5 12/13/09 21

 Six Sigma Results
Company Annual Savings
General Electric $2.0+ billion
JP Morgan Chase *$1.5 billion (*since inception in 1998)
Motorola $ 16 billion (*since inception in 1980s)
Johnson & Johnson $500 million
Honeywell $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.

GROUP = 5 12/13/09 J.Padmanav Rao(19)

22
 Six Sigma Project Methodology
Project Phases

Define
Define Measure
Measure Analyze
Analyze Improve
Improve Control
Control


ØIdentify, ØCollect data ØAnalyze data, ØImprovement ØEstablish
evaluate and on size of the establish and strategy standards to
select selected confirm the “ ØDevelop maintain
projects for problem, vital few “ ideas to process;
improvement Øidentify key determinants remove root ØDesign the
ØSet goals customer of the causes controls,
ØForm teams. requirements performance. ØDesign and implement
, ØValidate carry out and monitor.
ØDetermine hypothesis experiments, ØEvaluate
key product Ø ØOptimize the financial impact
and process process. of the project
characteristic ØFinal
. solutions

J.Padmanav Rao(19) GROUP = 5 12/13/09 23

 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) GROUP = 5 12/13/09 24

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) GROUP = 5 12/13/09 25

 Total Productive
Maintenance

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.


Soumya Ranjan Padhi(52) GROUP = 5 12/13/09 26

TOTAL PRODUCTIVE MAINTENANCE
AIMS AT:-

GROUP = 5 12/13/09 Soumya

27 Ranjan Padhi(52)
Soumya Ranjan Padhi(52) GROUP = 5 12/13/09 28
 TO MEET

MARKET DEMANDS OPERATIONAL DEMANDS

Increase in production and reduction in quality problems.
Timely and effective start-up of new products. Equipment deterioration due to overload operation.
TPM BASIC POLICY AND EXAMPLE OF TARGET

Flexible response to the demand trend.
Reduction in prices.
High-level quality assurance.
Conservation of resources and energy.
Elimination of equipment which has design weak points.
Upgradation of knowledge of equipment control for the
operators.
Improve morale of associates.

BASIC POLICY
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.
SETTING

OBJECTIVES
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.

Benefits of TPM
(As seen in various TPM implementation in companies)
Tangibles Intangibles
P - Increase in value added productivity - JISHU-HOZEN leads to operators
by 1.5 - 2.0 times. maintaining own equipment leading to
- Improvement in Overall equipment efficiency ownership.
by 150% to 200%.
Q - Reduction in defect ratio by 25%. - Pleasant work environment.
- Reduction in customer complaints by 25%.
C - Reduction in manufacturing cost by 30%.
- Happy visitors to plant leads to business
D - Reduction in product and work-in-process inventors growth.
by half.
S - Reduction in accidents to zero.
- Reduction in Pollution cases to zero. Soumya Ranjan Padhi(52)
M - Improvement proposal increased
GROUPfrom
= 55 to 12/13/09
10. 29
 TPM – PROCESS MAP
Process Focusing Point Responsibility
Organisation Gulf
Software
Declaration by Top Management about ✔
TPM Declaration adopting TPM as major initiative for
change
TPM Awareness Top Management: ½ Day ✔ ✔

Senior Management : 1 Day

Formation of TPM Managers/ Executives

Control steering : 3 Days
for coordinating ✔
company wide activity
 Organisation Committee Departmental committee for coordinating
 Departmental Committee with Control committee and department
activity
Selection of Manager Model Machine (MMM) For department heads and managers to ✔ ✔
understand & work on a machine for
Jishu
Start of Jishu Hozen activity in MMM
Hozen, OEE and Kobetsu Kaizen
activities
Target setting Benchmarks and targets for ✔ ✔
effectiveness of TPM

Making Master plan

Formal Kick off Informing the commitment of Top ✔ ✔
Management to all, including Partners
and Customers to TPM
Implementation & Deployment of TPM Implement by horizontal deployment ✔ ✔
activities all over the organisation: Company wide of various TPM
­ Jishu Hozen activities
­ OEE / Kobetsu Kaizen Regular and continuous training of all
­ Planned Maintenance people on activity plan. Review and
­ Training & Skill development monitoring of the activities
­ Office TPM
Corrective action wherever necessary
­
Complete
Initial Project
implementation
Managementof TPM Accessing for results ✔ ✔
­ Safety and Environmental
Management

GROUP = 5 12/13/09 Soumya

30 Ranjan Padhi(52)
 STEPS FOR TPM IMPLEMENTATION
1 Top Management declaration
of TPM initiative.

2 TPM education and awareness

3 Formation of TPM
organisation and structure

4 Setting of basic company TPM

principles and targets

5 Master plan for TPM

implementation

6 Kick-off of TPM company wide

7 Establishing system for

improving plant efficiency

8 Establishing upstream control

management for new products and
equipments

9 Building quality maintenance

system

10 Improvement of administration
and commercial function

11 Improvement of safety,
health, environment system

12 Complete implementation of
TPM

GROUP = 5 12/13/09 Soumya

31 Ranjan Padhi(52)
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.
ORGANISATION CHANGE


 Broadly focussed and applicable to any type of

change: technical, managerial and social
innovations.

GROUP = 5 12/13/09 Anjan
32 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.


GROUP = 5 12/13/09 Anjan

33 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. GROUP = 5 12/13/09 Anjan
34 Mishra(05)
 Technology & Structure
•Technology & Complexity
 low complexity
 non-routine technology
•Technology & Formalization
 operating core
•Technology & Centralization
 formalization


Amar Mohanty(03) GROUP = 5 12/13/09 35

 Organizational
Development due
to culture
Sabyasachi Tarai(39)
GROUP = 5 12/13/09 36
Organization culture
 Theset of values, guiding beliefs,
understanding, ways of thinking, and norms
shared by members of an organization…..

Sabyasachi Tarai(39)
GROUP = 5 12/13/09 37
KEY CHARACTERISTICS
Individual Initiative
Risk Tolerance
Direction
Integration
Management support
Control
Identity
Reward System
Conflict Tolerance
Communication Pattern


Sabyasachi Tarai(39)
GROUP = 5 12/13/09 38
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) GROUP = 5 12/13/09 39

Functions of culture:


-Integral
integration
 -External Adoption

Santwna Sahoo (43) GROUP = 5 12/13/09 40

 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) GROUP = 5 12/13/09 41
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) GROUP = 5 12/13/09 42

 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 Companies

How 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.

GROUP = 5 12/13/09 Sandeep

43 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


GROUP = 5 12/13/09 Sandeep

44 Behera(41)
 Culture :A Substitute For
Formalization?
Ø A strong culture is that which increase behavioral
consistency that means it conveys to employee
what behavior they should engage in
Ø Formalization’s rules and regulations act to
regulate employee behavior
Ø High formalization creates predictability,
orderliness and consistency.
Ø 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


 GROUP = 5 12/13/09 Sandeep

45 Behera(41)
Keeping culture alive
 Selection practices
 Top management
 Socialization methods


GROUP = 5 12/13/09 Amar Mohanty(03)

46
How employees learn culture
 Stories

 Rituals

 Material symbols
 Language


Amar Mohanty(03) GROUP = 5 12/13/09 47

 Culture
 TYPES
Dominant- Expresses core values
shared by majority of the
organization's members
Subcultures-formed vertically or
horizontally


A. Ram Kausal(10) GROUP = 5 12/13/09 48

 360
… is an appraisal device that seeks performance

DEGREE
feedback on an individual from a number of
stakeholders. The stakeholders being the immediate
supervisors, team members customers, peers and
self.
APPRAIS
AL
GROUP = 5 12/13/09 49Ashok Kumar Panda
 PROS AND CONS OF 360 DEGREE APPRAISAL
PRO
S
üThe system is more comprehensive
since the responses are gathered
from multiple perspectives
üInformation on quality is much
better
üIt complements TQM initiatives by
emphasizing internal/external
customer and teams
üAs feed back is from a number of
people,the process is less biased
üFeedback from peers can improve
employees self development
GROUP = 5
CON
S
üThe system is complex in combining al the
responses
üFeedback can be intimidating if employee feels
that respondents have “ganged up”
üThere may be conflicting opinions, though they
all may be accurate from therespective stand
points
üThe system requires training to work effectively
üEmployees may collude or “game” the system
by giving invalid evaluations to one another
üAppraisers may not be accountable if their
evaluations are anonymous
12/13/09 Ashok
50 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 analysis
2.Comparison of the present culture with the
desired culture
3.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


GROUP = 5 12/13/09 Ashok

52 Kumar Panda (07)
GROUP = 5 12/13/09 53
Questions
are most
welcome…
GROUP = 5 12/13/09 54