OB Project Report ePGP (02-081,086,065)

Project Report

Organizational Behavior II

Attrition

Is personal gain scoring over professional

commitment?

Submitted By Sumeet Pai (ePGP-02-081)

Tushar Govalkar (ePGP-02-086) Sandhya Vidhyasagar (ePGP-02-065)

Organization Behavior - II Indian Institute of Management - Kozhikode

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Table of Contents Abstract ................................................................................................................................................ 2 Introduction ......................................................................................................................................... 2 Key Concepts ..................................................................................................................................... 3

Organizational Theory ............................................................................................................. 3 Organizational Structure ......................................................................................................... 3 Organizational Culture ............................................................................................................. 3 Organizational Design ............................................................................................................. 3 Organizational Change ............................................................................................................ 3 Relationships among Organizational Theory, ................................................................... 4 Structure, Culture, Design and Change ............................................................................... 4 Importance of Organizational Design and Change .......................................................... 4 Consequences of Poor Organizational Design and Change Process ........................... 5 BIDW ........................................................................................................................................... 5

About The Company ........................................................................................................................ 7 Current Organizational Design and Change at IDG ................................................................ 9

Authority and Control .............................................................................................................. 9 Specialization and Coordination ......................................................................................... 10 Culture ........................................................................................................................................ 11 Strategy ...................................................................................................................................... 12 Competence and Technology ............................................................................................... 14 Decision Making Process ...................................................................................................... 15 Innovation.................................................................................................................................. 16 Conflict Management, Power and Politics ....................................................................... 16

Challenges for ABC due to High Employee Turnover ......................................................... 17 Low Project Win Ratio .......................................................................................................... 17 Partnership Value .................................................................................................................... 18 Low Moral of the Employees .............................................................................................. 18 Low Quality Hiring ................................................................................................................ 19

Influence of Organizational Design and Change in light of Personal Growth ............... 20 Low Brand Image .................................................................................................................... 20 Fragile Organization Structure ............................................................................................ 21 Low Emphasis on Organization Culture ........................................................................... 21 Less Focus on Innovation ..................................................................................................... 21 Reactive HR Group ................................................................................................................ 21

Proposed Employee Retention Framework for IDG ............................................................. 21 Brand Building ......................................................................................................................... 21 Alliances .................................................................................................................................... 22 Standardization ........................................................................................................................ 22 Beneficial Stakeholder Relation .......................................................................................... 22 Inculcate Organization Culture at all Levels ................................................................... 23 Organization Re-structure ..................................................................................................... 23 Productive Human Resource ................................................................................................ 23 Inculcate Innovation at all levels......................................................................................... 24 Building Customer Relationship ......................................................................................... 24

Conclusion ........................................................................................................................................ 24


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Abstract

Like all other industries, IT industry has also come a long way to establish itself as an

important sector which contributes substantially in the economical growth of many

countries. Led by the intellectual power, the IT industry is the market where-in world class

companies are competing with each other to provide world class services to its customers.

Although the year 2009 was not so good for this industry and it is expected to recover fast

from the recession. IDC (International Data Centre) predicts 3.2 percent growth for the year

2010, returning the industry to 2008 spending levels of about U$1.5 trillion.

It is imperative that the companies have to be aligned to the ever changing technological

challenges with an eye on providing cost-effective solutions to the customers. In addition to

this, to stay ahead in the competition, the company needs to aggressively look at

organizational design and change which will assist in creating better value for the

customers and for the shareholders which in turn will allow the economy to grow as whole.

In this paper various aspects of organization design and change are discussed in relation to

its impact on one of major IT Company ABC1 and a business unit in particular – Business

Intelligence and Data warehousing (BIDW) from India Delivery Group (IDG). At present

IDG is facing very high attrition in its BIDW group and would like to understand the

reason for the same.

In arriving at the reason for high attrition rate, we will focus on understanding the kind of

organizational design and change process, ABC has. We will also look at the fact that the

influence of organizational factors, in anyway, contributing to the high attrition rate for

ABC or the employees are taking advantage of market situation and willing to compromise

on professional ethics for personal growth.

Introduction

Being a major IT company in the world, ABC; it is expected that the processes and the

policies will be a major driving factor for its business growth and market expansion.

But rapidly changing technological environment and very fiercely competitive IT market

made it impossible for any company to stay at the same level forever. The current scenario

in IT industry is such that every company is more or less capable to deliver a solution

expected by the customer so how to differentiate which one is the best and optimal

solution, which provides value and long term benefits to the customer.

The differentiator factor has made all the companies to look at the way it projects itself as

one stop solution shop and gain confidence of the customer that it is more than capable to

provide the solution. Some of the major IT companies including MNCs have aggressively

worked on differentiator factor and are able to achieve good success but companies like

ABC , even though, a very much respected for the solution it provides in US and Canada, is

1 The name of the company is changed due to confidentiality reasons.


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not able to substantiate that is capability in IDG is good as well. One of the major reason

for this is being the high attrition rate.

Being a profit center of IDG, IDG has to do its own efforts to bid for IT assignments and

subsequently provide solutions once the assignments are delivered by one of its internal

team. IDG is managed to sustain the growth in some of its core areas but one of the areas

called BIDW, it is facing major challenges in establishing itself at par with other major IT

service provider.

We will examine various aspect of organization design and change in relation with high

employee turnaround in this area for IDG and evaluate the workable employee retention

framework.

Key Concepts

Let us look at some of the key concepts of organization design and change

Organizational Theory

The study of how organizations function and how they affect and are affected by the

environment in which they operate

Organizational Structure

The formal system of task and authority relationships that control how people coordinate

their actions and use resources to achieve organizational goals

Organizational Culture

The set of shared values and norms that control organizational members’ interactions with

each other and with suppliers, customers, and other people outside the organization

Organizational Design

The process by which managers select and manage aspects of structure and culture so that

an organization can control the activities necessary to achieve its goals

Organizational Change

The process by which organizations move from their present state to some desired future

state to increase their effectiveness


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Relationships among Organizational Theory,

Structure, Culture, Design and Change

Following diagram illustrate the relationship between organizational theory, structure,

design and change

Figure 1: Relationship between Organization theory, structure, culture, design and

change

Importance of Organizational Design and Change

The importance of organizational design and change can be looked in following areas

Dealing with contingencies

Contingencies are events that might occur and must be planned for

Gaining competitive advantage

The ability to outperform other companies because of the capacity to create more value

from resources

Core competences: skills and abilities in value creation

Strategy: pattern of decisions and actions involving core competences that produces a

competitive advantage

Managing diversity


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Differences in the race, gender, and national origin of organizational members have

important implications for organizational culture and effectiveness

Promoting efficiency, speed, and innovation

The better organizations function, the more value they create

Consequences of Poor Organizational Design and Change Process

The consequence of poor organizational design and change can be looked in following

areas

Decline of the organization

Talented employees leave to take positions in growing organizations

Resources become harder to acquire

Resulting crisis impels managers to change organizational structure and culture

BIDW

Business intelligence is a term which refers to an assortment of software applications

system which helps to analyze an organization's data, giving inputs to make successful

business decisions. This category of applications programs is concerned about transforming

the raw data of organization into easily accessible, high-value information.

Data warehousing is the process of collecting data from multi-varied sources of an

organization and consolidating it into one comprehensive and easily manipulated database.

The term Data Warehouse was coined by Bill Inmon in 1990. The definition from Inmon

is: "A warehouse is a subject-oriented, integrated, time-variant and non-volatile collection

of data in support of management's decision making process".

Data warehousing is not the be-all and end-all for storing all of a company's data. Rather,

data warehousing is used to house the necessary data for specific analysis. More

comprehensive data storage requires different capacities that are more static and less easily

manipulated than those used for data warehousing.

A 2009 Gartner Group paper predicted these developments in business intelligence/data

warehousing market.

Because of lack of information, processes, and tools, through 2012, more than 35

percent of the top 5,000 global companies will regularly fail to make insightful

decisions about significant changes in their business and markets.

By 2012, business units will control at least 40 percent of the total budget for business

intelligence.

By 2010, 20 percent of organizations will have an industry-specific analytic application

delivered via software as a service as a standard component of their business

intelligence portfolio.

http://en.wikipedia.org/wiki/Business_unit

http://en.wikipedia.org/wiki/Software_as_a_service


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In 2009, collaborative decision making will emerge as a new product category that

combines social software with business intelligence platform capabilities.

By 2012, one-third of analytic applications applied to business processes will be

delivered through coarse-grained application mashups.

http://en.wikipedia.org/wiki/Group_decision_making

http://en.wikipedia.org/wiki/Social_software

http://en.wikipedia.org/wiki/Granularity

http://en.wikipedia.org/wiki/Mashup_(web_application_hybrid)


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About The Company

This study is based on one of the largest independent IT and business process services

companies in the world. The company was founded in late 70s and for fiscal year 2008, it

earned revenue of around US$ 3 billion. The company is having around 25,000 employees.

The company operates in more than 15 countries with more than 100 offices around the

world. It is listed on NYSE and growing at rate of 3% year-on-year basis. It is an ISO

9001:2004 and CMM level 5 certified company.

Organization Mission and Vision

Governance Policies, Management Processes, Quality & HR Policies, Financial Policies & Organizational Model

Solution Centre Management Corporate Processes

Customer Management Employee

Management

Investor Management

Solution

Definition

Statement

of Work

Management

Plan

Execution,

Monitoring

and

controlling

Closing

Solution Architecture and System Integration

Solution Development

Application Support and Maintenance

BPO and KPO

Career and

leadership

development

Relationship

management and

Governance

Figure 2: Core Processes at IDG

The company provides focused industry expertise in following areas

Financial services

Government and healthcare

Telecommunications and utilities

Retail and distribution

Manufacturing

Industry Wise Break-Up

Financial Services, 30%

Telecommunication and

Utilities, 17%Retail, 10%

Manufacturing, 8%

Government and

Healthcare, 35%

Figure 3: Revenue from different industries for IDG


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The geographical market for IDG is limited to following combination of regions

US and Canada

Europe and Asia

Figure 4: Revenue from different geographical areas for IDG

The company provides End-To-End services in following areas

Consulting

Systems integration

Management of IT and business functions

SOW Types

IT Services, 53%

BPO/KPO, 8%

System

Integration and

Consulting, 39%

Figure 5: Type of assignments and break-up for IDG

88

12

0

20

40

60

80

100

US & Canada Europe & Asia

Geographical Market


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The BIDW unit comes under Advance Technology group. At present there is no dedicated

structure which takes care of BIDW needs for the IDG unit. The BIDW resources are

scattered across different projects IDG is handling. The hiring and assignments are aligned

to project requirements only. There is very minimal visibility as such for BIDW unit within

the IDG even its peers in the market have dedicated BIDW units to cater for demands in

this area.

Current Organizational Design and Change at IDG

In the recent times, IDG has looking at expanding its operations in India as well as looking

for assignments outside India to sustain its operations and be competitive within the

organization. In doing so, it is facing tough challenges in converting probable sales leads

into success in assignments pertaining to BIDW space. It is not able get benefit of growing

BIDW market. One of the major reasons for this problem is high employee turnaround in

BIDW unit, for IDG.

The following key aspects of organization design and change can be looked at

Authority and Control

IDG has generic organization structure which majority of the IT companies are having;

where-in second level senior executives are responsible for managing a core geographical

area and technological unit. Each of the sub unit which is handled by Senior Vice

Presidents (SVP) is again sub divided in profit center unit like IDG. IDG comes under

India Operations and responsible for its revenues and profits.


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Figure 6: Organization chart for IDG

The organization structure is a having both vertical & horizontal component at its core. The

vertical component is having higher influence on overall organization. The reaon for this is

that the technological areas are not grown to the extent in IDG that it can be treated at par

with the vertical component.

The organization represents more of a tall structure with a sufficiently defined hierarchy

from CEO to a team member. The span of control varies depending upon the engagement

and the importance of the assignment delivered by the respective manager.

Specialization and Coordination

The differentiation factor IDG is structure under three categories. They are as follows

Advance Technology

Matured Technology

Infrastructure Technology

Founder and Chairman

President and CEO

President US, Europe and Asia President Federal Govt.

SVP Technology and

Infrastructure

SVP US Northeast SVP US Central and

South

SVP US Enterprise SVP India Operations

VP Mature Technology VP New Technology VP KPO

Director Engagement 1 Director Engagement 2

Program Manager 1 Program Manager 2

Project Manager 1 Project Manager 2

CFO

CIO

Project Team


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The BIDW unit comes under Advance Technology group. At present there is no dedicated

structure which takes care of BIDW needs for the IDG unit. The BIDW resources are

scattered across different projects IDG is handling. The hiring and assignments are aligned

to project requirements only. There is very minimal visibility as such for BIDW unit within

the IDG even its peers in the market have dedicated BIDW units to cater for demands in

this area.

The integration between these different categories is done at VP level. This means that the

groups are working independently and there is no resource sharing between these groups as

such.

Culture

ABC believes in participative approach where in each of its member is treated as owner of

the company. In spite of the geographical challenges the fundamental of the sharing

common values remains at the heart of organization’s heart.

The common values include an inspiring dream, integrity, a caring, humane management

philosophy and solid values is better able to attract and respond to the profound aspirations

of high-caliber, competent member.

The expectation is that these values will be part of a employees day to day life at the

organization and same will help them in selecting clientele, one aware of the company's

values, and delivering high-quality services at a competitive price, while meeting the

company's profitability objectives. The growth and profitability generated as a result will

allow ABC to offer its shareholders a superior and sustained return on their investment.

To support dream and to create such an environment, ABC has adhered to a number of

principles or governing ideas:

Sharing the same values

Embracing the objectives of clients

Adopting a caring, humane approach towards our members

Focusing on synergy and the strength of teamwork

Participating in the development of our company as its owner shareholders, and sharing

in its wealth

Promoting robust, healthy and sustainable growth to the benefit of all stakeholders

Implementing a management model aligned with our dream and values


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Figure 7: Custom in ABC

Strategy

The strategy planning process is illustrated in following diagram


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Figure 8: Strategy Framework

ABC believes in both organic and inorganic growth.


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Figure 9: Organization Growth Plan

Competence and Technology

ABC deliver end-to-end IT and business process services that allow clients to achieve both

quick wins and long-term results. ABC’s track record of on-time, on-budget delivery is

rooted in ABC's quality and management processes, and its client-centric approach to

delivery differentiates ABC from many competitors. Through our local operating model,

we adapt to the client's way of conducting business, serving as true on-the-ground partners

who can fully address client business challenges and needs.

SYSTEMS INTEGRATION AND CONSULTING

MANAGED APPLICATION SERVICES

TECHNOLOGY MANAGEMENT

BUSINESS PROCESS SERVICES

ABC has long and focused practices in all of its core industries, providing clients with a

partner that is not only expert in IT, but expert in their industries. This combination of

business knowledge and technology expertise allows the organization to help its clients

http://www.cgi.com/en/our-delivery-approach

http://www.cgi.com/en/our-delivery-approach

http://www.cgi.com/en/systems-integration-and-consulting

http://www.cgi.com/en/application-management

http://www.cgi.com/en/technology-management

http://www.cgi.com/en/business-process-services/services


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adapt as their industries change, and in the process, allows self to evolve the industries in

which self operate.

BANKING AND FINANCIAL MARKETS

DISTRIBUTION

GOVERNMENT

HEALTHCARE

INSURANCE

MANUFACTURING

OIL AND GAS

RETAIL

TELECOMMUNICATIONS

UTILITIES

The service delivery process is illustrated in following diagram

Figure 10: Delivery Process in ABC

Decision Making Process

The decision making process is ABC is collaborative and allows all the stakeholders to

provide feedback on the solution. This is a participative and mainly conclusive approach.

http://www.cgi.com/en/banking-and-financial-markets

http://www.cgi.com/en/distribution

http://www.cgi.com/en/governments

http://www.cgi.com/en/healthcare

http://www.cgi.com/en/insurance

http://www.cgi.com/en/manufacturing

http://www.cgi.com/en/oil-gas

http://www.cgi.com/en/retail

http://www.cgi.com/en/telecommunications

http://www.cgi.com/en/utilities


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Figure 11: Decision Making Process in ABC

Innovation

Innovation is driven by dedicated groups in different areas of technology and process. ABC

members to collaborate with each other using these group connections. Following are the

different group connections

Technology Group Connection

Industry Group Connection

Process Group Connection

Conflict Management, Power and Politics

ABC believes in manage conflicts amicably. The organization culture is open to resolve

both “good” and “bad” conflict. The hierarchy is well defined in terms of escalation

mechanism.

Depending upon the type of conflict the related group mangers are involved and

appropriate actions are taken to resolve the conflict.


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In ABC Managers are assigned with powers which are in line with the role they are playing

within the organization. The balance of power does encourage allocation of resources to

where value is created and the give managers better control on the resources.

ABC encourage healthy organizational politics to gain its benefits by establishing a balance

of power in which alternative views and solutions can be offered and considered by all

parties and dissenting views can be heard. Balance of power is allowed to shift over time

toward the group that can best manage the uncertainty and contingencies confronting the

organization.

Challenges for ABC due to High Employee Turnover

Low Project Win Ratio

The BIDW group within the organization is capable enough to handle end-to-end

assignments in this space but due to high attrition rate, the stability factor is in question in

the IT market for IDG, the service are equated against the other less capable companies. In

this scenario the value of the assignment goes down and at that lower price, IDG wouldn’t

like to pursue the opportunity further so they opt out of the competition and loose the

opportunity.

In the reverse scenario, IDG lose some opportunity because some of the customers think

that it is not having enough capability to perform work in BIDW space and prefer not to

consider it for the Bid also.

Following chart gives an idea that in the current financial year 2009, how much progress

IDG is able to make in relation to the project wins

Project Bid Vs Project Got

0

1

2

3

4

5

Apr-June July-Sep Oct-Dec Jan-Mar

Quarter

No

. o

f P

rop

osals

Proposal received for Bid

Successfule Deal

Figure 12: Project success Ratio


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Partnership Value

IDG’s resourcing issue gives advantage to both for the companies who would like to

collaborate with IDG on certain contracts and for the customers who would like to engage

IDG to provide IT solutions for them. Both collaborator and customers would like to

benefit from the low brand image by negotiating contract terms with IDG in their favor.

This aspect is illustrated in the following graph where-in the IDG has to compromise on the

total value for it gets for services it provides from its customers or collaborators in

comparison to the other established companies.

Figure 13: Partnership Value

Low Moral of the Employees

Irrespective of the fact that the IDG’s customer satisfaction index is always above 8 out of

10, the employees feel that the company should do something to control the high employee

turnover. The employees feel recognized if the company for which they are working is

known very well in the market. They feel good about it and it motivates them to work with

more commitment and satisfaction

Time

Partnership Value

Others

IDG


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Low Quality Hiring

The company’s talent acquisition group is facing major challenge in hiring talented and

best suited candidates who fits perfectly in the requirements it has. The basic reason for this

is again related to fact the employees are leaving the company. The candidate prefers to

join other well know company’s like Infosys, TCS, Cognizant, Wipro etc.

They feel that if they work with well known companies then it’ll help them in demanding

higher remuneration in future. They opt for other options, in spite of the fact that IDG is

paying well to its employees in comparison to other companies.

Availability of Skilled Resources

0

1

2

3

4

5

Bus

ines

s Rep

orting

Data

Tra

nsfo

rmatio

n

Arc

hite

ct

Bus

ines

s Ana

lyst

Testin

g

Data

base

Adm

instara

tor

Skills

Skil

l L

evel

Others

IDG

Figure 14: Skill Factor

Overall, IDG is not able to win any significant assignments in recent times. Even after

submitting good proposals for the assignments pertaining to some of the large customers. It

is not able to make much of a progress in BIDW space.

Its dependency on the onsite assignments is significant and even after more & more

offshoring; it is still not able to highlight the significance of Indian development center for

BIDW related work.

Also the company has to compromise on the quality of the resources and collaborators who

can help them to grow faster than what they are able to in the current scenario.


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Influence of Organizational Design and Change in light of

Personal Growth

As per the study carried out within the organization by HR department; they found out that

employees who are with the company for long time are more loyal and understand the true

value of the company but the employees who are with the company for very short period of

time, are somehow not able to align themselves to the mission and vision of the company.

Due to this problem, they are not much excited about the growth of the company and think

more from self development and growth. This also results in low productivity and more

attrition.

Figure 15: Commitment Factor

The high attrition rate among the new joiners is observed due to following reasons

Low Brand Image

ABC believes in philosophy that good work will attract more work. This theme is correct to

some the extent but to have competitive advantage the brand image is of upmost important.

The current environment in organization is not the keep on brand building which adversely

affect the employee pride factor. The employee feel proud of the fact the organization he is

working for is having a god brand value. Since ABC is not having a very effective brand

image in Indian market, employees prefer to leave the organization if they get better offers

outside.

Time

Commitment for the company

Separation from Company


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Fragile Organization Structure

The BIDW practice is scattered around various vertical units and lacks dedicated focus.

The competitors have dedicated BIDW practice in the organization. This leads to the fact

that employee feels that they will be stuck in the same project for ever as there is no

dedicated practice for BIDW which will help them is looking at different growth options

across organization.

Low Emphasis on Organization Culture

The drive to have employees live by the organization is less prevalent in the organizational

approach. More distant the employees with the organization culture higher the risk of non

committal attitude among them. The belonging factor will be missing if the employees are

not aligned to the organizational culture and values. This is a very strong reason why

employee leaves the organization because they don’t feel that they part of the culture.

Less Focus on Innovation

The IDG can into existence very recently and was not able to come-up with good

framework to encourage innovation. In absence of strong processes in this area, employee

are not able to show their capability and creativity which is essential in retaining them

because employees prefer to go to an extra mile by doing something more than normal day

to day work.

Reactive HR Group

The HR group is not established itself as key player within the organization. It is driven by

the profit center management rather than its own instinct. They are more align to what

project demands rather than what employee wants. This also leaves employees looking for

better options in relation to power and political influence in other organization.

Proposed Employee Retention Framework for IDG

As we say “There is always a room for improvement” so let us look at various aspects

which can be considered as part of Employee Retention Framework for IDG

Brand Building

First and foremost action, IDG should take is to start looking at is its brand value in IT

market and understand clearly that how it should proceed towards building a successful

brand. IDG can leverage the experience of US market and look at placing the IDC at par

with the top Indian companies and accordingly plan on the promotion & advertisement to

increase its brand value. The better brand more will be the awareness which eventually help

in demanding fair value for the work, IDG do in BIDW space.


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Figure 16: Impact of Brand

Alliances

IDG should enter into strategic alliances with some of the major vendors of BIDW space

like Informatica, Datastage, Business Objects, and SAS etc. This will help the company in

establish itself better from technological stand point. Also this will help in spreading

company’s capability and achievements to all the stakeholders.

Standardization

The company should look at standardizing its core process in BIDW across the

organization so that only one version of truth is shared with all internal as well as external

customers. Well structured and effective processes like Quality, Human Resources, IT

infrastructure will be always an added advantage. This also gives a good signal to the

potential employees about the robustness and effectiveness of internal processes of the

company.

Beneficial Stakeholder Relation

The company needs to work on two different aspects here. First, it should try to look

beyond customer-vendor relationship by building a partnership relationship with the

customer in all the existing assignments. This will allow the company to negotiate better.

Second, it should increase the moral of employees and should aggressively convince them

Brand Value

Market Presence

Very High High Medium Very Low

Exceptionally Good Advantageous Good Adequate Negligible

Starter

Explorer

Competent

Established

Matured

Innovative

Level of Company


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to contribute in participating mode and use both internal and external information

pertaining to the company for the growth of the company. The employees should be made

aware of the fact that if company is growing, they will be growing both financially and

professionally.

Inculcate Organization Culture at all Levels

The culture needs to be inculcated at all the levels to increase the commitment for the

organization. This will also increase the employee satisfaction.

Organization Re-structure

Since there is no separate BIDW group within IDG; we need to look at an option of

establishing BIDW as one of the Horizontal. This Horizontal unit will be aligned to

technology aspect and Vertical unit should look at specific business/industry Domain. This

will help the company to focus on BIDW as a unit with clearly defined achievable goals.

Figure 17: Proposed IDG Unit Division

Productive Human Resource

IDG needs to involve its human recourse more aggressively in pursuit of excellence. Even

though the company has scored good on Customer satisfaction index but it should start

looking at providing the employees different growth options and prospects. This will

increase their commitment towards the company and will increase their productivity.

Vertical Business Units

BIDW Horizontal Business Unit

Center of Excellence

Training

Project Mgt

Pre-Sales

Resource Mgt

Alliance Mgt

Retail

Manufacturing

Telecom

BIDW - Horizontal Business Unit


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Productive human capital is always a very good signal to the market about the capability of

the company.

Inculcate Innovation at all levels

Being an innovative company, one is always have edge over the other competitor. IDG

should put more emphasis on Research & Development to provide innovative environment

within the company. Apart from creating cost effective products in BIDW, it’ll also give a

chance to the employees to show their talent and will help in growing knowledge culture

within the organization.

Building Customer Relationship

From IT industry perspective, if a company is receptive about maintaining healthy

customer relations and is sure about the product quality, it produces then it’ll always be

willing to provide assurance to the customer in the form of guarantees and warranties.

IDG is no exception to this and should use this fact more aggressively to signal to the

market that it produces quality product and is ready to extend support even after the

product delivery.

Conclusion

The study examined various aspects of organizational design and change in relation to

IDG’s BIDW unit of a major IT company of the world and looked at the proposed

framework for this unit to retain its human resource. It has been observed during the study

that high employee turnover happens is not only due to personal aspiration but at the same

time organizational design and change also plays a major role.. The more streamlined and

robust organizational design and change processes a company has more market advantage

it got by retaining the skilled resources. By improving and establishing its operations from

design and change perspective, the IDG’s BIDW unit can definitely improve its market

presence and will be able to contribute substantially better in IDG’s revenue & profit.


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References

IDC

IT revenue figures http://gigaom.com/2009/12/03/idc-2010-forecast-apples-ipad-arrives-frenetic-tech-ma/

Wikipedia

Definitions in Key Concepts section www.wikipedia.org

Book

Organizational Theory, Design, and Change - Fifth Edition Gareth R. Jones

http://gigaom.com/2009/12/03/idc-2010-forecast-apples-ipad-arrives-frenetic-tech-ma/

http://www.wikipedia.org/

OB Project Report ePGP (02-081,086,065)

Documents

decision making

high employee

high employee

advance technology

high attrition

poor organizational

idgs bidw

dedicated