OB II (SECTION D)
ASSIGNMENT 1 a. Select an organization and describe its organization structure. How does it resolve the four design challenges? b. What in your opinion is the basis of their organization design? How does its business justify such a structure? Explain. c. Would you suggest another structure that would be more appropriate? Defend your suggestion.
Answers : Analysis of organizational structure of Deloitte US-India Pvt. Ltd a) Overcoming design challenges: 1. Differentiation:
Differentiation provides the opportunity to specialize in a complex organization. It establishes task and authority relationship that allows the organization to achieve its goal. It is a process of allocating roles and responsibilities on the basis of skill sets and available resources.

2. Balancing differentiation and integration:
Senior Manager is a part of more than one project. Hierarchy of authority is established which helps to clearly define roles and responsibilities of each level.
In order to tackle sub unit orientation, effective co ordination, co operation and communication among separate sub units. A right balance can be achieved through effective technological tools.

3. Balancing centralization and decentralization:
Operational decisions are delegated but strategic decisions are centralized. Director / Partner decides the project bidding process and other strategic decisions. Senior Manager heads a project.
All decisions pertaining to a project rests with the senior manager. A senior manager further delegates responsibilities to manager and senior consultant. Manager decides the number of people required for a particular team with respect to the skills required and availability of resources. The manager is also responsible for deciding timelines and milestones of a project. Senior Consultant takes care of day to day issues of the project and also assigns work to the team members. Decisions concerning cross functional aspects and switching of roles within the team also comes under the purview of senior consultant.

4. Balancing standardization and mutual adjustment:
A right balance has to be achieved between standardized procedures and informal way of working in an organization. An individual’s roles and responsibilities are clearly defined through hierarchical structure. There are standard procedures in place for going about the project work apart from the usual protocols to be followed for handling clients or going for an on-site project. Despite standardized procedures, if an individual has an idea to share, he or she is empowered to share it in the right forum.
b) In consulting, there are different projects catering to different functions. Thus, Deloitte has chosen to have an organizational structure based on each function. The Director of a particular function brings in projects exclusive to that particular domain. All functions e.g. SAP, Deloitte Digital etc. are at one level. Within each function there is a vertical hierarchy. There are several Senior Managers reporting to each Director/ Partner. Depending upon which area the project belongs to e.g. real estate, health care etc. they are assigned to a Senior Manager. Hence a senior manager may be handling more than one project at a time. Afterwards each project has a project lead that is a manager. So each project is being handled by a manager which is being overlooked by a senior manager. Each project consists of many modules. These modules are handled by individual teams. Senior consultants are team heads. Team comprises consultants and analysts. Several analysts report to the consultants.
This works for a consulting firm because of the variety of projects that they receive with respect to not only function but also sector. Thus it is important to have directors who bring in function specific projects which are then further categorized by sectors and handled by senior managers. Also since each project has various dimensions to it, therefore various teams are constructed to manage each dimension.

c) The most ideal organizational structure is determined based on the strategic goals that the company intends to achieve and the allocation based on the availability of different resources and promotion of relationship between the different functional and divisional levels.
In case of Deloitte, there is minimal differentiation based on authority and hence does not have a tall organizational structure. In such consulting firms that depend on the dynamic market conditions, organic structures work in their favor by offering opportunities to modify the organizational structures to suit their needs. A decentralized organization like that of Deloitte provides enough room for flexibility to respond to changes in the external environment and aid in increasing the revenues. Also the ability of different teams to use the management by objective, whereby the subordinates are evaluated based on their skills and abilities to handle a particular project is an effective method to ensure optimum allocation of projects based on experience and capabilities.
The organizational structure in Deloitte allows for faster decision making that enhances the stakeholder’s value and improves communication and coordination between different functions and divisions.