Question

‘Global Tech Ltd.’ was a multinational company that manufactured modern electronics devices and employed nearly 10,000 people from across the world. The company had a well-defined organisational structure with separate departments for finance, marketing and production. Every department had its own objectives, policies and style of working. As each department performed its activities in isolation from others, conflicts arose within the organisation.

Further, due to complex technology involved in producing modern electronic devices, ‘Global Tech Ltd.’ relied heavily on specialists. The specialists were confident of their professional knowledge and often did not consider suggestions from others in matters pertaining to their area of specialisation. This resulted in conflict among different specialists and others in the organisation. As the company continued to grow, more employees from different backgrounds and work habits joined the organisation. The increasing size of workforce, along with departmental differences and dependence on specialists, made it difficult to ensure that everyone worked towards the same organisational goals. Therefore it became necessary for the management to harmonise individual goals with organisational goals and integrate the efforts of departments and specialists to achieve common objectives.

(i) Identify and state the concept which would help ‘Global Tech Ltd.’ in bringing together the efforts of employees and specialists to achieve common goals of the organisation.

(ii) Quoting lines from the given case, state any three points of importance of the concept identified in (i) above.

Hint:

The case asks to "harmonise" goals and "integrate" efforts of departments and specialists. That is coordination. Match each case line to functional differentiation, specialisation and growth in size.

Answer 1

Step 1: Identify the concept from the case:
The case talks about departments working in isolation, specialists ignoring others and a growing workforce. The management wants to "harmonise individual goals with organisational goals" and "integrate the efforts of departments and specialists".
Bringing together the efforts of different people and departments so that they pull in one direction is the function of coordination.
Coordination is the force that binds all the functions of management. It synchronises the activities of different departments and people to achieve common goals.

Step 2: Importance of coordination: point 1, functional differentiation:
Line from the case: "Every department had its own objectives, policies and style of working."
Every organisation divides work into departments such as finance, marketing and production. Each department tends to focus on its own targets and may forget the larger goal.
Coordination links the work of all these departments so that they do not clash with each other. It makes sure the separate activities add up to the organisational objective.

Step 3: Importance of coordination: point 2, specialisation:
Line from the case: "The specialists were confident of their professional knowledge and often did not consider suggestions from others in matters pertaining to their area of specialisation."
In a modern firm, specialists believe that only they are fit to judge and decide matters of their own field. They seldom take advice from others, and this causes friction.
Coordination reconciles the differences between specialists and other staff. It makes them see the whole picture and work together.

Step 4: Importance of coordination: point 3, growth in size:
Line from the case: "The increasing size of workforce, along with departmental differences and dependence on specialists, made it difficult to ensure that everyone worked towards the same organisational goals."
As a firm grows, the number of employees rises and they come from different backgrounds with different work habits. Their efforts get scattered.
Coordination integrates these efforts and harmonises personal goals with organisational goals, so the large workforce moves together.

Final Answer:
The concept is Coordination. Its importance is shown by functional differentiation (departments in isolation), specialisation (specialists ignoring others) and growth in size (larger workforce with different habits).