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Designing Developmental Organizations

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Designing Developmental Organizations

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizationstal Organizations: search for an Indian TheoryAbstractThe developmental organizations in public sector emerge largely to allocate resources to such re

gions and people which may not be able to attract market forces on their own. However, many of these commercial organizations engaged in procuring, pr Designing Developmental Organizations

ocessing or distributing some of the rural inputs or outputs may have to compete, support or supplement the effort of other market organizations also.

Designing Developmental Organizations

Major dilemma that confronts organizational designers is “how to match the economic and social objectives which are many times contradictory and ambi

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizations such demands on the organizations that various subsets of internal and external environment do not perceive in an identical way. These contradictions

in Indian context necessitate reappraisal of various western theories of organizational design so that an appropriate alternative can emerge.The pape Designing Developmental Organizations

r first describes various forces that influence emergence of an organization such as colonial heritage, linkage effect, bureaucratic pervasiveness, in

Designing Developmental Organizations

ternational aid, tradition culture and household orientation and features of the receiving system. The characteristics of public sector organizations

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizationssocio-cultural context. The need for reappraising this context however is also felt necessary to reconceputalise the role of a manager in rural develo

pmental organization.2Designing Developmental Organizations: search lor an Indian TheoryKey Issues(i)why do organizations exist? Why do we need to dif Designing Developmental Organizations

ferentiate developmental organizations from nondevclopmcntal organizations?(ii)What arc the characteristics of Indian developmental commercial organiz

Designing Developmental Organizations

ations which necessitate reappraisal ol applicability ol some OÍ the Western theories?(iii)What is the alternative framework in which implication lor

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizations-versa. Market’s failure is said to occur when costs of conducting transactions between firms (or individuals) exceed the cost of internalizing them i

n organizations. Organizations fail when a market or an organizational alternative offers lower transaction cost (Williamson, 1975 in Meyer, 1982 p.10 Designing Developmental Organizations

7).(ii)To coordinate roles of more than a few people engaged in any particular task over a period of time with some shard understanding of purpose, ou

Designing Developmental Organizations

tcome and rules, the organisations emerge.(iii)They are ‘goal directed; boundary maintaining, activity system’ (Aldrich 1979), and evolve by taking fo

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizations pre-disposing individuals to respond to incentives held out by the opportunity structure;(c)the distribution of resources and the terms on which they

are available to organizational entrepreneurs who wish to take advantage of perceived opportunities (Aldrich, 1982, p.22)(iv)lhey exist to legitimise Designing Developmental Organizations

the conflicting interests in society which tilling class tries to resolve or diffuse through distinctive organizational fonns.We will se|>aralely dis

Designing Developmental Organizations

cuss whether the reasons which justify the existence of oiganizations also explain die affiliations of individual members with the organization. We wo

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizationswered here before we proceed further:(i)Whether the public sector oiganizations also emerge in the framework mentioned above;(ii)Whether Indian organi

zational population has some distinctive traits which will explain emergence of some type of organizations and not others.3In response to the first qu Designing Developmental Organizations

estion, it will suffice to state here that in a mixed economy framework, the role of state is to identify such sectors of economy on the growth of whi

Designing Developmental Organizations

ch larger economic growth depends, i.e., the core sectors and also to play an active role in those sectors and spaces which will not attract market fo

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizationse or state. E.g. Agriculture and Irrigation are state subjects with the result any large scale policy or procedural changes will involve several state

s and their political complexities. At the same time certain central organizations are set up which provide the umbrella under which states devise the Designing Developmental Organizations

ir own organizational or institutional set up.Regarding second question, it is necessary to appreciate why do we want to look into population characte

Designing Developmental Organizations

ristics to study emergence of individual organizations. Just like biological ecologist who do not often concern with the individual organism, organiza

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizationsch as rural development, involves multiplicity of organizations, it is futile to draw inference about the effectiveness of task or abut its possible i

mprovement by concentrating on organizations as unique, distinct entities.Historicity is another reason which suggests that organizational context can Designing Developmental Organizations

not be understood unless one takes into account the forces in society which operated in past influencing emergence and sustenance of some organization

Designing Developmental Organizations

s and decline of others. Historicity pervades the internal and external context of organizations, e.g. Experience of client system of a new organizati

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizationso. Therefore, by studying population characteristics, at one point of time, one might be able to get only some idea of past which would have affected

emergence of different organizations.Since the population of organisations in Indian context would include extremely diverse type of organisation foll Designing Developmental Organizations

owing from the wide mix of private, public, joint sector and cooperative bodies, we would delimit rhe population coverage to only commercial developme

Designing Developmental Organizations

ntal organizations. Developmental organizations are distinguished from others in following ways:(i)They are set up to achieve some social objective li

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

Designing Developmental Organizationsin their performance, i.e., they are not expected to discriminate in favour of larger or better endowed supplier's or consumers.

DESIGNING DEVELOPMENTAL ORGANIZATIONS:SEARCH FORAN INDIAN THEORYAnil K. Guptaw.p. No. 444Indian Institute of ManagementAhmedabad1Designing Development

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