What are the goals of OD? Which problems are addressed by OD experts?

The two major goals of OD programs are

(1) To improve the functioning of individuals, teams and the total organization, and the total organization, and

Books on OD  theory

(2) To teach organizations members how to continuously improve their own functioning.

Organization development deals with the gamut of “people problems” and “work systems problems” in organizations like :

Poor Morale, Low Productivity, Poor Quality, Interpersonal Conflict, Unclear or Inappropriate Goals, Inappropriate Leadership Styles, and the like.

In short, where individuals, teams and organizations are not realizing their potential, OD can improve the situation.

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What is organizational development ?

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What is Organizational Development?

Organization development is a systematic process for applying behavioral science principles and practices in organizations to increase individual and organizational effectiveness.

·         Organization development is an organizational improvement strategy.

·         In the late 1950s and early 1960s, it emerged out of insights from group dynamics and from the theory and practice of planned change.

·         Organization development is about how people and organization function and how to get them to function better.

·         The field is based on knowledge from behavioral science disciplines such as psychology, sociology, anthropology, systems theory, organizational behavior, organization theory, and management.

·         OD practitioners are consultants trained in the theory and practice of organization development, with knowledge from the underlying behavioral sciences.

·         OD programs are long term planned, sustained efforts.

·         Such efforts begin when a leader identifier an undesirable situation and seeks to change it.

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Role of Small scale and cottage industries in India’s industrial and economic development.

Small scale and cottage industries have an important role in India’s industrial and economic development as would be clear from the discussion below:

1. Expansion of SSI sector and its share in industrial output.

 

The number of units in the small scale sector was 15.91 lakh in 2002-03 and this rose to 24.68 lakh in 2007-08. As far as output of units in the SSI sector is concerned, it was Rs. 3,14,850 crore in 2002-03 and this rose to rs. 6,95,126 crore in 2007-08. The production in the SSI sector rose by 17.5 per cent in 2006-07 and by 18.8 per cent in 2007-08. The share of small scale industries in the country’s manufacturing output is around 39 per cent.

2. Employment generation. The SSI sector employed 264 lakh people in 2002-03 and this number rose to 322 lakh people in 2007-08. Within the manufacturing sector itself, small and decentralized sector contributes about four-fifths of manufacturing employment in India.

 

An important constituent of this sector is the manufacturing activity consisting mainly of textile based and agro based products and units producing construction materials. In the urban areas employment potential seems to be the largest in the non household, tiny sector segment of the manufacturing sector. Overall, it has been estimated that labour intensity in the micro and small enterprises sector is almost 4 times higher than the large enterprises.

 

3. Efficiency of small scale industries. Whether large scale industries are more efficient or small scale industries are more efficient, is a matter of debate. The problem arises because of the fact that efficiency can be defined in many different ways.

 

Comparison of the SSI sector with large manufacturing sector made for the year 2001-02 by the Census Report shows that the SSI sector is a better employment generating sector.

This would be clear from the fact that employment generated by the SSI sector per Rs. One lakh investment was 1.39, as against only 0.20 in respect of the large manufacturing sector. This means that the organized sector requires an investment of Rs. 5 lakh to generate employment for one person whereas the SSI sector generates employment for 7 persons with the same investment.

 

With regard to investment output ratio also, the SSI sector fared almost on par with the organized sector an investment of about Rs. 43,000 was required in the organized sector to generate an output worth Rs. One lakh whereas in the SSI sector, a marginally higher investment of Rs. 48,000 was required to generate the same amount of output.

 

4. Equitable distribution of national income. One of the main arguments put forward in support of the small scale and cottage industries is that they ensure a more equitable distribution of national income and wealth. This is accomplished because of the following two considerations:

 

(i) The ownership of small scale industries is more widespread than the ownership of large scale industries, and

 

(ii) They possess a much larger employment potential as compared to the large industries.

 

5. Mobilization of capital and entrepreneurial skill.

6. Regional dispersal of industries

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Which Small Scale Industries need Registration ?

Registration in the SSI sector is voluntary. The registration is done with the District Industries Centres (DICs), firstly on a temporary basis and subsequently, on the request of the concerned entrepreneurs, on a permanent basis.

However, as far as manufacturing units are concerned, their registration is mandatory under Sections 2m(i), and 2m (ii) of the Factories Act.

Section 2m (i) refers to units engaging 10 or more workers and using power whereas Section 2m (ii) refers to units engaging 20 or more workers and not using power.

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Which categories of Industries are covered under SSI?

 

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Which categories of Industries are covered under SSI?

The small scale industrial (SSI) sector is a vital constituent of India’s industrial sector. It contributes significantly to India’s Gross Domestic Product and export earnings besides meeting the social objectives including that of providing employment opportunities to millions of people across the country.

The SSI sector covers a wide spectrum of industries categorized under

Books on SSI Information

a) Small scale industrial undertakings,

b) Ancillary industrial undertakings (ANC),

c) Export Oriented Units (EOUs),

d) Tiny Enterprise (TINY),

e) Small-scale Service Enterprises (SSSEs),

f) Small-scale Service Business (Industry Related) Enterprises (SSBEs),

g) Artisans, Village and Cottage Industries, and

h) Women Entrepreneurs’ Enterprises, i.e., a small-scale unit where one or more women entrepreneurs have not less than 51 per cent financial holding.

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DIFFERENCE IN MANAGEMENT CONTROL BETWEEN PROJECT & ONGOING OPERATION

Management control of a project is different from an ongoing operation due to one or more of the following reasons:

1. Objectives: A project has a single objective, while operations have multiple objectives. Project manager has a fixed target that is the end of the project. His/her performance will be judged by the result of the end product. But manager for regular operation has to maintain his performance throughout the year.

2. Effect on organization:    

3. Emphasis of control : Control is emphasized on the project, so that the same can be satisfactorily completed within the projected time limit and at an optimum cost, preferably without cost overrun. Control in ongoing organization focuses on the activities for a specified time period on all the work done during that time period, keeping cost control, quality and delivery schedule in mind.

4. Interchangeability : Projects usually involve trade off among scope, schedule and cost. Cost can be reduced or increased by curtailing or increasing the scope of the project. Delivery schedule can be advanced by incurring extra cost by way of paying overtime, travel expenses, etc. Such practices are regulated in ongoing organization.

5. Cost standards : Cost estimates of a project are prepared by collecting data, which may be accurate or are unfamiliar at the time of making estimates. Hence, a contingency provision is created for adjustments. This is not accepted while computing standard cost of a product. Moreover, project plan may be changed frequently due to environment condition or unexpected situations which cause change in the cost estimates.

6. Environment: The projects which are undertaken outside the premises of the organization, suffer from numerous external problems arising out of natural calamity, political disturbance, interference by local people, etc. Ongoing organizations, generally, enjoy the protection of the factory premises.

7. Difference in rhythm : The rhythm of a project differs from that of an ongoing operation distinctly. Most of the projects start slowly, then build up momentum and take the activities to a peak, and then taper off as completion is in sight. Ongoing activities tend to operate at the same level of activity, unless there is a seasonal effect or change in activity plan.

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