Organisational Theory, Structure and Design JUNE 2026

Description

Organisational Theory, Structure and Design

Jun 2026 Examination

Internal Assignment

Q1. A fast-growing consumer goods company has recently restructured to become less hierarchical and more decentralized, empowering team leaders to make operational and strategic decisions. However, this shift has resulted in increased coalition-building and political maneuvering, as individual managers form alliances to gain support for competing product launches and resource access. Senior management is struggling to ensure these coalitions remain constructive and aligned with company values.

Apply the relevant political strategies and leadership models to guide how senior management should foster constructive politics while curbing destructive behaviors in this decentralized environment. What mechanisms can be put in place to encourage healthy coalition-building and discourage unethical political tactics? (10 Marks)

Ans 1.

Introduction

Decentralization is a structural decision with political consequences. When authority is distributed across multiple team leaders and each is empowered to make operational and strategic decisions, competition for resources, visibility, and organizational influence naturally follows. Coalition-building in such environments is not inherently problematic. It reflects the reality that in decentralized organizations, decisions require broader buy-in and individuals seek allies to advance their priorities. The challenge for senior management is not to eliminate organizational politics, which is impossible, but to shape the conditions under which political behaviour occurs so that it remains constructive and value-aligned rather than destructive and self-serving.

Concept and Application

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Q2 (A). An established Indian manufacturing company, long oriented toward cost leadership in domestic markets, is considering substantial investments in electric vehicle (EV) technology. This strategic shift is motivated by global sustainability trends, strict environmental regulations, and government initiatives like Atmanirbhar Bharat. Shareholders are concerned about high initial costs and uncertain market demand, while management believes early adoption will provide a competitive advantage. Evaluate the risks and opportunities involved in reallocating resources toward EV technology under the current Indian strategic management context. (5 Marks)

Ans 2(A).

Introduction

A manufacturing company built on cost leadership faces a genuine strategic inflection point when considering EV technology investment. The competitive logic of cost leadership depends on operational efficiency in known product categories. EV technology introduces not just new products but an entirely different value chain, which creates both significant opportunity and significant risk depending on how

 

Q2 (B). EcoTech, a medium-sized engineering firm, has traditionally thrived using a strong classical approach, clear hierarchy, rigid procedures, and standardized roles. However, recent staff surveys reflect declining engagement and innovation, while new entrants outpace EcoTech in adapting to changing market needs. The CEO considers pivoting towards a more modern systems-based management style, but senior managers are concerned about losing control and creating confusion. Evaluate the merits and drawbacks of shifting from a classical to a modern, systems-based approach in EcoTech’s context. (5 Marks)

Ans 2(B).

Introduction

EcoTech’s situation captures one of the most common organizational dilemmas in medium-sized engineering firms: a management model that delivered past success is now creating the conditions for future decline. The classical approach that built EcoTech’s operational consistency is the same approach that is limiting its adaptability and suppressing the employee-driven innovation it needs to compete with more agile