Unit 16 Institution Building
Unit 16 Institution Building
Unit 16 Institution Building
Objectives After studying this unit, you should be able to understand : the concept of organization, institution, institution building and the characteristics of institution the factors which influence institution building the process aspects of institution building significant dimensions of institute building: self-renewal and innovation the role of the chief executive in institutional building. Structure 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 Organization Vs. Institution What is an Institution Factors Influencing Institution Building Institution Building : The Process Significant Dimensions of Institution Building: Self-Renewal and Innovation Institutional Building: The Role of Chief Executive Summary Self-Assessment Questions Further Readings
Appendix 1. Organisation Crises and Outcomes Appendix 2. Checks to Measure the Extent of Institutionality
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What is Institution Building? Institution building referts to transforming an organisation into an integrated organic part of the community, so that the organisation can effectively play the role of projecting new values and become an agent of change in the community. Hence institution building refers to the process aspects of: a) establishing or transforming an organization; b) making an organisation an integrated or organic part of the community; c) the maintenance role of adopting or adjusting to the existing values; d) projecting new values through its own efforts of self growth and organisational renewal, and thus; and e) the proactive role of bringing change contributing to change in the existing values of needs of the society. Activity C What is Institution Building? Explain. ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ...........................................................................................................................
Institution Building
role set members and providing sufficient autonomy which is commensurate with responsibilities on the job, are essential for institution building. Trust is an important dimension for effective interpersonal relationship and it is often said that trust begets more trust. Organizations should provide opportunities for upward growth and development for those who are competent and have potentialities for growth and development. Otherwise, institutional development is jeopardised. 3) A Third Variable of Importance is Organisational Structure and Design: Organisation is basically a system of input process and output subsystems. Men, money, raw-material and machinery form the inputs. The process aspect is concerned with the optimum utilisation of these inputs to produce certain outputs. The output can be the goods produced or services rendered that serve the needs and interests of the society. The organization design and structure is the basic frame work around with formal interactions take place within and in between the different sub-systems (departments). The structure influences the extent to which the different resources may be optimally utilised. the work culture that is created and sustained within the institution the relations with systems outside the institution the ability to adopt to changing demands and requirements arising from the external environment. Too rigid structure stifles individual autonomy, creativity and ability of the organization to meet changing demands. At the same time, too loose a structure results in sub-optimisation of resources, lack of appropriate direction and work culture. In such an environment organizations may soon become defunct. The structure should not be static but dynamic and have the necessary mechanisms to foster and stabilise appropriate traditions and work culture and also establish linkages with its customers and major client systems. It should be able to provide a leadership role to similar organizations. Such a structure forms the basis for institution building. 4) A Fourth Aspect that Fosters Institution Building is the Organisational Culture: Organizations should strive at developing greater cooperation among the members. This can be achieved by better integration of departmental functions and developing homogeneity of thinking among the members. Commonality in the goals of the organization and those of the employees, and recognition and understanding of the symbiotic relationship that exist between one employee and the other, or one department and another result in better accommodation and cooperation. Conflicts are to be viewed positively as providing opportunities for innovativeness and understanding others position in addition to ones own. Mechanisms of establishing a balance between the autonomy of individual members and coordination for common goals help in institution building. In its relationship with outside organisation, the institution should seek collaborative relationships at the same time maintaining its own identity. 5) A Fifth Factor Contributing to Institutional Building is Leadership at the Top Management Level. The leadership style should be an amalgamation of the roles of a developers and an executive. A developer places trust in his subordinates, provides them opportunities to take up responsibilities, motivates them to the peak of their performance and provides a creative work atmosphere. He is supportive in his relationships with others and provides opportunities for growth, self-direction and self-control for his subordinates. An executive as a team-builder, inspires participation among
the members and thereby ensures their commitment to organisational goals, builds loyalty among his subordinates and also a keen sense of self-respect, and resolves conflicts strategically and creatively. The leader ought to devote his full attention and time for institution building and take pride in the development of his people. He has to establish effective linkage with outside organizations and project the image of the institution as a competent entity to serve the needs of the society. He needs to gear up the organization to meet changing needs and demands effectively. At the same time he is not enamoured of his position, but is willing to develop others to step into his whenever required. 6) Ability to Establish Effective, Operative Linkages with External Environment is Necessary for Institution Building: Such a liaison helps in understanding the needs and expectations of the external sub-system such as clients, customers, suppliers, other organizations etc., to which the institution has to finally cater to carve a niche for itself in the environment. The linkages are: enabling linkages with other organizations or social groups which are likely to control the allocation of resources and authority (e.g. for government) needed the organisation to function. functional linkage with those external sub-systems that provide the inputs for the organization and utilise the product or service outputs of the oganisation (e.g. suppliers, customers or client group). associative linkages with other institutions of a similar nature for possible collaborative relationships (eg. sister institutions). contingent linkages, depending upon the situational necessities with certain other sub-systems that may become relevant or important at a given time (for e.g. a legal system, a consultancy unit). Activity D How the following factors influence institution building: organizational goals. organizational structure and design. organization culture. relationship with external environment. ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ...........................................................................................................................
Institution Building
Failure to resolve the crisis leads to living on past laurels and image-creation or image-boosting which may be at variance with its actual performance the greater the variance the greater is the likelihood of returning to instability. The next issue that concerns the organization is to actualise its potentialities and to achieve uniqueness (characteristic of its activities). Such a goal can not be realised until the organisation is willing to bring the necessary changes that involve certain amount of risk. Successfully overcoming a crisis provides opportunities for growth and development to its personnel. Unsuccessful resolution leads to specialisation in a narrow field, conservatism and resistance that inhabits further development. The organization may not be able to realise its uniqueness. The sixth issue of concern involves the organizations responsibility to society, a desire to gain soceitys respect and appreciation and to improve the quality of life of its own employees. The crisis generated by efforts to be respected and appreciated depends upon the felt-needs for such an endeavour, organizations financial status, investment opportunities elsewhere and the present self-image. By resolving this crisis correctly the organisation gains public respect and appreciation for itself as an institution contributing to society. Incorrect resolution leads to castigation by the public as heedless barons or heedless tycoons. The different crisis discussed so far need not operate in the same consecutive order. Depending upon the environmental forces acting on the organization, a mature organization may revert back to crisis of the earlier stages. When the nature of the crisis is not correctly understood, organisations are unable to resolve it adequately resulting in confusion and intolerance. However, by resolving the crisis at each of the stages successfully, an organiation grows from strength to strength. Resolution of crisis makes demands on the managements knowledge, skills, experience and attitudes and it is quite possible that at different stages of growth, the managerial and leadership skills required are different. Activity E What are the different stages of growth of institutions? ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ...........................................................................................................................
Institution Building
The present day organizations are at a nexus of various external and internal forces. Organizational renewal, hence, is of high priority so that organizations can do a self-analysis of their growth and their problems. The organizational leadership should look for new paths, new methods and innovative approaches so that the organization can cope with changing demands and forces. Innovation Innovation may be defined as a new idea or practice or approach that helps the system or the individual to deal effectively with a problem or change. Innovation is possible if the organization has a conducive environment for it to occur such as openness flexibility, decentralisation etc. Some characteristic features of innovation are : It does not function in isolation or vacuum. Innovative changes should be thought of in a system perspective i.e. the likely changes in the internal sub-systems. It thrives in a collaborative rather than a competitive environment. Acceptablity of innovative change depends upon: 1. Its relative advantage over the existing ideas or approahces or other suggested ideas or approaches. 2. Compatibility with existing norms, values and work behaviours. 3. Simplicity both in concept and practice. 4. Utilitarian value for either coping with external demands or obtaining the desired results and the stakes involved. 5. Compatibility with existing skills. If innovative changes require new skills, people should be trained sufficiently in advance. Otherwise, resistance may be built inspite of the functional value. Innovative planning is an organizational necessity for self-renewal and institutional building.
Institution Building
An institutional image is in terms of not only how it perceives its own status but also how it is perceived by similar organizations in the environment. A chief executive is not only a spokesman for his organization but also a liaison builder. It is in terms of his efforts that the institution can play the role of a leader, trend-setter and a collaborator. The chief executive should have the basic discipline, devotion and commitment to work, a sense of vision, a futuristic perspective and above all a determination to build the organisation to reach its maximum potentiality. He should allow others to grow and should not be threatened by the achievements of his colleagues. When the time comes he should give way for his successor without being highly possessive about the organization.
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Institution Building
Electronics
Space Research
Textile Research
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Indian National Committee for Space Research Indian Space Research, Organisation, Atomic Energy, Commission, Electronics Committee. Department of Atomic Energy, International Atomic Energy Agency, and Committee for Space Research of the United Nations
One of the ways of understanding the impact of leadership actions on institution building is by presenting the three guiding strategies he had intuitively used. These three strategies rest on a single pivotal value which is the primacy and centrality of an individual. The three guiding strategies he used to build institutions are: Networking strategy or creating interacting and overlapping clusters internally as well as externally both to produce a vision for the institution and to translate the vision into actions in terms of research programmes and projects. Trusting strategy or creating a climate of trust providing freedom of action to the individuals, ensuring autonomy, and emphasising horizontal control; and caring strategy or creating a climate of caring by the leader remaining approachable through open channels of communication and emphasising the role of administration as a support system to the core tasks of the insitution. The lessons that emerge from the study of Sarabhai as an Institution builder can be summed up as follows : In order to develop institutions it is important to place an individual at the centre of institution building efforts. The task of a transforming and transactional leadership is to present a vision which will inspire many and to provide meaningful exchange relationships. Leadership actions have to nurture trust constantly, creating inter-acting and overlapping clusters both within and outside the organization. Failure to do so is likely to lead to the breakdown of the institutional aspects of the organization resulting in its decline and decay. It is important for an institution builder to identify and play multiple (formal and Psycho-Social roles within and without the institution. Decline in the performance of institutions could be traced to inadequate roles (both formal and Psycho-Social) to translate externally oriented, interface, and internally oriented leadership strategies for institution building. While the criticality of organisational culture to the development of institutions has always been emphasised, the importance of building in trust and caring has not been adequately emphasised in the literature.
Source: Adapted from Institution building : Lessons from Vikram Sarabhais Leadership, S.R. Ganesh & Padmanath Joshi, Vikalpa Vol. 10. No. 4, Oct-Dec. 1985. p. 399-414.
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Activity F What is the role of the Chief Executive in institution building? Describe. ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... ...........................................................................................................................
Institution Building
16.7 SUMMARY
In this unit, we have seen that an organization, over a period of time, depending on its stability becomes an institution. The factors which influence institution building, process and dimensions of institution building have been discussed. The role of the Chief Executive in institution building has also been dealt with.
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Appendix-1
Renewal : Institutionalisation
ORGANIZATIONAL CRISIS AND OUTCOMES Outcome if issue is correctly resolved: New Organization comes into being and starts functioning Organization becomes viable. Learns from experiences. Understands reality. Organization is strong, efficient and flexible enough to respond to changes Reputation motivates to improve quality of goods and services. Takes advantage of its unique capability and provides growth opportunities to its people Gains appreciation as an institution contributing to society. Outcome if issue is incorrectly resolved : Idea remains abstract. Organization cannot adequately develop. Organization fails or exists marginally as it fails to adjust to realities of the situation Organization is likely to retun back to survival stage or becomes inflexible for changes. Organizations more bothered about building its image than improve performance. Greater discrepancy likely to arise between projected image and actual performance. Fails to develop its uniqueness, concentrates on narrow areas for better security. Develops a paternalistic stance which inhabits growth. Organization may be accused of lack of any social responsibility and bothered about its profits and nothing else. Source: Lippit, G.L. and Schnidt, W.H. Crisis in a developing organisation, Harvard Business Review, 45 (6), 1967, p. 109.
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Appendix 2
Institution Building
CHECKS TO MEASURE THE EXTENT OF INSTITUTIONALITY 1. Has the institution grown beyond the needs of survival and stability ?
2. To what extent it can be considered replete with regard to goals, tasks, missions, resources etc ?
3. How effectively does it relate to the external environment? Has it linkages with relevant external sub-systems to an adequate degree ?
4. Does it stand by its intrinsic value? In other words, how is it rated for its functional value in the soceity: excellent, average or poor ?
5. How pervasive is its influence on other systems? Is it a trend setter or just one among the rest? Can it Generate a new need or positive values in the community or suggest novel methods for the resolution of current problems ?
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