Department of Management Studies

Organisational Structure and Design

The Organisational Structure and Design of a Media Organisation An Analysis of Radio Mirchi 98.3 (Hyderabad)

Submitted by:

MS10A007 MS10A017 MS10A027 MS10A037 MS10A047 MS10A057 MS10A067 MS10F024

Asan Kumar S Dipanshu Singh Junna Satwika Neha Khanna Shabeer PM Suryanarayana Murty ASR Neha Suresh Jain Bruening Sebastian

Group 7

Department of Management Studies

Table of Contents Acknowledgment Introduction Organization Structure Organization Size Organization Strategy Organization Technology Organization Culture Organization Environment Organization Effectiveness References 3 4 8 14 17 20 24 28 33 36

Group 7

Department of Management Studies

Acknowledgment:
The Organizational Structure & Design project titled Study and analysis of Organizational Structure and Design of RadioMirchi has been conducted by us [students of Department of Management Studies, IIT Madras batch of 2012] during October-November 2010. We have completed this project, based on the Primary as well as Secondary data/research under the guidance of Dr. M. P. Ganesh. We are intellectually indebted to Dr. M. P. Ganesh, our faculty guide, who was instrumental in developing our knowledge base in the field of Organization Structure & Design. We are extremely grateful to Mr.Purna Chandra., Marketing head, Radio Mirchi (Hyderabad Division) for sharing his valuable time and insights with us thereby helping us perform this study effectively. We thank the management and the employees of Radio Mirchi, for having welcomed us cordially and interacting with us.

Group 7

Department of Management Studies

CHAPTER 1 INTRODUCTION

Group 7

Department of Management Studies

Introduction
Organization An organization is a consciously coordinated social entity with relatively identifiable boundary that functions on a relatively continuous basis to achieve a common goal or a set of goals. The first step in forming an organization is to set up a management team which will supervise the working of the entire organization. The management team includes the chairman/promoter of the organization, board of directors and non executive chairman. The mission and the vision of the organization need to be defined by the management. The need for formally coordinating the interaction patterns of organization members, in the making of an organization, necessitates the need for organization structure. Organizational Structure Organizational structure is the process of building a team of highly talented, professional, ambitious and enthusiastic individuals to achieve the set goals and targets. It also defines how tasks are to be allocated who reports to whom and the formal coordinating mechanisms and interaction patterns that will be followed. The first step in designing organizational structure involves defining of roles to the employees. Employees will not be able to deliver their best, unless they are completely aware of their work and expectations. Effective employee management and business expansion are the main reasons for the necessity of a systematic organizational structure and design. The design of Organizational Structure depends on the following: Complexity Formalization Centralization Organizational Design Organization design is concerned with constructing and changing an organization structure to achieve the organization goals. It is the process of reshaping organization structure and roles, or it can more effectively be defined as the alignment of structure, process, rewards, metrics and talent with the strategy of the business. More specifically, Organization Design is a formal, guided process for integrating the people, information and technology of an organization. This report applies the knowledge from organisational theory to a practical case by investigating different aspects of an organisation from the media industry of India. Indias Media Industry is a fast growing industry undergoing continual change. Companies in this sector will have to adapt continually to these changes. This report investigates many dimensions related to Figure 1: Logo of Radio Mirchi the Organisational Structure of Radio Mirchi. It is based on primary data from talking to employees and management as well as secondary data from consulting the companys website and going through reports about the company. Dimensions that will be covered in this report are: - Introduction into the company - Organisational Structure - Size of the Organisation - Strategy - Organisational Culture - Technology - Organisational Environment - Organisational Effectiveness . Group 7 5

Department of Management Studies

Introduction into the company

The company
Entertainment Network (India) Limited (ENIL) is one of India's leading Entertainment and Media companies. Amongst others it operates Radio Mirchi, with 32 radio stations one of the largest private FM radio network in India and the only private radio broadcaster to have licences in all of Indias fourteen cities with a population of over 2 million.

History
Radio Mirchis holding company Entertainment Network (India) Limited (ENIL) was incorporated in 1999.When the Government in 2000 formally announced the auction of 108 FM frequencies across 40 cities; ENIL won the largest number of licenses. That was when Radio Mirchi was born. The first Radio Mirchi station was launched on 4th October 2001 in Indore. In 2006, after the second phase of licensing, Radio Mirchi expanded its network to a total number of 32 stations and became one of the largest private FM radio networks in India. This was also the time when Radio Mirchi Hyderabad was born. Today Radio Mirchis network comprises stations in: - Delhi - Mumbai - Kolkata - Thiruvananthapuram - Bangalore - Mangalore - Coimbatore - Madurai - Chennai - Hyderabad - Vijayawada - Visakhapatnam - Raipur - Jabalpur - Bhopal - Indore - Nagpur - Aurangabad - Nashik - Kolhapur - Pune - Panaji - Surat - Vadodara - Ahmedabad - Rajkot - Jaipur - Lucknow - Kanpur - Varanasi - Patna - Jalandhar

Group 7

Department of Management Studies

Radio Mirchi is the only private radio broadcaster to have licences in all of Indias fourteen cities with a population of over 2 million. But its not just in the metros that Radio Mirchi scores. Across its 32 cities it reaches out to an estimated 22 million listeners every day.

The Product
Radio Mirchis core target audience are the youth and young working adults aged 18-34. The average age of Radio Mirchis listeners is 26 years. The program is a fun-filled package comprising: - the breakfast show - youth-oriented programming - evening drive time - the late night show The play list is drawn from a master list of sound recordings. Since radio is a local medium, all Radio Mirchi stations have a very local product, there play lists are based on intensive market research and broadcasts are in nine different languages.

Group 7

Department of Management Studies

CHAPTER 2 ORGANIZATION STRUCTURE

Group 7

Department of Management Studies

Organizational Structure
The main stems of Radio Mirchi works on it Programming, Marketing and Sales. Other supporting departments are Finance, Admin/Technical, Operations(Ops). In Andhra Pradesh the Channel operates in 3 Cities mainly- Hyderabad, vizag and Vijayawada There is one cluster head per region. For each cluster head there are divisional roles asProgramming Sales Marketing Finance Ops(for back-end works) The highlighted groups below are there major revenue generating areas in this field.

Radio Mirchi-Its Hot!!!

Programming

Sales

Operations Back-end works Marketing Finance and

Programming: Programming is the bedrock on which the organization functions. Programming and Marketing go hand in hand. This department takes care of everything which goes live or is broadcasted, right from the making of promos till the program is actually broadcasted. The popularity, revenues and customer satisfaction are all directly or indirectly related to this department. There main work items would be dealing with Programming department are JOCK TALK ADS Songs Stationality (Breaking news baburao, Mirchi Teen Maar---These programmes are only aired on Mirchi,Hyderabad. In analogy such programmes are region centric and the ones taht generate highest revenue for the organization)The stationality defines the USP at radio Mirchi. The Programming department consists of the Program Head and The head controller (Responsible of scheduling the logs). On Air they promote Whats HotNow Diwali so they promote the festival with their songs and RJ Group 7 9

for

Department of Management Studies

speaking on it and Stationality working towards it. Sales: The revenues are directly dependent on this departments performance. Their job is to get advertisements, which is the only source of revenue for the organization. And hence is one of the most important department in terms of hierarchical positions. Sales works in two ways 1. Regular (FCT-Free commercial time)Every 10 mins, Selling ads. 2.Activations and Activities Music shows, Filmfare award partners,College Promotions. Currently, their client base is mostly in terms of Telecom industry-This was revealed as per the Marketing Head of A.P Marketing : With the advent of television and the decline in sales of radio sets and portable transistors the lyrics for the dirge of the radio were being written. The song was sung when television and then the internet were privatized before the radio was. No one really expected that radio would make a strong comeback. Its been a fairy tale return. In 2001, the first private FM radio station went on air. Today there are more than 250 of them beaming across almost 70 cities in India. Thanks to FM becoming mobile phone compatible, radio has indeed become the constant companion of people 24 hours a day, seven days a week. Its something that newspapers and TV will never achieve. The statistics are inspiring: it is estimated that25% of mobile subscribers in India have radio enabled mobile phones; this simply means that more 60 million people have access to Radio-on-the-move. Radio Mirchi, riding the crest of this new wave, was early in seizing the opportunity. It had launched seven radio stations by2003. Supported by strong marketing and business practices it quickly became the industry leader. In the second phase of FM license auctions, Radio Mirchi won 25more frequencies all in key cities. Being a media company themselves they cannot cater too much on advertising themselves on hoardings and TV, but still they do it in a different way-to make themselves heard and tuned into amongst the host of other radio channels. How do they do it? Highlighting the target group (18-25)-Programmes which will catch thier attention On Air (promoting their USP) On Ground(Malls and Colleges) Brand Values This is how the organization describes itselfFun, Joy, Exuberance, High spirits, Energy, Verve, Sparkle, Vigor, Dynamism and Zing. Nothing less is expected of a youthful brand. Peppered in right measures by these elements the brand has everything to spice up the rough and tumble of modern day living. Whether its beating the Monday morning blues, riding out a rough day at work, shutting out the weariness of negotiating bumper-to-bumper traffic or simply getting into the groove, there is one friend people can turn to, any time of the day or night Radio Mirchi. Its hot and its happening because the brand strives to add fun to every moment.

Hierarchical Structure: Radio Mirchi,Hyderabad

Hierarchy in AP division Mirchi Accountant Ms.Mahalakshmi Sales(AP)-Mr.Kiran Programming(AP)-Mr.Shekar Marketing (AP)-Mr.Purna Chandra Station Head and Cluster head of AP-Mr.Vikram The organization believes in fun @ work at the same time accounts for deadlines and on the spot Group 7

10

Department of Management Studies

innovations.Everyones easily accessible from highest of hierarchy to lowest.

Station/Cluster head: Mr.Vikram Sales Head-Mr.Kiran

Programming Head-Mr.Shekhar

Marketing Head-Mr.Purna Chandra

The 3 key elements of Organizational structure
Organizational Structure talks about how the tasks are allocated, who reports to whom, and the formal coordinating mechanisms & interaction patterns that will be followed. It is the way in which a firm has arranged its lines of authority and communication, and allocated duties and responsibilities. It can also be defined as the facet of an organization that is evident in the way divisions, departments, functions, and people link together and interact. It facilitates the delegation of authority, allocation of resources, and decision-making within the organization. Three building block of Organizational Structure are Complexity,Formalization and Centralization. Complexity Defined as the no. of occupational specialties, professional activity, professional training of employees Differentiation is the number of specialty functions represented in a firm. In an organization there is Horizontal differentiation, Vertical differentiation and Spatial differentiation. Horizontal Differentiation: In terms of horizontal differentiation, there are 5 different departments in Radio Mirchi. It appears that the amount of horizontal differentiation here is neither too high nor too low. Vertical Differentiation: In terms of vertical differentiation at Radio Mirchi, the depth of hierarchical level varies from 1 in Marketing to 4 in sales department. Hence in terms of vertical complexity as well the organization is less complex. Overall Complexity: Radio Mirchi has 28 employees overall in Hyderabad division. Even in terms of number of employees the organization is not complex. Every different designation has 1 employee Radio Jockey has 6 employees. Overall the complexity of Radio Mirchi is low. Group 7 11

Department of Management Studies

As the organization is small & less complex, information sharing is often done in informal ways via oral communication. Official mails are mandatory when dealing with clients and internal communication pertaining to deadlines. Growth and changeGrowth is proportional to the performance.Not based on years of experience . Resources allocation-Minimun 25-35 Changes incorporated during Resource allocation,according to Station and business location: If revenue opportunity is more in a particular city then more resources are allocated there. Formalization Formalization is defined as the degree to which jobs within the organization are standardized. If a job is highly formalized, employee has minimum discretion over what is to be done & how it is to be done. If a job is less formalized, the employee has more discretion over what he can do & the ways he can opt to do the task. Some jobs like that of Radio Jockey are less formalized, while the job of Promo producer is a mixture of formalization & in-formalization. Being a media firm, where the innovation is teh key of survival and user base, the organization has to be creative and yet incorporate certain measures of informality. The organizations motto being - Fun @ work No formals compulsion Informal risk taking(work even when no ones to monitor around) Free bird No timings apart form official ones 10:00 am to 6:00 pm.But if work demands to innovate or market in last moment.Cant say its time up.They work on the item,ensuring the creativity at the spur of moment. Cross culture co-existence.(Everyones here from different parts of India.RJ should be knowing local language for sure.) Good relations with government. Rewards and recognitions: FLAME THROWER--- gien monthly to sme great performance guy.Specific to one station .Desicion made by board of directors at A.P. Also have parties and lotsa fun activities in house and corporate level.

Centralization Centralization is defined as the degree to which the informal authority to make discretionary choices is concentrated in an individual, unit or level. Centralization is concerned with dispersion of authority to make decisions within the organization. Radio Mirchi is not dependent only on a single body to take decisions. Rather in Radio Mirchi decisions are taken at various levels like the programming and marketing heads, who are independent to design any strategy in any fashion they would like to. Innovation is the key.Sometimes they launch promotional advertisements in 10 minutes.You cant expect to have tailor made guide lines in Media like FM.But fixing to deadlines and yet churning out the best output is our responsibility.- As stated by Mr.Purna Chandra Expansion plans work similar to a telecom industry.The government gives the go, to the channel to broadcast in a different loaction only through bidding. Even while interacting with teh cleintile, everyone, depending on the type of customer (If its internal or external customer) talks to the customer to finalize a deal and the specifications are structured very fast and effectively. Marketing-Finance Promotional heads, these being major people to interact with.The same requirement specifications are tailored down to the programming department and the RJs. Thus in Radio Mirchi , centralization is low.

Group 7

12

Department of Management Studies

Organizational Configuration:
No Rigidity- in organization.If a position is vacant in some role, and they find someone good at the moment to replace, years of experience is not considered.Performance driven growth is followed and immediately implemented An industry high on charge,energy and enthusiasm will always thrive to maintain and fight competition, by maintaining work-life balance with flexible working hours(official) and Mottos driven by passion at work .In Radio Mirchi we see that there it follows low formalization & decentralized structure. Along with that it can be said that the organization as divisional structure. Every employee has only one manager to whom he has to report. Such a structure helps in maintaing healthy work habits and ethics.Although it is divisional structure, high coordination and work is integrated with fun and innovation.

Group 7

13

Department of Management Studies

CHAPTER 3 ORGANIZATION SIZE

Group 7

14

Department of Management Studies

Organisation Size
Organizations size is determined by number of its employees, the largeness of its operation, and its market reach and share. Though Radio Mirchi is still in the growth phase, the recent addition of new radio stations has forced it to increase the workforce and a rethink of its structure.

Factors Associated With Size

The technology required to produce the product or provide the service is a major determinant of size. Management hierarchy grows with size Amount of task specialization increases with size. Rate at which organization size affects the organization structure decreases as size increases. Job satisfaction decreases as size increases.

Radio Mirchis Size and Technology

Since its inception from 2001, where it started with 7 stations and around 50 employees, this organization has grown manifold with the employee strength now in the range of 1500 2000.The radio mirchi Hyderabad employs around 30 40 employees for its overall functioning namely the Marketing, Sales, Broadcasting, Programming and back end operations. Moreover with ever growing competition, the quality of service is always under the scanner and the company has to come up with newer and better technologies thereby leading to increase in the size. The tremendous growth in size in Radio Mirchi in the recent few years can be attributed to this.

Span of Control Hierarchy

The span of control refers to number of employees that directly report to a single manager. Three different types of relationships exist in organizations with varied sizes. (i) (ii) (iii) Number of direct relationships between manager and subordinate Number of peer peer relationships Direct relationship between manager and set of subordinates.

Group 7

15

Department of Management Studies

TEAM

PEERS

PEPEERS

As an organization grows in size, it either needs more managers to control the productivity, thereby adding layers of management hierarchy, or it increases the span-of-control, increasing exponentially the management complexity. In Radio Mirchi, the organization has been classified under 5 different categories, namely, (i)Programming (ii)Marketing (iii)Finance (iv)Sales (v)Operations Managers have been allocated under these sections. They are manned by the cluster heads one in each station. So there is a clear pyramidal structure that has been built in the company. Mr. Vicar is the cluster head and the station head in Radio Mirchi, Hyderabad. Though there is a hierarchical structure formed due to the increase in the size, there seems to be no restriction in the communication either from top to bottom or bottom to top. The hierarchy is only available formally.

Task Specialization
The task specialization increases with the increase in the size of the organization. In Radio Mirchi, it is very evident that the tasks are split based on the time period of the day. Radio Mirchi, has in it, what are called the Breakfast Show producer and the Rest of the Day Producer. This initially was a single role but it has now been bifurcated into two for want of efficiency in the programs. Moreover, the Morning Talk Show is given a special consideration and selected RJs do this kind of job. This is because of the sprawling growth and the reputation that Radio Mirchi has built and the demanding need to come up with such a show.

Group 7

16

Department of Management Studies

CHAPTER 4 ORGANIZATION STRATEGY

Group 7

17

Department of Management Studies

Strategy
Strategy can be defined as the determination of long term and short term goals of an enterprise and allocation of necessary resource for achieving these goals. Since launching its first station in Indore in 2001, Radio Mirchi has gone from strength to strength. Today, it is one of the largest private FM radio networks in India with licences in 32 cities. As on date all 32 stations are on air. But over the last decade the competition in this market has increased and the number of competitors in the market has gone up to 7. This gradual change in the market has resulted in a stream of significant decisions so we can call the strategy development at Radio Mirchi as an evolutionary mode of development.

Types of Strategy
Corporate level strategy : Corporate level strategy basically determines in what kinds of businesses the company should be and is applicable to those organizations which are into more than one line of business. It pertains to determining the role each business plays in an organization and what new business should the organization venture into. Radio Mirchi Hyderabad is only into Radio broadcasting and hence corporate level strategy is not relevant in the case of this Organization. Business level strategy : o Aggressive consolidation and growth strategy: Radio Mirchi has dominated the radio listenership in the country with over 43.8 million users and almost twice the size of its nearest competitor. It has topped the IRS again which is the largest continuous readership survey. Radio Mirchi has grown its network from 7 stations in 2006-07 to 32 stations in 2009-10. On the spot innovation is one of the things they are concentrating on since in a sector such as Media you cant expect to have tailor made guidelines. There have been times when they had launched programs in 10 minutes.

Functional Level Strategy: Functional level strategy defines the strategy used to make the maximum use of functional expertise to support the business level strategy. In FM industry listenership has a huge dependency on the popularity and image of the radio jockey who host a particular show and for Radio Mirchi, after the name of the organization and the frequency; they are the most recalled elements across all the stations. Hemant, Bharathi, Anamika, Bharath are some of the RJs who have a huge following among the masses in Hyderabad. Bollywood celebrities are a regular at the studios for the promotion of their films which is another high for the organization.

Strategic Dimensions:
Innovation Strategy: Innovation is one of the many things that have propelled the organization to the No.1 spot in its field. Being in the media sector they cant afford to expect tailor made guidelines and enough time to complete the task and they actually have mastered the art of On the Spot innovation wherein they have even launched programs within 10 minutes. This innovation is partly fuelled by the freedom the employees have in the organization and the decision making power given to the employees unlike in a formal and rigid organization. They have been awarded the Game Changer of the decade and their site has been recognized as the most popular TV and Radio site. Group 7 18

Department of Management Studies

Market differentiation strategies: They are basically the market leaders and that helps a lot in differentiating themselves from the other competitors. One key differentiating factor is their reach and coverage. Their coverage is more than the all India reach of the leading satellite TV channel. Another thing is their hugely popular RJs. Its not just coincidence that their RJs are well accepted. It is the result of carefully selecting those RJs. A lot of innovation and research goes into the development of any program. Almost all their revenues come from ads and all this together makes the life of its competitors tough. Breadth strategy: Radio Mirchi mainly targets the youth and young working adults i.e. between the ages 18-25 and its operations have been mainly in metros and other cities. Radio Mirchi has the distinction of being the only private radio broadcaster to have licenses in all of Indias fourteen cities with a population of over 2 million. In the new Radio Audience Measurement (RAM) launched by the TV ratings company TAM, Radio Mirchi dominated Mumbai, Delhi and Bangalore by logging a combined weekly listenership of approximately 11.3 million. But its not just in the metros that Radio Mirchi scores. Across its 32 cities this perky entertainment brand reaches out to an estimated 22 million listeners every day. This is higher than the all India reach of the leading satellite TV channel. Cost Control functions: All the basic functions of the organization such as finance, marketing, sales and all are in-house functions and various departments look over each function and thus they do not incur extra costs from other external factors.

Group 7

19

Department of Management Studies

Chapter 5

ORGANIZATION TECHNOLOGY

Group 7

20

Department of Management Studies

Technology
Technology is the combination of skills, knowledge, abilities, information, equipment (computers, machines etc), techniques, and processes required to transform inputs into outputs in the organization. Technology, despite its mechanical or manufacturing connotation, is applicable to all types of organization. The relationship of technology within an organization has three parts: People who works or volunteers for the organization Technology what technology is available or what is affordable and gives value to the organization Data & Information the ability to gather the data needed to run the organization or to provide to outside stakeholders These three parts must work together to achieve the goals or vision of any organization. Putting this in practice is a big task. These are the various strategies & principles followed by Radio Mirchi as far as technology goes Getting the right people on the bus: Although technology is intertwined in our daily lives, everyone is not technology savvy. The present generation does not have the correct technology skills to make them automatically successful in technology related fields. Therefore, assuming the people on staff can implement a particular technology is unwise. The keys here are authenticity and communication. Leaders and teachers are real with you about your technology knowledge and skill. Do not be afraid to ask for help when you need it. Volunteers are the best asset when your knowledge and skill level arent where you would like them to be. New employees should be on the lookout for someone who can also help increases the employees knowledge and skills. Responsibilities: It is the organizations responsibility to carry out its vision. A simple statement but sometimes it gets lost especially when it comes to technology. No need to implement the latest and greatest stuff just because its the latest and greatest stuff regardless of whether or not it meets the vision of the organization. Dont lose sight of ones responsibilities and end up somewhere that didnt intend to be, or worse dont end up hurting the people for which it was intended to help. Always keep the vision the utmost priority for the organization. These specific principles are reminded to the staff almost weekly. Stop doing list: There should not be Technology Overload whereby one is collecting and has access to too much data and information. One of the main stop doing list is to stop creating unnecessary data and information. Identify the mission critical data to run the organization and create information from that data. This will weed out all other unnecessary data and information. Then provide that information to outside stakeholders. If required by an outside agency to collect certain data, work backwards.

SOME OF THE TECHNOLOGIES USED IN RADIO MIRCHI

PROGRAMMING OF SONGS: They have software which is called the Radio Computing Software (RCS). In this software various assortment of songs, name of songs, grade of songs, time when they would play, duration of songs etc. are pumped in as well as properly sorted and assigned. They just have to put a song and everything else is done by the aforesaid software. They prepare advance programming for one month. This software includes songs, jingles, advertisement, cricket updates, traffic beats, etc., according to the pre-decided sequence. The concerned just RJ just needs to click.

Group 7

21

Department of Management Studies

MIXING: In RCS mixing of the songs, important updates, announcement, jingle, advertisement etc.. is done according to the sequence of the programme. The room that they use for mixing is called the production room. In the production room they have a mixer named OY2 mixer which is quite costly.

BROADCASTING: For broadcast propose they are using ultramodern, state of the art machinery and the equipment to ensure good of the songs. According to information shared by a company executive each equipment costing lakhs of rupees. They have a separate room for this high-tech equipment where they are logically and technically placed. They have their own towers. This equipment broadcasts analogue signals to the tower, which receives the signal encoded in the digital format which is then transmitted to the general public.

PATNERSHIP WITH AIRTEL: Bharti Airtel in partnership with Radio Mirchi has launched Mirchi Mobile on Airtel service. This service allows users to listen their favorite local Mirchi radio station from anywhere in India. Now users will be able to listen to 12 Radio Mirchi stations on Airtel mobile, even without FM receivers mobile phones. This service will be initially available to Airtel customers.This shows that the brand has always been at the forefront of change and new technology.This service has baeen launched in many regions all over India,Hyderabad being one of them.

VISUAL RADIO: Radio Mirchi is also about to unveil visual radio in Hyderabad very soon, making it one of the premium cities in the world to adopt a technology that will open up a new revenue for the private FM radio operator. Radio Mirchi is partnering with Vodaphone and Airtel to offer this service. The broadcast will be available on Nokia mobile phones.Others will follow soon.

THOMPSONS CONTRIBUTION:
The third major contribution to the technology structure literature has been made by James Thompson. In contrast to Woodward and Perrow, Thompson is not a member of technological imperative school. Rather, Thomsons contribution lies in demonstrating that technology determines the selection of a strategy for reducing uncertainty and that specific structural arrangement can facilitate uncertainty reduction. Thompson proposed three types of technology, differentiated by the task that an organizational unit performs. Long linked technology A production process consisting of a fixed sequence of steps to transform standardised inputs into standardised outputs. If the tasks are sequentially interdependent. Here procedures are highly standardized and must be performed in a serial order. Group 7 22

Department of Management Studies

Mediating Technology Characterised by a standardised transformation process and unique inputs and outputs. Service providers deliver unique services to unique clients based on a pre-defined delivery process. These technologies often link partners in an exchange that helps them locate appropriate parties to conduct their transactions. It refers to pooled interdependence that output and input have in an organization. Its characteristics are low complexity and high formalization. Intensive Technology Combined a non-standard transformation process with unique inputs and outputs. This technology focused on the coordination of experts and pooling their expertise to create a unique outcome. It refers to reciprocal independence- the output of unit influence each other in a reciprocal fashion. Its characteristics are high complexity and low formalization. Radio Mirchi can be an example of this kind of technology.

Technology at Radio Mirchi, Hyderabad can be summarized as follow: Theory Thompson At Radio Mirchi Intensive Technology

Group 7

23

Department of Management Studies

CHAPTER 6 ORGANIZATION CULTURE

Group 7

24

Department of Management Studies

Culture
Organizational culture is defined as the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization. Organizational culture describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. These, in turn create common understandings among members as to what the organization is and how its members should behave.

Functions of culture:
Organizational Culture covers different functions: Provides shared patterns of perceptions Provides shared patterns of feelings Defines and maintains boundaries, allowing identification of members and non-members. Functions as an implicit organizational control system An unwritten formulization Promotes stability

Determinants of Culture:
There are various factors that contribute towards the development of organisational culture. These include: History and Background Owner/Founder: Often the owner or founder will have an enormous role in establishing its culture, although the impact will wane over time. Organisations dominated by the owner or founder will tend to have a power culture. Size: Culture often changes as an organisation grows/shrinks Organisational Environment: In a rapidly changing environment, task culture may be appropriate. In a static environment, role culture may be preferable. In a challenging environment power culture may be appropriate. National Culture: Different nationalities may work better in different organisational cultures Function and Purpose: Different cultures may be appropriate for different functions or purposes. Goals or Objectives: Quality of service delivery is more likely to be achieved under role culture, whereas successful campaigning is more likely under task culture. A power or task culture is more appropriate for growth goals. Staff: Different individuals prefer working under different organisational cultures. It may be counterproductive for an organisation to attempt culture change if key staff would feel uncomfortable or alienated in the desired culture. Technology: Group 7 25

Department of Management Studies

The move towards increased use of technology tends to push organisations towards role culture, with associated procedures and protocols.

Organization culture exists at two levels:

1. Visible artefacts and observable behaviour: The way people dress and act, symbols, stories and ceremonies organizational members share. The underlying values, assumptions, beliefs and thought processes which represent the true culture.

2.

Culture at Radio Mirchi

The culture in radio mirchi,Hyderabad office is as observed: It has a dynamic environment and hence exhibits properties of task culture. They believe in fun at work, at the same time accounts for deadlines and on the spot innovations. Punctuality is of utmost importance there as non punctuality leads to delay of their shows and hence loss in reputation. No formals compulsion and hence no rigidity in dress code. Spacious and decorative interiors with cubicles allotted to programmers whereas, cabins to functional heads They have an open door policy and thus everyone at work is approachable Follows-Informal risk taking that is, work even when no ones to monitor around They call themselves as Free bird as there is no timings apart from official ones 10:00 am to 6:00 pm .But if work demands to innovate or market in last moment they work extra hours. Cross culture exists as employees are from different parts of India. RJ should know local language for sure. So for Hyderabad RJs they should know Telugu and English Celebrations are dominant in Radio Mirchi as there are parties, trips and fun activities organised frequently. No rigidity in organization. If a position is vacant in some role and if there is a replacement then years of experience is not considered. Performance driven growth is followed and immediately implemented Good relations with the government

Subcultures:
Subculture was not visible in the organization. Employees love the informal culture and creativity is actively encouraged.

Organizational ethos:
It is the underlying spirit or character of an entity or group; made up of its beliefs, customs, and practices The Organizational ethos are defined by OCTAPACE. They are as follows: Openness: receiving and giving spontaneously Confrontation: facing, rather than shying away from, problems Trust: maintaining confidentiality of information, integrity in dealings Authenticity: congruence between claims and actions. Proactivity: taking initiative, pre-planning, taking preventive action Autonomy: using and giving freedom to plan and act in ones sphere Collaboration: giving and asking for help to and from others Experimentation: using and encouraging innovative approaches to solve problems Group 7 26

Department of Management Studies

organisation ethos
10
9

8
7

6
5

4
3 organisation ethos

2
1

Graph showing organizational ethos of Radio Mirchi The two highest scorers in the graph are trust and experimentation. As the organisation say Innovation is the key .Sometimes they launch programs in 10 minutes. Openness, confrontation, autonomy and collaboration are also high on the scale as they are a media company creativity is very important and for that the employees are given a free culture and environment to work in. Anyone in the hierarchy from highest to lowest is easily accessible. The lowest score is for authenticity as the employees are sometimes troubled by their emotion which manifests itself at times. But considering the nature of their jobs, they are supposed to be very pleasant and jovial, sometimes even having to hide their real feelings.

Group 7

27

Department of Management Studies

CHAPTER 7 ORGANIZATION ENVIRONMENT

Group 7

28

Department of Management Studies

Environment
Organizational environment refers to the forces that can make an impact. Forces made up opportunities and threats. An Organization does not exist in isolation rather it works with the overall environment. So in simple terms organizational environment is Everything outside the organizations boundaries. To study the environment at XYZ place we are going to broadly look at two types of environments: general environment and specific environment.

General Environment:
It encompasses anything that might have an impact on the organization, though the relation with the organization need not be overtly clear. They do not change easily and are not specific to any organization. It includes almost everything such as Economic factors Political conditions Social milieu Legal structure Ecological situation cultural conditions Specific Environment With respect to XYZ station we will be looking at the specific structure they have.

Specific Environment:
Specific Environment refers to that part of the environment that is directly relevant to the organization in achieving its goals (strategic constituencies). Internally, an organization can be viewed as a resource conversion machine that takes inputs (labour, money, materials and equipment) from the external environment (i.e., the outside world), converts them into useful products, goods, and services, and makes them available to customers as outputs. The following factors affect the specific environment of an organization: Customers Suppliers Competitors Government Labour unions Trade associations Public Pressure groups With respect to XYZ station we will be looking at the specific structure they have.

Group 7

29

Department of Management Studies

Environment At Radio Mirchi

The explanations of the elements of the specific environment are as follows: Advertisers The advertisers provide the revenue required to run the organization. Competitors Radio market in India is an emerging industry. Maintaining an edge over the competition is extremely important. Some of the competitors of Radio Mirchi are: Red FM, Radio City etc. Employees They are the connecting bridge between the station and the listeners. Hence they are an integral part of an organization. In Radio Mirchi, after the name and the frequency i.e. 98.3 the most popular are the RJs of Radio Mirchi. Government The government is instrumental in issuing licences for establishing radio stations in India. Currently Radio Mirchi has presence in 32 cities. Listeners They are the target customers of any radio station. One of the objectives of a radio station is to increase RAM (Radio Audience Measurement). Listeners are the component of this measure.

Times Group Radio Mirchi was born out of Times Group. Currently it is owned by the Entertainment Network (India) Limited (ENIL), the subsidiary of Bennett, Coleman & Company Limited.

Domain:
It is the claim an organization stakes out for itself with respect to the range of products or services offered and markets served. It determines an organizations specific structure. Radio Mirchis domain is mainly music and humour. The preferred channel selected for the same is FM Radio. Currently it caters to urban listeners, particularly to the youth segment. Group 7 30

Department of Management Studies

Burns and Stalker Model:

According to Burns and Stalker model, type of structure required in rapidly changing and dynamic environments is significantly different from that in stable environments. From our survey we concluded that formalization and centralization is minimum within Radio Mirchi. Hence Radio Mirchi moves more towards an organic structure rather than a mechanical one. The reasons for the same may be summarized as follows:

Characteristic Nature Of Environment

Mechanic -

Communication Formalization

Vertical

Influence Control Task definition Communication Centralized is quite low To maintain co-ordination the tasks are well defined. Vertical

Organic Flexible due to : Heavy competition in the market Continuously changing preferences of listeners Lateral On an average, formalization is low across the departments. NO RIGIDITY in organization. If a position is vacant in some role, and they find someone good at the moment to replace, years of experience is not considered. Performance driven growth is followed Influence is highly dependent on expertise and knowledge. Diversity is present due to changing nature of the business As it is a media domain so the employees are given high degree of freedom. Lateral

Emery and Trist Model:

Emery and Trist identified four different kinds of environments: Placid randomized environment: Relatively unchanging environment. It poses the least threat to an organization. Changes are random, unpredictable and slow. There is low uncertainty. Placid clustered environment: Slow changes. Forces in environment are related to each other. Disturbed reactive environment: Many competitors seek similar ends. Two or three large companies in an industry can dominate. Turbulent field environment: It is the most dynamic and has the highest uncertainty. Change is an ongoing event. Radio Mirchi falls under the kind turbulent-field environment due to the following reasons: Dynamic environment with high uncertainty due to varying and constantly changing tastes of customers. Changes cant be predicted easily as human psychology is involved. Innovation is the key for Radio Mirchi. Sometimes programs are launched in 10 minutes. Guidelines are not possible so a lot of real time work is existent. Competition is high as tastes keep changing.

Group 7

31

Department of Management Studies

Lawrence and Lorschs model:

Parts of organizations deal with parts of the environment. An organizations internal structure can be expected to differ, from department to department, reflecting the characteristics of the sub-environment with which it interacts

Differentiation: Task segmentation Tasks are flexible to quite an extent in the station. This is because everyone, from RJs to the finance team, interacts with customers. The level and formality of interaction depends upon who the customer is. SO RJs have a lower level of formality while finance team will have a higher level. Integration: Collaboration among interdependent units Since the final outputs require inputs from all the departments there is a very high level of collaboration and coordination between the various departments.

Resource Dependence Theory:

Resource dependence theory outlines organizational strategies for managing environmental uncertainties. Domain Choice: There are no planned domain changes presently. Recruitment: Recruitment requirements are basically region specific. If I operate in North-Mumbai-I prefer people with Marathi and English. In Hyderabad-Telugu and English. Its easier to communicate with people according to regional basis. We are totally a region centric media. Further if a position is vacant in some role, and they find someone good at the moment to replace, years of experience is not considered. Performance driven growth is followed and immediately implemented Advertising : Depends on the sector we plan to advertise in. For example: TMC (Tirumala Music Company) asked to market their goods on air at 9:10 and the requirements and discount offer was released only at 9.So they had a meeting for some minutes and the advertising campaigning was done based on the offer. Most of the Ad detailing is not released, according to company policy issues, till the spur of moment.

Environment -Structure Relationship:

A dynamic environment has more effect on the environment than a static one. Since Radio Mirchis environment is dynamic; it affects its structure in the following ways: Environment and Complexity: As the environment is uncertain, complexity is high. Environment and Formalization: Formalization is low for boundary activities while activities not visible to customers have high Formalization. Environment and Centralization: As uncertainty is high, centralization is low.

Steps taken by Radio Mirchi to tackle environment:

Market Research: It is outsourced and is used to identify future areas for development. This helps is retaining their competitive edge. Group 7 32

Department of Management Studies

Sales and Marketing: A dedicated team works on reaching out to the widest customer base possible. Various events are sponsored and you can see radio Mirchi trucks on roads also. Innovation: New Headlines on the breakfast show; Traffic Updates during rush hour, competitions to keep customers involved. These are some of the things that Radio Mirchi does to stand out from the competition.

Group 7

33

Department of Management Studies

CHAPTER 8 ORGANIZATION EFFECTIVENESS

Group 7

34

Department of Management Studies

Organisational effectiveness
Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. It is the degree to which an organization attains its short term (ends) and long term (means) goals, the selection of which represents the strategic constituencies, the selfinterest of the evaluator and the life stage of the organization. Organizational effectiveness captures organizational performance plus the plethora of internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation. An organization's effectiveness is also dependent on its communicative competence and ethics. The relationship between these three is simultaneous. Ethics is a foundation found within organizational effectiveness. An organization must exemplify respect, honesty, integrity and equity to allow communicative competence with the participating members. Along with ethics and communicative competence, members in that particular group can finally achieve their intended goals. Instead of measuring organizational effectiveness, the organization determines proxy measures which will be used to represent effectiveness. Proxy measures used may include such things as number of people served, types and sizes of population segments served, and the demand within those segments for the services the organization supplies. Organizational effectiveness is a way to describe and determine how effective companies or organizations are in achieving the outcomes that they desire or intend to produce. Organizational effectiveness: It's all about enabling workforce adaptability to support the strategic initiatives that drive growth, while quickly responding to changing market conditions That being said, we know that effectiveness does not mean the same thing to every organization. Each setting, change mandate, or other challenging situation forces a different set of requirements on an organization, which in turn, influence what it means to be considered effective by its stakeholders and results. These differing requirements (e.g. dynamic merger integrations versus continued improvements in a product or service vital to profitability) mean that there is no one recipe that fits all challenges but requires experienced eyes and ears to help navigate a clear path to the desired future state. An organization is achieving effectiveness when the following five domains of a given organization align in optimal movement toward that goal: Market Place Savvy clearly understanding the desired markets, their needs, and aspirations People with the right capabilities, attitudes, and behaviors - placed and led smartly by good leaders Plans that optimally support the objectives and create clear pathways to the envisioned results Ethical foundations that inspire trust in what is being said and done Solid Culture with supportive business processes that lays the foundation for success in all of the above.

Group 7

35

Department of Management Studies

Comparison of various approaches to measure Organizational Effectiveness:

Approach

Definition of Organizational Effectiveness Organization accomplishes its stated goals Organization acquires needed resources All strategic constituencies are at least minimally satisfied

When useful

Goal attainment

Goals are clear, time bound, measurable. Clear connection exists between inputs and outputs Constituencies have powerful influence on an organization, and the organization must respond to these demands An organization is unclear about its own emphasis, or changes in criteria over time are of interest

Systems

Strategic Constituencies

Competing values

Emphasis of organization in the four major areas matches constituent preferences

Table 1: Various approaches to measure organisational effectiveness

Effectiveness at Radio Mirchi:

Radio Mirchi, effectively run at several zones, demonstrates key principles of local ownership, elevating local talent and catering to the regional needs. It also provides venue for less frequently heard voices to be heard in larger big media. It also provides ways of organising people living together in the same defined geographic area or community of interest --around their common values and beliefs. The public interest is often served with programme offerings in health, education, agriculture, culture, politics or financial management, to name a few. Listeners seem to like and appreciate the programmes especially when subjects that they care about are aired. It also helps shape public opinion and public will, rescues lost cultures and languages, and informs citizens who may be harder to reach about issues of importance to them.

Group 7

36

References
References

Books and Readings:

Organization Theory: Structure Design and Applications Stephen P. Robbins and Mary Mathew

Web References:
Radio Mirchi Website:-http://www.radiomirchi.com Entertainment Network India Ltd:-http://www.enil.co.in/radio.html

Group 7

37