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Last Updated : Mar 11, 2018 04:54 PM IST | Source: PTI

1 in 3 cos in India considering different organisational structure: Study

About 49 percent respondents said they were considering this change to create a performance-driven culture, while 41 percent it would help in meeting changing customer demands, the report titled 'WTW-CII study on organisation structures in India' said.

About 31 percent of companies in India are considering a different organisational structure as they look at creating a performance-driven culture and meet changing customer demands, a joint study by Willis Towers Watson (WTW) and CII today said.

About 49 percent respondents said they were considering this change to create a performance-driven culture, while 41 percent it would help in meeting changing customer demands, the report titled 'WTW-CII study on organisation structures in India' said.

Other drivers included supporting change in strategy (36 percent), changing the behaviour and mindset of the workforce (34 percent) and cutting costs (30 percent), the study added.

The study, which polled senior executives from over 100 organisations, analysed if and how current organisational structures in India are aligned to growth-enabling business strategies. It also examined a range of indicators of any impending challenge that could arise due to ineffective and mis-aligned structures.

The study revealed that companies are making or planning to make efforts to fix organisational structure-related challenges over the next three years. About 73 percent said they are paying more for certain skills, 60 percent said they are deploying work to other locations and 57 percent are focusing on workplace flexibility.

"Organisations today face significant challenges understanding the implications and risks associated with the future of work," WTW India Head of Talent and Rewards Sambhav Rakyan said.

He added that the future of work is driving companies to re-design their organisation structures to be nimble and flexible to cater to the speed of change.

"This is the right time for organisations to undertake a structure re-design exercise along with strategic workforce planning and key responsibility area (KRA) setting," he said.

Stating the top challenges resulting from an unsuitable organisation structure, respondents identified a lack of adequate functional experts, greater focus on meeting functional goals instead of customers/organisation wide goals, being middle management heavy and lack of innovation.

Chandrajit Banerjee, Director General, CII, said the study findings are significant, especially at a time when Indian companies are expanding their global footprint and catering to a new and expanding domestic consumer base in a rapidly changing business environment.

"It seems evident that organisations need to get the basics, like their organisational structure, right, to ensure they are well placed to cater to a changing business strategy," he added.
First Published on Mar 11, 2018 03:53 pm
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