UNIT 16 INSTITUTION BUILDING

16.1 ORGANIZATION Vs. INSTITUTION

An organization comes into existence in order to achieve a goal or a set of
goals. Since no one individual can achieve the goal or set of goals by himself, a
number of individuals come together. Hence there tends to be a division of
work where in the overall goal or objective is broken down into sub-goals and
they in turn into activities to be erformed by each of the individuals thus,
giving rise to differentiation in ower, authority, role and resonsibilities. !hese
differentiated functions are coordinated, in terms of rationally conceived role
relationshis, and a normative order.
!his rationally conceived hierarchisation has to be maintained over time to
achieve the overall objective. Hence maintenance of the normative order is an
imortant sub-goal of the organization.
"hile organizations aim at maintenance of internal order and efficiency in goal
realisation, institutions extend beyond these goals. #nstitutions have relatively
more ermanance than organisations. $rganizations are organic, they have a
birth, growth and finally, decay. #nstitutions are more enduring, have caacity of
continuous growth, ability to coe and adot under diverse ressures and ulls
to make thrust into the future, in addition to having an imact on the society or
community in which they exist. !hey erform services and functions which are
valued in the community or society and also lay the roles of a change
inducing, a change-rotecting agent within the community. "hile all institutions
basically start as organisations, it is only a few organizations that can survive,
grow and adot to achieve finally an institution status.
Organisational
Development an !"ange
%
16.# $%AT IS AN INSTITUTION &
#nstitution may be defined as a resonsive, adative organisation which is a
roduct of social needs and ressures. #t is a art of the larger system i.e. the
community or the soceity and is a forward looking, adative and roactive art
of the community. &sman and 'laise ()*++, idefine institutions -as organisations
which incororate, foster and rotect normative relationshis and action atterns
and erform functions and services which are valued in the environment..
$"at !"ara'terises an Instit(tion&
), An institution is an organisation which is relatively more enduring and is
erceived as an indisensable art of the community.
%, #ts functions and services are related to society.s commonly agreed
re/uirements.
0, #t has the ability to adot overtime to changing needs and values in the
society and contribute to the community needs.
1, #ts internal structures embody and rotect commonly held norms and values
of the society.
2, #ts achievements overtime include influencing the environment in ositive
ways through the values it creates, (where such necessity arises,.
+, #ts influence extends to other similar institutions which are linked to it.
3, #t is a change rotecting and change inducing format organisation. #t tends
to rotect ositive values within the community or create new beliefs and
values that are necessary for the sustenance of the community or to bring
social order at times where negative forces are likely to affect the
community.
4, #t has ermanence that extends beyond the role incumbents who may come
and go.
A'tivit) A
5efine the concets -organisation., -institution..
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A'tivit) B
"hat are the characteristics of an institution6 7an we differentiate between the
terms -organisation. and -institution.6
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$"at is Instit(tion B(iling&
#nstitution building referts to transforming an organisation into an integrated
organic art of the community, so that the organisation can effectively lay the
role of rojecting new values and become an agent of change in the
community. Hence institution building refers to the rocess asects of8
a, establishing or transforming an organization9
b, making an organisation an integrated or organic art of the community9
c, the maintenance role of adoting or adjusting to the existing values9
d, rojecting new values through its own efforts of self growth and
organisational renewal, and thus9 and
e, the roactive role of bringing change contributing to change in the existing
values of needs of the society.
A'tivit) !
"hat is #nstitution 'uilding6 &xlain.
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16.* +A!TORS IN+LU,N!ING INSTITUTION
BUILDING
!here are several factors that influence institutional building8
), Goals or O-.e'tives/ 7larity or secificity of the goals is basic to
institution building. !he goals should also be erceived as imortant and
justify the need for the organization both with resect to exectations of the
members within and society outside the organization. "hen the goals are
seen as challenging and interesting and widely acceted among members of
the organization and the activities of the members are focused around these
goals, institution building is ossible. Suerordinate goals like commitment,
loyalty and atriotic fervour among emloyees generally tend to facilitate
institution building.
%, A Se'on Varia-le t"at !ontri-(tes to Instit(tional B(iling is t"e
01eople2/ Selection of the eole for ositions in the organization should be
in terms of a right fit between the individual and the job. !wo asects are
imortant in this context8 task maturity and sychological maturity. !ask
maturity refers to the extent to which the role incumbent has the necessary
job knowledge and skills re/uired on the job. :sychological maturity refers
to zeal and enthusiasm to work, commitment to the job and the organization,
confidence in ones. own abilities to accomlish tasks and resonsibility for
ones. job. #t is the eole, who finally make an institution. 5eveloing trust
among one another, generating team sirit and ositive interaction among the
role set members and roviding sufficient autonomy which is commensurate
with resonsibilities on the job, are essential for institution building. !rust is
an imortant dimension for effective interersonal relationshi and it is often
said that trust begets more trust.
$rganizations should rovide oortunities for uward growth and
develoment for those who are cometent and have otentialities for growth
and develoment. $therwise, institutional develoment is jeoardised.
0, A T"ir Varia-le o3 Importan'e is Organisational Str('t(re an
Design/ $rganisation is basically a system of inut rocess and outut subsystems.
;en, money, raw-material and machinery form the inuts. !he
rocess asect is concerned with the otimum utilisation of these inuts to
roduce certain oututs. !he outut can be the goods roduced or services
rendered that serve the needs and interests of the society.
!he organization design and structure is the basic frame work around with
formal interactions take lace within and in between the different sub-systems
(deartments,. !he structure influences
the extent to which the different resources may be otimally utilised.
the work culture that is created and sustained within the institution
the relations with systems outside the institution
the ability to adot to changing demands and re/uirements arising from
the external environment.
!oo 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-otimisation of resources, lack of aroriate direction and work
culture. #n such an environment organizations may soon become defunct.
!he structure should not be static but dynamic and have the necessary
mechanisms to foster and stabilise aroriate traditions and work culture and
also establish linkages with its customers and major client systems. #t should be
able to rovide a leadershi role to similar organizations. Such a structure forms
the basis for institution building.
1, A +o(rt" Aspe't t"at +osters Instit(tion B(iling is t"e
Organisational !(lt(re/ $rganizations should strive at develoing greater
cooeration among the members. !his can be achieved by better integration
of deartmental functions and develoing homogeneity of thinking among the
members. 7ommonality in the goals of the organization and those of the
emloyees, and recognition and understanding of the symbiotic relationshi
that exist between one emloyee and the other, or one deartment and
another result in better accommodation and cooeration. 7onflicts are to be
viewed ositively as roviding oortunities for innovativeness and
understanding other.s osition in addition to one.s own. ;echanisms of
establishing a balance between the autonomy of individual members and
coordination for common goals hel in institution building. #n its relationshi
with outside organisation, the institution should seek collaborative
relationshis at the same time maintaining its own identity.
2, A +i3t" +a'tor !ontri-(ting to Instit(tional B(iling is Leaers"ip at
t"e Top 4anagement Level. !he leadershi style should be an
amalgamation of the roles of a -develoer.s and an -executive.. A develoer
laces trust in his subordinates, rovides them oortunities to take u
resonsibilities, motivates them to the eak of their erformance and rovides
a creative work atmoshere. He is suortive in his relationshis with others
and rovides oortunities for growth, self-direction and self-control for his
subordinates. An executive as a team-builder, insires articiation among
2
the members and thereby ensures their commitment to organisational goals,
builds loyalty among his subordinates and also a keen sense of self-resect,
and resolves conflicts strategically and creatively.
!he leader ought to devote his full attention and time for institution building and
take ride in the develoment of his eole. He has to establish effective
linkage with outside organizations and roject the image of the institution as a
cometent entity to serve the needs of the society. He needs to gear u the
organization to meet changing needs and demands effectively. At the same time
he is not enamoured of his osition, but is willing to develo others to ste into
his whenever re/uired.
+, A-ilit) to ,sta-lis" ,33e'tive5 Operative Lin6ages 7it" ,8ternal
,nvironment is Ne'essar) 3or Instit(tion B(iling/ Such a liaison hels
in understanding the needs and exectations of the external sub-system such
as clients, customers, suliers, other organizations etc., to which the
institution has to finally cater to carve a niche for itself in the environment.
!he linkages are8
enabling linkages with other organizations or social grous 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 rovide the
inuts for the organization and utilise the roduct or service oututs of
the oganisation (e.g. suliers, customers or client grou,.
associative linkages with other institutions of a similar nature for
ossible collaborative relationshis (eg. sister institutions,.
contingent linkages, deending uon the situational necessities with
certain other sub-systems that may become relevant or imortant at a
given time (for e.g. a legal system, a consultancy unit,.
A'tivit) D
How the following factors influence institution building8
organizational goals.
organizational structure and design.
organization culture.
relationshi with external environment.
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16.9 INSTITUTION BUILDING / T%, 1RO!,SS
#nstitution building refers to two asects 8
), 5eveloment of an institution by an outside exert (which may be an
individual or an organization, including develoment of relevant norms and
values, and
%, #nternal develoment of an institute to be able to lay its role effectively
(i.e. the self-renewal rocess,.
#n terms of either of these definitions, institution building refers to the rocess
of birth, develoment, renewal and institutionalisation.
All organizations are organic i.e. they have birth, develoment, growth and
finally, decay if the organization does not invigorate and renew itself.
#nvigoration and renewal extend the longevity and erformance of the
organization where it stabilises as an institution. "hile many organizations die
aborning, it is only a few that seem to live forever.
"arren Schmidt ()*+3, has suggested that organizations have stages of
otential growth in their life cycels. At each of the stages, the organization is
subject to certain crises that make demands on the managerial or organizational
activities. #f the organisation is able to coe effectively with the crisis it will
enter the next stage of growth. !he crisis is generated either because of
internal factors or external factors in the environment or both. !he stage of
develoment at which an organization is, is more in terms of the crisis factors
rather than its financial status or number of emloyees or its share in the
market etc.
!he first stage is birth of an organization. $rganizations originate at first, in the
minds of individuals, as an idea. An oerative model with necessary resources
and suort mobilisation characterises the earliest stage.
!he second stage is survival and sacrifice. An organization is born in a climate
of a new idea, hoe and excitement, but has to struggle to survive in the world
of cometition and challenge. !he need to survive, makes heavy demands on
the entrereneur.s money, confidence, commitment, effort, ersonal time and
even family life. #f this crisis is ade/uately resolved the organization gains a
firm foot-hold, accets realities and learns from exerience. #f unable to meet
the challenges, demands and cometition, the organization may become defunct
or exist marginally with still heavier demands made on the entrerenuer.
#f the organization survives, then it should seek for stability which is the third
stage. $rganization should strive for an efficient work culture based on
disciline, reorganization or role relationshis, ade/uate emloyee comensation
structure, team-sirit and aroriate balance between short-term and long-term
ersectives. #t should also strive to stabilise its resources, customers, clientele
etc. <esolving the crisis of achieving stability makes the organization efficient,
strong and flexible9 while inability to do so results in the organization returning
back to the survival stage and stagnation.
!he fourth stage is self-examination regarding where the organization stands in
the eyes of the ublic, customers, cometitors and others. !he organization
should be reared to look critically at its roducts and services and its internal
and external oerations. !hus it should be oen to criticism and strive to
monitor, review, evaluate and imrove its erformance from time to time.
<esolving crisis at this stage successfully enhances the reutation of the
organization and results in the imrovement of its /uality of goods and services.
3
=ailure to resolve the crisis leads to living on ast laurels and -image-creation.
or -image-boosting. which may be at variance with its actual erformance the
greater the variance the greater is the likelihood of returning to instability.
!he next issue that concerns the organization is to actualise its otentialities and
to achieve uni/ueness (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 rovides
oortunities for growth and develoment to its ersonnel. >nsuccessful
resolution leads to secialisation in a narrow field, conservatism and resistance
that inhabits further develoment. !he organization may not be able to realise
its uni/ueness.
!he sixth issue of concern involves the organization.s resonsibility to society, a
desire to gain soceity.s resect and areciation and to imrove the /uality of
life of its own emloyees. !he crisis generated by efforts to be resected and
areciated deends uon the felt-needs for such an endeavour, organization.s
financial status, investment oortunities elsewhere and the resent self-image.
'y resolving this crisis correctly the organisation gains ublic resect and
areciation for itself as an institution contributing to society. #ncorrect
resolution leads to castigation by the ublic as -heedless barons. or -heedless
tycoons..
!he different crisis discussed so far need not oerate in the same consecutive
order. 5eending uon the environmental forces acting on the organization, a
mature organization may revert back to crisis of the earlier stages. "hen the
nature of the crisis is not correctly understood, organisations are unable to
resolve it ade/uately resulting in confusion and intolerance. However, by
resolving the crisis at each of the stages successfully, an organiation grows
from strength to strength. <esolution of crisis makes demands on the
management.s knowledge, skills, exerience and attitudes and it is /uite ossible
that at different stages of growth, the managerial and leadershi skills re/uired
are different.
A'tivit) ,
"hat are the different stages of growth of institutions6
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16.: SIGNI+I!ANT DI4,NSIONS O+ INSTITUTION;
BUILDING/ S,L+<R,N,$AL AND INNOVATION
&arlier we have described the growth stages and crises exerienced in
institution building. !wo of the significant dimensions of institution building are
self-renewal and innovation.
Sel3<rene7al refers to concentrated and continuing efforts on the art of the
organization to relate its technology, structure and eole to roblems
confronting it from olitical, economic and social changes. !he act of selfexamination
from time to time forms the basis of organization renewal. !he
different stage in self-renewal rocess are 8
), Sensing of change: $rganizations should be ware of changes in their
internal and external environment. >nable to erceive these changes, the
organization fails to coe ade/uately with its environment.
%, #dentification of the imlication of these changes. !he /uestion is how these
changing forces are going to affect the ongoing system.
0, 5eciding an aroriate lan of action. A suitable course of action is
conceived on the basis of 8
obtaining necessary information with regard to ) and % based on
surveys, reorts, statistical data and such other fact finding
methods.
accurate evaluation of the obtained information.
deciding at what sub-system level (i.e. organisational structure or task
or technology or individual?grou, the neessary changes are to be
brought about.
imlications of change in a sub-system for the other sub-systems.
weighing the different alternatives for their robabilities for effectively
coing with external forces.
1, #ntroducing the change. !he intended changes are imlemented. !imely
action is imortant.
2, Stabilising the change, enough system suort is to be given to freeze the
change i.e. consolidate the new e/uilibrium.
+, $btaining feedback on the outcome of change for further sensing of the
state of the external environment and the degree of integration of the
internal environment.
=ailure at any of these stages results in unsuccessful resolution. Successful
resolution also deends uon certain conditions within the organisation
such as8
effective information rocessing and communication.
flexibility within the sub-system for introducing relevant changes or remedial
measures.
willingness to change among the eole and commitment to organizational
goals.
suortive climate at the to management level. #nvolvement of to-olicy
making grou gives legitimacy to the change rocess.
*
!he resent day organizations are at a nexus of various external and
internal forces. $rganizational renewal, hence, is of high riority so that
organizations can do a self-analysis of their growth and their roblems. !he
organizational leadershi should look for new aths, new methods and
innovative aroaches so that the organization can coe with changing
demands and forces.
Innovation
#nnovation may be defined as a new idea or ractice or aroach that hels
the system or the individual to deal effectively with a roblem or change.
#nnovation is ossible if the organization has a conducive environment for it to
occur such as oenness flexibility, decentralisation etc. Some characteristic
features of innovation are 8
#t does not function in isolation or vacuum. #nnovative changes should be
thought of in a system ersective i.e. the likely changes in the internal
sub-systems.
#t thrives in a collaborative rather than a cometitive environment.
Accetablity of innovative change deends uon8 ). #ts relative advantage
over the existing ideas or aroahces or other suggested ideas or
aroaches. %. 7omatibility with existing norms, values and work
behaviours. 0. Simlicity both in concet and ractice. 1. >tilitarian
value for either coing with external demands or obtaining the desired
results and the stakes involved. 2. 7omatibility with existing skills. #f
innovative changes re/uire new skills, eole should be trained sufficiently
in advance. $therwise, resistance may be built insite of the functional
value.
#nnovative lanning is an organizational necessity for self-renewal and
institutional building.
16.6 INSTITUTIONAL BUILDING/
T%, ROL, O+ !%I,+ ,=,!UTIV,
7ertainly the chief executive is a crucial figure in institutional building. :robably,
it may be in your exerience that a sinking organization not only comes out of
the red but also stabilises and makes considerable amount of rofit because of
change at the to management level. !here are certain chief executive who
have been very successful desite the nature of the organization they were
asked to manage.
!he role of chief executive involves8
otimum utilisation of resources which is a basic ingredient of organizational
success.
creation of team sirit and work commitment, thus roviding a synergic
effect for otimum utilisation of human resources (where the contribution of
the grou is much more than a summation of the efforts of each of the
individuals, it refers to synergy,.
achieving a ositive balance between individual exectations and
organizational goals and demands. =or examle, there is absolute necessity
for formalisation (i.e. rules, regulations and rocedures determining work
behaviour, but at the same time the individual should have autonomy and
flexibility in work behaviour. 7entralisation in decision-making is imortant
but at the same time eole at lower levels should be involved in decision
making.
Instit(tion B(iling
Organisational
Development an !"ange
)@
An institutional image is in terms of not only how it erceives its own status
but also how it is erceived by similar organizations in the environment. A chief
executive is not only a sokesman for his organization but also a liaison builder.
#t is in terms of his efforts that the institution can lay the role of a leader,
trend-setter and a collaborator.
!he chief executive should have the basic disciline, devotion and commitment
to work, a sense of vision, a futuristic ersective and above all a
determination to build the organisation to reach its maximum otentiality.
He should allow others to grow and should not be threatened by the
achievements of his colleagues. "hen the time comes he should give way for
his successor without being highly ossessive about the organization.
))
INSTITUTION BUILDING/
L,SSONS +RO4 VI>RA4 SARAB%AI2S L,AD,RS%I1
#nstitutions are social areas where uni/ue strategies are ursued for
inducing and maintaining values which satisfy societal needs. $rganizations
are formal, social mechanisms which facilitate constant transmission of
values, for examle, a business enterrise or the church. Aeaders are key
actors in these arenas embodying the values. !he rocess of institution
building is the energizing of eole so that not only they internalize values
that transcent narrow self-interests but they also become infused with a
sense of mission in their total life. "hat distinguishes an economic
organization from an institutional organization is the intensity and the deth
with which individual members of an institutional organization hold the core
values which seem to suffuse their total being.
Leaers an Instit(tion B(iling
:eters and "aterman ()1, in their recent research on Bexcellent
organizationsC focus on the role of leadershi in institution building. !hey
emhasise the role of leadershi in shaing the values of organizational
members as well as in develoing distinctive organizational cultures.
Sarabhai was a rolific institution builder. He set u an institution every
year beginning from )*13 till his death in )*3).
List o3 Instit(tions 7it" 7"i'" Vi6ram Sara-"ai 7as Asso'iate
Scientific Research / :hysical <esearch Aaboratory, Ahmedabad
Communications / Dikram &arth Station, Arvi, :oona
Atomic Energy / =ast 'reeder <eactor, Ealakkam
Fuclear 7entre for Agriculture, Few 5elhi
Dariable &nergy 7yclotron
:roject, 7alcutta
Electronics / &lectronics 7ororation of #ndia Atd.
Hyderabad
&lectronics :rototye &ngineering Aaboratory,
'ombay
Space Research / !huma &/uatorial <ocket Aaunching Station,
!rivandrum
Dikram Sarabhai Sace 7entre, !rivandrum
Sace Alications 7entre, Ahmedabad
Sriharikota <ange, Sriharikota
#S<$ Satellite #nstructional !elevision &xeriment
Textile Research / Ahmedabad !extile #ndustries <esearch
Association, Ahmedabad
Development and Nehru Foundation for Development,
Educational Research / Ahmedabad
Dikram A. Sarabhai 7ommunity Science
7entre, Ahmedabad
Management and #ndian #nstitute of ;anagement, Ahmedabad
Operations Research / $erations <esearch Grou, 'aroda
Performing Arts / 5arana Academy for erforming Arts,
Ahmedabad
Instit(tion B(iling
Organisational
Development an !"ange
)%
e !as also associated #ndian Fational 7ommittee for Sace
!ith <esearch #ndian Sace <esearch,
$rganisation, Atomic &nergy,
7ommission, &lectronics 7ommittee.
5eartment of Atomic &nergy,
#nternational Atomic &nergy Agency,
and
7ommittee for Sace <esearch of the >nited
Fations
$ne of the ways of understanding the imact of leadershi actions on
institution building is by resenting the three guiding strategies he had
intuitively used. !hese three strategies rest on a single ivotal value which
is the rimacy and centrality of an individual..
!he three guiding -strategies. he used to build institutions are8
-Fetworking strategy. or creating interacting and overlaing clusters
internally as well as externally both to roduce a vision for the institution
and to translate the vision into actions in terms of research rogrammes
and rojects.
-!rusting strategy. or creating a climate of trust roviding freedom of
action to the individuals, ensuring autonomy, and emhasising horizontal
control9 and caring strategy or creating a climate of caring by the leader
remaining aroachable through oen channels of communication and
emhasising the role of administration as a suort system to the core
tasks of the insitution.
!he lessons that emerge from the study of Sarabhai as an #nstitution
builder can be summed u as follows 8
#n order to develo institutions it is imortant to lace an individual at
the centre of institution building efforts. !he task of a transforming and
transactional leadershi is to resent a vision which will insire many
and to rovide meaningful exchange relationshis.
Aeadershi actions have to nurture trust constantly, creating inter-acting
and overlaing clusters both within and outside the organization.
=ailure to do so is likely to lead to the breakdown of the -institutional.
asects of the organization resulting in its decline and decay.
#t is imortant for an institution builder to identify and lay multile
(formal and :sycho-Social roles within and without the institution.
5ecline in the erformance of institutions could be traced to inade/uate
roles (both formal and :sycho-Social, to translate externally oriented,
interface, and internally oriented leadershi strategies for institution
building.
"hile the criticality of organisational culture to the develoment of
institutions has always been emhasised, the imortance of building in
trust and caring has not been ade/uately emhasised in the literature.
So(r'e/ Adapted from Institution building : essons from !i"ram Sarabhais
eadership, S.#. $anesh % &admanath 'oshi, !i"alpa !ol. (). No. *, +ct,Dec.
(-./. p. 0--,*(*.
)0
A'tivit) +
"hat is the role of the 7hief &xecutive in institution building6 5escribe.
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Appendix"#
ORGANISATION !RIS,S AND OUT!O4,S
Stage !riti'al Iss(e
'irth 8 7reation
5eveloment 8 Survival
Stability
<enewal 8 :ride and <eutation
#nstitutionalisation >ni/ueness and adatability
7ontribution
ORGANIZATIONAL !RISIS AND OUT!O4,S
O(t'ome i3 iss(e is 'orre'tl) resolve/
Few $rganization comes into being and starts functioning
$rganization becomes viable. Aearns from exeriences. >nderstands reality.
$rganization is strong, efficient and flexible enough to resond to changes
<eutation motivates to imrove /uality of goods and services.
!akes advantage of its uni/ue caability and rovides growth oortunities to its
eole
Gains areciation as an institution contributing to society.
O(t'ome i3 iss(e is in'orre'tl) resolve /
#dea remains abstract. $rganization cannot ade/uately develo.
$rganization fails or exists marginally as it fails to adjust to realities of the
situation
$rganization is likely to retun back to survival stage or becomes inflexible for
changes.
$rganizations more bothered about building its. image than imrove erformance.
Greater discreancy likely to arise between rojected image and actual
erformance.
=ails to develo its uni/ueness, concentrates on narrow areas for better security.
5evelos a aternalistic stance which inhabits growth.
$rganization may be accused of lack of any social resonsibility and bothered
about its rofits and nothing else.