Viable System Model

ORGANIZATIONAL doings III ASSIGNMENT feasible SYSTEMS MODEL (VSM) AS APPLIED TO A MAJOR ORGANIZATION Study of practicable forms Model at ITC Ltd. Submitted by Daksh Kumar Anand Uh11013 Introduction This paper is intended as study of the Viable outline Model for better downstairsstanding. It deals with some of the basic concepts embodied in the nonplus, the stamp process, and its use in practice in ITC Ltd. ITCs switching from bottom to a conglomerate. Why we need Organizational Models We in all interpret the solid ground through seats these tail end be explicit, or tacit.For all managers in all organizations, their ability to manage a situation or organization efficaciously is in direct proportion to the accuracy and relevance of the models they are victimisation to understand it. By far the most common organizational model in use in focus today is still the vertical model though it has various disadvantages. What it doesnt model is any of the more than fundament al things about the organization what it is, what it does, how it does it, its processes, formal and informal structures, communications and tuition transfers, or decision making.The VSM (Viable governances Model) offers a more sophisticated alternative, one that squirt be used both for diagnosing existing organizations, and for designing cutting ones. The Viable placements Model The feasible systems model orVSMis amodelof the organizational structure of any viable orautonomoussystem. A viable system is any system organized in much(prenominal) a way as to meet the demands of surviving in the ever-changing environment. One of the prime features of systems that survive is that they are adaptable. The VSM expresses a model for a viable system, which is an bstractedcybernetic (regulation theory) description that is applicable to any organization that is a viable system and capable of autonomy. A viable system is composed of five interacting subsystems which may be mapped onto asp ects of organizational structure. In broad arouse bodys 13are concerned with the here and now of the organizations operations, System 4 is concerned with the there and then strategical responses to the effects of external, environmental and future demands on the organization.System 5 is concerned with balancing the here and now and the there and then to turn back insurance directives which maintain the organization as a viable entity. * System 1 (Operations)in a viable system contains several base winding activities. Each System 1 primary activity is itself a viable system due to the recursive nature of systems as described above. These are concerned with performing a function that implements at least startle of the key transformation of the organization. System 2 (Coordination)represents the information channels and bodies that supply the primary activities in System 1 to communicate surrounded by each(prenominal) other and which allow System 3 to monitor and co-ordinate the activities inside System 1. * System 3 (Operations Planning Control)represents the structures and controls that are put into base to establish the rules, resources, rights and responsibilities of System 1 and to provide an interface with Systems 4/5. System 4(Development Research and marketing) The bodies that make up System 4 are responsible for behavioring outwards to the environment to monitor how the organization require to adapt to remain viable. * System 5 (Decisions to maintain identity) is responsible for policy decisions within the organization as a whole to equilibrise demands from diametrical parts of the organization and steer the organization as a whole. agree to the above descriptions, these systems can be organized into three groups reflecting the three heed perspectives * Operational Management (Systems 1,2,3) Strategic Management (System 4) * Normative Management (System 5) VIABLE SYSTEMS MODEL AT ITC LIMITED ITC was incorporated on August 24, 1910 und er the name Imperial Tobacco Company of India Limited. In recognition of the Companys multi-business portfolio encompass a wide range of businesses Cigarettes & Tobacco, Hotels, learning Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, schooling & Stationery and Personal Care the full stops in the Companys name were removed effective September 18, 2001. The Company now stands rechristened ITC Limited.The success of ITC lies in the fact that it has been able to adapt to the changing environment and market inescapably through searching more and more viable options for sustainable ontogeny. allow us apply the VSM model in systematic fashion * System 1 (Operations)in a viable system contains several primary activities. Though the first six decades of the Companys existence were primarily devoted to the growth and consolidation of theCigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate trans formation that ushered in momentous changes in the life of the Company.It entered into the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agro Business and Information Technology. These were chosen on the basis of internal capabilities, the emerging opportunities in these areas and self-confidence that ITC would be able to achieve leadership positions in these business components. * System 2 (Coordination)ITC has a diverse portfolio of product offerings and proper coordination between them is demand and it does take place even at the very basic level. E. g. ne of the primary products in its portfolio Aashirvaad Atta wheat flour is today a leader in its segment within a very short time since its launch. Its success is an workout of the synergies that ITC derives from the diversity of its businesses. ITCs pioneering rural initiative, the e-Choupal network, enables cost effective sourcing of wheat but, more importantly, lends a competitive strength given the tr aceability of the commodity through identity-preserved procurement. This enables customized blending, which again is a strength honed from the practice of tobacco lending over the years, to support local tastes and preferences. This is a perfect example of how the coordination takes place in ITC Ltd. * System 3 (Operations Planning Control) Flowing from the philosophy and core principles, Corporate Governance in ITC takes place at three interlinked levels, namely * Strategic supervision by the Board of Directors * Strategic management by the Corporate Management military commission * administrator management by the Divisional Chief Executive aided by the Divisional Management Committee.It is ITCs belief that the right balance between freedom of management and accountability to shareholders can be achieved by segregating strategic supervision from strategic and executive management. This 3-tier structure ensures that a. Strategic supervision (on behalf of the shareholders), ma crocosm free from involvement in the task of strategic management of the Company, can be conducted by the Board with objectivity, thereby sharpening accountability of management. b.Strategic management of the Company, uncluttered by the day-to-day tasks of executive management, remains focused and energised and c. Executive management of the divisional business, free from collective strategic responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and effectiveness of its business. ITC also benchmark the wellness of each business comprehensively across the criteria of Market Standing, Profitability and midland Vitality. * System 4(Development Research and marketing) ITC is committed to quiting world-class products and services.This requires a trig focus on continuously striving to create a high range to customers by achieving excellence in all Companys operations. ITC always look out to know the customer demands and needs and work upon them. e. g . ITCs hotels business and its rule chefs interact with millions of consumers throughout the year and are able to understand the nuances of regional and local tastes that delight the consumer palette. This knowledge is utilized by the foods business to deliver a superior and differentiated product. System 5 (Decisions to maintain identity) ITC has essential core values in order to bring out the balance between demands of the organization as well as the demands of the customers. ITCs Core determine are aimed at developing a customer-focused, high-performance organization which creates value for all its stakeholders and these are * Trusteeship * Customer Focus * Respect for state * Excellence * Innovation * Nation Orientation. It is clear from the above discussion that ITC follows the Viable Systems Model up to a great extent which is a creator for its sustenance in dynamic environment.