Organisational Theory Structure and Design DEC 2025

Description

Organisational Theory, Structure and Design

Dec 2025 Examination

 

 

Q1. Critically evaluate the CEO’s approach to centralizing decision-making in a fast- growing pharmaceutical company, which has led to delayed product launches and frustrated department heads. Considering the trade-offs between maintaining quality control and empowering leaders, propose an evidence-based strategy for implementing decentralization and effective delegation. Justify how your recommendations would enhance organizational agility while ensuring accountability.” (10 Marks)

Ans 1.

Introduction

In a fast-growing pharmaceutical company, effective decision-making is critical to balancing innovation with regulatory compliance. The CEO’s choice to centralize authority may stem from a desire to maintain tight control over quality and compliance, which is particularly vital in an industry where errors can have serious consequences. However, centralization has created unintended problems such as delays in product launches and growing frustration among department heads who feel disempowered. This scenario highlights a classic organizational dilemma: how to safeguard accountability and quality standards while enabling faster, more responsive decision-making. A critical evaluation of centralization and decentralization, combined with evidence-based strategies for delegation, can provide the company with the

 

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Q2(A). Reliance Jio entered the Indian telecom market with a disruptive cost-leadership strategy, offering free and affordable data services that rapidly attracted millions of customers. Competitors were compelled to lower prices and revise their business models, while consumers enjoyed better services at reduced costs. However, this also led to concerns about sustainability, profitability, and regulatory challenges.

Apply the concept of cost-leadership and market positioning to evaluate how Reliance Jio’s strategy reshaped the competitive dynamics of the Indian telecom sector. (5 Marks)

Ans 2a.

Introduction

Reliance Jio’s entry into the Indian telecom sector marked a turning point in the industry, fundamentally reshaping competitive dynamics. By adopting an aggressive cost-leadership strategy, the company offered free voice services and low-cost data packages that disrupted traditional pricing models. Competitors were forced to cut tariffs, merge operations, and rethink their strategies. While consumers benefited enormously, questions arose about long-term sustainability, profitability, and regulatory oversight. Jio’s approach demonstrates both the

 

 

Q2(B). Critically analyze how the application of the 7S Framework can help a rapidly expanding e-commerce startup — which has grown from 20 to 500 employees in two years — diagnose and resolve misalignment issues such as unclear roles, inconsistent processes, and declining employee morale. Evaluate which elements of the framework (strategy, structure, systems, shared values, style, staff, skills) should be prioritized to achieve organizational alignment and justify your reasoning.” (5 Marks)

Ans 2b.

Introduction

The rapid expansion of an e-commerce startup from 20 to 500 employees in just two years presents both opportunities and challenges. While growth reflects market success, issues such as unclear roles, inconsistent processes, and declining employee morale suggest organizational misalignment. The McKinsey 7S Framework provides a structured lens for diagnosing and resolving these challenges by examining seven interconnected elements. Prioritizing the right areas can help the startup achieve alignment, sustain growth, and strengthen its organizational