Even though it was just 10 days since I have joined for PGPM, I was understanding how small I was, as an entity in the organization I worked. It was this subject which gave me those realizations. ‘Value Creation Model’ which was taught in the first class was really exciting. It dealt with the very basics of how an organization worked. Model started with naming organizational inputs (input which organization receives from environment) as Raw Materials, Money & Capital, Human Resources, Information & Technology ad Customers. If we look these inputs closely, we can realize that entire Management specializations are based on this organizational inputs.
Specializations in:
* Operations deals with handling raw materials
* Finance deals with handling Money and Capital
* HR deals with handling Human Resources
* Systems deals with Information and Technology
* Marketing deals with customers
The first lesson I understood was, having efficient managers in all these departments are essential for the success of an organization. And it is with the help of these managers, organization converts the inputs and add value to them in the form of machinery and human skills which is termed as Organization Conversion process. Finally, the organization releases output to the environment as finished goods and services, dividends, salaries and value for stakeholders. Finally, the model analysis ended with stating the importance of Organizational Environment which has a great influence in the success and failure of an organization. Handling customers, shareholders, suppliers, government, competitors and distributors are the ones dealt with organizational environment.
In a nutshell, I understood that the organizational structure is far more complex than I have imagined with the first few classes of this subject. But, it is just a start. Long 2 years of studies are yet to come. Long journey of knowing and understanding the world continues...
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