MANAGING

ORGANISATIONS
Study on Present Structure, Design,
Stakeholders of Orril Energy Services and its
Future expansion strategy and
recommendations

Group -1

Lakshmi Arun Kumar (1903021)

Mohanapriya J (1903025)
Ramkishore (1903033)
Sriram B (1903040)
Thanikainathan A (1903044)
Contents
1. Aim and objective of the project 2

2. Orill Energy Services: 2

3. Analysis of the structure 2

3.1. Stakeholder Analysis 3

3.2. Environment Uncertainty & Effect of general environmental forces 4

3.3. Classification of organisational structure 5

3.4. Stage of Orrill in the Life cycle of organisation 5

3.5. Mintzberg Configuration - Operating Adhocracy 5

3.6. Challenges with the Structure 5

3.7. Control systems 6

3.8. Charles Perrow - Org’ Complexity 6

3.9. Thompson’s Task Interdependence 6

3.10. Decision making model at Orill-Carnegie incremental model 6

4. Sources of conflict 7

5. Lost Opportunities- Realtime challenges and shortcomings 7

6. Organisational Method of Learning, Knowledge Management & Change Management 8

7. SWOT Analysis 8

8. Exploring the Business Strategy 8

9. Recommendations to Orill 9

10. Acknowledgement 10

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1. Aim and objective of the project
1. To collect information / data about the organization and understand the present structure,
design, stakeholders (internal and external) , environment of Orril energy services private
limited.
2. To apply various frameworks studied in the course managing organizations to explore and
analyse the challenges, shortcomings in the organization at present.
3. To propose recommendations and solutions to tackle the challenges, reconfigure and
expand their growth to achieve their target goals.

2. Orill Energy Services:

Background : Orill Energy services is a Private limited company started during august 2018.
They have a wide variety of service offerings including technical services, consulting services,
non-technical services etc. (See exhibit 1). One of their differentiated service offerings is the
Utilities Supply (Steam, Heat, Water, Effluent Disposal etc.) on an ESCO mode (See exhibit 2).
Goals, Core Competencies, Strategy of the organization
Goals : Orill strives to Become 1000 crore company in 5 years , maintaining a net profit of +10%
and having a positive cash flow.
Core competencies : They are able to provide a differentiated service offering and their strength
lies in being led by a team of experts (25+) with over decades of experience in outsourced services
management.
Strategy : Low cost leadership and Defender mechanism with emphasis on low overhead,
production efficiency

3. Analysis of the structure

Orill energy services limited is analyzed based on the models and frameworks and below is the
stepwise approach adopted and applied to dissect the organization to obtain the factors
influencing its presence now and the findings will be applied to propose recommendations
henceforth.

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3.1. Stakeholder Analysis
The following steps were conducted for studying the impact of stakeholders in the organisation:
Step 1 :New venture , development plan for Orill energy services limited, 1-year old organization
to expand its market, growth, revenue and hence profit.The Key milestones were to achieve by
2020- 150 % growth rate, by 2021-2024- incremental growth of 75 %, by 2024- Turnover of 1000
crores with a net profit of 10%
Step 2 : List of stakeholders
Internal stakeholders- Shareholders, Managers, workforce
External stakeholders – Customers, suppliers, state and central government
Step 3 : To Identifying stakeholders' interest (See exhibit -3)
Step 4 : To rate the Importance of each stakeholder interest
Shareholders>customers>state and central government>managers>workforce>suppliers
Step 5 : Identify actions and realign stakeholders' interests (See exhibit-4)

Result of the stakeholder analysis is the stakeholder map as below,

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3.2. Environment Uncertainty & Effect of general environmental
forces
The environment at which Orill is operating can be classified as complex, dynamic and rich.
(See exhibit- 5)
Economic forces: the sale of their utilities depends on market conditions. If the sales products
are less due to inflation, then equally the sales revenue is lost. Though the contracts are for longer
term, but with an economic downturn, the profits also dwindle.
Technological forces: as with any new technological development, the cost of producing the
utilities may come down. This can affect the survival of the organization.
Political, ethical and environmental forces: Orril has to deal with conventional sources of
energy like oil, coal, etc. and with the climate change topic getting serious, the legislation can
change quite rapidly. Additionally, the tax regime can also change with the government policies,
which can make it attractive or unattractive for the customers.
Demographic, cultural and social forces: Orril is already facing the issues related to
demographic and cultural forces due to their engagement of large blue-collar workforce who are
spread across the country.

3.3. Classification of organizational structure

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3.4. Stage of Orill in the Life cycle of organization
Orill is at the birth stage in the life cycle of the organization and it has adopted the r- generalist
strategy ( i.e..)( See exhibit -6) its taking advantage of the early entry into the market but is also
experiment its hands on several niches by diversifying their service offerings.

3.5. Mintzberg Configuration - Operating Adhocracy

Orill exhibits the following dimensions and features as an organization in our study - Grouping
as functions and segments, there is little formalization only at present, it’s mostly organic, exhibits
considerable horizontal specialization with selective decentralization and operates in a complex
and dynamic environment and the organizational culture is predominantly through socialization
and being accommodative. While mapping the dimensions, Orill best fits into the operating
adhocracy configuration as per Mintzberg 's. (See exhibit-7)

3.6. Challenges with the Structure

➔ Lack of Individual Specialization-Sales / Marketing teams do not exist as the same is
carried out by the operations team. As the organization gets bigger and bigger, this could
be a challenge and growth can get affected as operations team would have to keep the
existing contracts healthy.
➔ For such a services organization with high level of technical / engineering interdependence
Environment, Health & Safety leader do not exist, though a person has been titled as a
HSQEE lead. IT leader does not exist, but the company wants to go digital and their top-
level strategy is to use technology for growth. Possibility of technology upgrade.
➔ Strategy Problem / Highly Centralized-Cross functional work culture does not exist as all
the department heads report to the director and she in turn manages internal – external
communications. Lack of suitable integration mechanism.

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3.7. Control systems
Orill has quality & SHE control systems in place through an integrated management system
(IMS). For its controlled governance, they have an IT system driven with Maximo as the ERP
and finally financial control by conducting weekly, monthly and quarterly reviews.(See exhibit -
8)

3.8. Charles Perrow - Org’ Complexity

Non - Tech services involves routine tasks with few exceptions. The business line has a flat
hierarchy, moderate formalisation and is decentralised.Consulting services are non-routine tasks
with many exceptions. The solutions are managed with horizontal communication and
meetings.Production services, Utilities and Technical services are highly routine and formalised.
The business line is highly centralised with wide span of control. The same is also plotted in
Charles Perrow chart based on it’s task variability and analyzability.(See exhibit -9)

3.9. Thompson’s Task Interdependence

Tech services are handled by Subject Matters Experts and there is not much of task
interdependence. Consulting services deals with non-routine tasks and many exceptions. It
requires interaction between different teams for a cross-functional project. Prod. services,
Utilities and Non-Technical services are highly routine and formalised.
The business line requires high level of planning and scheduling.The type of technology
employed , main type of coordination are marked in the interdependence chart.(See exhibit-10)

3.10. Decision making model at Orill-Carnegie incremental model

➔ Orril aligns to satisficing because of the liability of newness and also in minimizing the
overhead to spend for costly decision making process.
➔ Middle line managers are boundedly rational as they have only limited information
available about the market.
➔ The managers come from different backgrounds and hence decisions are taken only by
dominant coalition.

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4. Sources of conflict
➔ Differences in goals of stakeholder (shareholder) to reduce the overheads Vs goals of
stakeholder(workforce) to spend on employee development.
➔ Reciprocal interdependence in consulting services.
Management of conflicts
➔ Alterations at the individual level- interference of CEO for conflict resolution
➔ Potential to have a seperate integrating mechanism

5. Lost Opportunities- Realtime challenges and shortcomings

Business Customer Requirement Business Response Competitor’s Reflection

Line Potential Time Move

Utility MRF Supply of 1 to 3 2 weeks Thermax and Due to lack of additional

Supply Limited Steam crore per another technical resource
month competitor shared
the portfolio

Utility JK Tyres Mould 0.5 crores 3 weeks In House team of Due to lack of knowledge on
Supply maintenance per month JK has continued Mould management
and to do this
management
for their
products

Utility Pioneer Supply of 1 crore 2 weeks Thermax has Due to lack of follow up by
Supply Jellice Steam per month bagged this the team
contract

Utility JK Tyres Supply of 3 crores 2 weeks Not sure Due to lack of cash flow
Supply Steam per month Orril could not invest on the
boilers

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6. Organizational Method of Learning, Knowledge Management &
Change Management
➔ Personalization - high reliance on experts in the team, IT not engaged to archive the
knowledge pool ye
➔ Explorative learning method- visible in the varied ventures in the service matrix from
mobile engineering services to horticulture.
➔ Flip-side cognitive bias in the form of illusion of control, representativeness.
➔ Organisation is looking at a revolutionary change to achieve an aggressive growth of
150% in 2020
➔ Orril should target reconfiguration in dissolving some services in the future.

7. SWOT Analysis
SWOT analysis is the inference and outcome of the analysis of the structure as given below

8. Exploring the Business Strategy

➔ The assessment also looked at the existing strategy as explained by Orril’s senior
management team
➔ The strategy is more towards meeting the investors aggressive expectations on growth and
profit

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 ➔ Orril provider's utilities to manufacturing sites, but has also tapped into other outsourcing
opportunities to cover its cost towards the central overheads
➔ This has led to distraction and Orrill's focus on smaller contracts which can upset the
strategy and vision of the stakeholders
When asked about how the organization would achieve the objectives, the stakeholders were
depending on:
➔ Lean workforce
➔ Digital & technology
➔ Good corporate governance
➔ Focus on long term, high revenue contracts.
➔ Centralized operations with very less infrastructure at all other locations.

9. Recommendations to Orill
1. Alignment between the contradicting interests of stakeholders by exploring the
development opportunities for workforce - attract and retain
2. Dedicate some spending and market research to explore “green” availabilities due to the
global shift in judicious use of conventional sources
3. Going forward,moving towards “differentiator” strategy to act to their strengths in the
service offering and reducing the losses in less familiarized territories.
4. Very aggressive growth targeted at the expense of limited manpower and assets (boilers
and turbine). Build capacity revisiting capital structure - Leverage Financing
5. “Poach” some senior experienced leadership for the IT, technology head and safety to meet
the demands - Expanding core competences
6. Conflicts are overburdening the director who is required to be available, middle line
managers to be empowered to make decisions better with performance and experience and
promote joint specialization.
7. To exploit the r- strategy to maximum by making the best use of market potential of 90 %
by entering the market earlier - Adding Marketing team in the structure shall support
Orril’s vision and goals
8. Highly interdependent services should have better integration mechanism in the form of
integrating department - Marketing Team as PMO
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10. Acknowledgement

Primary Data -

1.Interview with Director (Lakshmi Arun Kumar), collected the voices of senior management,
advisors and interaction with her team (procurement, finance and HR)
2.Monthly Reports of the Organisation -PDCA

References-

Organizational Theory, design and changes- Pearson

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Exhibit -1 ( Service matrix)

Exhibit-2 (Typical service of Orril – Steam supply)

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Exhibit-3 ( Stakeholders interest)

Exhibit-4 ( Stakeholders interest)

Issues Actions Comments

● Organisation structure needs a review and

Existing organisation structure has significant
change to suit the aggressive growth plan.
Ambitious & resources on the support functions and lesser
● Differentiator (service offering) needs to be
aggressive Growth plan on technical side. Given the service offerings
marketed well with a good pricing system.
(Rs 1000 crores by technical dependency, it is highly
● Dependency only on digital technology
2024) recommended to increase the team with
cannot lead to success. Technical strength
experts to win more contracts and sustain.
needs to be reviewed and upgraded
● The value of going cash positive should be
Given the Indian scenario, making the
balanced with the returns the customer would
company cash positive would still be a
get so that he can agree for the payment
challenge, but with careful selection and the
Cash Flow positive terms
efficiency improvement that is offered to the
● The same applies with the supplier as well so
customer, this could be achieved. Needs
that he supplies good materials at lower costs
significant effort.
and in a consistent manner.
● From the analysis it looks like this service
Orril has to validate their service offering in
offering has only one major competitor
line with Thermax and others to differentiate
(Thermax), which needs to be validated with
Market competition from them. Additionally look at selling the
their offer.
services more effectively through the top-
● Resistance from in house teams rejecting the
bottom approach.
service offering due to vested interest.

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Exhibit-5 ( Environmental uncertainty)

Exhibit-6 (stage of organisation and its survival strategy)

Exhibit-7(Mintzberg’s configuration)

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Exhibit-8

Exhibit-9

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Exhibit-10

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