Tradition vs innovation: What works best
Are companies that follow conventional business practices better of than those that get innovative by following disruptive business models?
The 45th Hindustan Times Shine HR Conclave – Chennai Edition was all about whether the good old conventional organisational design had the potential to work in the current business scenario.
Balaji Renganathan, head HR, TTK Healthcare, set the tone with a discussion on the Mintberg design for organisations which was a typical business model.
He described how the present business scenario had changed and. adapting to the changing environment had become imperative with start-ups showing the way.
They were pushing for digitisation, artificial intelligence and innovation, he said.
Gitanjali Gandhiok, group president HR, RHC Holding, said that best practices emanated from traditional business designs.
She said that her organisation, which was a single entity, had shifted focus to a more multidimensional design.
She also mentioned that investing in different businesses could maximise the opportunities across multiple sectors. George Kutty, vice presidentHR,
Ousiness model for organisations in the initial stage is always similar and organisational structure is irrelevant, until the bottomline is affected and restructuring is required. GEORGE KUTTY vice president-HR, Reliance Jio
Reliance Jio, said “business model for organisations in the initial stage is always similar and organisational structure is irrelevant, until the bottomline is affected and restructuring is required.”
Sriram Vaidhyanathan, chief human resource officer, BankBazaar.com, said that although e-commerce businesses are based on the traditional model, organisational structure needs to be nimble and consumer facing.
“Even CEOs need to get involved in day-to-day operations,” he said. Madhu Raghunath, head HR and organisational capability, TVS and Sons, said the basic ingredients required in today’s business structure are positioning, staffing and technology.