August 24, 2014
Abstract: Empirical work by late Alfred Chandler concluded that the sustained performance of an organization depends on the flexibility of its structure to change with the evolving strategic imperatives. This inference is particularly illuminating in the context of the termination of the Planning Commission (PC) in 2014 and the subsequent creation of its new avatar.
The Independent Evaluation Office set up by the PC has recommended that the PC’s successor organization should: (a) serve as a knowledge bank; (b) generate ideas for reforms; and (c) anticipate future constraints to growth and welfare. These three mandates are indeed the need of the hour, although each requires distinct skills. So, can all three be performed effectively within the same institution? While there are arguments both in favour and against, one essential criteria for success is that the new organization’s structure should be designed from bottom up, keeping Chandler’s inference in mind.
Keywords: strategy; structure; skills; institution; Planning Commission