Extension organizations are considered to be organizations which do not work in isolation but are dependent on a number of other subsidiaries or extended organizations that it has.

Example, an insurance company is an extended organization. It is dependent on the sales tied agencies (extensions), sales managers operating from regional offices (extensions).

The basic idea is to integrate all the extensions to ensure that there is a common link, and every organization can work on itself.

Problems in Extensions

1. Lack of motivation

2. Professional incompetence

3. Lack of rewards

Thus the extension procedures aims at removing these discrepancies, and ensure everything is in place.

Plans/procedures in place

1. Job Analysis: Understanding the nature of the job in extensions are crucial for this. It may give the expectations needed, but we also need to determine the objectives & where does the job fit in.

Critical aspects for the plans include values, commitment, concern for the community, & understanding the necessary training required from the job.

2. Recruitment/Training of the people: There is a great need for hiring the right people & proper training mechanism, to make them ready for future challenges, scenario planning. It should be based on the needs analysis.

3. Potential Appraisal: Counsel/guide employees towards greater job effectiveness.

4. Work Group: Introduction of job enlargement/enrichment & job rotation to keep the motivation among the working members high.



1. Extension procedures lays down the guidelines/skill sets which can be followed for an effective organization.

2. It also takes in to account the critical factors for an organization, which ensure that the plans are realistic enough.

3. Extension planning has enough material to keep the motivation of the employees high, and ensure that they work to their full potential.


1. Focus cannot be given to all the factors at the same time, which may result in implementation problems

2. Not all industries are well acquainted with the methods and schemas suggested.

3. There is always a chance of attrition & man power planning, so extensions developed without these in premise often fails.

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