Jill Thompsons Proposal To Decentralise The Rules Commerce Essay

I surely believe that his activity of decentralization can effect on company significantly. His first step was amazing, to analyze what is wrong, what he has to do to solve the problems, why the company research output and manufacturing productivity had steadily declined. After he had found the problems he started decentralization. I think decentralization of rules is a first step for recovering Bosco Plastic. It is because the previous one was made wrong, unplanned and haphazardly. Moreover the rules and procedures of the company was the same for every employees and time table for them was too flexible. For example labor could come whenever they wanted between 8:00 and 10:00 and leave after 9 hours. It is uncommon for company which has 400 employees. Time table has to be strongly made individually or divided into groups. There are must be the time when labor has to arrive and the time when they leave. This touches also breaks. The time table of employees directly connected with productivity.

By the way the situation on developing area was also even worse . There were not excellent conditions for engineers and chemist. The punching machine was broken and even if there was opportunity to make something new it was too difficult to put on production.

To sum up, to make decentralization better Jill can make a research and analyze the situation more carefully. It is very important to make rules with the help of supervisors, managers and employees.

1.1 Compare and contrast different organizational structures and cultures

Organizational structure is a common principles on which the organization’s management structure is built and the process controlled. That means organizational structure illustrates schematic interaction between different labors. There is always a need for a people in the business to know who is in charge, what is their role and who turn to if there is any problem. All of these questions could be answered by organizational structure. It is important to know that different firms have structured differently. A structure of enterprise relies on the organization’s strategy and objectives.

Types of organizational structures:C:UsersНаврузDesktopOBob.jpg

Line organizational structure (figure 1) is the simplest hierarchical management structure, also known as a bureaucratic. Line structure consists of chief and several subordinate employees, large companies can also have up to 3 to 4 or more levels of hierarchy.

Fifure 1 Source (http://www.bscdesigner.com/setting-up-balanced-scorecard-concept-for-business-hierarchy.htm)

Functional Structure is described in figure 2. As we see from the name the main idea of the structure is to divide company into several specialized group, ie each controller is specialized in the implementation of specific activities or departments. Each group has own responsibilities, duty and they are not connected directly. For example financial controller is not able to influence to customer service. However customer service manager can influence to planning manager because planning manager is one of the department of customer service.. C:UsersНаврузDesktopOB790550803004.png

This structure is best suited for firms which produce standardized goods or services at low cost and large volumes.

Product – Based Structure C:UsersНаврузDesktopOBdesign5.gif

In this type of structure firms divided by products, projects or geography. This allows a company to have a particular focus on specific items in its business operations. Each group concentrated on own product or serve. This method is now gaining ground in large enterprises, which are expanding the range of products, where the other method would only complicate the structure of the organization.

Source(http://www.revisionguru.co.uk/business/design.htm)

The Divisional structure .This type of structure is more complicated rather than product based or functional. In the structure company is split up into several self – contained business units which are called division, each of which operates as a profit center. Division may engage in production of specific types of products, work in a particular area or on a particular market.C:UsersНаврузDesktopOBDivision.png

Source(http://www.bscdesigner.com/setting-up-balanced-scorecard-concept-for-business-hierarchy.htm)

Matrix structure is a most complicated organizational structure. Matrix one is combination of two different structures usually line and functional structure. In matrix structure, knowledge and skills of the talented employees could be shared between the functional departments and the project management teams, as needed. In this organization structure, usually employees have two managers to whom they may have to report. Which manager is more powerful-it depends on the type of matrix structure.C:UsersНаврузDesktopOBOrganization Structure3.jpgSource(http://sameh.wordpress.com/2006/05/13/a7/)

Organizational culture is a coordinate system that helps employees build their behavior both inside the company and outside of it. This is what unites them – values, business philosophy, which includes the mission, vision, general purpose, beliefs and habits. It is an atmosphere which is formed within the group, the rules that a novice should learn to be accepted by the team, norms and traditions that occur over time in the team.

Charles Handy’s organizational culture types.

Power – a culture that is dominated by the head of the organization has a strong influence over the people. These organizations have a simple structure, few rules and procedures but with well -understood, implicit codes on how to behave and work. They are authoritarian, tightly controlled workers. This type of culture can quickly respond to changing situations, make decisions quickly and organize their implementation.

The big disadvantage of power culture is the size of the organization. Therefore, it can be effective only for relatively small firms. The success of the organization with the power culture is entirely determined by abilities and qualifications of head of organization

Role – in this case members’ activities are formalized and standardized in details. It is the culture of the bureaucratic type, based on official capacity, a clear system of rules and regulations, the distribution of rights, duties and responsibilities of the members of the organization, which ensures its effective existence for a long time. However, the effectiveness of the role culture firstly depends on the rational division of work and responsibility, and not on individual personalities.

Task culture – culture, which focuses on successful execution of tasks or projects. The effectiveness of the organization mostrly connected with a high professionalism of employees and cooperative group. Task culture tries to connect the appropriate resources and appropriate staff at the right level and to enable them to do the job well. This culture is characterized by: a high degree of autonomy, evaluation the job by results, informal working relationships within the group, mutual respect based on personal skills.C:UsersНаврузDesktopOBelle-smart-fig-2 (1).jpg

Person – a culture in which the central point is the individual. The culture exist primarily to serve and help their members. Power in such an organization is based on proximity to resources, professionalism and ability to negotiate. It is only a coordinating nature. Examples of person culture can be law firms, small consulting firms, unions, journalists and architects, etc.

Source (http://www.ivoryresearch.com/elle-smart.php)

1.2

What kinds of rules and procedures do you think the department managers will come up with? Which departments will be more formalised? Why?

Firstly I want to notice that Jill Thomson made an excellent decision to ask department managers to create new rules and procedures to their area. The first great changing I think will touch the entire procedures. Also the rules will be not the same in whole each department will have different rules. Except this time table for employees will be not flexible as it was. For example employees will not able to come wherever they want between 8:00 and 10 am. Managers have to create time table for each member or divide them for several groups as it shown in the table and breaks as well.

#

Group

Day

In

Break

out

1

A

Mon,thue,sat

09:00

13:30-14:30

18:00

2

B

Thur.Sun.Wen

11:00

14:30-15:30

20:00

3

Developing department

Mon-friday

10:00

14:00 – 15:00

19:00

4

Mostly changes need in developing department as the company is an innovation company which is produces toys. The sale depends on new product the more new products the more the sale. So the profit directly connected with this department. Jill has to mansion it and pays attention to this department more. First of all the punching machine has to be changed. Also the going down to the local dime store must be returned. Moreover the implementation new toys should be simpler.

Supervisors and Managers should give monthly statement about their stuff and work.

1.2

Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business.

Organizational structure can be compared to a foundation of management system, which is built to ensure that all the processes taking place in company implemented in a time and accurately. That’s why there is the enormous attention from leaders of organizations, focusing on the principles and methods of building structures of the organization, the selection of types and species, the study of trends and assessment of relevant tasks of the organization – it shows the urgency and importance of the topic in the current conditions.

The structure of the organization includes all of the tools that is carried out:

-Distribution of activities between the components of the Organization;

-Coordination of the activities of these components.

Indeed, without the structures employees would simply be unmanageable crowd, or, at best, a set of independent groups, not an organization. Structure – one of the main characteristics of the organization regardless of whether it is a tennis club or charity, workers’ cooperative or a multinational corporation.

The main characteristics of the organizational structure is divided into sections (departments, sectors, etc.), as well as accountability and subordination. But there are other features (for example, information systems and numerous procedures for coordination) , which cannot be shown in this scheme.

Organizational culture is something for which people have become members of the organization, how are relations between them, what rules and principles of life they share, what they think is good and what is bad, and a lot more of what relates to the values ​​of and norms. This not only differentiates one organization from another, but also significantly determines the success of the operation and survival of the organization in the long term.

As the culture plays a very important role in the life of the organization, it should be the subject of attention from management. Management is not only consistent organizational culture and is highly dependent on it, but may in turn have an impact on the formation and development of organizational culture. To do this, managers must be able to analyze the organizational culture and influence on its formation and the change in the desired direction.

Organizational culture creates “internal, spiritual core” of the company, promotes team building, creates a sense of awareness among the staff and responsibility for their work.

The organizational culture of the team improves and solves problems as personal development of staff and the development of the organization. It is a prerequisite for the formation of stable and efficient working team, a clear vision of the mission of the organization.

1.3

What risks will the company face if it establishes different procedures for different areas? Explain your reasons by analysing the merits and demerits of ‘organic’ and ‘mechanistic’ structures with regard to changes proposed by Jill Thompson.

I think that the company will not face serious problems with it , because in my opinion Thompson does not want hugely changes , he tries to put the company on right way. First of all if we consider this situation by changing organization structure from organic to mechanistic one we have to know what are they.

Mechanistic

Organic

Individual specialization:

Employees work separately

and specialize in one task

Joint Specialization:

Employees work together and 

coordinate tasks

Simple integrating mechanisms:

Hierarchy of authority well-defined

Complex integrating mechanisms:

task forces and teams are primary

integrating mechanisms

Centralization:

Decision-making kept as high as possible.

Most communication is vertical.

Decentralization:

Authority to control tasks is delegated.

Most communication lateral

Standardization:

Extensive use made of rules & Standard

Operating Procedures

Mutual Adjustment:

Face-to-face contact for coordination.

Work process tends to be unpredictable

Much written communication

Much verbal communication

Informal status in org based on size of 

empire

Informal status based on perceived 

brilliance

Organization is a network of positions, 

corresponding to tasks. Typically each 

person corresponds to one task

Organization is network of persons or

teams. People work in different capacities

simultaneously and over time

Source (http://www.analytictech.com/mb021/organic_vs_mechanistic_structure.htm)

The previous structure was mechanic structure. This structure characterized by using formal rules and procedures. In this case all employees of the company must act strictly according to the instructions and do not deviate from them. So in Bosco Plastic all employees had the same rules and procedures.

However organic one is not formal, rules can be changed, better adapted to rapid changes in external conditions and the emergence of new technologies. Also employees are treated as certain patterns of behavior, so the emphasis is on motivation, various very complex systems of remuneration and bonuses, benefits package and so on. If you’re a good worker and executes corporate or production levels, will give you a bonus to the salary, health insurance, pensions, canteen, cellular pool with a gym.

Mostly Bosco looked like a mechanic one in my opinion. The company did not pay attention to employees. The big problem will touch I think supervisors and managers because they will have more duties and responsibilities. For example they have to find different approaches to each employee. Employees will face problems as well. They have to change their habits which they used. Sometimes there are will be misunderstanding but the changings need to this company.

1.3

Discuss the factors which influence individual behaviour at work.

According to Michael Mattson and John Ivancevich, the most factors that impact on individual differences in behavioral patterns are abilities and skills, perception, demographic factors, attitudes and personality.

Personality usually refers to uniqueness of each person and personal features that make him or her differ from other people. In fact, personality is based on predictability how a person will act or react under different circumstances .Thus, personality affects other people in an organization through interaction. Sometimes mix of different characters can lead to conflict between two or more people which afterwards may decrease effectiveness of team. That is why, leaders of groups should provide teammates with quizzes that can identify their personality. After that people with the same personal features will be work in one group in order to avoid misunderstanding.

Perception – is the cognitive process by which a person interprets the environment. It is a process of awareness of what is happening around us, through selection of interpretation of information from the external environment. It is a way of forming ideas about themselves and the world. Perception is a filter which helps to analyze information before it will have an impact on people. Everyone is an artist that paints a picture in their minds of the world, which reflected his personal vision of reality. Because of individual differences in preferences, personal qualities, values and interests people often “see” the same things differently. Managers should take into account the differences in perception.

Attitudes and values are main factors that influence individual behavior. Actually, personal attitudes are an integral part within the organization that can influence on positive and negative behavior. Brooks (2003) states that, attitudes based on direct experiences can be very strong and very hard to break. First of all, an attitude includes some emotional elements such as mood, beliefs, opinions and other aspects. In addition there are four types of attitudes such as: organizational citizenship behavior (OCB), job satisfaction, job involvement and organizational commitment (Brooks, 2003). Many people prove that attitudes are not entrenched in our character as deeply as values. For instance, values give us a sense to understand what is good and bad or right and wrong (Brooks, 2003). Besides this, values in organization can create and develop specific corporate culture. Consequently, certain established values will differentiate organizations from their competitors. According to Rockeach and Ball-Rockeach (1989) values can be terminal and instrumental. Basically, terminal values are based on peace, security, partnership and other elements. Whereas, instrumental values expressed in a form of behaviour in order to achieve these terminal values. On the other hand, attitudes and values can lead to conflict between individuals and groups. Thus, it will be difficult to establish a certain culture within the organization.

Abilities and Skills: Ability is a physical capacity of an individual to do something. Skill can be termed as the ability to act in a way that accepts a person to perform well. Ability and Skills have great impact on the individual behavior and performance. An employee can perform well in the company if his skills and abilities are matched with the job requirement. The managers are of great relevance in matching the skills and abilities of the employees with the specific job requirement.

How would you describe the organization culture at Greenscape? Under the different types of culture, what type of culture, do you think, operating in Greenscape? Justify your views with evidence.

The Greenscape had grown from a one-person firm into large company with twenty full-time employees working in six to eight crews. The founder of Greenspace , Lita Ong kept organization culture open and friendly. She was aware of employees’ problems and tried help them. For instance, she got up every morning at five-thirty in order to arrange schedules so that Johnson could get his son out of daycare. By paying attention to needs and problems of employees, she was able to become friends of employees rather than their boss. This helped her to keep its employees loyal to company. When Greenscape went in trouble because of not opened mall, employees did not left organization and they were ready to work without payment.

The organization culture in the Greenscape can be described as task culture. It focuses on successful execution of tasks or projects and effectiveness of the organization mostly connected with a high professionalism of employees and cooperative group. This type of organization culture involves high degree of autonomy and informal working relationships within the group which was present in Greenscape. The employees of it were able to concentrate on task fulfillment because their boss was helpful for them. As it was stated in the case study, Lita Ong knew how to deal with her employee Emily when she was depressed because of her boyfriend’s behavior. This support from Greenscape founder, helped to retain employees in company’s hardship.

How large can such a company get before it needs to change its culture and structure? And why it is important to change culture and structure? Discuss briefly the benefits and difficulties that Greenscape have to cope with changing its culture and structure as the company gears for its growth.

It can be challenging to change the culture of an existing organization than to create a culture in a brand new organization. If organizational culture is already established, people must unlearn the old values and behaviors before they can learn the new ones. The small companies usually have to adopt their culture when they grow bigger. In addition, organization should properly develop future structure of it because one manager cannot handle too many employees. It is essential to employ certain organizational structure such as matrix or divisional.

In case of Greenscape, Lita Ong concentrated mostly on short term problems like employee absenteeism or their problems. Lita Ong had to get up early to make schedules which could be delegated to other employee. Lita Ong should more consider business’s long term goals and employ other staff which will deal daily issues. The founder of Greenscape created friendly atmosphere within organization which helped keep employees loyal. This was beneficial to organization because personnel of Greenscape were ready to work month without payment. On the other hand, Lita Ong had difficulties in managing business and employees in the same time. To avoid this kind of difficulties, Lita Ong should more concentrate business development and delegate managing employees to other person.

2.1 Compare the effectiveness of different leadership styles in different organizations.

In our society, every group of people led and influenced by leaders. In every organization, there are leaders who help meet organization’s goals. According to Greenberg and Baron (2003), leadership is process when one person influences other members of group toward achievement of specific group or organizational goal. . Besides, leadership has a lot of theories that describes style of management. One of them is behavioral theory. Actually, this concept is focused on what leaders do and how they act in a certain situation. According to Mullins (2005), good leadership includes effective combination of empowerment and delegation. It means that good leader have to able to control and delegate tasks effectively. Study of leadership styles helps to managers of organization avoids many issues like job strikes. There are four leadership styles: Autocratic, Democratic, Laissez-faire and Paternalistic. Autocratic leaders do not advice with other their decisions and them but their decision made quickly (mindtools, 2010).C:UsersНаврузDesktopOBleadership(5).jpg

Source(http://www.leadershippost.com/)

In Autocratic style leaders try to take part in every activity which are happening in the company and try to control everything. All important decision made by them as well. The leader decides how the work has to be done and by whom. The style is most effective in situations where the company, or followers, seem to be drifting aimlessly. According to Dogra (2011) “Authoritarian leadership style examples can be found in the real world in people like Bill Gates and John F Kennedy. Bill Gates followed the authoritarian style and steered Microsoft towards unbelievable success. According to Bill Gates, he had a vision when he took reins of the company and then used all the resources available to make that vision a reality. His success can be judged from the way personal computers industry has advanced in America today”C:UsersНаврузDesktopOBleadership-styles.jpg

Paternalistic style is similar to autocratic but here leaders can be consulted by some of their employees before making decision. A famous example of a participative leader is an American business magnate, television personality and author – Donald Trump who manages The Trump Organization. According to :” Donald Trump is known for his eccentricity and unconventional businesses practices. He exhibits an unconventional leadership style, which is characterized by many characteristics. One of those is the need for power. This is exhibited by every piece of real estate Mr. Trump owns. Every casino, building or golf course has his name on it. He is eccentric, powerful, but yet he makes very smart business decisions. He is also a risk taker but He always consult with his staf before making decisions “

Democratic style is characterized by the distribution of powers, initiative and responsibility between the manager and deputy, leader and subordinates. Leaders make decision with consulting their staff. According to Dogra(2011): “Example is a manager has newly joined a firm. He is still learning how various things function in the organization. In such a situation, he relies on the suggestions and opinions of his team members and lets them do the things the way they are used to, till the time he is able to gain sufficient knowledge and can suggest some more feasible changes.”

Laissez-faire style is characterized by a lack of active participation in the management of a team leader. Such a leader, “drifting”, waiting for instructions from above or requires or is taken under the collective. Prefer not to take risks, “low profile” shirk the urgent resolution of conflicts, trying to reduce their personal risk. Work ride, rarely controls it. This leadership style is preferred in creative teams, where employees are different independent and creative individual.

C:UsersНаврузDesktopOBleadstyle.jpg

Source(http://www.nwlink.com/~donclark/leader/leadstl.html)

2.2 Explain how organisational theory underpins the practice of management.

Organization theory is the study that analyzes the principles, laws and rules of the organization, its evolution, the mechanisms, the interaction of its parts, impacts of external and internal factors to achieve new goals.

Scientific management

Scientific management or Taylorism is a theory of management that analyzes and synthesizes workflows, improving labour productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911).

Frederick Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work. Its application is contingent on a high level of managerial control over employee work practices. In scientific management the practical implementation of specific activities preceded by a thorough scientific analysis of work processes and conditions for their implementation, as do practical measures based on the achievements of modern science and best practices.

An essential part of the scientific management is division of labor. For proper operation of the company or organization, you must first assign employees to specific jobs and assign each a concrete job functions. This is achieved by selecting the best division of labor and division of the entire scope of work into separate parts, each of which performs a specific employee.

According to vectorstudy.com (ND):

“The four objectives of management under scientific management were as follows:

1. The development of a science for each element of a man’s work to replace the old rule-of-thumb methods.

2. The scientific selection, training and development of workers instead of allowing them to choose their own tasks and train themselves as best they could.

3. The development of a spirit of hearty cooperation between workers and management to ensure that work would be carried out in accordance with scientifically devised procedures.

4. The division of work between workers and the management in almost equal shares, each group taking over the work for which it is best fitted instead of the former condition in which responsibility largely rested with the workers. Self-evident in this philosophy are organizations arranged in a hierarchy, systems of abstract rules and impersonal relationships between staff.”

According to psylist.net (ND): “Taylor was one of the first who began to use psychological tests in employment and used observation, interviews and questionnaires as well. He first raised the question about the connection process with the activities and the psyche of people.”

Bureaucracy

Bureaucratic management can be described as “a formal system of organization based on clearly defined vertical hierarchical levels and roles in order to maintain efficiency and effectiveness.” German sociologist Max Weber was the first who demonstrated the advantages of the bureaucracy as a management system. According to Weber, bureaucracy is the most efficient form of organization. The organization has a well-defined line of authority. It has clear rules and regulations which are strictly followed.

Characteristics Of Bureaucratic Organizations

Management by rules

Management by rules and regulations provides a set of standard operating procedures that facilitate consistency in both organizational and management practices .The activity of each member of the organization subject to regulations aimed at streamlining the process of management. Ideally, these rules should make the predictability of each employee and the organization. Although the rules can be modified, but, in general, they should be stable over time.

Division of labor

Every employee has certain responsibilities and scope of work, which cannot duplicate the scope of the powers of other members.

Formal hierarchical structure

Bureaucratic structure of the organization can be compared to a pyramid: the majority is in its base, and a minority – at the top. Each person included in this vertical hierarchy, led by lower people and, in turn, is subject to a higher. As a result it helps to monitor the activities of each member organization.

Written documents

All actions, rules and decisions taken by the organization are formulated and recorded in writing. Written documents ensure that there is continuity of the organization’s policies and procedures.

2.3

Evaluate the different approaches to management used by different organizations.

Approach to the management includes goals, laws, principles, methods and functions, management technology and practice management.

Types:

human relations approach;

systems approach;

contingency approach

The Human Relations Approach emphasizes the importance of human needs in the workplace, and the consideration of management practice and job design to meet those needs. Could be best explained as a function of social factors and the satisfaction of the human needs of workers

This approach was inspired by the Hawthorne Studies, a research conducted to Western Electric Company’s plant’s employees in Illinois

The Hawthorne Studies

Elton Mayo from Harvard University and a research team studied how changes in work environment on productivity of factory workers (9years)

Illumination

Temperature

Work environment

Work hours

Social and emotional needs

Explanations of Findings

Worker output increased as a result of attention from managers.

Hawthorne effect-attention to workers causes changes in behavior

Social interaction in the group and open communication between workers and managers increased productivity

The systems approach emphasizes that managers should consider the organization as a set of interrelated elements, such as people, structure, objectives, and technology that aim to achieve various goals in a changing environment. The entire system can be broken into three parts namely – input, process and output. [1] 

Input involves the raw materials, funds, technology, etc.

The process refers to activities related to management, technology, operations, etc.

Output are the products, results, etc.

The response or feedback in a system focuses on the information and data which is utilized for executing certain operations. These inputs aid in correcting the errors found in the processes.

C:UsersНаврузDesktopOBinput-ouput.jpg

A Source (http://www.buzzle.com/articles/systems-approach-to-management.html)

System consist of different subsystems. They are internal and external. These subsystems are interconnected and influence each other. Each of the subsystem interacts with the adjacent subsystem and they work in synergy for the betterment of the entire system. The limits, within which the internal subsystems function, are determined by the system boundary. The external subsystems, on the other side are those which lie outside the boundary limits, but still influence system

For example: In a supermarket, the various subsystems are the marketing and advertising, sales, admin and finance department. These are the internal subsystems that lie within the boundary. The external subsystem here are the buyers or the customers who visit the store. Only when all these subsystems work together, the system is said to function effectively [2] C:UsersНаврузDesktopOBelements-of-a-system.jpg

Source(http://www.buzzle.com/articles/systems-approach-to-management.html)

Contingency (sometimes called the situational) approach believes that there’s no single system that can apply to all workplace challenges. Managerial personnel work to determine specific solutions to handle workplace issues and satisfy customer needs. This means assigning employees to a task based on relevant skills, developing situational strategies to meet deadlines, and integrating these efforts to provide a fully realized plan of action. Managers using the contingency approach only deal with challenges and risks as these situations occur for the business. In other word the situational approach to management is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization. The manager has to systematically try to identify which technique or approach will be the best solution for a problem which exists in a particular circumstance or context.

For example, when managers at Taco bell addressed the question of what would work best for its restaurants they redefined business based on the simple premise that customers value food service and the physical appearance of the restaurant. To implement the new customers focused goals, the company recruited new managers who were committed to creating or delivering goods that customer value and who could coach and support staff in the new direction. To concentrate on customers, Taco Bell outsourced much of the assembly-line food preparation, such as shredding lettuce, allowing employees to focus on customers. As a result it has enjoyed a 60 percent growth in sales at company owned stores. Other fast food restaurants might base their business on different situational factors, by the contingency view. [3]