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:UsersÐаврузDesktopOBob.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:UsersÐаврузDesktopOB 790550803004.png
This structure is best suited for firms which produce standardized goods or services at low cost and large volumes.
Product – Based Structure C:UsersÐаврузDesktopOBdesign5.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:UsersÐаврузDesktopOBDivision.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:UsersÐаврузDesktopOBOrganization Structure3.jpgSource(http://sameh.wordpress.com/2006/05/13/a7/)
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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:UsersÐаврузDesktopOBelle-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.
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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.
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