Organization

An organization structure refers to an arrangement of people, relationship and responsibilities in carrying out company activities to achieve goal. In addition it also can define as how a people in the organization are group together and to whom they report. Formal structure is needed for larger organization that decisions have to be made about the delegation of various tasks. In an organization structure clearly indicate and separate between the work activities which define by their job role.

In good organization structure should explain the relationship of authority who reports to whom and for managers, who reports to them. An organization structure usually illustrated graphically in an organization chart. There are several types of organization structure such as functional organizational structure, geographic organizational structure, matrix organizational structure and product organizational structure. Functional organizational structure refers to a group of people in the organization or department that hold similar position and perform similar task. It also indicates that who reporting to whom.

The traditional way to of the organization, this is organizing people by function.  Geographic organizational structure is typically found in companies with operation spread over a large region. This includes national and international office. It will have internal structure and management layers depending on each location. While matrix organizational structure combine two or more types of organizational structure usually is product organizational structure and functional organizational structure to create a unique blend of work environment. Product organizational structure is the departmentalization based on product and.

Employee work in difference unit where by each unit holds the responsibilities of producing the product or service. This structure also known as a division structure. Base on this organizational structure every product structure will lead by division. Each division will responsible for each product.

Functional Structure According to O’Toole

“The term organizational structure refers to how the people in an organization are grouped and to whom they report. One traditional way of organizing people is by function. Some common functions within an organization include production, marketing, human resources and accounting”. Base on this definition we can say that in functional structure employee are grouped together into department and hold similar position also perform similar task.

Example for this company has four main functions which are finance, human resource, manufacturing and engineering. Every department has a difference roles and responsibilities. Finance department focus on accounting and payroll, where by manufacturing can concentrate on execution in order to deliver a good result by divided into two main focus which is FOL and EOL. Both were lead by area manager to ensure the efficiency of the result. For engineering department also separate into two main focuses, they are test and equipment engineering. Each 2 function plays a role in order to achieve the company goal. Base on their expertise the result given will be very fast, efficiently and effectively.

Advantage of Functional Structure

The advantage of functional structure is employee can communicate and share information easily as they are grouping together according to similarities in their position. Beside that escalation process also can be done fast as and effectively. In terms of management, especially manager it easy for them to monitor subordinate performance. Another benefit of functional organization structure is coherent chain of command. For example, referring to above chart Account and payroll fall under purview of Finance department.

A clear chain of command is needed, this is because it creates standard operation procedures, besides established consequences also enhanced accountability. Another advantages of functional structure is it cans expedited decision making. This is because normally group decision making will slow down progress on project due to the diverse perspectives involved. But in this structure because people have similar professional and educational background the decision making process will be much easier. In addition functional structure also allows work to be done by qualified and skilled individual in the area concern. Hence, another advantage of this structure is that it reduces cost by reducing duplication and use of resource in the organization.

Disadvantage of Functional Structure

Functional structure also have disadvantage. The disadvantage of functional structure is because functional structure separate by function, as a result employee having a very little understanding or concern for other area instead of their own area. Because of this separation there is a barrier in communication and overall cooperation and coordination. Beside that in this structure individual focus is rather than a company focus.

Geographic Structure

Geographic structure often use by large company that operate in many area. The main function of this structure is to co-ordinate the work and employee from difference unit and responsible for conducting business in certain geographic locations. Each location will have its own internal structure and management layers, allowing them to run the operation. Below is geographic structure for Open University Malaysia. From the chart Open University Malaysia has divided the organizational base on geographic which is northern region, southern region, and central region, east coast and Sabah and Sarawak.

Each region will cover certain state in Malaysia. For Northern region it covered Perlis, Kedah, Pulau Pinang and Perak. For southern region represent Johor, Negeri Sembilan and Melaka. Kuala Lumpur and Selangor is in central region. For Kelantan, Terengganu and Pahang indicate as East Coast area. Last area is Sabah and Sarawak region that cover Sabah and Sarawak. Headquarters can easily monitor the performance of each area and might not need to go through every single state to check on the academic progress or activity happened at the particular centre. Open University Malaysia

Advantages of Geographic Structure

The advantages of geographic structure are cost saving. By locating resource close to customer it will help organization to reduce the cost such as travelling expenses. Using a geographic structure allows companies to use local, experienced individuals to run the company’s operation. This is the most beneficial in international locations, where companies need help transitioning their operations to specific international markets.

Disadvantages of Geographic Structure

There are some disadvantages of geographic structure such as companies may find it difficulties to run this because it does not allow for centralized decision making. Another disadvantage is that it creates duplication of work also the use of the organization’s resource. Hence, due to the geographical area that located far from each other it will create the difficulties in coordinating between departments in organization.

Matrix Structure

Matrix structure refers to a hybrid structure that combines two or more departmentalization together at one time to create a unique blend of work environment. Usually matrix structure is a combination of product and functional structure. This structure created when there is an assignment or project need to carry out. In this structure employee are reporting to two difference supervisor or manager. This is the differences of matrix structure from other structure. Example is several engineer might be hired carry forth a similar function by pooling in their expertise.

In addition, a single company producing two types of product with the same team in professional. For effective and smooth functioning, it is mandatory to share the information in matrix structure. Each project will have a project manager and difference team members will report to him. The matrix structure, if implemented effectively, may increase the ability to react the new customer demands. It also may potentially decrease lead times of new product. Usually employee involve in this structure have to report to 2 manager which is immediate manager and also project manager who is the person to monitor the progress of the project.

When work is accomplished, the project team may get dissolved, and the workers from different functional areas may get reassigned to other project and task. From the chart there is a project conduct by project manager from project department. To ensure this project success the project has involves staff from other functional structure such as finance, human resource, manufacturing and engineering. For this structure usually employee need to get agreement from immediate manager before they can proceed, this is because it will impact their regular job and employee also must has a strong commitment and dedicated to perform the task.

There is an opportunity for them to learn a new thing that not in their job scope. The staff involve in this project will report to 2 manager which is project manager and their immediate department manager. Progress of the project will monitor by project manager while their immediate manager play a role to encourage the employee to perform the task with professionally.

Advantages of Matrix Structure

The advantages of matrix structure are allowing the organization to effectively and efficiently manage the project that is large scale and complex. The specialized employee can be chosen base on the merit of their work and functions that they carry forth. Involving in this structure will give chance to employee to success because of the work load and a lot of difference thinking forces is working on the project and therefore the stress, authority and problem solving skill become stronger. Another advantage of this structure is a cost saving. This is because the people working in the project is hired as a part one team also work under other teams.

Meaning to say that the employee involve in the project will do the 2 difference job at one time. In addition this matrix structure will provide opportunity for both functional and product skill development. Thus it will reduce barriers between departments and increase the integration of functions.

Disadvantage of Matrix structure

Even though there are advantages of matrix structure, there is certain disadvantage as well. The disadvantages of this matrix structure are requiring higher level of management skill compare to other type of compartmentalization. It will impact the company in terms of increasing cost if there is a lot of project manager hired for the job. Another disadvantage of matrix structure is increased conflict levels. This structure also may cause participants to experience 7 dual authority, which can be confusing and frustrating. Very important in this structure is require participant to have a very good interpersonal skill.

Product Structure

Product structure define as an organization base on organizing employee and work in difference units, while each unit hold responsibility of producing a product or service. For example if company produce 4 difference products, there will have 4 difference divisions for these product. Below is a sample of product organization. In other words product structure divides the company into divisions that bring together those employee involved with a certain type of product or market service.

Referring to above chart from company XYZ can see that this company has produce 4 products which is beverage, ice cream, cereal and milk powder. For each product will have a difference division to control. Each division within a divisional structure contains all the necessary recourses and function within it.

Advantages of Product structure

The advantages of product structure is company has a better control for the product as each product has manage by difference division and each division can act as a separate profit centre. Hence, this structure also can create a positive competition between divisions.

As every unit own and produce a difference product it will allow manager and employee to expend their expertise and experience that are related to the overall activity of the product. Beside that these structures also allow management to evaluate the work performance of each division easily. Another advantage of this structure is, because of clear focus on market segment it help to meet customers’ needs.

Disadvantages of Product Structure

Product structure may also have some disadvantages. For example manager may only focus on their product to the exclusion of the rest of the organization. Due to each product having own functional area expert it may lead to increasing in cost. Beside that will have duplication in terms of process and material also will increase the company cost. Management may facing difficulties to coordinate across department also one of disadvantage of this structure.

Conclusion

In conclusion organization structure is important as it is a system that control and drive company performance to achieve goal. Difference structure has a difference functions, but the objective is the same which is to ensure company running with smooth and achieve the goal. Functional structure is a basic structure and it applies for all organization. It still relevant and can be use for any company and organization. Geographic structure is mostly use for multinational company which has many branches at other country. It also applicable for domestic company and organization such as Open University Malaysia. Matrix structure is a hybrid structure that required commitment and skill especially interpersonal skill to perform the task. For product structure basically is a organizing people base on the product.

Initially in 1984 a young person larning Centre was established in Greymouth under the administrative control of the Nelson Polytechnic to supply ACCESS classs on the West Coast. In 1987 the young person larning Centre was upgraded to a senior proficient division of the Greymouth High School and began to supply some mainstream programmes.

Finally, in October 1989, Polytechnic was gazetted and began a period of rapid growing with associated development of its ain individuality and installations. This development culminated in the gap of the current cardinal campus in Tainui Street, Greymouth in May 1991. This campus provides the degree of installations that could be expected in a third establishment, and at that place has been considerable committedness to its hereafter with the building of to the full equipped music studio, kitchen, and eating house, automotive and edifice workshops.

During 1990 six mainstream programmes were offered. Provision was expanded to 10 programmes in 1991, 13 in 1992 and 15 in 1993. Tai Poutini Polytechnic ‘s growing and development continued with 18 in 1995 and for the first clip two twelvemonth programmes were offered. In 2002, 28 mainstream programmes were offered. In footings of pupil Numberss, Ministry of Education EFTS has increased from 143 in 1991 to 2700 in 2003.

In 1995, Tai Poutini Polytechnic opened a campus in downtown Auckland for music and audio technology programmes. In 1998 Tai Poutini Polytechnic council endorsed the name of the Music and Audio Institute of New Zealand ( MAINZ ) , a division of Tai Poutini Polytechnic which refers to our music and audio technology programmes. In 2001 a determination was made to open a MAINZ campus in Christchurch and in February 2002 an extended recording studio and schoolroom installation in cardinal Christchurch, commenced offering programmes. In 2003 a Reefton campus was established with immediate end of supplying preparation in civil building, heavy works operation and the excavation industry. 2004 and 2005saw the gap of extra orbiter campuses on the West Coast, in Hokitika and Westport, both of which are strongly focused on run intoing the demands of their local communities.

Tai Poutini Polytechnic is committed to offering a broad scope of vocational programmes and niche programmes, particularly in the pre-employment and foundation country, but besides up to National Framework degree seven in some of our countries forte. Most pupils go on to farther survey at another establishment or to employment. The West Coast has one of the highest degrees of unemployment in the state. Coupled with a really low general degree of instruction in the part.

Tai Poutini Polytechnic has besides pursued national accreditation for its programmes and faculties, and has successfully gained local and National Qualifications Framework accreditation for virtually all mainstream programmes.

Business Demographics

In order to do an effectual communications amongst their 10 subdivisions a broad scope of communicating accomplishments is being used amongst Tai Poutini Polytechnic.

They use e-mails to chew the fat about their advancement or to any work related issues. This medium is really effectual in communicating. Another preferable method is through phone calls and texting. This medium of communicating is used when straight speaking to anyone with a really of import vision or to do people cognize about something by a text message. Courier packs is another manner of communications. This method is normally used to reassign paperss from one subdivision to another. This chiefly consists of heavy packages. Internet picture conferencing is used when all of a sudden any of import issues arises and people need to speak face to confront so this medium of communicating is used by Tai Poutini Polytechnic staffs. Conference class face to face. This is another really of import manner of communicating used by Tai Poutini Polytechnic staffs. This medium requires renting of airplane services to be at a really of import scene or meetings, which is conducted all of a sudden.

Organizational Goals

The organisational end of Tai Poutini Polytechnic is to back up pupils and staffs to work, larn, learn, develop and accomplish together in a positive, culturally inclusive environment. Tai Poutini Polytechnic will supply an authorising acquisition environment for the pupils to enable them to derive vocational instruction and applied accomplishments through a portfolio of programmes that are delivered locally and nationally in an efficient and effectual manner.

Tai Poutini Polytechnic ‘s function is to:

deliver vocational instruction that provides accomplishments for employment

assist patterned advance to higher degrees of acquisition or work through foundation instruction

undertake applied research as appropriate that supports vocational acquisition and engineering transportation

Tai Poutini Polytechnic:

believe all people have the right to the highest quality service based on honestness, gratitude, and listening in a non-judgmental environment

believe in the power of instruction

will transport out their responsibilities with the highest unity

are passionate about offering pupils choice instruction

strive to supply scholars with the cognition they need to accomplish their ends and dreams

supply the best possible service without fright or bias for all people

Organizational Culture and Ethical motives

Tai Poutini Polytechnic will be widely recognized for its alone topographic point in the national web of third proviso through its ability to react to learner demand by supplying high quality, relevant, cost effectual and advanced applied vocational instruction delivered through collaborative partnerships with our communities, other instruction organisations, industry organisations and other stakeholders.

Tai Poutini Polytechnic will supply high quality and relevant applied and vocational instruction to heighten our scholars ‘ hereafters to enable them to lend to the West Coast ‘s and New Zealand ‘s economic and societal development.

Tai Poutini Polytechnic believes:

instruction is a right

in a focal point on the pupil

the rules of the Treaty of Waitangi underpin what we do and how we do

we are antiphonal to the demands of our stakeholders

our Polytechnic is our people

in a dedication to service

in a spirit of regard

Ongoing communicating with: Clients: pupil and buying agents ( MoE, ITOs, Skill NZ, private contractors ) and Stakeholders.

Development and application of appropriate policies and processs in the Fieldss of:

Fiscal direction

Operational direction

Human Resources

Coverage demands

Resource planning

Academic direction

Management of all pupil -related affairs

Management of Knowledge resources

Tai Poutini Polytechnic ensures that cognition is shared within the organisation by:

extended preparation programmes

through refresher classs

through hebdomadal intelligence letters every Monday about what is go oning in each section in the state.

a sum-up of cross referencing is included. This shows the relationship between accreditation standards and Tai Poutini Polytechnic.

braces of tabular arraies are so given to provide information on how Tai Poutini Polytechnic meets accreditation standard and sub-criterion.

statements on Purpose, Procedures, Evidence, Responsibility, Implementation and last reappraisal

grounds in the system in usage by Tai Poutini Polytechnic including:

mentions to points of grounds such as completed signifiers, programs, memos, proceedingss, correspondence, studies etc

internal mention Numberss for points of grounds

descriptions and remarks associating to the points, typically depicting their intent and beginning. Where grounds is non available for the programme in inquiry ( e.g. because the programme is under development ) it is sourced from similar countries of proviso within the board of directors.

Locations of affiliated points of grounds. Most points are filed under appendix 3 and grouped in pockets associating to the lowest-numbered accreditation standards e.g. the pupils Information book contains grounds for standards 4,5,7, and 8, and is filed under Appendix 3 in the pocket incorporating grounds for standard 4.

Group Dynamics

Tai Poutini Polytechnic strongly believes in effectual communicating for squad support and handling of struggle. There is a dependable system for file awaying information on concluding pupil accomplishments to guarantee consistent pattern in the issue of consequences to pupils. There is besides a system for guaranting that appraisal is just, valid and consistent to avoid any misinterpretations or struggles.

The applier has policies in topographic point that guarantee that all staff responsible for preparation and appraisal maintains cognition of current industry tendencies and patterns.

Policies and processs province that where a appropriately qualified individual is non available that learning programmes will non continue.

An appropriate coverage and monitoring process is in topographic point, and assessment duties are clear

A transcript of memoranda of understanding to be supplied. As portion of the site visit an industry voucher will inspect such nominative premises for conformity

The applier has policies in topographic point that guarantee that all staff involved in preparation and appraisal have a making in grownup instruction, and to guarantee that staff involved measuring against Hospitality unit criterions have completed an assessor preparation class and gained recognition for unit criterions required for.

Evidence of audience with industry to verify current and future preparation and employment demand is submitted. Evidence is submitted bespeaking how industry is or will be involved in programme development and rating and how currency of industry patterns and tendencies will be maintained. An applicant intend to offer Hospitality programmes of one twelvemonth ‘s survey, or more will hold grounds of formalistic industry affair and advice. This may either be by an Advisory Committee, or other formal affair links

These are some of the many tactics used by Tai Poutini Polytechnic to guarantee that everything is running swimmingly from instructors, direction, and other staffs and pupils point of position.

Meeting Management

In order to guarantee that meetings are run efficaciously it should be noted that:

Meetings are merely held when necessary

Invite merely those who need to be at that place

Prepare and direct docket in progress

Lead the meeting

Document and follow upon meeting determinations and assignments

every programme is supported by sound certification.

Make appropriate referrals when necessary and rapidly react to crises state of affairss, which arise in the fold.

Construct a sense of teamwork and keep regular leader ‘s meetings to organize and ease communicating.

steer the leaders as they exercise their leading

oversee and promote congregational benevolence and mission through ongoing synod cal support and by run intoing community demands as they arise.

be expected to work towards agreed ends or marks and do such written and or verbal studies.

be expected to work towards the fulfilment of the vision and schemes

Theological instruction with experience and proved ministry effectivity is a demand.

Stakeholders

Stakeholder direction is an of import subject that successful people use to win support from others. It helps them to guarantee hat their undertakings win where others fail. Identify who your stakeholders are. The following measure is to work out their power, influence and involvement, so you know whom you focus on. Prioritize your stakeholders and understand your cardinal stakeholders.

For effectual communications with stakeholders Tai Poutini Polytechnic conducts meetings with caput of sections.

Have studies, proceedingss and record of the activities of the administration organic structure

Keep records and studies of audience e.g. with whanau communities, concern

Shares strategic and concern programs with grounds of the attack to run intoing identified demands and aspirations

Keep consequences of analysis of stakeholder feedback

Entry demands for class and programmes

Provide employer feedback on alumnuss

Feedback from alumnuss in employment

Learner achievement information ( trends over clip )

Learning tracts

Learner and staff sentiment

Surveies on support services

Learner finish informations

Networks

Other webs used with pupils who are visually impaired or have disfunction may utilize a assortment of methods to entree or synthesise class stuff. These include tape recording equipments, Dictaphone, lap top computing machines with address or big print readers, taped text editions, raised line documents, big print books and computerized bailers. Students who appear to hold light sensitiveness and trouble with print declaration may profit from a referral to an Irlen Screener.

Be verbally descriptive say for e.g. 70+9=79 instead than stating this figure + that figure = 79.

Non verbal communicating, ever place yourself when run intoing a pupil with ocular damage because they may non acknowledge who is talking, peculiarly if you are run intoing out of your normal context.

Indicate to the pupil that they are being addressed by utilizing their name, and express everything prescriptively and in item as the pupil may non be able to see non-verbal cues. If a pupil is unfamiliar with a new topographic point describe the environment utilizing specific phrases such as “ to the right ” or “ shaped like a rectangle ” When giving waies, indicate “ right ” or “ left ” “ up ” or “ down ” in relation to where the pupil is, or utilize the clock method, whereby three O ‘ clock means straight to his or her right.

Decision

It can be concluded that communicating is a critical portion of concern and in order for a concern to be successful they need to hold an effectual communicating with everybody who contributes in the concern some how or the other.

Tai Poutini Polytechnic believes “ Where there are other suppliers we do non seek to vie with them ; instead, we look to work in partnership in order to supply an appropriate stairway for their pupils. ” Remember the Association is run by pupils for pupils and your input is of import to us. As one I can travel a rock, together we can travel mountains. Above all please bask the installations and strive to make your ends.

Four functional managers of Zelte USA have expressed their concern on the attitude of their General Manager Hans Meindle, which they fear, will destroy the progress of the company. The importance of trust in stewardship of any organization is cited in this article critique and recommendations are made to rectify the situation. Article Critique Hans Meindle the General Manager of Zelte USA is perceived by people at all levels as an annoying person. His manners and business etiquette are reported incorrigible in every angle.

His lack of trust in people, meanness shown in office expenditure, partisan attitude, status consciousness as opposed to basic human courtesies, and above all compartmentalizing client accounts to his domain not allowing the functional heads to operate on, and similar behaviors have annoyed not only his immediate reporting officers of four functional areas, but also everyone in the organization. Office staffs see him as a person from a different ethnic background, and sometimes refer him as a German monarch.

Born a German, Meindle is a self made man, who has contributed to the company’s success. Particularly, he enjoys the trust of the company’s founder and Chairman Dr. Fischer. The four managers reporting to him are concerned about the company’s progress. They feel that Meindle must be relieve of his responsibilities as otherwise it would damage the company’s progress and also their individual career progression. Meindle has proved once his unethical approach of revising the price of items supplied to a valuable customer, who chose to withdraw the order. Dr.

Fischer had to fly down all the way from Germany to see that the orders were renewed. Zelte USA, although at present making only $10 million as compared to $350 million business of the parent company, the ten time progress rate it has achieved in about 13 years, gives good promise for a great growth. So, it is important for the Company to take appropriate action to improve the morale of the people, which is very low at the moment. As we go through the case, the only cause is Meindle’s approach to people working with him contributes to this low morale level.

The main issue is about the stewardship of Meindle, the General Manager. “Crucially, stewardship is not created through formal rules but rather is facilitated through organizational structures that help leaders to generate interpersonal and institutional trust, clarity regarding organizational strategy, and intrinsic motivation in followers, which, in turn, encourages followers to act with moral courage in service to the organization or cause.

”(Hernandez, M. 2008) It is therefore necessary for Zelte USA to attend to this issue with utmost concern, by bringing in structural interventions which will promote more transparency and understanding. The following recommendations are made: Hans Meindle needs good counseling by Dr. Fischer, who must be aware of the personality factors of Meindle. If necessary, he must be sent to a good training program with a reliable business school.

A person, who has learnt business management by experience, will understand the nuances of organizational behavior well through a business school program. Dr. Fischer should also sit with the four functional managers periodically in scheduled business meetings, in which Meindle should also be present. Initially, these meetings should be held once every month, if not once every fortnight. After a period of 12 months, this frequency can be reviewed and revised depending upon requirements.

The Organization should also go in for project teams and Project Managers for their expansion work in the United States, such teams reporting to Dr. Fischer. By these steps, the morale and trust level at Zelte USA will improve. The cost of training would be relatively negligible and it will be normally considered a business expenditure. Reference Hernandez, M (2008). Promoting Stewardship Behavior in Organizations: A Leadership Model. Journal of Business Ethics, 80(1), 121-128. Retrieved April 25, 2009, from ABI/INFORM Global database. (Document ID: 1475088611).

The matrix organizational structure relies on a coordination of efforts and the pooling of resources among various departments in an organization. Undoubtedly, this organizational structure requires all departmental members to be comfortable in their roles. Proctor & Gamble has its Research & Development European Headquarters in the United Kingdom. Here, “the local manager wears two hats – one for his product, one for his region (Martinsons, 1994).

”Such is the matrix structure, recognizing the truth that specialists working for various departments are the resources of the whole organization, and may be required for organisational projects that seemingly have nothing to do with the departments where the specialists were originally employed. Specialists that are chosen from their respective departments to work on projects related to other departments are the pooled resources of the concerned departments, and therefore answerable not only to the managers of their own departments but also to the project managers of the departments that have borrowed their expertise (Martinsons).

Thus, the matrix organizational structure “allows a company to address multiple business dimensions using multiple command structures (Sy & Cote, 2004). ”  Gone are the simple “command and control” days – welcome project management (Pasternack & Viscio, 1998)! Matrix management augments the need for linking all departments within the organisation via computer technology. Thus, this modern form of management and its corresponding organisational structure ease communications within the company.

Moreover, the matrix structure requires the Human Resources function, like computer technology, to be used by all departments in a unique way, that is, by requiring the Human Resources employees to report not only to their functional head but also to the business departments that they have been assigned for support (Numerof & Abrams, 2002). Experts believe that this dual reporting may appear “overly complex and cumbersome” at times, overwhelming the managers with “conflicting goals (Kearney, 2003).

” All the same, CEOs continue to prefer the matrix structure over other forms of management because the matrix, when “properly implemented and managed,” is truly “a powerful tool that can actually help facilitate operations (Kearney). ” Overview of the Implementation Requirements Yet another unique feature of the matrix structure is that it helps the departments within the organisation to maintain mutual goals. The benefits of team building may easily apply to matrix structures when properly used.

Experts advise that matrix structures must be implemented with a focus on their strengths, while the weaknesses of the matrix must be managed. The fact that the benefits of team management may apply to the matrix structure is a strength of the matrix. At the same time, managers might have to deal with “conflicting goals” in the matrix organisation, and such conflicts ask for proper attention from the upper management of the organisation, which must find it possible to use the matrix despite the problems that it poses (Kearney).

In the perspective of the upper management, “the goals of one unit will always reinforce those of other units (Kearney). ”  So, when functional managers or product managers disagree about the goals, the conflict must be managed so as to ensure the continuance of the matrix structure (Kearney). Indeed, the matrix calls for a high degree of cooperation and coordination within the organisation. Despite “confusion over responsibilities” that might appear from time to time, it is the responsibility of the upper management to ensure continuity of the matrix (Kearney).

Additionally, the organisation is advised by experts to use the following techniques to overcome the challenges of the matrix:Clearly define and redefine the expectations to the employees; Provide ongoing training for working through the matrix; and  Institute “formal job rotation to broaden employees skills, perspectives and appreciation for other parts of the business (Kearney). ” Sy & Cote state that matrix management is intricately connected with the emotional intelligence of the organisation and its employees.

Given that the modern matrix calls for unity among employees and departments in the realization of organisational goals, matrix performance may also lead the organisation as a whole to increase its emotional intelligence. Provided that the matrix is managed properly, and the upper management is sufficiently involved in its maintenance, an increase in emotional intelligence would also help the organisation connect better with its customers and other stakeholders.

Performance evaluation, for organizations, has become the bases from which certain human resources or management decisions are made regarding an employee. Oftentimes, the greater use for this is the motivation and recognition of notable performances and as a means of obtaining a feedback regarding the achievement of the goals of the company. From personal observation, managers or supervisors are giving emphasis on the behavior of employees towards work and success in terms of the completion of tasks.

The behavior includes that of a positive attitude towards work, helpfulness in assisting other employees in work, and a healthy social relationship. In terms of work, the employee exhibits the quality of being able to complete task without control, dependability such that failure to meet work commitments is very low or is not present, and that the time and resources used are at the most efficient level that could be achieved. Managers are given the leeway to recognize behaviors such as these in relation to the needs of the individual.

In this case, it means a greater p of control over work to enhance the creativity of the individual and intrinsic rewards such as the recognition of efforts and the provision of recognition where people could hear and see it. As a result, the individual is given the chance to be placed above the rest. In the workplace, there is often a blurring of efforts especially in terms of quantity and quality. To be placed and picked as among the best performers is commensurate to being seen as among the best. Likewise, this leads to an increase in the performance of the employee and the boost in the morale.

For the rest of the employees, it serves as an example from which the capability of the organization to recognize and reward the efforts accordingly is shown.

Job Design and Reinforcement Theory

Hovey and Beard Company Upon a reading of the case, it is seen that the principles of job design and reinforcement theory is related to the performance problems at the Hovey and Beard Company. Job design is defined as the initial and subsequent actions of the management in creating jobs within the organization to accomplish certain tasks (Ivancevich, Konopaske, & Matteson, 2008).

Among its goals include assessing and enumerating the needs of the employees and the organization and the elimination of barriers within the workplace that impedes the fulfillment of these needs (Ivancevich, Konopaske, & Matteson, 2008). Putting this in the context of the performance problems stated in the case study, it is shown that the jobs of the painters are created scientifically that it forgot to incorporate the human aspect and there is a need to revise it. The management is given the leeway to incorporate elements that are intended for profit alone.

On the other hand, the reinforcement theory shows that actions that are given corresponding responses, whether negative or positive, are either increased or decreased. In the case, the management is encouraged to provide the workers with their needs as performance increased and the painters reciprocated the fulfillment of their needs with good performance.

Analysis Using the Performance Diagnosis Model

Using the performance diagnosis model, the experience of the Hovey and Beard Company could be analyzed. It is seen that both the painters and the management agrees that there is a problem and it is seen to stem from inadequate motivation. With the changes that are brought about by the technological changes, there are misunderstandings and unrealistic expectations that occur between the painter and the management. The painters expect that their working conditions are to be taken into account but this is not addressed initially.

References

1. Ivancevich, J. , Konopaske, R. , & Matteson, M. (2008). Organizational behavior and management. New York: McGraw-Hill Irwin.

Understand the relationship between organisational structure and culture

1.1 compare and contrast different organizational structures and culture The learner’s evidence shows, for example:
Demonstrate basic understanding of theories.

Compare and contrast different organizational structures and culture.

1.2 explain how the relationship between and organisation’s structure and culture can impact on the performance of the business Explain the relationship between organisation’s structure and culture. Describe the impact on the performance of the business for different structure and culture. 1b

1.3 discuss the factors which influence individual behaviour at work Identify relevant theories and discuss factors influencing individual behavior at work.

LO2 Understand different approaches to management and leadership:

2.1 compare the effectiveness of different leadership styles in different organisations Explain various leadership theories and concepts.

Using the identified organizations, compare the effectiveness of different leadership styles.

2.2 explain how organizational theory underpins the practice of management Identify and explain organizational theories.

Explain how these theories underpins the practice of management. 2b

2.3 evaluate the different approached to management used by different organizations Evaluate and compare different approaches to management using the chosen organisations 2c

LO3 Understand ways of using motivational theories in organisations: 3.1 discuss the impact that different leadership styles may have on motivation organisations in periods of change Explain various kind of motivation
theories and concepts.

Discuss the impact on motivation in selected organization due to different leadership styles.

3.2 compare the application of different motivational theories within the workplace Explain and discuss the application of different motivational theories.

3.3 evaluate the usefulness of a motivation theory for managers Discuss and evaluate the usefulness of various motivation theories for managers.

LO4 Understand mechanisms for developing effective teamwork in organisations:

4.1 explain the nature of groups and group behaviour within organisations Demonstrate understanding of the theories and techniques in developing effective teams. Explain different group behavior within the chosen organizations.

4.2 discuss factors that may promote or inhibit the development of effective teamwork in organisations Discuss factors that promote or inhibit the development of effective teamwork within the chosen organizations.

4.3 evaluate the impact of technology on team functioning within a given organisation. Evaluate the impact of technology on team functioning within the chosen organizations.

1. Introduction
The purpose of this assignment is to explore organizational structure and culture, examine different approaches to management and leadership and theories of organization, examine the relationship between motivational theories and demonstrate an understanding of working with others, teamwork, groups and group dynamics.

2. Understand the Relationship between Organizational structure and culture 2.1 Compare and contrast different organisational structures and culture. Use organisations you identified as examples to justify your answers Waterman (1996) defines an organization as: “Organisation exists for only one purpose: to help people reach ends together that they could not achieve individually.” There are four main types of organizational structures in common use today: Functional-based structure, Product-based structure, Geography-based structure and Matrix structure. First of all, we use my existing working company which is one of Top 10 global pharmaceutical companies Eli Lilly Hong Kong Branch as an example of Functional-based structure:

As shown in above organizational chart, Eli Lilly Hong Kong Branch allows individuals to be grouped together on the basis of their specialism and
expertise. Each individual department can work individually under specific expertise. However, it is difficult to remove individuals from the original department. The overall effectiveness will be affected. Another organizational structure is called Product-based structure. We used another pharmaceutical company Merck Sharp & Dohme Hong Kong (MSD) as an example of Product-based structure:

As shown on the above organizational chart, MSD has its different catergories of product pipelines for different market and customer needs. The biggest advantage of Product-based structure is to specialize and focus on individual market for individual customers. Like MSD example, for Business Unit Product X, it can specialize drugs for primary care and Business Unit Product Y for Secondary treatment use.. Nowadays, Geographical-based structure is commonly use in larger organization such as global companies. One of Top 10 pharmaceutical companies Eli Lilly can be used as example:

As one of the global pharmaceutical companies, Eli Lilly is typically implementing a Geographical-based structure. The advantage of this structure enhanced quicker decision making and faster responsiveness to the local market and enhanced customer understandings with the common language make sure the organization can “Think globally but act locally”. The last one is Matrix organizational structure, TVB can be used as example: Matrix structure is an organization which put different specialties together to achieve a task or project within a fixed period. The advantages are high organizational flexibility, challenges and development of people, motivates people for end product and allowing movement. The disadvantages are encourage of political struggle, require high interpersonal skills, duplication of work and may be de-motivation of work. 2.2 Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business. Organisational structure and culture are critically important to organizations that it can impact on the performance of the organization’s business. Effective organisation structure can make company performing well. However, structural deficiencies result in bad consequences such as low motivation and morale, late decision, conflict of co-ordination and rising cost. Below is an example of Eli Lilly Hong Kong
from my real experience:

Eli Lilly Hong Kong Branch has a Flat Hierarchies rather than a Tall Hierarchies. The major advantage is lower overheads because of limited managerial level. But the disadvantages are limited opportunities for career development, difficult to supervise and poor communication between managements and frontlines due to high p of control especially in sales department. Apart from Eli Lilly Hong Kong’s organizational structure, the particular culture is another critical factor which impact on the performance of business. Basically, there are four types of commonly culture, power culture, role culture, task culture and person culture. Eli Lilly Hong Kong is basically divided itself into a series of functional layer such as functions, rules, job description, hierarchy, supervision and bureaucracy. The internal relationships between roles are set up by job description guidelines called The Red Book. Under this type of culture, the position is power. That means individuals easily to replace and has limitation on career development. Furthermore, Eli Lilly’s has its own core value, i.e. Integrity, Excellence and Respect for People. It reflects the founder’s philosophy. After selection criteria, top management’s promotion and socialization to the firm’s core values, belief and norms, then finally reinforce outcomes. 2.3 Discuss the factors which influence individual behavior at work. For any organization, it is important to realize the factors which influence individual behaviors at work like turnover and absent among staff, change of job features, workplace design, the development of kills and attitude, working attitude, time management in the work place, etc. There are a lot of concepts and theory about the factors influencing individual behavior at work including positive and negative reinforcement, punishment, The Phenomenological approach, perception, the nature of individual difference, personality, traits and types (Extrovert and introvert, neuroticism, conscientiousness, agreeableness, openness to experience), self and self-image, etc. Perception is actually one of key factors which influence individual behavior at work. Managers always perceive the behavior or personality of subordinates. So the best thing to do for a manager is to avoid developed any biased or distorted views. It is because it will eventually affect the
relationship between managers and subordinates. The nature of individual differences critically affects the individual behavior at work. Individuals have variations on physical difference such as hearing, seeing, smelling, etc. Different physical ability directly affects individual behavior at work. For example, a wine taster needs good smelling, a pop-singer needs good hearing and musical reaction. Personality as well as the traits and type can determine an individual which type of work or organizations should be more suitable and effective at work. H.J. and M.J.Eysenck (1985) have identified five key personality factors that are Extroversion and Introversion, Neuroticism, Conscientiousness, Agreeableness, Openness to experience. Extrovert person should be more suitable to a sales role rather than introvert person. In contrast, office-based job should be suitable to an introvert person. All above factors can influence individual behavior at work. 3. Understand Different Approaches to Management and Leadership 3.1 Compare the effectiveness of different leadership styles adopted in different organisations, using the organisations identified as examples. Nowadays, the leadership and management styles became more and more important in 21th century. This part we are going to compare the effectiveness of different leadership styles in some identified organizations. The first one is the scientific management. The typical example is Mcdonald. Mcdonald use scientific management concept to divided its labours into different part and work through standardize process to achieve a task, e.g. Hamburger making process. However, it neglects the subjective side of work, the psychological needs, job satisfaction and recognition. The classical management style promotes a militaristic organization. It makes the staff working under stress environment. It is also based on unreliable personal experience. The interaction of people becomes worse. Also, the management misunderstand people’s thinking and conflict of interest. The benefits of Bureaucratic management style are focus on economic and labour market. It also makes people more specialized and organized in modern societies. However, rules influence the acceptance of performance and minimize people’s decision contributions. Human relatioln management style is more focus on people relation. It encourage working as a team and the considerate culture but management with over concentrate on people will result in negative effect, Finally, the
contingency management makes the organization in any specific case depends on the circumstance at an appropriate time.

3.2 Explain how organisational theory underpins the practice of management. There are various organizational theories that would underpin the practice of management. Henry Mintzberg divided managerial role into 3 specific areas which are interpersonal role, information role and decision role. Managements who have strong interpersonal skills and relationship such as coaching and face to face communication with both internal and external customers is critically important. Information role in today’s business world is also essential as management have to analyze process and make use of information to enhance the companies a competitive role in the market. Last but not least, the decision role, management has to make different kind of decision such as strategic, periodic control and short term operation control decisions in the planning process with SMART criteria’s. Furthermore, Weber defines POWER as “the probability that one actor within a social relationship will be in a position to carry out his own will despite resistance.” So theories of power including personal power, legitimate power, expert power and political power influence the practice of management. Finally, delegation is a key success factor which can underpins the practice of management. Managers who are lack of time, skills or knowledge can make use of delegation to achieve specific task. Delegation is also one of development skills for management. 3.3 Evaluate the different approaches to management used by different organisations you have chosen. Henri Fayol (1916) defined management as: “To manage is to forecast and plan, to organize, to command, to co-ordinate and to control.” There are many different types of management style including scientific management, the classical approach, Bureaucracy, the human relations approach, the systems approach and the contingency approach. The scientific management was developed by Frederick Winslow Taylor (1856-1917). It is actually a one right way management style. The manager directly tells the workers what to do and supervises them. However, it doesn’t work in today’s business world because of new concepts development such as ownership, respect for people, open discussion, etc. So Henry Ford modified the scientific management in a way that remove waste and efficiency and then develop into today’s six sigma
concept. The classical approach is similar to scientific management but it was modified by Henri Fayol (1841-1925) to six common managerial activities, forecasting, planning, organizing, commanding, coordinating, controlling, commonly use in today’s business world. Bureaucracy is one of management style. Max Weber said that Bureaucracy has six characteristics, job specialization, authority hierarchy, formal rules and regulations, impersonality, formal selection and career orientation. Apart from the rational approach, the human relations approach was developed due to attention of human behaviors and motivations. The focus of this approach is to put more effort on the social relationship of the organization, not just the profit and loss of the organization. Then the combination of scientific management and the human relationship approach is the system approach. Finally, the contingency approach which is depends on the circumstances of the organizations. It depends on five key circumstances, technology, environment, size of organization., diversification and internationalization. The example of Eli Lilly Hong Kong has applied both rational and non-rational approach of leadership style such as Six Sigma Project, “Respect for people” culture, VEEVA report system (Customer call plan), Task Force Team and projects, etc within the organization. 4. Understand Ways of Using Motivational Theories in Organisations 4.1 Discuss the impact that different leadership styles may have on motivation in organisations in periods of change. There are a number of leadership styles including Autocratic, Democratic, Paternalistic and Laissez-faire leadership style. Autocratic leadership style means the leader makes decision alone and the staff just follows and completes the task. Example is the police force. This type of leadership will resulted in little cohesion and low motivation. Democratic leadership style encourages sub-ordinates to participate in decision making. It can be persuasive or consultative. Persuasive leader makes the decision alone and then he will persuade subordinates to obey his decision. Consultative leader let everyone participate in decision making, consults the ideas and opinions and then make final decision. Today more and more global business companies are using this type of management. Eli Lilly Hong Kong is one of an example which is applied both persuasive and consultative leadership style in management.

Democratic leadership improves communication, making more staff engagement, higher motivation than Autocratic and committed. Paternalistic leadership style is quite similar as Autocratic leadership but a Paternalistic leader is more focus on the welfare to his staff or sub-ordinates. A typical example is Singapore government which has good welfare system but limited in speech freedom. The last one is the Laissez-faire leadership style is the leadership give a freehand to staff with few guidelines and directions. The staff can work in a freedom and relax environment. The disadvantage is lack of motivation and direction, especially for some new or junior staff, can’t learn from the leader and eventually lead to poor productivity and performance. 4.2 Compare the application of different motivational theories within the workplace. The motivation theory can be examined to two main types of theories within the workplace: Content theories and Process theories.

The content theories include theories by Maslow, Herzberg, McGregor and MacClelland. The process theories include the theories of equity, reinforcement and expectancy. Maslow’s theory indicated that individual needs are divided into five level of hierarchy: Self-actualization needs, Esteem needs, Social/Affiliation needs, safety/security needs and physiological needs.

One of five needs has been satisfied then another one will be motivator. McClelland theory believed that people are looking for something from their work. So McClelland developed people’s need into 3 main areas: Need for achievement, Need for affiliation and Need for power (personal and institutional) which is called McClelland’s Acquired-Needs theory. Then we go through the Process theories including equity, reinforcement and expectancy theories. People will consider the equity or inequity of their situation by using outcomes and inputs such as pay, benefits, working hours, effort, pressure, etc to make the judgments. People also are motivated or de-motivated by rewards and punishment according to four types of reinforcements: positive, negative, extinction and punishment. Finally, Vroom’s expectance theory believed that the motivations are produced by expectancy (the belief that effort can affect performance), instruct mentality (the belief that performance will be awarded) and Valency (the perceived value of the expected rewards).

4.3 Evaluate the usefulness of a motivation theory for managers with the organisations you identified. According to the above motivation theories, we know that the rationale behind the motivation theories. However, the most important thing is how to turn it into effective ways of motivations, financial and non-financial methods of motivations. Below example is from my real experience: My Sales Director always promotes the job enlargement and job enrichment theories to all sales team members. He encourage sales person to do other department’s role such as medical, HR, training, marketing etc for the purpose that everyone can develop himself while responsible for many different aspects. In order to build the rapport, better understand sales team’s needs and clearly communicate the expectation and objectives, Sales Director arrange a breakfast session with individuals every Friday. He introduces and enforces norms of behavior and rewards update to sales person. He focuses more on both monetary and non-monetary rewards, especially focusing on the personal development and career pathway. For the purpose of job enlargement and job enrichment, Sales Director encourage senior sales person or managers responsible for more task, for example, STA (Short Term Assignment) like sales training workshop. Through the sales training, the individuals can show the potential of personal growth, achievement and recognition to management teams.

Besides, a lot of team building activities such as celebration dinners, recognition dinners has been launched to manage and maintain good relationship and communication with sales team members. There are a lot of advantages regarding above examples. It can attract and retain sales person in a “bright prospect” way through the job enrichment ways. Also, it can develop more capable person for other departments, e.g. training, medical, and marketing. However, individuals who want to be a “Happy Salesman”, is difficult to motivate by this kind of method. 5. Understand Mechanisms for Developing Effective Teamwork in Organisations. 5.1 Explain the nature of groups and group behavior within organisations you identified. Basically, there are two different groups, formal and informal groups. Formal groups are groups in an organization which have been created to accomplish the organization aims and goals. These formal groups are aim to complete a special task, brainstorm ideas, further communication and liaising between group members. It always has formal structure; task oriented and tended to be permanent. An example of formal groups in Eli Lilly Hog Kong is Incentive Task Force which is created for the planning of incentive scheme for an organization. Informal groups are groups which have been created by more on personal relationships.

It can have positive or negative impact on employees. Informal group also can maintain and straighten the norms, help members to improve communication and solve problems. An example of informal group in Eli Lilly Hong Kong is a group which is created for the purpose of wine tasting. An organization uses groups for different purpose such as the distribution of work, the management and control of work, problem solving and decision making, information processing, co-ordination and liaison, increase commitment and improvement, negotiation and conflict solution and testing and ratifying ideas. Effective groups basically have aim and objective sharing, sense of commitment, low turnover rate, acceptance of group values and norms, feeling of mutual trust and dependency, etc. Basically, there are five stage of group’s development from start to final stage, that is forming, storming, norming, performing and adjourning. Organizations try to be made a group which will be effective and good collaboration. Group members, group task and group development. Continue to use The incentive task force in Eli Lilly Hong Kong to elaborate the theory. The selection of the group members in Incentive Task force is really important.

This group actually needs different members on expertise in incentive calculation or create professional excel file, familiar with other companies incentive scheme, breakthrough ideas and logical thinking, familiar with sales team operation and objective and most important is a person who know how to set up a motivate incentive for sales team. 5.2 Discuss factors that may promote or inhibit the development of effective teamwork in organisations you identified. There are a lot of factors including team purpose, team member’s selection, team roles, stage in team development, team identity and loyalty, team dynamics and team norms that may promote or inhibit the development of effective teamwork in organization. First of all, clear team purpose and the selection of team members are really important. As the example in Task 5.1, my company set up a Incentive Task Force Team for the purpose of evaluation and setting of incentive scheme for sales team. This is a typical example of a problem-solving team which only set up for a specific problem or task. In this case we can’t create a management team or a work team for this purpose. After that the team will be disbanded at the end.

The selection of team members and team role are also critical in the effective teamwork. Incentive Task Force needs someone who has specific ability or traits to work together. For example, individual who familiar with internal and external incentive, individuals can have better knowledge on incentive calculation, individuals can know the salesman’s behavior, etc. Similar as group development, there are four stages in team development including Forming, Storming, Norming and performing. For the purpose of team identity and cohesiveness, Incentive Task Force team proposed a team reward which is rated by all sales people. Within the team, the team leader also organized team dinner sponsored by company to develop more interpersonal interactions. In order to make sure the team members get into the team, team leader presented next year incentive comparison benefited from the new scheme. There will be resulted in more participation and understand the common goals. 5.3 Evaluate the impact of technology on team functioning within the selected organisations. Team building and functioning makes people better work together but time and quality is the critical factors for the team decision making. There are a lot of impact of technology like virtual team, virtual working and virtual communication on team functioning commonly today. Refer to the example in Unit 2.1, Eli Lilly Hong Kong is a typical example of geographical-based structure with six Asia country office under a Asia Director’s management.

The Asia Director may visit Hong Kong office quarterly, not very often. So the teleconference or virtual conference or e-conference is an effective ways to enhance the communication between Hong Kong office and Asia Director. This type of technology is much better than communication through email in order to ignore misunderstanding of email wording. It can also ensure the Asia Director and other staff mobile and flexible working. Another example from Eli Lilly Hong Kong is the function and design of mobile office in Hong Kong office. Eli Lilly Hong Kong utilizes the technology to make the office as a location-response mobile environment. Except General Manager and directors, all staff have no fixed rooms, tables, computer and even stationeries. All staff works in different area every day. The better communication can be developed with the help of mobile office system. The use of I-Pad is another impact of technology within sales department. Nowadays, every sales representative in Eli Lilly Hong Kong has their own I-Pad. The best thing is all sales people can access email in the field which can enhance the communication between external customer and internal customers. Eventually benefit the competitive advantage in business. 6. Conclusion

This assignment has completed and achieved the criteria of four tasks in organizational and behavior regarding to explore organisational structure and culture, examine different approaches to management and leadership and theories of organization, examine the relationship between motivational theories and demonstrate an understanding of working with others, teamwork, groups and group dynamics.

An Analysis of the Organizational Behavior of General Motors

Introduction

            General Motors Corporation is the world’s largest automaker company founded in 1908 which employs about 326,999 people around the world with its headquarters in Detroit, Michigan, USA. Founded in Flint, Michigan as a holding company for Buick, then controlled by William C. Durant and acquired Oldsmobile later that year. The following year, Durant brought in Cadillac, Elmore and Oakland. In 1909, General Motors acquired the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessor of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. Durant lost control of GM in 1910 to the company’s bankers, because of the large amount of debt taken on in its acquisitions.

            GM holds the biggest share in GM Daewoo Auto & Technology Co. of South Korea and has product, powertrain and purchasing collaborations with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. The company also has advanced technology partnership with Toyota Motor Corporation of Japan, DaimlerChrysler AG and BMW AG of Germany, and vehicle manufacturing ventures with several automakers around the world, including Toyota, Suzuki, Shanghai Automotive Industry Corporation of China, AVTOVAZ of Russia and Renault SA of France.

Management Skills

            Research on what managers do show that they fulfill interpersonal, informational, and decisional roles. Important activities include routine communication, traditional management, networking, and human resource management. Managers pursue agendas through networking and use instinct to vary across cultures. A good grasp of organizational behavior is essential for effective management (Kuman 1997, p.53).

            Henry Mintzberg, a Canadian management theorist, carried out an in-depth study of the behavior of several managers. He learned a complex set of roles being played by the managers. From his study, he found out that managers are figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator, and negotiator.

            After studying the behavior of a large number of managers in a variety of different kinds of organizations, the researchers indicated that the managers engaged in four basis types of activities: routine communication, traditional management, networking, and human resource management (Kuman 1997 p54).

            Alfred P. Sloan, the man who led General Motors for more than a quarter of the 20th century, invented new ways of managing a complex worldwide organization while paying special attention to consumer demands. Car buyers no longer wanted the cheapest and most basic model; they wanted style, power, and prestige, which GM offered them.

Individual Behavior and Behavior Modification

            The term social invention conveys the gathering of people as oppose to other things. Many companies rank building and sustaining a team-based organization as their primary concern. By allowing a group of people to get together and interact within their own perimeters, the company has actually shown that their employees are just as important as the company itself (Robbins 1984, p.4)).

            Understanding people is one of the most difficult parts of being involved in an organization. People act differently in every way possible. People think differently, act differently, and react differently. The field of organizational behavior is all about understanding people. Putting it the other way, in order to be able to manage people well they have to be understood (Robbins 1984).

            Demographic and social chance have created “the realities of today”. In the past decade, the minority population in America grew very rapidly, especially in California. As the second millennium approach, the employment of minority has increased. In today’s varied labor market, employers that want to attract the best people have to recognize that many of those people are women, and many more are from a greater variety of ethnic and religious backgrounds than in the past. By tapping into these people, a business can create a workforce that brings new perspectives to the job (Tomer 1998, p. 825).

Group effort is the backbone of an organization. Without group effort, it will make accomplishing a goal even harder. By having people join forces and work together, the goal is easier to accomplish. Any sports organizations require teamwork in order to get their goal accomplished. By working together, their goal is to defeat the other team (Podsakoff 1997).

            Organizational behavior success or failure depends on its goal setting, such as group cohesiveness and productivity.

            Based on the traditional approach to management, Picken and Dess pioneered the contemporary approach to management. The traditional method of strategic control concentrated of measurement and assessment of performance. This was the way managers formerly approached strategic control over their company. Picken and Dess proposed this process as follows: (1) strategies are formed and top management makes goals, (2) strategies are then implemented, and performance is measured against the predetermined goals (Figure 1.3) (1997). Control is based on a feedback loop from the results.

Moreover, Picken and Dess also initiated their version of the contemporary approach to strategic control (Figure 1.4) (1997).

One other contributor to the development of the classical view was Max Weber (1864 – 1920). Weber was a German social theorist, as well as, a practicing manager who made the idea of bureaucracy famous in management principles. Weber was in the midst of nepotism and favoritism in family – based businesses. He believed this should not be included in basic management practices, and should be more based on rational authority.

Rationality meant carefully selecting workers for their skills, and advancement rooted on competence. According to Weber, these are the following criteria for bureaucracy (Johns 1996):

·         A strict chain of command in which each member reports to only a single superior.

·         Criteria for selection and promotion based on impersonal technical skills rather than nepotism and favoritism.

·         A set of detailed rule, regulations, and procedures ensuring that the job gets done regardless of who the specific worker is.

·         The use of strict specialization to match duties with technical competence.

·         The centralization of power at the top of the organization.

Communication

Open communication has become the most important factors in choosing the jobs today (Jacob 1985). It is ranked above the salary or company size. Communication is an important topic in organizational behavior. These concepts are not really new but some managers still do not understand it. Without sharing the same information management has access to, employees can not make or understand decisions. Employer should communicate with their employees to help employees comprehend what is happening in the company and care about the success of their organization. These will reduce employee turnover, improved performance and improved employee moral.

This holds true not only at GM but in every company. It is important that a good flow of communication is respected so as to achieve the goals of the company successfully.

Job Satisfaction at GM

            A company can invest millions in technology and facilities, but much of these will be meaningless if the employees are not satisfied. GM is one company which understands that “engaged, enthusiastic, motivated employees are the key to business success” (GM website). The company has a so-called Employee Enthusiasm Strategy program which focuses on engaging employees with positive leadership behavior and effective management strategies.      In 2000, GM launched its first global employee census and 40 percent of its employees actually participated.   In 2004, the company’s aim is for more teams around the globe to come up with action plans to improve employee satisfaction for improvement based on the census results.

Perception

            People have to develop an effective strategy. Organizations are especially concerned with “why people are more or less motivated, satisfied, or prove to resign” (Wilson 1994). “When motivating employees to change their behavior remember that positive consequences to any behavior, and negative consequences to any behavior are likely to diminish it” (Wilson 1994). This means that the consequences must be perceived as positive or negative from their points of view. Too often, supervisors implement consequences that are positive or negative from their points of view and then wonder why the behavior change did not take place. The primary concern should be on how to motivate employees to follow rules in such a polite way.

            The ability to understand behavior is a necessary prerequisite for effectively managing a particular company. There are two kinds of reinforcement, positive and negative. “Positive reinforcement causes a behavior to increase because a desired, meaningful consequences follows the behavior. Negative reinforcement causes a behavior to increase in order to escape or avoid some unpleasant consequence” (Daniels 1994).

            A manager needs to be able to get things accomplished, reach all goals, take control, and knows everything that is going on in their company. There are many other varieties of management styles that may be considered effective depending on the situation at hand. There are some cases when a manager acts without investigation, just looking for that quick solution to solve a problem which often results in an unhappy ending. This must be avoided at all times since it will not do the company any good than it is.

            If an organizational behavior “Can be predicted and explained, it can often be controlled or managed” (Johns 1996, p. 43). A great manager would be able to predict a certain behavior and have an act on it before it’s too late. Remember, our lives would be more easier if we anticipate when our friends are anger, what our professors expect out of us, and whose lying and telling the truth, “Regardless of who we are our actions are in response to a variety of motivations” (Wilson 1994). When one understands, one will understand human behavior. Use the predicting. Explaining, and managing principles, and any manger will have the ability to reach your goals through the efforts of others.

Motivation

            When people join an organization, their purpose is usually to accomplish a certain goal. The goal of many high school organizations is to perform community service. The goal of many large rival companies such as NBC and ABC is to achieve high ratings. No matter how big or small a company is, there is always a goal to be accomplished. It has been said that the key to accomplishing a goal successfully is hard word and determination. Of course it requires more than just hard work and determination to make a goal possible. It usually varies by the people in the organizations.

            A Company can not grow effectively with strong specialization. This will be good for robotics and automation in the assembly line, but not with human. Employees must understand the goals and purpose in relation to the clients, so that diversity and changes can be employed effectively to meet the needs of the clients. Some Japanese companies and its management team even rotated their employees from one job function to another and from department to department. This method allows the employees to understand the entire process from standard procedures to client and departmental needs and wants (Human Relations Movement 1999).

Ultimately, the human factor in any organization is essential for growth and achievement of that next level. But the problems in many of these bureaucratic organizations have escalated to a level where groups and movements are calling for change. Hopefully, one day we will even see apparent changes in our Department of Motor Vehicles (DMV).

Group Behavior

            The field of most organizational behavior has an amount of common goals. In order to reach these goals, people need to effectively predict, explain, and manage the behavior that occurs in our organizations. In order to change behavior, one needs to accept that any behavior is rational and logical to the person exhibiting it because his or her goals may differ from others. If an organization is able to predict which reward systems is most effective in motivating the employees, then one can explain the reasons for this effectiveness and describe how managers can enforce effective reward systems.

            Compared to the traditional approach, the contemporary approach involved two different types of strategic control: behavioral and informational. Behavioral control is defined by focusing on “doing things right” effectively manipulating the key “levers” of culture, rewards and boundaries (Picken and Dess 1997). Informational control deals with external part of control in the company. This type of control also dealt with the assumptions and premises that provide the foundation for an organization’s strategy (Picken Dess 1997). The main difference between the traditional and contemporary approach is that in the contemporary approach, there is an “ongoing process of organizational learning continuously updates and challenges” the culture and standards of the company (Picken and Dess 1997). The classical perspective still lives today.

Picken and Dess proposed this process as follows: (1) strategies are formed and top management makes goals, (2) strategies are then implemented, and performance is measured against the predetermined goals (Figure 1.3) (1997). Control is based on a feedback loop from the results.

Picken and Dess also developed their version of the contemporary approach to strategic control (Figure 1.4) (1997)

Managing Workforce Diversity

            Diversity is another aspect which managers in companies like GM must takea closer look. Diversity of age, for one, is having an influence in organizations. This is predominantly true of the most rapidly growing segment of California’s work force: employees of various ages working in the company. The rapid promotion of young technical experts in jobs has increased (Digh 1999).

Diversity of various groups has likewise grown. When before, women had fewer promotion opportunities than men, now, this has been proven false. The number of women holds important position in the company has tremendously increased (Digh 1999). This is also the case now with General Motors as the company is not only an exclusive company for men but employs women in its workforce as well.

By placing importance to diversity, companies can adjust to these changes in a way that can make the best benefit for the company. The managers must manage it effectively. If managers want their employees work together effectively in teams, they have to understand and respect one another. It is often said that variety is the spice of life thus we need all the talents we can get in coming to grips with the complexities of a global market place. If we all look the same, and talk the same, and think the same, then we are just going to come up with one dimensional, humdrum answers. Today, it is also a key ingredient for business success (Digh 1999).

However, in the past few years, downsizing and restructuring have had a substantial effect on American organizations like GM which led to a massive lay-off of its employees. The consequence of these events has been decreased morale and the loyalty in the employees.

Organizational Structure

            Organizational behavior is also concerned with employee job satisfaction, which is an attitude. There are three reasons why managers should be concerned with their employees’ job satisfaction. First, there is a link between satisfaction and productivity. Second, satisfaction appears to be negatively related to absenteeism and turnover. Third managers have a humanistic responsibility to provide their employees with jobs that are challenging and rewarding (Daniels 1994).

            Through the introduction of the assemble line of Henry Ford’s Model T, problems arose of how to organize the factory as efficient and effective as possible. The classical perspective first emerged in the nineteenth century and early twentieth century. Much of the classical writers had backgrounds in military settings, mining operations, and factories. Such classical writers are Henri Fayol, General Motors executive James D. Mooney, and Lyndall Urwick. They all believed that managers should exercise control primarily by defining boundaries: telling people how to do their jobs and monitoring them with constant surveillance to guard against any surprises. In other words, the classical view was the management method that advocated high specialization of labor, intensive coordination, and centralized decision making. This technique suggested less low-level workers and more substitutes such as machines. This will allow less monitoring and more control (Daft 1997).

Organizational Culture

            Organizations are social groups or gatherings whose purpose is to accomplish a common goal. The goals of some organizations may be to raise money for themselves and the goals of other organizations may be to raise money for a non-profit foundation. It can be said that organizations vary in sizes, locations, and goals.

            Managers are clearly concerned with the quantity and quality of the work their employees are performing. But absence and turnover are particularly cause for concern because of the adverse affect it may have on an employee’s productivity. In terms of absence, it’s hard for an employee to be productive if he or she isn’t at work. High rates of employee turnover increase costs and tend to place less experienced people into jobs (Daniels 1994).

            Each of GM’s automotive divisions were once each targeted to specific market segments and, despite some shared components, each distinguished itself from its stablemates with unique styling and (to some extent) technology. The shared components and common corporate management created substantial economies of scale, while the distinctions between the divisions created an orderly upgrade path, with an entry-level buyer starting out with a practical and economical Chevrolet and, (assuming progressive prosperity of the buyer), moving through offerings of the several divisions until the purchase of a Cadillac. The divisions were not competing with each other as much as passing along the same customer, who would thus always be buying a GM product, with the profits flowing to this single corporation.

            Human Resource Policies and Practice

            GM has a unique human resource policy and practice among other automakers in history. The following is taken from its Health and Safety Policy:

“We are committed to protecting the health and safety of each employee as the overriding priority of this Corporation. There will be no compromise of an individual’s well being in anything we do. The implementation of actions to help our employees realize a healthy, injury-free environment is a leadership responsibility. Continuing support of this effort is the responsibility of everyone. We will lead the General Motors team to ensure that we protect the well being of every member.”

Joint programs with trade unions and employee training initiatives have helped GM become the auto industry leader in health and safety performance. GM has developed a risk-assessment methodology known as Safety 21 for use in designing machine safety features. The system — a joint effort among engineering and safety professionals, the UAW union, and GM employees — has dramatically improved machine safety and reduced risk to employees.

GM is currently instituting a global health and safety management system structured around the ISO 9000-2000 Quality Management System. It hopes to manage programs and procedures including: GM Global Best Health & Safety Practices, ergonomics, safety through design, contractor safety, skilled trades safety, employee well-being, employee assistance programs, industrial hygiene evaluation, and due diligence surveys.

GM belongs to many health and safety industry and business associations. Such partnerships have symbiotic benefits: The company learns by leveling itself against other organizations and in turn shares its best practices.

            GM is proud of its compensation policies and practices around the globe. Jobs at GM facilities are highly sought wherever the company operates.

            In the United States, local unions represent many GM employees. In these cases, wages and benefits are negotiated with the local unions. However, unions do not represent all GM locations, so in these locations wages and benefits do not need to be negotiated locally.

            Compensation and benefit practices vary widely around the world, according to local customs, competitive markets, and local regulations. GM’s market-based compensation meets or exceeds all legal requirements. Health care is provided to all employees, in accordance with local laws, customs, and practices.

            With the ever-increasing cost of health care, U.S. companies are facing a crisis. GM is said to be the largest private purchaser of health care in the U.S. In 2002 alone, the company spent at least $4.5 billion on health care benefits for its 1.2 million employees, retirees and their dependents — fully 0.4 percent of the U.S. population. On a per-member basis, its cash cost in 2002 was more than $3,800. In other words, about $1,200 of each vehicle sold in 2002 was earmarked for health care. In 2001, the per-member figure was $3,500.

            GM’s philosophy on benefits is to provide them whenever it is customary to do so. While in many countries it is customary to provide pensions, in some countries where GM has operations, e.g., Poland, Colombia and Hungary, it is not. Therefore, GM may not provide such a benefit in those countries.

            Labor issues, such as wages, benefits, hours, and working conditions within GM’s European operations respect European Union and national legislation and are managed through the collective bargaining process where applicable. Internal employee representation systems are established in all countries in which GM operates.

            GM is committed to creating a diverse and inclusive workplace. In addition to GM’s commitment to comply with state and federal laws protecting individual civil rights, the company has a widely distributed written policy on equal employment opportunity and harassment. Harassment based on age, race, color, sex, religion, national origin, disability, sexual orientation or gender identity/expression is a violation of this policy. Harassment should be understood to mean a single incident or a pattern of behavior where the purpose, or the effect, is to create a hostile, offensive, or intimidating workplace environment.

Organizational Change

            Key aspects of the organization must be looked upon closely as it undergoes a major transformation. The competitive environment is tougher than ever, but the company has the opportunity to maintain its position through improved products, processes, technologies and managerial positioning and decision-making.

            General Motors had a history of bold strategies in a wide variety of areas, including the creation of Saturn, the development of global operations and the formation of strategic alliances with Fiat, SAIC and Daewoo. Non-market strategies included pursuing government financial assistance, coping with new environmental regulations, and agreeing to very expensive health care and pension schemes.

Meanwhile, GM had failed to create strategies to compete effectively with foreign automakers. By 2005, many of GM’s strategic decisions seemed to have been inappropriate. Some that were undertaken for short-term gain had disastrous long-term consequences, and GM performed poorly compared with other global automakers. Many strategies had seemed disconnected, lacking an overall vision or purpose. While students may discuss each strategic decision and understand why GM acted as it did, nevertheless, students can see that the compendium of strategic decisions had moved GM into a serious crisis.

In 2005-2006, GM introduced several new strategies. Whether these strategies could achieve sustainable profitability, or whether they would also bring undesirable consequences, was a subject of importance to employees, shareholders, and governments throughout the world.

            GM promoted sales through an employee discount to all buyers. Marketed as the lowest possible price, GM cleared an inventory buildup of 2005 models to make way for its 2006 lineup. While the promotion was a temporary shot in the arm for sales, it did not help the company’s bottom line. Thus, GM has begun a renewed emphasis on product features in its ads, not just price.

            Although General Motors is certainly undergoing a significant transformation as it works to become a more competitive company, there are still several things that it could be doing that, well, may not have occurred to the company’s management.

            Diversity has its roots in the 1960s — a period of massive transition in which minorities and other groups made significant advances in their respective in the workplace.

With both local and global competition growing rapidly, there has been a strong emphasis on products and services with higher quality. Customers’ needs and wants before, during and after a sale are the emphasis today and to identify how to fit this into the organization is a key issue. Total Quality Management has been the answer to achieve these goals for many companies. TQM is a structured system in which an organization attempts to achieve continuous improvement in quality of its products and services.

            Involvement and commitment are two things that are required of employees. This usually means that management has to allow employees to make some decisions that used to have to concern managers. Teamwork is another key element for quality and speed. It is absolutely necessary for not only individuals but also groups to work together to meet customer expectations (“Organizations Strive For Dream Team Success” 1998).

            Organizational behavior becomes interesting when people willing to understand and address the behavior of organization. It is important to understand the people working in an organization like General Motors. As we come from diverse cultures and upbringing, we each act differently, as already mentioned above. Thus it is only understood that we perform differently from others. But as we work in one organization, it is necessary to understand and patter our behavior within the means of the company we are working for.

            As a final note, it must be understood that there are a variety of factors that affect both the success or the downfall of a company. But at the end of the day, what is important are the people who are considered as the backbone of every company or organization. Managers must see to it that these employees are well taken care of in terms of wages and other benefits. What will continuously motivate employees are these lasting benefits and the good relationship between the managers and the employees.

References:

Chandler, A., Jr., ed. Giant Enterprise: Ford, General Motors, and the Automobile Industry 1964.

Daft, Richard L. Management. Forth Edition. The Dryden Press: 1997 (42 – 47).

Daniels, Aubrey C. Bringing Out the Best in People. How to Apply the Astonishing Power of Positive Reinforcement. New York: McGraw-Hill, 1994.

Digh, P. Developing a Diversity. Association Management. Vol. 51, No. 2, Feb. ’99: 53.

Jacob, J (1985). Fundamentals of Organizational Behavior, 22 – 27.

Johns, G. Organizational Behavior. Fourth Edition, Harper Collins College Publishers, 1996.

Kuman, V. “A Contingency Framework for the Mode of Entry Decision.” Journal of World Business. Spring ’97, Vol. 32: 53 – 72.

Maxton, G. and Wormald, J. Time for a Model Change: Re-engineering the Global Automotive Industry (2004)

Organizations Strive For Dream Team Success 1998

Rae, John B. The American Automobile: A Brief History. University of Chicago Press, 1965 (Pp. 23- 25).

Robbins, S. Essentials of Organizational Behavior, 2 – 5. (1984)

Sloan, Alfred P., Jr. My Years with General Motors, 1963.

Tomer, John F., Organizational Capital and Joining-Up: Linking the Individual to the Organizational and to Society, Human Relations, Plenum Publishing Corporation, June 1998, v51, n6, p. 825 (22).

Vasilash, G. General Motors: The Road Ahead. Automotive Design & Production

Wilson, Susan B. Goal Setting. Changing People’s Behavior. New York: AMACOM, 1994.