Organization Management Theory and Practice - Coca-Cola Company - Case Study Example

Organization Management Theory and Practice Author’s Name Class Name Professor’s Name School City and State Date Introduction Currently, the business world has become very dynamic and competitive. Organizations must have effective and efficient teams in the workplace. More also decision making in the organization must be handled in a manner that is it benefits the organization to the maximum. According to Arvinen-muondo & Perkins (2013), sound decision-making, and effective teams are crucial aspects that help the organization to grow, stand out in a competition, and keep up to with the market trends. Organizational stakeholders, as well as the public, expect organizations to be managed in a particular way. More also theories also suggest manners in which organizations should be managed. However, the management of these organizations varies from one organization to another and from the theory. This paper analyses the expectations of how an organization should be managed according to the relevant theory or suggestions and how they are actually managed by using Coca-Cola Company has as our case study. This analysis is based on two aspects of the organizations namely decision-making in the organization and effective teams in the place work. The differences are then noted, and the reasons for these differences are discussed. Finally, the paper gives recommendations for the analysed organization regarding further development and change. Theory X and Theory Y According to Schermerhorn (2010), Theory X and Y present two sets of assumption about human behaviour and human nature. Theory X views human nature in a negative manner by assuming that individuals loathe work, require close supervision, and are irresponsible when doing their jobs. On the other hand, theory Y represents a positive view of nature of human beings and assumes that individuals are creative, industrious, assume responsibilities, and have self-control in the workplace. One would expect the Coca-Cola manager who holds assumptions about human nature consistent with theory X to exhibit a style of management that is different from a manager who hold Theory Y assumptions. In the application of theory X, one expect managers to ensure that they have effective teams in the workplace. Moreover, decision making in the organization is supposed to be in a manner that it enhances expansion, growth, and general success of the business. The decision on how to deal with employees who lie on Theory Y and Theory X will largely influence the performance of the company (Schermerhorn 2010). A manager must understand how to deal with employees who lie on Theory X and Theory Y so that he can effectively run the organization by ensuring that good decisions are made, and effective groups are in place. Decision Making Decision-making can be defined as a mental process of identifying and choosing solutions from alternatives options and using these solutions to respond to threats and opportunities in the business. In every organization, both programmed and un-programmed decisions happen simultaneously. Programmed decisions are the routine decisions that the managers are expected to make on a day-to-day basis during the un-programmed decisions often occur at the spur of a need. Managers are tasked with making most of the organization’s decisions. A report covering the last three years shows that 77% of managers feel that the number of decisions made during typical workday has increased. However, 17% feels that the number of decisions has remained the same, and 6% feels that the number of decisions made has decreased. The amount of time they are prompted to make the decision was also on a 15% rise. When making decisions, managers should first determine actions or responses necessary to alleviate a problem. The next step is to choose the best alternative for the problem. Intuition, tactic knowledge, and expertise should be largely employed when making a decision. By using the guidance of Simon’s Normative Model of decision-making, one would except that bounded rationality to guide decisions made in an organization (Tavana 2012). The other decision-making models include rational, garbage can model, and non-rational models. Employees need to feel motivated and appreciated by listening and incorporating their ideas into the decisions made. Making a group decisions can be beneficial for having a greater pool of knowledge, having a larger pool of expertise who can detect the risk early enough (Walker 2014). Effective Teams in Workplace A group can be defined as two or more people sharing a common goal and identity. The goals and norms are formed at the inception of the group. A group becomes a team when leadership becomes a shared activity and problem solving becomes the team’s way of life. Moreover, a group becomes a team when the team has its mission and purpose and when the responsibility shifts from being an individual to being a team’s concern. King and Lawley (2013) describes an effective team as one that has a clear purpose, is well informed, takes time to listen to its members, makes civilized disagreements, and constantly makes self-assessment. A well-rounded team also encourages participation, shared leadership, external relations, and the duties and roles of members are clearly outlined. There are two of types of groups and teams namely the informal and formal group. The official group is tasked with socializing with newcomers, implementing compound decisions, coming up with ideas to solve arising problems, coordinating interdependent efforts. On the other hand, the informal group is obligated to satisfy the basic human need to feel affiliated to something, reduce individual insecurities and anxieties, and offer an excellent platform for solving interpersonal problems. According to Tuckman’s five-stage theory of group development, a group is developed through the following stages forming, storming, norming, performing, and adjourning. Where the managers want maximum results from the groups, clear roles for the groups have to be set up (Wilson 1999). Coca-Cola Company Coca-Cola Company is an American global corporation that manufactures, retails, and markets non-alcoholic beverages. The company is headquartered in Atlanta, Georgia. Its international staff members operate discretely and in isolation from their counterparts in the head office. It has separate international divisional structure. The company is headed by a president and has five continental divisions each headed by a president. The divisions have subdivisions each headed by a vice president. The divisions have departments headed by managers. The Coca-Cola organizational chart is shown in fig 1 in the appendix. Having worked with Coca-Cola Company for six months during my internship, I was able to observe how they made their decisions and how their teams worked. The table below shows how I expected Coca-Cola organization to be managed based on textbook suggestions and relevant theories, how it is managed and the difference between the two. The table also gives the recommendations on how it can be better managed. I worked in the marketing department, and a manager headed the department. EXPECTED ACTUAL DIFFERENCE RECOMMEDATIONS Decision Making In Coca Cola Company, I expected that managers have a knowledge sharing culture and there are ways to promote implementation of best ideas as well as reward use of new knowledge to aid in decision making process. The employees have a culture of withholding new ideas and knowledge because they are not rewarded for it. When there is an idea that can aid in decision-making, only the manager is rewarded while the real source of the idea is not acknowledged. The theory requires that ideas, knowledge, and new information should be shared, and managers should overcome defensiveness. However, in practice especially in Coca Cola managers are very defensive of their positions and have a tendency of not rewarding or acknowledging their subordinates. Coca Cola Company should set up a knowledge management department and put a system in place to reward innovative employee who help to solve challenging problems by offering ideas that aid in decision-making. According to Clegg, Hardy & Nord (1999), managers must operate within a bounded rationality. Managers intend to be rational and certainly, their behavior is reasoned. Every decision that a manager took was based on market research or feedback from the customer. When making a decision the manager would meet the group supervisors and reason with them to make a decision. Every decision was accompanied by a report that explained why he chose that particular decision and ignored any other alternative. There is no difference. Theories argue that mangers must be rational and that actually what happens in Coca Cola Company. Meeting the team is not enough. Managers should ensure that his team is motivated and satisfied to ensure that they participate in the group without holding up. I expected all programmed decisions to be made through a defined tested and tried formulae, protocols, or procedures. These decisions are mostly done by lower cadre employees and have no major effects to the organization. On the other hand, higher management should make un-programmed decisions since there are no well-trodden ways of handling them. Every manager in the Coca Cola Company handled all kind of decisions in his department whether programmed or un-programmed. More also, programmed decisions cold be done even at the lowest level. However, non-programmed decisions could be only be done after consulting with the manager. There is no difference. Coca Cola managers are responsible for making non-programmed decision. In this scenario, the company action management and expected management as per theory tally. Managers should carry out a thorough research to make excellent decisions. Decision-making should apply the concept of priority and consequence of decisions (Tavana 2012). When making decisions for example the items of the department marketing budget, we could leave out some items and include others based on their significance in the campaign. There is no difference. Resources are limited and choices have to be made. When making decisions guided by priority, managers should ensure that priorities that have detrimental effect to the organization if left out are given priority. Effectives in the Work Place I expected Coca Cola Company to have at least two types of teams namely work teams and project teams. However, a third type of team called virtual has come up and has been adopted by several companies for example IBM. The marketing department is only composed of work teams. Many work teams handle different activities in the department. The major difference is that the company has only one type of team. It is important to have an informal team that helps to satisfy individual’s need for affiliation, reduce powerlessness, and insecurity, as well as enhance, confirm and develop individual’s sense of identity and self-esteem. Although it is not the role of the mangers to form these groups, he should encourage the team to have these informal groups. Cherniss & Goleman (2001) argues that working, as a team is not enough. Teams within an organization must work together to meet the common goal of the entire organization. Based on this theory I expected Coca Cola to have some intra-teams interactions. Every Monday the departments’ heads meet to share the plan and share the ideas on how to increase performance in the company. For example, our marketing manager had to keep the production department and procurement department posted on the markets demands. It does not practice the intra-teams interactions as expected. Meeting of managers from different departments is not enough because it means that only the manager is exposed to new ideas from other teams. The division or subdivision should encourage intra-teams interactions. Reasons for Differences between Theory and Practice in Management It is eminent that that there are some differences between theory and practice. The differences exist because of several reasons such as varying sizes of organization, ignorance, lack of enough exposure, limited resources, and organization’s nature of work. For example, Coca-Cola Company deals with tangible products thus virtual teams may not be necessary as in the case of IBM, which deals with computer software and hardware. According to Brownlie, Hewer, Wagner & Svensson (2008), these differences exists because of the allure of pragmatic daily trials and tribulations of organizations in the real world and the high-mindedness of theory. The theoretical expectations appear easy, but they are difficult to implement in the real world. Conclusion Management of the organizations is the most crucial responsibility that defines the reason for its existence. However, management of these organizations differs in many ways between how theory requires and expects to them to be managed and how they are managed. The management of organization revolves around two things as discussed namely effective teams and decision-making. These two aspects determine the direction and performance of the organization. Several factors cause the difference between theory and practice in the management of an organization. These factors are the size of the organization, ignorance, lack of enough exposure by the managers, limited resources and nature of work as well as high-mindedness of theory and the allure of pragmatic trials and tribulations. References Arvinen-muondo, R & Perkins, S J 2013, Organizational behavior, London, Kogan Page. Brownlie, D., Hewer, P., Wagner, B & Svensson, G 2008, Management theory and practice: bridging the gap through multidisciplinary lenses, European Business Review, 20(6), 461-470. http://ezproxy.library.arizona.edu/login?url=http://lib.myilibrary.com/detail.asp?ID=418613. Clegg, S., Hardy, C & Nord, W R 1999, Managing organizations: Current issues, London: SAGE Publications. Cherniss, C & Goleman, D 2001, The emotionally intelligent workplace: How to select for measure, and improve emotional intelligence in individuals, groups, and organizations. San Francisco: Jossey-Bass. King, D & Lawley, S 2013, Organizational Behaviour Schermerhorn, JR 2010, Management, Hoboken, N.J: Wiley. Tavana, M 2012, Decision making theories and practices from analysis to strategy, Hershey, PA: Business Science Reference. Walker, R 2014, Strategic management communication for leaders. Wilson, DC 1999, Decision-making in organizations, Managing organizations: Current issues, 43. Appendix Coca Cola Organizational Structure Fig 1. Coca Cola Organizational Structure Read More