The Past Methods of Control - Essay Example

AFFECTING CHANGE 14th JANUARY, 2009 ESTABLISHED METHODS OF CONTROL AND THE CURRENT CULTURES OF THE DEPARTMENT AND THE ORGANIZATION It is the traditional method whereby organizations were simply taken to be means for coordinating and controlling a group of people but the recent trends have changed; now organizations are referred and viewed in terms of varying cultures. The traditional systems were based on the pre-defined methods of control by adopting vertical levels, departments, authority relationships etc but the current form of organization believes that a firm carries its own unique personality which can be portrayed in characteristics such as being rigid or flexible, unfriendly or supportive, innovative or conservative etc. culture plays a significant role in the performance and the way of life led by the members of the organization. The past methods of control were mainly related to formation of a simple structure which featured a low degree of departmentalization, wide spans of control, centralized authority and less formalization. The Major drawback of this kind of a system was that control was centered on one single person thereby leading to information overload and distortion. The bureaucratic form managed its control process through, specialization, formalized rules and regulations and narrow spans of control and restricting decision making by implementing it through a chain of command. Matrix structure on the other hand posed numerous problems in terms of coordination and control (Robbins P S & Judge A T, 2007). On the contrary the current culture inclinations in the organization refer to creation of a system of shared meanings held by the members of the firm that makes it distinct from its competitors. Innovation and risk taking, detailing, outcome, people and team orientation, aggressiveness and maintaining stability are the key feature that shape up the culture of the organization (Denison R D, Haaland S, & Goelzer P, 2004). A SPECIFIC RECOMMENDATION FOR RESTRUCTURING THE DEPARTMENT THAT WOULD IMPROVE THE CULTURE WHILE EMPOWERING EMPLOYEES One of the studies published in the ‘Journal of Organizational Dynamics’ revealed the fact that well-built and affirmative aspects of organizational culture are the vital components of a success that lead to employee empowerment, team orientation, clear strategic direction and strong and recognizable vision (Robbins P S & Judge A T, 2007). In shaping up if culture, low formalization or the widespread use of empowerment amongst employees is quintessential. Employee empowerment grants the authority to the employees for decision discretion to do what’s necessary for the growth and benefit of the organization (Chen G & Klimoski J R, 2003). Cultural change is an integral component for the success of the business activities. A department can be restructured in such a manner that will help in improving its culture and also attaining employee empowerment. Decentralization of resources, flattening of the organization structure, renewed customer focus; transform the department in such a manner that the quality management applications can be readily integrated into ‘the culture’ of the organization. The restructuring efforts of the department and the implementation of the modern business practices for instance TQM, etc can greatly influence the customer feedback, data collection and analysis, team problem solving approaches along with the employee empowerment which can be a framework for the new management structure. Employee empowerment extends the ability of the employee to effect changes within his own sphere of influence and also his potential and capability to collaborate to ‘fix’ problems which can prove to be very important for any department. Empowerment is a powerful concept that reveals the true dedication and commitment of an employee as it creates an atmosphere which enhances employees self esteem, and helping the members taking personal responsibility for the success of the department and further leading to establishment of a quality organization ( Chen G & Klimoski J R, 2003). WITHIN THE RECOMMENDATION, DESCRIBE WHICH MANAGEMENT PRACTICES WOULD BE MOST EFFECTIVE AND WHY As per the above recommendation which relates to the improvement in qualitative factors , a participative management practice (Yukl G, 2006)acts as a catalyst in implementing a sound TQM process emphasizing on the indirect value aspects of the organization such as trust, responsibility, participation, group affiliation, Empowerment is a important tool in TQM in order to implement the necessary organizational changes as the concept is based on the fact which states that employees needs the organization as much as the organization needs the employee and that employees should be treated as the most valuable asset of the firm. Participative management (Yukl G, 2006) requires responsibility and thrust towards the employees. Workers who are affected by the organizational changes must be made a part of it by involving them in the decision making process. In an empowered organization, employees are not directed what they need to do instead they are already aware about the thing they should do. Here the management’s practice in order to bring optimum efficiency and effectivity is to stimulate and support its employees, cooperate in order to overcome the cross functional barriers and work to eliminate all kinds of unwanted fear and apprehensions within their own team members. To encourage such kind of participative management, a new boundaryless organizational culture could be imbibed by the organizations. By eliminating vertical boundaries, management flattens up the huge levels of hierarchy, encourages cross hierarchical teams along with the 360 degree performance appraisals. Project teams take over the functions of the department to carry on the process of coordination. A boundaryless organizational culture encourages empowerment which further aims to increase sales growth, profitability, employee satisfaction, and organizational performance (Denison R D, Haaland S, & Goelzer P, 2004). HOW THE SIZE AND NEW STRUCTURE COULD AFFECT THE ORGANIZATION AS WELL AS INDIVIDUALS, GROUPS, AND TEAMS, AND THE FUTURE OF THE COMPANY. The boundaryless organization structure was first identified by the General Electric’s former chairman ‘Jack Welch’ who wanted to break down the barriers to the external and internal elements or boundaries in an organization such as such as customers, suppliers etc. The boundaryless organization seeks to eradicate the chain of command, have limitless spans of control, and replace departments with empowered teams (Robbins P S & Judge A T, 2007). The structure eliminates hierarchical and departmental internal boundaries. A boundaryless culture tries to overcome the limitations imposed by internal corporate divisions. It is a prototype shift that recognizes the limitations inherent in separating people, tasks, processes, and places, and focuses on the advantages of moving ideas, information, decisions, talent and actions when they are required in the organization. The organization’s size significantly affects its structure. For instance, large scale organizations which employ 2,000 or more people generally are inclined towards more specialization, departmentalization, rules and regulations. Hence such kind of scenario is missing in boundaryless organizations which cater to small number of employees in comparison to giant firms. Size does effects the structure but on a decreasing rate. The impact of size becomes less important as an organization expands as once an organization crosses the figure of 2,000 employees or more, it becomes mechanistic ( Robbins P S & Judge A T,2 007). Groups, individuals and teams on the whole are encouraged as they become part of the decision making mechanism. Empowered employees render higher efficiency and productivity in comparison to those who are confined in a regulated environment. Project teams are entitled with high end responsibilities which furthers boosts up their morale, self-esteem and confidence. Employees work on joint projects which help in blurring out the distinction between one organization and another. Heavy reliance on information technology helps the organization to keep pace with the global changes affecting the business. Specialists are turned into generalists who have a holistic viewpoint and access to different areas of the organization. Some companies even value their customers more, that they allow them to perform those functions which were once undertaken by the management. This is the best way to retain customers and increase the database in future as well. The structure possesses a comprehensive information network. REFERENCES Robbins P S & Judge A T. (2007). Organizational Behavior, Twelfth Edition. Published by Prentice Hall. Pearson Education, Inc Yukl G. (2006). Leadership in Organizations. Sixth Edition. Published by Pearson Prentice Hall, Pearson Education, Inc Chen G & Klimoski J R. ( 2003), “The Impact of Expectations on Newcomer Performance in Teams as Mediated by Work Characteristics, Social Exchanges, and Empowerment,” Academy of Management Journal 46 : 591–607 Denison R D, Haaland S, & Goelzer P. (2004). “Corporate Culture and Organizational Effectiveness: Is Asia Different from the Rest of the World?” Organizational Dynamics, pp. 98–109 Read More