DreamWorks Animation - Research Paper Example

? Company Analysis Table of Contents DreamWorks Animation- About Company 3 Implications and Conclusion 11 Reference 13 DreamWorks Animation- About Company DreamWorks Animation is a studio located in Glendale in California and founded in the year 1994. The company specializes in the development and creation of televisions programs, animated feature films and virtual worlds online. The company has successfully released more than 20 feature films which also includes the online series of Madagascar, How to Train Your Dragon, Shrek and Kung Fu Panda. The studio of the organization was created out of the merger between Pacific Data Images and the division of feature animation called DreamWorks in 1997. The company was originally founded under DreamWorks’s banner by the alumni of Amblin Entertainment it went out to generate a separate public company existence in the year 2004. The live action studio of DreamWorks had been acquired by Paramount Pictures in 2006 which has the responsibility of distributing the films created and produced by DreamWorks. Presently, DreamWorks Animation accounts for the highest grossing brands of its time, whose films account for a worth of more than $3750 million (DreamWorks Annual Report 2010, 2011, p.1-4). The company employs approximately 2100 numbers of employees as on 31st of December, 2010 and majority of them are covered under the employment agreements. Majority of these employees are appointed for working as modelers, animators, visual development artists, story artists, lighters, technical directors and the like. Apart from these employees are also employed to perform administrative and corporate functions and take part in supporting and developmental activities (Edgar Online, 2010, p.12). The success factors of the company’s films are predominantly dependant on the extent of acceptance from audience of the films. However, there are great difficulties in predicting such acceptance and thus the business remain risky. It is not possible to predict success of the company’s motion picture as it does not directly relate with the company’s distribution, rather it depends on the extent to which the motion pictures are accepted and appreciated by the public, and this cannot be predicted accurately. The success factor also depends on the availability of alternative motion pictures at the time of release of the films and their success, other leisure time activities and even other common economic factors (Edgar Online, 2010, p.14). Some of the world’s most successful animation companies are located in Japan, USA, Europe and Korea, of which USA accounts for being the leader in the industry. The Asian countries too have been promoting their creative industries rapidly and have also made successful strives and achievement in the domain (Press Release Distribution, 2009). USA accounts for one of the earliest adopters of this sector. Considering the 3D production technology and the advantages in the size of industry America so far holds the leading position in the worldwide animation industry. Considering the advantages of ACG industry, i.e., animation, cartoons and games scenario, industry chain architecture, two dimensional designs and character design, the Japan holds the second largest position in the global animation industry. Apart from that considering manifestations and uniqueness of cultural field's, other regional and countries' animation industries provided by the animation industries of Europe and South Korea are expected to attain new growth points through outsourcing as well as other forms of strength accumulation (CCID Consulting, 2010). Some of the leading and prominent competitors of the company are Aardman Animations Ltd. in the United Kingdom, Animal Logic, Anschutz Film Group LLC in New South Wales and California respectively (Hoovers, 2012). Relevance of theories in practice The working of DreamWorks Animation can be explained using the metaphor of a mechanized machined as explained by Morgan (1998). It is important to explain the metaphor first before finding its relation with the organization. According to Morgan (1998), line employees are regarded as cogs in machines with regards to the tasks they have to perform or the job they are required to undertake. They are responsible for doing a specific task which is clearly defined by the organization or the management. They are particularly required to excel or specialize in that task. Under the mechanized metaphor employees only the management has the power or authority to make decisions or implement changes with regards to procedures and policies. The line employees have to implement as per the directions of the management but cannot put forth their own opinion with regards to the same. In DreamWorks Animation too, the board comprising of its members and the top management are responsible for making all kinds of decisions as per the interests of the company (DreamWorks Animation SKG, Inc., 2009, p.3). Directors appointed to the board are the most crucial decision makers as their future success of the company largely depend on their decisions and actions. Directors are expected to apply and exercise their business judgments which act in the best interests of the company and its shareholders. However, some extent of authority is provided to the company’s senior executives to decide on the approval of the boards decisions. In the discharge of the obligations Directors also rely to a certain extent on the senior executives of the company, auditors and advisors (DreamWorks Animation SKG, Inc., 2009, p.3). Members of the senior management team in DreamWorks are invited to the Board meetings with the aim to make them participate in discussions and decisions. The members of the board retain complete access to all members of the management and the company employees. Despite a certain extent of authority resting with the senior level management team it is seen that major part of the decision making rests with the Director and the board members. Their decisions are to be implemented all across the organization till the lowest level in the organizational hierarchy. Employees are to abide by the decisions laid down by the board. However the board can seek advisers from outside when they feel appropriate and necessary. It also retains the sole authority of approval of retention terms and related fees (Morgan, 2006, p.6). The Independent Directors maintain regular meetings without the presence of the Chairman or the CEO of the company. They can select a Director for facilitating the proceedings of the meeting. The Compensation Committees of the Board and chairs of the Audit may preside over the executive sessions of independent Directors at which the main matters to be considered lies inside the range of authority of the committee chairs. This is done on the belief that this mechanism would ensure leadership at every executive session of Directors without requiring delegating a lead Director (DreamWorks Animation SKG, Inc., 2009, p.4). DreamWorks Animations is also seen to bear resemblance with the organism metaphor. Though the two metaphors of mechanized and organism differ from one another, the company bears a certain extent of resemblance with the latter too. Under the organism metaphor the entire organization is considered to be an organism and each unit of the same is reliant on the whole or entire organization for smooth functioning of the complex organization. For example the brand can be compared with the top management and on the other hand the employee in the organization represents the spinal cord of the system. They act as the spinal cord as their responsibility is to send and receive information from the management which is referred to as the brain in the system (Kinicki, 2009, p.380). The attempt of increasing and enhancing efficiency of the organization is seen to be similar to creating will power within the human system and maximizing the body’s potential to physical output. In the very same manner the organism metaphor allows and encourages interactions between employees on creative aspects within the organization. This has been referred to as fuelling or feeding that entity for maximization of organizational output and productivity. Additionally this is also dependent on the top management which is referred to as the brain of the organism which requires staying adaptive to any kind of change such that they are able to learn from their mistakes and can optimize their goals too. This can also be compared with the military metaphor and the way it runs. Starting from the Command and the Chief till the Airman at the lowest level, orders are trickled down from the top and must be followed by all in the organization. However, within this system variations can be channeled through the opposite direction such as to attain missions in a more effective and efficient manner. Since DreamWorks Animation is highly dependent on the application of technology in the system a considerable extent of success of the company rests with the extent and effectiveness with which it can be applied in the organization. Under such a condition the organizational structures and procedures need to be highly dependent, interlinked and associated for smooth functioning of the system. If there is a blockage in one unit the subsequent and interlinked units also get blocked because of the technological dependence of one unit on the other. Besides this, the fact that the animation industry thrives on creativity, ingenuity and inventiveness, it is crucial that the organization allows room and space for sharing of ideas and innovation. Greater interaction between the elements can only support greater innovation, idea and information sharing between components which consequently reflects through organizational performance and productivity in the animation industry. DreamWorks bears resemblance to the organism metaphor in such aspects (Gale & Gale, 2008, p.66). Alternatives and Solutions for the situation The machine and organism metaphors differentiate estimations of orientation in organizations. A low degree of estimations of task orientation can be regarded as a machine metaphor and according to this metaphor culture remains indifferent towards feelings of individuals in the organization. It is more directed towards providing orders and ensuring that they abided. In such a condition employees in DreamWorks Animation can find their organization tedious in which their feelings and well being is given minimum importance. Thus it consequently depicts a picture in which aspects such well being of employees with tasks while accomplishment of tasks are not perceived as important in the organization. The task orientation estimation is rated as high in such cases (Hammal & Vadi, 2010, p.28). The recommendation or solution here is to keep a balance between tasks and employee well being. It is not favorable to ensure the fulfillment of business objectives without the consideration of the individuals who are actually responsible for attaining those objectives. It is important to ensure that employees do not feel frustrated or disturbed in the organization abiding by this metaphor. Though strict control and authority is required in maintaining discipline and ensuring performance and productivity in the organization, it is crucial to ensure that employee satisfaction and benefit in the process (Hammal & Vadi, 2010, p.28). The organization can provide greater freedom of work activity and action for the organizational employees which are not encouraged in the mechanical metaphor. Being a creative organization a substantial extent of the company’s success and performance is dependent on the degree of innovation, creativity and imagination demonstrated by the organization. Such aspects are seen to be some of the prerequisites in the animation industry which thrives and succeeds on such aspects. Employees must be provided with a certain extent of freedom in choosing their work procedures ensuring that it is also in the interest of the organization at large. Greater sharing of ideas, information, thoughts, opinions, feelings and views would be better for an organization belonging to the animation industry. In other words greater extent of relationship orientation in the organization is called for. The importance of maintaining order and discipline must be coupled with greater communication between employees as it elicits the feeling of togetherness of employees in the organization and at the same time they can also discuss job related matters amongst themselves which subsequently benefits the organization at large (Hammal & Vadi, 2010, p.28). Evaluation of Alternatives and Solutions A greater extent of relationship estimations orientation may generate from the awareness of a trustworthiness and honesty that encourages and provides confidence to individuals to people to enhance relationships with each other. Lower estimations can generate from the struggling and pressure in the company which creates disorderliness and indiscipline where the foundations for relationship building is hindered. Research conducted on this subject on an organization called SG Group Industries reveals that employees in this company are still oriented towards relationship even though it has been operating mechanically. This might have arisen from their comparison assessment with some of the other industrial experiences where opportunities of workers are even less (Hammal & Vadi, 2010, p.29). The recommendation to provide greater allowance towards relationship building in the organization can be justified on the following grounds. Tenure at the workplace and age differentiate estimates relationship and task orientation among employees who perceive their organization as being aligned with the organism metaphor. Younger employees with having tenure at the workplace give greater estimations towards relationships and task orientation as compared to the older people having greater tenure at the workplace. This is probably because of the fact that young people have greater enthusiasm or their short span of experience and incipient demands towards their organization cause them to estimate the orientations highly. However, on the contrary, in spite of the fact that older people perceive their organization organically give lower estimation towards both the orientations. This can be caused due to the fact that they have already established great demands on the organization and although having the feeling that the organization is developing they are can be dissatisfied with certain aspects. Such as freedom or autonomy of activity, system of rewards, hierarchy existing between superiors and subordinates. With regards to the relationship orientation, it can be said that during the initial years of services in an organization employees consider having good relationships with colleagues and communication as important and crucial aspects. However, during the later years the importance of tasks and relationships gradually reduces in the same organization (Hammal & Vadi, 2010, p.29). The metaphor differentiation among employees also results inside groups consistent by their socio demographic characteristics. The blue collar workers possessing high school education using the machine metaphor were seen to be providing greater estimation towards relationship building among employees in the organization as compared to employees having the socio demographic characteristics using organism metaphor. It appears that blue collar workers working in factories consider usual to have more discipline and order and less randomness in relationships at the workplace. When an employee at a factory takes a break the time for which can be done is strictly determined. This primarily originates from the work character. It influences the development of accepted standards of communication, calls forth feelings of togetherness between the employees and provides chances of discussing important and job related issues amongst each other since employees know each other well (Hammal & Vadi, 2010, p.29-30). Implications and Conclusion DreamWorks Animation accounts for one of the leading animation organizations in the US and is known for its rapid success and creative strides in the domain which has driven it ahead of all its competitors in the industry. However, increasing competition in the field on account of the fast flourishing industry coupled with high technological advancement in the domain and an increase in audience interest in creative and entertainment activities has been posing serious threat for the company particularly from Japan and Korea. The company diagnosis reveals resemblance of its functions with the mechanic and organism metaphor. The mechanic metaphor appears through the fact that the company's board of directors and top management retains complete authority towards implementing or changing policies, regulations and work activities. Employees are not provided with the authority to chose or alter their work procedures and functions in the interest of the company's business. They are to strictly abide the rules and regulations laid down by the management and any deviation from the rules is penalized. The organism metaphor reflects through the fact that the organization is highly technology dependant where each and every individual work units are mutually dependant on each another. The top management being the strategic decision maker is perceived as the brain of the human body that is responsible for regulation all other activities. Employees are the spinal cord of the organism that are responsible for receiving and sending of information and messages. Interactions among employees are allowed for sharing thoughts ideas and views which account for some of the critical success factors for this industry. It is recommended that DreamWorks Animation provides its employees with greater freedom and authority of their actions. Strict rules and regulations discourage them to use their creative power in work processes which consequently hampers their work procedures and productivity. Secondly, greater relationship building is also called for through greater communication and interaction as this is one of the crucial aspects of the organism metaphor and greater collaboration, coordination and interaction of employees determines satisfaction, success and performance of the employees in the organization. Reference CCID Consulting. (2010). 2009-2010 Annual Report on the Development of Global Animation Industry (General Report). Retrieved from http://en.ccidconsulting.com/en/io/mr/rr/ten/iec/webinfo/2010/04/1272519107311591.htm. DreamWorks Animation SKG, Inc.. (2009). Corporate Governance Guidelines. Retrieved from http://www.dreamworksanimation.com/ir/corporate_governance_docs/Corp_Gov_Guidelines_090219.pdf. DreamWorks Annual Report 2010. (2011). DreamWorks. Retrieved from http://files.shareholder.com/downloads/DWA/1457669617x0x449518/CACC3CB1-2509-49B5-BA46-E3AE95557EB3/114527_008_DreamWorks_BMK.pdf. Edgar Online. (2010). DreamWorks animation skg, inc. 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