Organizational Structure of Mason Electric - Case Study Example

Management Case Study Use the six elements of organizational structure to explain whether the Mason Electric head office can be characterized as an organic or a mechanistic organization. Karakowsky (2002) identified two extreme types of organizational configuration based on the six elements of organizational structure: machine bureaucracy and adhocracy or innovative organization. Karakowsky (2002) defined mechanistic organization or mechanistic bureaucracies as those which “maintains jobs that are highly specialized, with a clear chain of command with a narrow span of control (tall organization), and are typically, highly centralized and highly formalized.” The latter which is also regarded to as organic organization is characterized by “jobs low in specialization (with a broad variety of tasks and responsibilities), no clear chain of command (team based approach), and a wide span of control, and are highly decentralized with a low level of formalization.” These two organizational configurations as stated previously lie on polar extremes and there is a huge possibility that other organizational structures exist which are in between these two extremes. Mason Electric Service Company will be evaluated to determine its organizational configuration depending on the six elements of organizational namely work specialization, chain of command, centralization, span of control, formalization, and departmentation. To simplify the discussion of these elements and their application to the company, a table which summarizes the evaluation is presented below. This will be supported by a more detailed discussion to elaborate the evaluation. In terms of division of labor, Mason Electric follows a mechanistic structure as tasks are simple, specific and repetitive. As discussed in the case, the top management became so overwhelmed with the employee turnover which often result to hiring persons who are not familiar with the previous’ employees job description. To answer this dilemma, the management sought to establish “Standard Practice Instructions” which are specific job functions for the employees. The case also highlighted that the employees’ role in the organization is rigid as specific task directives flow downward to the organization. The utilization of this standard procedure also signifies a high level of formalization within the company. Table 1. Organizational Structure of Mason Electric Services Company ELEMENTS MECHANISTIC ORGANIC MASON 1. Division of Labour narrow wide narrow 2. Adherence to Clear Chain of Command strict flexible strict 3. Span of Control narrow wide wide 4. Centralization centralized decentralized decentralized 5. Formalization high low high 6. Departmentation functional dysfunctional functional Adherence to the chain of command is strict as each employee reports and is evaluated by his immediate superior. The strict adherence to the chain of command is also shown by the specific guidelines received by the employees from their supervisors. It is apparent that employees are not empowered but are being directed and subjected to the company’s standard procedures. Looking at Mason’s organizational chart, the organizational structure is relatively flatter and has a wider span of control. Most middle managers have an average of three or four lower managers directly under them. However, it is also notable that the structure becomes narrower as one goes up the structure. The organizational chart also shows a functional departmentation as employees are grouped together according to their skills. The organizational structure of Mason Electric is decentralized as its operation is not tightly controlled and managed by its head office. The case states that the Canadian division, which consists of 14 branch offices operates through the management and supervision of the Toronto office without much interference from the corporate head office in the United States. This type of system indicates independence in decision-making process for the Canadian division. As management and decision-making authority are not fully concentrated in the top level of management, Mason shows a decentralized structure. Looking at Table 1, one can see that Mason Electric Service Company does not strictly follow a mechanistic or organic organization configuration but a combination of both. The company is one of those organizations which are not in the polar extremes of organizational structures. However, we can deduce that Mason is more mechanistic than organic as its characteristics show more adherence to mechanistic bureaucracies. Mason has highly specialized jobs, high value to the chain of command, highly formalized and has a functional departmentation at the same time it is relatively decentralized and has a wide span of control. 2. Use the six stages of the Rational Decision Making model to analyze the ICC’s approach to the new benefits package. What problems were encountered by the ICC in dealing with the benefits package? What would you have done differently? The ICC formed by the Mason Electric Service Company in order to solve the problems involving its workforce has failed due to a lot of reasons. Though the ICC shows lot of weaknesses in terms of the decision making process to come up with a new benefits package, the ICC’s pitfall is also due to the top management’s attitude toward the committee. As the management did not take the committee seriously, their efforts proved in vain. The Rational Decision Making Model asserts six essential steps to come up with an efficient solution to business problems. The six steps are as follows: 1. Identify problems and opportunities; 2. Choose the best decision style; 3. Develop alternative solutions; 4. Choose the best solution; 5. Implement the solution; and 6. Evaluate decision outcomes. Referring to the six-step in rational decision-making, the ICC failed in the very first step of the decision making process. The ICC was not able to identify the root cause of the problem faced by the company’s workforce. I believe that the ICC was not able to accurately pinpoint the real dilemma of the employees working for Mason. The committee had sought and chosen an alternative instead of determining the human resource’s problems. I believe that offering a new benefit package to the employees is not the right solution which can solve the company’s crisis. The committee’s failure and one of the greatest problems is the lack of the top manager’s support for their trust. In a company where the chain of command is highly valued, it is imperative that every effort from the lower management should be supported by the top management. The ICC somehow loses it credibility and authority to employees as it was not taken seriously by the top management. There is also a problem in the in ICC’s survey form which determines the benefit package preferred by the employees. I believe that the survey should generate what the employees want and not be limited to the suggestions of the ICC. In order to really know what the workforce need, the ICC should have left the alternative benefits completely to the employees. Given the chance to act in the position of ICC, I will first ensure that the committee wins the heart of the employees. I will seek help and support from the top management to assure the employees that whatever comes up with every meeting or discussion will be brought to the top management. I will highlight that ICC will serve as a bridge between the top management and the employees. Secondly, I will determine the real problem within the workforce. This will be done through informal discussions (like lunch-outs, retreat, etc) with each member of functional area to be sure that everyone will be involved. Putting up suggestion box for employees will also be imperative to listen to their complaints, comments and recommendations. I also believe that instead of employing specific guidelines in order to ensure that disruptions will not be encountered whenever an employee quits his/her job, empowering employees and entitling them with little everyday decisions will promote more trust and confidence for the employee. Instead of thinking that an employee will be likely to vacate his position, management should show that they encourage growth for the employee. 3. a) Give an example (either from the course materials or from your own experience) of a current job where the work is very standardized and explain in what ways it is standardized. A standardized job, according to Karakowsky (2002) is one where there are “clear rules on how to perform it, leaving little or no room for individual discretion.” My experience as a cashier in McDonald is one example of a standardized work. In order to prepare me for this work, the company gave us training and presented standard operating procedures which a cashier should strictly adhere to when he/she serves customers. These procedures on greeting customers, order taking, and dealing with customers are rigid and should be strictly followed within the organization. b.) What benefits does standardization provide in this specific situation? It is apparent that one of the major dilemmas faced by companies offering products and services like McDonalds is how to standardize the experience for a customer. Standardization of products is relatively easier to achieve in this situation as only the ingredients and way of preparation is controlled. However, standardization of customers’ dining experiences is harder as it involves interaction with other people who may have different preferences. It should also be added that the quality of service provided by a cashier varies with the type of customer, time, moods, and feelings. Creation of standard operating procedures tends to promote a standardized or unique experience McDonalds customers have when dining in its outlets. This helps in creating a stronger brand image for McDonalds and promotes consistent service quality in each store regardless of their locations. c.) What are the risks and disadvantages of standardization in this case? In my experience, a standard operating procedure for a cashier in McDonalds works for most of the customers. However, as individuals have unique characteristics they also bring different preferences and attitudes when dining in McDonald. A standard operating procedure may not work for an irate customer. Also, a cashier must adjust according to the situation and preference of the customer in order to maximize their satisfactions. One of the major setbacks of standardization is that it limits an employee’s creativity in dealing with situation which needs a different approach. d.) What aspects of the job might you change or what policies might you implement to mitigate some of those risks and disadvantages? I believe that employees should be more empowered and be given more discretion in doing their tasks. This will help them to cope with the individual preferences of the customers and promote satisfaction. Empowering employees also gives a sense of independence for each employee thereby cultivating trust to the company. This will further motivate employees to achieve the organization’s goals. 4. Read “Let’s Talk Business 2.4 – THE CONTAINER STORE” and explain how The Container Store’s managers implement elements of the Behavioral Approaches to management. The case of the Container Store is one of a very good example of the implementation of behavioral approaches to management. The behavioral approaches to management, as opposed to the classical or traditional approach takes into account the social or human side of organizations instead of treating the workforce as a mere capital to achieve the organization’s goals. The Container Store’s high productivity and employee retention are products of employing Behavioral Approaches to management. The Container Store treats its employee following the motivational approaches laid out by modern thinkers like Maslow, Herzberg, Follett, and Barnard. As asserted by Follett, encouraging employees instead of coercing them has a greater impact in each employee’s productivity. In the Container Store case, this is shown by the company’s constant support to each employee to achieve higher sales. It was stated in the case that the news of every corporate marketing description are disseminated to the frontline employees, which shows the company’s support and encouragement to them. The company also maintained constant communication and relaying the company’s goals and objectives with the employees as required by Barnard. Recognizing that money is only one motivational tool for employees, the Container Store does not base monetary compensation on employees’ sales. Instead, the employees are rewarded and retained in the organization according to their willingness to adhere to the company’s values. Interaction of top management with frontline employees is also one of the key factors in enhancing the company’s productivity. This is maintained by Container Store as managers as present in the day to day activities and even help employees in customer service. Reference Karakowsky, L. (2002). The Nature of Management and Organizations: Challenges in the Canadian Context. Capture Press Inc. Read More