Research Articles Base: Organisation Structures

The Failure of Enron

Failure of Enron   Abstract             Having a strong relationship with all the stakeholders is a vital process or activity inside an organization. Thus, it is important to practice transparency, equality and lawfulness of all the actions that will be implemented, ensuring that the rights of each and every stakeholder are protected. This paper will focus on the different causes of failure of Enron that are connected to the issue of corporate governance. Introduction             The story of Enron is considered as one that will reverberate in the global financial, energy markets, criminal and civil courts for years to come (Fox, 2004). The failure of the company can be considered as typical that shows one of the most thrilling rise-and-fall sagas of business. Starting 1985, the company grew in a decade and a half from a large natural-gas pipeline company to an energy-trading firm that bought and sold gas as well as electricity. During 1990s, the company focuses beyond energy trading, trafficking in metals, paper, financial contracts and other commodities. During that time, so much of its business came from trading that Enron had essentially stopped being a company that focuses on energy, but functioned as a kind of bank. In 2000, Enron had become the 7th largest company in the US, and it was hailed as a model for innovation. In order to sustain the company’s rapid growth, it played fast and loose with is accounting, hiding debts and inflating profits. The said situation lead to another problem that causes lost of confidence of the market to the company, and on December 2, 2001, it filed its bankruptcy (Fox, 2003, pp. 1 – 2).   Corporate Governance Failure in Enron Chairman and CEO             As part of the good governance, it is a good practice to separate the roles and responsibilities of the Chairman of the Board and the CEO (Knowledge@Wharton, 2004). This is due to the fact that the Chairman is considered as the head of the Board, while the CEO is in charge of the entire management. If the same individual holds both the position, there will be too much concentration of power that will result to the dilution of the board. In Enron, after the resignation of Jeff Skilling as a CEO, Kenneth Lay holds both the Chairman and CEO positions (Gopinath, 2002). Audit Committee             Boards work through sub-committees and the audit committee is considered as one of the most important aspects. They overseas the work of the auditor and independently inquires into the different workings of the organization. Furthermore, it also brings lapses to the attention of the full board (Fox, 2003, p. 25).             The said situation is one of the important mistakes of Enron. The audit committee failed to focus in the said roles and responsibilities. The Board assigned the Audit as well as the Compliance Committee the additional duty in reviewing the transactions, however, the Committee carried out the entire reviews only in a cursory manner (Gopinath, 2002).   Independence and Conflicts of Interest             Good governance plays an important role in any company and organization, because it can help organizations to be more open and transparent their respective stakeholders. In connection to that, good governance entails that the outside directors must maintain their independence and must not be benefited from their membership in the board, other than the remuneration, or else, create conflict of interest (Fox, 2004, p. 39). In the case of Enron, the company created a good practice, however, the board compromised their independence in the way that they behaved. Six out of 14 outside director suffered from serious conflicts of interests. They were: Robert Belfer, Wendy Gramm, John Mendelsohn, William Power, Lord John Wakeham and Herbet Winokur (Gopinath, 2002). Flow of Information             As of now, information is considered as one of the most important resources in organizations, thus, its flow is one of the most vital aspects in good governance. The board needs to be provided and showed, with different important information and data in timely manner, in order for them to perform their roles and responsibilities (Australian Government’s Overseas Aid Program, 2000). In the case of Enron, the directors are pleading ignorance of the murky deals, as a way of excusing themselves of the liability. The board denied the important information that will serve as a key to the reason of the action, but did not fully understand and appreciate the vitality of some of the information that have came before it (Gopinath, 2002).   Too Many Directorships             Director plays a vital role in overall management of the organization. He or she must exert great time and effort. Even though a board only needs to meet for 4 to 5 times in a year, the directors must make time to read and reflect over all of the materials that have been provided, that can help to make final decisions. Good governance suggests that an individual sitting on too many boards looks upon it only as a sinecure because he or she will not have that much time to do a good job (The Australian Government’s Overseas Aid Program, 2000). In the case of Enron, one of its Directors, Raymond Troubh, is a Director of 11 other public companies (Gopinath, 2002). It shows that the time, effort and ability of the Director will be divided to different other companies.   References   Fox, L. (2003). Enron: The Rise and Fall. Hoboken, NJ: Wiley   Fox, L. (2004). Enron: The Rise and Fall. John Wiley and Sons   Good Governance (2000). The Australian Government’s Overseas Aid Program. Retrieved October 28, 2008, from http://www.ausaid.gov.au/publication ns/pdf/good_governance.pdf.   Gopinath, C. (2002). Corporate Governance Failure at Enron. Business Life. Retrieved October 28, 2008, from http://www.thehindubusinessline.com/2 002/03/04/stories/2002030400110900.htm   Splitting Up the Roles of CEO and Chairman: Reform or Red Herring (2004, June 2). Knowledge@Wharton, Retrieved November 14, 2008, from http://knowledge.wharton.upenn.edu/article.cfm?articleid=987     Credit:ivythesis.typepad.com

The Failure of Enron

Failure of Enron Abstract Having a strong relationship with all the stakeholders is a vital process or activity inside an...

General Motors

General Motors Multidivisional Structure             The multidivisional structure represents an opposite structure to functional structure. In a multidivisional structure organizational activities are grouped on the basis of products, services, customers, programs, technical process, or geography. All or most of the resources necessary for the accomplishment of specific objectives are set up as a self-contained unit headed by a product or division manager (Sims 2002).             General Motors chose the multidivisional structure because it supports diversification of products. Each product line has its own divisional hierarchy complete with support functions.             The advantages that General Motors can reap from adopting a multidivisional structure are: 1. Increased Effectiveness – because of the division of labor between divisional managers and corporate managers. Divisional managers are responsible for day-to-day operations while corporate managers are responsible for long-term planning. 2. Increased Control – managers can monitor the performance of divisional managers. 3. Profitable Growth – allocation of corporate resources can be strategically planned since each division can be viewed as its own profit center. 4. Internal Labor Market – corporate managers can be hired from the pool of divisional managers, providing an incentive for effective behavior among divisional managers (Riahi-Belkaoui 1995; Volberda 1999).   Matrix Structure             A matrix design is based on multiple support systems and authority relationships, whereby some employees report on two supervisors rather that one. Every matrix organization contains three unique and critical roles: the top manager who heads and balances the dual chains of command; the matrix bosses (functional, product, or area) who share subordinates; and the two-boss managers who report to two different matrix bosses. Each of these roles has it own unique requirements (Sims 2002).   The matrix structure is used by General Motors in areas where there is string environmental pressure and  there are large amounts of information to be processed. The benefits that General Motors can gain from Matrix structure are: 1. Enhanced organizational flexibility 2. High motivation and increased organizational commitment 3. Team members have opportunity to learn new skills 4. Promotes decentralization (Riahi-Belkaoui 1995; Volberda 1999)   Potential Communication Problems Multidivisional Structure             Communication problems occur in tall hierarchies. Multidivisional structure is considered the tallest hierarchy. There are a number of potential communication problems. 1. Distortion of Information by Divisions – each division does not communicate with others because they are concerned with the hierarchy of their own division. As the hierarchy gets taller, the chance for unintentional information distortion is greater. 2. Possibility for Conflict and Misinformation – since divisions compete for resources, they may not cooperate cause coordination problems. Also, divisional managers may not always present a true picture of the sate of their division in a bid to attract more resources. 3. Transfer Pricing – problems between divisions often revolve around the transfer price such as the price at which one division sells a product or information about innovations to another rdivision. Matrix Structure 1. Unclear Roles – due to the lack of a clear control structure, expectations are not stable across teams. People resist change and they avoid conflict, or role ambiguity. 2. Group Behavior – the dynamics of group behavior may lead to slower decision-making, one-person domination, compromise decisions, or a loss of focus. The lack of a clearly defined hierarchy of authority can lead to conflict between functions and product teams. 3. Relationships – Employees are uncertain about reporting relationships. The member so the team are called ‘two-boss employees because they report to two superiors.   Degree of Centralization Multidivisional Structure             The multidivisional structure is partly centralized and partly decentralized. Although each division manager is allowed to decide for day-to-day activities, strategic and long-term planning remains the role of the top management. Matrix Structure             The matrix structure is highly decentralized. There is no clear control structure.     References   Riahi-Belkaoui, A. (1995). The Nature and Consequences of the Multidivisional Structure. Westport CT: Quorum Books.   Sims, R. (2002). Managing Organizational Behavior. Westport CT: Quorum Books.   Volberda, H. W. (1999). Building the Flexible Firm: How to Remain Competitive. Oxford England: Oxford University Press. Credit:ivythesis.typepad.com

General Motors

General Motors Multidivisional Structure The multidivisional structure represents an opposite structure to functional struct...

Learning Journal :presents a collection of the learning journal entries that I have made all throughout the course

Part One: Learning Journal   Introduction               This paper presents a collection of the learning journal entries that I have made all throughout the course. The learning journal aims to record the things that I learned from class discussions, personal readings, experiences and observations. It aims to develop my skills in critical things and to facilitate personal development. In this paper, I aim to organize my reflections, thoughts and queries and be able to share them to the readers and other learners.   HRM: Strategy and Policy Human Resources: Source of Competitive Advantage               Through the module and class discussions I learned that more and more companies worldwide are viewing their human resources (people) as a source of competitive advantage. I find this very interesting so I decided to research on it. I consulted several published materials and searched on the internet. I has been argued that an organization can achieve success if it is able to effectively deploy its human resources (Schuler et al 1993). According to Wright et al (1994) human resources – the total pool of human capital under the control of the firm have the highest probability, among all resources, of being the source of sustained competitive advantage for the firm. This is because human resources are more likely than other resources to be: o   Inimitable o   Non-Substitutable o   Valuable o   Rare             Relating this perspective to my experience as an employee, I reflected on the processes and policies of our organization. Our organization values human resources. It values the talents, knowledge, skills and abilities of every employee. Every HR policy and procedure in the organization seeks ensure that the organization has a large pool of talented human resources. The company values human resources that is why it promotes training and development. The employees are given importance that is why the company has a competitive reward and compensation system. The organization also makes it a point that career development opportunities are available for every one. Through research, reflections of personal experience and by consulting published materials I found that there is a growing interest on human resources as a source of competitive advantage. I believe that the people in the organization that uses their talents, expertise and knowledge in order to achieve organizational goals and objectives are behind the success of every organization. Human Resource Management and Its Contributions           HRM is really an interesting field for me. The growing interest in the field of human resources has led to many studies and research regarding the contributions of human resource management to the success of the organization. I learned through class discussions and research about the definition of HRM. Human Resources Management refers to the philosophy, policies, procedures, and practices related to the management of an organization’s employees. Human resources management is particularly related with all the activities that contribute to successfully attracting, developing, motivating, and maintaining a high-performing workforce that results in organizational success (Sims 2002, p. 2-3). Human resources management covers the every aspect of the relationship between the individual and firm including recruitment, contractual obligations, individual training and motivation, corporate planning, performance monitoring, grievance handling and general welfare, dismissal and redundancy (Vernon 2002, p.101).           Over the years HRM has become an integral part of every organization that deals with affairs, policies and processes about the people in the organization. As I have observed in our organization, HRM has become more of like a partner of the management. The HRM department works closely with the top management and the employees. The HRM department is part of the strategic planning process. In our organization, the top management seeks input from the HRM department when it comes to planning especially on areas where human resources (employees) are involved. The information that the HR department provides are very essential. I conducted added research on the importance of HRM and how it contributes to the success of the organization. Here are what I have gathered: 1. It provides the right kinds of talent to the organization at the right time. HRM is expected to assure that a supply of qualified labor in a timely fashion (Clardy 1996, p.20). 2. It ensures that the organization is properly staffed. When done effectively, the staffing, recruitment, and selection process provides a flow of qualified individuals for filling open positions within the organization on a timely and efficient basis (Clardy 1996, p. 41). 3. Using appraisals, the employees are assesses and evaluated. Employee appraisals have very profound implications for both the employees and for the future success of the organization (Clardy 1996, p.58). 4. Using effective pay systems, the management can focus employees’ efforts toward desired organizational goals (Clardy 1996, p.79). 5. Ensures that the employees are properly skilled to perform their tasks and supports the organization’s growth through career development. The goal of training as part of the human resources management processes is to create cost-effective programs that build the skills to perform effectively (Clardy 1996, p.103).           Through my added research on the topic, I found out that HRM truly is a contributor to the success of the organization. It adds value to the organization. Today, organizations have equal access to resources. Every organization can acquire new technology, finances and other physical resources. So success now depends on resources that are hard to imitate. I think the overall aim of HRM is to make sure that the organization have an adequate amount of talents and skills, and make sure that these people who use their talents, skills, knowledge and abilities for the sake of the organization are motivated, properly rewarded and that their needs such as learning and development, work-life balance, career opportunities are satisfied. Strategic Human Resource Management           Strategic human resource management involves the linking of HRM with the strategic goals and objectives of the organization in order to achieve a progressive business performance and achieve an organizational structure that promotes innovation and flexibility (Buyens and de Vos 1991). Strategic HRM according to Burke and Cooper (2004) has emerged as a major approach to improving the competitive advantage of the firm. The goals and objectives of HRM are aligned with the strategic objectives and plans of the organization. The role of HRM is to determine the human resources needed to support strategic objectives and to ensure that employees are selected, trained, evaluated, and rewarded in ways that further the achievement of business objectives. Strategic HRM is frequently described as a linear, balanced process that begins with the identification of goals that will guide human resource practices. The integration of the HR programs with the goals of the organization will result to the organization’s increased value. The recruitment, compensation, performance appraisal, promotion, training and other functions are designed and managed so that they work towards the strategic objectives of the firm (p.92). Strategic HRM has the purpose of improving the way that human resources are managed within firms. The main objective of strategic HRM is to improve organizational performance as judged by its impact on the organization’s declared corporate strategy (Brewster et al 2004, p. 29). Strategic human resources management means accepting the HRM function as a strategic partner in both the formulation of the organization’s strategies and the implementation of those strategies through activities such as recruiting, selecting, training, and rewarding personnel (Sims 2002, p. 27). The enhanced value of innovation in determining competitive advantage requires organizations to attract, train and develop, and retain employees of the highest quality. Over time and throughout rapidly changing circumstances, organizations must be able to sustain the competitive advantage that the knowledge and skills of these employees provide. In the past, competitive advantage could be gained through finding better, cheaper access to financial capital, or marketing a new product, or inventing some new technologies. While cheap and ready access to capital, high-quality products, and new technology remain important components of any organization’s competitive advantage, today’s business environment requires a greater focus on the human resources element in business. Out of this realization has come SHRM (Sims 2002). Key Roles of Strategic Management that add value           According to Ulrich et al (1995), HR has important value-added roles in the organization. These roles must be effectively delivered by the HR because they are essential to the achievement of the organization’s goals. The HR roles according to Ulrich (1997) are: 1. Management of strategic human resources The focus of this role is on the alignment of the HR strategies and practices to the business strategy. The HR professional becomes a strategic partner that creates a concrete HR practices based on the organization’s strategy. 2. Change and transformation management This role is also seen as a source of added value to the organization. The HR professionals must help to identify and implement the change processes all throughout the organization. The HR professionals act as mediums and guards of cultural changes. 3. Employee management This role address issues such as the daily problems, expectations and needs of employees. Identifying and meeting the specific needs of the employees will result to better employee contribution. 4. Management of the administration of the organization The role of HRM is to make sure that the administrative processes like involving hiring, training, evaluation and promotion are designed and delivered efficiently and correctly.   Cross Cultural Management Diversity Management           Diversity on the workplace, especially cultural diversity has become more common because of the increase in international trend and the growth of globalization. Companies all over the world are seeing the advantages of borderless world economy and they start to form partnerships, alliances, and joint ventures around the globe. The workforce is also becoming more mobile. These developments have made management of diversity more important than ever before. As a student who aims to be a manager someday, I need to be aware and educated about the changes that are taking place in the workplace. I need to understand diversity and be able to manage diversity in the workplace. Managing Diversity is the organization’s commitment to integrate and develop individuals that make up a heterogeneous workforce. Diversity management is the development of organizational strategy, culture, policies and practices that support interpersonal respect, communication, and individual, team and organizations performance in a diverse environment. A diverse organization employs people with different culture. I believe that in order to participate and compete internationally, a company needs to have a diverse workforce with diverse talents and skills. Extending the business to other territories and countries means that an organization needs to diversify its workforce. A company that chose to go global explores new markets (host markets). In order to better understand the host market, an international company needs to employ locals. Thus in employing local residents, the international company opens its doors to cultural diversity. When diversity is not properly managed, problems, misunderstandings and conflicts will arise.           Our class discussions made me realize that the world today is becoming borderless. Unlike before, so many things make business a lot easier. I also realized that organizations are changing. In order to succeed in a borderless world, an organization must take advantage of the talents, ideas and values that everyone in the organization brings with them regardless of their background. The organization needs to capture the energy and ideas of every employee to meet the challenges of the intensely competitive marketplace. I believe that organizations that operate globally can be successful if they can manage cultural diversity. Organizations need to bring people together from different cultural backgrounds and forge them into synergistic work groups.   Cultural Dimensions           The increasing number of international firms means that employees are finding themselves to be working side by side with different people from different cultural backgrounds. Interactions between people from different cultures are increasing as international firms sell, purchase and outsource in a growing number of countries, acquire more firms in other countries and use more international joint ventures, alliances and cross-border teams and task forces.           One topic that I found interesting and at the same time useful is cultural dimensions. I found out that there are core value dimensions that vary from one culture to another. Culture is defined as the set of values, attitudes and beliefs that is shared by a group. In order for a member of a group to be accepted and to participate, he or she must embrace the culture of the group. I consider culture as something that dictates the norms of a certain group.           In our class discussions we talked about cultural dimensions. One of these is societal role. There are cultures that encourage people to work alone and there are cultures that support people who work in groups. I realized that in order to be an effective manager in a diverse organization, one must be able to consider this value dimension. We must accept the fact that people have different personalities. Another dimension that took my interest was the mode of communication. I learned that there are two modes of communication – high context and high content. The high-content communications is complete, straightforward and direct. In high-context communication, much of the message is unspoken; the spoken message is indirect, subtle, and incomplete. Communication is an important factor in managing a culturally diverse organization. I now understand that people communicate differently. In order for me be become an effective communicator I must develop a strong relationship with the people that I worked with. It is important to be clear in everything I say to avoid misunderstandings. Another dimension that is of interest to me is masculinity/femininity. A masculine culture exhibits aggressiveness, decisiveness and competitiveness; places great value on achievement outside the home, power, grandeur, and well-defined gender roles. A feminine culture is tender, exhibiting modesty, reticence, caring for other, and concern for favorable environment. I consider Chinese organizations as feminine. Meaning, everyone in the organization values harmony and always avoids conflicts. Chinese people compared to those in the west are more modest and caring. Chinese always settle conflict by negotiation. Perhaps the most intriguing dimension for me is power distance. Power distance as defined by some writers represents the degree to which people accept unequal distribution of power. I consider the Chinese culture as high in power distance. I observed that people in different settings, such as in school or in the workplace, depend in authority and expect the people in authority to direct them. In order to be successful in managing a culturally diverse organization, it is important to understand that power distance is viewed differently from culture to culture.   IHRM and Diversity Management           In the previous section, HRM was defined as the philosophy, policies, procedures, and practices related to the management of an organization’s employees. I believe that diversity management is one of the practices in Human Resource Management. Diversity Management is more active in International HRM.             The increasing number of international firms means that employees are finding themselves to be working side by side with different people from different cultural backgrounds. Interactions between people from different cultures are increasing, as international firms, sell, purchase and outsource in an increasing number of countries, acquire more firms in other countries, and use more international joint ventures and alliances and cross-border reams and task forces.           In the area of Human Resource Management (HRM), managing diversity must be present in all processes. For example, the recruitment process of the organization must reflect its commitment to cultural diversity. In addition, many organizations, are introducing diversity training, in order to ensure that every employee accepts diversity in the workplace. The topic of cross-cultural management always leads to HRM particularly International HRM or IHRM. Broadly defined IHRM is the process of procuring, allocating, and effectively utilizing human resources in a multinational corporation. In the area of IHRM, the management needs to develop HRM practices and policies that consider the cultural background of the employees. For example an international business that seek to expand its operation in China must take into consideration the characteristics of the culture, the values and behaviors of the employees that were derived from their culture.             Cultural diversity management has made me realized that the world is becoming flatter. I think that cultural diversity in the workplace will continue to increase. As people become more mobile and as businesses become more global, diversity in the workplace will become more common. Perhaps the key to successful cross-cultural management is respect and being open-minded. As a future manager, I should develop a respect for every person, regardless of his or her cultural background. I should also learn to be more open-minded. Instead of judging people, I must learn to accept that every individual is unique. Everyone can contribute to the success of the organization.             Managing Change           Management of change is defined as a structured approach to individual, ream, organization, and society transitions. The aim of management of change is to move the target from a current state to a desired state. Management of change is primarily focused in managing the people side of change. Management of change involves the adaptation of new business model into an organization in order to transform.           I learned that change does not happen overnight. It is a process that must be properly planned. The major focus of managing change is managing the people within the organization. I believe that in order for a change initiative to be effective, the people within the organization must be educated and informed about the planned change and why it is important. Management of change must be continuously monitored for effectiveness and must be implemented throughout the organization and must be adjusted in order achieve the desired goals. Management of change is defined as a structured approach to individual, ream, organization, and society transitions. The aim of management of change is to move the target from a current state to a desired state. Management of change is primarily focused in managing the people side of change. Management of change involves the adaptation of new business model into an organization in order to transform.              Core Concepts           The organization is viewed as a system that is comprised of the following components: § Task § Individuals § Formal organizational arrangements § Informal organization             In order to change, an organization requires an appraisal of its internal and external environment. Analyzing threats and opportunities, strength and weaknesses, and resources is the cornerstone of strategic management. One of the core concepts of managing change is the identification of change need. I learned that in order for the organization to facilitate change and to be successful in implementing change, identification of the change need must first be accomplished. In managing change, it is also important to deal with the factors that cause resistance to change. This entails the management of the people side of change. People resist change because of different reasons but it all boils down to the fear of the unknown. People resist change because they are uncertain about the impact of the change. They resist change because they are not well informed and educated.             I learned that change is a process that requires a deep understanding of the organization and its components. Change can be caused by different environmental factors. For example, many organizations are introducing flexible working arrangements and family-friendly policies. This change in the aspect of work can be caused by the changes in the demography of the labor force. This can also be caused by the desire of the organization to attract and retain its employees and to improve its production. Whatever may be the reason behind a change, the change agent and the management must have a proper understanding of the organization.   Recognizing and Diagnosing the Need for Change           Recognizing and diagnosing the need for change requires an in-depth analysis of the organization and its need for change. Before the organization embarks on a change process, the management must first find out the current state of the organization and its needs. The need for change is often propelled by a demand from either the internal or the external environment. Change strategists and implementers must understand the organization’s operations, how it functions in its environment, what its strengths and weaknesses are and how it will be affected by proposed changes in order for them to craft an effective implementation plan. Recognizing and diagnosing the need for change is a very crucial stage in the change process, as it will direct the organization the right path. If the initial stage of the change process (recognizing and diagnosing the need for change) is not sound, no amount of implementation know-how will help the organization in achieving its goals. Organizations recognize and diagnose the need for change by conducting the following: § A full financial audit of the organization § A structural survey in which different departments and their staff are identified § A skills audit of the organization’s personnel § A marketing analysis of the business within the industry It will also be helpful, if the implementers at this early stage of the change process systematically examine the forces for and against change. Change will not occur unless the forces for it are stronger than those resisting it.             I learned that the initial stage of the change process, which is the identification of change need, is very crucial. The need for change must be identified and this must be communicated to all levels of the organization. One way of identifying the need for change is by conducting an internal and external analysis such as SWOT analysis.   Managing People Issues           The implementation of change is always faced with challenges and difficulties, especially when the people in the organization resist change. In order to deal with employee resistance organizations according to Randall (2004) need to energize, enable and empower their people. By energizing we mean creating a goal that will prompt or energize everyone in the organization. Also the management must be able to lead from the front by showing integrity and establishing trust. Enabling involves invigorating the top team by strengthening its leadership capability. In addition, in order to enable the people, the organization must build a culture of empowerment by opening the door to ideas. Moreover, the organization must also make sure that the employees understand the change process and reasons behind it. Empowering the entire organization means aligning HR processes and practices to improve capabilities. The organization must also seize opportunities and empower employees in order for them to adapt with change rapidly.   Management of Organizations           The concept of Management of Organizations (MO) is about the analysis and management of people in organizations with particular emphasis on behavior. This learning journal aims to present a collection of the things that I learned from the course. The focus of this learning journal is about organizational behavior and concepts such as group formation and structure, organizational structure and design, organization development and organization change.   Group Formation           One of the interesting topics in the course is the formation of groups. From the discussion in class, I learned that groups are essential to the success of organizations. Organizations today are forming different groups to fulfill various tasks. A group is a distinguishable set of two or more people who interact, dynamically, interdependently, and adaptively toward a common and valued goal who have been assigned specific roles or functions, and who have a limited life span or membership. The members of the group have different and unique roles, each role is critical to the success of the group. Every group undergoes group development. The stages of group development are forming, storming, norming, performing, and mourning. It is important that to understand the stages of group development in order to effectively deal with the issues and challenges.   o   Forming – during this stage of group development, the members get acquainted with each other. During this stage, the group establishes ground rules. o   Storming – this stage is characterized by a high degree of conflict within the group. I consider the storming stage as the most crucial stage. In this stage, the group members and the leader have to resolve the issues that may affect the group in the future. If the group is unable to resolve the issues, it may be disbanded. If the issues are resolved the group will become cohesive. o   Norming – during this stage, the group becomes more cohesive and identification as a member becomes greater. During this stage, the group members start to develop relationships. o   Performing – during this stage, questions about group relationships and leadership have been resolved and the group is ready to work. Each member devotes his/herself to getting the job done. o   Adjourning – during this stage, the group will cease to exist. This is because it has met its goals and is no longer needed.                         I found the topic group formation interesting and educating. I learned that in order for an organization to succeed, it must resolve all the issues and challenges that arise at every stage. Each member plays an important role in the success of the group.     Group Structure           Another interesting topic is group structure. Group structure refers to the characteristics of the stable social organization of the group, the way the group is ‘put together’. I learned that the way the group is structured affects its performance and ability to function. Through class discussions, I learned about the factors that affect group performance. o   Size – the size of the group affects its ability to function. I learned that is best to maintain a small group with 10 members. In a small group, everyone feels needed and everyone is given responsibility. o   Nature of the task – the nature of the task affects the group’s ability to function. The task should contain the right amount of challenge that will excite and push members to perform better. o   Resources and support – adequate resources also affect group performance. o   External recognition – rewards and recognitions are linked motivation. The members must feel that their work and efforts are valued. o   Group composition – it is important to maintain a small group with diverse talents and skills.             I learned that the structure of the group is also important in its success. Every member of the group has a set of activities to perform. Norms are also important. Norms are standards shared by the membership of a group. They have certain characteristics that are important to group members. Group cohesiveness is another important factor. Cohesiveness is regarded as a force acting on the members to remain in a group.   Organization Structure and Design           Organization structure refers to how the organization is put together. Organization structure and design reflect some of the underlying ways that people interact with one another in and across jobs or departments. I learned that the structure of the organization must coincide with its goals and objectives. The allocation of duties, tasks and responsibilities between departments and individuals, an element of organization design, must also take the organizational goals and objectives into consideration. Organizations have traditionally structured themselves into three forms: o   Functional – the functional structure is the most widely used. The organizational chart resembles a pyramid with the senior management at he top, middle and lower managers spread out directly below, and workers at the bottom. The organization is usually subdivided into different functional units, such as engineering, research, operations, human resources, finance, and marketing. o   Self-contained Unit (Divisional) – the self-contained unit groups organizational activities on the basis of products, services, customers, programs, technical processes, or geography. o   Matrix – matrix structure is basically a combination of functional and self contained structures. The aim of organizations that adapt this structure is to maximize the strengths and minimize the weaknesses of both structures.             I think the most important thing that I learned from organizational structure and design is that the structure and design of the organization must match its goals and objectives. Any structure can be effective if it is used in accordance with organizational goals and objectives.     References   Brewster, C., Harris, H., and Sparrow, P. (2004). Globalizing Human Resource Management. New York: Routledge.   Burke, R. & Cooper, C. (Eds.). (2004). Reinventing Human Resources Management: Challenges and New Directions. New York: Routledge.   Buyens, D. & De Vos, A. (1999). The added value of the HR department. In Brewster, C. & Harris, H. (Eds.) International HRM: Contemporary Issues in Europe (pp.31-47). New York: Routledge.   Clardy, A. (1996). Managing Human Resources: Exercises, Experiments, and Applications Workbook. Mahwah, NJ: Lawrence Erlbaum Associates.   Schuler, R. S., Dowling. P. and De Cieri, H. (1993). An Integrative Framework of Strategic International Human Resource Management. Journal of Management. 19, 419 – 459.   Sims, R. (2002). Organizational Success through Effective Human Resources Management. Westport CT: Quorum Books.   Ulrich, D., Brockbank, W., Yeung, A. K. and Lake, D. G. (1995). Human Resource Competencies: An Empirical Assessment. Human Resource Management 34(4), 473-95.   Vernon, M. (2002). Business: The Key Concepts. New York: Routledge.   Wright, R. M., McMahan, G. and McWilliams, A. (1994). Human Resources and Sustained Competitive Advantage: A Resource-Based Perspective. International Journal of Human Resource Management, 5(2), 301-326.                                               Credit:ivythesis.typepad.com

Learning Journal :presents a collection of the learning journal entries that I have made all throughout the course

Part One: Learning Journal Introduction This paper presents a collection of the learning journal entries that I have m...

Organisation Structure and Effectiveness

Part1   <li class="MsoNormal"> What is 	the difference between a task force and a team? Between liaison role and 	integrating role? Which of these provides the greatest amount of horizontal 	coordination? </li> In essence team and task force are established on the basis of working on a distinct, defined task. Complexity is their main difference wherein task forces have tasks that are unique and with duration that is finite. After accomplishing a task, a task force will be disassembled while teams don’t. Liaison role is more tended on coordination of the diverse groups while integrating role is more particular with synergism where result is known to be greater than the sum of individual effects or capabilities of groups. As such, integrating role requires greater horizontal coordination because of the necessity to synergistically combine efforts of people and groups to achieve organizational goals.   Part2 <li class="MsoNormal"> What are 	some forces that influence environmental uncertainty? Which typically has 	the greatest impact on uncertainty – environmental complexity or 	environmental change? Why? </li> Organisational decisions are built upon quality, dependability and cost as the general influences on environmental uncertainty. For example, decisions whether to be locally responsive will depend on the resources and capability of the company to sustain and respond to local market requirements. With this, decentralization or centralization decisions will be based. Hence, environmental complexity impact uncertainty more than environmental change. This is because complexities often involves organizational structure and level of decision-making and always incorporate resources requirements.   <li class="MsoNormal"> Why do 	organizations become involved interorganizational relationships? Do these 	relationships affect an organization’s dependency? Performance? </li> Eiether competitive, legal or symbiotic, interorganizational relationships are converged into so that industries could influence its environment thus to achieve contingency. Such relationship will only negatively impact organizations when one becomes opportunistic while also self-limiting strategies to broaden resource-base or diversification. Because interorganizational relationships aimed at effectively managing uncertainty and ambiguity, performance could be affected. Safeguarding performance means balancing power influences toward the relationship through formal control and coordination.      Part3 <li class="MsoNormal"> The 	concept of business ecosystems implies that organizations are more 	interdependent than ever before. From personal experience, do you agree? 	Explain. </li> I agree because as functional processes increasingly become more diffused, the tendency is to embrace interdependence. Survival of businesses is the main driver. This is to say that opening up the supply chain is required because of vulnerabilities. Co-existence therefore poses advantages for each business that is why more and more business are recognizing, dealing and embracing the concept. A perfect example would be the supplier-manufacturer relationship.    Part4   Find three different consumer products, such as a shirt, a toy, and a shoe. Try to find out the following information for each product, as shown in the table. To find this information, use Web sites, articles on the company from various business newspapers and magazines, and the labels on the items. You could also try calling the company and talking with someone there.   		Product 		What country do materials come 		from? 		Where is it manufactured or 		assembled? 		Which country does the marketing 		and advertising? 		In what different countries is the 		product sold? 		1. Lacoste 		Materials are from France while dyes for colouring 		are from Africa 		Production are present on countries including Peru, 		Morocco, Indonesia, Romania, Italy and El Salvador   		Lacoste is headquartered in Paris where brand 		management decisions came from like marketing and advertising 		Polo shirts are sold in over 110 countries in 		America, Europe, Australia, Asia and Africa 		2. Barbie dolls 		Raw materials come from Taiwan and Japan 		Assembly takes place in Philippines, Indonesia and 		China and design and final coat of paint come from United States 		Mattel Inc. which is headquartered in El Segundo, 		California decides for marketing of Barbie dolls 		In over 150 countries, Barbie dolls are sold which 		include 		3. Nike 		Nike sourced their raw materials from China, Japan 		and Paris 		Manufacturing was in Indonesia, Vietnam and China 		Most marketing decisions are carried out in its 		Oregon headquarters 		Nike sells products to over 25, 000 retailers in the 		US and in 160 countries worldwide   What can you conclude about international products and organizations based on your analysis? At the onset, I can tell that luxury commodities are commonly sourced and assembled in low-cost countries, mostly Asian countries. This is in fact cost reduction strategies of these companies. Production is also dispersed while critical decisions concerning the products basically come from the headquarters. Global standardization is also critical but there are companies that pursue multidomestic strategy like Nike. I can also tell that a strong brand tends for geographical expansion. Efforts to build capabilities originates from the headquarters as decision-making is its main responsibility. Strategizing is commonplace where globalisation of functions and/or processes is imperative. This is done because to create and stabilise global presence.         Credit:ivythesis.typepad.com

Organisation Structure and Effectiveness

Part1 What is the difference between a task force and a team? Between liaison role and integrating role? Which of these provides the...

Organizational Structure and Improvement of San Miguel Corporation

ORGANIZATIONAL STRUCTURE AND IMPROVEMENT       In this article we choose “SAN MIGUEL CORPORATION” this company shows a good organizational structure and improvement during worldwide recession. The data shows their extensive background characteristics as well as limitations of their company in organizational restructuring.  Since organizational structure and staffing is the backbone of success in every company, it is important to dwell into levels and department of a certain company. Putting an individual into a certain position in an office requires certain qualities or qualifications at first hand. 4.1 Company Background – San Miguel Corporation was established in 1890 as a maker of the finest brewery in the Philippines. With over 100 years of continues leadership and services. Today this corporation has diversified into manufacturing of food and beverages, juices, processed meat poultry, dairy products, animal feeds, coffee, and various products of about 400 bestselling items distributed in the entire Southeast Asian region. The company has over 100 offices in the Philippines and Southeast Asia Including Vietnam, Indonesia, Malaysia and Hong Kong. Their partners are World leaders like, Hormel Corporation in USA, Yamamura Glass Japan and Qtel telecommunication of Qatar. In continuous expansion San Miguel Corporation also venture into mining, real-state and power generation, telecommunication and construction. 4.2 Characteristic of current organization – San Miguel Corporation has a strong organizational structure that encompasses the success beyond any other company in the Philippines that is why this corporation has become the leader since the start in the field of manufacturing and beverage distribution in Southeast Asia. The President and Board of director and top rank officers believe that corporate governance is a necessary requirement to continuously create awareness that leads to the success in product market presence as leaders. Therefore they are the one who participate in awareness promotion thereof in all aspect of business. They embodied to appoint highly competent individual with honesty and integrity and passion.  They have built a strong foundation of competent employee to assure the finest delivery of products and services. San Miguel Corporation upheld and complies with the provision standard requirement of the government to protect their employees in giving them above industry salary and wages. According to a recent interview in television ABS-CBN their brand and their people are the secret to their success in fact they have set the trends in giving all the benefits higher than as of regulated by the government.  While strengthening their vision they also develop social responsibility awareness by giving various livelihood and health program to answer issue of poverty in the Philippines.  This is the project of The San Miguel Foundation Team. 4.3 Limitation of current organization structure – During the 90’s the transition changes of their Chief executive officer has somewhat delimit the current organization structure the division of loyalty between employees started to rise. Some implementation of rules and regulations have been changed by the newly appointed CEO which In this large and highly respected company some department have created a controversy of corruption specially in accounting department that causes a dilemma and intrigue in the organization structure therefore many employees are forced to resign and retrench to clean up the department.  Another limiting factor of their organization is that nowadays they may still be affected in worldwide recession which causes retrenchment in some branches in other countries, hiring of employees is in the process of a project basis or agency manpower recruitment may somehow delimit the organization flow of the company.  Therefore contractual basis have been observed in the rank and file class. 4.4 How to improve the organizational structure- Until now we can say that this corporation still holds a strong foundation and leadership backbone it its entirety however we still recommend the improvement in the provision of organization restructuring. During stock holders meeting the CEO and Corporate Secretary need not monopolize the decision making process and the flow of the meeting. The voting process of appointing top rank position should be generally available for stock holders and not only for the Board of directors. To further strengthen the success of the company the welfare of their employees should be the utmost priority by giving the same benefits and a chance of newly hired rank and file employees for regularization and probationary opportunity which is nowadays have not been given chances to grow as part of this company.  Improving organizational structure in a democratic manner should also be observed at hand.  The existence of rules and regulation should be focus on Employees welfare and not in hierarchal control.                                                                                                 Credit:ivythesis.typepad.com

Organizational Structure and Improvement of San Miguel Corporation

ORGANIZATIONAL STRUCTURE AND IMPROVEMENT In this article we choose “SAN MIGUEL CORPORATION” this company shows a good organizational...

CYC Pte Ltd and Haw Pte Ltd their Organizational Structures and Culture and it’s Effect on their Business Performance

Task 1 :  1a : For both organizations sampled in your investigation , compare and contrast CYC Pte Ltd and Haw Pte Ltd different organizational structures and culture. 1b : Analyze the relationship between an organization’s structures and cultures as well as the effect on their business performance  Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management.  Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure.  In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. Organizational structure of Company Haw Pte, Ltd is a customer/market organization.  The company structure is divided in a way where the personnel can be proficient in meeting the needs of their different customers.  They have the following divisions: Healthcare Division – Hospitals and Primary Care  Healthcare Division – Consumer Retailing  Sport and Fitness Division  Cosmetics and Beauty Division Within each division , there are departments for Accounts , Production , Marketing and Personnel. The business has a formal structure with departments (Sales , Personnel , Accounts , production , planning , drivers and store) with Jack the owner in control of all levels of the business.  Hence  CYC Pte, Ltd. has the typical hierarchical organizational structure.  A hierarchical organization is an organizational structure where every entity in the organization, except one, is subordinates to a single other entity.  Each of the companies realizes that there has to be change in order to accommodate the changing needs of their industries.  The organization structure which CYC Pte Ltd needs to adopt is possibly a matrix structure.  A matrix structure is the combination of two or more different structures.  In the case of CYC Pte Ltd.  There will not have to be any duplicating of functions.  The different departments will cross-work with each thus sharing expertise whilst maintaining functional departments.  For Haw Pte Ltd.  Perhaps adopting a new work philosophy such as Kaizen management would be advantageous to the company.  With this, the organization will not have to change, simply the management style will have to do the changing.  In Kaizen management, all tiers of the company will be involved with helping promote changes.  With this method the company can easily cope with the erratic changes in their industry. The organizational structure of CYC Pte Ltd is a rigid one.  This organizational structure worked when change was still slow.  But now, the world is no longer so predictable and solutions are not so obvious.  These rigid, old structures are no longer sufficient for the new complex challenges facing organizations nowadays.  CYC Pte Ltd has recognized changes in their industry and with the new ‘boss’ stepping in soon, there has been recognition of the need for adapting to these new situations that are facing the company.  For Haw Pte Ltd, the existing organizational structure works well for the company.  The new managing director realizes that the company needs to address the issues they face when there is a sudden change in their industry.  For this, it would be easier to adopt a new managerial approach.  Kaizen seems to be a good option for this company because the company culture encourages the employees to be innovative.  Kaizen encourages this in that every employee is encouraged to contribute to suggestions for positive change within the company and to the issues facing their departments and even their selves.  Both companies’ employees would benefit from training.  This will help the staff learn about the new methods being instilled and how it will benefit their bottom lines.  With a well trained staff, inadequacies will be overcome and the targets set will be attained.  Change is the only constant in today’s world.  Companies need to catch up and change along with these changes.  It is an each to their own solution.   References: Awati, Kailash.  Project management in the post-bureaucratic organisation.  Retrieved 8 June, 2011 from http://eight2late.wordpress.com/2009/11/06/project-management-in-the-post-bureaucratic-organisation/ Organizational Structure.  Reference for Business.  Retrieved 8 June, 2011 from http://www.referenceforbusiness.com/management/Ob-Or/Organizational-Structure.html Credit:ivythesis.typepad.com

CYC Pte Ltd and Haw Pte Ltd their Organizational Structures and Culture and it’s Effect on their Business Performance

Task 1 : 1a : For both organizations sampled in your investigation , compare and contrast CYC Pte Ltd and Haw Pte Ltd different organi...