Assessment of Organizational Culture

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Assessment of Organizational Culture

Question 1

Organizational architecture is both the physical structures and order of seniority within a company while corporate culture refers to the visions, beliefs and habits that characterize the behavior of the employees from such an environment. Whereas the former influences the thinking of the members of staff, the latter facilitates the realization of the firm’s goals. As such, corporate culture is the shared opinion about the best way to implement business policies and these are always influenced by the formal reporting procedures. Therefore, they are interrelated and are vital in the success of any organization.

Yahoo is a leading fortune 500 company that prides itself in creating a favorable atmosphere for its employees to be creative (Samson, Daft and Ananthram 157). As such, its offices are designed in stylish patterns to make them attractive. Humorous stickers are posted at certain areas of their buildings covering different departments. In addition, the cubicles are made to resemble lounges for ease of communication among workers and to enable them to operate in a fun environment. Furthermore, most of the engineering units have some form of autonomy that simplifies the decision-making process although there is an existing a clear chain of command that is headed by their current CEO, Marissa Mayer. This has led them to adopt a spontaneous corporate culture whereby staff members are easily inspired to come up with profitable technological advancements that help to build the brand’s reputation. Moreover, it has resulted in a consultative approach in the discovery of new online portal modifications. It has also increased the desire of workers to work from the office as opposed to telecommuting thereby developing a cohesive workforce that manages to achieve set targets. In this way, Yahoo has been able to have a competitive edge over its rivals.

Question 2

The problem at Always Round Tire is that Billy Riggan does not delegate some of his duties to the research scientists. Since he has awarded himself the authority to make product innovation choices, his subordinates are not involved in such decisions. Hence, their contributions are limited as they are only engaged whenever the verdict has been made. This shows a lack of faith in their judgments and diminishes their commitment to the projects. In fact, it seems that he does not even allow them to make suggestions about possible product development areas. This hinders the company from exploring alternative product creations. As such, there is a communication barrier between the two entities and this leadership style tends to alienate junior staff members (Marturano and Gosling 36)

Therefore, the employees have developed resentment towards Mr. Riggan, as he appears not to value their input. Their motivation levels are low and their feedback mechanisms are weak. Similarly, they have learnt to reduce their innovative skills since they know that their opinion will be overlooked by him. This has resulted in a decrease in productivity and thus presented them with an increase in a lot of spare time. Due to this, they have resorted in finding other ways to remain active while in the workplace. Thus, the research scientists have settled on playing tennis during office hours as a way of passing time. Unfortunately, this has meant that Billy Riggan remains consumed by the huge workload of analyzing and sorting out the innovations that he would like the firm to pursue. However, with such huge responsibilities solely on him, he is overworked due to the strain of such a work ethic. This atmosphere is not healthy as it denies the organization the benefits of having teamwork.

Question 3

Promotions are meant to increase ambition and advance the careers of employees. At Always Round Tire, while the criterion to base such actions on seniority rather than merit is only applicable to shop floor supervisors and team managers, it is unsuccessful in higher-level positions because these are visionary areas and demand more intellectual capacity. For lower-level management portfolios, the responsibilities required are minimal and are often based on a common sense approach. They do not require complex thinking abilities and that is why such individuals are not thoroughly vetted before these appointments are made. In addition, they oversee a leaner workforce with the impact of their decisions being felt at single entities.

However, senior executives need to have the managerial acumen to interpret current business activities alongside the vision of the company. It is their role to make financial forecasts based on market trends in order to place the firm at a strategic advantage to its competitors. Furthermore, these higher-level positions at Always Round Tire are tasked with the opportunity to spend large budgetary allocations in specific projects designed to generate favorable return on investments. Thus, any slight miscalculation could prove costly. Likewise, they have to assess accounting records and make company-wide decisions affecting several workers, suppliers and investors as well. They also deserve to possess good interpersonal skills to keep employees focused, motivated and be able to maintain their clientele through building a great brand reputation (Lussier and Achua 11). Therefore, seniority alone cannot be the basis for making promotions at these levels. Having the proper education and relevant training is vital at this stage since it empowers them to make risky but prudent choices in the day-to-day running of the firm.

Question 4

Free rider problems arise when individuals reduce their personal input upon being made to be part of a team yet they are quick to claim a share of the benefits when the group is rewarded (Schmid 95). The economists’ concern on this phenomenon is legitimate because it highlights the exploitation of some entities thereby denying the society optimum productivity of goods and services. Such practices of offering bonuses to teams rather than single parties tend to make some people opportunists. Thus, they develop a habit of putting less hard work and investments in their operations at the expense of others. This provides them with an undue advantage over their competitors as it reduces their expenses while boosting the revenues.

Similarly, it breeds dishonesty among institutions thereby causing a breakdown in morals. By people intentionally declining to pool their resources and responsibilities while still expecting to benefit from the incentives that may be accrued once other members participate, it expresses a form of fraud. Consequently, it amounts to negligence, overtaxing and overworking of others. When such a strategy is pursued by several firms or people, it may lead to the collapse of an industry due to the misappropriation of funds. This makes it a threat to the economy as consumers may receive substandard wares or services as well. Therefore, this needs to be corrected by halting the issuance of group incentives or representation to enhance accountability in the market place. Such a drastic step would create a healthy and competitive environment where success is merited rather than acquired through luck or chance. Furthermore, it would improve the work ethic of many stakeholders resulting in a rise of economic fortunes within a country.

Question 5

A 360-degree evaluation is a type of feedback that involves all members of an organization regardless of their position. These could be managers, subordinates, supervisors or peers. Sometimes, outside sources may be used to obtain personal information. Thus, such a system is recommended since it presents an opportunity for the company’s strengths and weaknesses to be measured. In particular, it enables the participants to have different perceptions about their performance thereby leading them to devise various strategies for increasing their productivity. Additionally, it aids in the development of a cohesive corporate culture where workers are focused on a common goal that compliments the organization’s vision. Likewise, it offers a template of future performance to the management who can then use the results to make both relevant financial and administrative plans. Such knowledge is especially useful to investors as they can be prepared for any prospective investment decisions that may be required later on.

Nevertheless, the implementation of such a system may encounter various challenges. It makes people biased since they are forced to be the judges of their peers some of whom are their friends (Muchinsky 238). This would lead to claims of favoritism hence laying a foundation for animosity in the workplace. Similarly, it would be difficult to measure the individual output of staff members since most of the work is done in groups making any success or failure a team effort. Moreover, acts of incompetence would be common since those who are assigned to assess their peers will be motivated by the wages to be made for accomplishing their tasks rather than the actual content of the whole exercise.

Question 6

Responsible stewardship is beneficial to any firm because it increases the fortunes of workers, stakeholders and customers alike. It enhances conflict resolution among employees through initiation of a consultative, impartial and decisive process. Such an approach leads to the decline of tensions in offices and creates an environment where people work as a team. Moreover, it enhances the setting of realistic goals and the development of strategic work plans that simplify decision-making. Hence, it improves the interaction between management and staff members thereby boosting their morale and commitment to the accomplishment of the firm’s goals. This in turn raises the productivity of the workforce resulting in lower turnovers and higher recruitments due to the confidence that laborers have in the company. In addition, it warrants a reduction in making mistakes. Rather, it improves the effectiveness of implementing business policies by eliminating redundancies and encouraging productivity, which increases its profitability.

Furthermore, it aids in career advancement since a clear succession plan based on merit is initiated and retained. Consequently, it promotes ethical behavior that is integral attracting and retaining customers as well as building loyalty to the brand. This type of leadership is also important in securing credit facilities for capital-intensive projects, as its stability would prompt investors to spend their money on the securities on offer. Thus, the organization would have the resources to meet all the financial obligations for both its short and long-term needs. The need for streamlining of operations would make such form of stewardship necessary in introducing and carrying out changes. This would be done with the support of colleagues, as they trust the individuals who will then ensure that the results set are met through the participation of all employees.

 

 

 

 

Works Cited:

Lussier, Robert, and Christopher Achua. Leadership: Theory, Application, Skill Development. Mason, Ohio?: Thomson/South-Western, 2004. Print.

Marturano, Antonio, and Jonathan Gosling. Leadership: The Key Concepts. London: Routledge, 2008. Print.

Muchinsky, Paul. Psychology Applied to Work: An Introduction to Industrial and Organizational Psychology. Belmont, CA: Thomson/Wadsworth, 2006. Print.

Samson, Danny, Richard Daft, and Subra Ananthram. Management 100: Principles of Management. South Melbourne: Cengage Learning, 2011. Print.

Schmid, Andrew. Conflict and Cooperation: Institutional and Behavioral Economics. Malden, MA: Blackwell Pub, 2004. Print.

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