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Chester Barnard felt that organizations require continuous communication and respect among all employees and employers. In the case study, it states that, “AMAZE INC., team leaders tried to facilitate communication by bringing together AMAZE INC. employees from various cultures and various areas of expertise.” According to Barnard’s theory, would welcome a more all-inclusive environment where members are allowed to share their ideas and concerns. This brings an organization together and enforces a strong relationship between employees and employers.
Motivation – Barnard believed that an organization works best if they establish an organizational objective. When they say, “bonuses are given to teams who develop winning products and not to individuals,” it encourages employees to do their job and have fun while contributing to the company and feeling appreciated. Barnard believed that employees will work better when they believe that they will benefit from accomplishing goals, such as the bonuses. This motivates the employee and to creative on their own and bring new ideas to the company. By motivating the employees to create new projects, it allows employees to value and feel more accomplished with their work.
Coordination – Follet argued that coordination was essential to a manager’s function. The AMAZE INC. ORGANIZATION believe that it is important that “all employees are encouraged to work together, rather than to simply work under the supervision of a manager.” Follet believed that when a manager encourages their workers to maximize their productivity that it should not be forced, but should be emphasized through group efforts. AMAZE INC. includes all their workers to coordinate to accomplish their goals and be creative together.
Self-Management – Follet believed that individuals would prefer to manage themselves than by one person. She stressed the importance of managing one’s self by having initiative and by having collaboration. They give “employees the option to direct themselves for 20 percent of their time… [to] work on projects of their own choosing without management approval.” The company trusted their employees enough to give them time to work on projects that did not need approval. This allows the employees to feel trusted and the managers and workers to be viewed as partners instead of superiors.
Decision-Making Process – Follet stressed the importance of employees being included in the decisions, rather than just the managers who may not know their tasks. She believes that people should be involved in the decision-making process of their own tasks that they will perform. At AMAZE INC., “leaders get team members talking about problems and they generate solutions together.” This allows for input from employees and employers to solve issues that may occur from both parties.
Based on the case study, AMAZE INC. would be better suited to an organic structure for the following reasons based on the elements of their organization’s structure:
Work Specialization (Social Specialization) – AMAZE INC. demonstrates qualities of a social specialization, which refers to individual specialization than job specialization. Social specialization is an element of an organic organization’s structure. Employees at AMAZE INC. are performing tasks that cannot be easily replicated. They need to be creative and think beyond a simple, specific, and repetitive task. As stated in the text, “each [employee] will share in the department of new product ideas within the development team,” which is typically not a easy task for just anyone.
Decision-Making Source (Decentralized Decision-Making) – AMAZE INC. uses a decentralized decision-making source since authority is not concentrated at a higher level, but spread at all lower levels. Employees at AMAZE INC. have more control and power over their tasks since “AMAZE INC. allows employees to take charge of their own actions.” Comparing this to a centralized organization, they would typically require longer timeframes for decisions being made. A decentralized decision-making system allows employees to feel more confident in their work as they do not need approval to begin working on something new which follows their goals.
Levels of Administration (Flat) – Traditionally, an organization becomes successful, they add levels of administration to create a hierarchy. Now organizations are flattening their hierarchy to spread the decision-making authority down to lower levels. AMAZE INC. follows this modern idea of having a flat structure rather than a tall structure. AMAZE INC. believes that, “often it is the employees who initiate the innovations and it is the employees that have control over a product’s completion, rather than leaving it up to the judgement of a higher-level manager.” Their employees have the responsibility to use their initiative and judgement to decide on whether it’s a good idea to commence a product idea or not.
Formalization (Informal) – The level of formalization in organizations depends on how strict the rules, regulations, procedures and how the job is performed. The degree of formalization shows how the jobs within the organization compliments the environment of the workplace and the employees. The level of formalization of AMAZE INC. is informal. Compared to a highly standardized organization, AMAZE INC. is not as rule-directed as an organization that needs the performance to be consistent and reliable.
Departmentation (Divisional Departmentation) – Departmentation is the division of employees based on their major function and purpose into separate units. Divisional Departmentation involves separate groups of employees based on products or services they produce. Each department will specialize in a function in a product by creating new ideas. AMAZE INC. “is regarded as an innovator and contributor of countless new products and ideas.” Divisional departmentation works well along with this organization since it compliments their goals and what they want to accomplish by allowing employees to produce and create new products. Their organization’s “success has been built on its ability to continually develop new ideas and new products.”
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