Is it inevitable that an organisation must become bureaucratic - Essay Example

Understanding and Managing Organisations Contents Contents 1 Question 2 2 Question 3 5 Question 4 9 References 14 Question 2 Bureaucratic organisations come into existence. Is it inevitable that an organisation must become bureaucratic? Bureaucracy as a term had gained significance since many years. This aspect was an essential component of early age industrial empires of China and Rome. There were functionaries of these administrative bodies who were responsible for governance of thousands or hundred miles of territories, which were distinct from the main empire. Bureaucratic responsibilities in this framework were confined. The main responsibility of preindustrial government was to protect their territories from any possible attacks by external enemies. Defence was usually regarded as an expensive factor and the empire was highly dependent on extent of bureaucracy in order to collect taxes. Preindustrial bureaucracies was not only restricted to collecting taxes or maintaining order, but it was even inclined towards economic activities. Bureaucratic structures were not only witnessed in context of imperial governments but also in realm of religion. The growth of bureaucratic organizations was initiated from religious and political domains (Gay, 2000). This eventually got incorporated into private enterprises with the growth of complex and larger economies. During 19th century it was observed that scope of manager became wider. The reason behind this trend was employment of large scale workers. Occupational specialists were also growing during this time period because of technological advancement. Increasing complexity within organizational structure also facilitated territorial expansion. This in turn gave rise to wide array of administrative difficulties. Bureaucratic organizations emerged due to changes in scope and scale of firms. Range of firms from retail stores to steel mills required hundreds or thousands of employees, who can accomplish set tasks within specified time frame. Organizations started to recruit wide scale of employees so as to divide tasks amongst various worker groups. Social and economic changes were initiating problems for enterprises but it was even outlining mechanisms to address these issues. Automobiles and railroads enabled managers to travel across organizational units to supervise team members (Schiller, 2008). Communication technologies helped managers to allocate tasks and monitor performance of various geographical sub-divisions. These modern technologies were a way to organize workforce and enhance level of employee productivity. Organizational revolution had been started in 20th century. The approach of bureaucratization had led to well transformed work culture. Bureaucratic firms are the ones which exercise tight control on organizational members. This form of tight control was essential because enterprises were expanding at a rapid rate and encompassed a wide scale of employees. Management needed to retain employees as well as monitor organizational operations. Taylorism concept is able to explain the growth of bureaucratic organizations. On the basis of this concept it can be stated that bigger scale of mass production was sub-divided into smaller units. As per Taylorism approach, focus was on increased productivity which could be measured and employees having lower skill set could be easily replaced. Bureaucracy though decreases workplace flexibility but it was essential to manage efficiently large organizations (Allan, 2012). This factor even resulted into functionality rationality and this in turn increased its overall importance. It was viewed as the basis of controlling complex scenarios, enhancing level of efficiency and regulating societal dimensions. It is inevitable that the organization to become bureaucratic The organization with bureaucratic structure experiences a strict maintenance of rules and regulations in the organization. The organization under bureaucratic structure abides by the rules and regulations of the organization and the principles are formulated for benefitting the employees in the organization. But it is sometimes unfavourable and unsuitable for the employees working in the organization since the employee’s feel that it lacks flexibility and they cannot experience freedom in their work. The problem of bureaucracy in the organization is that it lacks innovation in the adoption of new techniques and technology. The bureaucratic organization formulates the codes of conduct that clearly distinguishes between the superior and he subordinate employees of the organization. Bureaucratic structure is not equally suitable or favourable for all types of organization (Willmott, 1993). The success of bureaucracy in the organization can be explained with the help of the example of Mc Donald which is considered as the most well-known fast food chain outlet. The features that is adopted by Mc Donald in performing its business or operations are based on the calculability, efficiency, predictability and also controlling the employees working in the organization. The success of Mc Donald for being considered as the largest chain burger seller of the world has supported the implementation and adoption of bureaucratic structure in the organization. The preparation of food by Mc Donald’s is very much routinized and disciplined that encouraged Mc Donald to carry out its business with the adoption of bureaucratic structure in its organization. Although Mc Donald have encountered lot of criticism that it requires very less skill and creativity and the employees working in Mc Donald’s are very poorly paid. But the strict organizational rules and regulations followed by Mc Donald have helped them in attaining the objective or the goal of the organization that is increase in profitability and the ability in offering satisfaction to the potential and loyal customers of Mc Donald. On the basis of the example of Mc Donald it can be concluded that bureaucratic organization is sometimes inevitable as it provides service routine that assist the workers in performing their jobs or work and thus it increases or develops the level of confidence of the employees working in the organization. Question 3 A strong culture can be used to control behaviour, motivate staff and improve performance and should therefore be encouraged Culture plays an important role in motivating the employees in the organization which in turn improves their performance and productivity. Organizational culture can be defined as the concept through which the members of the organization share their belief, faith and emotions. Organizational culture is termed as the pillar or the base which holds and binds each of the employees to work together for the common purpose or the goal within a specific period of time. The organizational culture is considered as the identity of the employees working in the organization. Factors that influences the development of culture within the organization The factors that influences the development of culture within the organization are the education of the employees since the education serves as the base for culture, the social class and the community of the members from where they belong, religion , profession and family of the members and also the experience that is gained by the members from their past organization . Organizational culture motivates the employees Organizational culture includes the shared assumptions, beliefs and the values that motivate the employees or the members of the organization and it develops a sense of commitment among them. Organizational culture is used as a tool by the senior level management of the organization in transforming the attitude of the employees working in the organization and this is done by transmitting and sharing the beliefs, values and norms among the employees and thus developing a sense of belongingness among them (Harris. and Ogbonna, 2002). Organizational culture influences the performance of the employees in the organization Organizational culture makes the employees feel that they are the part of the organization. Strong culture results in increasing the confidence and commitment of the employees working in the organization and it acts as a tool that motivates and influences the performance of the employees. Organizational culture establishes a relationship between the goals of the management and the goals of the employees working in the organization that helps in improving the performance and productivity of the employees working in the organization. Theory that is related to Organizational culture Figure 1: Hofstede model (Hardy and Leiba-OSullivan, 1998) Hofstede model can be applied for explaining the organizational culture. Hofstede model includes five dimensions or elements that include masculinity versus femininity, power distance, and uncertainty avoidance, individualism versus collectivism and long term versus short term consideration. Masculinity versus feminity in the organization reflects that the organization in which masculinity reflects the organizational culture signifies that the organization is mainly dominated by the male employees whereas the organization in which the culture reflects equality between masculinity and feminity signifies that the organization supports and favours the female employees of the organization (Fang, 2003). Uncertainty avoidance can be used to explain the organizational culture since the organization that faces the uncertainty reflects a strong culture in the organization. The organization with lower power distance signifies a strong organizational culture and the organization with long term consideration are considered to be favourable (Hoogervorst, 2004). Example of strong Organizational culture The importance and the value of maintaining strong organizational culture can be explained taking into consideration the organizational culture of Google. The story behind the success of Google is its organizational culture. The organizational culture of Google is developed in such a way that the employees feel happy and motivated as a result there productivity and performance increases. Google hires, attracts and retains its employees. The employees feel themselves as a part of the organization. Google offers various perk facilities to its customers such as it provides free breakfast, dental care, dry cleaning, gyms and swimming pools, on site physicians and also death benefit to its employees. Organizational culture of Google has helped them in acquiring a better place in the industry (Kunda, 1992). Another example explaining the importance of organizational culture in motivating the employees and improving the performance and productivity of the employees working in the organization is Coca cola focuses on the concept of employee engagement as the key to success. Coca cola offers flexibility and various opportunities to the employees to learn from the organization. The success of coca cola is the consequence of its highly talented employees who are highly motivated. Coca cola in order to motivate its employees offers vouchers and coupons for shopping to its employees on their birthday. Thus from the above example it can be concluded that organizational culture plays an important role in motivating the members of the organization which improves the performance and productivity of the employees working in the organization. The examples of low organizational culture are inconsistency, unrewarding, neglecting the employees working in the organization. In contrast to the statement stated that organizational culture motivates the employee and improves their performance it can be explained that organizational culture only does not motivate its employees. But together with the strong organizational culture a sound pay benefit is required to motivate the employees. A strong organizational culture facilitates the employees in working favourably in the organization and the good pay system induces a sense of motivation among the employees (Lincoln and Kalleberg, 1990). Therefore the organizational culture is required to be encouraged and developed for improving the performance of the employees and the organization. The success of an organization depends on the performance of its employees which can be improved by creating a sound and strong organizational culture. Question 4 Reward systems have to take account of a range of issues in order to be equitable to staff within an organisation. Reward system plays an important and critical role in motivating he employees in the organizaton. Reward system can be defined as the process through which the employees in the organization are rewarded on the basis of the value of the organization. It deals with both financial as well as non financial perspective of the organization. The plan, procedures and the strategies of the organization are designed and developed for maintaining the reward system in the organization. The reward system model of the organization mainly deals with the four perspectives which include the pay, benefits, work environment and learning and development. Pay comprises of the basic pay, contingent pay, long term incentives, shares, cash benefits and bonuses that is paid or offered to the employees or the members working in the organization. The benefits provided to the employees working in the organization mainly consist of holidays, pension, flexibility in the working hours and conditions and health care facilities that is offered to the employees working for the organization. The learning and development includes the training that is imparted to the employees, career development and performance management of the employees and the working environment that includes the leadership, recognition, achievement, job design, quality of working life and talent management. Issues Reward system acts as a tool of motivation and inspiration for the members to work for the organization. But it includes various issues. The issues that are faced by the organization in order to distribute equal pay to its employees are issuing equal pay for comparable worth, issue related to absenteeism, issue of budget with low or minimum salary and the issue related to the increase in turn over. The issue related to comparable worth requires attention of the organization since most of the organization distinguishes and allocates on the basis of male and the female employees working in the organization. Therefore he organization are required to handle this issue by providing or offering equal pay for equal value of work that is performed whether by the male employees or by the female employees working in the organization. Comparable worth is considered as the best method for compensating the job on the basis of the performance, skill and educational qualification of the employees. The bonus that is paid to the employees as a part of the reward system of the organization is also required to be allocated on the basis of comparable worth. The organization faces the issue or problem that is related to absenteeism in designing the reward system of the organization and providing satisfaction to the employees working in the organization. Absenteeism is being faced by the organization when the organization fails to pay adequate amount of bonus and lack of proper reward facilities that is offered to its employees working for the organization. The policies related to the reward system are considered as a tool that influences absenteeism in the organization. When the organization decides to offer reward to its employee’s then absenteeism is considered as an important parameter as compared to providing reward on the basis of performance of the employees. The organization also encounters problem or issue that is related or associated with the budget in providing salary to its employees. The organization is required to provide proper salary to its employees as it acts as a source of motivation for the employees to work in the organization. The organization often fails to motivate its employees due to the lack of adequate budget. The increase in turnover of the employees is due to lack of proper reward system in the organization. When the organization does not provide any reward to its employees for the work accomplished by the employees in the organization it results in the demonization and increase in the turnover of the employees working in the organization. Another issue that is faced by the organization in rewarding its employees is the feeling of intra organizational inequity that is developed among the employees since those employees that perform well may feel less motivated and unsatisfied when they find that they are rewarded on the same level as the reward that is provided to the employees with poor performance (Zanko, 2008). Measure for reducing the issue These issues are important and the issues are required to be minimized by the organization because effective reward system encourages the employees working in the organization. The effectively designed and formulated reward system helps in retaining the employees in the organization. The issues related to the reward system in the organization can be minimized or eliminated by distributing the reward system among the employees working in the organization in such a way that the employees feel satisfied with the reward that is provided to them when they compares the reward of the other employees performing the same job in the organization. The issues related to inequitable distribution of wages can be minimized by the adoption of competitive system of reward and the reward on the basis of performance of the employees working in the organization. This will help the organization in retaining its better performers and this will facilitate in attracting the achievement oriented employees of the organization (Swailes, 2002). Importance The importance of the reward system in the organization can be explained with the expectancy theory model which explains that the motivation serves as a tool for influencing he employees in devoting more effort towards the achievement of objectives of the organization. The performance of the employees is mainly determined on the basis of the combination of effort and ability of the employees. Ability determines the skill and potential of the individual employees. The performance of the employees’ results in the outcome that is the reward offered to the employees and this reward provides satisfaction to the employees working in the organization (Harris, 1998). Figure 2: Expectancy theory model Reward system has the ability to develop the culture in the organization as it provides motivation and satisfaction to its employees therefore it is considered as the important factor in influencing the employees in the organization. The importance of Reward system in the organization can be better explained and analyzed with the example of reward system that is practiced by IBM for its employees. IBM is considered as the most favourable and preferable place to work by the employees since it offers various facilities and benefits to its employees such as it allows the employees to work from their home, it provides greater flexibility and freedom to its employees working in the organization. The company also offers various compensation and benefits to its employees. The company adopts cash compensation technique for rewarding its employees. The cash compensation technique of the organization includes the basic pay, compensation reward and the profit sharing bonus for motivating, attracting and retaining the high performing employees of the organization.IBM also offers various tangible and intangible benefits to its employees and therefore it is being considered as the leader in its industry (Walton, 1995). 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