...The twelve guiding principles for instituting variable team-based pay structures within organization are: First principle, goals should cover areas that team members can directly affect, meaning compensation will not motivate employees unless there is a direct line of sight between performance and results. Second principle, balance the mix of individual and team-based pay a thoughtful balance of individual and group incentives may be most appropriate. Third principle, consult the team members, who will be affected, the programs with the greatest likelihood of success are those that have input from all levels of the organization, including members of the team, teams that support or interface with the team, those who will administer the plan, management, and customers. Fourth principle avoids organizational myopia; many programs fail not because they are inherently flawed, but rather because they create problems with other teams, groups, and units within the organization. Fifth, principle, determine eligibility who is qualifies for the plan, every member of the team should be eligible for the plan, and the plan should indicate when someone becomes eligible or loses eligibility. Six principles, determine equity method, there are two basic variations: same dollar amount and same percentage amount. Seventh, principle, quantify the criteria used to determine payout, there are two main ways to measure team results: financial and operational. Financial measures tend to be ''bigger...
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... 2. A single organizational structure is best for all organizations regardless of strategy. 3. An organization’s structure reveals the formal groupings and specializations of activities. 4. The Project Organization is based upon organizing resources to perform specialized tasks or activities in order to attain the goals of the organization. 5. The Functional Organization is based upon organizing resources to perform specialized tasks or activities in order to attain the goals of the organization. 6. Breadth, depth of knowledge and experience are advantages for projects sponsored by organizations with functional structures. 7. The Project Organizational structure supports clear authority and responsibility, improved communication and high levels of integration. 8. Disadvantages of the Project Organizational structure include project isolation, duplication of effort and projectitis. 9. Projectitis sometimes occurs when the project manager and project team develop a strong attachment to the project and to each other. 10. Unity of Command is violated when a project team member has only one direct superior. 11. The main feature of the Matrix Organizational structure is the ability to integrate areas and resources throughout an organization. 12. High potential for conflict and poor response time are disadvantages of the Matrix Organizational structure. 13. The informal organizational structure is a published structure that defines the official lines...
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...review the current organizational structure and needs in order to provide recommendations for constructing workgroups capable of improving company-wide collaborative efforts. A review of the current organization will result in our recommendation for a transitional structure and include infrastructure for technology, training and development, performance assessments, and general guidance which is based in the scholastic research this team conducted. Slide 3 – Current Structure The current structure of the organization consists of workgroups in five locations within the U.S. and Portugal. The members of this virtual team are highly diverse, possessing different backgrounds from distinct perspectives in areas such as career, nationality and level of experience. Currently the organization is operating within a vertically aligned structure which negatively impacts the organization’s speed to market for decisions, hinders cross-departmental collaboration, and creates inter-departmental conflict of responsibilities. In transitioning to a team-based model, we seek an improved structure which allows for efficiency on project execution and management as well as improved information sharing, decision making, and conflict resolution. Slide 4 - Current Structure Based on Fiol and O’Conner (2005, p. 25), the current structure most closely resembles the needs of Hybrid teams with occasional face-face interaction. Given the characteristics of hybrid teams, interpersonal trust is paramount...
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...Expansion 12 Team Approach or Robotic Approach? Introduction Alpha Reminiscent Cars (ARC) used to be a small factory-based company. Until now it still maintains the hand assembled and hand-crafted tradition. In the last decade, the gradually increasing demand for the new-look-reminiscent-of-an-old style cars urged the company had tripled in size, twice shifting to larger premises and upgrading equipment and staff numbers. However, ARC’s ability still cannot satisfy the customer demand as the waiting list has lined up for six years. It seems that the expansion is currently the most urgent task for the company. At present, the company has two feasible approaches for expansion. One is the 12 team approach which doubled the workforce size of the original 6 teams. Another one is the assembly-line robotic approach which would introduce the computer-based robotics to the three worksites. Therefore, the purpose of this report is to analysis the advantages and disadvantages of the two approaches separately, especially the issues of 12 team approach related to ARC’s expansion and finally summarise which approach would be better for ARC to maintain or increase profit and also make its employees happy. Team Approach According to Mohrman & Quam (2000), ‘Teams are a common design fixture in today’s organisations.’ Organizations which are using teams to perform their core work and provide value to customers are called as the team-based organisation. A team-based organisational...
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...Different Organisational Structures Commerce Essay Organisation can be identified through their responsibilities, authorities and relationships in the market. There are ways to organise companies to get effectiveness in market. The structures of organisation play important role in development of company. These structures are based on cultural identity of organisation the way its structures behave. (Botha, 2008)These structures are to keep work flow and bring profits and the way they work they create culture. The degree of influence within organisation and the systematic approach to organise the activities forms culture. There are following types of structures in companies depending on their composition. Bureaucratic and Administrative structure Functional Structure Divisional structure Structure Matrix These structures form a way of functioning and behaviour of the company. These can be divided into following groups based on company culture. Circle organization Team Network Virtual This depends on the facilities, policies and aims of the organisation how they use structure and culture in their favour. (Brooks, 2010) Companies in past remain under bureaucratic structure but with passage of time and learning now they have adopted a liberal form of structure which created liberal and devolvement culture with in origination where team work is more important that control from top to bottom. Explain how relationship between an organisation's structure and culture can impact...
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...Summary Appex corporation has spent the last 3 years developing and trying out new organizational structures as it changes from a small organization of only 25 employees to a large one which grows an estimated 50 percent every six months. T o do this they have recruited Shikhar Ghosh to the position of COO with the promise of the CEO position in the future. Each of these structures implemented by Ghosh has revealed strengths and weaknesses after they were implemented and as 1991 approaches it is time for another change. The purpose of this paper is to show that a move to a more bureaucratic system is needed more and more as the company reaches larger sizes. When the company is later incorporated into a larger organization this would also facilitate such a move by more easily integrating into the new parent company’s existing bureaucracy. The key problem facing Shikhar Ghosh upon arriving at Appex is the chaotic condition of the company’s current structure. What was once a tight-knit group of employees is now a group of people with no clear-cut job responsibilities or work ethic. He reports that “Everybody just did what they felt like. For instance, customer service people were supposed to start at 8:00 AM. They wouldn’t arrive until 10:00 AM, but they would work until 2:00 AM. Everybody did things on their own time, and the attitude toward the customer was-“we’ll call you back.” (CoursePak) The cellular industry was beginning to explode and Appex found themselves...
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...Summary Appex corporation has spent the last 3 years developing and trying out new organizational structures as it changes from a small organization of only 25 employees to a large one which grows an estimated 50 percent every six months. T o do this they have recruited Shikhar Ghosh to the position of COO with the promise of the CEO position in the future. Each of these structures implemented by Ghosh has revealed strengths and weaknesses after they were implemented and as 1991 approaches it is time for another change. The purpose of this paper is to show that a move to a more bureaucratic system is needed more and more as the company reaches larger sizes. When the company is later incorporated into a larger organization this would also facilitate such a move by more easily integrating into the new parent company’s existing bureaucracy. The key problem facing Shikhar Ghosh upon arriving at Appex is the chaotic condition of the company’s current structure. What was once a tight-knit group of employees is now a group of people with no clear-cut job responsibilities or work ethic. He reports that “Everybody just did what they felt like. For instance, customer service people were supposed to start at 8:00 AM. They wouldn’t arrive until 10:00 AM, but they would work until 2:00 AM. Everybody did things on their own time, and the attitude toward the customer was-“we’ll call you back.” (CoursePak) The cellular industry was beginning to explode and Appex found themselves...
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...to divide the work between its members. The structure is the framework of management and employee relationships, which operate at different levels within the organisation. #1 Tall and flat organisations both have a single person with overall control, the difference being that a tall organisation then splits in to a narrow span of control but with many levels of management. Flat organisations have fewer levels of management but with a wider span of control. A function based structure and a product based structure may have more than one person at the top, they may have a board of directors or executives, below these the structures differ in that the function based will have departments for each function of the organisation i.e. marketing, Accounts, HR etc. whereas a product based organisation will have a department solely concentrating on each product and the departments for each i.e. Marketing, Accounts etc. will be duplicated for each product. A matrix structure is different to all the above in as much as the Product managers will manage all the activities and staff for their product but the Heads of Functions will manage their own staff and activities. 1:2 Organizational structure and organizational culture have a dependent relationship with one another. In the business world, management structure determines the behaviours, attitudes, dispositions and ethics that create the work culture. If a company's organizational structure is strictly hierarchical, with decision-making...
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...the functional structure, the organization is in more of a "team" structure. For example, the company would be structured into departments such as the finance department or compliance department. This type of structure is great for those companies that are smaller in size, perhaps less than 100 employees because it relies heavily on the knowledge of all employees (Writing, 2012). With that said, sometimes having a functional structure will keep departments from communicating with the other departments because each team has a specific function. Companies with a functional structure may find themselves spending time working with the employees to “drop the communicative walls”. Medtronic, a pharmaceutical company, for example, uses a functional structure combined with a top-down approach (Kimes, 2009). In a product structure, the company is divided based on the product that the division is producing. For example, a company that produces cars may have an engine division and a transmission division because it is product-based. While the product segmentation has similar drawbacks to the functional structure, there are significantly more restrictions. A company in a product type set up is not leveraging their employees in the fullest extent; think of this as a company with “walls” up, the employees do not leave their division or “walls”; therefore, they are not taking advantage of all the employees’ knowledge. 3M – another pharmaceutical company – is product based company (Kimes...
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...OB II (SECTION D) ASSIGNMENT 1 a. Select an organization and describe its organization structure. How does it resolve the four design challenges? b. What in your opinion is the basis of their organization design? How does its business justify such a structure? Explain. c. Would you suggest another structure that would be more appropriate? Defend your suggestion. Answers : Analysis of organizational structure of Deloitte US-India Pvt. Ltd a) Overcoming design challenges: 1. Differentiation: Differentiation provides the opportunity to specialize in a complex organization. It establishes task and authority relationship that allows the organization to achieve its goal. It is a process of allocating roles and responsibilities on the basis of skill sets and available resources. 2. Balancing differentiation and integration: Senior Manager is a part of more than one project. Hierarchy of authority is established which helps to clearly define roles and responsibilities of each level. In order to tackle sub unit orientation, effective co ordination, co operation and communication among separate sub units. A right balance can be achieved through effective technological tools. 3. Balancing centralization and decentralization: Operational decisions are delegated but strategic decisions are centralized. Director / Partner decides the project bidding process and other strategic decisions. Senior Manager heads a project. All decisions pertaining to...
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...Discussion What is the difference between project-based and non-project-based organizations? How does communication differ for a project manager in a project-based organization versus a non-project-based organization? Describe two challenges a project manager might face in a non-project-based organization. As a project manager in a non-project-based organization, how would you overcome the challenges you identified? The difference between project-based and non-project-based organizations is that fact that project based organizations are organized around each particular project, and most of them have project managers that run the teams made up of employees. The non-project-based organizations are a category like an umbrella which includes all organizational structures that are not designed around projects. The most common type of non-project based organizational structure is the functional model, and this is where an owner or manager oversees many different department heads, each of whom runs one specific department in which a certain function is performed. Communication differs from a project-based organization versus a non- project-based organization because project-based organizations inter-organizational communication requirements are higher than a non-project-based organization, and it involves much more analytical details within the communication process. Two challenges a project manager might face in a non-project-based organization is an unrealistic deadline of a project...
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...3 CFAs in each target Indian state and total CFAs are 25-35. Ranbaxy has 28 CFAs across India Stockist: 5-15 depending on city area Retail Pharmacy Basic Distribution structure Distribution chain of ABC company in Andhra Pradesh Typical Supply chain Distribution Structure Normally two types of supply chain models are followed: 1. Replenishment based model: This is most suited in a dynamic environment where demand, features, quality required, change very often. In such scenario there should not be any excess or shortage of inventory at stockist/sub stockist or retailers end. Manufacturer need to bear higher cost of transportation in this model at the cost of greater responsive at stockist and retailers end. Teva Pharma, a major generic pharma company based out of Israel follows replenishment based system. 2. Forecast based model: suited in an environment where upcoming demand will be similar to the forecasted one i.e. demand, features required are not changing very often. Manufacturer’s transportation cost goes down. This model fails when product specifications or demand change rapidly resulting in excess/shortage of inventory Typical sales force structure in Pharma industry A large pharmaceutical company in India is usually divided into strategic business units (SBUs) based on therapeutic areas like cardiology, urology etc. Sales force is structured under each therapeutic area and managed by a national sales manager. Each NSM then handles sales...
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...Assessment Code: RWT1 Student Name: Nicki Nelson Student ID: 0096768 Date: May 5, 2012 Mentor Name: Andrea Johnson Table of Contents Executive Summary 4 Introduction 5 Research Findings 6 Performance Based Compensation 6 Grade Based Compensation 7 Broad Banding or Team Based Compensation 8 Recommendations 8 Conclusion 9 References 10 Executive Summary Our main goal for a compensation strategy should be to retain high performers, those who work hard, and wish to grow with the company, (Kleimann, 2008). In thinking of these issues, I discovered employees don’t stay at employers because of pay. They stay for the culture. They stay because they get along with their supervisors. They stay because they are heard by senior management. Only 54% of those employees polled, rated compensation as very important, while 62% of employees polled stated opportunities to use skills and abilities at work as very important, (SHRM, 2011). With contemplating this information, I began looking at compensation strategies that rewarded more on skills or abilities than being rated by one person or based on an overall yearly raise. I discovered three possibilities to enhance employee morale on their skills, performance based, grade based, and team based (also called broad banding), (AndieCZ, 1995). Most of the three types of compensation packages I...
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...collateral. In a team-based organization, the communication process is typically less structured and more informal since a traditional organizational structure tends to be rigid and a team-based structure is more flexible. For example, the team may use social media technology, including a wiki, blog or forum, to share information, make announcements and report status updates. Bureaucracy may hinder creativity and innovation. A manager in a traditional organization typically makes decisions without consulting her subordinates. In a team-based structure, the leader typically seeks the participation of team members and conducts brainstorming meetings to gather information. Depending on the kind of decision, time and resources available, job tasks, work environment and impact, the team approaches the decision-making process differently. This includes identifying individuals who need to participate in discussions and strategies for choosing alternatives. In a traditional organization, a manager usually schedules and leads meetings. She sets the agenda and controls the flow from one topic to the next. In a team-based organization, team members are usually empowered to call meetings on their own. Additionally, people may report to more than one manager in a matrix structure and attend multiple meetings on the same topic. In a team-based organization, participants may not work in the same location and web-based conferencing software can be used to enable the team to interact using...
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...Organizational Structure A basic review of modern corporate organizational structures can offer an insight into the origins of present day design of corporate management. By examining the predominant organizational structures in the economy today, it is clear that the growth and diversity of modern business practice has been the developmental catalyst for these individual management processes and structures Bureaucracy has a clear and definitive hierarchical structure with the authoritative mandate and directives typically led top down from senior executive leadership groups to silos containing secondary managerial structures (Ashkenas, 1999). A typical analogy of this organizational structure has been quoted as ‘the top rung of one ladder is the bottom rung of another’. Corporate operating procedures, methodologies, and policies and procedures are the foundation for a sustainable bureaucratic organizational system (Rockman, 2012). Common examples of this type of organizational structure would be large scale government or military organizations. A basic review of modern corporate organizational structures can offer an insight into the origins of present day design of corporate management. By examining the predominant organizational structures in the economy today, it is clear that the growth and diversity of modern business practice has been the developmental catalyst for these individual management processes and structures Bureaucracy has a clear and definitive hierarchical...
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