Organization and behavior - Tổ chức và Hành vi

Bài luận môn Tổ chức và Hành vi (Organization and behavior) BTEC

BTEC HND IN BUSINESS (MANAGEMENT) ASSIGNMENT COVER SHEET NAME OF STUDENT REGISTRATION NO UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE Trần Quyết Thắng - Joe F05-194 Organisations and Behaviour Microsoft – Ford Motor Company of (individual report) Mr John Andre 21st November 2012 I, Trần Quyết Thắng - Joe _ hereby confirm that this assignment is my own work and not copied or plagiarized from any source I have referenced the sources from which information is obtained by me for this assignment _ Signature Date FOR OFFICIAL USE (Course Administrator) Assignment Received By: OB Assignment Oct 2012 Date: Unit Outcomes Outcome Evidence for the criteria Feedback Assessor’s decision First attempt Understand the relationship between organisation al structure and culture LO1 Understand different approaches to management and leadership LO2 compare and contrast different organisational structures and culture 1.1 explain how the relationship between an organisation’s structure and culture can impact on the performance of the business 1.2 discuss the factors which influence individual behaviour at work 1.3 compare the effectiveness of different leadership styles in different organisations 2.1 explain how organisational theory underpins the practice of management 2.2 evaluate the different approaches to management used by different organisations 2.3 Merit grades awarded M1 M2 M3 Distinction grades awarded D1 D2 D3 OB Assignment Oct 2012 Rework Internal Verification Outcome Evidence for the criteria Feedback Internal Verification Assessor’s decision First attempt Rework Assignment ( ) Well-structured; Reference is done properly / should be done (if any) Overall, you’ve Areas for improvement: ASSESSOR SIGNATURE NAME: OB Assignment Oct 2012 DATE / / Outcome Evidence for the criteria Feedback Assessor’s decision First attempt Rework (Oral feedback was also provided) STUDENT SIGNATURE DATE NAME : FOR INTERNAL USE ONLY VERIFIED DATE YES NO : VERIFIED BY : NAME : OB Assignment Oct 2012 / / Internal Verification Organizational and Behavior – Microsoft & Ford Motor Company Title page Prepare for: Professor John Andre Organization and Behavior BTEC HND in Business (Finance) Banking Academy, Hanoi Submitted on November 21st 2012 Prepared by: Trần Quyết Thắng – Joe Class: F05 – B Registration No.: ITP – F05 – 194 OB Assignment Oct 2012 Table of Contents OB Assignment Oct 2012 Introduction This report aims to find out the structure, culture, the influence of individual at work, the theories of management and leadership style of two organizations: Microsoft and Ford Motor Company Microsoft and Ford Motor Company are the big companies in the world One produces the technological devices like tablets, PCs … and another company manufactures and trades cars Each company has a specific structure and culture which suit to company in order to motivate the employees, maximize the productivity and increase the outputs Both companies are directly affected by the individual behaviour of the employees at work There are many factors which influence the workers; something can encourage them but something is opposite Besides, the management of working is very important A lot of management theories were invented and most of them are useful for managers of companies Furthermore, the leaders are the keys of running business of companies There are several ways for the leaders choose to control the companies If they bring the right leadership style, the company can gain profit easily and efficiently OB Assignment Oct 2012 Outcome 1.1: Using the facts of the company presented in the case above and that of another company of your choosing compares and contrast different organizational structures and cultures Microsoft used to be the biggest technology company in the world Since 2000, Steve Ballmer has been CEO of Microsoft Company At this time (Microsoft) they have changed too much compare with the period when Bill Gates was in charge According to Charles Hill and Gareth Jones in Essentials of Strategic Management, Microsoft has a relatively flat structure (2008, p 217) This shows that Microsoft has controlled and allocated their work with few levels of managers Therefore between staffs and managers, there are no middle managers and the decisions would be made directly and quickly from head of business Additionally, “Some say that Steve Sinofsky, credited with bringing order to the sometimeschaotic software development process at Microsoft — partly by cutting layers of management, should be the man to replace Steve Ballmer.” (Hartung, 2012) It refers that Microsoft can have a flatter structure than it had before Ford Motor Company, which is one of the biggest manufacturing cars, also has many troubles with the way leaders control work Bill Ford told Alan Mulally-current CEO of Ford Motor Company that: “Ford is a place where they wait for the leader to tell them what to do." (Kiley, 2009) Nevertheless it has changed under Mulally’s period He flattened Ford’s structure and recentralized control (Hill & Jones, 2009, p454) Mulally has speech up the communication from the top headers to employees It helps the work in Ford become quicker and more effective Moreover, each organization has different types of culture that make running business efficiently Microsoft and Ford Motor Company are not the exceptions Under Ballmer, Microsoft’s culture has changed Now he does not pay much attention to designing, he has only found out how to increase profit although Microsoft is an information technology company Vanity Fair about the Microsoft employees like that: “It leads to employees focusing on competing with each other rather than competing with other companies.” with a title “Microsoft’s Downfall: Inside the Executive E-mails and Cannibalistic Culture That Felled a Tech Giant” (2012) It was amazing with a company that needs the creativities like Microsoft Ballmer only cares about how employees get jobs done He does not motivate Microsoft workers to help them become more innovative so that the employees cannot bring the new ideas to improve products or invent unique tech software and hardware This shows that Ballmer applied the non-innovative culture In contrast with Microsoft; Alan Mulally OB Assignment Oct 2012 had the best decisions to help Ford Motor Company turn over the difficulty Author Bryce G Hoffman told National Public Radio: “He always saw one of his key roles as kind of being the cheerleader-in-chief, keeping everybody motivated and focused.”(Garner-Davies, 2012) This pointed out that Ford Motor Company used task culture to encourage their employees Mulally divided work into different groups to complete particular duties In this case, he empowered employees to help them make decisions quickly and make give them responsibilities to complete jobs effectively Mulally revived Ford Motor Company, he realized the way to innovate and make products that customers need with high quality, saving fuel, medium prices, etc OB Assignment Oct 2012 Outcome 1.2: Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business The relationship between an organization’s structure and culture are very important, it has a huge effect to organizations Microsoft has a flat structure but they use non-innovative culture It seems not to match Non-innovative culture means organizations not provide anything to make workers become more creative and try to everything even mistakes While flat structure gives employees more opportunity delegation Back to Microsoft’s business performance, Microsoft peaked at $60/share in 2000, just as Mr Ballmer took the reins and 2002 it had fallen into the $20/share (Hartung, 2012) Additionally, the performance showed on Wall Street; despite booming sales and profits from its flagship products, in the last decade Microsoft’s stock barely budged from around $30 (Eichenwald, 2012) (Source: http://www.bigcharts.marketwatch.com/) Ballmer has changed Microsoft culture that is not relevant with the structure This is the main reason to explain the bad business performance of Microsoft Corporation Compare with Microsoft, Ford Motor Co has reasonable changes since restructuring Alan Mulally has flattened Ford’s structure to make decision quicker, less time wasting and communicate easier Besides that, he has implemented the task culture to promote Ford’s employees have more innovation, creativities It has expressed through Ford’s business performance Within three months of his arrival, Mulally sold Wall Street on a $23 billion recapitalization (Kiley, 2009) Furthermore, Ford stock that once sold for $1.96 a share in OB Assignment Oct 2012 10 2009 goes for just over $12 a share today (In case you were wondering, that’s a 500% increase!) (Garner-Davies, 2012) (Source: http://www.bigcharts.marketwatch.com/) The changes have worked efficiently and help Ford make more profit The two charts above illustrate the share prices of Microsoft and Ford Motor Company in the last dedicate The share prices has a significant fluctuation from approximately 2$/share (2009) to over 18$/share (2011) while share prices of Microsoft is quite stable around 25$ to 30$/share, except the last months in 2007 and in 2009 Both Microsoft and Ford have the lowest share price in 2009 In the period from 2009 to 2012, Microsoft’s share price increased from 15$ to nearly 30$ it means that the share price rose to 100% OB Assignment Oct 2012 11 Outcome 1.3: Discuss the factors which influence individual behaviour at work In all companies, there are many factors that affect the individual behavior at work and Microsoft is no exception To motivate the employees, Microsoft gives all employees new Surface tablets, Windows phones and PCs These are meaningful gifts, they make employees innovate to have more new ideas in order to create improve and create new technical products Some employees tweeted and posted Facebook status updates after the announcement, verifying these details and calling it the “Best Company meeting Ever.” (Clay, 2012) This is a positive attitude that Microsoft bring to employees to encourage and satisfy them Besides, it is used to ensure that all employees can take more efforts to design and create the intelligent technological devices in the future It means that the productivity and outputs can be increased As the result, Microsoft can improve their performance and increase profit Furthermore, Microsoft has several security disclosure policies and all employees are compulsory to conduct them Employees have to conduct the security policy carefully One of the security policies that the employees have to follow is the requirement when reporting security vulnerabilities in third-party products Policy states that: “Any vulnerability information provided to the vendor is not intended for public use, but for the vendor's use to identify and remediate the vulnerability” (Goodin, 2011) It means that employees warrant that the information that they report to vendors secretively and vendors only use this to fix the security hole of products Microsoft wants to make sure that its products are safety to protect the users Employees have to remind their selves comply with the policy Therefore, sometime they have to keep the secrets; it can make them feel uncomfortable and disable their thinking OB Assignment Oct 2012 12 Outcome 2.1: Compare the effectiveness of different leadership styles in different organisations Alan Mulally – the current CEO of Ford Motor Company since 2006, has changed Ford very much He made Ford become stronger and survived after the crisis He is a democratic leader Importing a practice from Boeing, he introduced weekly meetings that were mandatory for all senior managers (Reed, 2012) He does that to find out what they need and what they are going to Alan Mulally tries to look for the acquiescence through his direct reports He has to focus on the important problems and after that, he would provide them to employees with small sections By doing these, Alan Mulally could exploit the ideas and experience from the workers and make decisions effectively Additionally, Mulally wants to makes employees understand and believe his decisions and take more efforts to the plans This style also creates the favorable working conditions to help employees innovate ideas; join to make the plan and find the ways to it and bring the positive impact on employees’ emotion Under Mulally period, Ford was survived and had numerous success Besides, Steve Ballmer – the current CEO of Microsoft has the different leadership style to control work and manage the employees Steve Ballmer was criticized about the loss of Microsoft share prices however he has changed very much Today, Ballmer’s leadership style is more diplomatic, and he’s more likely to delegate decision-making authority One of his goals is to a better job of developing managers and leaders (Reece & Brandt, 2006, p82) It shows that Steve Ballmer is a coaching leader Ballmer wants to develop the Microsoft workers In the nutshell, it is a method that leaders use to support, guide and challenge the employees to maximize their performance and increase productivity and output Besides, the leaders can help the employees get the clear goals themselves and orient how they achieve these goals Steve Ballmer applies coaching style to recognize the strengths and weaknesses of each individual to give them the aids so that employees could be developed Additionally, Ballmer wants to Microsoft staffs trusts and believes him By doing this, he and employees can have the good relationship; it helps employees achieve the individual goals and organization meet objectives Moreover, it is the easy way for Ballmer to guide the employees and collect the information about the troubles which workers have After that, he could give them the advices In addition, Ballmer wants to motive Microsoft workers have more and more ideas to produce the unique technological goods OB Assignment Oct 2012 13 Outcome 2.2: Explain how organisational theory underpins the practice of management Ford Motor Co is a manufacturing car and it applied Taylor’s Scientific Management early to make the work become easier Henry Ford realized that each employee assembled all parts of a car and the process was very slow and not efficient and he had divided the process into small portions After using this theory, Henry Ford could develop the performance of workers; improve how they got job done well Besides, the employees of each step can be easily replaced if they not have responsibilities to the job For example, the flywheel magneto assembly was divided into 29 separate steps and workers placed only one part in the assembly before pushing the flywheel down the line to the next employee (Ford Motor Co, n.d) As the result of applying scientific of manager, Ford Motor Company maximized the manufacturing process and reducing the time to producing a car so that it could increase the productivity and outputs and gained more profit Furthermore, at this time, the Ford workers’ salaries went up significantly In 1914, Ford introduced another innovation: the $5 workday This was about twice the going wage (Mankiw, 2008, p330) It shows that Ford paid salaries for employees based on the result of work The rise of productivity and outputs helped for Ford workers have high salaries and it motivated and encouraged them work hard Besides dividing work, Ford also have many training programs and specialize their employees like the organizational theory of Max Weber There is a direct quote from Organizational Behavior: Global and Southern African Perspectives, by Stephen P Robbins (2009, p402): “Every Ford worker was assigned a specific, repetitive task Ford was able to produce cars at the rate of one every ten second, while using employees who had relatively limited skills.” This points out that the employees are specialized for different specific tasks in the manufacturing process of building cars so they could have much experience and be trained on a particular activity In addition, the specialized employees are prospective to raise the worker productivity and output In this case, each worker assembles different parts of a car, it makes the process efficiently and the productivity is higher than the singer worker trying to complete a car This would cut down the producer time and cost and took full advantage of workers’ skills and experience OB Assignment Oct 2012 14 Outcome 2.3: Evaluate the different approaches to management used by different organisations It is not easy to choose a suitable leadership style for any organization because it depends on some factors like the structure, culture of organizations or the personalities of the followers Steve Ballmer is an example about changing the leadership style to have a good fit During the early years at Microsoft, Ballmer had a domineering management style and was unwilling to delegate the decision making: still, he accomplished a great deal (Reece & Brandt, 2006, p82) however he changed Microsoft has flat structure; it dedicates that the employees need to be motivated and encouraged to have an effective work Therefore, the coerciveness which means the leaders make the decisions and employees have to get job done is not suitable to the working style of Microsoft workers Additionally, the easiest way to have a reasonable match is to change leadership style because there are many followers and to change them need a lot of time As the result, Steve Ballmer has changed himself By changing from a coercive leader to a coaching leader, it has several better fits with the flat structure of Microsoft The employees are not only guided but also delegate to make decisions The work can become more effective In Ford Motor Company, CEO Alan Mulally also find the suitable leadership style for own Ford was in deep trouble in 2006, with a poisonous culture in which executives fought turf wars and sat through endless meetings but made the real decisions elsewhere (Reed, 2012) When Mulally arrived, he became a democratic leader to make employees trust the operation of the executive after these troubles Besides, Ford is a manufacturing car so it needs the creativities, innovation… By applying this leadership style, Mulally can inspire the objectives of organization to specific staffs and encourage them bring more special ideas in order to meet these objective, make Ford stronger and turn over the difficulty In addition, this leadership style seems to be suitable to the structure and culture of Ford Mulally and other managers discuss, create the plans and make decisions directly and quickly; it does not need the middle management Moreover, Ford has flat organizational structure; the leaders and the employees can communicate easily and Ford workers could ask Mulally about their opinions After that, they can be unanimous in making decisions OB Assignment Oct 2012 15 Conclusion All factors: structure, culture, individual behaviour, management theory and leadership styles have the huge impact on the ways that companies run There are some similar points between two companies Both Microsoft and Ford have flat structure because they need the creativities and innovation of employees to develop the products and work effectively However, each company use the particular management theories to control the work Additionally, the companies apply the management theories to make the work become more efficient Furthermore, the leaders play an important role in the development of companies They bring the projects and decide the ways which the employees get the jobs done For example, Alan Mulally has a reasonable leadership style so he rescued Ford form bankrupt; opposite to Steve Ballmer He chose wrong style to control Microsoft but he is changing it to make Microsoft take back the first position in the technological companies I believe my analysis is very through because this includes several evidently dividends which are collected from the online newspapers and books However, next time I will be better if I spend more time doing the assignment OB Assignment Oct 2012 16 Reference (n.d.) Retrieved from BigCharts: http://www.bigcharts.marketwatch.com/ 24/7 Wall st (2009, May 14) The 10 biggest tech failures of the last decade- Microsoft Vista Retrieved November 03, 2012, from time.com: http://www.time.com/time/specials/packages/article/0,28804,1898610_1898625_1898 627,00.html Brandt, B R (2006) Effective Human Relations: Personal and Organizational Applications In B R Brandt, Effective Human Relations: Personal and Organizational Applications (p 82) Cengage Learning Clay, K (2012, September 13) All Microsoft Employees To Get New Surface Tablets, Windows Phones and PCs Retrieved November 05, 2012, from Forbes: http://www.forbes.com/sites/kellyclay/2012/09/13/all-microsoft-employees-to-getnew-surface-tablets-windows-8-phones-pcs/ Eichenwald, K (2012, August) Microsoft’s Lost Decade Retrieved October 13, 2012, from VanityFair: http://www.vanityfair.com/business/2012/08/microsoft-lost-mojo-steveballmer Fair, V (2012, July 3) Microsoft’s Downfall: Inside the Executive E-mails and Cannibalistic Culture That Felled a Tech Giant Retrieved November 11, 2012, from VF Daily : http://www.vanityfair.com/online/daily/2012/07/microsoft-downfall-emails-steveballmer FordMotorCo (n.d.) The Moving Assembly Line Debuted at the Highland Park Plant Retrieved November 03, 2012, from Corporate.ford.com: http://corporate.ford.com/our-company/heritage/historic-sites-news-detail/663highland-park Garner-Davies, T (2012, April 06) leadership to love: how CEO alan mulally changed ford’s culture and transformed its business Retrieved October 13, 2012, from O.C.TANNER: http://www.octanner.com/blog/2012/04/leadership-to-love-how-alanmulally-changed-fords-culture/ Goodin, D (2011, April 19) Microsoft imposes security disclosure policy on all workers Retrieved November 15, 2012, from TheRegister: http://www.theregister.co.uk/2011/04/19/microsoft_vulnerability_disclosure_policy/ Hartung, A (2012, May 12) Five CEOs Who Should Have Already Been Fired (Cisco, GE, WalMart, Sears, Microsoft) Retrieved October 13, 2012, from Forbes: http://www.forbes.com/sites/adamhartung/2012/05/12/oops-5-ceos-that-should-havealready-been-fired-cisco-ge-walmart-sears-microsoft/3/ Kiley, D (2009, March 04) Alan Mulally: The Outsider at Ford Retrieved October 13, 2012, from BloombergBusinessweek: http://www.businessweek.com/stories/2009-0304/alan-mulally-the-outsider-at-ford OB Assignment Oct 2012 17 Mankiw, N G (2008) Principles of Macroeconomics In N G Mankiw, Principles of Macroeconomics (p 330) Cengage Learning Marcic, R L (2010) Understanding Management In R L Marcic, Understanding Management (p 25) Cengage Learning R.Jones, C W (2008) Essentials of Strategic Management In C W R.Jones, Essentials of Strategic Management (p 217) Cengage Learning R.Jones, C W (2009) Strategic Management Theory: An Integrated Approach In C W R.Jones, Strategic Management Theory: An Integrated Approach (p 454) Cengage Learning, 2009 Reed, J (2012, April 2012) How Alan Mulally rescued Ford Retrieved November 16, 2012, from Los Angeles Times: http://articles.latimes.com/2012/apr/15/business/la-fi-books20120415 Robbins, S P (2009) Organisational Behaviour: Global and Southern African Perspectives In S P Robbins, Organisational Behaviour: Global and Southern African Perspectives (p 402) Pearson South Africa OB Assignment Oct 2012 18 OB Assignment Oct 2012 19 ... http://articles.latimes.com/2012/apr/15/business/la-fi-books20120415 Robbins, S P (2009) Organisational Behaviour: Global and Southern African Perspectives In S P Robbins, Organisational Behaviour: Global and Southern African Perspectives... complete jobs effectively Mulally revived Ford Motor Company, he realized the way to innovate and make products that customers need with high quality, saving fuel, medium prices, etc OB Assignment... performance of workers; improve how they got job done well Besides, the employees of each step can be easily replaced if they not have responsibilities to the job For example, the flywheel magneto assembly