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The Following report Compares and contrasts the organizational structure and culture of Research In Motion and Lanka Bell and evaluates the different approaches to management that has been used by the two companies. Autocratic and Democratic leadership styles has been identified and evaluated on how it could motivate its employees at a technological breakthrough. Motivational theories such as Hertzberg and Maslow's theory has been compared with the organization and within the organization and shown what is the most suitable motivation method for managers and McClelland's Theory was identified.
Research In Motion (RIM) had a self-doubting commencement with a determined vision. Today, more than 20 years later, that determination and vision has altered into accomplishment. RIM is one of the world's prominent designers, manufactures and dealers of clarification for mobile communications market. Over expansion and combination of hardware, software as well as services, RIM's range of honor -winning products now comprises the blackberry wireless platform, the Blackberry Wireless handheld product line, Software improvement tools, radio-modems and software and hardware certificate agreements.
Recognized in 1997, Lanka Bell is a 100% Srilankan based communication provider which includes the facilities of providing internet service, pre-paid service, postpaid service and also IDD service.
1.3 Organizational Structure of RIM
RIM is led by an managerial team controlled of co-CEO's. Balsillie also embraces the position of chairman, while Lazaridis is the business president. There are two chief officers a c/financial officer a V.President, Enterprise business Unit and V.President, corporate marketing.
There have been latest worries among the business study's and company enthusiast about the choices to continue operating with two CEO's and about the rank of the board of directors of the company. Many feel that RIM should review the co-CEO's management decision.
At present having a functional structure is to customary up so that each share of the association is groped approving to its reason. In this type of business, for an instance there is engineering and manufacturing subdivision, a combine forces control division and a cooperate marketing division. Though it's a globally known firm, this sort of structure is mostly used by small organizations. But by using these divisions of RIM can depend on on the ability and knowledge of its employees and support itself. However , one of the shortcomings to a functional structure is that the coordination and communication amongst divisions can be limited by the organizational limits of having the various divisions working distinctly.
1.4 Organization Culture of RIM
RIM has a well-built business culture that rejoices accomplishment, Originality, and risk taking. It advances a workforce inspired to attain beyond its potential. The business funds this situation through a diversity of participative occasions and packages .
Staffs at RIM are pleased by base pay, merit pay, and benefits. Welfares include a free Blackberry, On-site-message, Sponsorship for gym fitness membership, and prospects to contribute in a variety of wellness programs. Communal events comprise holiday gatherings, picnics and team building events.
There for it is vibrant that the sort of culture being used in this Business is the Task culture and it is based on separate tasks finished by small teams. It can be occupation oriented or development oriented. A distinct team culture grows, and as the team is endowed to make choices, task culture can be inspired.
1.5 Organizational Structure of Lanka Bell (Assumption)
Lanka Bell being using a matrix structure does give the business a better flexibility in business tasks than other hierarchical business . In this matrix structure each worker works in a function-based division, such as finance or marketing, But they can be allocated to tasks under different supervisors and teamed with workers who have different roles. This structure adjusts organizational function to altering organizational requirements. The disadvantages are that the chain of command in a matrix may turn out to be cloudy and conflicted.
1.6 Organizational Culture of Lanka Bell
Lanka Bell being having a power culture, control is the key element. Since the decisions Lanka Bell displays are centralized and comes from one key individual who controls and is the power behind it. As group work is not evident in a power culture, the organization can react quickly to dangers around it as no consultation is involved. However this culture has its problems, lack of consultation can lead to staff feeling undervalued and de-motivated, which can also lead to high staff turnover.
And coming to a conclusion that cultures can have a major impact on an organization and can show its pros and cons, some organizations will have strong cultures and other can have week. A strong culture is when people tend to agree on beliefs, values within the organization and on the other hand weak culture can be when people disagree on the existing culture and instead form their own sub cultures. It is important to have a strong culture so that the company can survive and beat its competitive environment.
2.0 Referring to the impact and relationship between the two organizations structure and culture and how it effects their performance
2.1 Organization Structure
RIM being having a functional structure workers within RIM have a habit of to complete a particular set of tasks, for an example the engineering division would be staffed only with software engineers. This leads to operational efficiencies within the group. However it could also lead to a lack of communication among the functional groups within an organization, making the organization sluggish and uncompromising.
As a whole , a functional Structure is best suited as a manufacturer of standardized goods and service at bulky volume and low cost. Management and specialization of responsibilities are centralized in a functional structure, which makes manufacturing a limited volume of products or service effectual and expectable. Likewise, productivities can further be understood as functional organizations join in their actions vertically so that products are sold and spread swiftly and at low cost. For instance, a small business could make components used in manufacture of its products in its place of buying them. This aids the organization and workers confidence.
However, the matrix structure which is been used at Lanka Bell does group its employees by both function and product. This structure can mix up the best of both individual structures. LB often uses teams of workers to achieve work and this an aspect of matrix structure. In order to take benefits of the strengths, as well as make up for the dimness, of functional and decentralized systems.
There for matrix structure is amongst the cleanest of organizational structures, a simple framework contend with order and consistency verified in nature.
Lanka Bell (Power Culture)
RIM (Task Culture)
Controls issues from the center
Teams are formed to solve certain problems
Focuses power among a few
Power originates from expertise as long as a team involves expertise
Sudden decisions are possible
No solo power source
Teams may own objectives (a risk)
Communication is Good
2.3 How Organizational theories underpins the practice of management
A form of structure set up in Lanka Bell is Bureaucracy. Its significance in the growth of the organization theory means that it is often viewed as a sub-division under the conventional header and calculated as a separate method to managing and the organization of work. The thoughts and principles were derived largely from real-world knowledge.
Max Weber the initiator of bureaucracies is a German sociologist, showed specific worry for what he called "bureaucratic structure" while his work in this area came virtually as a side question to his main reading on power and authority.
Foremost features found from Lanka bell which uses Bureaucracies is that the tasks of the organization are assigned as formal responsibilities among the several positions. There is an indirect clear-cut separation of labour and a high level of specialism. Employment by the organization is centered on technical requirement and creates a lifetime profession for the officials.
However, Weber's thought of bureaucracy has a number of drawbacks and has been exposed to severe blame.
a)The over-emphasis on guidelines and processes, guardianship and paper work may become more significant in its own right than as a means to an end.
b)Impersonal relations can lead to fixed performance and a absence of responsiveness to specific cases .
c)Positions and duties in the organization can lead to bossy bureaucratic performance. They may also be a propensity to conceal managerial procedures from outcasts.
F.W.Taylor, the father of scientific management. Taylor understood that in the matching way that there is a best mechanism for each profession, so there is a superlative working technique by which people should accept their jobs. He measured that all work progression could be evaluated into distinct task and that by scientific process it was conceivable to find out the 'one best way' to achieve each task. Each job was separated into sections, each part timed and the parts reorganized into most effective technique of working.
Taylor was a supporter in the rational-economic needs ideas of motivation. He believed that if management replaced on his thoughts, work would become more sustaining and lucrative for all afraid. Employees would be inspired by earning the uppermost probable wages through working in the most effective and prolific way. Taylor was worried with finding more effective approaches and technique for organization and control of work. And number of opinion to guide management , these opinion are usually briefed as
The development of a true knowledge for each individual's work.
The scientific collection, training and improvement of the workers.
Cooperation with the employees to confirm work is supported out in the recommended way.
The separation of work and accountability between management and the employees.
This is what RIM has been succeeding,
2.4 Different approaches to management used by Research In Motion and Lanka Bell
Human Relations Movement
George Elton Mayo is recognized as the founder of Human Relations Movement, well it is found that RIM and Lanka Bell does follow the exact same approach and it was found that as Mayo recommended that both these companies motivation was endorsed by factors such as Greater communication, Displaying interest in others , Good team work, Including others in decision making, guaranteeing the happiness of others, ensuring work is stimulating and non-repetitive and not just only by money. Since these are recognized motivation was enhanced through making workers feel vital, giving them a degree of independence and make selections and admitting their communal needs.
"No one best way to do things"
There is no general or one best way to manage widespread range of exterior and interior factors, these must be measured and the attention should be on the act that best fits the specified situation, effective organizations not only have a appropriate 'fit' with the surroundings but also amongst its subsystems. The necessities of an organization are improved when it is appropriately calculated and management style is appropriate both to the tasks accepted and the nature of work group. Each leaders state from RIM must be observed distinctly and these managers need to be consuming advanced skills that are most valuable in recognizing the significant situational features.
Therefore, this theory is real-world and it is similarly important for RIM and Lanka Bell(every organization) and every situation is exceptional so managers have to be able to study each and every condition INDUVIDUALLY.
However the rational extension of the possibility method is that all the situation are matchless. If this is true, then management can be trained only -by instinct and judgment, thereby opposing the value of previous knowledge and intelligence.
2.1.1 Different leadership styles in RIM and Lanka Bell and the comparison
Autocratic Leadership style
Lanka Bell follows the autocratic style which is where the managers is accountable for all features of the process. He demands total acquiescence from the employees and issues instructions and does not encourage response. Hence communication is one way top to down. Lanka Bell enjoys the advantages such as plans will be carried out without any alterations, Swift decisions can be made and there is a vibrant chain of command.
However, the workforces hinge on the manager for assistance and is not capable to work freely this could lead to create bitterness and frustration.
Democratic Leadership Style
RIM known as an global company does use the democratic leadership style. Whereas the leader who pursues the belief of assistants, speaks activities with staffs and attempts for common understanding are reflected as democratic leaders. Even though the leader holds ultimate accountability for decision making but asks the workers before allocating work. A two way communication is maintained.
Employees at RIM are inspired as they are involved in decision making, operational level problems are explained or taken into account prior to allotting work which sidesteps ineptitude and does advance decision making as numerous ideas are tangled.
However, consultation is a time consuming technique and has a high threat on loosing management control and is clearly seen and this has happened previously at the RIM management.
Lanka Bell Managers does use an autocratic leadership style where they infrequently pursues input from their workers in order to make choices. This kind of management style can be advantages in a fast-paced work situation where individuals need to rapidly make the choices for daily work task. Autocratic managers tend to inspire workers by creating confidence in the managers skill to make precise and creative decisions. Workers become relaxed with the managers knowledge of the business and the business procedures and develop inspiration from the managers capability to keep the division focused on accomplishing company goals.
However, RIM does use a Democratic leadership style where they let the workers get tangled in decision making procedure and often do not make important decisions without the cooperation of staff. The motivational approach used by democratic leader in presence: The staffs are part of the decision making procedure that keeps the division running efficiently. Workers take an emotive attention in the achievement of the division because they have aided to craft departmental guidelines and procedures.
2.1.2 Impact that different leadership styles may have on Motivation of employees of Lanka Bell and RIM in this circumstance.
Motivated workers are one of the most significant fallouts of effective leadership. Most successful managers are likewise successful leaders. They get people to help complete its business goals, achieving its business goals is not sufficient to keep workforces interested. Helping the workforces achieve their own career and personal goals is a significant part of motivation.
Leaders influence their followers performance over communication, group subtleties, exercise, prizes and persuasion. Leadership and motivation are collaborating. The more inspired the followers, the extra affective the leader; the extra effective the leader, the more inspired the followers.
Leaders comprehend that they have control and they recognize the foundation of their power: position held, capability to reward, capability to pressure, proficiency, personal appeal and personality.
Being Democratic or Autocratic is the common method of thinking about leadership. Autocratic leaders depend on their consultant and their control that comes from being an owner of the organization or inhabiting a high position. Democratic leaders hinge on on private power, participative, problematic solving and combined decision-making. Presence of only autocratic or democratic frequently restricts one's efficiency as a spearhead.
3.1.1 Applying different motivational theories within Lanka Bell and comparing them
Herzberg - Two factor theory
According to him, individuals are influenced by two factors
Hygiene factor and Motivation Factors
According to Herzberg theory job satisfaction can be only attained by motivators. The following are the motivators which lead to greater job satisfaction
Company policy - Long working hours is a poor hygiene factor because workers will be tired and quality will fall.
Working conditions - If working conditions is not satisfactory it is poor hygiene factor .
Salary - Low salary can cause dis satisfaction.
Interpersonal relationships - Poor relationship between people can cause a lot of frustration.
Supervision - Close super vision may lead to dis-satisfaction.
Some individuals are only motivated if they achieve extra- ordinary performance in their jobs. This person is called achievement oriented person.
If an employee is given greater responsibilities e.g. : like being appointed as a leader it can lead to high motivation.
Advancement means a person is getting promoted to a higher position in the company.
Recognition - An employee is recognize for his performance e.g. : the best employees award
If hygiene factors are poor it causes dis satisfaction. The management must make sure, the hygiene factors are good. Good hygiene factors are short working hours, good salaries, good working conditions, good relationship between people and relaxed supervision. Good hygiene factors, will prevent dis-satisfaction.
Maslow's Hierarchy of needs
According to Maslow's theory any person is motivated by needs and these needs exist at different levels. At the lowest level is where the basic needs Eg: Food, water,shelter.. once a person satisfy his basic needs, he will move onto the next stage. Next stage is security needs, any person can feel safe only if he has a steady job and income. A person who has achieved security needs can move on to the third level. Social needs Meeting people, Developing relationship, exchanging ideas or sharing ideas will give immense satisfaction. All this can be done at the work place therefore socializing leads to fulfillment needs. The most dynamic once can go to the fourth and fifth level. Esteem needs at this level people want to achieve great things, need for achievement, the people want more power, recognition, they look for advancement and growth. All these are very powerful needs which only dynamic people will have. Self-actualization, the individual has reached his peak level / full potential and theoretically he should be maximizing his satisfaction.
Maslow's Theory is based on the impression of human needs and their fulfillment.
Hertzberg theory is constructed on the use of motivators which include accomplishment, gratitude and chance for development.
2. Basic of theory
Maslow's theory is constructed on the hierarchy of human needs. He recognized five sets of human needs and their satisfaction in encouraging workers.
Hertzberg states to hygiene factors and motivating factors in his theory. Hygiene factors are disgruntles although motivating factors motivate dependents. Hierarchical preparations of needs is not assumed.
4. Maslow's theory is most widespread and broadly mentioned theory of motivation and has widespread applicability. It is mostly appropriate to deprived and emerging countries where money is still a big inspiring factor.
Hertzberg's theory is an extra time of Maslow's theory of motivation. Its applicability is contracted. It is appropriate to rich and advance countries where money is less significant inspiring factor.
3. Nature of theory
Maslow's theory is rather humble and expressive. The theory is based long experience about human needs.
Hertzberg theory is more narrow. It proposes the motivating factors which can be used efficiently. This theory is based on actual evidence collected by Hertzberg by questioning 200 Accountants and engineers.
Rendering to Maslow's theory, any necessity can act as a promoter provide it is not pleased or comparatively less contented.
In the double feature model of Hertzberg, hygiene factors dosent act as motivators. Only the advanced order's needs (achievement, recognition, challenging work) act as motivators.
5. Descriptive or prescriptive
Maslow's model is expressive in nature.
Hertzberg theory is narrow in nature.
As both theories are responsible on the environment that the employees work as there is chances that both theories not be effectible.
3.1.2 Select a suitable motivation theory for managers of Lanka Bell and evaluate its usefulness in carrying out his job responsibilities effectively.
After going through different motivational theory's it was found that McClelland's theory, which is based on three factors knows as:
Need for achievement
Need for power
Need for affiliation.
In view of this theory, factors will be very useful to the executives at the Local company which is Lanka Bell.
Need for achievement is basically reliant on how a person achieves something which is totally unique from the way others do it. Having this point Lanka Bell executives can be motivated as they can come up with something unique, visibly there will be immense number of experiments among department mangers even though this can be very useful. Executives who shadows needs of affiliation would consider having a good relationship with others and in parallel people would like to deal problems as for it would be easier and decent,
If this is taken into consideration at Lanka Bell, Managers will get an opportunity build relation among their clients and other stake holders. Hence, this will motivate managers and it will be easier for them to accomplish their roles.
This report is constructed on how Organizational structure and culture are most important factors of any particular organization. As the culture and structure has being compared in this report which includes the companies of Research In motion and Lanka Bell it was identified that both companies are formed with different type of structures which were respectively a Functional structure and a matrix structure. Being having a advantage was Lanka Bell for having a matrix structure although RIM being an International company was found to be having a poor management. In respective to the companies RIM's culture was task culture and Lanka Bell was found to be having a Power culture relating to the culture was the leadership styles defined. And it was shown that RIM used a Democratic leadership Style and struggled over the past years. Lanka Bell being local had a better choice in having an autocratic leadership style which made things easy for the decision makers and time was saved to implement them. Although the leadership style was right this report contains which Management theory should be used at Lanka Bell and it was compared with 3 well known theories and found McClelland's theory was the effective motivation theory.