Reference no: EM133174800

Case Study - Bluewolf, an information technology (IT) consulting firm in New York, grew from two individuals to over 200 individuals in just seven years. In 2008, the organization made approximately $31 million in revenues. During the process of hiring new individuals, the company founders Michael Kirven, 38, and Eric Berridge, 39, didn't really worry about vacation policies. The unofficial vacation policy now states that individuals can take vacations anytime they want for as long as they want as long as the individual's objectives are being met. In fact, most people in the organization take 3-4 weeks of vacation a year because too much more than that would make completing objectives very difficult.

Bluewolf didn't stop with just their non-vacation policy, the organization openly encourages a highly interactive and communicative environment. Employees working on teams will often take team trips to the gym or volunteer in community causes.

As a result of its unique structure, the organization estimates that it saves $250,000 a year because no one is having to watch time-cards and vacation days. Furthermore, the turnover rate in the organization is very small.

Quesiton 1. Do you think Bluewolf's organizational structure could be effective in other types of organizations? If so, in what types of organizations do you think this organizational structure would be the most effective?

Quesiton 2. How do you think the lack of a formal vacation policy increases effective communication at Bluewolf?

Quesiton 3. Do you see any communicative problems that may arise out of the organizational structure created by Bluewolf?