Reference no: EM133573142
Case Study: Imagine you have found a country and a business that is interested in acquiring Tresha's business (from the previous assignment)! The company is called Jewel! They have more than 10,000 employees working in 30 countries around the world-with no hierarchy structure. They have a model of unusual business practices. The company has no bosses, no titles, no departments, and no formal job descriptions. There is no managerial hierarchy and top management treats employees, called associates, as peers. They have a centralized organizational structure, meaning that all decisions are made by a committee of employees. This is in contrast to the more traditional hierarchical structure, where decisions are made by a single person or a small group of people at the top of the organization.
The company focuses on its products and company values rather than on individuals. This means that the company is more interested in producing high-quality jewelry and creating a positive work environment than it is in promoting individual employees. Because no formal lines of authority exist, employees can speak to anyone in the company at any time. This arrangement also forces employees to spend considerable time developing relationships. As one employee described it, instead of trying to please just one "boss," you have to please everyone. Several years ago the company underwent a "strategy refresh," conducting surveys and discussions with employees about how they fit into the organization's culture. Not surprisingly, there was a cultural divide based on multiple generations of workers and length of service stature, which Kelly and her associates have worked hard to overcome. She realizes that not everyone will become a "lifer" at Jewel, but recognizes the importance of younger employees who have helped the company become more tech-savvy in communications and stay well-connected in a fast-moving business world.
The informal organizational structure continues to work well. With revenues of $3 billion, the company produces thousands of products. Its corporate structure fosters innovation and has been a significant contributor to associate satisfaction. Employee turnover is a low 3 percent a year, and the company can choose new associates from the thousands of job applications it receives annually. The company uses teams to develop and launch new products. These teams are switched around every few years, which helps to ensure that everyone has a chance to work on different projects and learn new skills.
Finally, all employees are expected to make minor decisions instead of relying on the "boss" to make them. This is because the company believes that employees are more likely to be engaged and committed to their work if they have a say in the decisions that affect them. There are a number of benefits and challenges associated with a centralized organizational structure. Some of the benefits include:
Improved decision-making: A centralized organizational structure can lead to improved decision-making because it allows for a variety of perspectives to be considered.
Increased employee engagement: A centralized organizational structure can lead to increased employee engagement because it gives employees more autonomy and responsibility.
Reduced costs: A centralized organizational structure can lead to reduced costs because it eliminates the need for multiple layers of management.
Some of the challenges associated with a centralized organizational structure include:
Slow decision-making: A centralized organizational structure can lead to slow decision-making because it can be difficult to get everyone on the same page.
Reduced employee morale: A centralized organizational structure can lead to reduced employee morale if employees feel like they have no control over their work.
Increased bureaucracy: A centralized organizational structure can lead to increased bureaucracy because of the need for multiple layers of approval for decisions.
Questions: Critical Thinking Questions (DO NOT USE AI TO ANSWER THE QUESTIONS):
- Is Jewel a mechanistic (centralized) or an organic (decentralized) organization? Give examples
- How do you think the organizational structure at Jewel affects moral?
- Who you recommend that Tresha sells her company to Jewel? Why or why not?