management-principles
Chapter 7 Reading Comprehension Exercises
1) Discussion Questions 1, 2, 3, or 5 on page 334 (one question from this section)
Question 3
What are the pros and cons of Toyota’s structure?
Toyota company is a multinational business structure whose structure (Organizational) is formalized in its rules (explicitly). One of the major pros of the organizational structure in the company is that the structure plays a critical role in allowing greater efficiency when it comes to the management of the company. Indeed, this efficiency is vital in forming a well-established chain of command when making decisions and reducing conflicts and duplication. On the other side, one of Toyota’s organizational structure cons is that it favors effective leaders only without considering the weak leaders when it comes to making poor decisions, thus bringing an overall negative effect to the entire organization.
Although the company has been facing a various crisis which has the magnitude of paralyzing productivity when not handled effectively and constructively, the organizational structure is utilizing the crisis as a way of presenting learning opportunities and improvements. Indeed, the company’s corporate culture and the seniority hierarchy are rigid, thus making it to be at the risk of reacting slowly to the external threats. As a result, the individuals in the company are finding it hard to communicate up the chain of command. More importantly, the structure has a centralized power implying that the authority is not delegated generally within the company. Most of the flow of information within the company is one way something disadvantageous to the company.
2) Exercise 7.2 Questions 1 or 3 on page 343 (one question from this section)
Question 1
What are the advantages and disadvantages of decentralization?
Research implicates that the effect of the decentralization of authority has diverse advantages and disadvantages. One of the benefits is that it leads to the diversification of various activities in an organization. It is an aspect that reduces the burden carried by the chief executives when making their decisions (routine). Secondly, decentralization also leads to the development of personnel (managerial). More importantly, it also improves morale in an organization, not forgetting to mention that it leads to the satisfaction of several human needs. Decentralization also causes adequate supervision and control. It also plays a critical role in making wise and quick decisions. Indeed, it improves employee management and excellent management utilization. However, decentralization also increases the social net product, employee management, and it also reduces the top executives’ burden. It increases flexibility, develops the manager’s quality, ensures effective control, better coordination, and effective facilitation of diversification, just mentioning a few.
On the other side, decentralization is also known to utilize only the services provided by talented people (exceptionally). In this case, when the financial resources are weak, appointing such people is not easy. Besides, decentralization is not possible in some areas, thus making the external factors such as extensive strikes difficult. When it comes to different units within the organization, various issues of coordination are raised by decentralization. Highly-paid managers are supposed to be appointed, and this is an element that increases the expenses of administration. More importantly, it is also critical to note that decentralization leads to a high cost when it comes to operation. It is caused by the establishment of diverse employment of specialists and new departments in each department. The other aspect is that there is a lack of uniformity when it comes to actions and policies because individual managers from their geniuses when designing them. The small firms do not work effectively with decentralization because it improves their operation costs. The other disadvantages are that it leads to self-centered attitudes, and it leads to reliance on the managers.
3) Exercise 7.3 Any of the Questions on page 348 (one question from this section)
Question 2
What do you think are the advantages and disadvantages of being employed by a boundary-less organization?
A boundaryless organization is known to play a critical role when it comes to the loosening of the firm (very) organizational structures in the big corporations. In this context, it is essential to note that the advantages of a boundary-less organization are allowing the sub-organizations and employees to become more responsive. Indeed, these types of organizations make them responsive when it comes to the changing of the opportunities in the market and creating collaboration across the strict organizational boundaries (internal). It is critical to note that the current meaning of boundaryless is that there is no real organizational structure. However, the small companies have strong shared goals and vision hence leading to several advantages such as shared excitement, collaboration, and increased flexibility.
It is also critical to note that there are various disadvantages when employed in a boundaryless organization. For instance, the startup partners sometimes find that the shared vision and values not to be identically weighed and understood. The same happens when it comes to the founders. However, this issue becomes a bigger problem when it comes to making some critical decisions that involve risks and tradeoffs. Indeed, the availability of an effective organizational structure plays a vital role in establishing accountability and responsibility for the outcomes of decisions. Healthy companies are useful in finding the right balance between fluid collaboration and structure, which fits maturity, size, and overall goals. Indeed, creative professional teams are not best (probably) when it comes to suiting a company whose products can have death and life impact on the users.
4) Exercise 7.4 Any of the Questions on page 360 (one question from this section)
Question 2
How would you deal with employees who are resisting change because their habits are threatened? How would you deal with them if they are enduring because of a fear of failure?
Several issues of resistance to changes are caused by diverse types of attitudes, which the staff is liable when it comes to the development of jobs and introducing change in their ideas. There are several ways through which management is capable of influencing the attitudes and dealing with the problems from the roots of their sources. One of the best ways of dealing with such issues is broadening the interests of the staff. It is an aspect that can be done in four different perspectives. One of the aspects is that the managers can encourage the importance of the team through often and wise timing in diverse starting projects. The other way is that the managers can be involved in coaching and leading by examples and ensure that they prod the staff so that they can develop healthy respect when it comes to their contributions. Indeed, the managers need to focus on the receiving of the operating people and causing success in several areas, which are critical in solving any arising problems.
The third way is that the staff can be helped by the management so that they can be able to recognize how they can be able to derive satisfaction. It is something that can be done by showing them how to be both creative and productive. It is possible to stimulate the staff people by inducing a thought which they can be able to find satisfaction when it comes to setting sharing organizational pleasures with the other people through creativity. The other way is leading the staff people so that they see the winning acceptance of ideas through better handling and understanding of human beings both as rewarding and challenging and the production of the concept. More importantly, using understandable terms because some terms are viewed both as specialized and complicated, thus being too hard to be explained to the operating people.
Most employees are known to resist changes because it affects their core job responsibilities and the way they can be able to complete their tasks. When employees resist change, the aspect affects customer service and production. In this case, it is essential to open the lines of communication and also listen to the feedback of the employees when it comes to the implementation of new changes. Even when things do not go back to the healthy aspect, it creates greater satisfaction because the employees know that their concerns are heard. When the employees resist changes because of fearing failure, the organization has to take effective strategies of preparing for a change and establish effective two-way communication with the leadership. It is essential to avoid surprises to the employees because rumors have a high probability when it comes to sabotaging the change of efforts.
5) Exercise 7.5 Any of the Questions on page 367 (one question from this section)
Question 1
What are the benefits of employee participation in change management?
There are several benefits of promoting the participation of employees when it comes to changing the management of an organization. Human resource professionals and managers in most organizations find it a significant challenge to increase the participation of employees. Research shows that suggestions and feedback are critical when making essential changes that play a crucial role in benefiting all participants. In this case, establishing clear channels of communication through the HR personnel and managers is mission-critical. Indeed, asking questions concerning the employee feelings in workflows, rewarding them, and also listening to their responses because of their participation is vital in making them continue with motivation.
Indeed, the benefits of employee participation when implementing change in the management are well worth and clear. One of the advantages is building a stronger community because it includes the involvement of everybody, thus making the company benefit from the development of the entire community of employees. The other benefit is that it improves communication by breaking down the traditional barriers of communication. It is also critical to note that encouraging employee participation reduces stress among the employees in an organization. Indeed, engagement is essential to reducing stress to both the employers and the employees. The other critical benefits of encouraging employee participation in change management are boosting productivity and increasing the quality of the products through employee engagement, which ensures that the final products which are produced by a company are better and satisfactory.
6) Exercise 5.6 Any of the Questions on page 369 (one question from this section)
Question 1
What do you think are some key reasons why people resist change?
Introducing change in an organization does not come easy, and that is why several companies fail to make necessary changes, which can make them survive. More often, managers and senior leaders over-estimate the changes which need to be put in an organization. Implementing changes and leading requires various skills. In connection to this, one of the reasons why people resist change is that they fear losing the status of their job and also the security of their career in a company. People fear to make changes that impact their current position and situations. As a result, most managers, peers, and employees resist technological and administrative reforms, which result in the elimination or reduction of their roles. The second reason is non-reinforcing (poorly aligned) reward systems. When stakeholders do not see any rewards, they do not support any changes within the organization. Changes without rewards do not motivate the employees or any other person within an organization hence leading to the failure of supporting modifications.
The other reason for resisting change includes fear and surprise of the unknown. The less the team members know about a specific change, the less they are when it comes to supporting the amendment. The other reason is peer pressure, where extroverts and introverts resist any changes so that they protect their interests in the group. Besides, a climate of mistrust does not support any organizational changes. Intentions, faith, and trust of the other people are critical in ensuring mutual trust, which otherwise leads to conceived changes and initiatives of failure. The other reason is organizational politics, where some people resist changes as a political strategy of proving that the change is wrong. At some other times, they restrict changes because they feel that the people leading the changes cannot stand up to the changes. Other reasons include fear of failure and faulty implementation approach, just mentioning a few.