Xacc/280 Week 3 Paper
Week 3 DQ
Organization is a social unit of people that is structured and managed to meet a need or to pursue collective goals. (Businessdictionary.com)
Organization as a structure distributes responsibilities among the members of the company (child 2005, p.6). By allocating people and recourses to the necessary tasks and designating responsibilities, the organization contributes to the successful implementations of its goals.
While organization as a process focus more closely on behaviors, clarify to people what is expected from them. There are 3 key factors to organizing a process: 1- integration, 2- control, 3- reward. (child2005, p.8)
By these definitions we can simplify the difference by saying that structure can be the “frame” of the organization while process is the collaboration between the divisions in the frame. One works in Hierarchy while the other delegates amongst a flat panel. …show more content…
Coming from these points, the best example for a company that went from structure to process would be “Nestle”.
As one of the largest companies in food industries, it has found limitations to the hierarchical pyramid. So in 2002 it implemented a program called “Nestle on the move” which consists of two subdivision programs:” Leadership program” & “Develop people initiative program”. With this program the company moved from hierarchical structure to a flat structure where managers have more direct reports, who then must act independently. Nestle has found 7 limitations to the pyramidal model: vertical career path – command communication – company experience – internal competition – silo thinking – obedience orientation & delegation of task rather than
authority.
With its program, Nestle has targeted the areas in which would help the company to grow. First, employee’s actions should be in line with company’s goals. Second, employees must convert their experience into meaningful insight. Third, employees must be cooperative not competitive. Finally, they need to take initiative not be passive.
In 2003, about 450 executives attended the program which jumped to 4,000 middle managers in the year 2006.
When Nestle flattened the organizational structure, it allowed employees to increase their remunerations without promotion.
With these initiatives and programs, Nestle has continued to grow internationally with a profit of 12$ billion in 2012. It has continued to be one of the largest food industries in the world.
As a conclusion, there is a difference between structure and process in the organization. Both have their advantages and disadvantages, and if one company can modify the disadvantages in each component, it will surely grow and reach its target.
Thank you.
Child, J. (2005) Organization: Contemporary Principles and Practice, Blackwell Pub.: Malden, MA.
Imd.org (April, 2008). Nestle on the Move http://www.imd.org/research/.../upload/PFM156-LR_Broeckx-Hooijberg.pd Access date: (21 June, 2013)
swissinfo.ch (2013), Nestlé posts 2012 profit of SFr10.6 billion http://www.swissinfo.ch/eng/business/Nestle_posts_2012_profit_of_SFr10.6_billion.html?cid=34990032 Access date: (22 June, 2013)
Organization is a social unit of people that is structured and managed to meet a need or to pursue collective goals. (Businessdictionary.com)
Organization as a structure distributes responsibilities among the members of the company (child 2005, p.6). By allocating people and recourses to the necessary tasks and designating responsibilities, the organization contributes to the successful implementations of its goals.
While organization as a process focus more closely on behaviors, clarify to people what is expected from them. There are 3 key factors to organizing a process: 1- integration, 2- control, 3- reward. (child2005, p.8)
By these definitions we can simplify the difference by saying that structure can be the “frame” of the organization while process is the collaboration between the divisions in the frame. One works in Hierarchy while the other delegates amongst a flat panel. …show more content…
Coming from these points, the best example for a company that went from structure to process would be “Nestle”.
As one of the largest companies in food industries, it has found limitations to the hierarchical pyramid. So in 2002 it implemented a program called “Nestle on the move” which consists of two subdivision programs:” Leadership program” & “Develop people initiative program”. With this program the company moved from hierarchical structure to a flat structure where managers have more direct reports, who then must act independently. Nestle has found 7 limitations to the pyramidal model: vertical career path – command communication – company experience – internal competition – silo thinking – obedience orientation & delegation of task rather than
authority.
With its program, Nestle has targeted the areas in which would help the company to grow. First, employee’s actions should be in line with company’s goals. Second, employees must convert their experience into meaningful insight. Third, employees must be cooperative not competitive. Finally, they need to take initiative not be passive.
In 2003, about 450 executives attended the program which jumped to 4,000 middle managers in the year 2006.
When Nestle flattened the organizational structure, it allowed employees to increase their remunerations without promotion.
With these initiatives and programs, Nestle has continued to grow internationally with a profit of 12$ billion in 2012. It has continued to be one of the largest food industries in the world.
As a conclusion, there is a difference between structure and process in the organization. Both have their advantages and disadvantages, and if one company can modify the disadvantages in each component, it will surely grow and reach its target.
Thank you.
Child, J. (2005) Organization: Contemporary Principles and Practice, Blackwell Pub.: Malden, MA.
Imd.org (April, 2008). Nestle on the Move http://www.imd.org/research/.../upload/PFM156-LR_Broeckx-Hooijberg.pd Access date: (21 June, 2013)
swissinfo.ch (2013), Nestlé posts 2012 profit of SFr10.6 billion http://www.swissinfo.ch/eng/business/Nestle_posts_2012_profit_of_SFr10.6_billion.html?cid=34990032 Access date: (22 June, 2013)