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Influence of organizational culture on innovation
Influence of organizational culture on innovation
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Organizational Impact Paper
Introduction
Organizations determine their structure by the various goals the organization wants to achieve; however, organizational structure can facilitate or deter the organizations advancement with regard to the accomplishment of these goals. Both small and larger organizations can attain increased sales and added profits in appropriately matching their structure with their needs to function. The three organizational structure types are, functional, divisional and matrix.
Innovation has a significant impact on the organization giving it a competitive advantage, and today organizations must be innovative to be successful and competitive in the marketplace. Ideas of innovation not only impact organizational strategy, the process, service, and products offered to the consumers. Innovative ideas require the organizational leaders to identify how the implementation process will proceed and its success based on the structure of the organization.
UPS (United Parcel Service) - Functional Structure
United Parcel Service (UPS) is continually finding innovative ways to remain the world’s largest package delivery company. Founded in 1907, the innovative strategies have continued in offering package delivery, logistics service, and specialized transportation in over 200 countries globally.
In 1907, the company started by James Casey in Seattle, Washington, called the American Messenger Company, and opened with the minimal sum of $100.00 Casey borrowed from a friend; Casey saw the need for this delivery service and in 1919 expanded to California, and was renamed United Parcel Service. According to UPS (2014), one of the first innovations was “building the first conveyor belt system for handling packages....
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...ices at high efficient levels while reducing operating costs is a formula for generate profits and creating a competitive advantage. To achieve these objectives organizations will have to rely upon not only offering quality products and services but also incorporating methods of innovation. Innovative ideas require the organizational leaders to identify how the implementation process will proceed and its success based on the structure of the organization.
Works Cited
Bank of America. (2014). retrieved from: http://message.bankofamerica.com/heritage/
Bank of America. (2014). retrieved from: http://about.bankofamerica.com/en-us/our-story/where-we-are.html#fbid=Ptrgtqv0df2
Dow Chemical (2014) retrieved from http://www.dow.com/innovation/resources/
United Parcel Service. (2014). retrieved from: http://www.ups.com/content/us/en/about/history/index.html?WT.svl=SubNav
Real Threat of Substitute Products or Services: High customer satisfaction earned through conscientious drivers, high reliability, and Internet-based tools has kept UPS at the top. UPS has created an economic advantage by assembling a dense integrated global shipping network that is unlikely to be matched by any but a few global players.
UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management, logistics, and financial services. UPS used to be a trucking company with technology, now it¡¦s a technology company with trucks. One of the UPS¡¦s key success factors is the way they manage their operations. Their carefully designed network of vehicles, sorting facilities, and hubs combined with their IT system, allows them to pick up 13 million packages each day from 2 million addresses for delivery to over 6 million commercial and residential addresses worldwide with highest levels of reliability, efficiency, and speed. Also the integration of its air and ground operations gave UPS the ability to optimize utilization of its assets while still meeting customer service requirements. Other key success factor is UPS¡¦s human resource management. UPS has lowest turnover rates in the industry and succeeds in developing a portion of its workforce for management positions each year. The company¡¦s unique culture emphasized accountability and efficient execution at every level of the organization.
United Parcel Service (UPS) was founded in 1907 as a messenger company. It has grown into a multi-billion dollar corporation. Today UPS is a global company and one of the most admired and recognized brands in the world. UPS has become the largest delivery package company and leading provider of specialized transportation and logistics services in the world.
UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service. UPS has continued its strong marketing efforts in overnight and deferred air services. Both of these carriers have introduced information systems, which include user-friendly Internet interfaces. The carriers have also expanded logistical services and improved integration with customer supply chains.
First of all, organizational structure determines the hierarchy, the levels of communication, and how job tasks are formally divided, grouped and coordinated within an organization (Langton, Robbins, & Judge, 2013). There are six key elements that managers need to address when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization (Langton et al., 2013). The way in which an organizational structure is constructed and implemented can affect company productivity.
In August of 1971, Smith started his venture by buying controlling interest in Arkansas Aviation Sales. While operating his new firm, Smith recognized the tremendous difficulty in getting packages delivered within one- to- two days. This dilemma motivated him to do the necessary research for resolving the current inefficient distribution system. Thus, the idea for Federal Express was born: a company that revolutionized global business practices and now defines speed and reliability1.
The Different Ways Organizations Can Be Structured and Operated There are four major ways a company - organization can be structured and operate. P.C.G (o) Ltd I would dare say that is structured and operates with the functional structure. In order to make it clear and understandable I am analyzing here below the four ways that organizations can structure and operate. We will observe that all four structures have there advantages and disadvantages. In order also to assist you understand better the differences of the four ways that organizations can be structured see in Page 4 & 5 Figures 1,2,3 which are the layout of the organization charts for each structure: 1.
UPS is a global parcel transportation company, if we look at the numbers we could say that UPS is the third biggest parcel delivery company in the world.
Founded in 1907 in Seattle, Washington, by James E. (“Jim”) Casey as the American Messenger Company, United Parcel Service has grown and expanded in both size and scope of operations, until today, it is a leading logistics company providing global package delivery and supply chain management services. Successful air operations began in 1953 with Blue Label Air, and in 1988, the Federal Aviation Administration authorized United Parcel Service to operate its own aircraft, resulting in the launching of United Parcel Service Airlines. Today, United Parcel Service Airlines is one of the largest airlines in the United States, employing nearly 5,500 people and operating an extensive hub-and-spoke network that consists of nearly 540 aircraft servicing
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
This seems nearly impossible but when a company is well organized and has excellent communication throughout the company, it makes shipping these packages a lot more simple. On a regular basis UPS has communication meetings between operation managers, and first line employees (Soupata, 2005, p. 97). Other than these meetings, employees communicates mainly through a communication channel called, UPSers.com. This allows employees to stay up to date on things going on throughout the company and allows easy access to contact information for the person of interest. They can also use UPSers.com to check the benefits the company provides for them.
Innovation, every organization wants it, but most cannot grasp proper change. In fact, more than two thirds of innovative efforts fail. Look at corporate giants like Kodak, Blockbuster, Motorola, Toys “R” Us and Yahoo. Every one of those companies where paramount, dominating their market and somehow they all lost their edge. Why? Because of disruptive internal culture.
Prior to the interview I did understand that innovation architecture is an effective way to map out the potential paths that a company can take to gain success and uniqueness, but I did not realize how in depth those innovative portfolios should be. With this interview my new understanding of the innovative portfolios should consume of as many ideas as possible that will put the organization toward the projected goal and gain a competitive advantage. With this acquired knowledge from the interview, I now understand how businesses will suffer without the effective ideation process that builds the innovation architecture. Furthermore, I understand fully of the importance of teamwork and collaboration while constructing the innovations that will build the companies
One of the most integral qualities of an entrepreneur as well as that of a successful business is the degree of innovation it possesses. Innovation refers to the creation of new ideas, improvement of existing production processes, and effective problem solving. Innovation allows for increased efficiency in a business, which in turn increases its supply potential and productive capacity. Being innovative may involve either improving upon old methods o...
Most organizations fall under one of three organizational designs: simple structure, bureaucracy and matrix structure. The organizational design of a company suggests who makes executive decisions and how they are enforced. The organizational design is typically decided based on the size of the company and market place.