In the post-war era, Philips employed a NO (National Organization) structure. The idea was to increase the self-sufficiency of each individual country organization to operate independently from the headquarters and to become adaptive to country-specific market conditions. Philips’ NO structure had great advantages in responding to various country-specific consumer preferences, economic conditions, and different standards. Philips’ NO structure evolved to worldwide geographic structure by encompassing technical capabilities and product development.
Philips’ success during the post-war era is mainly attributed to the NO’s autonomy, the culture, and the corporate accommodation. NOs had an autonomous capability to develop product specific to the local demand. Because Philips employed a worldwide geographic structure, each NO unit acted as an independent company. Because of its autonomy, NOs had the majority control over the product development, the sales, and the operating budget. This enabled NOs to respond quickly to meet the specific changes in local demands and to develop their own products.
Philips brothers set a precedent for the cross-functional coordination. NO’s management structure mimicked the leadership of Philips brothers. A technical manager and a commercial manager led an organization and they had a cross-divisional coordination. The culture permeated the organization and at each level of management. In effect, the culture promoted functional neo-matrix structures within NOs.
The company accommodated NOs to promote autonomy with minimum intervention. The company did not implement an effective control mechanism. Instead, it promoted coordination efforts by providing NOs with supports from management board and ICC (...
... middle of paper ...
...deas in global scale as the chairman of Samsung did since the 2000s.
Philips faced numerous contenders in the consumer electronics market throughout its history and lost its lead in mid ‘80s. One of the strongest contenders of its time was Matsushita. Today, Matsushita faces a formidable contender in its key LCD market. How the story will fan out is remained to be seen. A strong company culture can lead a company to a success. However, as the market conditions change, the company culture must deal with the change. A strong company culture does not change overnight and often takes years to change. It is important for an organization to stay nimble, flexible, and lean. At the same time, the company must foster innovation and creativity. As we witnessed in Matsushita case, an organization can foster innovation through cultural and structural organization changes.
After completing the “Cooperative Discipline” course through the Regional Training Center, I am planning on revising my behavioral management techniques to follow the cooperative discipline model in my eighth grade English classroom. The cooperative discipline, or the hands-joined style, is a more appropriate approach to managing behaviors in my classroom than the hands-off or hands-on styles. With the hands-off style, there is too much freedom and not enough structure in the classroom, and with the hands-on style, defiant students are likely to rebel against the teacher’s strict rules. However, with the hands-joined style, “students are included in the decision-making process and therefore are strongly influenced to develop responsibility and choose cooperative behavior” (Albert, 2012). When students are provided with clear expectations but are still part of the decision-making process, they are more likely to behave appropriately in the classroom.
On the other hand, acting cooperatively does not only protect, but can also enrich our lives. To echo World War II veteran J. Glenn Gray, “many veterans who are honest with themselves will admit, I believe, that the experience of communal effort in battle, even under the altered conditions of modern war, has been a high point in their lives” feeling “earnest and gay at such moments […] liberated from [their] individual impotence and […] drunk with the power that union with [their] fellows brings” (44;45). Perhaps the attractiveness of community and cooperation stems from its central role in our survival. However, it also facilitates acting in a manner that reflects positive moral principles. Gray proceeds to describe that there exists a “willingness
Managing transformational at National Computer Operations is an article discussing the dilemmas faced when a company is forced to implement changes within a two year timeframe in order to compete with other emerging computer technology companies. NCO’s Managing Director Gar Finvold, decided to review NCO’s market position and to look for improvement opportunities that change implementation enhancements would ensure that NCO would emerge and maintain their position as the leading computer support services firm.
N.V. Philips (Netherlands) and Matsushita Electric (Japan) are among the largest consumer electronics companies in the world. Their success was based on two contrasting strategies – diversification of worldwide portfolio and local responsiveness for Philips, and high centralization and mass production for Matsushita.
General Motors is knocking on the door to world class business performance. Ohmae’s five stages of global operation support General Motors aspirations. From stage one to stage five there are significant differences to becoming a global organization. For instance, stage one, states that a company supports arm’s length customer export activity by a domestic company that links up with local and distributors to function. This stage represents the entry level global corporation. General Motors is at stage 4 of Ohmae’s five stages of becoming a global corporation, because it has exemplified the following traits: Systems and tools used globally not just at headquarters, R&D, Engineering and other business operations have a global focus, and all support functions are applied globally. (MFGO 601, WK. #2 Lecture Notes) An example of Ohmae’s, stage ...
The last but not least element of the Samsung’s “cost puzzle” (which, unfortunately cannot be supported by concrete numbers from the case study, and is rather based on intuition) was the way the firm built and maintained intellectual capital and stimulated innovativeness and creativity among employees. It had established an incentive-based remuneration system, it sponsored employees for PhDs and MBA education, it created a family-friendly working environment in which more of employees’ energy could be devoted to solving problems at work instead of troubles in private lives. In most modern industries, such a long-term approach and investing in human capital eventually pays off resulting in higher productivity and better and cheaper products.
Sharp’s business philosophy is to use its innovative technology “to contribute to the culture, benefits and welfare of people throughout the world” (Noda 25). Sharp is constantly trying to position itself as a leader in innovation as further supported by its business creed, which states to “constantly be aware of the need to innovate and improve” (Noda 25). However, this focus on innovation and creativity has not always been consistent with how the company has been operated. The history of the company is replete with periods of both innovation and imitation.
... organizational structure that needs to be maintained for its operations in Australia. As the suggestion has been of total ownership thus span of control is needed and these factors have been discussed in this report to illustrate how effective the organization can be in Australia.
(2014) is “the way in which leaders interact, make decisions, and influence others in the organization” (p 237). The culture needs to foster cooperation from all areas of an organization, while providing the ability for adaptation and growth. Not all organizations culture will be the same, there is not a correct one that can blanket all organizations to cozy success. (3) Talent Systems. Human capital drives all organizations, the right people need to be in the right jobs with the correct opportunities for growth and advancement. There must be a constant search for strategic thinkers and leaders able to step up with called upon. The authors mention “Talent Sustainability” (p. 248), there must be enough qualified employees ready to move up so the organization will not stall while searching for others to replace others due to attrition, or other opportunists. (4) Organizational Design, must take a number of variables into account while providing structure to an organization. Hughes et al. (2014) state “the design of the organization is a trade-off between options, each with advantages and disadvantages” (p 253). The correct design can help clear the hierarchy of an organization and the proper channels for
The third Case Study “Home Depot’s Blueprint for Culture Change” studied Mr. Robert Nardelli’s role as the CEO of Home Depot. He approached management in an autocratic style, which was criticized by many. This paper will take a look at how Mr. Nardelli’s style follows Kotter and Cohen’s model of change.
Organisational Structure, Culture, and Management Style of a Business C2 An Analysis of How the Organisational Structure, Culture And Management Style of the Business Affects its Performance and Operation and Help It to Meet Its Objectives The organisation structure of Wednesbury IKEA The organisation structure in the ‘Appendix section’ belongs to the Wednesbury branch of IKEA. Wednesbury IKEA is a large formal organisation and it is best suited to a hierarchical organisational structure. This is because; there are more employees as it goes downwards from each level.
Firstly, Philips’ main capability is the decentralised structure with strong local subsdiaries, which is the National Organisations (NOs). Philips established NO after the war to replace the destroyed industrial plant in Netherlands. During this period, electronics was seen as luxury good and trade barrier between nations was high. The decentralised structure supports Philips in competing effectively with local competitors and enables them to adapt with the diverse local market. Each NO had the their strength and resources to sense and perform adaptive marketing as well as develop their product to respond the local differences. It is reflected in its television product. The first color TV is created in Canada, while the first stereo TV is created in Australia and the teletext TV is created in UK (Bartlett, C. A., 2001). The strong independence of these local subsidiaries also reinforced by the communication barriers during that period (Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M., 1995). The decentralised structure gives high degree of independence in each international unit, including decision-making autonomy (Daft, R. L., 2009). In the case of Philips, NOs as local subsidiaries had more power over the Product Departements (PD), as Philips gave NOs financial autonomy as well as liberty to set their own target. Thus, the NOs ability of autonomous marketing and product development function had become Philips m...
The challenge was to overcome the overall resistance to change and find a way to get the organization behind ArcTech Flooring, the new specialty product. A culture of customer disengagement and communication problems among divisions along with past norms held by key senior managers made initiating radical innovation difficult. These norms made up the division's mechanistic organizational structure, incentives that are based on overall sector performance, operational competencies, and low risk culture, all of which hindered innovation. This paper explores the leadership challenges involved in managing strategic change in a highly mature Arctic Timber Engineered Woods Division.
It brought organisational culture to the performance of a company, which has become a critical topic in management department. In addition to organisational culture, organisations need to be aware and prepared for changes in the expanding workforce as business grows. Companies are faced with maximizing benefits as well as profits while minimizing negative factors that come from those changes. There is no one answer to the issue, but some of the guidelines are clear. Awareness of organisational culture, teamwork, individual performance, external environment adaptation, leadership, and measurement of organisational culture are key factors that lead a company to perform better.
Matrix structure is first introduced in the aerospace industry in the 1960s and become one of the popular organizational design options in today’s business and industry (Derven & Alexandria, 2010). Burns and Wholey (1993) poinited out that matrix structure were used in advertising agencies, aerospace firms, research and development laboratories, hospitals, government agencies, and universities. Matrix structure is the combination of two or more different structures and take the advantages of the pure functional structure and the product organizational structure (Robbins & Judge, 2011, p. 497). The employees in the matrix may have two bosses: their functional department managers and their product managers. For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a project manager while working on that project. In many organizations, a matrix structure is implemented to address the requirement to do more with less and become more agile. The matrix structure, which focuses on horizontal as well as vertical management, has become more widespread as a result of globalization and the...