Organizational Behavior and Design: X-Stream

Name:

Course:

Institution:

Instructor:

Date:

Organizational Behavior and Design: X-Stream

Introduction

X-Stream Company was started by Gil Reihana six years ago, engaging in assembling of personal computers for New Zealand and Australian markets. The company sells the products through chain stores as well as independent retailers. The company has grown in size ever since it was started, to include a software division that specializes in web designing and consultancy in a variety of electronic business applications development. At first, Reihana employed a young senior management team that he thought shared same ambitions and ideas. However, this was faced by several issues such as lack of organization in the accounting department. While the company was new, Reihana met all staff, members and decisions were made on a consensus. Considering the company was new and small, a formal organization was not much needed since control was easy. However, as the company has grown bigger, using an informal organization is becoming harder and harder, posing problems and complexity of managing the company. The informal structure is one of the main issues that are causing problems where the senior management handles their department issues independently from other departments without interference from the CEO. The current conflict between the marketing department and productions department results from lack of cooperation between the departments. Other conflicts come in such as from the accounting department that also wants new accounting software and Heather Berkowitz said there was a another job to do. Communication is yet another issue where the employees are not aware of what is going on in the company. More so, communication seems to be flowing in one way, from the top to bottom, and rarely from bottom to top. There seems to be no agreed management style in X-Stream, where each manager utilizes his or her own management style.

Analysis

The informal culture within the management is the main issue in this company, where control is failing. The company is changing but the people in the management are not changing, making it hard to incorporate a formal culture that will be of benefit to the company as well as other stakeholders. There is a resistance to change, where the managers such as Head do not want things to change when the new human resource suggests a performance measure. They are used to doing their management job in the informal culture, which they believe allows creativity. However, this is dividing the management into divisions according to the departments. Each department is concerned with its own success without considering the other departments. This has brought conflicting interests between the departments that result to conflicts such as the above-mentioned one between marketing and productions department. Each department manger is interested in getting their ideas considered before others. Communication is yet another issue in the company that is causing problems. When communication in the company fails, operations do not go as intended. X-Stream leaves the department managers to ensure their subordinates are well informed on issued within the company such as developments, to prepare them. However, very few of the managers have taken time to inform the employees of current developments. Another issue that is arising is lack of performance appraisal for the managers. Information seems to flow from top to bottom, and never two-way. The managers do not listen to their employees’ ideas or views. For instance, the production manager does not consider the views of his staff, which is having many complaints despite his emphasis on quality and perfection. This causes demotivation in the workers, especially when they are scheduled for overtime hours without early notices. Hence, there is no chance for feedback on issues for performance appraisal. A manger’s performance is not only based on what he achieves, but also the way he or she manages to keep their staff motivated. In addition, there is no criterion put in place for performance evaluation, which makes things harder to control.

Solution

On the issue of an informal structure, the company has to change since the size of the company has increased, requiring formal structures of control. Despite the company needing a formal structure, informal structures will always remain because of interactions of people within the workplace. X-Stream can make use of both to achieve goals. The fist step n formalizing the operations is setting out the policies and procedures of operations. They should not be too strict to hinder creativity or change. Objectives should be defined at every department, in alignment with the overall objectives and goals of the company. After formalizing goals and objectives as well as procedures of operations, all the departments should be connected to work towards the broad goals of the company without having to compete amongst each other for resources, while they achieve their objectives. Considering the company deals in a market that is likely to be faced by many uncertainties, the management should adopt a situational management theory, one that will be flexible to allow changes and implementation of strategies within short periods. In order to make this management theory a success, there will be need for teamwork between the managers and the staff in dealing with issues that arise. Managers should allow the staff to contribute ideas to the organization considering they are involved in the main tasks; hence, they know more about their jobs. Moreover, this will motivate them to work harder since they will be exercising their ideas. With situational management, human relations management can also be practiced, where the organization is concerned about the welfare of its employees. When employees know that the management is concerned about their welfare, they are motivated to do their jobs. Communication will also be needed in order to succeed, which is a requirement for any organization. To improve communication, flow of information should be two-way, from both top and bottom. Employees have a right to know any developments taking place in the company if they are to participate in ensuring its success.