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Submitted By:SWARUP SAMAL
CHANDAN KR. DUBEYGYAN SWAROOP DAS
OVERVIEW
Ben Cohen & Jerry Greenfield opened an ice-cream parlor in Burlington.
Primary goal was to make & sell super-premium ice-cream.
The parlor grew to a $45 million company with 150 employees in just 10 years.
It had an unique culture with emphasis on fun, charity & goodwill towards fellow workers up and down the line.
BEN COHEN AND JERRY GREENFIELD
BEN & JERRY’S ICE CREAM PARLOR
HAS BEN & JERRY FORCED TO GROW ?
The company doubled it’s size each year between 1978 & 1986.
Growth was maintained for it’s survival.
Market for super premium ice-cream was maturing in 1980’s.
There was a host of new competitors.
In 1985, for the establishment of new factory with greater capacity to meet the demands.
IS BEN & JERRY’S ORIGINAL CULTURE HINDERING THE
ORGANIZATIONAL EFFECTIVENESS ?
Organisational culture:
The organization began as more than just a “profit-making venture”.
Gave emphasis on fun, charity & goodwill towards fellow workers up & down the line.
Managers wore jeans & T-shirts. No executive was allowed to earn more than 5 times what
the lowest paid employee made.
They provided free therapy sessions to the employees.
CONTINUED….
Monthly holiday for staff meetings.
Decentralization or horizontal communication in company’s decision making process.
Donation of 7.5% of company’s income to the society development.
Handicapped were also hired for employment.
LACK IN ORGANIZATIONAL EFFECTIVENESS
Managers started wearing tie.
Centralization took place – one way comm. down the line took place
Departments started duplicating work
Policy of 5:1 ratio of salary got failed
Managers complained about making 60-70% higher salary at other places
Policy of 5:1 ratio made the recruiting difficult.
CAN BEN & JERRY’S MAINTAIN THEIR ORIGINAL CULTURE AND AT THE SAME
TIME, CONTINUE TO GROW ?
Yes, Ben & Jerry can continue to grow by maintaining their original culture. It can be achieved if only they maintain :
Flexible task definition
Decentralized control
Lateral communication
Low formalization
WHAT TYPE OF STRUCTURE DID BEN & JERRY’S HAVE IN IT’S EARLY YEARS ? TODAY ? WHAT FACTORS BROUGHT
ABOUT THIS CHANGE ?
Ben & jerry’s early structure:-
Organic Structure:
Flexible task definition
Decentralized or diverse control
Lateral or horizontal communication
Low formalization ( less rules & regulations )
Ben & Jerry’s today’s structure :-
Mechanistic structure:
Low flexibility
Departmentalization
Rigid task allocation
Centralization control
One way ( vertical ) communication
High Formalization ( strict rules & regulations )
FACTORS INVOLVED IN CHANGE
Survival of the company
Existence of new competitors in the market
High demand for ice-creams which lead to high production.
Growth rate slowed to 40% in 1987-1988.
Company had to retain it’s position on the super market shelves.
IF YOU WERE A MANAGEMENT CONSULTANT, WHAT ADVICE WOULD
YOU GIVE BEN ?
Recommendations :
A joyful work environment where people could work hard & have fun at the same time.
Employees having role in decision making Org. must be more than a profit making
venture
Donation for social welfare
STEPS TO FULFILL THE VISION:
Decentralization ( horizontal communication )
Flexibility of doing work
Employee centric
Maximization of shareholder’s value
THANK YOU…