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Organization Theory & Design INFORMATION SYSTEM AT MRS. FIELDS’ COOKIES SUMMARY Mrs. Fields' Cookies has nearly five hundred stores ip thirty-seven states. In contrast to many food retailers, Mrs. Fields' stores are not franchised operations. Rather, all the stores are owned by Debbi and Randy Fields, and run out of their headquarters in Park City, Utah, The secret to managing this widely dispersed operation is a computer system that is "state of the art." Mrs. Fields' specialty is fresh and warm chocolate chip cookies. But most of the company's nearly 4500 store employees are young and inexperienced, and know little about the cookie business. So Randy Fields has installed a computer-based information system to do all these things for the store employees. Each store manager begins his or her day by calling up the Day Planner program* on the store computer. As the day progresses, sales data are entered in the computer hourly. The program can then revise the hourly projections and offer suggestions on how to improve sales. Of course, the individual store computers are linked to Park City, so Randy 1

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Page 1: Describe Mrs

Organization Theory & Design

INFORMATION SYSTEM AT MRS. FIELDS’ COOKIES

SUMMARY

Mrs. Fields' Cookies has nearly five hundred stores ip thirty-seven states. In contrast to

many food retailers, Mrs. Fields' stores are not franchised operations. Rather, all the

stores are owned by Debbi and Randy Fields, and run out of their headquarters in Park

City, Utah, The secret to managing this widely dispersed operation is a computer system

that is "state of the art."

Mrs. Fields' specialty is fresh and warm chocolate chip cookies. But most of the

company's nearly 4500 store employees are young and inexperienced, and know little

about the cookie business. So Randy Fields has installed a computer-based information

system to do all these things for the store employees.

Each store manager begins his or her day by calling up the Day Planner program* on the

store computer. As the day progresses, sales data are entered in the computer hourly. The

program can then revise the hourly projections and offer suggestions on how to improve

sales. Of course, the individual store computers are linked to Park City, so Randy has almost

instant access to how things are going at every store.

This information system also does a number of other functions for store managers.

Based on sales projections, it schedules hourly crew needs for two weeks in advance. The

system even has a repair program that helps managers to pinpoint equipment problems.

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QUESTIONS:

1. Describe Mrs. Fields’ Cookie in terms of its complexity, formalization and centralization.

Answer

Complexity:

High complexity, the company is high on spatial differentiation; that is the company is based on five hundred stores which are dispersed over thirty seven different states and have head quarter in Park City, Utah.

This distance between the stores and head quarters can cause communication distortion, which may result in high complexity.

But in this case it has been well maintained through a computer system which helps owners of the company to keep records on activities in all stores.

Formalization:

Formalization is high; managers in all the stores have minimum to no discretion in handling the matters of store, the computer system decide to conduct activities in all stores.

The computer forecast sales of the day, selling techniques, staff requirement, and employee management.

Centralization:

Centralization is high; although the size of company is increase but the computer system has enable the owners to ensure tight control in all the stores.

Managers of stores have to follow the already defined conditions. All the decisions are taken by the system which has been programmed in advance.

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2. Do management information systems, such as the one at Mrs. Fields, alter the conclusion that large size leads to increased vertical differentiation, formation and decentralization? Discuss.

Answer

In general, large size causes increase in hierarchical levels, which increase formalization and decentralization.

But in this case the management information system has been designed in a way that’s allow the owner to maintain tight centralized control while the management hierarchy of the company is almost flat to store managers, because decisions are taken by the computer, there was no vertical differentiation.

Formalization increase with the size, the computer sets rules, procedures and policies and also define activities that manager have to perform.

3. Are computerized information system part if an organization’s technology? Explain

Answer

Technology refers to the information, equipment, techniques, and processes required to transform inputs into outputs in the organization, that is how inputs are transformed into outputs

The system may be considered as technology in a way that it is use to supports decision about the daily activities and future tricks use in stores which are eventually use to transform input into output . It does not transform the actual selling product into output but it helps in making decisions about it.

4. “This system leads to better store-level decisions”. Do u agree or disagree?

Answer

Agree; Mrs. Fields’ specialty is fresh and warm chocolate chip cookies. But most of the company’s nearly 4500 store employees are young and inexperience and know little about cookie business, in such case this system can lead to better store decisions and efficiency, as it define all the activities from cookie receipt to sales forecast and technique which could be very helpful for the unskilled workers they have.

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5. What negative store-level repercussion might result from this system? Answer

Mechanical work, employees have to repeat the routine activities suggested by computer.

The work may not motivate employees, as they have no discretion in any of action and have to follow what computer suggests

Since it’s a computer system, wrong input from employees can lead to wrong future forecast and procedures.

The system may not be able to deal with novel and unexpected problems which have not been programmed in it and required creative solution.

It case the system crash, it can stop the entire proceedings of company.

6. Explain the potential impact of computerized information systems from the power control perspective.

Answer

Power control perspective means that the upper level of hierarchy wanted to maintain their control over the organization and oppose decentralization which may threaten their power.

In this case, the power is mainly maintained by the computer system, which takes decision about the activities, however, these computer system are design and programmed by those in top management (owners), so employee may not blame the top management directly for the unwanted enforcement of decisions. But the authority is eventually retained by those on top positions.

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MANAGERIAL IMPLICATIONS

First thing that could be learn from this case that computer system could be an effective way to manage things specially when the organization is dispersed geographically, because it allow easy access to activities in all parts, but it should not be consider the only way to contact employees.

It has Mechanical work; employees have to repeat the routine activities suggested by computer. It may be good for employees who do not have much experience about the work but it may also make employees obsessed with technology and may not allow them to make decision in situation where computer is not programmed.

The work may not motivate employees, as they have no discretion in any of action and have to follow what computer suggests, there must be some discretion on employees side the tight control from management may de motivate employees and can result in bad performance and high turnover. Moreover, complete reliance on computer can be unbeneficial come times because if employees enter wrong input it may cause make computer suggest wrong action, so management train its employees in a way that they could understand problems as they arise when computer do not provide accurate information.

While using such systems management must also keep in mind the problem which may arise in situation for which computer is not programmed or if the system crashes , so complete dependence on computer for management can not be profitable all the time,

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SEARS TRIES TO STOP ITS MARKET-SHARE SLIDE

SUMMARY :

This case is on Sears which was one of the premier retailer in the US, but in the 1940’s sears management saw a growth opportunity in the suburb and they without waiting open stores because of heavy parking there provided to the customers, this move increased their sales and profit. The company ran into problems after several decades in 1980, because it had lost its number one position in retailing to Kmart with Wal-Mart which was in third position quickly covering the gap.

The main reason was due to the operating expenses and distribution cost which were touching the sky in comparison to Kmart and Wal-Mart. Due to this they can’t offer competitive prices to their customers. Not only there sales were affected but also their market share which decrease from 18% to 13%. Along with this a high number of outlet and people in them look towards the top management because they didn’t have any authority in their hand; not only this but along with this the coordination and control problem was so high that one of their store in New Jersey was still showing old jewelry and clothes on dummies. Due to this Sear in late 1988 announce to sell their sear tower which is located in Chicago, Illinois. Another problem was that their consumer started to project where Sear is in the retail hierarchy. A step taken by Sears to improve their reputation was by calling themselves as a fashion store but this didn’t help them in any way.

It took another step in 1989, which was of everyday low pricing, through this they thought they can reduce their administrative cost and will be able to compete directly with the discounters. The huge market share enjoyed by sear has led its employees becoming incompetent, inefficient and indifferent to the changing needs of their customers. Sears senior executive has been trying to change their attitude, though when questioned they deny facing any problem.

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QUESTIONS:

1. Describe how sears original strategy influenced its structure.

Answer

Strategy: Sears original strategy was defender, it built its reputation on a strategy as

offering high-quality, moderate priced merchandise, merchandise sold under its own private label, offer hundred of different items each week on sale.

Seek stability by producing only a limited set of products directed at narrow segment of total potential mark, no scanning of new environment.

Any thing new was seen as threatening and therefore, resisted. Strives aggressively to prevent competitors entering their turf, company

manager believe that they will be able to become low-cost operator by dropping hundreds of styles and models and by ending the huge promotional expenses associated with planning, buying, storing, distributing and advertising the on going sales.

Structure:

This strategy enforce high centralized decision making. Elaborate formal hierarchy for communication and work increase differentiation

and coordination problem.

2. Do you think its exchange in strategy in 1989 should have lead to changes in

structure?

Answer

In 1989, Sears proposed to pursue a strategy of “every day low pricing represented “Analyzer Strategy”.

Prices of all the goods were sharply and permanently cut and deep discount promotions were eliminated, management try to make it low cost operator by dropping hundreds of styles and models and by ending the huge promotional expense associated with planning, buying, storing, distributing and advertising the on going sale goods

Moreover, it used other name brands along with its own private label, seek both flexibility and stability.

But instead, they adopted reactor strategy, the managers were to lazy to adopt changes and miles away from the customer needs

Top management failed to make the organization strategy clear Management does not have fully shaped organization’s structure to fit the

chosen strategy

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Management have maintained its current strategy –structure relationship despite overwhelming changes in environmental conditions

3. How has size influenced sears structure?

Answer

As size increases, it increases complexity in terms of horizontal and vertical differentiation, which increases communication distortion.

It had coordination and control problem that means formalization was not efficiently managed to reduce confusion of employees as size increases.

Centralization remained high, though the size was increasing which require decentralization, and block the flexibility of employees working.

4. K-mart is almost the same size as Sears but is more effective. What structural factors do you think might contribute to k-mart being more effective than Sears

Answer

K-mart manages to maintain low cost while providing superior selection of goods.

K-mark might be using focus strategy, which may involve more decentralized decision making and flexibility and high customer satisfaction unlike Sears

Values and rewards flexibility and customer intimacy Measures cost of providing service and maintaining customer loyalty Pushes empowerment to employees with customer contact

5. Is sears mature or declining firm?

Answer:

It is at the end of its maturity period and heading towards declining It is losing its market share, shifts out of alignment form environment Declining cause of atrophy, organization took success for granted and becomes

attached to practices and structure that worked in the past and fails to adapt to changes in the environment

It tried many different strategies but could not been able to deal with problems, it may be at crisis stage

The social fabric of organization is eroding; dramatic action such as replacing top administrators, revolutionary changes in the structure, strategy, and culture is required.

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6. What problems does Sears face that Wal-mart and k-mark don’t?

Answer

The coordination and control problem among departments Highly centralized structure causing difficulty in meeting the needs of customers

to their satisfaction. High operating costs Switching to many strategies and failed to maintain structure according to strategy Arrogant staff Managers were slow to respond to change Any thing new seen as threatening Heading towards declining, cause of atrophy.

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FORD VERSUS THE GENERAL

SUMMARY:

In the U.S. automobile industry, Ford Motor Co. and General Motors have been giants for

more than sixty years. To understand the Ford structure, you have to go back to its

founder, Henry Ford. Division managers were relatively autonomous but headquarters

controlled operations through an extensive reporting system and through its power to

allocate financial resources. The system worked at culling out poorly reasoned or risky

decision options.

It controlled 48 percent of the U.S. market and was generating record-breaking profits.

Ford, on the other hand, had less than a 16 percent market share. Ford was also losing

money-—a whopping $3.26 billion between 1980 and 1982 alone. GM's market share had

fallen to 35 percent, whereas Ford saw its share increase to 22 percent.

Ford's problems in 1980 were many. Its cars were nondescript. This meant each Ford car

had to shoulder a larger percentage of fixed costs than did GM products and resulted in

significantly greater per-car profits for GM. Ford executives realized they had to take

some drastic actions if the company was to survive. What they did was introduce a broad-

based cost-cutting effort, initiate a massive program to change Ford's culture, put renewed

emphasis on listening to and working with the people who made Ford products, and

change the corporate strategy to become the styling leader among the U.S. "Big Three."

Ford became more efficient by cutting layers of management, getting employees more

involved in the production process, and cutting defects by focusing people's attention on

improving product quality. Management training particularly emphasized the need to

replace the company's autocratic management style with one of participation.

Encouraging its design staff to emulate the successes of European stylists, impressively

restyled cars began coming off the assembly line in late 1985. General Motors entered the

1980s in a much stronger position than Ford. Like Ford, GM had high costs and a bloated

organization. GM's management assumed that gas prices would rise and fuel shortages

would prevail throughout the 1980s, so smaller cars would be highly sought. GM bought and

installed robots, lasers, and computers designed to step up efficiency, boost quality, and

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make product and engineering changes faster than the old system could. Rather than focus

on product styling, it would generate huge economies of scale by building its cars out of

common parts. High technology and high volume would enable GM to make cars more

cheaply than anyone.

Fuel prices dropped and, with it, the demand for small cars. Consumers sought large cars,

which were being produced in large quantities by Ford and Chrysler. GM spent enough

money on capital investment to buy several of its major Japanese competitors, yet the

company lost market share. Ford and Chrysler, using competitive bidding, could buy parts

at a significantly cheaper price than GM. The net result was that between 1981 and 1987,

GM's breakeven point rose 30 percent.

GM executives, particularly in the middle-management ranks, resisted any changes.

Complacency ruled. Oldsmobile Calais and a $26,000 Cadillac Seville—and consumers

responded by snubbing GM products. No longer were they pursuing the strategy of

expanding market share. Rather, like Ford, they were concentrating on producing more

stylish and differentiated cars, and beginning to restructure the company so as to be able to

produce fewer cars more efficiently. In the last half of 1988, GM's profits increased smartly

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QUESTION

1. Using competing values, assess why ford is widely considered more effective than GM. How could GM have uses the competing value approach in early 1980s to recognize that it had problems?

Answer:

Competing values

According to competing value Ford use the value of Human relation model because they merge the value of internal focus and flexible structure.

They put renewed emphasis on listening to and working with the people, who made the ford product

Became efficient by cutting layers of management, getting employees more involved in production process.

Employees are given opportunities for autonomy and development Management worked towards the sub goal of cohesion, morale and training

opportunity.

The criteria you value and use in assessing organization effectiveness depend on who you are and the interest you represent. There is no best criterion for evaluating an organization’s effectiveness.

In the early 1980

At entrepreneurial stage GM used open system which was appropriate at infancy. But as they grew larger they focus on generating huge economies of scale rather

than focus on product style, at this stage human relation model should be use but the strategy was not chosen effectively

At formalization stage then they should more emphasis on rational or internal process because they are heading towards maturity, in this stage evaluation of company is done in terms of its stability and productivity.

GM should instead of concentrating on expanding market share they should have concentrate on producing cars effectively, by using labor effectively

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2. Contrast Ford and GM’s strategies. How has each affected their organization structure?

Answer:

Ford:

Until early 1980’s ford was using the defender and low cost leadership strategy, this includes.

A tight control and high on formalization, centralization, mass production was done.

The structure was more like simple structure in which strategic apex have authority

General Motors:

GM were using the analyzer, that is stable plus flexibility The structure was more like divisional structure They have division of department therefore, the manager has autonomy but

supervision is done by larger department in order to maintain stable and control environment of organization.

3. How did GM technology affect its structure?

Answer:

The effectiveness of GM is related to fit between technology and its structure. GM has used high technology with mass production, this was done to make cars

at cheaper rate and to gain market share, rather than focus on product style it would generate large economies of scale

GM had organic structure but the company needed mechanistic structure because non routine technology can not work effectively with mass production

The mismatch between technology used and structure has made GM fallen down its expectations.

4. Assess both companies effectiveness in terms of their “environment structure” fit?

Answer:

Ford:

Ford realized uncertainty in environment in terms of change in customer trends, to deal with this.

It changed its structure to organic structure from mechanistic structure It developed more team participation and decentralization decision making.

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General motors:

GM had difference between structure and environment. Because Middle mangers resist changes. It was operating in a stable environment with mass production but still following

the divisional structure, as organic structure.

5. Are there any structural factors that can help to explain why Ford made more money than GM in late 1980’s?

Answer:

Yes, Ford realized changing consumer trends for which it take into consideration some

major changes in the structure and strategy of the firm It changed its structure from mechanistic to organic structure Which emphasis on decentralized decision making Work based on participation and team work Efficient scanning of environment, to determine changing trends and needs of

customers This increased participation of employees and their commitment towards the firm

and creativity.

6. Contrast these two organization approaches to managing change?

Answer:

Ford: Ford has successfully managed change by adopting strategies to deal with

resistance to change, this include It developed organic structure which allowed employees to participate Participation and support, increased employees commitment Participation also increased the quality of the decision taken as more input is

collected to analyze a situation.

General motors:

GM could not cope up with the changing environment, Changes were resisted but employees were given autonomy, mismatch in strategy

and structure Top management used to announce any changes.

7. Contrast GM and Ford culture in 1978 and 1988. What might GM have done in 1980 to reshape its culture and make it better fit its environment?

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Answer:

Ford culture:

Ford change it culture from autocratic to participative to deal with changing in environment in 1980’s

It renewed emphasis on listening to and working with people who make ford products

Changed corporate strategy to become style leader Participation was done by every one, managers and non-managers, to inceres

level of commitment, participation and creativity.

GM culture:

It had traditional bound culture and internal system that was slow in reacting to innovation. Its managers were cocky and unable to be self-critical.

It had high technology, but rather than focus on product styling, it would generate huge economies of scale by building its cars out of common parts

Culture change

It should have follow its strategy of organic structure by allowing employees to participate and which could increase the quality of input and increase commitment and creativity

It should have emphasis team work. Instead of producing mass product they must have consider style and requirement

of their customers to deal with changing environment Innovative employees should be rewarded and promoted.

THE MERCK MAGIC

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SUMMARY

This case is on Merck which is the king of the king of the pharmaceutical industry and this is because of long term focus strong research department and a flexible organization which gives its employees an incredible amount of freedom. They still believe in old way of spending and waiting for these spending. Its because they know that once their product hit the market it immediately become a success. The company’s long term focus on their product has benefited Merck in every way it can in comparison to its competitor. Merck is also efficient because of the freedom which they have given to the scientist. The company find the best people and by given them freedom they motivate them to choose their own way to complete a project. Merck follows an informal structure and a research is divided into 12 different areas and each area has a leader which is there to motivate them and make them work on his project. And this is the toughest work for the leader because he requires their skills to complete this project.

QUESTIONS

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1. Do Wall Street analysts and Merck’s management evaluate Merck’s effectiveness similarly?

Answer

The two define the effectiveness in different way as one

Wall Street:

Wall street define it as goal approach, that they are achieved their, this is profit they are getting in the end

The major reason that Merck was rated so highly is that it’s in the highly profitable pharmaceutical industry

It generate considerably higher rate of equity than its industry rivals And its incredible growth potential made possible by number of new products

Merck’s management:

Merck management define it effectiveness internal organizational health and efficiency, that is internal process approach

It owes its success largely to Merck management’s long-term focus Strong commitment to research and development Creation of a highly organized, informal and project based structure and allow

its researcher an incredible amount of freedom to control their destiny.

2. Describe Merck’s organization structure

Answer

Merck is following adhocracy in its structure.

High horizontal differentiation

The structure define social differentiation They hire professionals, they seek for the best talent available This increases individual professionalism, hence, this increase horizontal

differentiation.

Low vertical differentiation

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Many levels of administrators would restrict organizations ability to adopt The structure of Merck was designed to support and reward extensive risk-taking Need for supervision is less because professionals have internalized the

behavior management wants

Low formalization

There are few rules and regulations, professionals are allowed to work freely, and to take risk

Since there is flexibility in structure, therefore, formalization is low and scientist have autonomy to take risk and work to try new things

Decentralization

The amount of collaboration required when the team leader is convincing each one of the participants on a venture that is going to give return after several, this his shows a decentralized structure

Power flows to everyone irrespective of positions. Individuals are free to decide on an approach and carry it through and

underground projects are encouraged.

High flexibility and responsiveness

The structure of Merck was designed to support and reward extensive risk-taking and a project-based structure that encouraged Research and development. It was flexible and organic.

The risk taking has been at its maximum level, as developers have to utilize their own resources.

3. What key factors do you think have acted to create this structure?

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Answer

Merck prides itself in the extraordinary freedom it provides its scientists and the informal, project based structure it uses to develop new product, its long-term focus and strong commitment define its structure to be based on innovation and creativity of it employees (research and development). The strategy they must be using would be similar to:

Porter’s Competitive strategy: Differentiation

Firm seeks to be unique in the industry in ways that are widely valued by the buyers

May emphasize high quality, extraordinary services, innovative design, technological capability and positive brand image, Unlike other drug companies, Merck spends its lion share not on defending existing products but by creating future products.

Acts in an organic, with strong coordination Rewards employee innovation Creative flair, thinks “ out of the box”

4. Describe Merck’s culture. what does Merck’s management do to sustain this culture

Answer

Culture:

The structure that Merck following define innovative culture, which emphasis on organic structure

its employees has strong commitment and a long term focus to perform their work the structure is highly flexible which allow R&D department to take risks creativity and rick taking is rewarded the in informal structure give autonomy to every one

Merck can sustain its existing culture:

They should maintain the selection processes the way it is being done, in which they select the best talent available to get the best outcome

Maintain the same flexibility and risk taking approach, so that scientist can experiment new ideas.

Allowing its R&D to be innovative and creative Providing autonomy to make them grow.

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KEEPING THINGS ORGANIZED AT BEN & JERRY’S

SUMMARY

This case is on an ice cream parlor which is Ben & Jerry’s and it was started by Ben and Jerry in 1978 at a small gas station in Burlington Vermont. The initial goal of the company was to sell ice cream just for fun, but just within no time they became so much popular that now they were a $45 million dollars company. The main reason for this was its unique culture which they followed and which was not moving on alone but to move with everyone that’s in the company and even those which are affected by them, but as the competition arose, it put stop to their rise. The company knew that in order to survive they have to find new targets so that it can attract new customers. In order to achieve this they wanted to establish a factory and for this they had made their friend and neighbor stockholders of the company. He knew that in order to keep shareholders happy they have to grow, but it wasn’t that easy because the culture and processes of Ben and Jerry’s have changed. Everything which was once on organic basis is now turned into a mechanistic culture. This created dissatisfaction among the employees due to which the department started to copy the work of others. The situation is getting even worse because all the reasons which worked in their favor at the start are now creating a barrier for them to grow.

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Questions:

1. Has Ben and jerry’s been forced to grow? Explain

Answer

Ben and jerry’s were forced to grow because

The market for super premium ice cream was maturing in the mid 1980’s and there was new host of new competitor.

The company had to grow to retain its position on super market shelves, there market share was declining.

Another factor was the decision in 1985, to take the company public and sell stock in order to build a factory, so, now they have stockholders to worry about

2. This case demonstrates that organizations control people as much as or people

control organizations? Do you agree or disagree with this statement? Discuss.

Answer

3. Is Ben & Jerry’s original culture now hindering the organization’s effectiveness?

Answer

Original culture: its original culture is unique as:

It emphasis on fun, charity and good will towards fellow workers up and down the line.

The company was genuinely sensitive to employees need They began as more than just a profit making venture, if wanted to act

force for social change They would rely on all employees to participate in decision making.

This culture was good with internal organization but as organization grow larger the organization needed to be more rational and look towards the profit to sustain. They wanted to continue the social aspect of organization, on the other hand they wanted to grow for which more profit oriented and formal attitude was required and original culture of organization hindering, which may not allow the formal control to takeover, for example: the 5 to 1 salary ration was creating problem which made salary not competitive to market. Moreover meeting did not remain effective; employees were no longer privy to every decision management made. This mixed strategy was huge block in their way to growth

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4. Can Ben and jerry’s maintain their original culture and, at the same time continue to grow?

Answer

No. they can not grow with their original culture, the original culture is more towards the social well being and for growth they need to make profit for which they required system which is more formalized. Too much sensitivity towards employees may not allow them to work rationally on making profits.

5. What type of structure Ben and Jerrys have in its early years? Today? What factors brought about this change

Answer

Structure in early years

They had organic structure. Informal communication and decentralized decision making Formalization was low Internal organization was free-flowing and adaptive.

Structure today

Than it transform in much mechanistic structure Meetings were no longer no way communication but, rather one-way

affairs with management telling employees what was happening, define clear hierarchy of authority, emerging centralized decision making.

Structure became more impersonal Employees were no longer privy of every decision management made

Causes of change

Causes for changes were Increase in size, which cause increase in complexity Demands for more mechanistic structure, and formalization to grow and

retain its market share

6. If you were a management consultant, what advice would u give Ben Cohen?

THE UNITED STATES EMPLOYMENT SERVICE

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SUMMARY

The service is jointly administered by the federal government and the states. operation of

the local Job Service offices within its jurisdiction. To get an idea of its impact, during

fiscal 1980, approximately 2600 local Job Service offices filled six million job openings.

The USES would like to match workers and jobs by computer. In the mid-1970s, the USES

developed what it called the Job Service Matching System. It was a nationwide system

that included locating computer-based batch processing of matches between applicants

and jobs in all large

metropolitan areas and real-time processing in selected large metropolitan areas. The

system would cost in excess of $250 million.

The consultants identified 28 USES offices in which to conduct their evaluation. Using the

eight factors from the competing values approach to organizational effectiveness, the

consultants measured participants' perceptions of their offices' performance. Each of the 28

local Job Service offices was assigned composite performance scale scores on the eight

effectiveness criteria. These were obtained from questionnaires administered to the entire

staff of each local office investigated. Figure 1 depicts a composite performance profile of

the two sets of Job Service offices—those with high use and those with low use.

QUESTIONS

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1. How are the high-use offices performing? What are their problems?

Answer

Offices performance: Primary emphasis is at well being of employees and at maintaining its position to

achieve goals effectively, they are internally efficient Moderate at maintaining moral and cohesion of human recourse.

Problem:

Low at flexibility

2. How are the low- Use offices performing? What are their problems?

Answer

Office performance:

They are moderately good at achieving flexibility Interaction with the environment And achieving the overall goals.

Problem

Low at internal efficiency

3. What can u say in terms of comparing the effectiveness of these two sets of office?

Answer

The difference between the two office is mainly based on internal efficiency the low Use office are low at internal efficiency that is they are poor at performing internal operation

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