Organizational behavior case report (smo course)

Organizational Behavior Case Report
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Organizational Behavior Case Report
Question 13.1
With regard to organization structure, technology of an organization is the technique by which a company transforms its inputs into outputs, and is a key determinant of the structure of a company. When a technology becomes more routine, the structure of the organization becomes more mechanistic. This implies that if an organization produces the exact same thing again and again, it needs to concentrate on creating that thing as professionally as it can by having high levels of centralization, formalization and specialization (Fryer & Stewart, 2008).
Cisco has shifted from management through command and control, and now applies management through teamwork and collaboration. The company made a number of organizational changes, for instance, it adopted matrix structures whereby staff members report to several bosses. It also instituted formalized and highly developed cross-cultural teams at manifold levels in the company. The matrix structure of the company has enabled it to acclimatize more efficiently to changing conditions. The organizational structure at Cisco has an impact on the way staff members cooperate, coordinate and communicate with each other, the way power is distributed and how people consider their work environment. At Cisco, the organization structure is complex consisting of 65,000 workers producing diverse products. The company has a decentralized structure and the top managers do not make every decision in the organization (Fryer & Stewart, 2008). With the technology available at Cisco, it is not possible for other companies to emulate its organization structure. This is because the company has established high levels of work specialization, formalization and centralization whereby each employee has his/her defined role to play and does her/his best in that area of specialization. Establishing such a structure is often a complex undertaking and may require a complete overhaul of the company’s organizational structure, and most companies are not ready to do this.
Question 13.2
The company’s organization structure allows its executives and workers to gain flexibility, speed and skill, hence giving it an advantage with regard to competing effectively with its competitors. The specific advantages of its organizational structure include the following: Changes to the organizational structure allowing its employees to report to more than one boss. This restructuring of the chain of command has been important in attaining order, control and predictable performance. Cisco has very formalized and developed cross-functional teams at various levels. The company has also adopted decentralization whereby the authority to make decisions has been pushed down to staff members at lower levels who feel empowered to make decisions on their own (Fryer & Stewart, 2008). The structural change...