Question

Organizational structure and culture which affect employee behavior and success - Chapters 15 & 16 Organizational behavior 18th edition

Scenario (fictional)

An industry consulting firm has the following structure and culture:

All the employees at this consulting firm work full-time. All the full-time consultants report to various industry directors depending on the industry contract. The company employees work mostly from home with directors or consultants renting temporary office space with or without videoconferencing when needed for either client meetings or vendor meetings. The company is very successful and has an expanding client base.

The company CEO is extremely relaxed and extremely smart and expects everyone at the company to display a relaxed yet expert demeanor as well. There really are very few rules or expectations at the company as the CEO also believes in keeping processes very simple.

The previous president retired about six months ago, and the CEO, together with a human resources firm hired a new president. About two months ago, the company's employees(i.e. consultants) started receiving emails from the new president putting pressure on all of them to produce results in less time but pressuring them to charge clients higher sums without making any more money for themselves. In addition, the new president wants the staff to come into the office now three times a week for meetings. Three months ago the new president hired thirty new full-time consultants that seem more like salespersons than consultants to existing employees. A few of the long-time consultants have been emailing the CEO about these changes and suggesting they may go elsewhere. In the meantime, the Finance Director has detected several anomalies in the contract terms and financial results from some of the new consultants and one or two of the existing consultants.

Describe the organizational structure at this consulting firm and how it affects employee behavior.

Describe how the changes to the organization's culture might affect employee behavior.

Provide a recommendation for any adjustments you think need to be made as this organization based on the reading and explain why.

Answer 1

Organizational structure

The organizational structure of the company is decentralized organizational structure. Employees are empowered to make decisions by themselves. They are also allowed to work from home as consultants. The decentralized structure of the company provides work flexibility to the employees as well. A participative leadership style is applied by the organization. Employees are not pressurized by the president or CEO to achieve results. Thus, the employees feel very happy and motivated to work for the company. Employees take responsibility to complete work.

Changes in culture

With a new president, the old practices are disappeared as employees are asked to visit to office three times a week. New consultants that are hired are not having ethical approach as they are primarily focused to sell. The new president also pressurizes consultants to achieve results in less time. He also asks to charge more money from clients. These practices change the culture and work environment. Relaxed approach of employees towards work is lost and they feel to resign from posts. Employee feel de-motivated and demoralized as they do not serve needs of directors. This reveals that the new values of work culture are negatively affecting employees. Further, unethical practices by some of new consultants and existing consultants as found by the finance director in terms of signing contract terms as well as financial results. It reveals that once the work culture that is driven by ethical values such as integrity and professionalism is ruined and now due to pressure from president to achieve result, unethical practices are practiced by old and new employees.

Recommendation

CEO should instruct new president to adopt old values and practices that are earlier practiced. The new president should empower employees and should provide them time and flexibility in decision making. He must not pressurize employees to achieve results by compromising business ethics. Also, president should ensure that new hired consultants should adopt ethical values to provide consultation to the directors and must not compromise professionalism and integrity ethics. These considerations must be deliberated by the new presidents and for this; CEO should provide him knowledge of work culture and organizational structure that makes this company successful.