A company manufacturing sewing machines, set-up in 1945 by the British promoters, follows formal organisation culture in totality. It is facing a lot of problems in delays in decision-making. As the result, it is not able to adapt to changing business environment.
The workforce is also not motivated since they can not vent their grievances except through formal channels, which involve red tapes. Employee turnover is high. Its market share is also declining due to changed circumstances and the business environment.
Give reasons in terms of benefits, it will derive from the changes suggested by you. In which sectors can the company diversify, keeping in mind the declining market for the product that the company is manufacturing?
A company manufacturing sewing machines, set-up in 1945 by the British promoters, follows formal organisation culture in totality. It is facing a lot of problems in delays in decision-making. As the result, it is not able to adapt to changing business environment.
The workforce is also not motivated since they can not vent their grievances except through formal channels, which involve red tapes. Employee turnover is high. Its market share is also declining due to changed circumstances and the business environment.
Give reasons in terms of benefits, it will derive from the changes suggested by you. In which sectors can the company diversify, keeping in mind the declining market for the product that the company is manufacturing?
Benefits the company will derive from these changes:
(i) Introduction of informal interaction between employees will help in fulfilling the social needs of the employees. It will enhance their job satisfaction and give them a sense of belongingness in the organisation.
(ii) Quick decision making will also take place since prescribed lines of communication will not follow ed and faster spread of information will give quick feedback.
(iii) Introduction of employee suggestion systems will result in increased motivation for those employees who make good suggestions. This also helps in the reduction of labour turnover. Introduction of decentralisation will also help in this.
(iv) All the above will help in fulfilling organisational objectives and eliminate the inadequacies of formal structure.
Benefits the company will derive from these changes:
(i) Introduction of informal interaction between employees will help in fulfilling the social needs of the employees. It will enhance their job satisfaction and give them a sense of belongingness in the organisation.
(ii) Quick decision making will also take place since prescribed lines of communication will not follow ed and faster spread of information will give quick feedback.
(iii) Introduction of employee suggestion systems will result in increased motivation for those employees who make good suggestions. This also helps in the reduction of labour turnover. Introduction of decentralisation will also help in this.
(iv) All the above will help in fulfilling organisational objectives and eliminate the inadequacies of formal structure.
