Excerpt coming from Term Daily news:
Dimitri’s Baked Goods Inc.
Structure
The organizational structure is smooth, with the business chart only having one vertical coating. This coating has Leakos at the top since the supervisor and all staff reporting to Leakos. The other layer can now be divided by simply function into four areas: production, sales, office and retail. This provides a single string of command. This one chain of command works well for the business enterprise because every employees are clear about who they will report to. This is also assisted by Leakos working with his personnel on an individual basis. This individual attention means employees have got a romantic relationship with their remarkable. This sole chain of command works well because of the tiny size of the company and because Leakos makes him self available to personnel. If the organization were bigger or would have been to expand, this kind of single coating of supervision would not be sufficient pertaining to adequate control to be managed. The period of control would be as well great and either management layers would have to be introduced or various other means of offering control presented, such as adding rules and procedures which could govern employee’s actions.
Work specialization is usually low. As the organization can be divided into functional areas, the tasks within these kinds of areas aren’t specialized. Because the case reviews, “the development roles in the bakery vary at distinct times. Staff are not required to specialize in one skill. inch This lack of specialization is beneficial because it provides employees with variety and prevents the effort from becoming tedious. It also means that the department works more together and gives personnel a range of skills. This variety and wide capability is also useful in enhancing flexibility, since in the event that one staff is missing another one may complete all their task. In this manner, the employees are one crew rather than since individuals.
Making decisions is also centralized with Leakos making every one of the decisions. The truth study declares that Leakos “feels centralization makes his business way more versatile because he can easily act immediately when complications arise. ” This is true considering that the decisions need not flow through a number of supervision levels for the decision being made. Yet , this centralization is only effective because of the small size of the organization. If the organization were bigger or were to expand, there might be a need to decentralize decision making and give even more decision making power to employees, rather than have all your decision making electrical power rest with all the manager.
Management
Leakos may be the only boss at Dimitri’s and so provides the leadership function. Leakos’s management style may differ with the circumstance and combines an interactive and a transactional way.
An active leader is usually one who is far more concerned with the environment than the tasks. An interactive leader encourages open communication and engagement and strives to make the environment one with no tension. Leakos develops close relationships along with his workers and attempts in order to meet their needs. Including such things as rendering vacation time and being adaptable with allowing for leave to a family event duties. Since the case analyze reports, “employees find themselves in an appropriate environment in which they can speak their own terminology and internet marketer with other folks with related background and passions. ” This process of creating an informal environment for employees is effective as the employees happen to be unskilled and possess little formal education. Most probably, job possibilities for these persons are limited, producing Dimitri’s an area they want to work. This leadership style probably would not be as suited to a various employee bottom including all those more highly trained. These individuals would be less likely to obtain the environment ideal and would choose a high-achieving environment instead of one based upon being comfy.
Leakos is usually a transactional leader, which is a leader who focuses on the needs of employees, explains roles and tasks and provides structure for workers. This is also suited to the unskilled workforce that need structure and to have tasks defined to them. Again, a greater skilled staff would have even more need to be independent and so this kind of leadership procedure would not end up being as powerful.
As the case study remarks, the time once Leakos must change his leadership design is during peak periods. Leakos, while sporting to be even more authoritative and even more focused on the duties rather than the people, still maintains a technique where he goodies his persons fairly and avoids producing the environment uncomfortable. This is attained by using reward power, where employees who work overtime are rewarded for their efforts. It is important that Leakos does not employ coercive power where abuse is used as a method of achieving results. Using coercive electric power would weaken the people-centered approach of Leakos and in addition prevent the community environment from being taken care of. By using incentive power Leakos achieves the task needs in the business while still maintaining the people area of the business.
Motivation
Motivation at Dimitri’s is provided by both extrinsic and innate rewards. Extrinsic rewards are definitely the rewards Leakos gives. For instance , the rate of pay, which is twice the legal lowest wage and the bonuses which can be given intended for working overtime. These benefits are offered to encourage certain behaviors.
Intrinsic motivation is achieved by the city environment that is certainly provided. This kind of environment is similar to the one the Macedonian workforce have inside their lives beyond work. Providing a comfortable working environment is a significant reward for the Macedonian workforce, with this comfy working environment one they would possess trouble locating elsewhere. This intrinsic praise matches the requirements of the labor force. Relating this to Maslow’s hierarchy of needs, it is usually seen that this environment offers employees a feeling of belongingness in addition to a sense of esteem. This could also be related to ERG theory, which has three levels of requires. The work environment provides for the existence demands by giving employees generous pay that allows those to live comfortably. Secondly, employees have their relatedness needs fulfilled by being section of the community. Another level is definitely growth needs. With the staff being unskilled, these progress needs are provided for simply by allowing individuals to become multi-skilled and just by providing people suitable employment. The unskilled staff do not need great requirements for growth. This is a single important good reason that the work environment motivates the current workforce yet would not stimulate a more standard workforce. Even more skilled or perhaps educated employees would need more possibilities for advancement than Leakos supplies. Once again, the key reason why the inspiration is effective is because it complies with the needs of the personnel.
Motivation is usually provided by work enlargement and job rotation. This task rotation and enlargement provides employees variance, while making sure the work can be not wearisome. This raises employee pleasure. Employee satisfaction then plays a role in the positive environment. The positive environment ensures a cooperative staff. This is a cause and effect relationship which results in a get out of hand, where fulfillment improves environmental surroundings and the environment increases employee satisfaction.
Conversation
Vertical conversation is informal and immediate, with Leakos communicating with staff on an individual basis. This kind of communication appears to be mainly downwards with Leakos speaking to staff. His great relationship with employees also suggests that in addition, it involves upward communication with Leakos listening to employees. It is additionally stated that Leakos handles all capabilities including working in production. This approach is similar to ‘management by roaming around, ‘ a technique that requires the director interacting directly with all personnel. It is these types of techniques which have been likely to have created the open up environment in which Leakos provides a good marriage with workers.
The simple community environment also suggests that communication between employees can be informal and open, with employees interacting as a team or a community instead of via any kind of specific programs.
Case Study: Actions Realty Incorporation.
Structure
The organizational framework is level, though the framework is not particularly obvious on who have reports to who. The accounting and clerical employees report directly to Marie. All the other employees are accountable to Harvey and Paul, although who is responsible to which director is unclear. This means the chain of command is not clear, with employees not aware of who they report to.
The organization, such as the management is likewise divided by functional place. The efficient areas are the administrative office, the property supervision division, the residential office and the business real estate division. Management responsibilities are not divided by practical area but rather by role. Harvey’s principal managerial part is to “make sure the business reaches or perhaps exceeds revenue goals. inches Paul handles hiring and Marie manages accounting and clerical workers. Various responsibilities including preparing, controlling and administration happen to be then performed by all three of the managers but not in a defined approach.
This makes a confusion more than who is accountable for what, particularly in regards to employees devoid of a clear watch of who also they should talk with about certain problems. This is a problem in which the organizational structure is not clearly defined. In cases like this, it is not the few levels of administration that is the difficulty, but rather the confusing mother nature of supervision.
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