Organizational Problem Analysis
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Generally, the structure in traditional organizations is top-heavy, hierarchical, and bureaucratic (Rigg, 1992, p. 13). Michael Rigg, an industrial engineer with Fluor Daniel who addresses issues of organizational structure, observes that studies indicate these traditional structures tend to prevail in stable environments where the production technology requires a large number of line workers. However, although it may be appropriate in such environments, it leads to stratification because these structures reduce individual control and negatively affect worker motivation. People in higher-level positions may perceive themselves to be "more important" to the organization than those at lower levels and prevent effective information sharing, cooperation, and collaboration (LeBlanc & McInerney, 1994, p. 74). These overly vertical structures cause competition, as employees race to climb to the top of the hierarchy (LeBlanc & McInerney, 1994, p. 74). Rigg suggests instead an organization based on teamwork and an analysis of the case of the black-and-white film division of Rochester, New York-based Eastman Kodak offers support for his suggestion. At the end of the 1980s, the black-and-white film division was largely regarded by employees as the worst place in the company to work (Team Zebra, 1994, p. 57). Although the division was responsible for generating 7,000 products from 250 product lines it was actually losing money
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by a top-heavy, hierarchical structure that did not credit the employees with the basic ability to do their jobs. Michael Riggs argues that many organizations are flattening their structures to empower their workers and increase employee motivation and performance (1992, p. 12).
Logic of the Workgroup Approach
The results of the black-and-white division's turnaround are significant. Just as significant, however, was how the department accomplished the turnaround. Stephen J. Frangos, manager of Kodak's black-and-white division at the time of reorganization, credited an active Human Resources strategy as vital to the turnaround (Team Zebra, 1994, p. 57). Generally, increasing the span of worker control means that people must become self-directed because managers will not have time to micro-manage.
However, changing to an empowered, team-based enterprise required transforming the organization's culture as well as structure and the employees' mindset. Frangos' strategy included relying on the company's inner human resources instead of investing in new equipment and technical programs or cutting costs and dropping product lines (Team Zebra, 1994, p. 57). He observed that the strategy also required encouraging risk-taking, us
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Approximate Word count = 1441
Approximate Pages = 6 (250 words per page)
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