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Evolution of Formal Organizations

In organizational development, evolution is inevitable. This has been witnessed by the transparent and rapid growth that has accelerated changes over the past few years. These noted changes have mostly been in the form of new discoveries which have ranged from the very simple to some being highly technical and sophisticated. This has also been coupled by the execution of new theories and techniques to deal with emerging problems and solutions. Notably, there has been remarkable achievements apparent amongst many formal organizations; despite that some of the organizations have been slow at adopting these changes. The combination of these progressive improvements has been credited for the significant changes mentioned earlier which intractably has increased the pace, as well as the complexity of human life.

In the turn of the century, most organizations had adopted the pyramid shaped ranking within organizations, where only a few people were in charge of the others.  This kind of a structure sought to separate those who are in a higher rank with the rest who are at the bottom of the command chain.  Inherently, there was no equality within the organizations under the practice. Those who were thus considered as being below or at the bottom of the chain did anything and everything that was asked of them by those who were in the higher ranks of power.

The above scenario led to inefficiency within the organizations. Under this system, the managers had little to do and by the early 1900s, the organizations suffered from inefficiency in the quality or quantity of work as well as their job performances.  The managers were supposed to look closely at each worker and their job performance and designate specific work targets. They would then later seek means to increase the workers’ output. In the end, they would give incentives to the workers who performed well. Incentives were given to those workers who did their job well; this was the system referred to as Scientific Management.

The status quo remained and by the mid-century, the organizations were still not achieving the full potential of their workers. This was because they were not making any major improvements in the hiring process. The system was characterized by most of the high ranking managers being white men. In this setup, the women and the minorities were not allowed to ever move up the corporate ladder.  Ultimately, these so called “closed organizations” formed unproductive workers. This was because these organizations’ system could not allow their workers to advance within the organization.  The organizations,  however, came to realize that there was the need to become more open and give room for advancement if they were to ever become more profitable.

From the later days to what is today, organizations became more flexible with their workers. Notably, most of them are open to allow advancement for their workers within the organization.  The organizations have replaced let go of the top-down pyramid system and instead work together as a team. In the new system, the senior managers look over their projects.  Further, instead of giving orders to be followed, the senior managers seek for creativity and ideas amongst the team members and if they are appropriate, they implement them.  Today’s organizations thus seek to support their employees to become more creative. They, thus, give each employee more responsibilities, there is also less supervision though managers expect the same goals, but in the stead they let their employees to achieve such goals by using their own talents.  Unlike the practice of the previous centuries, in this system, the employees are also encouraged to work as teams; interactively, it is with no doubt that world is always changing and in today’s business organizations, adaptation and creativity are vital for success.

After a close analysis of the evolutions that have taken place over the centuries for the organizations to become more profitable, it is inherent that Micah’s company needs to adopt some changes and to become also more flexible with its employees.  The company in the first instance needs to leave the top-down model of hierarchy. The company’s production and efficiency has the possibility of being boosted if performers are divided into small groups mandated with similar goals. The company should then seek to create some smaller levels in their chain of command. This would reduce staff resent to authority as well as develop opportunities of growth within the company.  Having tackled the two issues, the company should then embark on developing the policies and regulations. The employees should then bear the responsibility to follow these norms.  Then the company should develop a membership criterion where the managers and/or head of departments should only lead their groups and encourage them rather than only give orders.

To enhance the workplace relationship and increase the employees’ productivity, the employees need to get employees involved.  A noted example is that company BBQ’s, annual parties and recognition tend to encourage its employees to give their best to the company. Through these gatherings the employees get a chance to interact out of their working environment. In the process, they are able to know the employees behind the success of the company.  This is the essence of the fifth character, relationship is an integral part for the success of any company.  All the employees at Micah’s company need to get acquainted to one another, through this process; all the managers should get to know their employees.  Communication is the sixth characteristic; usually in a formal bureaucratic organization, the top employees use memos and letters that are un-thoughtful as a means of communication.  To improve communication within the company, face to face meetings so as to get employees feedback is important. It also allows the employees to freely discuss issues with their managers that may arise during the work. Focus is the last characteristic; Micah’s company need to move away from the usually task oriented attitude. If the company was to employ more people oriented attitudes and show that they have more care for their employees, then there will be more efficiency between the workers, ultimately increasing the company’s productivity and profitability.

An excellent example as to how a formal organization has made attempts to change is America’s largest automotive parts maker, Delphi. The weirdest bit of it was that the company took a step backwards rather than a step forward.  They made attempts to cut their employees’ wages in attempts to get out of their woes deriving this from their labor contract, but did not make any headway. The cuts were to effect that an average employee earning $27.00 per hour was cut down to $10.00 per hour.  The end result was resentment from the employees.  The repetition of the same in future is, however, not likely; notably, the bankruptcy courts have been trying to recover the employee’s wages.

Incentives to work harder and achieve better results can be realized within the organization by matching its CEO’s pay to their performance in the company (Falato, et al., 2011).  Performance payment promotes employee motivation, retention and is also the best tool to align the CEO with various constituencies (Tirozzi, et al., 2010).   There have also been attempts to not only award the CEO’s on performance, but also the employees, thus promoting accountability and promoting a sense of sharing in the company’s success or failure.

The last trend to take effect in the future of organizations means including those in upper management of the company’s to be creative and not just the employees of the company.  Notably, a supervisor should make attempts to develop creative visions, should be able to analyze as to whether their ideas are ideal, be able to execute their ideas well, to convince others of their values and to make sure that their ideas benefit their companies (Sternberg, 2006).

Upon the implementation of the above changes, Micah’s organization has a possibility of becoming more productive and profitable.  The company needs to reduce the current chain of command, create small working groups to improve and support creativity and ultimately develop inside competition.  In the end, the employees will feel needed and appreciated.  Communication is also an integral component of success.  Communication should be done at a level of equal partners and undertones of employees feeling, as if they are underneath and belong to underappreciated bottom of the pyramid worker, should be eradicated. Ultimately they will possess a better sense of self-worth, leading to better productivity.

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