Case #1 – Ben and Jerry’s David Allard Organizational Behavior October 7, 2012 This essay focuses on the case of Ben and Jerry’s – Keeping the Mission(s) alive and its relationship to Bolman and Deal’s four frames model for leadership. “Formal roles and responsibilities minimize distracting personal static and maximize people’s performance on the job” (B&D 47). Ben and Jerry’s had a strong structure in terms of employee roles, marketing, production, and product placement frameworks and the company brought in revenues from every profit avenue in the super premium ice-cream industry, but the structure was not built to support growth. The main criteria of organizations structure states that organizations exist to achieve …show more content…
Competitive pay ensured that physiological needs were met for all (Theroux, 8) (B&D 124). The companies 5-to1- compensation rule aligned with a concept of “sharing the wealth” (B&D 146). Ben and Jerry’s prevailed in supporting their employee’s needs and morale but failed in investing in human capital for organizational success. “As products, markets, and organizations become more complex, the value of people’s specialized knowledge and skills increases” (B&D 148). The 5-to-1 compensation rule prohibited the company from paying competitive wages to the most qualified employees changing this rule could crush morale. Sound political frameworks represent individuals and interest groups whose goals and decisions emerge from bargaining and negotiation in jockeying for their own interest (B&D 194). Ben and Jerry’s decision making was overseen by an all encompassing moral agenda – Ben’s shareholder power enforced the agenda. Lacy must handle scarce company resources under this moral agenda. The opposition of “businesslike” and “socially minded” factions between the top level executives was not discussed under an open forum. Ben maintained position power as part of an overbound system (B&D 203, 205). As Lacy has the ability to influence the distribution of power and open up a forum for interest groups. A more businesslike political framework will allow for
According to Bolman and Deal, the core premise of the structural lens is defined as “Clear, well-understood goals, roles, and relationships and adequate coordination are essential to performance” (pg. 44). In an organization, structure is of vital importance, it lays a sturdy foundation which serves to decrease confusion and inefficiency amongst individuals of the organization. The core premise emphasizes that in order for an organization to reach its full potential, goals need to comprehended, appropriate roles need to be assigned to individuals and good management are imperative in bringing together an organization and increasing proficiency, in order to achieve established goals. Structure in an organization serves as the framework, where
The organizational structures within a company can be the determining factor if a business can run efficiently or run chaotically into ruin. The organizational structure is the different hierarchy’s and arrangement of authority, roles and duties in an organization. The Cheesecake factory has a very effective organizational structure which allows for its operations to run smoothly and enables the Cheesecake factory to be one of the highest earning restaurant chains. The structure contains three main levels. The first and highest level is the board of directors which contains 7 members, including the CEO David Overton and 6 directors. The next level of hierarchy called N-1 contains 7 levels including the CFO, President, Area Operations,
Within any business there are the organizational functions that can create the type of structure an organization will have. A business's functions are the things it does. Production, sales, and marketing are a few examples Chick-fil-A has within the company. The organizational structure defines the relationship and interactions between the different parts of the company, and identifies how the chain of command runs through the different levels. When money is earned at a fast pace, it opens doors for the company to expand. As the company grows, they begin to hire more employees and they offer new products.
In the case presented both AFLAC and L.L. Bean had their own distinctive ways of utilizing their products in order to enhance the total compensation for its employees. The factor that has deterred more employees away from their current employer is that of benefit packages, and reward systems. As stated by () “compensation affects a person economically, sociologically, and psychologically. For this reason, mishandling compensation issues is likely to have a strong negative impact on employees and, ultimately, on the firm’s performance” (p.313). Many felt just a bump in pay wasn’t enough to substantiate their hard work or the efforts that the performance efforts provided to their organization. As stated by () “the right total rewards system a blend of monetary and non-monetary
carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).
The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).
For the most part, a company’s compensation policy aims to ensure that employees are compensated in a fair and competitive manner. However, the compensation objectives employed by different companies can vary widely. This is especially true when taking into account wages vs. skills, competitor salaries, pay-for-performance, and other elements of compensation, like overtime, incentives, etc. (Snell, Morris, & Bohlander, 2015).
All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.
Ben & Jerry’s is an ice cream brand that started in Vermont in 1979 by Ben Cohen and Jerry Greenfield. Originally started as a small parlour business, it saw steady expansion in its distribution over time. Its acquisition by Unilever in 2000 allowed the brand to undergo worldwide distribution through tapping on the conglomerate’s logistics and distribution expertise. Faced with an ever changing business environment and dynamic consumer preferences, Ben & Jerry’s has adopted unique strategies to boost its competitiveness.
The social implications of business lie in the foundation of a business and the men who built that foundation. The consideration of a benefit corporation, while it looks good on paper, could still then negate the social justice obligations belonging to the owners/founders/executives of whichever company presents those beliefs – while a benefit corporation may implore that the shareholders are held to a social mission for the sake of the company, that does not defend against corrupt shareholders who are willing to manipulate the situation in general. Changing the type and means of business will not change the negativity with the business and legal world, yet placing safeguards in to protect not only the business but also the social beliefs reinforces
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
Organizations that are committed to retaining good workers must also provide adequate compensation that allows employees to feel the organization cares about their needs. In order for Wal-Mart to remain competitive they must offer a compensation package that employees feel is fair and comparable to other organizations. If employees feel that the organization does not care or place any value on their individual needs employees may not remain with the organization and/or adapt the desired behaviors the organization requires, to provide superior customer service.
Critically evaluate the mission, vision and values of a company that you are familiar with and propose alternative formulations of same
In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. (Investopedia, 2017) , It determines the guidelines of activities such as task distribution, coordination, and supervision to reach and achieve organizational objectives. The organization can be structured in various ways, depending on its objectives.