The Case Of Innostat, The Main Issue On The Culture Of The Organization

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Task 1 In the case of Innostat, the main issue on the culture of the organization has led to a bad productivity and has affected its effectiveness and efficiency. This portrays that Innostat has overlooked the importance of culture which claims by Schein (2004) as powerful energy for the organization in order to reach the goals. Hence, Innostat is now struggling to bring back its innovating edge. By referring to the Burke-Litwin Model (1992), it can be seen that there is an interconnectedness of four factors including leadership, culture, work unit climate and motivation which the effects will be analyze using the same model shortly. Ultimately, this analysis proposes that the most crucial issue to be addressed in the case of Innostat is…show more content…
This kind of leadership promotes a culture of dependency toward the leader, hence blocks the growth of creativity, skill and knowledge of the employees. This is supported by the expert, Eckerts (Beer, 2006) who further states that charismatic leadership style like Jack has lose the creative energy of the employees. In addition to that, due to this leadership style, it does not promote the culture of cooperation, teamwork and trust between the top management and employees. Due to this culture, the work unit climate is affected as well. It can be seen that there is a weak cross-functional collaboration among the departments since Jack’s leadership. This is demonstrated by Jack, who goes directly to R&D department for new projects without considering any discussion with other departments. Therefore, other departments do not functioning at their optimal level hence, it affects the organization effectiveness. Besides that, it is clear that Innostat employees only working within their own departments, and prefer to work on their achievements, hence prove that there is no common goal among them. Apart from that, Jack’s opinion on “Good ideas don’t need incentives, they need passion” (Beer, 2006) is one of the factors that affect the individual and organizational performance. Jack as a leader does not put much attention on the rewards, hence it

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