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Influence of organizational culture on innovation
Influence of organizational culture on innovation
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Organizational Impact Paper
Introduction
Organizations determine their structure by the various goals the organization wants to achieve; however, organizational structure can facilitate or deter the organizations advancement with regard to the accomplishment of these goals. Both small and larger organizations can attain increased sales and added profits in appropriately matching their structure with their needs to function. The three organizational structure types are, functional, divisional and matrix.
Innovation has a significant impact on the organization giving it a competitive advantage, and today organizations must be innovative to be successful and competitive in the marketplace. Ideas of innovation not only impact organizational strategy, the process, service, and products offered to the consumers. Innovative ideas require the organizational leaders to identify how the implementation process will proceed and its success based on the structure of the organization.
UPS (United Parcel Service) - Functional Structure
United Parcel Service (UPS) is continually finding innovative ways to remain the world’s largest package delivery company. Founded in 1907, the innovative strategies have continued in offering package delivery, logistics service, and specialized transportation in over 200 countries globally.
In 1907, the company started by James Casey in Seattle, Washington, called the American Messenger Company, and opened with the minimal sum of $100.00 Casey borrowed from a friend; Casey saw the need for this delivery service and in 1919 expanded to California, and was renamed United Parcel Service. According to UPS (2014), one of the first innovations was “building the first conveyor belt system for handling packages....
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...ices at high efficient levels while reducing operating costs is a formula for generate profits and creating a competitive advantage. To achieve these objectives organizations will have to rely upon not only offering quality products and services but also incorporating methods of innovation. Innovative ideas require the organizational leaders to identify how the implementation process will proceed and its success based on the structure of the organization.
Works Cited
Bank of America. (2014). retrieved from: http://message.bankofamerica.com/heritage/
Bank of America. (2014). retrieved from: http://about.bankofamerica.com/en-us/our-story/where-we-are.html#fbid=Ptrgtqv0df2
Dow Chemical (2014) retrieved from http://www.dow.com/innovation/resources/
United Parcel Service. (2014). retrieved from: http://www.ups.com/content/us/en/about/history/index.html?WT.svl=SubNav
UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management, logistics, and financial services. UPS used to be a trucking company with technology, now it¡¦s a technology company with trucks. One of the UPS¡¦s key success factors is the way they manage their operations. Their carefully designed network of vehicles, sorting facilities, and hubs combined with their IT system, allows them to pick up 13 million packages each day from 2 million addresses for delivery to over 6 million commercial and residential addresses worldwide with highest levels of reliability, efficiency, and speed. Also the integration of its air and ground operations gave UPS the ability to optimize utilization of its assets while still meeting customer service requirements. Other key success factor is UPS¡¦s human resource management. UPS has lowest turnover rates in the industry and succeeds in developing a portion of its workforce for management positions each year. The company¡¦s unique culture emphasized accountability and efficient execution at every level of the organization.
Organizations are initially structured around tasks, and as the organization continues to grow, the structure within the organization takes on many characteristics. Not all structures are advantageous, especially if they are lacking in some areas. There is a relationship between structure and size of the organization that affect the centralization of the organization. At the highest levels, the personality of the chief executive may amend the organizations' structure. The structure within an organization helps define the roles and responsibilities among the members from each department and work group. The four general types of organization structure are functional, divisional, matrix, and project based. “Organizational structure is the skeleton of an organization” (Feigenbaum, 2013) and how these individuals relate to each another. Structure is a statement of the current affairs, not the ideas, intentions or improvement within an organization. When business leaders develop their initial plans for an organization, he or she looks at how to design a company and takes inventory of all the tasks, functions and goals of the business. The leader then develops groupings and ordering of job positions, departments, and human resources to effectively and efficiently perform these tasks. Technology, size, environment, strategy and goals affect an organizational structure and effects, whether they are categorized as mechanistic or organic.
UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service. UPS has continued its strong marketing efforts in overnight and deferred air services. Both of these carriers have introduced information systems, which include user-friendly Internet interfaces. The carriers have also expanded logistical services and improved integration with customer supply chains.
UPS was founded in 1907 as a messenger company in the United States and now
Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. During his college years, he recognized that the United States was becoming a service-oriented economy and needed a reliable, overnight delivery service company. In 1965, as a undergraduate at Yale University, Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. He wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics.
The Different Ways Organizations Can Be Structured and Operated There are four major ways a company - organization can be structured and operate. P.C.G (o) Ltd I would dare say that is structured and operates with the functional structure. In order to make it clear and understandable I am analyzing here below the four ways that organizations can structure and operate. We will observe that all four structures have there advantages and disadvantages. In order also to assist you understand better the differences of the four ways that organizations can be structured see in Page 4 & 5 Figures 1,2,3 which are the layout of the organization charts for each structure: 1.
This seems nearly impossible but when a company is well organized and has excellent communication throughout the company, it makes shipping these packages a lot more simple. On a regular basis UPS has communication meetings between operation managers, and first line employees (Soupata, 2005, p. 97). Other than these meetings, employees communicates mainly through a communication channel called, UPSers.com. This allows employees to stay up to date on things going on throughout the company and allows easy access to contact information for the person of interest. They can also use UPSers.com to check the benefits the company provides for them.
The Competitive Forces are: The biggest competitor is Fed Ex, and they cannot compare. UPS did 2.5 times the volume through its sophisticated delivery machine.
Most organizations fall under one of three organizational designs: simple structure, bureaucracy and matrix structure. The organizational design of a company suggests who makes executive decisions and how they are enforced. The organizational design is typically decided based on the size of the company and market place.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
Innovation, every organization wants it, but most cannot grasp proper change. In fact, more than two thirds of innovative efforts fail. Look at corporate giants like Kodak, Blockbuster, Motorola, Toys “R” Us and Yahoo. Every one of those companies where paramount, dominating their market and somehow they all lost their edge. Why? Because of disruptive internal culture.
First of all, organizational structure determines the hierarchy, the levels of communication, and how job tasks are formally divided, grouped and coordinated within an organization (Langton, Robbins, & Judge, 2013). There are six key elements that managers need to address when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization (Langton et al., 2013). The way in which an organizational structure is constructed and implemented can affect company productivity.
Prior to the interview I did understand that innovation architecture is an effective way to map out the potential paths that a company can take to gain success and uniqueness, but I did not realize how in depth those innovative portfolios should be. With this interview my new understanding of the innovative portfolios should consume of as many ideas as possible that will put the organization toward the projected goal and gain a competitive advantage. With this acquired knowledge from the interview, I now understand how businesses will suffer without the effective ideation process that builds the innovation architecture. Furthermore, I understand fully of the importance of teamwork and collaboration while constructing the innovations that will build the companies
One of the most integral qualities of an entrepreneur as well as that of a successful business is the degree of innovation it possesses. Innovation refers to the creation of new ideas, improvement of existing production processes, and effective problem solving. Innovation allows for increased efficiency in a business, which in turn increases its supply potential and productive capacity. Being innovative may involve either improving upon old methods o...
Organizations are established in specific ways to obtain different objectives, and the structure of an organization can help or restrain its advance toward accomplishing these goals. Organizations of different sized and types can achieve higher sales and other profit adequately by identifying their requirements with the structure they use to operate.