ETHICAL BUSINESS COMPANY (EBC) In 2010, Bella Wilfer, a graduate from Darden Graduate School of Business Administration joined EBC EBC o!erated as a democrac", characteri#ed $" %at go&ernance, o!en communication, shared leadershi! and radical trans!arenc" 'he e(isting lead leader ersh shi! i! stru struct ctur ure e of the the CE) CE) and and *ice+ ice+r res esid iden ents ts -er -ere made made an e(ecuti&e committee that -as aided $" four committees democraticall" elected $" all !ersonnel .ather than organi#ing the com!an" hier hierar arch chic ical all" l",, em!l em!lo" o"ee ees s -er -ere grou grou!e !ed d into into thr three cate catego gori ries es of res!onsi$ilit"/ su!!ort, see and see 'he oce s!ace -as designed to re%ect the %atter organi#ational structure 'he oce -as &er" o!en and full of natural light -ith all the internal -alls made of glass Wilfer could see clear across from -here she sat In each cu$icle and meeting s!ace -as a co!" of the leadershi! charter charter As EBC -as a %at com!an", Wilfer found it confusing to understand the !ositions of her colleagues Wilfer noticed that she -as not referred as an associate $ut as a !erson -ho o!erated -ith a support mindset mindset er co+ -orers -orers -ere not a$le to e(!lain the de3nitions of support , seek and and see see Wilfer -as e(ited for her 3rst !roject in -hich she had to hel! a major electric utilit" conduct and assessment of its internal trans!arenc" and recommend -a"s to im!ro&e communication 'he ne(t da" Wilfer had to go for a co4ee chat -ith the 5ohn armon -here he addressed the entire grou! a$out his $log !ost 'he issue -as not onl" the election $ut ho- armon !ortra"ed it !u$licall" !u$licall" An em!lo"ee named 5enn" Wren -as remo&ed from the $allet as he had onl" a college degree e&en if he -as -oring reall" -ell 6ater in the -ee, during a team meeting she $ecame distracted $" the con&ersation $" junior em!lo"ees called the anal"sts 'he" -ere maing the joes a$out the 6eadershi! Charter er Although, Wilfer felt uncomforta$le $ut she did not res!ond Although, EBC -as a %at organi#ation, armon had a se!arate conference room named assion 'hough Wilfer did not ha&e a !ro$lem -ith this $ut she thought it -as -eird that armon !retended not to ha&e one After the co4ee chats, Wilfer had to attain a 'o-n hall meeting -hich -as conducted $" armon to res!onse to em!lo"ee concerns 'he concerns -ere related to the di&ision that had $een .oesmith and andford, 66C $efore its ac7uisition 'he com!lains -ere focused on goals and hiring Ass !er armon, onl" those -ho achie&e a grou! goal -ould get a $onus 'he di&ision that had $een .oesmith .oesmith and andford -as re7uired re7uired to dou$le the gro-th, -hereas the rest of the com!an"8s re7uirement -as
less than 29 'he em!lo"ee of the .oesmith and andford di&ision -anted an e(!lanation as to -h" their gro-th targets -ere so much higher, !articularl" gi&en that the di&ision -as not scheduled for a !ro!ortionall" high sta4 increase :e- sta4 hiring -as also taing long $ecause of the council structure $eing im!lemented )n the third -ee, four of the most senior em!lo"ees announced that the" -ere lea&ing According to the !eo!le of the organi#ation the" left $ecause the %atter com!ensation !lan, and the $onus !lan -ere not com!etiti&e Some said that armon -as forcing out an"one -ho did not $u" into restructuring and the ideas in his manifesto 'he ne(t da", Wilfer had a meeting -ith all the !roject managers, most of them concentrated on the !ro$lem instead of the solution 'o! !eo!le ha&e just ste!!ed out $ut no one ste!!ed u! as after "ears of $eing -ithin a hierarch" her co+-orers -ere not read" to tae on the $igger role in managing the com!an" Although Wilfer -as initiall" 3ne -ith the idea of a %at organi#ation, $ut no- she -as not sure just ho- to achie&e it She -as -orried a$out -hat she should do a$out her current situation at EBC
Where did the problems eists! • •
•
•
Im!ro!er role de3nition and lac of clarit" related duties Dis!arit" $et-een -hat -as !reached and -hat -as !racticed :eed of more trans!arenc" 6ac of initiati&e amongst em!lo"ees 'his -as $ecause the &alues of the com!an" -ere not !ro!erl" instilled amongst the em!lo"ees 'hus, organi#ational lo"alt" -as lo- Image of the com!an" ham!ered due to attrition of senior em!lo"ees
S"##ested Sol"tio$s! ro!er role de3nition and role clarit" is re7uired so that there is no am$iguit" -ith res!ect to e(!ected !erformance of the em!lo"ees 'rust $uilding acti&ities in order to instill the organi#ational &alues into the em!lo"ees ro!er recruitment of !eo!le to ensure right 3t of !eo!le for such organi#ational structure ;ocus on $uilding cohesi&eness -ithin -orforce
Ad%&$t&#es o' l&t Or#&$i&tio$ Str"*t"re! • • •
•
• • •
;lat organi#ation is less costl" $ecause it has onl" fe- managers It creates fe-er le&els of management
+is&d%&$t&#es o' l&t Or#&$i&tio$ Str"*t"re! •
• •
•
•
•
• •
'here are chances of loose control $ecause there are man" su$ordinates under one manager 'he disci!line in the organi#ation ma" $e $ad due to lose control 'he relations $et-een the su!eriors and su$ordinates ma" $e $ad Close and informal relations ma" not $e !ossi$le 'here ma" $e !ro$lems of team -or $ecause there are man" su$ordinates under one manager ;lat organi#ation structure ma" create !ro$lems of coordination $et-een &arious su$ordinates Ecient and e(!erienced su!eriors are re7uired to manage a large num$er of su$ordinates It ma" not $e suita$le for com!le( acti&ities 'he 7ualit" of !erformance ma" $e $ad
