Politics at Walt Disney
Conflict, Politics, and Conflict Resolution
Each organization has a director. It is a person who confirms all decisions and determines business strategy. The company’s activity, functioning, and position depend on his or her decisions. Bad leadership leads to a bad organization. From this point, it is very substantial to understand the value and capabilities of the director for wealthy company’s functioning.
Closer look onto the Disney’s organizational structure gives a better understanding of the leader’s status. . Their main problem was CEO Michael Eisner. His policy and position have eventually harmed the company. Every Disney’s employee was subordinated to his personal desires. The reasons and motifs for such behavior remain unclear. Neglecting the consequences led to the horrible results after all. The company ruined its relationships with Steve Jobs and almost lost their contract with Pixar studio. Eisner’s mentality, his egoism, and desire to control all processes reflected badly on him as well. The slow decision-making and excessive control of Michael Eisner affected the organizational structure of the Disney Company. It is essential to delegate certain responsibilities to others because one person does not always see the whole picture and make the right decision. Moreover, it is significant to consult with a board of management, as they also have the experience and knowledge in various spheres, which can help to find the best alternative.
Assigning Bob Iger as a new Disney’s CEO was a game-changing step. His forcible decisions awakened the company momentarily. He established business relationships with Apple, reorganized the company’s hierarchy, and delegated the decision-making process to the managers. Iger gave the freedom to low-level management, which resulted in generating new innovative ideas and strategies. He refreshed inner relationships in the company so that the divisional managers could speak freely to the CEO and suggest their creative ideas. The simplification of the decision-making process and retiring useless top managers helped to reduce administrative costs and facilitated the interrelation between high and low organizational levels. These little yet crucial steps lead to improving the situation and brought excellent results. The company began to flourish and gratify public. Furthermore, Iger’s policy helped to make new agreements with well-known companies such as Google, Apple, and Amazon. In addition, the profit and revenues of the company increased significantly, which gave the world the possibility to see new heroes and characters.
Right decision making and charisma are vital for company’s success. From Disney’s example, it is clear that the CEO plays a great role in creating a profitable strategy. The empowerment can either ruin the organization or make it prosper. Therefore, it is critical to choose the right director as this person will lead people to out of the box thinking and consider everyone’s opinion in the company.
Effects of Power on Organizational Structure
Leaders always have power and only they decide how to use it. They can achieve the aim in various ways and have desirable outcomes. There are no specific algorithms of when and how to use this power. For that reason, it is the manager’s decision how to act in his or her position. The sources of power have a profound effect when they combine and interact with each other.
The legitimate power is the most important one. It gives the director the right to manage the work of employees, delegate duty to others, and control the working process. The leader is legitimate when the workers demonstrate respect and perform their duties.
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The second source of power is proficiency. In every field, experts hold a high position because of their ability to solve the problems instantly and guarantee quality. A company can efficiently use its resources and improve its activity relying on such experienced professionals.
The referent power is also very demandable. It requires the respect and trust of others. A natural charisma and likeability enable a leader to become respectable and authoritative among his or her employees.
The most severe is the coercive power. It involves punishments, threats, and sanctions as a means of control. Consequently, the employees experience irreverent attitude and are driven by the feeling of fear.
The most pleasant is the reward power. It includes the value material gratification or other moral incentives. The usage of various tactics may help to manage the work and ease the organizational process.
Organizational strategy and design play a fundamental role in a global operations environment. There are different factors to measure their effectiveness. First, the diversification of the goods and services will assist in analyzing the market share, amount of consumers, and quantity of deals. Second, a company should also consider low labor costs and the environmental protection. Third, it is important to define the aim of an organization, its possibilities, and opportunities, analyze the competition and market position. Fourth, the corporative culture connects the employees and identifies the climate inside and outside the company. This factor has a significant influence on evaluating the organizational design. Finally, the innovations and possibility of a company to be mobile should always be considered. It is essential to have an immediate response to the changes and a good reaction rate in the technological era.
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The analysis of these factors provides a better understanding of the organizational design and strategy in a global operations environment. It is worthwhile to make such evaluation as it helps to determine the flaws in management and opportunities for the company to compete with the other businesses in the industry. This information will be very useful to the international companies that enter a global market.