Rothaermel exercise 3
Krissinda Richards
BUSI 690
Question 11.1
Why is it important for an organization to have alignment between its strategy and
structure?
Strategy and structure go hand in hand because it has a direct impact on organizational
performance. When new strategy is implemented it has to flow through the organizational
structure to ensure that the firm can maintain a competitive market position. Implementing the
correct structure will cause a more productive workplace and will improve communication and
innovation among the employees (Rothaermel, 2017). Managers may face certain challenges
when trying to structure their firm. They have to ensure that costs are controlled while allowing
for creativity that will secure differentiation. When an organization changes its structure but not
its strategy the strategy will automatically change to fit the structure and it takes the right
structure for strategy for to succeed.
Question 11.2
The chapter describes the role of culture in the successful implementation of strategy.
Consider an employment experience of your own or of someone you have observed closely
(e.g., a family member). Describe to the best of your ability the values, norms, and artifacts
of the organization. What was the socialization process of embedding the culture? Do you
consider this to be an example of an effective culture for contributing to the organization’s
competitive advantage? Why or why not?
Ensuring the organizational culture of any company is healthy is an important factor to consider
for long term success. The organizational structure is the distinctive driving force that all firms
should have to show how things are done internally. Rothaermel (2017, p. 384) defines
organizational culture as “The collectively shared values and norms of an organization's
members; a key building block of organizational design.” Interestingly corporate culture is also
expressed through the elements of design, layout, physical space, symbols, vocabulary, and
events all of these elements are also known as artifacts. The main element that should be at the
core of every organization is its values moving outward toward norms and artifacts.
Understanding what organizational culture is, how to create, maintain, and change is one of a
manager’s main concerns.
The Hospital Corporation of America (HCA) is a for profit organization made up of 185
hospitals and 119 freestanding surgery centers located in 21 U. S. States and in the United
Kingdom. The mission of the company is “Above all else, we are committed to the care and
improvement of human life”. The core values that are built around this mission include:
•
We recognize and affirm the unique and intrinsic worth of each individual
•
We treat all those we serve with compassion and kindness
•
We trust our colleagues as valuable members of our healthcare team and pledge to treat
one another with loyalty, respect, and dignity
•
We act with absolute honesty, integrity, and fairness in the way we conduct our business
and the way we live our lives
(HCA, 2019).
Working in the back office of the company dealing with patient accounts the company
strives to enforce a culture of family. It is mostly set up as a large open space with cubicles for
employees and managers and private offices along the sides for the directors, CEO, CFO, and
COOs. They strive to foster a culture of unity within in the group by doing monthly drawings
which give employees an opportunity to win prizes for outstanding work, there is an annual
employee carnival, and numerous other events that are catered and geared to employee
comradery. Success within an organization stems from effective communication that can foster a
sense of family and unity. 1Corinthians 1:10 (New international version) says, “I appeal to you,
brothers and sisters, in the name of our Lord Jesus Christ, that all of you agree with one another
in what you say and that there be no divisions among you, but that you be perfectly united in
mind and thought. I think the socialization process was just getting the employees involved by
doing different activities not just work related but fun things where we have an opportunity to
work together as a team to achieve a common goal. I don’t know that this type of culture speaks
to the competitive advantage of the organization because by them being a for profit organization
it really is all about the numbers at the end of the day.
Question 12.1
How can a top management team lower the chances that key managers will pursue their
own self-interests at the expense of stockholders? At the expense of the employees? At the
expense of other key stakeholders?
When organizations are looking to recruit managers they need to do careful evaluations
of their background and resume to ensure they are hiring quality individuals who will have the
interest of the company at heart and not their own interests. According to Haynes, Josefy, & Hitt,
(2015, p. 269) “Self-interest is one of the core constructs of organizational, social, and behavioral
sciences. Many organizational studies are based on the assumption that individuals’ actions are
aligned with their self-interest”. To avoid the self-interests of managers overshadowing the needs
to stockholders top management could possibly implement a stock options program. This
program will be would be a win for both sides because as the company performs well then both
stockholders and managers would benefit from it. Top management should also evaluate the day
to day decisions that are made by managers to ensure they are making decisions for overall goal
of the company and not merely for their own advancement.
Some managers can be self-absorbed and only concerned about making themselves look
good and take no consideration for their team. Top management should make sure that managers
are communicating effectively any changes to the employees, they should offer feedback from
the employees on how they are feeling about changes that are being made, as well as
encouraging them to be innovative as to how they can help make the organization better to reach
its goal. They should ensure that the managers are actually doing work themselves as a part of
the team and not just delegating and the team is doing all the work, but they get all the credit.
Normally companies are under contract with various suppliers and manufactures to help
deliver and produce their product or services. Rules and regulations must be in place and
thoroughly enforced by all parties so that no self-interest can be satisfied.
Question 12.3
The shared value creation framework provides help in making connections between
economic needs and social needs in a way that transforms into a business opportunity.
Taking the role of consultant to Nike Inc., discuss how Nike might move beyond selling
high-quality footwear and apparel and utilize its expertise to serve a social need. Give Nike
some advice on actions the company could take in different geographic markets that would
connect economic and social needs.
It is the responsibility of executives and top management to find ways to broaden their
customer base environmentally and socially. Nike is a multinational company and sees social
responsibility as an opportunity to innovate. Taking a look at the world’s most persuasive global
issues environmental protection and equal opportunity. To boost its environmental protection
initiatives the company should seek to use recycled products and renewable energy sources in
manufacturing. By implementing the Nike Circular innovation challenge and inviting designers,
engineers, scientist and makers to help facilitate and help a more sustainable future. Another way
that Nike can help socially in other countries is by developing a health initiative encouraging
people to become active and even providing clean drinking water.
References
Haynes, K. T., Josefy, M., & Hitt, M. A. (2015). Tipping Point: Managers’ Self-Interest, Greed,
and Altruism. Journal of Leadership & Organizational Studies, 22(3), 265–279.
https://doi.org/10.1177/1548051815585171
HCA. (2019). Retrieved from https://hcahealthcare.com/about/our-mission-and-values.dot
Rothaermel, F. T. (2017). Strategic management concepts (Custom 3rd ed.) New York, NY:
McGraw-Hill.
