Organizational Leadership Week 6

This paper will evaluate Smith & Falmouth’s current state in terms of organization culture, control methods and using the results from the simulation will elaborate the restructuring strategy, effects of size and structure in the organization’s future, and effective management practices that will improve the culture by applying cross-functional teams and promote employee empowerment (Robbins & Judge, 2007, p. 342).

Smith & Falmouth is a mid-size tele-shopping and mail-order company with operations in the United States and Canada. Irene Seagraves is the chief executive officer for the company’s online operations. The online division was identified as a crucial unit for the successful future of the company and had set ambitious goals to improve sales and profitability for next three years. Seagraves formed three divisions, namely, web development, logistics team and marketing department under talented and enthusiastic leaders James Argyle, Brian Kervor, and Adam Searle respectively. The marketing manager Searle will coordinate marketing and logistics operations with the parent company. The three managers worked closely with each other, which yielded good results in an unsteady market however, the chief executive officer wants to consolidate operations and a chief operating officer was recruited to oversee this ambitious goal of streamlined online operations, increase the reach of online customer base, and make the online division a profitable strategic business unit for the parent company.

Organizational behavior

Within weeks after introduced to new teams, the COO experienced steady resistance from the teams. By the end of second week, the COO noticed there are groups and cliques existed beyond organization structure and realized they must be won to gain confidence. These “informal groups are alliances that are neither formally structured nor organizationally determined” (Yukl, 2006, p. 300). This may influence groupthink attitude among the members of the...