MDE 1133

ORGANIZATIONAL BEHAVIOUR AND DEVELOPMENT

GROUP PROJECT CASE STUDY 3

BOUNDARYLESS ORGANIZATIONS

Lecturer: DR WAN NORMEZA

Group members

FADZIL ADLY ISHAK

SYED IDRUS BIN SYED OMAR

SHAMSUDIN ABDUL MAJID

MD HANAFIAH NORDIN

MAZLAN MOHAMMED

MD KHAIRUL AMIZA

NUR NAZUHA MAHBOB

Question 1 : Identify some of the problems likely to occur in a boundaryless organization

like Newskool Grooves. What are the advantages of boundaryless organizations?

A primary problem identify within the Newskool organization is, lack of effective

communication between the divisions. This is a major problem that can be devastating to any

organization. Poor communication can lead to bad planning. Which can lead to the following;

lost opportunities, being overtaken by the competition, loss of revenues, or watching its niche

slip away because of a new technology, an alteration in the global marketplace, or simply a

failure to market its product effectively. When changes occur, they happen too quickly for its

organizational processes to meet them. As a result, opportunities are quickly lost, problem

situations take over rapidly, and before the company can respond appropriately, it has lost

customers, opportunities, and market share.

A disadvantage that Newskool would have to be aware of is the possibility of downsizing.

Newskool is trying to get their feet wet in a new industry, and revenue is not going to generate

like they are used to. So divisions that are not adding value may need to be cut.

Cultural Issues and Conflict

In this boundaryless company, headquarter in Berlin, Germany, structure outsourcing

company in Kiev, Ukraine, marketing in Los Angeles, so many different employees with

different cultures are all collaborate working together to achieve organizational goals. Employees

are also very diverse in values, personality, and work preferences, which are deep-level diversity.

Looking at the conflicts in Newskool, like the difficulties in decision-making and employees

fighting to do what they perceive is better compare to the others. It takes time for the company to

come with one decision as all of the employees can participate in decision-making. People that

are so diverse will suggest different solutions, reflecting their different cultures. Maybe it will be

good to have a proper discussion in decision-making, and only few managers can have the power

in making decision in the discussion. It is not a function of different types of work people have to

perform. As people from different areas or departments can contribute their opinions and ideas in

the same work that require one decision.

Satisfaction

Types of people are likely to be satisfied are competent, anxious, empowered and open

people. This based on self-efficacy theory; this theory refers to an individual's belief that he or

she is capable of performing task. People who posse’s self-efficiency believes that they are

capable in behaving in a way that produce that outcome they want.

In Newskool Grooves, their employees are participants in decision-making and

innovation, and they are creative and competent people. Because technology plays a major role

as a communication medium in the boundaryless organization, much work is done from a

distance via e-mail, phone, and fax. Less work is done in traditional face-to-face settings. Virtual

collaboration makes it easier to use the expertise of a broader range of individuals. With

telecommuting, international employees are more easily made a part of all business processes.

Employees often like the freedom that boundaryless work offers them, particularly with virtual

teams and more flexible work plans, arrangements, and schedules.

Human Resources

One type of human resources practices that should be implemented in this sort of

organization is performance simulation tests. What better way to find out whether applicants can

do a job successfully than by having them do it. This is precisely the logic of performance

simulation tests. These types are more complicated but the test have higher face validity which

measures whether applicants perceive the measures to be accurate. Emotional Stability is a

second one for hiring people the Company wants a personality dimension that describes someone

who is responsible, dependable, persistent, and organized.

From Big Five traits, the suitable use for selection are openness and conscientiousness. In

openness the supervisor can increase learning, develop more creativity, and flexibility. It can

effect their training performance, enhanced leadership and more adaptable to change. The second

is conscientiousness relevant is greater effort and persistence; more drive and discipline, and

better organizing and planning. The effects are it can lead to higher performance, enhanced

leadership, and greater longevity.

Performance Measure

In other to determine which type of performance measures that the company (manager,

Gerd) would like to see for each office, Gerd has to analyze specialty for each office. In Kiev,

Ukraine, it is filled with outstanding programmers who don't require the very high rates of

compensation. So the criteria of performance that need to evaluate in this office is about the

behavior of employees. In measured behavior, the company is not limited to those directly

related to individual productivity. Ways to measure behavior are helping others, making

suggestions for improvements, and volunteering for extra duties. This is what make work groups

and organizations more effective and often are incorporated into evaluations of employee

performance.

In the Los Angeles office since measures would be based on marketing effort, it is more

suitable to apply the individual task outcomes criteria because the management should evaluate

an employee's task on outcomes such as quality produced, scrap generated, and cost per unit of

production for a plant manager or on overall sales volume in the territory, dollar increase in

sales, and number of new accounts established for a salesperson. So this criterion is basically

performing the duties and responsibilities that contribute to the production of a good or service

or to administrative tasks which are relevant to the marketing field.

In the German office, the team excels at design and production tasks. The most suitable

criteria that can be used to appraise the performance of this office is also behavior plus individual

task outcomes together with the trait. This criterion is based on the having a good attitude,

showing confidence, being dependable, looking busy, or possessing a wealth experience may or

may not be highly correlated with positive task outcomes.

Socialization Program

Some of the offices in Newskool Grooves require a lot of creativity effort, so it makes

sense for each office to come up a with different type of socialization program due to its different

specialization. For example in the Los Angeles office, they are required more creativity to

develop ideas for marketing the product compared to the Kiev office that required more

independence to carry out the duties as programmers. So at the end we could see a different type

of activity will be established according to these different offices. Any activity will only reach its

goals based on the willingness of the employee, so the cooperation and willingness by these

employees is considered an essential thing that determines whether the employees want to

support and approve this activity or otherwise are against it.

As mentioned in the above statement, not all employees in all its locations need equal

levels of creativity because different offices bring different responsibilities. For examples, the

Kiev office focusing on the programming duties which have a different level of creativity

compared to the Los Angeles office that focus on marketing and require a higher level of

creativity.

Question 2 : Consider some of the cultural issues that will affect a company operating in

such different parts of the world and whose employees may not be representative of the

national cultures of each country. Are the conflicts you observe a function of the different

types of work people have to perform?

In this boundaryless company, headquarter in Berlin, Germany, structure outsourcing

company in Kiev, Ukraine, marketing in Los Angeles, so many different employees with

different cultures are all collaborate working together to achieve organizational goals. Employees

are also very diverse in values, personality, and work preferences which are deep-level diversity.

Some cultural issues that are sensitive will rise in the workplace and create unpleasant

things among employees. Employees might not be working together well as they will have

fighting in the decision-making. A good research in understanding various biological

characteristics like gender, race, ethnicity, age, or disability, will better the surface-level

diversity. Almost all employees are creative and like to accept challenges. Therefore, in this

similar personality and work preferences, they should be emphasized in working with others as a

team. Training for team building with different cultures people will be quite important.

Looking at the conflicts in Newskool, like the difficulties in decision-making and

employees fighting to do what they perceive is better compare to the others. It takes time for the

company to come with one decision as all of the employees can participate in decision-making.

People that are so diverse will suggest different solutions, reflecting their different cultures.

Maybe it will be good to have a proper discussion in decision-making, and only few managers

can have the power in making decision in the discussion. It is not a function of different types of

work people have to perform. As people from different areas or departments can contribute their

opinions and ideas in the same work that require one decision.

Another conflict will be inefficiency. Yes, different people must perform different tasks

in their organization, but Newskool is boundaryless. When Gerd, the founder and the CEO does

not satisfy, he asks his employees to redo the work tasks. It will cause a waste in resources as

Gerd perceive something differently from his diverse employees. Sometimes, it is good to have

hierarchy as people can know who to refer, which department to function and so on.

This conflict is a function of different types of work people have to perform. The

employees that are sometimes so dominant and think their works are correct, refuse to listen to

Gerd and do things according to their own way.

Question 4: What types of human resources practices need to be implemented in this sort

of organization? What principles of selection and hiring are likely to be effective? Which

Big Five traits and abilities might Newskool supervisor want to use for selection?

One types of human resources practices need to be implemented in this sort of

organization are performance – simulation tests where what better way to find out whether

applicants can do a job successfully than by having them do it the is precisely the logic of

performance simulation tests. These types are more complicated but the test have higher face

validity which measures whether applicants perceive the measures to be accurate. This type’s get

of organization popularity has increased. Organization can do for their human resources practices

more best based using are work samples in organization. Work samples tests are hands-on

simulations of part that applicants for routine jobs must perform. When we can see from

Newskool Grooves to test and design the company’s hardware products, employee apparently

needs to do more than send each other code. Actually, the organization not necessary take all

code only choose use sample test. This method more better to measure applicant’s knowledge,

skills, and abilities with more validity than written aptitude and personality tests. Have a three

selective of hiring are likely to be effective which are Core self-Evaluation Of course all

company want their employee know about his self weather weaknesses or strength. So, for more

too efficient in the work he will know first before he starts the task, because he will think about

his self first. Emotional Stability is a second one for hiring people the Company wants a

personality dimension that describes someone who is responsible, dependable, persistent, and

organized. It is because for easier company do the work and he can help the company make a

profit and attract more customer. Third is a confidence the employee has a good confidence

level. For example, in interview the company can psycho the employee for know the him or her

confident. If at interview, the employee cannot handle him emotion he cannot handle many task

in one time.

From Big Five traits, the suitable use for selection are openness and conscientiousness. In

openness the supervisor can increased learning, more creative, and more flexible. It can effect

their training performance, enhanced leadership and more adaptable to change. The second is

conscientiousness relevant is greater effort and persistence; more drive and discipline, and better

organized and planning. The effects are it cans higher performance, enhanced leadership, and

greater longevity.

Question 5 : What kind of performance measures might you want to see for each office?

Newskool Grooves is now being the boundaryless organization that faces challenges of

so many workers heading in so many different directions. One example of company that applies

boundaryless General Electric Company practices 360-degree performance appraisal. So, this

can be example for Newskool Grooves to apply the 360-degree performance appraisal just to

break down the vertical boundaries. This type of performance evaluation is by relying on

feedback from co-workers, customers, and subordinates, these organizations are hoping to give

everyone a sense of participation in the review process and gain more accurate readings on

employee performance.

In other to determine which type of performance measures that the company (manager,

Gerd) would like to see for each office, Gerd has to analyze specialize for each office. In Kiev,

Ukraine office, it is filled with outstanding programmers who don’t require the very high rates of

compensation. So the criteria of performance that need to evaluate in this office is about the

behavior of employees. Even though we may readily evaluate the group member, most of the

time it is really difficult to identify the contribution of each group member. In measured

behavior, the company need not required being limited to those directly related to individual

productivity, another things in behavior are helping others, making suggestions for

improvements, and volunteering for extra duties make work groups and organizations more

effective and often are incorporated into evaluations of employee performance.

In Los Angeles, U.S office that based on marketing effort, it is more suitable to apply the

individual task outcomes criteria because the management should evaluate an employee’s task on

outcomes such as quality produced, scrap generated, and cost per unit of production for a plant

manager or on overall sales volume in the territory, dollar increase in sales, and number of new

accounts established for a salesperson. So, this criterion is basically performing the duties and

responsibilities that contribute to the production of a good or service or to administrative tasks

which relevant to the marketing field.

In German office, the team excels at design and production tasks. The most suitable

criteria that can be use to appraise the performance of this office is also behavior plus individual

task outcomes together with the trait. It is because since in designing and producing activities,

the employee is involving in the almost all count, behavior and human’s trait just to assess the

job performance. In trait it is the weakest criteria but still implement as one of the point to

evaluate the performance. This criteria is based on the having a good attitudes, showing

confidence, being dependable, looking busy, or possessing a wealth experience may or may not

be highly correlated with positive task outcomes.

Question 6: How can company establish a socialization program that will maximize

employee creativity and independence? Do employees in all its locations need equal levels

of creativity?

Socialization is the process by which the person is shaped by his or her environment. In

this case the company can establish a socialization program by analyzing and thinking some

attractive activities before carried it out. The manager himself could not bring out great ideas

without having brainstorming process with all Gerd Finger’s proactive and good employees. So

by involving the employees could increase the great idea in order to reach an ideal decision at the

end. Then, some of the offices in Newskool Grooves required a lot of creativity effort, so it

makes easy for each office to come with different type of socialization program due to its

different specialization, for example may be in Los Angeles office, they are required more

creativity to handle the great way for marketing the product compare to the Keiv offices that

required more independence to carry out the duties as the programmers, so at the end we could

see different type of activity will be established according to these different offices. Any activity

will only reach its goals by depend on the willingness of employee itself, so the cooperation and

willingness by these employees considered as essential thing that determine either the employee

want to support and approve this activity or otherwise against it. Other than that, the manager

should considered almost all aspects in organization, including the cost to carry out the activity,

it is not really an easy things to make a balanced activity that required ideal creativity and

independence without looking the cost that will be incurred for such unprofitable activities

toward customer.

In conclusion, the essential thing that should be taken before establish these creative and

independence activities are by making a brainstorming and choose the best ideas among all

employees, let each office bring out different type of activity because these office are not sharing

the same specializes, then the cooperative and willingness of the members in organization is

really vital in order to establish this ideal activity. Other than that, the cost factor will be included

before making any decision which will be affected the financial level of company.

As mention in above statement, not all employees in all its locations need equal levels of

creativity because different offices bring different responsibilities, for examples, the Kiev offices

focusing on the programming duties which totally have different level of creativity compare to

U.S Offices that focusing on marketing definitely required higher level of creativity compare to

the previous one. But it has the possibility to have the same level of creativity for different

locations due to its quite similar duties that they are carried out, for example, the German and

U.S Offices provide quite same level of creativity because both offices focusing to the marketing

and producing that have same view under the business perspective. But different individual also

has different level of creativity, for example the people who worked as the executive marketing

required more creativity skills in order to market its company product compare to the person who

worked as the general clerk who contribute only to prepare the text that already formatted to do

so without adding any creative element just to make it more attractive is totally forbidden. So the

real answer for this confusing question is just depend on the duties and specialization for each

different individual and department just to determine the level of creativity produced.