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Organizational Structure Paper

1163 words - 5 pages

According to the Tyco website, Tyco originated as a Tyco Laboratories a United States government research laboratory company. Today Tyco has three independent companies: Tyco Healthcare, Tyco Electronics, and Tyco International consisting of five different business segments. Flow Control, Electrical and Metal products, Fire Protection Services, Safety Products, and ADT Worldwide are the five business segments under Tyco International’s umbrella. Tyco is a vertical structure with levels of hierarchy. The board members and top management are responsible for governing its’ mission and goals while ensuring the organization’s five principles are enforced.
Tyco expects each employee to strive ...view middle of the document...

Communication can skip levels of management without reprimand. Tyco encourages communication, but borders are visible.
Some companies are diverting from vertical structures completely. According the week three supplement, Best Buy is allowing its’ employees to have more control in the company. Employees can create their own schedules and can determine sales strategy. The results-oriented work environment experiment is allowing employees more freedom in the workplace. Employees must still complete sales, and report to work, but under less stringent circumstances. Best Buy’s requires each store to meet their sales quotas, but they are not focusing on the work hours used to meet the quotas. As long as the work is complete there are no issues regarding hours worked.
Best Buy is offering this employee created concept to other organizations. Interested organizations can pay a fee to learn how to restructure to a clockless place of work. Best Buy says the clockless concept will help with employee retention. The new concept should reduce employee burnout, and lessen high job turnovers. Tyco and its’ subsidiaries may experience difficulties creating a clockless organization. Tyco is a production organization and must meet production deadlines. Production organizations may need stricter supervision to ensure customers receive their products in a timely manner. Organizations that develop and produce items rely more on hierarchy management style. This management style ensures production and deadline completion because each level of management reports to the next level.
Each function at Tyco is very important to the organizational structure. Tyco running on a hierarchy structure, which delegates power (authority) and fold each function of the organization and the success of the organization. Because Tyco runs on a production schedule each function must complete their tasks or projects on-time and effectively before the next function can go on. If this is not done then the whole balance of the organization will be off.
After Tyco’s Chief Executive Officer was brought in with 23 accounts of fraudulent charges against him the functions within the organizational structure became even more important. Tyco has to take a step back and create different plans and goals to make the company better in the future. The previous management style and structure of the company was not effective. Tyco needed a different approach how they would meet their goals and succeed in the future. Tyco started to look at the functions of the company and what management style they could use so that everything would run smoothly.
Functions such as marketing, finance, human resources, and operations would have more power to make decisions in their hands. Tyco decides more than one person could help with ethics and responsibility. Tyco created...

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