Bureaucracy in Next Value Line and Southwest Companies | Free Essay Example

Bureaucracy in Next Value Line and Southwest Companies

Words: 556
Topic: Business & Economics

Bureaucracy is a form of “organizational structure,” which helps to organize people working in large companies (Jones 137). It is necessary to add that the system is quite effective as a specific structure is formed, and employees know their responsibilities. However, bureaucracy can also lead to numerous issues in an organization (Jones 139). For instance, decision-making can be slower as numerous approvals have to be obtained. At that, employees may lack the enthusiasm to suggest new approaches and ideas as each incentive will require quite a lot of time and effort. To eliminate bureaucracy, it is essential to decrease the amount of paperwork as it should be minimal since it takes a lot of time. It is also possible to change the structure of some departments and organize horizontal collaboration of employees. Employees should be encouraged to come up with ideas and incentives.

The company I work for has a horizontal structure as it is a small business. It is possible to note that it is effective and has numerous advantages. Thus, there are no bureaucratic issues, and all decisions are made very quickly. There is no tension between different departments of the company as people have different responsibilities and are task-oriented. However, the structure has a significant downside as it is almost impossible in a big company. Our firm is now facing a need to expand, and considerable expansion will require a hierarchical structure. There are chances that the atmosphere within the company will change and effective collaboration may also cease to exist as people will have to accommodate to new rules.

Cultures in the two companies are very different. In the first place, the approach used in companies is different. Thus, Southwest’s CEO focuses on improving the quality of services provided and the development of collaborative and creative atmosphere within the company. Whereas, Value Line’s CEO focuses on cost reduction and control using strategies which ‘poison’ employees’ attitude towards the company. The values promoted in the two companies are different as well. Hence, in Southwest collaboration and creativity is welcome, and in Value Line employees are supposed to come on time and have their papers in order. Admittedly, it is the first culture. It is effective and leads to favorable results while the other forces effective employees to leave the company. The second approach is ineffective and should not be used.

Next Value Line’s CEO could copy Southwest culture to help the company solve issues that arise. Of course, the CEO should not simply take the tools used at Southwest as the companies provide different services. At the same time, some tools may be effective. Thus, employees may take some responsibilities of other employees to understand the processes which are happening in the company. Employees should also be encouraged to come up with creative and effective ideas.

Nonetheless, it is more important to copy the culture developed at Southwest. Next Value Line’s CEO should promote such values as collaboration, creativity, and commitment. Even though the company needs to reduce costs, it is possible to work on several strategies which will enable the management to reward the most effective employees. Furthermore, the reward can be monetary, and it can take other forms. Finally, Value Line’s CEO has to work on team building as the employees working in the company are no longer an effective team.

Works Cited

Jones, Gareth R. Organizational Theory, Design, and Change. Upper Saddle River, NJ: Prentice Hall, 2012. Print.