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Another thing I learned about in Module 8 is Productivity. I thought this comic strip gave a funny twist to the definition.

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One of the things I learned about in Module 8 was about the different types of Control, one of them being Bureaucratic Control. This article highlights the important of this type of control.

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Just because you are in as self-management or self-designing team it doesn't mean you have all authority to do things whatever you want. There is always going to be someone with higher authority you need to report to. This is where bureaucratic control system comes to play into place. If you want to be more effective and organized in the workplace you have to establish bureaucratic control to have a constructive and orderly system to help you govern your organization or company.

It's really important to have bureaucratic control system in the workplace. I will give you an example; one bad side about having self-management or self-designing teams, sometimes team members may think they know better than their managers or their team leaders maybe because they are great in what they are doing, and when that happens it can create some kind of disagreement in decision making. So having a bureaucratic control system not only can help resolve conflicts in the workplace, but it can help set up a business structure for your organization or company when it comes to respecting the authority of managerial positions.

At the end of the day team members of self-management teams have got to respect the authorities of their leaders or managers and follow the organization procedures. The authority of managers should be respected, as well as managers should let their teams free to come up with solutions and ideas. In this one organization that I worked before, I used to report to multiple bosses, both in-country and outside of the country where the headquarter is located. There was this one time my in-country big boss was very furious because she thought I bypassed her authority; she felt left out. But after we discussed about it, and explained my side of the story, things were resolved.

Without bureaucratic control systems people will be doing things in their own terms, things will be out of order. Though with bureaucratic control systems sometimes the process can be a little bit slow to getting things done because maybe you have to go through many people or steps, but the benefits outweigh the harass of it. With bureaucratic control systems roles and job responsibilities are written down and clearly stated, employees are hired based on their skills and knowledge and not because of favoritism or who you know theory, not only that salaries are tied to a pay-grade system not by guessing, companies and organizations cannot escape to pay their taxes, and et cetera.

Bureaucratic organizational structures can have many layers of management levels and positions, from senior executives to regional managers to departmental managers and all the way down to shift supervisors who work alongside front-line employees where authority is centered at the top and information generally flows from the top down. For example; a senior executive may implement a new policy stating that all employees must have all their overtime approved by management before actually working the overtime. Therefore this new policy must be implemented from the level of the senior executive all the way down to the front-line employees.

Bureaucracies are meant to be orderly, fair and highly efficient; therefore, the bureaucratic organization usually would be very organized with a high degree of formality in the way it operates. It will make sure organizational charts exist for every department, decisions would be made through an organized process, and a strict command and control structure would be present at all times.

To understand bureaucratic control system better, let's look at the famous Weber's theory of bureaucratic management on its two essential elements that can help organize the human activity, systematic processes and organized hierarchies necessary to maintain order, maximize efficiency, and eliminate favoritism. The first one basically involves structuring an organization into a hierarchy, or into levels of authority. For example, a vice-president of marketing is below the company's president, but is at the same level as the company's vice president of sales, and above the supervisor of the company's social media department. Each level answers to the level above it, with the ultimate leader of the organization at the top. All this information should be structured on the organizational chart. The second one demands the organization and its members to be governed by clearly defined rational-legal decision-making rules which are policies and procedures that govern how an organization functions. Examples of rational-legal decision-making rules include human resources rules and policies, or the regulations governing who is entitled to maternity leave vacation, and so on.

Bureaucratic control systems are very relevant in today's world; not only common in the public sector, but in the private sector business world as well. So knowing how bureaucratic management works can lead you to a better understanding of how government agencies and large business firms operate, and the importance to have bureaucratic control system established in the workplace.

If you enjoyed this post, feel free to share, comment, and like. I would like to hear from you.

To your success,

Helen Majaga

Helen Majaga is a founder of Helen Majaga International, Live to Your Full Potential Podcast & YouCount Magazine. She is an Entrepreneur, Speaker, a passionate Writer & Author. Helen writes and speaks about personal improvement, career, and business success psychology, leadership, productivity, goals, proven strategies, creativity, Christian faith, and more. View all posts by Helen Majaga

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Importance of Bureaucratic Control System in the Workplace

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Just because you are in as self-management or self-designing team it doesn't mean you have all authority to do things whatever you want. There is always going to be someone with higher authority you need to report to. This is where bureaucratic control system comes to play into place.

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This quote sums up what I think is one of the most important qualities a leader should have.

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In Module 7, I learned about leadership. This video shows how laughter can improve your leadership skills.

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Laughter & Leadership: How Humor Can Make You a Better Leader - Project Management Training

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I found this funny comic strip about HR and thought it was appropriate.

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This article tells the reader what HR is beyond the hiring and firing process.

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Human Resource Management (HRM) is the function within an organization that focuses on the recruitment of, management of, and providing direction and guidance for the people who work in an organization. As you can imagine, all of the processes and programs that are touched by people are part of the HR kingdom. The workplace processes that interact with customers and potential employees are also components in the Human Resource (HR) world.

HR staff members are partially responsible for ensuring that the organization has an overall mission, vision, and values that are shared and provide an overarching reason for employees to want to work for their organization. These elements are inspirational and help employees feel as if they are part of something that is bigger than themselves.

Additional activities sponsored by HR management can include employee and community outreach. They are frequent mentors and members of employee teams that address philanthropic giving, employee engagement activities, and events that involve employee families.

HRM functions are also performed by line managers who are directly responsible for the engagement, contribution, and productivity of their reporting staff members. In a fully integrated talent management system, the managers play a significant role in and take ownership responsibility for the recruitment process. They are also responsible for the ongoing development of and retention of superior employees.

Organizations also perform HRM functions and tasks by outsourcing various components to outside suppliers and vendors. The tasks that are most frequently outsourced are those that take HR time and energy away from the HR activities that provide the most strategic value to the company.

This outsourcing most frequently involves payroll functions, but vendors and external consultants can help an organization with HRM in many ways. Specifically, many HR departments outsource background checking, benefits administration, training such as sexual harassment training, temporary staffing, and the production of employee handbooks, policy manuals, and affirmative action plans.

HRM is the organizational function that deals with or provides leadership and advice for dealing with all issues related to the people in an organization. HRM, as such, deals with compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. The HRM function is now expected to add value to the strategic utilization of employees and to ensure that employee programs recommended and implemented impact the business in positive measurable ways.

Gone are the days when HR staff received direction from the executive team as to their priorities and needs. HR is now expected to sit at the executive table and recommend processes, approaches, and business solutions that improve the ability of the organization's people to effectively contribute.

It is difficult to underestimate the importance of an effective, modern HRM function within an organization. An employee who retired from HRM twenty years ago would not recognize the competence and capability of the best HRM organizations today. You can choose to move your HRM function out of the dark days and into the light. Organizations that do-are best served.

Here are additional resources offered on this HR site that will help you expand your knowledge and thinking about the use of HR within your organization.

These resources tell you more about how to explore a career in HR and how to find a job in HR. Interested? Keep reading.

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Beyond Hiring and Firing: What Is Human Resource Management?

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Human Resource Management (HRM) is the function within an organization that focuses on the recruitment of, management of, and providing direction and guidance for the people who work in an organization. As you can imagine, all of the processes and programs that are touched by people are part of the HR kingdom.

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This model shows an example of the matrix structure, which is another one of the organizational structures I learned about in Module 5.

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This is hierarchy chart of individuals gives a sneak peek into what I learned about organizational structures.

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This blog post goes into depth of the SWOT strategy. This blog post goes perfectly with what I learned about the SWOT analysis in module 4.

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What Is a SWOT Analysis and How to Do it Right in 2021 (With Examples)

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A SWOT Analysis is a simple, powerful tool to define your Strengths, Weaknesses, Opportunities, and Threats. Here’s how to use SWOT correctly.

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A chart that describes the ins and outs of the SWOT analysis, which is one of the organizational charts I learned about in module 4.

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Here is an article about US Regional Agreements. I learned about trade agreement in module 3 and this article is talking about what US trade agreements does to foreign countries that trade with us.

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Regional trade agreements are between countries in a specific region. The most powerful are those that encompass a few countries covering a wide and contiguous geographic area. These include the North Atlantic Free Trade Agreement and the European Union. That's usually because the countries involved share similar history, culture, and economic goals. Regional trade agreements are hard to create and enforce when the countries are very diverse. An example of this is the Association of Southeast Asian Nations, whose countries share the Pacific Ocean as a common denominator.

NAFTA or North American Free Trade Agreement: NAFTA is the world's largest free trade area. It covers Canada, the United States, and Mexico. As of January 1, 2008, all tariffs between the three countries were eliminated. Between 1993 and 2009, trade tripled from $297 billion to $1.6 trillion. An in-depth look into the facts about NAFTA can reveal how the trade agreement has affected the three participating nations.

Trans-Pacific Partnership: The TPP would have replaced NAFTA as the world's largest agreement. In 2017, President Trump withdrew the United States from the agreement. It would have been between the United States and 11 other the countries bordering the Pacific. These are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Leaders of these countries signed the agreement in 2016. It was in process of being ratified by the members' legislatures. Its goal is to enhance trade and investment. It promotes innovation, economic growth, and development. It supports job creation and retention. The TPP requires compatible regulations and support of small businesses. It's in keeping with the work of the Asia-Pacific Economic Cooperation Forum.

Trump's decision to withdraw from the Trans-Pacific Partnership could pave the way for China's membership. It could shift the balance of power in Asia.

Transatlantic Trade and Investment Partnership: The Transatlantic Trade and Investment Partnership would link two of the world's largest economies, the United States and the EU. Once ratified, it would replace NAFTA and the TPP as the world's largest free trade area. It would apply to over one-third of the world's total economic output. The biggest obstacle is agri-business in both the United States and EU. Both trading partners heavily subsidize their food industries. The EU prohibits the use of genetically modified organisms and the addition of antibiotics and hormones in animals raised for food. These practices are common in U.S. agribusiness. If these obstacles can be overcome, ratification of the TTIP will boost U.S. economic power.

FTAA or Free Trade Area of the Americas: Since the Reagan Administration, the United States has been trying to get a free trade agreement with all the countries of North, Central, and South America, as well as the Caribbean. At first, 34 countries agreed to negotiate an agreement that would expand NAFTA's success throughout the hemisphere. But by 2005, the effort had failed. Many South American countries, like Brazil, Venezuela, and Ecuador were afraid that eliminating tariffs would allow U.S.-subsidized agribusiness to put their local farmers out of work and force their people to work for U.S. corporations. Other countries went on to enter into bilateral agreements with the United States, including Chile, Colombia, Panama, Peru, and Uruguay. Since the FTAA was abandoned in 2004, a much smaller trade agreement resulted between the United States and six other countries.

CAFTA-DR or Central American-Dominican Republic Free Trade Agreement: CAFTA was signed on August 5, 2004, by the United States and six countries. These nations were Costa Rica, Dominican Republic, Guatemala, Honduras, Nicaragua, and El Salvador. It eliminated tariffs on more than 80 percent of U.S. exports. By 2008, these exports grew to $26.3 billion. It opened U.S. trade restrictions for Central American sugar, textiles, and apparel imports. That reduced costs on these products for American consumers. Total trade between the U.S. and CAFTA signatories was $60 billion in 2013.

ASEAN Initiative: ASEAN stands for the Association of Southeast Asian Nations. It includes 10 nations in Southeast Asia. It promotes the economic growth of its member countries to provide a balance of power to China and Japan. Members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. U.S. trade with ASEAN countries grew to $182 billion in 2008. The ASEAN Initiative seeks to establish bilateral trade agreements with all ASEAN members of the WTO. The United States has successfully negotiated agreements with them all, except Laos and Myanmar.

APEC or Asia-Pacific Economic Cooperation: APEC includes countries in Asia and the Americas that border the Pacific Ocean. Its members are Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Taiwan, Thailand, and Vietnam. Its purpose is to increase negotiations between all member nations concerning common trade issues. The APEC economies comprise 44 percent of world trade and 54 percent of global gross domestic product. In 2010, nine of the top markets for the United States were APEC members. They accounted for 60 percent of U.S. exports.

MEFTI - Middle Eastern Trade Initiative: MEFTI works with peaceful Middle Eastern countries to help them attain three goals. First, obtain membership in the World Trade Organization. Second, facilitate bilateral trade agreements. Third, help them enter into Trade and Investment Action Plans that encourages investment. The countries that are seeking membership in the WTO include Algeria, Lebanon, and Yemen. The United States has entered bilateral agreements with Israel, Jordan, Morocco, Bahrain, and Oman.

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What Trade Agreements Do We Have With Our Neighbors?

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Regional trade agreements are between countries in a specific region. The most powerful are those that encompass a few countries covering a wide and contiguous geographic area. These include the North Atlantic Free Trade Agreement and the European Union. That's usually because the countries involved share similar history, culture, and economic goals.

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This article analyzes the in's and out's of Multidomestic Strategy and Global Business Strategy. I learned about Global management in module 3 and this article weighs whether Multidomestic or Global is the way to go for your business.

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When expanding into international markets, companies usually execute one of three business strategies: multidomestic, global or transnational. Some pundits include the international strategy as a fourth strategy, which is no more than a company's domestic strategy applied to international markets.

The two primary international business strategies are multidomestic and global. The transnational strategy is a hybrid strategy that incorporates elements of these two core strategies. The multidomestic strategy is sometimes called the multinational strategy.

When expanding into international markets, companies must decide how much they will adapt their company's organizational structure, product or service offerings and business practices to the political, economic, socio-cultural and technological landscape of the local market.

Companies expanding into international markets using the multidomestic strategy completely immerse their local market business units into the countries where they operate to the extent they appear no different from host country competitors. Companies using the global strategy do the exact opposite: They sell the same products or services in all markets where they operate with minor modifications, if any, to their products or services.

International profit opportunities using the multidomestic strategy are based on achieving economies of scope, whereas the global strategy is about achieving profitability through economies of scale. Microsoft is a company that achieves economies of scope with teams of engineers, technicians and marketers having experience and skills that can be applied to a broad range of software products.

Henry Ford was able to achieve economies of scale and reduce the price of the Model T Ford from $850 in 1908 to less than $300 in 1925 by mass-producing the Model T, which offered "any color you wanted as long as it was black."

The multidomestic strategy is about delegating management and decision-making authority to local host-country business units. Local business unit managers have authority and responsibility to make strategic decisions and market country-specific products or services optimized to satisfy host-country consumer preferences.

The downside to the multidomestic strategy is companies multiply their exposure to political, economic and other risks by the number of countries where they operate.

Yum! Brands, parent company of KFC, Pizza Hut and other fast-food brands, is a multidomestic corporation. Yum! generally uses the same brand names for its stores around the planet, but it adjusts its menu choices to local-market eating habits. Tempura is on KFC's menu in Japan, because the Japanese love tempura.

Centralized, top-down management control and decision-making authority are key components of the global strategy. Companies may make some minor adjustments to product or service offerings to accommodate local-market peculiarities, but the products or services are basically the same. Moreover, global companies generally execute the same marketing and communication strategies wherever they operate.

The global strategy does not have as many local-market risks as the multidomestic strategy. However, companies sacrifice agility in responding to local competitors. This limitation compromises the ability to increase market shares in local markets.

Companies operating in industries requiring huge capital investments that need economies of scale for profitability tend to use the global strategy. These would include manufacturers of high-tech computer and electronic equipment. For example, Cisco Systems sells the same switching and routing equipment in all of its operating markets.

That multidomestic and global strategies are at the opposite ends of the strategic spectrum does not imply an either/or proposition. Small-business operators can expand into global markets by incorporating features of both.

A business can standardize many elements of its marketing campaign, such as its logo and use of the Internet, for digital marketing campaigns. Conversely, it can tailor its products to local-market preferences by outsourcing manufacturing to local-market contract manufacturers.

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Multidomestic Vs. Global Strategic Plans

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When expanding into international markets, companies usually execute one of three business strategies: multidomestic, global or transnational. Some pundits include the international strategy as a fourth strategy, which is no more than a company's domestic strategy applied to international markets. The two primary international business strategies are multidomestic and global.

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I found this video on YouTube and I think it pertains to this module. This is one of my favorite Disney/Pixar films and this video does an in-depth report on how Monsters Inc. represented their own brand of Business Ethics.

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Business Ethics Through Film:  Monsters Inc.

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This picture highlights diversity at its finest and that was what I learned in module 2 about diversity in the work field.

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I chose this image because I thought it was related to what I learned in Module 1. Once again, what I learned about Horizontal and Vertical management played into me choosing this image. One man has a chart representing horizontal management and the other has a chart representing vertical management.

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I found an interesting article about the difference between Vertical and Horizontal businesses. I chose this article because I learned about Vertical and Horizontal Management in Module 1 and this article was relevant to what I learned.

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The Difference Between Vertical & Horizontal Business Organizations

Establishing an effective business organization is one of the most important decisions you will make as the owner of your company. If you make the wrong decision, it will hamper your company's efficiency and productivity, but if you make the right decision, it can steer your company toward long-term success. Two of the most common types of business organizations are vertical and horizontal organizations. Understanding the difference between the two can help you make a choice that best matches the goals of your business.

Tip

The difference between horizontal and vertical organizations is that vertical organizations have a top-down management structure, while horizontal organizations have a flat structure that provides greater employee autonomy.

Vertical Organization Elements

In a vertical organization, your business has a pyramidal top-down structure, with a CEO, president or owner at the top, a middle section of managers and supervisors, and a bottom section of regular employees. As a business owner, you would make all the major decisions about marketing, sales, and customer service standards, then communicate those decisions to your middle management. These managers would then be responsible for telling your employees the work processes that will achieve desired goals. The word "vertical" refers to the fact that the organization works from the top to the bottom, and that employees are not required or expected to contribute to the choices that you make regarding how the company operates.

Horizontal Organization Elements

In a horizontal organization, your business has a flat structure, which means there are very few managers and more authority is granted to rank-and-file employees. This system allows employees to feel empowered, because they can make important decisions without needing approval from a manager. Rather than having to satisfy a manager, employees in a horizontal organization are motivated and driven by company goals, which can improve efficiency and morale.

Difference Between Vertical and Horizontal Business Organizations

One of the main differences between vertical and horizontal business organizations is that in a vertical system, upper-level management issues orders and employees follow those orders without input or objection. In contrast, employees in a horizontal organization are encouraged to make suggestions and offer ideas that can improve workplace processes, and are given the authority to implement changes without having to obtain authorization.

Another difference is that the multiple layers of management can hamper communication in a vertical organization. For example, if a CEO issues an order that employees simply can't execute, it can take weeks before employees tell their managers why they can't achieve the order they've been given, and then another week before managers communicate this information back up to the top of the chain. In a horizontal organization, communication flows freely between team members, because there is no rigid hierarchy, and this can boost efficiency and productivity. Employees in a horizontal organization are also more collaborative because they can communicate freely with each other. In a vertical organization, collaboration only occurs when managers schedule meetings with employees.

About the Author

Sampson Quain is an experienced content writer with a wide range of expertise in small business, digital marketing, SEO marketing, SEM marketing, and social media outreach. He has written primarily for the EHow brand of Demand Studios as well as business strategy sites such as Digital Authority.

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The Difference Between Vertical & Horizontal Business Organizations

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Vertical and horizontal organizations can both be used as a way to help your business succeed. The difference between them is that vertical organizations have a top-down management structure, while horizontal organizations have a flat structure that provides greater employee autonomy.