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This YouTube video discusses Total Quality Management (TQM) which focuses on teamwork, customer satisfaction, etc.
Its 5 step benchmarking progress includes: plan, find, collect, analyze, & improve. TQM's an effort that is organization-wide to infuse quality and continuously improve.

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Here we are given examples of the organizations performance management. It is a manager's responsibility to monitor the company's operations and provide feedback if it fails to get back on track. They can do this by using the SWOT Analysis to see all the companies strengths, weaknesses, and where they must improve to see what changes need to be made. Evaluating not only the organization but the employees' performance is an important step for the manager.

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Organizational performance management is the process of making sure that your company resources are being properly used in pursuit of company goals. The concept of performance management is commonly applied to employee development. The managerial and executive staff also need to develop a monitoring system that charts the progress of the company and determine when changes in policy or procedure need to be made.

Overhead Costs

One element that goes into increasing company profits is lowering overhead costs. Overhead includes facility charges such as rent, utilities and maintenance along with personnel costs and office supplies. An example of organizational performance management in this instance would be a program to reduce overhead costs by cutting down on utilities costs. The company would bring in an energy consultant and develop a strategy to lower company energy costs within one year. The company would then monitor the progress of the energy cost reduction over the course of a year to make sure that the goals of the program are being met.

Profit Margin

Implementing an ongoing organizational performance management program to raise profit can work in different ways. Additional profit can be generated by an increase in sales, so the company would develop a plan to increase sales and monitor the plan's progress. Profits can also be increased by lowering the cost of manufacturing and shipping products to clients. For example, the "lean workflow" process helps companies to re-evaluate their manufacturing methods and develop more cost-efficient systems. The lean system itself can be said to be a performance management system designed to improve productivity while reducing inefficiency.

SWOT Analysis

Some organizational performance management systems take a look at the way your company is using its resources to compete in the marketplace. A SWOT analysis is a report that discusses the strengths and weaknesses of your organization, the opportunities your company has in front of you and the threats to success that you face. A SWOT analysis can be done on a specific marketing plan, or it can be performed on the overall company performance. Your company would use a SWOT analysis to determine what changes need to be made to be more competitive, establish performance guidelines to measure the success or failure of those changes and then make the changes to your company that the SWOT analysis suggests.

The growth of your company should be carefully planned and monitored. Organizational performance management plays a huge role in making sure that your company is able to sustain planned growth. It is also necessary in assisting your company in accepting unexpected success and growth. Examples of growth factor performance management in your company include monitoring quarterly unit sales, planning the expansion of the company into new geographic markets and new product introduction.

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Examples of Organizational Performance Management. Organizational performance management is the process of making sure that your company resources are being properly used in pursuit of company goals. The concept of performance management is commonly applied to employee development. The managerial and executive staff ...

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In this reading we see how managers can uplift their employees who have lost motivation. Most people have lost their motivation, especially at jobs, some point in their career. It is important that managers see this and find ways to make their employees feel valued and have a sense of belonging within the company. Employees must feel safe and have a purpose to see any growth or progress within the company. Managers can help create motivation by making incentives; for example, giving employees prizes or a raise if they reach their sale quota for the month, giving company luncheons or being able to leave earlier that day can change their employees' mood drastically and give them reasons to work harder towards their job.

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As humans we want to feel motivated and to find meaning in the things that we do. It's a part of our biology. In fact, there's a part of our brains called the seeking system that creates the natural impulses to learn new skills and take on challenging but meaningful tasks. When we follow these urges, we receive a jolt of dopamine, a neurotransmitter linked to motivation and pleasure, which make us want to engage in these activities even more. And, when our seeking systems are activated, we feel more motivated, purposeful, and zestful. We feel more alive. Exploring, experimenting, learning: this is the way we're supposed to live and work. The problem is, too many workers aren't able to partake in these activities because the way our organizations are run is preventing them from doing so. To help employees become more motivated, leaders need to work on three areas: making employees feel comfortable about expressing themselves, creating an environment in which experimentation is valued, and helping employees feel a sense of purpose.

At some point, every leader has dealt with a person - or, worse, a group of people - who has lost motivation. It's frustrating, isn't it? As much as we've been there ourselves, sometimes it's hard to sympathize with others who are disengaged from work and unproductive as a result. Sometimes, we view their unhappiness as a bug in their mental makeup - and, therefore, we think they should be able to suck it up and snap out of it.

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Why People Lose Motivation - and What Managers Can Do to Help

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As humans we want to feel motivated and to find meaning in the things that we do. It's a part of our biology. In fact, there's a part of our brains called the seeking system that creates the natural impulses to learn new skills and take on challenging but meaningful tasks.

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This source states 5 reasons why leadership is important in business. The one I would like to discuss more of is #2 which is, "Boosts Morale"; it goes into detail of how a happy workforce will lead to loyal workers for that business. Using an example from a retail store that I used to work for, no one was happy, workers that had been with the company ranging between 5-10 years all wanted to quit; seeing how corrupt the company slowly turned into, they stressed about work more than they needed to and everyone that had carried the company to be as good as it was in the past had left it. This led to a terrible environment not only for the employees, but the managers that had now worked for this business. The morale was low and no one wanted to work. A majority of the employees only stayed to receive a paycheck. Morale is so valuable in a company and without it, people will just use that company as a stepping stone to get to a better place that they see themselves in the next few years.

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The leadership of a business is felt throughout an organisation and can be the difference between a company's success or failings.

We've put together 5 reasons why strong leadership is important to a business and the benefits of having it in place.

1. Implements vision and values

Most businesses have a vision of where they would like to be in the future and how they would like to be perceived by clients, stakeholders and the wider community. Sometimes both of these can get lost in the day to day activities of keeping a business running, but a strong leader will ensure staff are reminded of an organisation's vision and values and remind them to implement it into their daily actions.

2. Boosts morale

Businesses are nothing without their staff. Constantly recruiting is time consuming and expensive, so boosting morale to help retain staff is important to a business's success. A happy, contented workforce who feel appreciated and involved in a company's journey will be more likely to stay loyal to a business, whilst achieving productivity targets - something which a strong leader will ensure happens. A winning combination for any organisation.

3. Ensures effective communication

When big business decisions are made, such as a new strategy or a change in direction, it is important to ensure that everyone in the company is informed, to reduce the risk of miscommunication. A strong leader will ensure effective communication reaches everyone via emails or staff meetings, and hearing it from a point of authority will diffuse any doubt as to whether the news is true or not.

4. Motivates employees

Strong business leaders will motivate employees, whether this is in monetary form via salaries and bonuses, or the implementation of schemes and reward systems that can benefit all staff. They should also recognise hard work and achievement where necessary, so staff feel appreciated for what they do and motivated to continue the good work.

5. Provides appropriate resources

Having the right tools to do a job effectively is important for every member of staff and a strong leader will make sure these are available for the whole organisation. Doing this will show that they care about colleagues being able to produce quality work and they will make the effort to ensure they always can.
These are just some of the reasons that strong leadership is important in a business. If you'd like to find out more about effective leadership and how Business West can help to ensure you have effective leadership in your organisation, get in touch on 01275 378888 or email us.

What makes a good leader?

Without a strong leader, or leadership team, a business can face a lack of motivation from its staff, low morale and even lost business. Business West can offer grants to help develop your company's leaders.

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5 reasons strong leadership is important in a business

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The leadership of a business is felt throughout an organisation and can be the difference between a company's success or failings. We've put together 5 reasons why strong leadership is important to a business and the benefits of having it in place.

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Workplace communication is when ideas or information are vocally exchanged. This source discusses how our workplace communication is important with the increase of work from home jobs due to the pandemic and how it may be less effective to use communication tools like zoom, Microsoft teams, etc. to effectively communicate with each other. By establishing effective communication practices, it will help the workplace by showing long-term benefits for their business.

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Workplace communication is much more than conversations. It is about the exchange of information through multiple different mediums. Employees share ideas and businesses communicate strategies and goals through communication, both formal and informal.

According to a Workforce poll, approximately 60% of companies do not have a long-term strategy for their internal communications. Reviewing and updating a business's communications strategy will define the direction and emphasis for idea creation and sharing that will drive the future of the business.

Tracking internal communications metrics is a challenge for most communicators. Download our guide to measure comms with confidence. GET THE GUIDE

What is workplace communication?

Workplace communication is the means by which employees exchange information and ideas. Communicating effectively is a critical aspect of getting any job done, whether it occurs in-person or virtually and is part of the internal communications efforts within an organization.

The COVID-19 pandemic was a significant disruptor to everyday business and global communications. At one point in time, approximately half of the United States workforce was working from home according to US Labor Department statistics. Although vaccine availability is allowing some areas and industries to get back to in-person activities the trend of a more hybrid workforce seems like it will be staying around for a while. More than ever, businesses need to focus on managing virtual workplace communications.

What do we mean by effective workplace communication?

Organizations share information and ideas differently. New communication tools like Slack, Zoom, Microsoft Teams, Jell, and Twist streamline messaging across organizations, amongst teams, and between individuals. But what makes the messages sent on these platforms effective or not?

Effective communication is a two-way street. Establishing context as the sender, and choosing the proper medium or channel can be critical. Effective communication should always have a context that forms the setting and necessity for the statement, idea, or question being shared. Setting includes any external circumstances like urgency, opinions, or culture.

A clear context leads to a clear message. Quantified Communications, a business communications advisory firm, found that businesses with approximately 100 employees spend on average 17 hours a week clarifying unclear messages. This translates to an annual cost of approximately $525,000 in lost productivity.

The sender is another important aspect of effective communications. Messages are written based primarily on the medium that they travel through. It's the sender's responsibility to encode the information or idea that they are trying to share so that it can be received.

The medium, or channel, is how the message is communicated, for example verbally, electronically, or on paper. Technology has drastically improved the mediums that we have to communicate across the workplace. Communication channels in this day and age enable us to be constantly connected to each other. Within reason, you can get ahold of just about anyone at any time.

Maximizing connectivity is one of the primary goals of any communication medium. According to the McKinsey Company advisory firm, employee productivity increases 20-25% in organizations where employees are highly connected. Connectivity requires high-performing platforms to facilitate idea sharing and conversations.

The final element to effective communication is the receiver. Receivers decode messages using context and observation to interpret information and create their own thoughts. Receivers provide feedback when they receive information, to confirm both receipt and understanding.

Sifting through data and information can be one of the most difficult aspects of being a receiver. Workplace communication studies by SaneBox have shown that 62% of the emails received by employees are not important. When software company Adobe surveyed over 1,000 Americans working in offices, they found that workers on average spent more than five hours a day checking and answering emails.

Luckily, there are numerous technology solutions that offer stronger communication platforms than email-based communications.

How do you quantify and qualify effective workplace communication?

Once business leaders realize the importance of effective workplace communication, the next natural question that they typically ask is: How do we determine if we are communicating effectively across our organization?

Quantifying and qualifying workplace communication can be difficult for businesses with employees working virtually. Without a physical representation of communication channels and networks, employees often forget who they are supposed to be communicating with on a daily basis.

Virtual communication tools and applications bring a workforce together by facilitating the number of connections. Every workplace is different, but across a business functional area or an organization, everyone should be able to connect with each other.

Communication between two or more people happens across a channel. The Communications Management section of the Project Management Book of Knowledge, written by the Project Management Institute, defines communication management as, "the key to project control, communications management provides the vital project integrity required to provide an information lifeline among all members of the project team".

Over the last 20 years, time spent on workplace collaboration and communication has increased by 50% or more. The increase in the quantity of communication must be paired with quality communication in order to be effective. This key tradeoff between information quantity and quality is critical to developing a communication platform in which employees are better off from the information and messaging that they receive from their employer.

How important is communication for your company?

Data has shown that employees with functioning communication networks in a work-from-home setting are more productive, have greater work-life balance, and have overall better mental health. Proper workplace communication increases productivity and creativity, and there are multiple reasons why a comprehensive communications management plan should be a part of corporate and business strategy.

First and foremost, effective workplace communication builds and maintains relationships across an organization. Relationships are managed by the key interactions that take place every day. Virtual, work-from-home models have created a significant challenge for businesses in managing and building the relationships between their employees.

The first few weeks at a business are critical for building a new employee's expectations and understandings of the work environment and goals of an organization. Even businesses that had perfected the in-person employee onboarding experience struggled to bring new hires into the culture and organization virtually.

Effective workplace communication systems and models are key to solving the difficulties of virtual onboarding by creating an immersive platform and tiered engagement plan to onboard employees in a welcoming and gradual nature.

Innovation also strives for effective communication. According to a Salesforce poll, 86% of employees and executives cite lack of collaboration due to ineffective communication as the main cause for project and product failures across industries. There are numerous collaboration tools that a company can utilize to improve innovation.

The very first thing that companies have to ensure that they get right is providing employees with an information-rich environment to develop their ideas and innovations. Collaboration takes place across business organizations and also between individuals. According to the HR Technologist site, 39% of surveyed employees believed that people in their own organization don't collaborate enough.

Collaboration, and effective communication in general, helps businesses solve problems and survive the difficult times within the business. During times of hardship, effective workplace environments help employees rally around their business leaders.

Improving communication in the workplace

Businesses must identify the cultural and environmental needs of their employees in order to improve workplace communication and to better achieve strategic goals. Effective workplace communication often starts with company leadership. As discovered in an HR Technologist study, 57% of employees surveyed reported not being given clear direction and 69% of managers reported not being comfortable communicating with their employees in general.

Establishing formal and informal communication channels is one of the best ways for a business to improve its workplace communication. Businesses can improve the quality of their communications by empowering managers to communicate effectively and upfront. Formal workplace communication channels are often the best route for managers to convey important company goals and initiatives.

Informal workplace communication channels are also vitally important for daily business operations. Senior management often ignores informal channels in their communications. management plans, but these channels are how 90% of business communication is conducted. Communication platforms are highly effective solutions for facilitating effective informal communication between employees and management.

Informal communication channels are also where businesses need to ensure that there is proper adherence to the company's ethics and values. General principles of ethical communication are truthfulness, accuracy, honesty, and reason. Every company should have its own specific guidelines for what constitutes acceptable behavior and communication in the workplace.

The return on investment for your company

Return on investment is a performance measure used to evaluate the efficiency of an investment or its ability to create qualified positive returns. Management should look at workplace communication as a performance investment, and consistently assess whether their investments into it are paying off. Learn how to measure internal communications.

The cost of poor workplace communication is well documented. David Grossman reported in "The Cost of Poor Communications" that a survey of 400 companies with 100,000 employees each cited an average loss per company of $62.4 million per year because of inadequate communication to and between employees.

Businesses that invest in workplace communication effectively often see dividends in their bottom line. According to a report by global risk-management and advisory company Willis Tower Watson, companies with effective communication practices generate 47% higher total returns to shareholders compared to organizations with poor communication.

The intangible benefits of investing in and establishing effective workplace communication can even outweigh the tangible benefits for the long-term strength of a business. Effective communication leads to healthier work culture and satisfied employees who deliver their best level of work and stick around longer with a business. Employees spend 40% of their lives at work, so it is important that they can effectively communicate while they are there.

As the COVID-19 pandemic has demonstrated for many businesses, within 24 hours the entire nature and physical location of the workforce could go through a drastic change, like transitioning to work-from-home employment. Businesses with strong communication networks and engaged management will be the best suited to react to future challenges.

How to get your leaders to care about employee engagement

We all know how critical employee experience is but how can you prove to the c-suite that the results will be worth the investment? We've compiled real-world advice from business leaders who transformed their digital employee experience (DEX) by gaining executive buy-in at every step. Learn how they leveraged employee data and built support across the company to achieve their goal.

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Workplace communication: It's now more important than ever

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Workplace communication is much more than conversations. It is about the exchange of information through multiple different mediums. Employees share ideas and businesses communicate strategies and goals through communication, both formal and informal. According to a Workforce poll, approximately 60% of companies do not have a long-term strategy for their internal communications.

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This source discusses Human Resource's (HR) importance. The first sentence that is presented in this source is, "Employees are the foundation of every successful business" and I agree completely. Not only are employees encouraged to reach out to their HR department regarding any issues they don't feel comfortable to disclose; they are also involved in recruiting, hiring, and training any new employees that come aboard the workplace. Using my current retail job as an example, I enjoy being able to talk to everyone that are included in my HR department; I mainly spoke to them on a daily basis on the first week or two that I was hired on my job. The department made me feel welcome to always be able to voice my opinions to them in a time of need and like every HR department should be; made it clear that if we were receiving any harassment in the workplace that we are to be vocal and talk to them, or anyone that we would feel comfortable around to make a change.

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Why Human Resource Management Is Important

Employees are the foundation of every successful business. This is why human resource (HR) management is so important.

The HR department performs a wide variety of duties and is responsible for helping employees feel safe, valued and properly supported. Exceptional human resource managementensures that the HR department runs smoothly and continues to evolve over time.

If this sounds interesting to you and you're curious about a career inhuman resource management, read on to learn why it's so valuable in the professional world.

What is Human Resource Management?

The simplest human resource description would be to say it's the department of a company or organization that handles the relationship between employees and leadership.

Human resource management (HRM) is the sector of HR that oversees these departments.

HR covers a number of positions, responsibilities, and aspects of company efficiency and staff well-being-and each area of human resources requires strong leadership from an experienced manager.

Some of the most important responsibilities within the HRM department include:

Hiring and Training New Employees

An HR professional holding a management position is often in charge of recruiting, hiring, and training new employees. This means the HR team is responsible for finding candidates who meet the necessary qualifications for specified positions and fully vetting a company's hires.

Human resource managers are also expected to embrace and promote diversity among staff, orient team members to their new work environment, and ensure healthy interactions between employees and organizational leadership.

But what does a human resource manager do exactly when it comes to hiring and training? Some of the most common tasks for this type of HR manager may include:

Conducting interviews and reading resumes

Performing background checks on applicants

Overseeing or leading training procedures

Implementing new training techniques

Writing job descriptions, posting job listings, and recruiting potential candidates

Making a good impression on behalf of the company (HR is usually the first department candidates will meet)

The bottom line -An HR professional is often the face of the company for potential new employees. Recruitment, hiring, and training policies are supervised and improved upon with the help of HR managers.

Keeping Employees Safe and Happy

A human resource department is also in charge of keeping employees safe, healthy, and satisfied. With proper HR management, workplace policies keep up with necessary protective measures and implementation and provide solutions to issues between team members, avoiding risk for the company and its employees.

Daily duties for an HR manager who specializes in employee relations may include:

Creating workplace safety policies

Ensuring the organization follows federal and state occupational laws

Addressing employee concerns and complaints

Preventing and dismantling harassment or discrimination in the workplace

Managing employee relationships

Facilitating communication between leadership and employees

The bottom line - HR managers are in charge of many duties, but employee well-being should always remain a top priority. As a human resource manager, you'll spend a lot of time speaking to employees, listening to concerns, and managing workplace relationships. The main goal of a successful, strategic HRM should be to ensure the staff feels safe, respected, and heard at all times.

Managing Company Risk

The HR department works with organizational leadership to help manage risk and compliance. Human resource managers should be well-versed in business law, ethics, statistics, and problem-solving in order to help manage their company's risk.

As an HR manager, you may be put in charge of the following risk management responsibilities:

Analyzing statistical risk using company data

Addressing and preventing potential lawsuits

Supervising firing practices

Properly training other managers

Implementing diversity and Title IX training

Protecting the organization's data and upholding privacy for sensitive information

Vetting new hires and improving hiring procedures

The bottom line - Human resource management is intended to protect the company and its employees. As a risk management specialist, you'll help manage your company's risk in a manner that involves statistical analysis, knowledge of business law, and overall improvement of company policies and practices.

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The importance of HR management presents itself in several of the responsibilities and positions that keep a company's employees satisfied. Read on to learn more.

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Teamwork within an organization is very important. Together, a team can share their ideas with each other and approach their advantages and disadvantages with each other to reach a common goal. They can keep each other accountable to get their job done, which works together to improve their professional relationships with each other. In this source it says that, "the team concept also helps build morale and motivation." Working together also helps build a positive environment for each of the employees that are on a specific task together. From personal experience, I have found that working as a team not only gets the job done faster, but helps me interact with employees; we gain a bond that we would not have gained if we hadn't reached a common goal within the organization.

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Working in teams is a common part of the business environment and may be an approach you take as a business owner to achieve certain tasks, fulfill responsibilities or complete special projects. While it can be challenging for different personality types to work together to achieve a common goal, there are benefits for your company and your employees.

One of the main benefits of group work or a team environment is the ability to share ideas with the group. For example, let's say there are several possible approaches to a project, and one of your employees is unsure which is the most efficient way to proceed. Team members can all weigh in with their ideas as well as the advantages and disadvantages of each approach. This type of collaboration benefits the project and gives team members an outlet to bounce around ideas to find the best fit.

Another key advantage of group work in the office is that it can increase efficiency. When a group attacks a project or task, they tend to get more work done than if an individual took on that task without any support. A group approach can also lead to cost savings for your business because it can increase productivity without requiring you to hire more employees. Group work also helps your business meet individual and team goals more quickly because more people are committed to each project.

Working as a team not only helps to showcase people's various strengths, but it can also help to shore up areas of weakness. You and your managers can assign tasks that play to the strengths of each employee. This means that every worker is matched to a job based on skills and talents, helping to create a stronger and more skilled workforce.

When people work together as a team, they not only become more invested in the project, they become more invested in each other as well. Team members support one another and adapt to each other's working styles. The team relationship may result in teamwork approaches even outside of the official team structure, resulting in employees lending a hand on other assignments and sharing ideas or brainstorms to propel one another along to reach personal and professional goals.

The team concept also helps build morale and motivation. When interpersonal relationships flourish, employees tend to feel more loyalty to your company and are more willing to buy into the corporate values and vision that underlie your business.

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While it can be challenging for different personality types to work together, group work and teamwork provide multiple benefits to your business. These include the ability to share ideas, increase workplace efficiency, shore up weak areas in your staff, and improve interpersonal relationships.

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This article discusses the different types of organizational structures. I find this useful as there are diagrams for those that are visual learners like myself. It goes into each organizational structure as well as disadvantages that each one could lead to. From the module reading, these structures are important because it clarifies what it will take to meet the company's goals, how to grow in sales, what it takes to do work, etc. In my personal work experience, I have learned that to work as a team to get the job done. There must be communication within the employees, and the managers or supervisors must work together to ensure that everyone has a steady workflow each day.

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Choosing the best organizational structure for your company, division, or team is a lot like picking out a new car.

At the most basic level, you're always looking for something road-worthy - something that can take you (and your passengers) from point A to point B without a hitch.

But beyond that, there are a lot of options to consider. Automatic or manual? Four-wheel drive or two? Built-in GPS? Leather interior? Flux capacitor? (Only if you're going back in time, of course.)

In the world of organizational structures, the options you have to choose from include things like chain of command (long or short?), span of control (wide or narrow?), and centralization (centralized or decentralized decision-making?), just to name a few.

What's the point of an organizational structure? As a business leader, do you even need one? As I said, org structures help you define at least three key elements of how your business is going to run.

As your company gets bigger, an organizational structure can also be helpful for new employees as they learn who manages what processes at your company.

Then, if you need to pivot or shift your leadership, you can visualize how the work flows would work by adjusting your organizational structure diagrams.

To put it simply, this chart is like a map that simply explains how your company works and how its roles are organized.

Here's what each of those elements means to an organization:

Chain of Command

Your chain of command is how tasks are delegated and work is approved. An org structure allows you to define how many " rungs of the ladder" a particular department or business line should have. In other words, who tells whom to do what? And how are issues, requests, and proposals communicated up and down that ladder?

Span of Control

Your span of control can represent two things: who falls under a manager's, well, management ... and which tasks fall under a department's responsibility.

Centralization

Centralization describes where decisions are ultimately made. Once you've established your chain of command, you'll need to consider which people and departments have a say in each decision. A business can lean toward centralized, where final decisions are made by just one or two entities; or decentralized, where final decisions are made within the team or department in charge of carrying out that decision.

You might not need an org structure right away, but the more products you develop and people you hire, the harder it'll be to lead your company without this crucial diagram.

(To dive deeper into what all of these different organizational structure components are, check out my earlier post, " The 6 Building Blocks of Organizational Structure.")

In this post, we'll explore how you can combine those components to form different types of organizational structures. We'll also highlight the benefits and drawbacks of different structure types so you can evaluate which is the best option for your company, division, or team. Let's dive in.

Mechanistic vs. Organic Organizational Structures

Organizational structures fall on a spectrum, with "mechanistic" at one end and
"organic" at the other.

Take a look at the diagram below. As you'll probably be able to tell, the mechanistic structure represents the traditional, top-down approach to organizational structure, whereas the organic structure represents a more collaborative, flexible approach.

Here's a breakdown of both ends of the structural spectrum, their advantages and disadvantages, and which types of businesses are suited for them.

Mechanistic Structure

Mechanistic structures, also called bureaucratic structures, are known for having narrow spans of control, as well as high centralization, specialization, and formalization. They're also quite rigid in what specific departments are designed and permitted to do for the company.

This organizational structure is much more formal than organic structure, using specific standards and practices to govern every decision the business makes. And while this model does hold staff more accountable for their work, it can become a hindrance to the creativity and agility the organization needs to keep up with random changes in its market.

As daunting and inflexible as mechanistic structure sounds, the chain of command, whether long or short, is always clear under this model. As a company grows, it needs to make sure everyone (and every team) knows what's expected of them. Teams collaborating with other teams as needed might help get a business off the ground in its early stages, but sustaining that growth - with more people and projects to keep track of - will eventually require some policymaking. In other words, keep mechanistic structure in your back pocket ... you never know when you'll need it.

Organic Structure

Organic structures (also known as "flat" structures) are known for their wide spans of control, decentralization, low specialization, and loose departmentalization. What's that all mean? This model might have multiple teams answering to one person and taking on projects based on their importance and what the team is capable of - rather than what the team is designed to do.

As you can probably tell, this organizational structure is much less formal than mechanistic, and takes a bit of an ad-hoc approach to business needs. This can sometimes make the chain of command, whether long or short, difficult to decipher. And as a result, leaders might give certain projects the green light more quickly but cause confusion in a project's division of labor.

Nonetheless, the flexibility that an organic structure allows for can be extremely helpful to a business that's navigating a fast-moving industry, or simply trying to stabilize itself after a rough quarter. It also empowers employees to try new things and develop as professionals, making the organization's workforce more powerful in the long run. Bottom line? Startups are often perfect for organic structure, since they're simply trying to gain brand recognition and get their wheels off the ground.

Now, let's uncover more specific types of organizational structures, most of which fall on the more traditional, mechanistic side of the spectrum.

Depending on the size of a business and its goals, the organizational structure of the team will vary. Each type has its advantages and disadvantages; however, there is a universal benefit to establishing a clear organizational structure. It helps employees understand their role within a company, which enables them to manage expectations and goals.

A business needs to have an organizational structure in place to be successful. There are several types of organizational structures commonly used by companies, nine of which we expand upon below.

1. Functional Organizational Structure

One of the most common types of organizational structures, the functional structure departmentalizes an organization based on common job functions.

An organization with a functional org structure, for instance, would group all of the marketers together in one department, group all of the salespeople together in a separate department, and group all of the customer service people together in a third department.

The functional structure allows for a high degree of specialization for employees, and is easily scalable should the organization grow. Also this structure is mechanistic in nature - which has the potential to inhibit an employee's growth - putting staff in skill-based departments can still allow them to delve deep into their field and find out what they're good at.
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Disadvantages

Functional structure also has the potential to create barriers between different functions - and it can be inefficient if the organization has a variety of different products or target markets. The barriers created between departments can also limit peoples' knowledge of and communication with other departments, especially those that depend on other departments to succeed.

Advantages

Functional organization increases efficiency, provides stability, and boosts accountability. It allows departments - with employees who share similar skills and knowledge - to focus on their specialized tasks within their respective fields. Because the roles and responsibilities of this organizational structure example rarely change, department employees can consistently work on similar assignments and hone their skills.

The fixed structure of functional organization also operates through management. It provides employees with a chain of command. It guides communication between the team and keeps the team accountable.

2. Product-Based Divisional Structure

A divisional organizational structure is comprised of multiple, smaller functional structures (i.e. each division within a divisional structure can have its own marketing team, its own sales team, and so on). In this case - a product-based divisional structure - each division within the organization is dedicated to a particular product line.

This type of structure is ideal for organizations with multiple products and can help shorten product development cycles. This allows small businesses to go to market with new offerings fast.
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Disadvantages

It can be difficult to scale under a product-based divisional structure, and the organization could end up with duplicate resources as different divisions strive to develop new offerings.

Advantages

Companies and their employees can experience the benefits of the product-based divisional structure. If one division performs poorly, this does not automatically translate across the organization. Because of their separation, divisions may flourish (or fail) concurrently. This system allows companies to mitigate risk.

3. Market-Based Divisional Structure

Another variety of the divisional organizational structure is the market-based structure, wherein the divisions of an organization are based around markets, industries, or customer types.

The market-based structure is ideal for an organization that has products or services that are unique to specific market segments, and is particularly effective if that organization has advanced knowledge of those segments. This organizational structure also keeps the business constantly aware of demand changes among its different audience segments.
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Disadvantages

Too much autonomy within each market-based team can lead to divisions developing systems that are incompatible with one another. Divisions might also end up inadvertently duplicating activities that other divisions are already handling.

Advantages

Because this organizational structure focuses on specific market segments, it provides each division with autonomy. The divisions work separately, which allows employees to work independently and enables them to focus on the needs of their particular industry.

4. Geographical Divisional Structure

The geographical organizational structure establishes its divisions based on - you guessed it - geography. More specifically, the divisions of a geographical structure can include territories, regions, or districts.

This type of structure is best-suited to organizations that need to be near sources of supply and/or customers (e.g. for deliveries or for on-site support). It also brings together many forms of business expertise, allowing each geographical division to make decisions from more diverse points of view.
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Disadvantages

The main downside of a geographical org structure: It can be easy for decision- making to become decentralized, as geographic divisions (which can be hundreds, if not thousands of miles away from corporate headquarters) often have a great deal of autonomy. And when you have more than one marketing department - one for each region - you run the risk of creating campaigns that compete with (and weaken) other divisions across your digital channels.

Advantages

Geographical divisions allow companies the advantage of catering to a specific customer. Based on the differences in language, culture, and customs one would find across the world, companies cannot necessarily expect the same operations to work in different locations. Not only does it allow organizations to tailor their approach based on geography, but it allows the division to react quickly and efficiently to any geographical market changes.

5. Process-Based Structure

Process-based organizational structures are designed around the end-to-end flow of different processes, such as "Research & Development," "Customer Acquisition," and "Order Fulfillment." Unlike a strictly functional structure, a process-based structure considers not only the activities employees perform, but also how those different activities interact with one another.

In order to fully understand the diagram below, you need to look at it from left to right: The customer acquisition process can't start until you have a fully developed product to sell. By the same token, the order fulfillment process can't start until customers have been acquired and there are product orders to fill.

Process-based organizational structure is ideal for improving the speed and efficiency of a business, and is best-suited for those in rapidly changing industries, as it is easily adaptable.
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Disadvantages

Similar to a few other structures on this list, process-based structure can erect barriers between the different process groups. This leads to problems communicating and handing off work to other teams and employees.

Advantages

As mentioned, one of the most significant benefits of the process-based structure is that it increases efficiency and speed. If Department B cannot start its processes until Department A finishes, this compels Department A to work promptly and proficiently. This organizational model also promotes intradepartmental (within the department) and interdepartmental (across multiple departments) teamwork.

6. Matrix Structure

Unlike the other structures we've looked at so far, a matrix organizational structure doesn't follow the traditional, hierarchical model. Instead, all employees (represented by the green boxes) have dual reporting relationships. Typically, there is a functional reporting line (shown in blue) as well as a product- based reporting line (shown in yellow).

When looking at a matrix structure org chart, solid lines represent strong, direct-reporting relationships, whereas dotted lines indicate that the relationship is secondary, or not as strong. In our example below, it's clear that functional reporting takes precedence over product-based reporting.

The main appeal of the matrix structure is that it can provide both flexibility and more balanced decision-making (as there are two chains of command instead of just one). Having a single project overseen by more than one business line also creates opportunities for these business lines to share resources and communicate more openly with each other - things they might not otherwise be able to do regularly.
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Disadvantages

The primary pitfall of the matrix organizational structure? Complexity. The more layers of approval employees have to go through, the more confused they can be about who they're supposed to answer to. This confusion can ultimately cause frustration over who has authority over which decisions and products - and who's responsible for those decisions when things go wrong.

Advantages

An advantage of a matrix structure is that it promotes collaboration and communication. This open line of communication ultimately allows businesses to share resources and allows employees to develop new skills from working with different departments.

7. Circular Structure

While it might appear drastically different from the other organizational structures highlighted in this section, the circular structure still relies on hierarchy, with higher-level employees occupying the inner rings of the circle and lower-level employees occupying the outer rings.

That being said, the leaders or executives in a circular organization aren't seen as sitting atop the organization, sending directives down the chain of command. Instead, they're at the center of the organization, spreading their vision outward.

From an ideological perspective, a circular structure is meant to promote communication and the free flow of information between different parts of the organization. Whereas a traditional structure shows different departments or divisions as occupying individual, semi-autonomous branches, the circular structure depicts all divisions as being part of the same whole.

Disadvantages
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From a practical perspective, the circular structure can be confusing, especially for new employees. Unlike with a more traditional, top-down structure, a circular structure can make it difficult for employees to figure out who they report to and how they're meant to fit into the organization.

Advantages

Most examples of organizational structure have a top-down hierarchy. Alternatively, this type of structure follows an outward flow and contributes to information flowing freely across the business. Its benefits include keeping all employees aligned with the processes and goals of the company and encouraging employees to collaborate between departments.

8. Flat Structure

While a more traditional organizational structure might look more like a pyramid - with multiple tiers of supervisors, managers and directors between staff and leadership, the flat structure limits the levels of management so all staff are only a few steps away from leadership. It also might not always take the form or a pyramid, or any shape for that matter. As we mentioned earlier, It's also a form of the "Organic Structure" we noted above.

This structure is probably one of the most detailed, It's also thought that employees can be more productive in an environment where there's less hierarchy-related pressures. This structure might also make staff feel like the managers they do have are more like equals or team members rather than intimidating superiors.

Disadvantages

If there's a time when teams in a flat organization disagree on something, such as a project, it can be hard to get aligned and back on track without executive decisions from a leader or manager. Because of how complicated the structure's design is, it can be tricky to determine which manager an employee should go to if they need approval or an executive decision for something. So if you do choose to have a flat organization, you should have a clearly marked tier of management or path that employers can refer to when they run into these scenarios.

Advantages

The elimination of middle management employees defines the flat structure type. Its advantages are instantaneous. First, it reduces the expenses of the company. Second, it allows staff to build direct relationships with upper management. And lastly, it shortens the decision-making process.

9. Network Structure

A network structure is often created when one company works with another to share resources - or if your company has multiple locations with different functions and leadership. You might also use this structure to explain your company workflows if much of your staffing or services is outsourced to freelancers or multiple other businesses.

The structure looks nearly the same as the Divisional Structure, shown above. However, instead of offices, it might list outsourced services or satellite locations outside of the office.

If your company doesn't do everything under one roof, this is a great way to show employees or stakeholders how outsourcing of off-site processes work. For example, if an employee needs help from a web developer for a blogging project and the company's web developers are outsourced, the could look at this type of chart and know which office or which person to contact outside of their own work location.

Disadvantages

The shape of the chart can vary based on how many companies or locations you're working with. If it's not kept simple and clear, there may be a lot of confusion if multiple offices or freelancers do similar things. If you do outsource or have multiple office locations, make sure your org chart clearly states where each specific role and job function lies so someone can easily understand your basic company processes.

Advantages

The outsourcing nature of the network structure provides companies with the advantages of lower costs, more focus, and increased flexibility. Outsourcing allows organizations to save money, as they don't have to bear the expense of setting up a department for the same purpose. It also gives companies the flexibility to change their processes and the ability to focus on their core functions.

Why is having an organizational structure important?

Imagine a business that has no organizational structure. Instantly, questions arise about the systems and processes. Who makes the decisions? How are employees held accountable? What are the company's goals? These questions are practically impossible to answer without a functional organizational structure.

Organizational structure is necessary for running a successful business because it improves workflow and efficiency, promotes communication, identifies company needs, and aligns employees with company goals. It directly affects how a business operates daily. When a company establishes a structure that works, the combined efforts of its employees, in conjunction with its systems and processes, allow the company to make better decisions for its future.

Navigating Organizational Structures

Organizational structures are central to a successful team. Employees can move comfortably, confidently, and efficiently when given a clear definition of their role within an organization.

Structure types will vary from business to business, so it's important to remember that these structures are not one size fits all. Every type may not suit your organization, but chances are, one of them will. Use this post to determine which organizational structure works for you, and then it's time for the real work to begin.
Editor's note: This post was originally published in December 2014 and has been updated for comprehensiveness.

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9 Types of Organizational Structure Every Company Should Consider

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Choosing the best organizational structure for your company, division, or team is a lot like picking out a new car. At the most basic level, you're always looking for something road-worthy - something that can take you (and your passengers) from point A to point B without a hitch.

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This article discusses Amazon's SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. Choosing two from each category their SWOT analysis is described in this source as:

- Strengths: strong brand name, brand valuation
- Weaknesses: product flops and failures, declining consumer safety
- Opportunities: self driving technology, investing in smart materials
- Threats: aggressive competition, imitation

Any company can use these analyses as an advantage to further improve their weaknesses or threats of the company. These charts can be used as there is no "perfect" company, but by using these charts, the company can see where to start with building an even better brand name.

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By S. K. Gupta | Last updated: April 18, 2023

Company: Amazon
CEO: Andrew R. Jassy
Year founded: 1994
Headquarter: Seattle,USA
Number of Employees (FY2022): 1,541,000
Type: Public
Ticker Symbol: AMZN
Market Cap (Apr 2023): $1.05 Trillion
Annual Revenue (FY2022): $513.98 Billion
Profit | Net income (FY2022): $-2.72 Billion

Products & Services: Amazon.com | Zappos.com | IMDb | Junglee | Ring | Whole Foods Market | Amazon Web Services (AWS) | Blink | Alexa.com |
Competitors: Alibaba | Netflix | ebay | JD | Costco | Flipkart | Apple's itunes | Walmart | Otto | Tesco | Google Play Store | Target | Home Depot | Walgreens | Staples | Best Buy

Did you know?
When Amazon was started, a bell used to ring at the office after every purchase? Soon enough, this bell had to be shut down because of the high volumes of sales.

An overview of Amazon

Let's discuss this online retail giant in a little depth and understand the company's business scenario with the help of Amazon SWOT analysis.

SWOT Analysis of Amazon

The SWOT analysis of Amazon is given below:

Amazon's Strengths - Internal Strategic Factors

As a global e-commerce giant, Amazon has a strong position and successful brand image in the market.

According to Interbrand's Global Brand Ranking 2022, Amazon is ranked at #3 position (Apple at #1 and Microsoft at #2), with a brand value of $274 Billion.

Amazon caters to a large number of customers for everyday needs at . This has made it a customer-oriented brand.

Amazon frequently brings creative ideas and innovative additions to its product line and service offerings like ambitious drone delivery service and Withings Aura Smart Sleep System . This creates a differentiation from other companies.

Amazon doesn't incur costs in maintaining physical retail stores by selling everything online. With economies of scale, Amazon efficiently controls its costs and lowers its inventory replenishment time. The company has formed numerous strategic alliances with many companies like Evi Technologies, Thalmic Labs, Shoefitr, The Orange Chef etc. It has a strong value chain system which also helps in maintaining a low-cost structure.

Due to the high traffic volume on Amazon's sites, a large number of third-party sellers have joined the platform of Amazon to sell their own merchandises. The data from Fulfillment by Amazon (FBA) reveals that there are more than 2 billion items available from third-party sellers.

8. Go Global and Act Local strategy

This strategy has benefitted Amazon the most. Amazon develops partnerships with local supply chain companies that help it in competing against domestic e-commerce rivals. It understands the local needs and launches its services as per the country's culture.

In India, for example, it has launched a market campaign " Aur Dikhao " to encourage users to search more of its products.

9. Large Number of Acquisitions

10. Key Business Segments

Amazon Marketplace, Amazon Web Services (), and Amazon Prime are 3 key businesses of Amazon which work and support each other. As a whole, they generate massive profits and advantages for the company.

With over $1 Trillion market capitalization and above market leader $513 billion annual revenue, Amazon is truly a in online retail industry.

Amazon uses highly efficient logistics and distribution systems. It even has fixed rates for different delivery time periods. Thus, it executes reliable, secure, and fast delivery of goods and products to the customers.

Amazon is among the first companies in retail to raise its minimum hourly pay to $15. In comparison, pays $12 per hour, pays $11 per hour, and pays $14 per hour.

Amazon's Weaknesses - Internal Strategic Factors

1. Easily Imitable Business Model

Online retail businesses have become quite common in this digital world. So imitating Amazon's business model for rival firms is not so difficult. A few businesses are even giving Amazon a tough time. These include Barnes & Noble, eBay, Netflix, Hulu, and Oyster etc.

In few areas such as India, Amazon has faced losses. It's free shipping to customers can be one of the reasons that expose the risks of losing margins in some markets.

3. Product Flops and Failures

Its Fire Phone's launch in the US was a big failure while its Kindle fire device didn't even grow well.

4. Tax Avoidance Controversy

5. Limited Brick-and-Mortar Presence

Amazon owns very limited physical stores. This sometimes hinders to attract customers buy things which are not sellable on online stores.
6. Poor Workplace Conditions
Vox published negative reports related to employees' treatment and workplace conditions against Amazon. Poor air conditioning, timed bathroom breaks, and constant video surveillance are few of the negative remarks made by the employees. Such things affect the reputation of Amazon.
7. Declining Consumer Safety
As its offerings increase, it is becoming a challenge for Amazon to vet each product and guarantee the highest level of safety. The U.S. Environmental Protection Agency (EPA) recently had to Amazon to remove a wide range of pesticides and unsafe products on its platform.
8. Unfair Use of Third Party Data
Engaging in unfair trade practices undermines trust and increases legal risks. Amazon is facing antitrust charges in the European Union for collecting and using data from third-party to compete against them. If found in violation, Amazon can be fined up to 10% ($28 Billion) of its 2019 annual revenue ($280 Billion).
10. Over-Dependence on Distributors
Relying on distributors exposes Amazon to a wide range of issues. One of its main distributors (German Logistic Group - Deutsche Post DHL) can leverage its position to renegotiate terms.
11. Employees Strike
Strikes can grind Amazon's operations to a halt. In Germany, Amazon due to employees went on strike unsafe working conditions and paralyzed operations in six distribution centers.

12. Amazon Drivers Allege Inhumane Work Conditions

Amazon delivery drivers allege that they're forced to urinate in bottles because of the strict delivery time schedules and constraints. While the company has denied that they don't force their drivers to pee in bottles, some drivers have come forth with complaints.

While the online retail giant denies the allegations , it's also true that the company does impose very strict company policies - which can come with bad consequences for Amazon workers.

Amazon's Opportunities - External Strategic Factors
1. Expansion in Emerging Markets
Amazon can gain the opportunity to penetrate or expand its operations in emerging markets .

By expanding physical stores, Amazon can improve competitiveness against big box retailers and engage customers with the brand.

3. Counterfeit Products

Amazon has the opportunity to improve technological measures and organizational policies to reduce counterfeit sales. One case of counterfeit sales came into light when Amazon sold a fake My Critter Catcher. The product was sold for $1 less than the original product.
4. Backward Integration
Amazon recently acquired California-based self-driving startup for whooping $1 Billion. It can now leverage autonomous technology to exploit the increase in demand for ride-hailing services or use it to improve its delivery network.
6. Launch of Electric Rickshaws in India
Amazon pledges to make a positive impact on the environment. With this vision in mind, Amazon plans to deploy 10,000 electric rickshaws for delivery in India by 2025.

7. Personalized Shopper Service Hits Big

Amazon recently launched its incredible personal shopper service exclusively for Prime members. So, if you have an Amazon Prime subscription, you can opt for the personal shopper experience giving you access to the company's team of professional stylists and fashionistas.

They're going to help you select the best clothing items, accessories, shoes, bags, wallets, etc., that suit your taste. Remember, there are millions of product options available, having a personal team of shoppers is going to be big-time help.

8. Plans to Enter the Crypto Stratosphere

There are a lot of speculations and rumors floating around the crypto ecosystem. However, there have been reports by mainstream media outlets that Amazon does indeed plan to make a move into cryptocurrency, stating that the company has developed a big appetite for digital currencies and blockchain.

9. Launch Of Electric Delivery Vans Across The US

Amazon is revolutionizing the delivery industry with its commitment to sustainability. With the roll-out of over 3,000 custom electric delivery vans packed with cutting-edge safety, design, and navigation features, Amazon is well on its way to achieving its Climate Pledge goal of bringing 100,000 electric vehicles on the road by 2030 with Rivian.

These eco-friendly vans are already making deliveries in over 500 cities and regions across the country, including major metropolises like Boston, Austin, and Chicago, having delivered more than 75M packages to customers in the US.

Amazon is not only dedicated to customer satisfaction but also to protect the planet we all call home.

10. Amazon Luna - Game Anywhere On Devices You Own

Launched first in the US in 2022, the service is now available in Germany, the United Kingdom, and Canada. A broad range of casual games, AAA titles, and retro classics are available here.

11. Launch Of Amazon Clinic - A Virtual Healthcare Service

Amazon has launched the Amazon Clinic - a message-based virtual care service that offers affordable and accessible virtual care options for more than 20 common health conditions, including allergies, acne, and hair loss.

The service helps customers achieve better health at their convenience, whether at home, during dinner, at the grocery store, or on the go.

More acquisitions of companies can increase the company's market share and reduce the competition level. Some of the biggest acquisitions by Amazon are Whole Foods, MGM, Zappos, Twitch, Ring, etc.

13. Amazon Dominates Cloud Market
With a market share of 34%, Amazon Web Services dominates the $200B+ cloud market and has a huge potential to grow because most users prefer the elasticity and security that AWS provides.

Amazon's Threats - External Strategic Factors

have caused a dent in Amazon's brand image. People critically reacted and boycotted Amazon sites in 2010 when they found that it's selling the book "The Pedophile's Guide to Love & Pleasure: a Child-lover's Code of Conduct."

2. Government regulations

Regulations can also threaten the business proceedings of Amazon in some critical countries. Amazon does not ship to Cuba, Iran, North Korea, Sudan, and Syria.

3. Links to exploitative labor

Increasing cybercrime can affect the network security system of the company.

Imitation is simple as many new entrants are coming up in the market usually with the same business model of Amazon.
7. Fake Products 8. Economic Recession
Amazon is not immune to an economic recession . If economic uncertainty worsens, it can impact Amazon's sales.
9. Fake reviews
Amazon has an overwhelming amount of fake reviews, and the problem has worsened in recent times due to the pandemic. Product reviews are a critical indicator of quality and authenticity, and customers rely heavily on reviews to make purchases.

According to the Financial Times investigation, Amazon has deleted over 20,000 fake 5-star reviews from its top UK reviewers.
10. Lawmakers Seek Answers after Tornado Kills Amazon Workers
Democratic lawmakers are on a quest to posted, the company has been heavily criticized regarding seek answers from Amazon after a recent tornado hit an Amazon warehouse in Illinois, killing 6 workers. In a poor worker safety policies and complete disregard for putting emergency countermeasures in place.

11. Federal Trade Commission (FTC) complaint

The Federal Trade Commission (FTC) is set to take legal against Amazon for allegedly violating children's privacy with its Alexa voice assistant. This is part of the agency's ongoing investigation into potential Children's Online Privacy Protection Act violations, which could result in significant financial penalties.

Although COPPA imposes financial penalties of slightly over $50,000 for each violation, the sum can add up quickly as each affected person is considered a separate violation.

Recommendations

SWOT analysis clarifies the current standing of Amazon. Few necessary improvements are needed to be done to administer the lacking and reinforce its market position .

In short, Amazon needs to strengthen its key areas, minimize its weaknesses, avail opportunities, and counteract threats for future progress.

Few recommendations are given below:

1. Consolidate the market dominance by boosting its marketing efforts, promotional activities, and competitive advantages.

2. Strategically deal with global controversies. Amazon needs to resolve tax issues and manage its app's features efficiently to diminish negative publicity in the market.

3. Increase its limited presence through opening physical stores outside the U.S. This will augment brand popularity and market reach.

4. Enhance its strategic entry in developing countries where many growth opportunities are available.

5. Increase competitive edges and enlarge the gap between Amazon and its biggest competitors.

6. Address the issues of counterfeit sales and cybercrimes by upgrading technology measures.

7. Enhance network security systems for the protection of consumers' rights.

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Amazon SWOT 2023 | SWOT analysis of Amazon

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Here is the Amazon SWOT Analysis that highlights the strengths, weaknesses, opportunities and threats, revenue and profits of the retail giant.

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This video describes how managers can overcome biases to make decisions. Companies optimize their operations by developing diligence and rely on evidence and not by being persuaded. Managers must use every data source to calculate the company's activities. Not only will this help in the work-field, but decisions are needed everyday in business and the importance that no bias is shown throughout the decision-making process allows for innovative ideas to be made for the company.

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This website illustrates 5 keys to build a global company. The one that I would like to focus on specifically is the acceptance aspect. "Perhaps the most powerful force in building a global company is the basic human trait to accept and bond with those we have come to know on a more personal basis." This aspect is very important because companies can come in without an idea of the country's cultural differences/beliefs and have difficulties whenever their company enters the country. An example from our reading is Walmart's expansion to Mexico. Walmart modeled their stores in the United States to replicate the ones that were built in Mexico; they soon realized that their large parking lots were a problem. Many of their customers in Mexico rode buses to get to and from the store, which resulted in them having to buy only what they could carry to walk through the large parking lot and back onto their bus. In turn, Walmart found a solution to this problem by adding shuttle buses for customers to get back and forth to the store.

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Several years ago I was invited to participate on an industry association panel, discussing "offshoring," (which means outsourcing globally). Having been a senior leader in a global company for many years, I asked the first very obvious question - Which shore? I proceeded to have some fun in addressing the subject by noting that virtually all developed countries (and of late some not so developed countries) are having similar discussions.

While many educated people can discuss the economic and social impacts on countries of the movement of goods and services around the globe, I would like to address some principles of building and operating a company that spans multiple continents.

Let's begin by getting some of our vocabulary aligned. There is a difference between being an International" company versus a "Global" company. A lot of companies have out-of-country activities that may include sales and procurement - this is an international company, even if it includes a few regional offices. A global company truly operates in various countries providing goods/services both in the native country as well as moving goods/services between countries. A fully functioning global company has a culture and perspective that transcends the locale where it is registered or where its stock is listed.

For those companies desiring to be truly global, the development of an appropriate company culture cannot be left to chance - building the desired culture is a full-time job. A global company is not just a series of regional companies strung together under common ownership. Quickly one can see the need for tailored products/services and the delivery of these to satisfy the local or regional market expectations. But here is the bigger question: How do you build a team of people who recognize the need to serve the local market and effectively operate their assigned area while also being part of the bigger team where they can exchange ideas, get inspiration, and contribute to the advancement of the entire company?

Commitment
Building an effective global culture is not inexpensive, nor is it a one-shot deal. It is a concept to which all senior leadership must commit and make a part of their daily actions. Human Resources can help with well planned global talent assessments, succession planning, and leadership skills development, including expatriate assignments. Cultural sensitivity training and facilitated mixed culture forums can start the process.

Vision
There has to be a Global Vision/Mission statement that is an anchor point for your leaders, irrespective of their home country. It must have longevity, addressing the business purpose and corporate values.

Acceptance
Perhaps the most powerful force in building a global company is the basic human trait to accept and bond with those we have come to know on a more personal basis. Audio/video conferencing is a nice tool once a relationship is established, but it is ineffective for establishing the relationship. To establish the bonds between people and break down inherent nationalistic, cultural and personal biases, people need to travel and partake in the cultures of their colleagues.

Share
Forming a global team to implement a global or regional project (contrasted to a local team doing a global project) brings the best ideas forward and builds strong bonds that benefit the company well beyond the specific project. Functional leadership forums and best-practice sharing sessions break down barriers and drive the best ideas forward. Promoting those individuals that best demonstrate the desired culture will send powerful messages throughout the organization.

Diversity
There is a large WATCH OUT. In the drive for a corporate global culture it is easy to inadvertently paint a picture that the "desired culture" is, for example, American or German or Chinese. To be most effective, a company's global corporate culture must reflect a mix of the best qualities its participants have to offer.

One way to measure your success in building an effective global company culture is to monitor your recruitment results. Are you able to equally attract and retain talented people from all the countries you serve?

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Several years ago I was invited to participate on an industry association panel, discussing "offshoring," (which means outsourcing globally). Having been a senior leader in a global company for many years, I asked the first very obvious question - Which shore?

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This source gives an example of a global corporation, specifically Coca-Cola. In World War II, they would sell their drinks to service members all over the world for five cents. The company now sells their beverages in over 200 countries. The company has seen success in many countries because it never had a standardized view and considers each country on an individual basis. Sometimes Coca-Cola will tweak their products to be sold in some countries to suit their preferences and not offend anyone when offering their products.

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Are you successful locally and considering expanding your business to another country? Or, perhaps you're considering expanding to several other countries. Many CEOs have made the transition successfully. Others have tried and failed. Undoubtedly, the globalization of a business is not a project that every business should do. It's not a project that every business can do. You might be wondering if this strategy is right for you. The best step you can take is to do your due diligence, before you dive in, and ask for help from the experts, who can explain the pros and cons of globalizing your business.

A global corporation, also known as a global company, is coined from the base term 'global', which means all around the world. It makes sense to assume that a global company is a company that does business all over the world. There aren't many companies in the world that can boast of having a business presence in every major country. Actually, they probably can be numbered on the fingers of both hands. The global company definition, therefore, should be a little more lenient to accommodate this fact, which would enable more companies to call themselves global companies. Really, a global company is any company that operates in at least a country other than the country where it originated. Realistically, expanding to even just one additional country is a lot of work and is therefore a great achievement. If you are operating in one country, selling your products around the world and shipping them to customers in countries in Europe while you're in the United States, that doesn't necessarily mean you're a global company. It takes more than that to earn the name a global company.

To be a global company, you need to introduce not only your products, but also your company to people who live in another country. You need to conduct significant research to figure out which country is your best choice for expansion and how to introduce yourself. Probably, you'll have to send some of your employees to that country to speak with people face-to-face and to experience that country on a first-hand basis, before you decide whether the country is right for your company. Once you expand to another country and establish yourself successfully, it's only natural that you will want to try an additional country, and another, and yet another. That is how global companies have started, and now they have a massive list of countries in which they do business.

Businesses only begun to be referred to as global fairly recently. The idea of doing business globally and the characteristics of a global corporation aren't all that new, however. Consider Coca-Cola, which, in 1886, was struggling to get by. By World War II, Coca-Cola was 50 years old and had proudly maintained its price at 5 cents, so as to enable many people to afford the beverage. The company would sell its drink to U.S. soldiers stationed all over the world for 5 cents a bottle, but no more.

Coca-Cola now sells its beverages in more than 200 countries. Not only does the Coca-Cola company sell its popular fizzy drinks such as Coke, Fanta, and Sprite, it also sells some 3,800 other products, including soy-based beverages that have been enriched with vitamins. The Coca-Cola company also sells juices, iced teas, bottled water, and a lot more. One of the reasons why Coca-Cola has seen such monumental success in nearly every country it has established itself is that it never has a standardized view of all countries. Instead, each country is considered on an individual basis. The company will make sure it only provides products that fit with the tastes and culture of the local community. Often, this means that Coca-Cola must create entirely new products to fit a market's demographics, or it may tweak an existing product so that it will appeal to residents in a specific locality. You may have noticed this. Some Coca-Cola products are available in some countries but not in others; this is because those products were created for that country or were tweaked to suit the preferences of a specific country.

There are other global companies, such as the Hilton and Hyatt Hotels, Adobe, Cisco, 3M, Monsanto, and American Express. These companies range from hospitality companies to tech and manufacturing companies. This shows that many types of global corporations exist. Some aren't global in a purely physical sense. Consider internet giants Facebook and Google, which have a presence in virtually every country in the world that has an internet connection. Their presence is more virtual than physical, but it's global.

All contemporary global companies once had been mere startups. Coca-Cola was once a drugstore in Atlanta, Georgia. Google started out as nothing more than a research project undertaken by Larry Page and Sergey Brin. You, too, can become a global company. However, do not rush it. Take it one country at a time.

The United States Small Business Administration points out that only 4 percent of global consumers reside in the U.S. This means that you stand to benefit, in terms of sales revenue, by expanding globally. There are also lots of other benefits to globalizing your corporation:

You can increase your customer base
When you expand your business into another country, your customer base expands along with it. The market in the United States could be full of products just like yours. You may find, however, that this is not the case in another country. That could present an expansion opportunity for your company. What's familiar to your consumers in the U.S. could be fresh to consumers in another country.

You can reduce your operating costs
If the manufacturing or labor costs are lower in another country, expanding to that country enables you to save on your operating costs. This can improve your bottom line. In fact, reducing operating costs are a key reason why many global companies expand.

You don't need to be bogged down by seasonality
If you sell a seasonal product that experiences fluctuating sales at different times of the year, then you can expand to countries that have seasons opposite to those in your base country, enabling you to have high sales figures all year.

You can boost the growth rate of your company
If your company has been growing rapidly in your locale, chances are that this growth may eventually stall, because of market saturation. In that instance, you can expand to another country so you can maintain rapid growth.

You can create new jobs
Expanding into another country involves a lot, such as hiring representatives and employees of your company in the new country, as well as setting up offices and various facilities, and so on. You're likely to employ locals and, in the process, you will create new job opportunities in the country where you are expanding. This helps boost the local economy and it also gives your company a good reputation.

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What Is a Global Corporation?. A global corporation is a business that operates in two or more countries. It also goes by the name "multinational company." Expanding your business globally can offer several advantages over running a strictly domestic company, but operating in multiple countries also poses ...

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As soon as I had graduated from high school, I knew that I wanted to apply for a job. I applied to every company possible that I could think of and out of the dozens of applications, I had received a call from the manager at my local Subway. Little did I know that my three years working for the company would change my work ethic for my next jobs to come. Not only did I have an amazing manager, but his passion and drive is what kept me there for so long. His goal was to build a positive team; he did this by working with his employees, creating fun ways to receive incentives (for example, sell ten dozen cookies during lunch rush then each employee would receive three cookies), and introducing diversity. At this job, we were able to voice our opinions and how we could work as a team to improve. I have nothing but great experiences working for this company and am thankful for my time and experience there.

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Having a diverse workplace is very important. In this Forbes article it goes into detail of introducing diversity in a workplace. It is important in a job to not only work as a team, but make the job enjoyable and as inclusive as possible. A workplace must be a place where employees feel comfortable and able to express their ideas to their managers and not be ashamed to speak up whenever there is an issue.

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Haseeb Tariq is a product marketing expert who helps fix large revenue retention & growth issues.
The diversity of a team is more than just the diversity of its members. It also includes diversity in leadership, diversity of work styles and diversity of backgrounds. I have lived and worked in Asia, Europe and the United States. This has given me a unique understanding of how diversity can affect business performance. I have found that diversity on a team can make it stronger and help eliminate organizational biases between different types of people or backgrounds.

In 2003, Norway passed a law requiring publicly traded and public limited companies to make sure at least 40% of company board members are women. Many now see Norway as an international leader in creating equal opportunity for both genders. I remember when I was at Lund University in Sweden and received an email from a conference organizer asking me to speak. I did not know anything about the conference, but they said in the email that they needed to make sure the speakers were diverse. I was the first person of color to give a keynote at that conference.
Why Team Diversity Is Important
This post discusses how you can create a diverse workplace for your team to increase productivity and improve customer satisfaction by making them feel welcome.
Ways To Increase Diversity And Inclusion In The Workplace
Team diversity can be an instrumental factor in a company's success. Research from McKinsey shows that, in 2019, companies in the top quartile for ethnic and cultural representation on executive teams outperformed those in the fourth quartile by 36% in profitability. In other words, diversity can translate into diversity not only of background but also of ideas that can lead to business results for the team and its customers.
The Benefits Of Having A Diverse Workforce
There are many ways to improve diversity in the workplace, but not all will work for every organization. The first step is to have diversity in leadership. This can help eliminate any racial, gender or other biases on your team. Next, ensure you have diverse work styles by allowing team members to figure out what type of work they are the most passionate about and pursue it. This diversity can create a richer environment to work in.
How To Build A Diverse Team
I believe diversity of background and ideas can lead to innovation that improves results. The same McKinsey research found that "companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have above-average profitability than companies in the fourth quartile - up from 21 percent in 2017."
Understanding Your Own Biases And How They Affect Your Work Environment
Building a diverse team is an ongoing process. You can start to create an inclusive workplace by redefining the hiring process so that it is not weighted toward one region or culture and involves team members from diverse backgrounds. Develop a diverse workplace where all employees feel valued and respected - no matter their background. Encourage team members to be open with you about their thoughts on diversity and race.
To Summarize
Bias can be a difficult topic to discuss. It can be hard for people to admit that they have biases or even acknowledge them without having someone else point out their biases for them. Biases are more than just stereotypes about diversity in the workplace; they also involve how we think and perceive different cultures, genders, races and religions. If you can understand your own biases at work, you can then look at them and see how they may be affecting diversity in the workplace.

It is important to have a diverse workforce to create an environment that values different perspectives and backgrounds. My experience working in a variety of regions has taught me that diversity of opinions, ideas, cultures, genders and ethnicities can help you see things from multiple angles with more clarity.

You may find that employees on the same team as you who come from different backgrounds can offer valuable insight into how your company operates or why certain decisions are made.

These insights could lead to better products or services for your customers. If this sounds like something you want at your workplace, I recommend implementing some of these practical tips so that everyone has equal opportunities, regardless of their background.

Forbes Communications Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies. Do I qualify?

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Council Post: Why And How To Improve Diversity In The Workplace

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Haseeb Tariq is a product marketing expert who helps fix large revenue retention & growth issues. The diversity of a team is more than just the diversity of its members. It also includes diversity in leadership, diversity of work styles and diversity of backgrounds. I have lived and worked in Asia, Europe and the United States.

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To go back to our reading and how important management is to an organization, here is an example of a cartoon regarding poor management. The workers are asking if they should have management look at something and they are unsure if they even have anyone to ask. By the looks of the cartoon, they either do not have anyone to talk to or do not have a manager at all that they can rely on in times of need. Having a manager is very important because there is no way to plan or execute an action without one.

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In this video from The Office, a points system is used to try and get their people to work harder. The workers find that they can pool their points together to make the boss do challenges and in turn makes them work harder.

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How to Get People to Work Harder - The Office US