Employee Layoffs Essay, Research Paper
Organizational Structure In 1997 McKesson Corporation sold PCS INC. to
Eli Lilly Company. It was a time when all employees were unsure of what
was in store. Were there going to be layoffs, major changes or status quo?
As it turned out, there were few changes that impacted the day to day life of
the employees. In 1998 PCS was once again sold to Rite Aid Corporation.
We are about to embark on this activity again as Advance Paradigm has
purchased us from Rite Aid Corporation. Once the sale is complete, we will
become Advanced PCS. PCS employees are familiar with organizational
change. What type of organizational structure will work? I have been asked
this many times during my tenure at PCS. I will explain whether benefits or
difficulties will arise from each type. I believe there are various types in use
throughout PCS today. The focus of my paper will be in my department,
Materials Management, Corporate Mail Services. An organizational network
is a system of interconnected or cooperating individuals according to Gary
Dessler in Management, Leading People and Organizations in the 21st
Century. PCS utilizes both formal and informal networks throughout the
organization. In my department an informal network exists between the small
groups. There are three managers, one assistant vice president, a vice
president and several analysts and buyers. Analysts and buyers interact when
keeping the data of the system in sync. We don’t have any formal relationship
to each other but are dependent on the expertise of each. Within the data
group, there is a formal network made up of a manager and two analysts.
Purchasing has a manager and several buyers. These two groups are very
formal and structured. Problems are reported to the manager and passed up
the line if necessary. Throughout PCS there is an electronic network. The
company is spread out over four local campuses and nine regional offices.
E-mail is the communication method of choice. The sales group is electronic
and meets formally each quarter with the sales managers and directors. Even
within my department, for documentation, e-mail is the communication
method. Prior to working in Materials Management, the group I work with
would be defined as team based and boundaryless. The person in charge
wanted to build a self managed team that would function without boundaries.
Our team, RECAP III, was made up of employees from each department in
the company. Gary Dessler defines boundaryless as having fewer boundaries
than traditional structural mechanisms. Standard operating procedures and
process flows began to be created both for the core business and RECAP III
as well. What PCS needed to do was to ?build the organization around the
new software and the software around the customer? (Executive Edge, 1996,
p. 2). These changes were to be made to meet the needs of the customer,
based on what they told us what they wanted. I have tried to bring this
strategy to Materials Management. I began creating Standard Operating
Procedures. For this department having been together only one year, there
was little to no documentation. I have looked for ways to make the workflow
easier and communication easier. ?You must lay a proper groundwork,
involving those who will be affected by the change and obtain commitment
from the relevant stakeholders? (Pfeiffer & Company, 1993, p. 5). Also
involved in Materials Management are employees in two mail order facilities
who have been independent. The corporate group was taking back control of
all data. People were being locked out of the system. Inquiry was the rule of
the day. Standardization began and everyone as beginning to see this was for
the best. PCS uses many different types of organizational structures yet we
are lead by the traditional. The CEO passes the company plans, goals and
strategy to all employees. The company also respects the voice of the
employee. Every three years all employees complete an independent survey
and then the results are passed back to us. I believe every company at one
time or another uses all types of organizational structures. In many
occupations I?ve had during my working life, I have been involved in each of
them. My hope is to someday take the knowledge I?ve gained and use it
wisely in an organization of my own. References Dessler,Gary. (1998).
Management: leading people and organizations in the 21st century.
Jersey: Prentice Hall. Harai, O., & Imarato, N. (1996). An Interview with
Orin Harari and Nicholas Imparato, Authors of ?Jumping the Curve?
Creating a Great Organization [Online]. Available:
http://ww.smartbiz.com.html Nolan, T., Goodstein, L. & Pfeiffer, J. (1993).
Changing Organizations and People [Online]. Available: