Organizational Model at Kodak - Case Study Example

Running Header: Kodak Student’s Name: Instructor’s Name: Course Code: Date of Submission: Kodak Introduction Since its inception in 1889, Kodak has been in the production of images and photographs to date. The film production company in the United States has for the longest time contributed 90% of its shares to the market by producing film that has been in use for a very long time (Allen 2004). Over the years, Kodak has adopted very many strategies that have ensured that it has continued to grow to what it is today. The strategies have ensured that they have changed and incorporated the best financial and HRM procedures that will translate to sales and company expansion. The journey has not been easy for the company. This is because on several occasions it has recorded heavy losses and stiff competition. It is because of these problems that the company has had the ability to diversify some of the goods and services that are on offer. This includes the introduction of the sale of digital photographs and prints. The entrance of competition from Fuji Film created very many financial headaches for the company. This was despite the fact that Kodak was an acclaimed brand for many people all over the world. The aspect of new products and services offered by Fuji Film proved to be very essential to many consumers. This was especially the case when the aspect of price was brought into the picture. This is one of the reasons as to why the company started recording losses in many areas. It can also be observed that the company has faced challenges from many other companies that create the same goods that they are creating. This means that with the introduction of digital cameras, the aspect of film became redundant. This was also made complex by the introduction of mobile phones that had in built cameras that were very clear. As Kodak ventured into printer formation, they had to consider companies for example HP which had been in the market for long. This did not make the introduction and incorporation of these strategies any easier for the company (Carlson 2002). Organizational Model The organizational model at Kodak is a representation of each and every person that is mandated to carry out certain duties and responsibilities for the company. This includes the CEO and 11 directors. The CEO is tasked with the duty of ensuring that he offers financial, material and emotional direction for the company. This is through the formulation and execution of policies and legislations that are instrumental to the growth of the company. He does this with the help of the 11 directors that work under him. Under the 11 directors, there are very many individuals that work in respective capacities for the benefit of the organization. The company has a Chief Customer Officer, Chief Financial Officer, Chief Information Officer and a Chief Technical Officer. With the help of the director of communication affairs and printing solutions, activities are effectively coordinated in the company (Fey 2000). The company has for the longest time utilized the systems management theory where each and every department is tasked with certain responsibilities. The responsibilities are then effectively coordinated to ensure that the company’s overall objectives are met. This is one of the reasons as to why it has been possible for the activities and duties to be carried out at each and every level. The coordination has ensured that nothing in the company is left out or unattended to. This is one of the advantages of the management theory in place at Kodak (Black 2001). Current Human Resource Problem Human resource is the process of ensuring that the right people are attracted, retained and trained to perform the best that they can in an organization. This is in relation to the analysis of all the factors of employment that are required in each and every organization at every sector of the company’s structures and systems. This is what paves the way for the employees to grow and become profitable thus enabling organizational growth. Any organization that aims to be successful has to ensure that it employs the best HRM practices (Arthur 1994). This is the only way that the organization is going to reduce cases of high staff turnover and inefficiency in terms of operations, supply, demand and overall customer satisfaction. There are very many organizations and companies that have failed as a result of inadequacy in the human resources department. This is due to its incorporation of strategies in its HRM practices that have had no value to the organization and its employees. A good example is that of Kodak which has filed for bankruptcy. When the CEO realized that the company needed to include new strategies in its portfolio, he laid off very many employees. This was without due consideration to their qualifications and input to the company later on. Many film factories were shut down because the company was adopting new strategies. Among all these people that were laid off some were executives that had been with the company for a very long time. It is important to understand the repercussions of laying off many people from the positions that they previously held in the company. This is because if it done without due regard, a vacuum is created in the organization that is hard to fill instantly. It is necessary to create other options for the employees seeing as they have been with the company for a very long time. As has been recorded, the company invested very heavily in technology. Each and every organization should realize that manpower and technology rely and complement each other (Aiman-Smith 2001). The world today creates an environment where it is practically impossible for one to exist without the other. It is not possible for machines or technology to perform without the help of humans. It has also become very impossible for human beings to work without the help of technology. Once Kodak realized that it needed to change strategies, it invested heavily on technology at the expense of human labour. This also acted as a disadvantage for the company in the long run. This is because they had technologies that they could not coordinate effectively to acquire the best results. This is as compared to the employees and how they would have been best placed to deal with what the company demanded for during its restructuring period. Each and every employee in any organization is an asset (Boudreau 1991). This means that, at each and every step, they should be included in the process of development in the organization. Their opinions and insights in many issues can affect the organization positively. The lack of inclusion could also yield very negative results in a company or organization. The 2011 restructuring process at Kodak was not at all inclusive. The management team came up with strategies that they thought would be beneficial to the entire organization. This was without due regard to what the employees thought or what they were recommending. This was also entrenched by the fact that instead of including the employees in the restructuring process, many were fired from the company. This does not strengthen the HRM practices in any organization. This is because they do not show any regard for human resource management practices that will benefit the entire organization. Change is something that should be introduced gradually. The aspect of shock should not be experienced in any organization. This is because it will create financial and emotional shockwaves in an organization and all its structures. Kodak did not take time to analyze the impact of its re-innovation plan then and in near future. It spent a lot of money all at once with the hopes that things in the organization will turn around positively. This means that they used up many of their savings and reserves trying out something totally new. This new thing was not approved and accepted by those that were remaining behind in the organization. Change of any kind should be well planned and coordinated at each and every step in the organization. This will give all the people involved with enough time to realign themselves with the new strategy that is being introduced in the organization (Cappelli 2001). The gradual change should include the creation of models that complement the current HRM practices. This means that the incorporated technology should have people who can operate it for the best results. The management should appraise its employees making them able to operate the machines to ensure adaptability and system cooperation. This is done through staff training where they are encouraged and taught to relate and use the new technologies. Motivation is also crucial at this point. This is to discourage the aspect where many people shy off when embracing new technologies in a company or organization. The fact that new technology has been selected as the way forward in any company; it is not normally the positive end result (Carlson 2002). This means that it is not possible for innovative technology to be embraced as the way to go without the cooperation of the human resource that makes a huge part of the company. Interventions and Justifications The field of human resource states that each organization should have functional leaders. These are the leaders that take time to analyze what is required in an organization and how they are going to go about in its implementation. This means that at Kodak, the bankruptcy report is a sign that things have not been in order for a very long time. It is prudent for the CEO to lead his team out of their current financial mess (Fey 2000). This is with due concern with the delegation of duties to executives who will work with the people in their departments. This people should be qualified people in the area that they are being asked to revitalize. This is to mean that the CEO can never do anything by himself. He needs people to share ideas, work in their departments and complete the duties and responsibilities in those departments. This will then trickle down to entire organization and its current needs and objectives. Staff layoffs are a necessity when there is urgent need to lay them off. The results of laying off staff indicate that one has carried out an independent survey and has concluded that the members of staff being laid off are no longer beneficial to the organization. By 2007, Kodak laid off close to 47,000 members of staff (Allen 2004). Many of them had been with the company for a very long time. They had gathered a lot of experience and exposure in the industry. This shows that the sole action of laying them off was not beneficial to anyone. The introduction of the new system and technologies should have paved the way for in house training. The company should have taken time to identify what needs to be done. After the identification process, they should have taken time to brief the employees on their proposals. This would be fruitful if all employees were given some time to analyze the proposal and see how it would have helped the company. This is because a successful company is one that actually allows its members to engage in active decision making. Employees have the capacity to share what they feel would be best for the company. This translates to high results that will not be one sided. They would be welcome by all the people in the company. It is clear that radical changes in any organization can only report of two observations (Black 2001). There are companies that have radically changed their structures and they have failed miserably, while others have succeeded. It is important to look at the existing structures and identify what changes need to be made and their impact on the organization. It possible to implement radical changes in any organization. This can be done in agreed upon phases that are carefully thought through. This aims to reduce the chances that the changes being introduced would automatically fail. Kodak should adopt a strategy that best works for them. This means that they should not look at their competitors and try to do what they are doing. The structures and area of specialization in any two companies could be very similar. This does not mean that they have the capacity to enforce what the other company is enforcing. This is because there are no two companies that have the same financial plan, trained employees and understanding of the business environment. At some point, the two companies in question will have to concentrate on their own thing. This is as a result of their capacity either financially or independently. Kodak has been producing film for a very long time. Over the years, people have adopted digital photography. For a company that has been around all this years, it should have concentrated on digital photography as their area of specialization (Allen 2004). They should have trained their staff in this area and encouraged them to adopt the strategies that had been laid down. The fact that Kodak decided to venture into creation of printers was not carefully thought through. This is because they did not take into account the existence of the HP brand which has been in the industry way longer. Conclusion In conclusion, HRM practices are essential in each and every organization. There is no organization that aims to achieve anything without the coordination and effort of their workforce. The formation of a strong team is all inclusive. The members of staff in any organization are generally the reflection of what the company is about and where it wants to go in future. In many organizations like Kodak, the strategy to revitalize the company was not ultimately thought through. This is because as they were incorporating the elements of change, they left behind a considerable feature in the process. This feature was their willing employees who would have wanted and worked towards positivity for the company. It is important to note that at each and every point, the employees should be part of change. They should be trained in the event that systems and structures are going to change in the organization. This will ensure that they are better suited to carry out duties and functions even with the new system in effect. Kodak, just like many other companies that have filed for bankruptcy, did not realize the benefits and essence of keeping the employees that they had. This is because they thought they were acquiring new systems that would definitely require new members of staff. This did not turn our right because whatever they were running away from caught up with them. This is one of the reasons as to why they filed for bankruptcy. The success and revitalization is being put on the test once again. This is now after they have received funding to pad themselves as they experience the financial turmoil (Carlson 2002). It is imperative that they learn from their mistakes and ensure that they develop and adopt all inclusive strategies. These are the strategies that will ensure that they have appreciates the strengths of each and every person in the company. This will create avenues for growth and sustainability within the organization. References Aiman-Smith, L, Bauer, TN & Cable, DM 2001,‘Are you attracted? Do you intend to pursue? A recruiting policy-capturing study’, Journal of Business and Psychology, vol. 16, pp. 219- 237. Allen, D, Van Scotter, J & Otondo, R 2004, ‘Recruitment communication media: impact on pre- hire outcomes’, Personnel Psychology, vol. 57, pp. 143-171. Arthur, J 1994, ‘Effects of human resource systems on manufacturing performance and turnover’, Academy of Management Journal, vol. 37, pp. 670–687. Black, SE & Lynch, LM 2001, ‘How to compete: the impact of workplace practices and information technology on productivity’, Review of Economics and Statistics, vol. 83, no. 3, pp. 434-445. Boudreau, JW & Berman, RL 1991, ‘Using performance measurement to evaluate strategic human resource decisions: Kodak’s experience with profit sharing’, Human Resource Management, pp. 393-410. Cappelli, P & Neumark, D 2001, ‘Do “high performance” work practices improve establishment- level outcomes’, Industrial and Labor Relations Review, vol. 54, no. 4, pp. 737-777. Carlson, KD, Connerly, ML & Mecham, RL 2002, ‘Recruitment evaluation: the case for assessing the quality of applicants attracted’, Personnel Psychology, vol. 55, pp. 461-490. DeGraff, JE, 2010, "The Changing Environment of Professional HR Associations", Cornell HR Review. Eisenstat, RA 1996, ‘What corporate human resources brings to the picnic: four models for functional management’, Organizational Dynamics, Autumn, pp. 6-14. Fey, CF, Björkman, I & Pavlovskaya, A 2000, ‘The effect of human resource management practices on firm performance in Russia’, International Journal of Human Resource Management, vol. 11, no. 1, pp. 1-18. Gonzalez, M 1997, ‘Synchronized strategies’, Journal of Business Strategy, pp. 9-11. Huselid, M 1995, ‘The impact of human resource management practices on turnover, productivity, and corporate financial performance’, Academy of Management Journal, vol. 38, pp. 635–672. Laabs, JJ 1993, ‘Hewlett Packard’s core values drive hr strategy’, Personnel Journal, December 1993, pp. 38-48. Merkle, JA, 2009, Management and Ideology, University of California Press, California. National Academy of Public Administration, Alliance for Redesigning Government 1998, Creating high performance government organizations: a practical guide for public managers, Jossey-Bass Publishers, San Francisco. Ulrich, D 1996, Human resource champions: the next agenda for adding value and delivering results, Harvard Business School Press, Boston, Massachusetts. Yeung, A, Woolcock, P & Sullivan, J 1996, ‘Identifying and developing HR competencies for the future: keys to sustaining the transformation of HR functions’, Human Resource Planning, pp. 48-58. Appendix Appendix 1-Organizational Structure at Kodak Eastman Kodak   [Modify]       Last update 8 days ago Consumer Electronics (218 org charts) www.kodak.com Print List & Org ChartUpdate History Search the org chart CEO Antonio Perez Director Michael Hawley Director Douglas Lebda Director William Parrett Director Dennis Strigl Director William Hernandez Director Timothy Donahue Director Kyle Legg Director Richard Braddock Director Delano Lewis Director Laura Tyson Director Joel Seligman Customer & Regional Operatio... GO CFO Antoinette McCorvey CIO KV CTO TT Communications & Public Affa... GM Digital Printing Solutions IR Development JS President & COO LQ President & COO PF Consumer & Marketing PJ Administration & Legal PS Human Resources RB Strategy RM Americas JO Sales, Customer & Asia Pacif... SG Accounting & Control ES Treasurer WL Intellectual Property TL Consumer Inkjet Systems ST Digital Cameras & Accessorie... SD Digital Imaging Systems & Cu... MM Internet & Software Services... VC Growth & Consumer Digital Im... JB Printing Plates, Graphic Com... DM Retail Systems, Consumer Dig... NZ Imaging, Film, Photofinishin... KS Digital & Functional Printing DE Enterprise Services & Soluti... DK Graphics & Commercial Film BK Assistant Secretary SW Diversity & Community Affairs AM Strategic Account & New Busi... MK Appendix 2-Kodak Files for Bankruptcy Eastman Kodak files for bankruptcy protection Kodak's Philip Cullimore says the company has already begun transforming itself. Continue reading the main story Related Stories Your Kodak moments Snapshot of Kodak hits and misses Five ways the digital camera changed us Eastman Kodak, the company that invented the hand-held camera, has filed for bankruptcy protection. The move gives the company time to reorganise itself without facing its creditors, and Kodak said that it would mean business as normal for customers. The company has recently moved away from cameras to focus on making printers, to try to stem its losses. The 133-year-old firm has struggled to keep up with competitors who were quicker to adapt to the digital era. "Kodak made all its money from selling film, then the digital camera came along and now no-one's buying film. It's not like they didn't see it coming. Kodak hesitated because they didn't want to eviscerate their business," said Rupert Goodwins, editor of technology website ZDNet. Announcing the move to seek bankruptcy protection, Antonio Perez, Kodak's chairman and chief executive, said: "The board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak." Continue reading the main story Kodak moments Kodak founder George Eastman produced the first camera film in rolls in 1883 The firm Kodak is set up in 1888 and launches the first consumer camera in 1888 with the slogan: "You press the button, we do the rest" In 1900 Kodak introduces a consumer camera for $1 called the Brownie, which goes on to become a best-seller in America In 1969 a Kodak camera is used during the first Moon landing Kodak claims to have invented the world's first digital camera in 1975. It had a resolution of 0.1 megapixels; the camera was the size of a toaster Your Kodak moments The company said it had already arranged a $950m (£615m) credit facility from Citigroup to keep it going. The bankruptcy protection move by Kodak affects its operations and companies in the US, but the company said its non-US subsidiaries were not included in the move and would continue to operate as usual. Its shares were suspended following the announcement. They last traded at 36 cents per share. Kodak's shares have been in decline over the past decade. It fell out of the Dow Jones Industrial Average of 30 top US companies in 2004. That year, its shares were around $30 each. Transformation Since becoming chief executive, Mr Perez has been responsible for steering Kodak away from its traditional market in cameras to focus on home and commercial printers and he reiterated the hope that its "breakthrough" printing technologies would give it a competitive advantage as it tries to get back on track. The firm said earlier this year that it was pinning its hopes on its printer, software and packaging businesses, with the aim of expanding them to account for 25% of its income by 2013. But some analysts remain to be convinced. "Even though film and developing is a dead business, there is still money to be made in ink and other supplies," technology commentator Larry Magib told BBC World. Continue reading the main story In pictures: Kodak's development "But Hewlett Packard, Canon and Epson have those markets. Kodak does have printers, but it has not been able to succeed in making money from them," he said. The move to seek bankruptcy protection comes after Kodak failed to sell its catalogue of digital imaging patents last year. At the time, Kodak warned that it would run out of cash if it did not find a buyer by the end of 2011. It has struggled as mobile phone manufacturers have introduced increasingly sophisticated cameras on their own devices. This has had a huge impact on the lower end of the digital camera market, which Kodak concentrated on. Kodak is also hoping to make the most of its technology patents involving digital capture, which is used in mobile phones and other portable gadgets. Kodak says these have generated $3bn in revenue since 2003. Rupert Goodwins, ZD Net UK: "They knew what was happening, but they didn't have the guts to move with it" On Wednesday, Kodak launched a lawsuit against Samsung, alleging that certain Samsung tablet devices infringe Kodak's digital imaging technology. The South Korean firm said the claims were "unsubstantiated". It comes a week after Kodak launched a similar lawsuit against HTC and Apple over patents related to digital imaging technology. Reorganisation Former Kodak vice president Don Strickland insists the firm's late entry into the digital market is a key factor in its recent troubles. He claims he left the company in 1993 after he failed to get backing from within the company to release a digital camera. "We developed the world's first consumer digital camera and Kodak could have launched it in 1992. "We could not get approval to launch or sell it because of fear of the cannibalisation of film," he told BBC News. Continue reading the main story Crisis jargon buster Use the dropdown for easy-to-understand explanations of key financial terms: Chapter 11 Chapter 11 The term for bankruptcy protection in the US. It postpones a company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business, for example. Glossary in full Although Kodak was one of the original inventors of digital photography, it failed to keep pace with developments in the market and competitors steadily eroded its share of the market. Since 2003, Kodak has closed down 13 manufacturing plants and cut its workforce by 47,000 and there could be more cuts to come. "Now we must complete the transformation by further addressing our cost structure and effectively monetising non-core IP assets," the Kodak chief executive said on Thursday. Kodak employs 19,000 workers, but it is not known how many may be affected by the reorganisation. In its 1980s heyday, the company employed 145,000 people in locations throughout the world. Mr Strickland believes the firm has little chance of surviving long term. "There will be no more 'Kodak moments' - after 133 years, the company has run its course." Others think it may now be a takeover target. "It is more likely someone will buy them out for their patents, for their intellectual property," technology journalist Kevin Anderson told BBC World. "Google has been on a buying spree lately, buying up companies for patents. I don't think they will be in the market for them [Kodak], but that might be one attractive element for a potential buyer," he said. Read More