Organizational structure: Business interview By: Tools For the purpose of carrying out primary research on the subject, the research used an interview guideline and a survey questionnaire. These types of data collection method are essential when dealing with Agency theory and stewardship theory. The survey questionnaire was helpful in retrieving real time view of the CEO by presenting certain statements aimed at understanding CEO’s view on the importance of human factor in the organization. On the other hand, the interview guideline enabled the researcher to gather in-depth detail about the subject.
The data retrieved from the interview guideline was beneficial as it provided the detailed background of the company and its communication systems, the role played by every single employee in the organization. For the purpose of testing the validity of the theories, the research used information retrieved from primary and secondary data. This data were used to support the findings with the help of scientific testing. Assumptions The basic assumptions that underlie the interview with the CEO are: The interviewer should have the permission of the CEO before conducting the interview Objectivity Vs.
subjectivity takes a centered stage when undertaking the interview. Successful qualitative interviews depend on the development of a working relationship with interviewees therefore there is always a power imbalance existing between the interviewer and the interview subject. However, the assumption accompanying this subject is that the interviewer has the higher status and self-worth than the respondent. Analysis Assumption 1: Confidentiality It is ethical that the interviewer should seek permission before undertaking the interview. The research community has for a long time acknowledged the importance of respecting the rights of the research participants and this interview is no exception.
The ultimate responsibility for ethical decisions relating to a research project has traditionally been place with the researcher. In this regard, the right and well-being of the CEO was protected in addition to maintaining the integrity of the profession. The CEO participation to the survey was well informed and he was allowed to sign the informed consent voluntarily. According to Agency Theory; ethical dilemmas comes in all shapes and sizes therefore as much as the interviewer and the CEO consider themselves involved in a process of exposing and resisting hegemonic power arrangements, such actions are limited by secrecy and the methods used to protect it.
Therefore for this research to be transformative the convention of confidentiality must be taken into consideration. Assumption 2: subjectivity and objectivity The responses received from any respondent are characterized by subjectivity. In this regard, the interview will always formulate his/hers questionnaire in such a manner that it meets the objective of the research. For instance, the objective of this survey was to ascertain the importance of human factor to the development of an organization.
As a result the interview was careful in his questioning by asking questions that does not infringe the personality and confidentiality the CEO and the organization in general. The CEO felt comfortable when responding to the questions asked hence no bias in the collected information. Assumption 3: a good relationship between the interviewer and the CEO It is no doubt there should always be a positive relationship between the researcher and the respondents. A sour relationship between the two will prejudice the results of the study because the respondent might give invalid information.
In this regard, the assumption of positive relationship between the interviewer and the CEO was necessary to ensure quality results. Findings The CEO admitted that the theoretical concepts have played a vital role in management of the organization. These theories include Agency theory and stewardship theory. The Agency Theory explains the relationship between principals and agents in business. It is majorly concerned with resolving problems that can exist in agency relationships. According to the CEO the concept of Agency theory has been used in the organization to resolve conflicts that arise due to difference in opinion and attitude.
The workers and the employers of the organization are motivated by self-interest which is one of the assumptions of Agency Theory. As a result of this self-interest, the workers and the employer pursue self-interested objectives that might deviate from each other hence the need for Agency Theory to harmonize these interests. As opposed to Agency Theory, stewardship theory assumes that managers are stewards whose behaviors are geared towards the objectives of their principles.
According to the Stewardship Theory, an organization requires a structure that allows harmonization to be achieved most efficiently between managers and owners. In this regard, the leadership of the firm will be firm if the CEO assumes the role of chairman of the board. This is what happened in Phone Names Inc. The power and authority are concentrated in the CEO hence more clear corporate leadership for both subordinate managers and the corporate board members. According to the CEO, human factor plays a vital role in the growth and development of an organization.
One part that the CEO emphasizes on was proper information systems within the organization. If the communication systems are working properly and the customers are provided with clear information about product usage over the communication with company staff, the satisfaction level of the customer is increased. As a result, the customers prefer to make purchase again and show loyalty towards the company and its products. Motivation of the human capital cannot be assumed if an organization wants to attain greater heights in business. When the staff is not properly motivated they will fall short of perfuming their duties to the customers.
As the customers are not fully satisfied, they may not make purchasing decision and look for alternative provider, who can provide information to the customers effectively. Therefore, the CEO maintains that human capital is the core to the success of any organization. The CEO asserts that as much organization theories are important, they are only for general framework and guidelines. The implementation process is bestowed upon the human capital. In fact, the CEO further stated it is better to apply case studies in organization management because they are real things that happened.
Business ethics It is an interesting fact to see how the law and the society have become more acceptant of criminal liability and attributions of intentionality to corporations. The fall of Enron is clear demonstration of this fact where the company was found liable to many ethical violations when undertaking its business. Some socially irresponsible behaviors by some corporations arose from negligent and reckless behaviors which are unintended; a large amount of corporate behavior can be considered blameless.
The design and structure of an organization is very important in the implementation of code of ethics. If an organization is characterized by a flawed structure, like in the case of Enron, then its employees will fail to oversee the impact of their individual actions combined hence collective fall of the entire organization. In this regard, Phone Names Inc. puts has a proper management system and organization structure that ensures that it adheres to the business code of ethics that is stipulated in the Australian Competition and Consumer Commission.
One area that Phone Names Inc. has flourished is the Corporate Social Responsibility. The organization has organized several environmental management programs to help clean the environment. This forms part of the organization’s mission. 2. CMS, innovation, risk management By adopting efficient business innovation internally, the Phone Names Inc. aims at achieving excellence in overall productivity of the business. Innovation in this case acts as the bridge between customers and Phone Names Inc. , which helps them to link together, share information and discuss desired mutual resultant of operational activities. However, this arises due to good organization structure.
In the absence of good organization structure, Phone Names Inc. will struggle to maintain the decorum of operations and take informed decisions, keeping in view the preferences of the customers. The company always thrives to reduce the amount of risks that it might experience to some extent eliminate others that ought to be eliminated. Reduction of risks comes with many benefits such as; financial bonding, social bonding, structural bonding, customer trust, emotional attachment, attitudinal loyalty, and behavioral loyalty. According to the CEO, teamwork forms the core of reducing risk of the organization.
Teamwork brings together different organizations with diverse opinions and allows them to discuss the challenges facing the organization and how the challenges can be handled. This is in line with both the Agency and Stewardships theories that emphasize on harmonization of interest for the benefits of the organization. The seven principles of risk management used in Phone Names Inc. is shown below: References FLAMHOLTZ, E. (1996). Effective management control: theory and practice. Boston, Kluwer Academic Publishers