Sony – Organizational Behaviour

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This study has been prepared towards the completion of the Organizational Behavior Case Study 1. The study is an rating of the organisation construction implemented in Sony when Howard Stringer joined as CEO in October 2005. The passage Stringer made of Sony’s organisation construction was from Multinational structural to a multidivisional construction. Hence. this passage has been analyzed in item. In decision. it can be seen that the stock portion value has increased during 2005-2007. which means that Howard Stringer. both externally and internally. implemented the organisational structural alteration to everyone’s full satisfaction.

Brief information about Sony Sony is a taking maker of sound. picture. communications. and information engineering merchandises for the consumer and professional markets. Its gesture image. telecasting. computing machine amusement. music and on-line concerns make Sony one of the most comprehensive amusement and engineering companies in the universe. Sony’s organisational alteration When Howard Stringer joined as the CEO of Sony Global Japan he brought new schemes and used those schemes to reconstitute Sony’s organisation to be in-line with these schemes.

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First. Stringer changed Sony’s vision from: “make Sony cool again” to: “make. believe” . Then. he looked at the nucleus competences of the corporation and focused chiefly on the games. electronics. and amusement sector. Stringer so established a growing scheme stating. “Our mark is for the Sony Group to accomplish amalgamate gross revenues of over 8 trillion hankerings and an operating net income border of 6 % by the terminal of financial twelvemonth 2007” .

From the analysis on the organisational construction that Howard Stringer was seeking to implement in 2005 we can see that it was clearly a multi- divisional construction ( see Appendix 1 ) . Sony’s Multidivisional Organizational Structure Sony’s multi-divisional construction is besides known as the “product structure” where the divisional construction groups organisational map into a division. Each division works as an independent subdivision within the company and the divisional construction contains all the necessary resources and maps within it. Each Division has its ain technology. gross revenues and selling sections.

As per the schemes implemented we can see clearly that Stringer had devised different schemes for each nucleus merchandise that Sony was supplying and so he besides divided the company’s organisational construction the same manner ( See Appendix 1 ) . Therefore. we see that the corporation became more level and each division reported to the central office. The organisational construction used in a company is intended to increase productiveness. supply way and motivate employees. Hence. the alteration into a multidivisional organisational construction provided several advantages for Sony in coordination.

Merchandises and services were given the focal point they needed to retain quality. Communication between installations became more effectual. problem-solving were better managed and teamwork was encouraged through this construction. Due to the fact that each section operates as its ain concern. people were non overlooked. and procedures were evaluated and changed for greater effectivity. Furthermore. the multidivisional organisational construction alteration promoted motive among team members because of the performance/reward connexion.

Therefore. this construction made it easy for the leading in the organisation to keep acute inadvertence and wages those who perform good. Thus. Sony’s employees encouraged this alteration. Besides. Sony client services provided to clients run into their demands more suitably as leading and employees worked more closely with clients. Which resulted increased squad member trueness. dedication and most significantly satisfaction. However. there were some hazards involved when Sony changed its organisational construction. Such as ; * Conflicts could happen between divisions.

However. this could hold occurred despite the organisational construction alteration. * Trouble of co-operation between concern groups ( due to the big organisation construction of the company the cognition sharing and cooperation between the concern units become really limited but Howard Stringer has tried get the better ofing this by puting strategic commissions across the concern units ) . * Divisions might turn excessively big ( as mentioned before each division has really become its ain company like the Sony Electronics Inc. or the Sony Pictures Entertainment Inc. nd there was a hazard of them turning excessively big. where competition would happen alternatively of a co-operation ) .

As CEO. Stringer recalled in a 2005 New Yorker article. the applied scientists started to endure from a damaging “not invented here syndrome. ” even as challengers were presenting next-generation merchandises such as the Xbox and iPod. As a consequence of their belief that outside thoughts were non every bit good as inside 1s. they missed chances in such countries as MP3 participants and flat-screen TVs and developed unwanted products—cameras that weren’t compatible with the most popular signifiers of memory. for case.

Looking at the above possible hazards and benefits we can see that while there were a batch of hazards in the structural alteration. Stringer needed to do a determination and he made this determination with the aid of other associates in the company and he besides took aid from people who were made in charge of altering the IBM construction many old ages back. They were successful in making the alteration and since Stringer was declared President of Sony Global. we can reason that he is still in there and is still contending and reconstituting to do Sony even stronger in order to compe against the large participants. such as Apple.

Sony is today coming up with new client focused merchandises instead than merchandises that are advanced. Although. internally we can reason that the structural alteration has been positive. with fight between the divisions which has resulted in a more focussed employee attack to the completion of the merchandises. It was said that since Stringer had taken over “there was a twinkle in the eyes of the employees” . The over all morale of the company was better. After Howard came people were still non certain if they knew where they were taking to but they understood the company scheme that was to do the company cool once more.

Which resulted in that Employees became more aroused at the workplace. Decision It is easy to understand that Sony Corporation chiefly focuses on giving the best environment to its employees who are the heads behind the inventions. A high degree of regard was kept between the senior and junior employees in the company. Assorted wellness and health plans and benefits are available for employees. which has satisfied the employees’ demands. Sony is an engineer-driven civilization. which put what the applied scientists thought and innovated before what the clients wanted or what the market demanded.

Organizational alteration direction processes include techniques for making a alteration direction scheme that is acquiring everybody involved in the alteration procedure. Prosecuting senior directors as alteration leaders ; they become the patrons of the alteration plan. Hence. this alteration was good for the employees. as they got more involved with everything environing the company. You besides need to construct consciousness of the demand for alteration ( communications ) acquiring everybody to understand why the demand for alteration. Hence. Stringer did this to the employees’ full satisfaction.

Developing accomplishments and cognition to back up the alteration ( instruction and preparation ) . assisting employees move through the period of alteration ( training by directors and supervisors ) . and methods to prolong the alteration ( measurement systems. wagess and support ) . Finally. working for a company such as Sony. would be really interesting. Hence. there is sufficient information given in this study in order to do this determination. I would wish to see to work for a company like Sony since it seems like they truly care about the employees on every degree. both at work and on a personal degree.


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