Xerox case study
1. In what ways can (a) flattening the hierarchy and (b) centralizing/decentralizing authority help an organization like Xerox to improve its performance?
Flattening the hierarchy can help employees working closely, like those in R&D or strategic planning, work smoothly without having to wait for approvals or clearances. This may enable them to come up with innovative product line-ups quicker. It also helps cut down on bureaucratic costs.
Centralizing an organization is useful when a large company that is successful becomes complacent; in such a situation centralizing may push employees to become more productive and accountable.
Decentralizing is especially vital for large organizations like Xerox because as these companies grew bigger, newer levels were added to their managerial hierarchies. In such a situation, till a planned attempt is made to actively give employees more power, they may not take more initiative and large organizations count on every employee giving the job their best shot.
2. What kinds of factors change the decision to centralize or decentralize authority over time in a fast-changing environment such as the digital document services industry?
An organization is rooted in the environment, both external and internal. If the industry is such that it requires frequent changes and innovations, like digital document services or the cell phone industry, then there would be a need to decentralize authority to an extent so that the people developing product ideas, the people manufacturing them, and those involved in marketing these innovations can work in tandem with each other. The higher authority would have to be flexible and quick in its functioning too.
Summary of the case study
In the early 2000s Xerox was facing stiff competition from its aggressive Japanese competitors selling low-priced digital copiers that made Xerox’s products obsolete. It was at this time that Anne Mulcahy became their CEO and had to contend with
Flattening the hierarchy can help employees working closely, like those in R&D or strategic planning, work smoothly without having to wait for approvals or clearances. This may enable them to come up with innovative product line-ups quicker. It also helps cut down on bureaucratic costs.
Centralizing an organization is useful when a large company that is successful becomes complacent; in such a situation centralizing may push employees to become more productive and accountable.
Decentralizing is especially vital for large organizations like Xerox because as these companies grew bigger, newer levels were added to their managerial hierarchies. In such a situation, till a planned attempt is made to actively give employees more power, they may not take more initiative and large organizations count on every employee giving the job their best shot.
2. What kinds of factors change the decision to centralize or decentralize authority over time in a fast-changing environment such as the digital document services industry?
An organization is rooted in the environment, both external and internal. If the industry is such that it requires frequent changes and innovations, like digital document services or the cell phone industry, then there would be a need to decentralize authority to an extent so that the people developing product ideas, the people manufacturing them, and those involved in marketing these innovations can work in tandem with each other. The higher authority would have to be flexible and quick in its functioning too.
Summary of the case study
In the early 2000s Xerox was facing stiff competition from its aggressive Japanese competitors selling low-priced digital copiers that made Xerox’s products obsolete. It was at this time that Anne Mulcahy became their CEO and had to contend with