An organizational structure as the one described above is also known as a classical ortraditional structure, and it emphasizes aspects of classical management approaches, such asthe ones of Weber, Taylor and Fayol. Aspects of Weber‟s “Theory of Bureaucracy” is presentin the organizational structure. Weber believed that bureaucratic organizations weretechnically superior to other organizations, among other things because they had a clearlydefined hierarchy, a clear division of labor, and centralized decision-making (Miller, 2009, p.23). All are components which can be found in the functional structure of the LEGO Group.Also Taylor‟s “Theory of Scientific Management”, where focus is on the relationship betweenmanager and employee and the control of individual work, can be applied in a context of thefunctional approach. Especially Taylor‟s idea of the “(...) inherent difference betweenmanagement and workers”, meaning that “(...) organizational managers are best suited forthinking, planning, and administrative tasks”, while “(...) organizational workers are bestsuited for labouring”, can be found in the clearly defined hierarchy in a functional structure(Miller, 2009, p. 26). Naturally, the division between organizational workers and managerswas more distinct in the early twentieth century, when Taylor developed his theory, but ahierarchical structure does create a clear distinction between workers and their job tasks. Thisalso relates to components of Fayol‟s Theory of Classical Management, where a strict,vertical hierarchy, clear division of labor and order and control are seen as the ideal principlesof management.According to Miller (2009), the communication channel for these three managerialapproaches is typically written, in a formal style, and the communication is happening in avertical direction.In terms of the philosophy of the LEGO Group, where inventive play is in focus, it may bequestioned how a firmly structured hierarchy can give space to play, creativity andinnovation. The organizational structure of the LEGO Group must, however, be assumed toconsist of much more than what the visual presentation of the structure in the CompanyProfile shows. Especially the organizational changes that happened around 2004, where thecurrent CEO Jørgen Vig Knudstorp entered the company, emphasized a more innovativeorientedapproach to the organization‟s structure and management. When Jørgen Vig Side 29 of 58Knudstorp joined the LEGO Group in 2004, the company was in an identity crisis after yearsof bad results, which according to Knudstorp had resulted in the company‟s managementbeing “(...) quite risk averse while focusing on survival” (O‟Connell, 2009, p.1. Cf. appendix20). Instead, Knudstorp incorporated an opportunity-driven strategy. Knudstorp chose a backto-basicsstrategy, focusing on the core values of the LEGO Group but doing this whileemphasizing an innovative strategy as well. To implement this new combined strategy,Knudstorp had to make organizational changes and change the management style of thecorporation. He implemented a „managing at eye level‟ approach, which means “(...) beingable to talk to people on the factory floor, to engineers, to marketers – being at home witheveryone” (O‟Connell, 2009, p.1. Cf. appendix 20). Additionally, the strategy “(...) required alooser structure and a relaxation of the top-down management style” (O‟Connell, 2009, p.1.Cf. appendix 20), which among others things meant that responsibility and decision-makingwas pushed down the hierarchy (O‟Connell, 2009, p.1. Cf. appendix 20). Also, a focus oncreating innovation through the use of cross-functional teamwork has become an importantaspect of Knudstorp‟s strategy (Hjuler & Robertson, 2009, p. 1. Cf. appendix 20). With theseorganizational changes the LEGO Group moves away from its traditional organizationalstructure to one centered around flatter structures, cross-functional teamwork, employeeinvolvement, and more open communication. Thereby, the LEGO Group embraces a humanresources approach to management, where the above-mentioned aspects are vital but alsoinnovation plays a big part
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