Organizational Structure (green River & Aberdeen)

In this Individual Project we will have a discussion on organizational structure and organizational culture. We will assist FMC Green River and Mr. Dailey in what strategies will need to be considered to build inter-group relations and further develop the Green River Facility organizationally.

FMC is and has been a successful company for the last fifty-six years. First originated in 1948 and produced 1.3 million tons of various grades of soda ash a year. The success of the first business brought about a second refining plant in 1953, which was completed in 1970. FMC Aberdeen, located in South Dakota with a population of 30,000 is also a successful subsidy of FMC. FMC Aberdeen employs one hundred people, produces one product, which is a missile canister for the U.S. Navy. FMC Green River managed by Mr. Dailey, produces various chemicals, has over 100 domestic and international customers, 1,150 employees, creates several products and works closely at times with the United Steel Workers of America. (Clawson, 2005)

“Organizational structure is the formal system of task reporting relationships that controls, coordinates, and motivates employees so that they cooperate and work together to achieve and organization’s goals.” (George & Jones, 2005, p. 535) Organizational structure is important because it is the foundation for how a company will be run. Aberdeen’s structure was simple, staff of 100 people and has only one product, and one customer. The two plants are very different in age and industry as well, with Green River as an older company in the chemical industry, and Aberdeen, a five year-old “start up” company in the defense industry. Aberdeen’s structures are placing all of their employees in work groups and are given the authority to make business decisions for the company. They are able to solve problems and appear to have obtained from its employees a very high level of performance from each team member. At Aberdeen while forming these small groups, the groups themselves have the ability to choose their leader and also, decide on how long they want a specific person to lead that group. The groups also have a unique ability to work within their groups on work schedules. If a person needs some time off, the flexibility of the groups to counsel others in either a positive or negative situation. Social loafing is practically non existent due to the rotating of team leaders and responsibility placed on each individual of a group.

The family like atmosphere at Aberdeen naturally creates a strong group cohesiveness, which is very effective and creates a positive working environment. The culture at FMC Green River, they have a relationship with their coworkers as the same as Aberdeen as well as managers. The only difference is that Green River is a unionized culture. It has been that way for years. In many union environments employees are given job descriptions and job titles. At FMC Green River, Dailey’s management style was very interactive, with a high level of trust for people; he was relatively open, was willing to pass out information and was eager to drive decision making down into the organization. Mr. Dailey worked well with his people but would now like to make some positive changes to better the plant in hope that the union will work with him.

In my recommendations for FMC Green River they should first of all understand that FMC Aberdeen has a great structure for the ability to create quickly various small work teams such as informal groups or self managed teams that allow the group to focus poll together ideas and come up with a solution to specific problem. The reason for this is because IT changes companies and allows them to behave in more flexible, organic ways. The effects of IT on organizational design can be seen both inside and between organizations. Once a solution is found the team disbands. Since Aberdeen’s company is smaller and its employees create a family atmosphere, the role relationships between the people in the groups have a strong personal bond.

The basic idea will also work at FMC Green River but will require some modifications. These modifications are as follows: the small groups that gather to solve a specific problem mush also remember that what effects one decision in the process they are improving may have a devastating impact on another division of the same company since the company produces different products. Quickly creating teams on the spot for resolutions to specific problems as done at Aberdeen is much easier when only dealing with one product for one customer. At FMC Green River, where there are several products being produced and over 1,150 employees, trying to incorporate small teams when the need arises will work but some restrictions may have to be supplied. I would suspect more division of labor and command groups would be better suited die to the possible impact of a decision