Global Financial Meltdown (Coursework Sample)

Name: Course: Professor: Date: Table of Contents Global Financial Meltdown……………………………………………………………………….3 Video Analysis…………………………………………………………………………………….3 Introduction………………………………………………………………………………………..3 Five Basic Parts of the Organization [#22] (Henry Mintzberg, 1979)………………………….4-6 Frederick Taylor and Scientific Management…………………………………………………..6-7 Principle of scientific management on environment……………………………………………7-8 Bureaucracy [# 7] (Max Weber, 1946)………………………………………………………….8-9 Conclusion……………………………………………………………………………………….10 Work Cited……………………………………………………………………………………….11 Global Financial Meltdown Video analysis The presented video tackles the financial crisis that took place in 2008. The video highlights some very crucial reasons that led to the crisis and the effects that were brought by it since it began in august 2007. The loss of mortgage securities brought many fears especially counterparty risks. Many firms were involved with scum that resulted to closure or collapse and some firms just found it hard to continue conducting business because of the difficulties that were as a result of the crisis. The rates of unemployment have risen steadily; the financial crisis negatively affected the automotive industry. The entire economy was affected with the financial crisis. Introduction The federal government was forced to play a more active role in the economic policy making after the Financial Crisis that was experienced in 2008. The loss that banks and nonbanks financial institutions and the market subprime mortgage securities faced reduced the available capital that was to be used in lending was for the debt incurred. The economy crumbled worldwide with a number of companies reducing the investment expenditure as well as increasing the consumer’s savings with the intention of responding to the harsh economic situation. The situation required government intervention in order for the economy to regain from the crisis. Five Basic Parts of the Organization [#22] (Henry Mintzberg, 1979). According to Henry Mintzberg, an organization should have three basic dimensions. The first dimension is the key part of the organization, this part of the organization play a significant of ensures if the organization succeeds or fails (Mintzberg, 45). The second part is the prime coordination mechanism; this part provides the platform for the day to day running of the organization. Lastly is the manner in which decentralization is governed; this part involves subordination as well as decision-making process within the organization. Mintzberg further states that if an organization adopts the strategy and be able to practice it, then it will result to the five basic configurations. These configurations are simple structure, machine bureaucracy, and professional bureaucracy, divisionalize form and adhocracy. The simple structure is the most crucial part in the strategic apex. The officials here work in a manner that provides the employees with direct supervision in terms of vertical and horizontal centralization. Some of the examples of a simple structure include new government departments, small corporations among many others. The organization in this situation consists of the manager, a number of employees that are core to the operation. The goals of this part mainly stress on innovation and long-term survival of the organization. The second basic part of the organization is the machine bureaucracy. Machine bureaucracy is very significant because the process it uses work standardizes the coordination mechanism as it employs a limited horizontal decentralization. In this part, the decisions that are made are centralized; management span is narrow, and the organization experiences a tall chain of command. Machine bureaucracy boasts of a large technostructure as well as support staff. The next part is divisionalize form; this part lies in the middle line. The divisionalized form utilizes standardization of the organizations output as the core coordinating mechanism that is used to employ the limited vertical decentralization. The process of making decision is done in the divisional level in a more decentralized manner; minimal supervision is witnessed among the different divisions. This type of structure is located within the corporate headquarters with the aim of providing services to the different division of the organization. Professional bureaucracy is that part that lacks centralized. It depends heavily on professionals who are qualified to carry out its operations with a very high level of independence. The coordination and the functioning of the organization are achieved by a very high standard, skills as well as qualifications that require the operation to supervise by a particular position. The main focus of the bureaucracy is to define some given positions in terms of capabilities as well making sure that the organization fully functions. Adhocracy is the last part of the formal organizational structure, and this structure always takes time to adjust itself to changes. Adhocracy is mainly in organizations that witness rapid changes or companies that have the difference in their projects. Formal structure of this nature limits flexibility within the organization. The interesting thing about adhocracy has capability of adapting to the situation it meets. Adhocracy does not have a definite formal structure that can associate it with the variety of highly skilled employees. Adhocracy operates in a very funny way; it forms teams that carry out its duties (Mintzberg, 74) . The teams that are formed organize themselves with the help of the matrix structure that agrees to effective vertical and horizontal relationship based on the competency of a particular situation. Mintzberg further did the work of analyzing and understanding of the relationship that exist between the strategies and structures of the organization begun with Chandler and the extension. The connection that is there between structure and strategy is still in its formative years. There is likely to be more of advancement due to the research from service organizations such as schools. In the meantime, school leaders must adhere to the organization strategies and structures. Frederick Taylor and Scientific Management Scientific management by Fredrick Taylor gives descriptions of how applications of the scientific procedures in the management of employees in a manner that is capable of improving productivity within the organization. The procedure of scientific management calls for optimizing the approach that an operation is performed by making the task easy so that the employee can time to specialize in a technique that suits them best. Previously before scientific management came into being, skilled craftsmen who received their knowledge through an extensive apprenticeship were able to perform their duties. The skilled craftsmen were able to make a decision on how to carry out their duties. The emergence of scientific management changed the whole situation and replaced it with a number of simplified tasks that could also perform by unskilled worker who could be easily trained to perform the task. Taylor was more fascinated to improve productivity of the workers very early in his career. During his time, the steel workers notice the gross efficiencies in productivity that inspired him to come with the idea of scientific management from personal management. In personal management, the captain was in charge of the industry, and he had to personally brilliant. According to Taylor, ordinary\y men through scientific techniques could perform better as compared to the brilliant captains. Taylor constantly thought of changing the management and replacing it with actual surveillance that would lead to better practices. He advocated the philosophy as well as systematic training of employees to come up with better practices instead of allowing personal guidance in performing their duties. Taylor also believed that cooperation that is from the heart is capable of developing quality workers and management that will inspire employees in following better practice. Through this philosophy, workload would be shared evenly between the workers and management where management performs the science as well as the institution while the workers perform the labor, but all the groups perfecting their duties. The strongest and the most positive point of this legacy is break...