The Story Of Sonys Rise And Fall Essay Example

utilize its technological expertise to create flawless products. This would have prevented fatal flaws that deterred customers and slowed down sales. Another problem evident in the case study is the impact of decision-making on motivation within the company.Stringer was confronted with a significant issue: he desired to transform the destiny and enhance the performance and reputation of the company. However, implementing the necessary changes would require a substantial modification in the company's fundamental structure and daily operations for their large staff of over 1000 individuals. The challenge was that such a significant alteration in the company's operations was likely to displease long-time employees who had only ever worked for Sony. Consequently, any change needed to be approached cautiously, with Newman suggesting that incremental change was preferable to radical change in order to satisfy the workforce. Stringer's problem, therefore, was how to implement the drastic changes needed to turn the company's fate while retaining a motivated and efficient workforce whose skills and expertise would be essential for restoring the company's competitiveness.

In the text below, the relevant theories addressing the problems faced within Sony are discussed. One theory that aligns well with these problems is Max Weber’s concept of bureaucracy. Weber argues that bureaucracy promotes characteristics such as clear division of labor, emphasis on job descriptions, discipline, hierarchy, and authority. These concepts are applicable to Sony as the hierarchical structure of the company made horizontal communication between departments difficult, as predicted by Miner. Communication could only occur among individuals with authority over each other. On the other hand, recent research by DiMaggio shows that companies with less bureaucratic approaches, such as flatter organizational structures and reliance on

teamwork rather than narrow job descriptions, have experienced increased productivity. Sony also adopted these changes by reducing the number of corporate executive positions and implementing a flatter structure under Stringer's leadership. Therefore, research suggests that these strategies can successfully improve communication flow and productivity within the company. Another theory that relates to the issue of bureaucracy is Warren Bennis's theory.

In 1966, Bennis suggested that bureaucracy would be replaced with adaptable, temporary situations. Although this prediction was not entirely accurate, as high levels of bureaucracy still exist today, it still applies to Sony to some extent. By eliminating the bureaucratic approach described by Weber, Sony could potentially respond positively to societal changes. According to Pitt and Smith (1981: 136), removing bureaucracy and embracing a more bureaucratic approach enables companies to better handle change, as it humanizes the office, encourages communication freedom, and emphasizes expertise over position. Considering Stringer's decisions as responses to the problem, Pfeffer's theory aligns well. Pfeffer proposed that organizational decision-making is guided by those with the most power in the company, as a large number of individuals coordinate their efforts to achieve tasks beyond one person's capabilities (Pfeffer and Salancik, 1978: 23).In 1994, Pfeffer identified five power sources that exist within an organization.

One issue with Stringer's decision-making abilities at Sony is the concept of Nonsubstitutability. This means that the power in the decision-making process is determined by the difficulty of replacing staff members. Consequently, if Stringer were to make a major decision that upset his staff and affected the company's operations, it would be challenging to rectify the situation as the talent responsible for creating Sony products cannot easily be replaced by other

employees. Therefore, the criticism that Stringer's decisions lacked boldness and failed to significantly impact the company's structure appears warranted since he was not the ultimate power holder in this scenario. Instead, his staff held that power due to their irreplaceable skills nurtured within Sony. Consequently, Stringer would want to keep his staff satisfied in order to motivate them to develop competitive and innovative products for customers. This theory is easily applied to Sony as a case study illustrating different approaches to decision-making and power dynamics in business.To effectively tackle the aforementioned issues, I recommend implementing a progressive and gradual approach for Sony's resolution process.

The staff plays a crucial role in the company and should not be underestimated. Sony needs to prioritize their motivation and teamwork for positive changes. Instead of making drastic changes that may cause unrest, it is advisable to introduce smaller, incremental changes and appoint a strong leader (Newman, 2001: 281). This will ensure all staff members work towards a common goal, stay motivated, and commit to continuous improvement. Gradually reducing bureaucracy in the long run is better than sudden significant changes. Many companies have shifted from bureaucratic management to a democratic approach for advantages in motivation and interpersonal relationships within the organization.

To create a more positive structure, eliminate any dictatorial or hierarchical elements and prioritize expertise when filling higher positions. Therefore, replacing arrogance mentioned in the case study with new corporate culture is essential for this transformation.

Instead of focusing solely on integrating with competitors, the company should concentrate on creating universally supported formats across all of their products. This approach will enable them to offer consumers more practical, useful, and desirable products.

While the team responsible for product development has shown their talent through past innovations like the Walkman and the Playstation, they can still maintain a competitive advantage by adopting a consumer-led approach to product development. This means providing customers with cutting-edge, desirable, fashionable, and functional products that prioritize innovation and creativity rather than being limited by supported formats.