Transformation of managerial skills
Walter’s period
For over the decades, Disney has experienced significant transformation in successful managerial skills. The transformation has been due to change of individual managers and the existing market conditions. There are two major transformation illustrated in this case. The first occurred during Walter’s period while the other came during Eisner’s period.
The managerial skills have changed from participative management to scientific management. In fact, in some instances managers have used almost all known skills of management. This has transformed into the blended form of management with hybrid managerial skills. On its formation, the then management applied various skills in operation of the organization.
Specialization and division of work was the first managerial skill used. As evidenced by Walter and his brother, Roy, the organization extensively deployed specialization (Walter Disney Co, 2011, p.1). Roy headed the finances while Walter led the creative department. They also divided the organization’s roles among the employees based on skill and talent. These skills led into strategies, which enabled the employees to focus their energies and talents to their areas of specialization.
The managers used people-oriented leadership blended with some aspects of task-oriented leadership to administer their respective departments. Non-hierarchical organization in which the management put the interest of its employees first, manifests this kind of managerial skill. However, the management also focused on the individual performance of its employees.
There was also the element of participative management, in which the managers emphasized on cooperation and teamwork among the employees. Walter encouraged teamwork and cooperation (Walter Disney Co, 2011, p.1). The managers also used the scientific skills of management, as illustrated by Walter’s common saying that every employee should be dedicated for creativity. As a result, the organization grew to become among the best in the entertainment industry.
Eisner’s period
In his period, as the chairperson, Eisner transformed the management skills into the concept of learning organization. Learning organization aimed to empower the employees to enhance their creativity for the growth of the company. During this period, the management was a blend of variety of management theories such as participative, scientific, administrative and learning organization.
Learning Organisation
Learning organization is very critical for the Disney’s organization due to several reasons. First, learning organization concept enhances innovation. Application of learning organization empowers employees thus enabling them to cultivate self-efficacy (Samson & Daft, 2009, p.84). This motivates and provides employees with the urge to exploit challenges as opportunities.
As a result, this would enhance creativity and increase the company’s performance. As an entertainment company, Disney needs to empower its workforce in order to enhance creativity and compete adequately within the entertainment market.
Secondly, to reduce the cost of restructuring, Disney needs to adopt the learning organization concept. Restructuring cost is the cost that a company incurs in training new recruits to fill positions left by the experienced lot of employees.
The management can reduce this cost by either hiring highly qualified employees or enhancing knowledge transfer through learning organization. To retain the creativity and grow the Disney’s brand, the management should ensure transfer of skills among the employees. Learning organization enhances knowledge and expertise exchange between the incumbent workforce and the new recruits.
Instead of training new recruits for the company, Disney critically requires to be a learning organization so that the outgoing workforce can transfer their skills to these recruits. In this way, the company’s creativity will increase and its brand will grow. It will also perpetuate Eisner’s mantra and reduce the cost of restructuring.
Learning organization adds value to products and services. The products of Disney require high level of value to command considerable market in the creative industry. Learning organization dictates for application of knowledge in product creation while knowledge-based production adds value to products and high value products command premium prices in the market.
Learning organization therefore, would increase the company’s net earning; a trend Eisner kept for more than 15 years. In addition, the company would deploy the best practices of production and management. Subsequently, the company will continue to record impressive trends. In fact, the learning organization concept would boost globalization of the company beyond the current coverage.
Management skills
Eisner introduced cross-divisional initiatives. In management view, these initiatives illustrate participative management. Participative management calls for teamwork and cooperation among the employees regardless of the level of management (Samson & Daft, 2009, p.83).
People working together in cooperation, are likely to give high quality output due to the advantages of the combined effort. The theory enhances combination of ideas and efforts from different individuals and departments for a common goal. The cross divisional initiatives, created a platform for sharing of ideas and consultation. As a result, the company’s initiative grows enhancing creativity. Managers can still use this skill today to promote teamwork.
Learning organization is another skill of management, which Eisner introduced. Learning organization enhances empowerment of the employees. Once empowered, employees develop responsibility to their duties (Samson & Daft, 2009, p.83). Such employees do not require close supervision; they can undertake their roles without any supervision.
In this skill, Eisner created good working condition for the Disney’s workforce. Good working conditions promote creativity and innovation. In this way, Eisner enhanced job enrichment for the employees. Employees feel motivated when left to make some important decisions about their tasks. Through learning organization therefore, Eisner motivated the Disney’s workforce leading to creativity. Managers can still use this skill to empower their employees.
In Addition, Eisner introduced the skill of recruiting the experienced and highly qualified employees. As noted in the case study, Eisner lured some of the managers from Paramount Pictures Company into Disney. The strategy has several advantages to the management. First, it relieves the company of the cost of training new inexperienced recruits. The management in such a case, channels the cost instead, to train its employees for expansion of the company, particularly the production.
Secondly, experienced personnel have potential solutions to the company. In fact, some of them may have solved the difficulties, which the company may be experiencing currently. In addition, these employees may provide new skills to the employees of the company. Employing the experienced employees Disney benefited from the reiterated advantages, which are very significant for growth of the company.
Eisner also used the hands on skill of management. In this skill, the manager is usually close to the employees. Being closer does not imply controlling the employees but understanding their work-related issues. As for this case, the hands on management illustrate a blend of task-oriented and people-oriented skills of management.
Eisner used the skill to ensure comfort among the employees while undertaking their roles. As a result, creativity and promotion of the company’s brand ensued. People-oriented management considers the issues of the employees while task-oriented management cares for execution of the tasks. A blend of the two results into a compromise, which enhances both the performance and the life of the workforce.
References
Samson, D., & Daft, R. L. (2009). Leading in Organizations. South Melbourne, Vic.: Cengage Learning Australia.
Walt Disney Co. (2011). Once upon a time at Disney. Retrieved from <https://dpep.disney.com/>.