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Strategic Organization Communications

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Strategic Organizational Communication
Strategic organizational communication is the process of infusing communication together with an agenda that includes promoting the company brand. ("What Is Strategic Communications?”, 2011)
Case Study: “The Power of Rewards at Industry International”
The case study “The Power of Rewards at Industry International” located in chapter three of Strategic Organizational Communication in a Global Economy describes a manufacturing company. The company has a rewards system used to compensate employees but that system is in jeopardy of being eliminated due to economic challenges. The case study describes the situation, the challenges the employees and the company face, and the methods the employees are considering to resolve the issue to their satisfaction.
The Organizational Structure
The organizational structure of the flow of information with a company can be either centralized or decentralized. Centralized information flow means all decision making and power is reserved to central points within the company. ("Centralization And Decentralization", 2013) In a centralized company information is often altered by the time it reaches the lower ranking employees. Decentralizing the information flow is the exact opposite of centralized. In a company that is decentralized information flow is distributed equally through the company resulting in faster decision making and less alterations.
The organizational structure of Industry International. Industry International is a decentralized company. Although decisions are made by a board of directors and information is not shared with the employees until a specified time, when information is shared it is spread in a group setting with everyone notified at once.
Rules and Rewards Industry International functioned for many years on a rule and rewards system. The employees worked hard and at year end they received large bonuses ranging from 50% to 100% of annual salary. Changes caused resistance. Changes in the economy and the recession in the mid 1980’s have impacted Industry Internationals ability to continue paying large bonuses. As a result many employees experienced financial problems. Employees became disenchanted with management and starting making assumptions of greed and misappropriation of funds. Employee attitudes reflect the company’s moral. (Shetrone, 2011) Strategies to lessen resistance. The employees of Industry International have concerns that the company will attempt to replace the current bonus system with a profit sharing program that is not as lucrative to the employee as the annual bonus. To revolt employees considered unionizing, a walkout, or quitting. However, due to the decreasing manufacturing jobs available in the United States most employees are stuck.
Motivation
Originally the employees of Industry International were motived completely by the annual bonuses they received. The employees knew if they worked hard all year they would be handsomely compensated year end. According to American psychologist Frederick Herzberg “you cannot motivate people; you can just build an environment where people motivate themselves”. (Sandler, 2013) Motivations change. Changes in the economy affected the bottom line for Industry International which in turn affected the employees. The entire process caused a circular impact first impacting the company then the employees and finally the company again. Once the employees lose their bonuses productivity will start to decrease and bonuses will be either reduced again or removed.
Conclusions
Industry International is decentralized manufacturing company that prior to the mid-1980’s recession paid their employees extremely large bonuses. Once the recession impacted the company’s bottom line the employees started to feel the pressure of reduced bonuses. As a result the employees are concerned the company will move them to a profit sharing program ad have considered many possible ways to lash back such as a walkout, unionization, or quitting. One definite outcome of continued reduction of employee bonuses is reduced productivity. The bonus is the reason the employees of Industry International worked so hard. The only way to maintain productivity after taking away the bonus system is to find a way to equally compensate the employees to their satisfaction.

References
What is strategic communications?. (2011). Retrieved from http://www.idea.org/blog/2011/03/16/what-is-strategic-communications/
Centralization and Decentralization. (2013). Retrieved from http://managementstudyguide.com/centralization_decentralization.htm
Shetrone, A. (2011). 7 Ways to Improve Employee Satisfaction. Retrieved from http://www.inc.com/guides/201105/7-ways-to-improve-employee-satisfaction.html
Sandler, K. (2013). Motivation Theories and Compensation. Retrieved from http://www.ehow.com/about_6739847_motivation-theories-compensation.html
Conrad, C., & Poole, M. S. (2005). Strategic Organizational Communication. Retrieved from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx?assetMetaId=ce2bc3c6-eabd-4714-b925-bb90ef68141e&assetDataId=a4a0fc6c-ffb9-4602-b603-d614f550ab32&assetpdfdataid=7a43c11f-aee0-4a9d-8c1e-da6901c4b390.

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