The research will examine two significant components of the company from a sociological point of view. The first is the problem with the previous decision-making system that stood in the way of reforms. The second is the examination of the new systems that were implemented to attain the objectives of the company. The first observation of the old decision making system is that it was a centralized system that was steeped in the owner who doubled as the president and the top manager of the company. Lussier identifies that centralization of authority means that the organization's group structure operates around a single unit of the entity and this has an influence on communication and interpersonal relationships in the organization (2011, p. 174).
In examining group dynamics, there is a distinction between formal and informal groups. A formal group is one where there is a consciously created set of roles and obligations that are well defined (Chevalier, 2007, p. 105). An informal group is established through relationships. In the case of Yellow Auto (1988 – 2001), there were unwritten rules and employees lacked autonomy.
Roles were not clearly defined and people were told what to do as they came up. This means that Yellow Auto in its advent was an informal organization. Also, people joined the organization because they were family members and a few were recruited only under the involvement of the owner. This was more of a reference group rather than a membership group. A reference group is one where people identify with groups rather than have clearly defined goals, as the case is in a membership group (Zastrow, 2009). Yellow Auto employees had a fringe status whereby they supported efforts of the owner as and when they were told to do things (Harrison, 1999, p. 222).
This was because there was a primary set of face-to-face relationships and contact was strong (Tischler, 2009, p. 23). In effect, communication was deeply affected. People were told what to do as and when the need arose.
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