Introduction
Bayer is an international healthcare and agriculture oriented organization, which has had a strong presence in the pharmaceutical industry for 150 years. The company aims to cater to the pharmaceutical needs of the society while simultaneously protecting the interests of all stakeholders. The company previously followed an organizational structure in which function departmentalized the different operating aspects. However, as the company grew, the management felt a strong need to adopt a relatively flattened organizational structure, with clearly defined business divisions, and shift some management control from the parent company to the subsidiaries (Borkowski, 2015). In this respect, the company successfully managed to adopt a matrix structure. The structure enabled the company to become highly responsive to the external environment and maintain the competitive position in the market.
Organizational Structure and Relationships
Regarding corporate structure, the company is currently divided into the following three main subdivisions of Healthcare, Crop Science, Material Science, etc., which enable it to operate in different industrial segments .
Bayer’s Organizational Structure Chart
The Group Management Board includes various directors, which determine the final decisions and the general direction of the different divisions of the company (Organization Chart, 2016). These include the Chairman Marijn Dekkers, Finance Director, Strategy and Portfolio Management Director, Human Resources, Technology and Sustainability Director, Innovation Director, Pharmaceutical Director, etc. Thus, the company operates in a simple, yet popular organizational structure style. The relationship between the different leaders, departments and personnel is highly integrated to cater to the dynamic pharmaceutical market in which the company operates. All the directors have to be aware of the ongoing functions of various departments in order to be fully informed and cohesive with the company.
Communication Strategies Needed
Bayer should adopt open communication between the various departments and divisions as they all would work towards a common goal of achieving profitable sustainability for the organization. There should be a willingness to share feedback and ideas (Richards, 2016). An inclusive communication strategy is also highly desired as secretive communication might shut employees and important managers out of the important decisions and as a result, it might damage the cohesive nature of the multinational company. Along with the strategy, being two-way and result driven, the company will also need to adopt a multi-channeled strategy in order to ensure that the communication can make an impact on the recipients. The application of such communication strategies would be beneficial to Bayer’s matrix and division structure as open and two-way communications will ensure that all decisions are taken timely, and no misunderstandings occur between the different departments, managers, and employees. Such strategies will ensure that the workforce and management are well supported.
Leadership Styles to Manage Organizational Dynamics
In order to manage the organizational dynamics at different levels, it is vital that Bayer’s management adopts management strategies that are complementary to the structure and system of the company. Since, Bayer is an international organization, therefore, to manage organizational dynamics at different levels, different leadership style can be utilized. A supportive leadership style can be beneficial in managing the organization as it increases motivation and satisfaction in routine and stressful jobs. The achievement-oriented leadership style can also be adopted to provide the employees with exciting goals and rewards. The end product or the outcome is the most focused aspect in this style of leadership as it enhances the trust between the leader and the employees and enables Bayer to achieve its maximum performance potential.
Leadership Styles Needed To Manage Change
The directive style of leadership in Bayer would provide employees with the details of what is considered an important performance outcome. The style would be applicable as the company may be going through structural or other changes in the working dynamics of the organization. On the other hand, to manage change, Bayer can also incorporate the participative leadership style. The leaders in the company could opt to gain insight into a problem or solution by hearing multiple opinions from his subordinates or employees. Although in such case, the leader can retain the decision-making power, the employees would feel included and as a result, support the management decisions.
Sources of Power at Bayer
There are multiple forms in which people can acquire power in Bayer. Referent Power can be broadly applied to most aspects. Other narrower sources of power that can be applied are rewards and coercive sources of power. In the company, the most popular and desirable forms of power that exist are Reward Power, Referent Power, and Expert Power. The most highly valued and found power in Bayer was the expert power, as the employees listened and followed the advice of experienced individuals very sincerely. Giving out rewards and getting identified by others in the company also closely followed the expert source of power. The Coercive power is achieved by threat and coercion, and is a highly undesirable in a multinational company of Bayer’s standards, as the company strives to keep the employees happy, motivated, and empowered.
Conclusion
In conclusion, it can be stated that Bayer has established a very sophisticated organizational structure which promotes the integration of employees and management at all levels. An effective communication system would play a significant role in maintaining the competitive position of the company in the health care industry. Various leadership styles can augment the structure of the company and can contribute to its success. In addition to this, the sources of power expertise, referral, and reward help motivate the employees and contribute to the success of the well-established international organization.
References
Bayer Annual Report 2014. (2015). Retrieved from http://www.annualreport2014.bayer.com/en/corporate-structure.aspx
Borkowski, N. (2015). Organizational Behavior Theory and Design in Health Care. Sudbury, MA : Jones & Bartlett Publishers.
Organization Chart. (2016). Retrieved from http://www.bayer.com/en/bayer-organizational-structure-2016-01-01.pdfx
Richards, L. (2016). Communication Strategies in an Effective Organization. Retrieved from http://smallbusiness.chron.com/communication-strategies-effective-organization-826.html
