With an ever changing technological know-how, the structure of management and leadership is bound to change (Wallace, Tolley-Stokes&Estep, 2011, pg 52). Various industries are forced to change how they manage and handle their marketing strategies to ensure they keep up with the new technology (Treat, 2011, pg56). If a company fails to embrace and incorporate the various upcoming strategies in management and leadership and choose to use the traditional methods, it is bound to lose its customer base. Use of methods that have been deemed redundant and bureaucratic may, therefore, lead to loss (Pitsis, 2011,pg85).The methodsmake it necessary always to review the way a company manages its affairs.
Question1. To what extent are changes in technology making the bureaucraticmodel redundant?
Changes in technology have made the bureaucratic model unfit and unnecessary. The changes, mainly seen in the music industries where managers and artists who have maintained the use of record labels and selling of CDs;as a primary marketing tool (Pitsis, 2011, pg 276).The changes in technology not only influence the music sector but other sectors too.(Cowling&Murray, 2008 pg70) Too much routine in the way an organization tries to meet its objective has proved to be lethal: making the need for change paramount.
The use of the internet makes resources and customers more efficient, speedier and cost-effective to access. For example, book sells have increased in the recent times. Ithas enabled through the use of e-technology and online software (Wallace, Tolley-Stokes &Estep, 2011 p60). Traditional book selling that used to take even months to reach some customers was lessened to just a click of a button and online subscription. (Alvesson,and Sveningsson, 2003, pg61)Most tools bought by companies today have been seen to do almost the same work done by traditional means only that the work was better and faster. These tools are a product of technological innovation and creation.(Pitsis, 2011,pg278)Search engines like Google replaced or became a substitute for library materials.
The internet has becomethe number one tool used by promoters to ensure that they market new music to the maximum number of people they can reach the in music industry. Use of YouTube, iTunes, and other music sites is increasingly high.(Treat, 2011 pg84) A marketer or organization or even music label that has embraced the internet to reach its intended customers has a better chance to increase its sells. Although the internet has faced a number of challenges including possible manipulation where some music is made available for free on some sites, it is better than the use of CDs to reach the fans (Treat, 2011 pg85).
With the digital revolution, service productivity is enhanced. It ensures that there is a transformation from just a number of broadcast systems to an extensive network. With the use of the digital platform, The Piano Guys have been able to increase their viewership and subscriptions by a wide margin.(Pitsis, 2011,pg278) The music industry is thus undergoing a rapid change as a result of a change in technology.
The structural contingency theory has been used to suggest that companies usually have a backup plan that is used to guide any organizational change that is deemed necessary. The corporate structure should be adaptable to any changes that may occur and should be able to adapt very fast to these changes (Nidumolu, 1996,pg63). The structural contingency decisions, influenced by a number of factors, can be either internal or environmental. Environmental factors include change in competition, economic uncertainty and changes in consumer preferences. (Nidumolu, 1996, pg 63)They arise from the business environment, and the company has to fit in. On the other hand, internal factors occur within the walls of an organization and may include new managerial structure and new technology.
A company must have a laid out procedure on how to embrace new technology either from within or in the business environment (Deli, 1999, pg 121). A company that doesn’t ensure that it plans for future changes will be forced to take a lot of time to restructure as technological changes take place. It has been saidto be maybe why most institutions will be reluctant to use new technologytime takenand due to the high cost as a result of lack of a contingency plan.
Joan Woodward demonstrated how organizational structures adapt to changes in technology. Woodward (1965, p104) grouped technology in three categories and showed that production sizes were linked to technological sophistication and increasing levels of complexity in the industry. The types include unit production, mass production, and process production. (Pitsis, 2011,pg280) She described the technological complexity of a company’s production as a result of its technical mechanism.(Piros&Pinto, 2013 p89) Unit and continuous production required non-routine systems while mass production exhibited procedures and routine work. (Woodward, 1958 pg55) Woodward’s theory has provided a framework that helped analyze organizations involved in manufacturing and showed differences in the three production levels. With technological changes, it is thus necessary that enough research be done to ensure that the effect of technology on the three production levels considered before any decision is made.
Drucker (1954,pg89) identified various opportunity sources that influence innovation. Changes in industry and marketing structures push the need for organizational change. The music industry has changed over the years with more genres and different styles and tastes among music lovers (Pitsis, 2011, pg278). Demographical changes also influence the nature of needs by various consumers. AManager that doesn’t keep interest to the demographical changes and maintains the old system of the organization may end up experiencing loses he cannot account (Drucker, 1985, pg 58). With a competitive world, innovation needs to be a continuous process as opposed to a one-time goal or activity. Technological innovation has ensured companies like Microsoft stand out in the very competitive sector (In Lin, In Fu, & In Chen, 2014 pg41). Musical innovations and new system update has made various artists and also record companies top their game and invest more in technology and innovation.
Question2. What are the sources of value in the new model and where, ifanywhere, do the old structures of the record companies fit in?
Digital technologies, coupled with the division of labor helps make the world economy globalized. Organizations are adaptive systems and may preserve previous elements or adapt to new changes that were not in the system (Robbins & Coulter, 2005 pg135). Organizations may end up forgettingthe old ways and how they have operated over the years. The music industry has been under a storm, and various artists have significantly used the new model (Berlatsky, 2012, pg 75). The model uses technology as its primary tool and pillar. The model has left both the artist and manager satisfied and increased productivity. The use of a digital platform has proved to be a breakthrough in the sector (Pitsis, 2011, pg286).
The new model focuses on both long-term and short-term strategies for marketing the music, artist and production label. Combining a number of tools ensures that a vast array of tools and resources are employed to foster the marketing (Berlatsky, 2012,pg68). The tools include the use of ringtones, mastertones, live performances, and internet selling or subscriptions. The new model not only provides that a much wider market realized, but also ensures that the consumer gets an extensive choice (Treat, 2011 pg49). The technology and resources employed are much efficient than the old methods. Without forgetting the primary cost reduction and maximum sales realization, it is wiser to go to the new model.
Even with increasing competition in the music industry and the adoption of the new standard by most of the artists, it is still giving artists a sense of security than the old model (Bottazzi,Da,Hellman& National Bureau of Economic Research, 2011 pg 90). The music label can forecast easily the impact of a new hit or new strategy that has employed in the organization.
The internet doesn’t only affect the outcome of an artist's work positively (Kim, 2002 pg31). With an ever booming and active social media, the platform can either ensure a right or tainted image of the artist or music label (Berlatsky, 2012,pg 60). Online voting and music ranking like the Billboard charts reflects the response by fans of music released by an artist. Unlike ten years ago where the sales during a particular year on an album could indicate the response to the music released, it is much easier with the new model (Gaye, Holmquist,Behrendt, & Tanaka, 2006 pg77). Online viewership on YouTube and any other site that consumers can watch or even buy or subscribe to a music release give a better response (Berlatsky, 2012, pg63). The model is thus better since it gives a faster way to ensure that artists meet the tastes and demands of their fans.
Even with the changes that happen every day, the old structures still fit in some cases. Too much reluctance to change and also continuous change may both have side effects (Institute, 2003 pg 99). With a high number of people still appreciating the old structures, their need cannot be ignored (Piros,& Pinto, 2013 pg100). The structures give a guideline on how to build better models and understand the core input.
The use of better technology and organizational changes affects every industry and a company that is keen to ensure that it keeps up with technological changes in its management and leadership or organization, stands a better chance (Bainbridge, 2012, pg 48). With a diverse economy, the better company will always have greater and better opportunities and keep up with the competition (Pole, & Burgess, 2000 pg 87). A company that stick to its old traditions and is reluctant or rigid to change may be forced to strive to maintain its market or expand.
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