Six Box Theory Analysis

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Six Box Theory Analysis
Table of Contents
Introduction………………………………………………………………………………………………3 Purpose…………………………………………………………………………………………………...4 Structure……………………………………………………………………………………………….….5 Rewards…………………………………………………………………………………………………...6 Helpful Mechanisms……………………………………………………………………… ………….8 Relationships………………………………………………………………………………………………9 Leadership…………………………………………………………………………………………………10 Conclusion………………………………………………………………………………………………...10 References…………………………………………………………………………………………………12 Introduction

The Six Box Model represents a particular way of looking at organizational structure and design. It gives attention to issues such as planning, incentives and rewards, the role of support functions as well as the delegation of authority, organizational control, and accountability and performance assessment. Purposes: Why do we exist?

Structure: Are we centralized of decentralized?
Helpful mechanisms: Have we adequate coordinating technologies? Relationships: How do we manage conflict (coordinate) among people? With our technologies? Leadership: Is someone keeping the boxes in balance?

Purpose
Vonage’s Mission Statement
We will always offer our customers an attractive value proposition including attractive local and international calling plans. We will provide quality communications services with standard and enhanced features at prices considerably lower than those of traditional telephone services. We believe that our scalable and innovative technology platform not only provides us with a competitive advantage over many other VoIP service providers, but also allows us to maintain a low-cost structure relative to traditional telephone and cable companies providing telephony services. Structure

Is Vonage Holdings Corp a centralized or decentralized organization? Vonage Holdings is definitely a centralized organization. Top management make the organization’s key decisions with little or no input from any of the worker be it middle management, front line management or the support personnel. Companies that consolidate power and decision-making abilities at the top of the organizational chart, tend to be centralized organizations. For example if the CEO of a corporation has a particular vision and wishes for it to remain pure to his/her perspective, he/she will centralize the organization so that he/she is able to control as much of the company as possible. In reading The Quality of Managers in Centralized versus Decentralized Organizations: Journal article by Raaj K. Sah, Joseph E. Stiglitz; Quarterly Journal of Business and Economics, Vol. 106, 1991 it states that centralizing an organization is usually helpful for companies who need to be stable or are facing a crisis and need one source of decision-making to lead them. I use to think that these types of organizations were becoming more rare these days as employees become smarter and organizations become larger, however a few do still exist and Vonage Holdings is one that truly one of them. Centralized structures are becoming rare because of their many disadvantages. Due to power being consolidated at the top of the organization, the risk is great if the top of the organization becomes incapable of leading the organization. Major issues in an organization such as death, illness, or massive organizational size can cause a weak span of control. Employees also will feel less motivated to perform for the organization as they will not have an avenue for sharing their ideas on how to improve the organization. This was a major problem I saw while working at Vonage Holdings Corp. Most of the employee, myself included, felt that we did not have a say in matter that affected us directly on a daily bases. We were told what to do, how to do it, and when to do it. We fought hard to get upper management to realize that by using a decentralization structure it would allow our organization to take...
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