netrashetty
Netra Shetty
Organisational Structure of Berkshire Hathaway : Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B) is a conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years, while employing large amounts of capital, and minimal debt.[1] Berkshire Hathaway stock produced a total return of 76% from 2000-2010 versus a negative 11.3% return for the S&P 500.[2]
Warren Buffett is the company's chairman and CEO. Buffett has used the "float" provided by Berkshire Hathaway's insurance operations (paid premiums which are not held in reserves for reported claims and may be invested) to finance his investments. In the early part of his career at Berkshire, he focused on long-term investments in publicly quoted stocks, but more recently he has turned to buying whole companies. Berkshire now owns a diverse range of businesses including railroads, candy production, retail, home furnishings, encyclopedias, vacuum cleaners, jewelry sales; newspaper publishing; manufacture and distribution of uniforms; as well as several regional electric and gas utilities
2
CEO
Warren Buffett
4
Vice Chairman of the Board
Charles Munger
Director
Charlotte Guyman
3
Director
William Gates
4
Director
Susan Decker
Director
David Gottesman
2
Director
Howard Buffett
9
Director
Thomas Murphy
4
Director
Ronald Olson
6
Director
Walter Scott
3
Director
Donald Keough
4
Director
Stephen Burke
5
MidAmerican Energy Holdings
David Sokol
Geico
TN
NetJets
RS
2
Reinsurance Division
Ajit Jain
CFO
Marc Hamburg
MidAmerican Energy Holdings
GEA
Accounting & Control
DJ
They are expensive to implement, offer a poor return on investment and fall short of achieving the organization's goals to better enhance good business performance. This happens because organizations don't plan for sustainable change into a functional organizational structure. In other words, they succumb to what employees often refer to as "program of the week" syndrome. Most change initiatives, no matter how carefully planned, and are doomed before they even begin because they are designed as one-time events. They do well enough in temporarily focusing excitement and energy around a given program, and the initial results can seem very promising, but the lack of long-term follow through is their fatal flaw. The problem with functional organizational structure is that employees get the message that they have a job to do but that they must also pay attention to the program and that don't see the change as something integral to their daily activities but as something quite outside of it (, 2001).
If cultural change initiatives for the functional structure in Dyson have arrived with fanfare and faded to obscurity in the past, workers may even see the new initiative as something to merely be endured until they can return to their normal routine. Such cynicism hobbles the success of any current or future change plans. Successful implementation of the functional structure is very much within the grasp of any organization if senior management is willing to think long-term. For change to be sustainable it must be completely integrated into the very structure of the company and its performance system from the CEO to the employees. Business Management must be committed to both the philosophy and the implementation of functional structure (, 2005).
The strategies for the success of functional structure in Dyson are:
Ø Positioning the functional structure as a basic element in the organization's formal performance management system
Ø Designing launch programs to fully integrate outcomes into the core functional structure
Ø Educating & training all managers in effective performance planning and management practices such as how to handle specific functional structure elements
Warren Buffett is the company's chairman and CEO. Buffett has used the "float" provided by Berkshire Hathaway's insurance operations (paid premiums which are not held in reserves for reported claims and may be invested) to finance his investments. In the early part of his career at Berkshire, he focused on long-term investments in publicly quoted stocks, but more recently he has turned to buying whole companies. Berkshire now owns a diverse range of businesses including railroads, candy production, retail, home furnishings, encyclopedias, vacuum cleaners, jewelry sales; newspaper publishing; manufacture and distribution of uniforms; as well as several regional electric and gas utilities
2
CEO
Warren Buffett
4
Vice Chairman of the Board
Charles Munger
Director
Charlotte Guyman
3
Director
William Gates
4
Director
Susan Decker
Director
David Gottesman
2
Director
Howard Buffett
9
Director
Thomas Murphy
4
Director
Ronald Olson
6
Director
Walter Scott
3
Director
Donald Keough
4
Director
Stephen Burke
5
MidAmerican Energy Holdings
David Sokol
Geico
TN
NetJets
RS
2
Reinsurance Division
Ajit Jain
CFO
Marc Hamburg
MidAmerican Energy Holdings
GEA
Accounting & Control
DJ
They are expensive to implement, offer a poor return on investment and fall short of achieving the organization's goals to better enhance good business performance. This happens because organizations don't plan for sustainable change into a functional organizational structure. In other words, they succumb to what employees often refer to as "program of the week" syndrome. Most change initiatives, no matter how carefully planned, and are doomed before they even begin because they are designed as one-time events. They do well enough in temporarily focusing excitement and energy around a given program, and the initial results can seem very promising, but the lack of long-term follow through is their fatal flaw. The problem with functional organizational structure is that employees get the message that they have a job to do but that they must also pay attention to the program and that don't see the change as something integral to their daily activities but as something quite outside of it (, 2001).
If cultural change initiatives for the functional structure in Dyson have arrived with fanfare and faded to obscurity in the past, workers may even see the new initiative as something to merely be endured until they can return to their normal routine. Such cynicism hobbles the success of any current or future change plans. Successful implementation of the functional structure is very much within the grasp of any organization if senior management is willing to think long-term. For change to be sustainable it must be completely integrated into the very structure of the company and its performance system from the CEO to the employees. Business Management must be committed to both the philosophy and the implementation of functional structure (, 2005).
The strategies for the success of functional structure in Dyson are:
Ø Positioning the functional structure as a basic element in the organization's formal performance management system
Ø Designing launch programs to fully integrate outcomes into the core functional structure
Ø Educating & training all managers in effective performance planning and management practices such as how to handle specific functional structure elements
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