As the economy fluctuates, the burden is placed on organizations and the people they employ to respond quickly without losing momentum. The external pressure to change under adverse conditions provides the foundation for ambiguity and inconsistency — the building blocks of organizational misalignment.

The study of misalignment begins by understanding that organizations are structured in one of three basic forms. The form is determined by four factors. The organization is functional when these four factors are aligned as described below.

Study each organizational form and think about which one most closely describes your environment. Be sure to make note of any current or potential misalignment. Later, we’ll discuss options and examine ways to cope with whatever misalignment you discover.

BOTTOM LINE ORGANIZATION

Purpose — Profit

The bottom line organization has one driving purpose—to make a profit. Managers are charged with reducing costs and increasing revenue. Decisions are based on rate of return for the investors. New employees are hired, and new equipment is purchased only after management demonstrates how such actions will improve profits.

Function — Productivity

The role of management is to raise the level of productivity without adding to the cost of the product or service. Staffing hours, production schedules, and distribution strategies are based on getting more out the door. Emphasis is placed on speed and volume. Research and development are limited. Products and services are discontinued if they fail to cover the cost of production.

Relationship — Contract

Wages, vacations, benefits, job security, and promotions are based on how much each employee contributes to the bottom line. Employees are expected to be at work on time and to work hard while they are there. Discipline is tight and rules are strictly enforced. Layoffs are based on the needs of the organization. The performance systems focus on continuous improvement.

Problem — Efficiency

Doing more with less is the common theme. Managers focus on eliminating mistakes and improving quality. Employees are hired at entry level and trained on-the-job. High rates of employee turnover are expected. Supervisors balance simultaneous demands for quality and quantity. Rewards are given for ideas and suggestions that improve the bottom line.

MIDDLE LINE ORGANIZATION

Purpose — People & Profit

The middle line organization looks at people as the most important factor in generating revenue. Growth and development of the workforce are closely aligned with organizational objectives so that both will be together for the long term. HR is focused on hiring people who fit into the organization’s culture. Training and development are important recruiting and retention factors.

Function — Loyalty

Keeping employees happy and satisfying their needs are key features of the middle line organization. Building employee allegiance is important to management. The views and opinions of veteran employees are sought as part of the decision-making process. Those who’ve been employed the longest are highly respected as the trustworthy pillars of the organization.

Relationships — Family

Employees are encouraged to view the organization as their extended family. Managers help people resolve personal problems. Acknowledgment of birthdays, illnesses, deaths, marriages, and anniversaries contribute to the family atmosphere. Orientation programs make new hires feel welcome and acquaint them with the ways of the workplace family.

Problem — Communication

Keeping the workforce informed is a high priority. Employees expect notification of such things as safety hazards, production records, sales totals, and promotional opportunities to appear on notice boards and in periodic emails. Managers use multiple communication media to provide frequent, adequate, timely, helpful, and accurate information.

TOP LINE ORGANIZATION

Purpose — Service & Profit

Meeting the humanitarian needs of the local community is the primary purpose of the top line organization. The geographic area it serves supports its objectives through volunteering time and providing donations. Minimizing expenses maximizes income and profit. Managers spend time identifying new funding sources and planning new programs to serve an expanding population.

Function — Visionary

The ongoing challenge is to decide what the organization should do in the future. Extensive methods are used to gather information, conduct research, identify trends, and forecast growth opportunities and needs. Managers are pro-active innovators who frequently gather to discuss predictions, hopes, and preferences relating to the sustainability of their area of responsibility.

Relationship — Ideals

People are attracted to the top line organization because they want to make a difference in the lives of others. Employees believe that what they do is important to the community and contributes to the greater good. The opportunity to participate in a worthy cause is a strong motivator and contributes more to job satisfaction than do promotions or higher salaries.

Problem — Consequences

Decision makers come together frequently to identify and resolve important issues facing their organization. Before a proposal is considered, alternatives are explored in terms of what each might mean to the people involved. Management adheres to the principles of empowerment to ensure that everyone understands both the near and the long-term consequences of their actions.

Sources of Misalignment

Realignments are a common practice during economic down turns, technological changeovers, and global market shifts. But in recent years it seems that organizational misalignment happens more frequently and is leaving a deeper, more negative impression on those feeling rejected.

One reason may be that most employees expect companies to function like middle line organizations. After all, they have been conditioned to expect employers to supply jobs to meet their family needs. But in today’s unpredictable economy, employers are sometimes forced into becoming a bottom-line organization just to survive.

There is nothing wrong with being a bottom-line company, if it is properly aligned and clearly communicated to the employees and customers. But when management says one thing, yet does another, that organization is misaligned and fraught with opportunity for rejection.