Submitted By:SWARUP SAMAL

CHANDAN KR. DUBEYGYAN SWAROOP DAS

OVERVIEW

Ben Cohen & Jerry Greenfield opened an ice-cream parlor in Burlington.

Primary goal was to make & sell super-premium ice-cream.

The parlor grew to a $45 million company with 150 employees in just 10 years.

It had an unique culture with emphasis on fun, charity & goodwill towards fellow workers up and down the line.

BEN COHEN AND JERRY GREENFIELD

BEN & JERRY’S ICE CREAM PARLOR

HAS BEN & JERRY FORCED TO GROW ?

The company doubled it’s size each year between 1978 & 1986.

Growth was maintained for it’s survival.

Market for super premium ice-cream was maturing in 1980’s.

There was a host of new competitors.

In 1985, for the establishment of new factory with greater capacity to meet the demands.

IS BEN & JERRY’S ORIGINAL CULTURE HINDERING THE

ORGANIZATIONAL EFFECTIVENESS ?

Organisational culture:

The organization began as more than just a “profit-making venture”.

Gave emphasis on fun, charity & goodwill towards fellow workers up & down the line.

Managers wore jeans & T-shirts. No executive was allowed to earn more than 5 times what

the lowest paid employee made.

They provided free therapy sessions to the employees.

CONTINUED….

Monthly holiday for staff meetings.

Decentralization or horizontal communication in company’s decision making process.

Donation of 7.5% of company’s income to the society development.

Handicapped were also hired for employment.

LACK IN ORGANIZATIONAL EFFECTIVENESS

Managers started wearing tie.

Centralization took place – one way comm. down the line took place

Departments started duplicating work

Policy of 5:1 ratio of salary got failed

Managers complained about making 60-70% higher salary at other places

Policy of 5:1 ratio made the recruiting difficult.

CAN BEN & JERRY’S MAINTAIN THEIR ORIGINAL CULTURE AND AT THE SAME

TIME, CONTINUE TO GROW ?

Yes, Ben & Jerry can continue to grow by maintaining their original culture. It can be achieved if only they maintain :

Flexible task definition

Decentralized control

Lateral communication

Low formalization

WHAT TYPE OF STRUCTURE DID BEN & JERRY’S HAVE IN IT’S EARLY YEARS ? TODAY ? WHAT FACTORS BROUGHT

ABOUT THIS CHANGE ?

Ben & jerry’s early structure:-

Organic Structure:

Flexible task definition

Decentralized or diverse control

Lateral or horizontal communication

Low formalization ( less rules & regulations )

Ben & Jerry’s today’s structure :-

Mechanistic structure:

Low flexibility

Departmentalization

Rigid task allocation

Centralization control

One way ( vertical ) communication

High Formalization ( strict rules & regulations )

FACTORS INVOLVED IN CHANGE

Survival of the company

Existence of new competitors in the market

High demand for ice-creams which lead to high production.

Growth rate slowed to 40% in 1987-1988.

Company had to retain it’s position on the super market shelves.

IF YOU WERE A MANAGEMENT CONSULTANT, WHAT ADVICE WOULD

YOU GIVE BEN ?

Recommendations :

A joyful work environment where people could work hard & have fun at the same time.

Employees having role in decision making Org. must be more than a profit making

venture

Donation for social welfare

STEPS TO FULFILL THE VISION:

Decentralization ( horizontal communication )

Flexibility of doing work

Employee centric

Maximization of shareholder’s value

THANK YOU…