DESCRIPTION OF THE ORGANIZATION
Company Chosen - Cisco Systems Inc.
Cisco Systems, founded in 1984, is a global technology conglomerate headquartered in San Jose, California. The company specializes in networking hardware, software, and services, playing a pivotal role in shaping the world of information technology and the internet. With a workforce of more than 84,000, Cisco is one of the world’s largest technology companies, ranking 82nd on the Fortune 100 with over US$51 billion in revenue.
Cisco is thought by many to have had a significant impact on the development of the Internet. Many of its technologies are fundamental to Internet access, with its routers and switches routing data across networks globally. Cisco also invests heavily in research and development, driving innovation in areas like cybersecurity, cloud computing, and the Internet of Things.
Cisco’s influence extends to diverse sectors, including telecommunications, cybersecurity, and networking solutions, underlining its significance in the digital age.
ORGANIZATIONAL STRUCTURE
Cisco’s Organizational structure has undergone significant changes since its inception . But before understanding that , we need to understand what a company’s “organizational structure” actually means .
An organizational structure is a system that outlines how specific activities are handled to fulfill a strategic mission. It defines rules, roles, and obligations, and is essential for a company’s success. There are various types of organizational structures, each with its own advantages and disadvantages , however for the purposes of this assignment , we’ll only focus on the ones that Cisco has adopted over the years .
Initially , Cisco followed a decentralized model with three main customer-focused business units—Service Provider, Enterprise, and Commercial . In this model , the decision-making power was distributed among various levels of the organization, allowing for more autonomy and flexibility.
But In 2001 , Cisco shifted towards a more centralized, functional structure . Now , here the decision-making power was concentrated at the top level, with a clear chain of command and limited autonomy. This change was required because of a market downturn which necessitated layoffs to reduce operational costs and also a total revaluation of the company strategies .
Today , Cisco employs a kind of a hybrid approach that integrates different cross-functional teams and councils, allowing for agile decision-making and rapid innovation. The closest model which resembles this approach would be the matrix organizational structure , in which the team members are supervised by multiple team leaders across different departments. It is essentially a combination of two management approaches: one that groups people by their function (like marketing or engineering) and another based on projects they’re working on.
Employees in a matrix structure typically report to both a functional manager (based on their expertise or skill set) and a project or divisional manager (based on the specific project or product they are working on).
This model is essential in a fast-paced technology environment , as it helps to improve the organization’s flexibility . In Cisco’s case, this structure is used to effectively manage the its wide range of portfolio of products and services that it offers . The cross functional- teams and the reporting relationships in this structure make it easy for the company to quickly adapt to market shifts and customer needs .
DIVERSITY MANAGEMENT AT CISCO
One of the best things that Cisco practices is that it hugely recognizes that a diverse workforce is crucial for fostering innovation and creativity , and as a result , the company works hard toward actively promoting diversity across various dimensions of the organization , including gender, ethnicity, race, age, and abilities.
We can see Cisco's commitment to diversity through its extensive employee resource groups (ERGs), which support various communities within the organization, such as the Cisco Black Employee Network, Connected Women, and the Veterans Enablement and Troop Support group.
Also , as of the fiscal year 2023, Cisco has managed to achieve its most diverse workforce yet, with ongoing initiatives to enhance representation across all categories. This commitment includes partnerships with organizations that focus on underrepresented groups, such as the National Society of Black Engineers and the Society of Women Engineers. One important thing to note here is that Cisco's diversity strategy is not merely about recruitment , but it also emphasizes on creating an inclusive culture where all employees feel valued and empowered to contribute and where their individuality is accepted .
BENEFITS OF DIVERSITY MANAGEMENT
Effective diversity management at any organization can lead to lasting benefits , At Cisco , they can be seen in the form of :
Fostering Innovation
Having a diverse workforce automatically brings a variety of new perspectives and ideas, fostering creativity and leading to innovative solutions that can better meet customer needs and solve novel problems .
Improved Employee Satisfaction
Effective diversity management means an inclusive culture and this in turn enhances employee morale and satisfaction, which can lead to higher retention rates and lower turnover costs.
Competitive Advantage
By improving diversity, Cisco is able to position itself as a leader in the industry, attracting top talent and appealing to a broader customer base. This diversity can enhance Cisco's reputation and market reach, inherently contributing to business success .
BARRIERS OF DIVERSITY MANAGEMENT
No single organization is perfect , and despite its strong commitment to diversity, Cisco also faces several challenges in managing diversity effectively, these include :
Biases in Recruitment
We need to understand that employee recruitment is done by fellow humans only , and these people are in no sense perfect . They too grapple with unconscious biases that can affect hiring and promotion . These biases can hinder the full realization of a diverse workforce's potential.
Practical implementation of Diverse Perspectives
Ensuring that diverse voices are not only present but also heard and integrated into decision-making processes can be challenging. There is often a risk that diverse perspectives may be overlooked in favor of more dominant voices.
Retention of Talent
Attracting diverse talent is only half the job done; retaining this talent requires ongoing active commitment to inclusivity and career development. Cisco must continually assess its workplace culture to ensure it meets the needs of all employees .
RECOMMENDATIONS TO IMPROVE DIVERSITY
Even though the principles of inclusivity and diversity are an active part of Cisco’s company principles , there are still a number of methods it can adopt in order to improve diversity management :
Improved Training Programs
In order to effectively combat barriers to diversity management , comprehensive training programs focused on identifying unconscious biases , cultural competency, and inclusive leadership should be conducted to equip employees with the skills needed to foster an inclusive environment.
Strengthen existing ERGs
One of the things that Cisco is doing right is that of having ERGs. However , Cisco should look to expand the role and resources of the ERG’s to ensure they have a significant impact on policy-making and organizational culture. This includes providing funding, leadership training, and visibility within the company.
Focus on Career Development to improve retention
Create specific career development programs for underrepresented groups to ensure equal access to advancement opportunities. This includes mentorship programs and leadership training specifically designed for diverse employees.
Integrate Metrics for Accountability
Establish clear metrics to measure the effectiveness of diversity initiatives. Regularly assess progress and hold leadership accountable for meeting diversity goals.
REFERENCES
1. Cisco. (n.d.). Cisco | The Org. THE ORG. https://theorg.com/org/cisco
2. Cisco Systems (2001): Building and Sustaining a Customer-Centric Culture - CaSe - Faculty & Research - Harvard Business School. (n.d.). https://www.hbs.edu/faculty/Pages/item.aspx?num=36738
3. Inclusion and collaboration. (2023, January 30). Cisco. https://www.cisco.com/c/en/us/about/inclusion-diversity.html
4. Diversity, equity, and inclusion | Cisco ESG Reporting Hub. (n.d.). https://www.cisco.com/c/m/en_us/about/csr/esg-hub/people/dei.html
5. Cisco’s organizational structure and its collaborative approach to decision making - the Case Centre. (n.d.). The Case Centre. https://www.thecasecentre.org/products/view?id=93686
6. newsroom. (2001, August 24). Cisco Systems announces new organizational structure. https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2001/m08/cisco-systems-announces-new-organizational-structure.html
7. How Cisco’s commitment to DEI helped. (n.d.). https://www.csrwire.com/press_releases/781801-how-ciscos-commitment-dei-helped-it-keep-one-its-best-employees-23-years-and
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