“Disney's products stand on their own and outshine all others. Laughter is America's most important export" (Disney News Website, 2002). This statement stressed the importance of having fun as well as working. Employees love what they do and want their employees and customers to love it as well. The basis of Walt Disney is reaching the child in us through attractions for the children as well as the adults because the company’s emphasis has always been on family entertainment.
Disney provides various training programs and learning opportunities. Cast members (Disney employees) are trained on the company’s business ethics, integrity and the diversity of the different programs. They are currently working on developing an e-Learning program to allow cast members from around the world to log on and access learning opportunities at their convenience. “Everyone here is smart, creative, insightful and interesting", says Steve Wadsworth, President, Walt Disney Internet Group. (Disney’s Corporate Website)
Walt Disney prides itself on great customer satisfaction, but even more so in employees that represent the company. “The goal at Walt Disney World is to make its employees feel honored, valued, and recognized for doing the things they know are expected of them. At Disney World, a custodian is as important as the person who plays Mickey Mouse,” stated Hansford (2003, p.1). The theory behind this thought process is that if the employees are not happy then the guests will not be happy. Steps are taken to ensure employee satisfaction and rewards are given for hard work. “Recognition was designed for behaviors, actions, goals, and values the organization wants employees to exhibit” stated Hansford (2003, p.1). Disney honors its cast with the “Partners in Excellence” award. Every cast member is eligible from the custodial crews to the characters. The award includes an exclusive party at the end of the year with live entertainment, food, champagne, and private access to the Magic Kingdom for the occasion (Hansford, 2003). Being an Employee of the Disney Corporation also carries a level of status in the business world. Not only are those famous “ears” seen as a status symbol among Disney Employees but they are also respected by many of the leading companies across the globe. Walt Disney managers model a leadership style that many other companies are crediting as being the link between quality employee experience and quality guest experience, and inevitably to the success of the business as a whole (Taylor & Wheatley-Lovoy, 1998).
Walt Disney World is also known as “the Magic Kingdom”. Employees upon being hired are required to go to training classes where they learn, “most importantly…that their job is to create happiness” (Taylor & Wheatley-Lovoy, 1998, p.24). Through the amazing imagination of Walt Disney’s story telling we are all able to experience the “magical moments” that have brought us so many characters. “Walt was our bridge from the past to the future” (Walt Disney’s Biography, 2, 2005).
One organizational activity that occurs at Disney is called “Disney Dimensions, which is a program we run two or three time a year for 25 senior people from every division of the company worldwide” (Wetlaufer, 2000, p. 120). The people who are a part of that program go to Disneyland and learn how to do the jobs of the people at the park like trimming the bushes, working in concession booths, or working in a hotel. They also spend time in other branches of the company. They view many divisions of the company and are not allowed to do their normal jobs for a week. The participants end up leaving the program renewed such that they are able to do their jobs better and with less assistance from their supervisors.
By mixing different groups of people together Disney emphasizes the need for diversity. Diversity is highly valued within the company because it helps in creating new ideas. The management at Disney organizes meetings for employees where new ideas can be shared (Wetlaufer, 2000).
Disney believes that people are diverse and are willing to support that as long as this does not negatively affect their market. For instance, Disney owns the network that ran the television show “Ellen” whose lead character was the first openly gay person on television. Disney also sponsored “Gay Day” at their parks. However, when controversy arose from those two steps, the people at Disney backed down. Shortly after the character on “Ellen” came out, the show went off the air. Also, due to criticism for sponsoring events for gays, a Disney spokesperson tried to “distance the company” from those events and promoted more family type events instead (Elsasser & Stateman, 1997).
Another controversy that Disney was involved in was about supposed subliminal messages that were on Disney videos that were inappropriate for children. Again the company tried to distance themselves from the controversy by denying that the messages or pictures in the scenes were intentional. The videos were then cleaned up and fixed quietly without bringing attention to the fact that changes were made (Ostman, 1996).
The organizational structure currently in place at Disney is the multidivisional structure. Known as the M-form, this concept was developed in the 1920s and based on the premise that an organization is separated into distinct divisions with its own functional hierarchy (Hoskisson, 1993). The top executive officers of the organization are responsible for the strategic operations and financial direction of the collective divisions (Hoskisson, 1993). Disney is comprised of four major business segments, a Board of Directors, and a CEO. The major business segments are Walt Disney Studios, Walt Disney Attractions, Disney Media Networks and Consumer Products. Robert Iger will succeed Michael Eisner as CEO of Walt Disney Company in September 2005 (Disney’s Cororate Website, 2003).
In November 2004, Disney successfully converted to a shared services organization (SSO). An SSO is an efficient and effective business model that allows an organization to consolidate support functions within the organization to reduce costs and increase organizational value (Ferrarini, 2000). One aspect of Disney’s SSO is the single integrated processing platform (SAP) that delivers a dynamic workflow which generates a proficient business process for the organization (Ferrarini, 2000).
The core ideology of Disney states “We create happiness by providing the finest in entertainment for people of all ages, everywhere” (Disney’s Corporate Website, 2003). Disney has four service values that underlie the service theme. They are safety, efficiency, courtesy, and show. To ensure that its core ideology comes across to people, Disney has three systems to deliver the message through its cast, setting, and processes (Disney Systems Article, 2005). The Disney cast has trained, chosen, and motivated staff throughout the organization. Processes are the policies and procedures that are used to deliver the service. Of the three systems, process is the most critical. At Disney processes are contemplated from the client’s point of view and interventions are put into place to ensure a speedy solution should a situation arise.
The selection process for vacant positions within Disney is filled through traditional means (i.e. posting the position, accepting resumes, conducting interviews, and choosing the best candidate). In keeping with the organizational culture of innovation, quality, community, storytelling, optimism, and decency, Disney incorporates specific selection and replacement policies for the CEO and Board of Directors. Each year, the CEO meets with non-management Directors to discuss potential successors and to develop a written procedure for transferring CEO responsibilities (Disney's Corporate Website, 2003). These written procedures are periodically discussed with the Chairman of the Board and the Governance and Nominating Committee throughout the year.
The Disney Board of Directors selects its own members through a screening process assisted by the Governance and Nominating Committee. To combine continuity with new, innovative ideas and experiences, the Corporate Governance Guidelines imposes the following stipulations in which a Board Member must resign: change in current occupation for any given reason, reaching the retirement age of 72, or 12 years of service as a Board Member (Disney’s Corporate Website, 2003).
Disney is keeping its commitment to being the Happiest Place on Earth by being concerned with the needs of shareholders, as well as customers. More companies are starting to look to the success of Disney and apply some of Disney’s philosophies and techniques to their own companies. Disney focuses on organizational processes and a sense of ownership by allowing employees to communicate their ideas about the operations of the company. The constant input of ideas allows Disney to proactively keep up with the ever-changing world. The “Magic” of the Disney is spreading throughout the world.
References
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