The Case Organisation: Disney

1. A critical comment and context on Disney

After opening its doors in 1920, Disney has become one of biggest media brands the world
has ever seen. Boasting multiple business franchises, dozens of theme parks, and one of the
best animation studios, this multinational organisation has thrived over decades (Artz, 2004).

The Walt Disney Company (then named the Disney Brothers Cartoon Studio) started on
October 16th, 1923 as a project between Roy Disney and Walt Disney (Body, 2016). In its
infancy, organisation distribution rights and multiple pitfalls nearly crippled the company.
However, through determination and good business practice, Disney overcame these hurdles,
purchased a studio in Hollywood, and produced two successful films (Artz, 1004). In 1928
Mickey Mouse was created, further increasing the organisations success. In the same period
Minnie Mouse, Donald Duck and various other characters were invented, stabilising the
foundation of Disney as an animation studio. In 1932, a series of short animated films called
“Silly Symphony” won Disney its first Academy Award. This award paved the way for
numerous accolades given to the organisation in years to come (Bodey, 2016).

The year 1955 saw another milestone for Disney: The opening of Disneyland in California –
the first Disney theme park. In the succeeding years Disney continued producing films and
building theme parks, including an international park in Tokyo (Artz, 2004). The organisation
was also able to survive several takeover attempts during this period. In the last half century
Disney launched a channel on cable T.V and established a number of studios and
subdivisions (e.g., Touchstone Pictures), ensuring its impact over a larger market. CEO
Michael Eisner and partner Frank Wells led Disney into the 21st century as a successful team.
Bob Iger succeeded Eisner as CEO in 2005 (Bodey, 2016). In 2006, Disney solidified its
focus on digital animation with the purchase of Pixar Animation Studios (La Monica, 2006),
who had previously made movies such as “The Incredibles”, “Finding Nemo”, and “Toy
Story”. Pixar continues to be a success under the Disney umbrella. Another huge win for
Disney was acquiring Marvel Entertainment in 2009, providing Disney with the rights to
many superhero franchises, like “Deadpool” and “Iron Man” (La Monica, 2006).

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In the digital age, Disney has continued its expansion, purchasing Lucasfilm (giving it the
right to Star Wars) and Maker Studios, providing Disney with its own digital network in 2007
(Body, 2016). In late 2019, Disney will unleash its own digital streaming network. Similar to
Netflix, the network will allow subscribers to watch Disney content whenever they wish.
After acquiring 21st Century Fox media for $71.3 billion on March 20th, 2019, Disney has
officially earned the label of biggest media powerhouse on the planet (Statista, 2017).

Although many of the most successful organisations in the world have used the formula of
keeping costs down and sales up, Disney, the leaders and the organisation, adopted a different
route to success. By continuously innovating, staying abreast of technology, and pushing the
boundaries, Disney grew from a small animation studio to an overall family entertainment
experiencing – boasting cruise ships, theme parks, and merchandising, to name a few (Body,
2016). Disney has worked constantly to maintain a positive organisational culture and adopt
good business and leadership practice. Described below is the theory that Disney used as part
of its formula for success.

2. Application of organisational theory to Disney

Although Disney has had to adopt new business practice and thus incorporate differing
organisational theories throughout the ages, the Postmodern theory clearly resonates highly
with Disney due to its continuous reinvention. Postmodern organisations have departed from
traditional views of what an organisation is and ought to be, as demarcated by the ties to
rationalism that underlay the Modern theory (Hatch, 2018). Opting instead for original and
new forms of practice, postmodern organisations, such as Disney, are able to respond
appropriately to the changing environment and conditions that present in a society that is
moving towards Postmodernism (Dischener, 2015).

Disney is identified as Postmodern both by the degree to which they are not modern in their
epistemology, and to the extent to which they are seen to create and embrace different and
novel practices of regulation and operation (McAuley, Duberley, & Johnson, 2007). That
being said, postmodern organisations do need to adopt some methods of the modern
organisation to have a solid foundation (Menguc & Auh, 2010). Thus, Disney may be a

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hybrid of postmodern and modern theories, running on a modern core with a postmodern
epistemology.

The postmodern theory and structure of Disney Studios facilitates the maintenance of
synergy through operations of different yet related organisational divisions (Hatch, 2018). A
corporate theory, resulting in the organisational structure, relays the design of business,
including the extent and pattern of management interaction (Ashkenas, Ulrich, Jick, & Kerr,
2015). An analysis of Disney’s structure highlights cooperation between various divisions,
giving the organisation a competitive advantage. An example of this is the extent to which
the production studio influences the strategy of the various amusement parks. This synergy,
typical of a postmodern organisation, is reflective of Disney’s mission statement and
corporate vision. The postmodern theory and structure of Disney ensures it remains
competitive in the current global market by empowering the organisation to effectively
change and shape itself to the evolving technological and consumer market.

Advantageously, Disney’s postmodern orientation supports the diversification and synergy of

the organisation (Menguc, & Auh, 2010). This is ideal, as Disney lists diversification as a
core strategy for growth in the global economy (Bodey, 2016). The postmodernist
perspective applies reflexivity, which incorporates not taking assumptions as the truth, and
questioning the values taught by the modernist school of thought (Woods, 1999). As
mentioned previously, Disney fuses modernist ideology into the postmodern growth of the
organisation. This can be seen in the structure of Disney, which enlists control of a
centralised manager, making cooperation and communication among the business divisions
easy (La Monica, 2006).

It is evident is Disney’s organisational structure that it is not able to fully adopt

postmodernism. Rather, operations have remained centralised through groups which function
in different areas, limiting overall diversification of the business (Ashkenas et al, 2015).
Another factor which demonstrates Disney’s modern core is the well-known Disney
branding, which may limit its product development (Artz, 2004). Disney may be advised to
adopt another form of branding or logo for products that are not necessarily targeted to youth
or the family. Disney has also been criticised for pushing identity politics, which is a well-
known factor of postmodernism (Menguc, & Auh, 2010). A result of identity politics is often
hyper-individualism which may destroy group identity and cohesion. For this reason, it may

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be beneficial for Disney to keep tangents of modernist though and ideals for the organisation
to remain cohesive.

3. Professional applications and considerations for the I/O Psychologist

In an organisation that adopts postmodern thought such as Disney, the I/O Psychologist will
need to consider the following:

 Globalization: As Disney is a successful organisation, it has clearly kept up with the

globalization trend. This has crucial implications for the I/O psychologist.
Globalization, as well as facets of postmodernism, call for cross-cultural leadership
rather than traditionally Western, white male led organisations. This requires changes
in the policies and practices of the organisation. As an example, heterogeneous teams
and rules will have to be incorporated in different areas and at different levels, instead
of one overarching set of rules to govern the entire organisation. The I/O psychologist
at Disney will have to be skilled in change management, as applying factors of
globalization to the organisation results in an inclusive organisational culture and
allows for capitalization of diverse employee strengths.

 Diversified Recruitment: As Disney has to recruit on a global level, it has to make

use of recruitment strategies that are outside of the norm. Computer based human
resource systems are a requirement, meaning I/O professionals have to be
technologically competent. Gamified assessments will also have to be implemented,
as these are more readily understood by potential employees who speak a different
language or are from a different culture. This fits in with the aspect of postmodernism
which iterates that no boundaries should be implemented regarding race, gender, age,
or social class.

 Technology-Enabled Training: Multiple training methods will have to be used at

Disney as it is a global entity that needs to train people from all walks of life. Some
hands-on training will be needed, but virtual training is a clear necessity. The online
instruction required at Disney allows more employees to be reached at once. It also
allows people from different locations to be trained together, simplifying logistics. In

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 this regard, the I/O psychologist will have to be knowledgeable of all training used in
the organisation. Additionally, individuals within the organisation will need to be
identified for training and development needs, so the I/O psychologist needs to be
competent of this in a large-scale work setting.

 Innovation: Continuing innovation and advancing technology is one of the most

pressing issues for I/O psychologists in the 21st century workplace. The economic
system at Disney, as well as most organisations, is based on growth. I/O psychologists
have noted there is a drive for continuous innovation for the organisation to remain
competitive in a changing economic environment. Thus, an I/O psychologist must
know how to foster innovation, keep abreast with research in the field, and understand
the implications new technology has on employees.

4. How could Disney look in the future

Looking at the growth as the key driver of Disney, I envision the core focus to be on creating
revenue in the resorts and increasing/maintaining viewership. Another aspect prominent for
Disney is the unleashing of its streaming service. After absorbing Lucasfilms and Century
Fox Media, Disney will have to upgrade its theme parks to showcase famous characters from
the media houses, such as Princess Leia and other Star Wars attractions. In keeping with the
postmodern tenant of the organisation, Disney is sure to employ a diverse range of
individuals, keeping the organisation popular internationally.

As Disney expands globally, we can expect many more theme parks and attractions to pop up
over the world, creating thousands of jobs. These jobs are likely to be skilled in nature,
creating a deeper knowledge economy within the organisation. Places that already have a
Disney Land are likely to gain two or three more as the corporation unleashes new characters
and gains more attraction among the general public. The technology in these parks will be
unparalleled, attracting individuals from all over the globe. Virtual reality is likely to be
incorporated at a greater extent, with superhero holograms and interactive fairy-tale
princesses. The parks will probably make use of cell phone technology such as food delivery
and ride entrance apps to save time for park visitors. Disney is also likely to absorb more of

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its competitors, such as Viacom and DC, allowing it to maintain its standing as the largest
ever multimedia organisation.

References

Artz, L. (2004). The Righteousness of self-centered royals: The world according to Disney
animation. Critical Arts, 18(1), 116-146.

Bodey, M. (2016, March 19). Disney and Pixar: animation film studios boss Ed Catmull talks
success. Retrieved from The Australian:
http://www.theaustralian.com.au/arts/review/disney-and-pixar-animation-film-
studiosboss-ed-catmull-talks-success/news-story/027053934d8d9fb9f138b5105976bbe6

Hatch, M. J. (2018). Organization theory modern, symbolic, and postmodern perspectives.

Oxford: Oxford Univ. Press.

La Monica, P. R. (2006, January 25). Disney buys Pixar. Retrieved June 19, 2017, from
CNNmoney.com:
http://money.cnn.com/2006/01/24/news/companies/disney_pixar_deal/

McAuley, J., Duberley, J., & Johnson, P. (2007). Organization theory: Challenges and
perspectives. Harlow, England: Prentice Hall/Financial Times.

Statista. (2017). Disney-Statistics and Facts. Retrieved from

https://www.statista.com/topics/1824/disney/

Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The boundaryless organization:
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Dischner, S. (2015). Organizational structure, organizational form, and counterproductive

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Menguc, B., & Auh, S. (2010). Development and return on execution of product innovation
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Sakhartov, A. V. (2016, January). Selecting Corporate Structure for Diversified Firms.

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