Family Firms As The Most Ubiquitous Form Of Business Organisation In Uk Business Essay

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"A business can be considered a family business if its management and its ownership are concentrated in the hands of a family unit and if the members try to maintain or increase the presence of the family within the organization."

Hence, it is clear from above definition that it's depends on three main entities: the company itself, the family into it and the owners.

Family firms are the most ubiquitous form of business organisation in UK, which makes an requisite contribution in the economic growth and a key component of the private sector also benefiting the society through employment and support.

The three-circle model (tagiuri & davis, 1982)

As explain above, we can characterize a family business using three circles model: one signifies a family, one signifies the company, and one signifies share ownership.

In these systems individuals must manage issues within and across three overlapping groups

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Given that salfordia construction company is basically a family run organization, it is therefore essential to understand the overview of family business.

Family System

ownership

System

business

System

Tagiuri, R., Davis, J.A. (1982). Bivalent attributes of the family firm. Working Paper, Harvard

Business School, Cambridge, Massachusetts. Reprinted 1996, Family Business Review IX (2) 199-208

UNIQUE ADVANTAGES OF FAMILY BUSINESSES:

The following part summarizes some distincitive features of family firms -

Strong Organizational Culture:

As described in spb 2010 pg196, usually family businesses emanate a friendly environment that broaden to nonfamily members working in the organization. They form a strong relationship working with family, as well as with the company. In this integrated environment, an employee's knows there responsibility and productivity to achieved. Hence, this reinforced the company chances of success.

Furthermore, (Businesslike, 2010) summarize some more benefits of family firms:

Common Values:

In family businesses family are usually like to share the same tradition and ethical values on how works should be done, these bestows the company with additional sense of function and pride and a competitive edge for the business.

Loyalty:

The strong family bonding is very essential factor in family business, to overcome the tough times if occurs any and stick together and show the determination needed for success.

Stability:

There is always sense of stability in family businesses as they build their company for future generations encouraging the long-term growth and success, though it sometimes may produce failure to respond to changes.

Decreased Costs:

Family members support will always be there in family businesses even in the time of financial crisis they are more willing to do sacrifices for the sake of business which provides high amount of flexibility in cash flow of the company.

POTENTIAL DISADVANTAGE OF FAMILY BUSINESSES:

Family Business do have particular weaknesses, the following list summarizes the possible shortcomings in family firms:

Personal family problems such as separation and internal strife, might give room to conflicts and interruption to business.

Family firm generally like to adhere to the traditional style or strategies followed by preceding generation owing to this they fail to bring changes and implementation of new technologies.

A rigid culture tends to oppose outsiders, which may limit their exposure to external knowledge and new market opportunities.

Dominance of family members over the company may impact on non-family member's performance.

Dilute control over the family members may affect the growth of the company.

2.0 Salfordia - organizational culture:

Culture can be described in terms of the 'Character' of an organization or the 'Feel', and it can be felt whenever it is encountered.

Furthermore, Aronoff and ward (2003). explained the family organization as:

"Within family organization one is more likely to find an understanding of human relationships and motivation displayed not just in relation to family members, but to employees, customers, communities, and others." Aronoff, C. E., & Ward, J. L. (1995). Family-owned businesses: a thing of the past or a model for the future? Family Business Review, 8(2), 121-130 ORGANIZATIONAL CULTURE AND SOCIAL PERFORMANCE: INSIGHTS FROM THE EXPERIENCE OF FAMILY ORGANIZATIONS Eduardo Davel ,Diane-Gabrielle Tremblay

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Generally, it is said that healthy culture fortifies the high performance in any organization. Further below we will see the most distinctive cultural strength of family organization.

Distinctive cultural strength - a map of family firm: (LIFBRI Report, 2003).

STAKEHOLDERS

Reputation

Customer care & Continuity

Loyalty

Shared Rewards

Employee Training

CULTURE & VALUES

Ethics & integrity

Openness & consultation

Empowerment & delegation

Personal & informal style

Passion about the business

MANAGEMENT & GOVERNANCE

PERFORMANCE &

LONGEVITY

FAMILY

Lean management structures

Effective governance

Fast decision-making

Good use of non-family

Quality

Entrepreneurship

Stability & continuity

Flexibility & adaptability

Teamwork

Commitment

Wisdom

Emotional bonds

Above figure illustrate a schematic representation of the family cultural strength. Illustrating two things, first it shows the vital areas within which cultural strength are asserted, and then it shows that they all are interlink with each other and the core part (i.e.) family is interlink with all of them. As stated in LIFBRI Report (2003),

"Close knit family unit all work for common good."

2.1 Cultural web:

The unforeseen changes in organisational culture are the main problems company confronts in managing strategic change.

To overcome this situation and to analyze both the existing culture of Salfordia Company and its affects, there is need of analyzing the company culture.

Johnson and Schole's (2008) 'culture web' is one of the most used method to analyze the company culture.

Stories

Symbols

Rituals & routines

The

Paradigm

Power

Structure

Control Systems

Organisational Structure

Furthermore, described in (mindtools, 2010). We can see how each element influences the paradigm of Salfordia organisational culture.

Stories:

What stories do people currently tell about your organization? What reputation is communicated amongst your customers and other stakeholders?

Salfordia organisation operating in sound and ethical way from many years and developed a strong trust and relationships amongst customers and outside stakeholders,

What do employees talk about when they think of the history of the company?

As Salfordia is a family run company the whole company attitude is quite friendly and positive towards family employees and also towards non-family employees, at the same time they are also discussing about the company continuous downfall in the company's profit.

What stories do they tell new people who join the company?

Salfordia is looking for improvisation and modernization in the company to overcome the downfall of company turnover, hence they are addressing the new employees to cope with the current construction market condition of UK.

What heroes and villains appear in the story?

The promising heroes in the Salfordia would be one of the board members who recently completed his master degree in business administration who continuously pushing Salfordia for improvisation, and the villain would be the top members of the family who are unwillingness to do changes.

Routines and rituals:

What would be immediately obvious if routines and rituals changed?

Salfordia has very conventional processes and procedures from last many years and introducing changes could be rather resistant to organisational and cultural change.

However, one of the family member completed his master degree in business administration there is drive of change to implement new technologies and strategies for overall benefit of benefit of business.

What are the key rituals and what core belief do these rituals reflect?

Ritually all the work of Salfordia's has been obtained by traditional form of procurement method and the company has very established processes and procedure from many years and they are resistant to bring change in the old method, this reflect the company trust in conventional method.

What do training programmes emphasise the work culture?

To implement changes in the use of conventional method and to introduce new technologies and strategies there is need for Salfordia to arrange the training programme for the employees, which in turn could help the company to overcome the losses.

Control systems:

What is most closely controlled / monitored in Salfordia organisation?

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The primary objective of every customers Time, Cost & Quality these three important objectives may be closely monitored in the Salfordia Company.

Do employees get rewarded for good work?

As Salfordia is a family dominated company the incentives and bonus could be much more for family members and even non-family members are also be rewarded for good work.

organisational structure:

How flat/hierarchical are the structures?

In Salfordia organisation the structure is mainly mechanistic the decision making and to emphasize any new strategy is in the province of top management of the company.

Do structures encourage collaboration or competition?

In family runs business the opportunity of collaboration is much higher as all the members share the same objective and for Salfordia there is a need of collaboration with other companies for expansion and this will helps the company growth.

power structure:

Who has the real power in the organisation and how it is distributed?

The main power in the Salfordia is under the province of top management and they hold mainly all decision power and mostly the major stakes are under family members, thus the major role or power is distributed in and around family members.

Power Structures

Who has the real power in the organization?

What do these people believe and champion within the organization?

Who makes or influences decisions?

How is this power used or abused?

Example:

The owner believes in a low cost, high profit model, and is prepared to lose repeat customers.

The threat of docked pay keeps mechanics working with this model.

As these questions are answered, you start to build up a picture of what is influencing your corporate culture. Now you need to look at the web as a whole and make some generalized statements regarding the overall culture.

These statements about your corporate culture should:

Describe the culture; and

Identify the factors that are prevalent throughout the web.

In our example the common theme is tight cost control at the expense of quality, and at the expense of customer and employee satisfaction.

Family firms are made up of three interlocking sub-systems: the family, the ownership group, and the business. 

SWOT ANALYSIS

SWOT ANALYSIS Study of the factors which may have an impact on business or industry either in a positive or in a negative way.

Strengthis defined as any internal asset, technology, motivation, finance, business links, etc That can help to exploit opportunities and to fight off threats.

Weaknessis an internal condition which hampers the competitive position or exploitation of opportunities.

Opportunityis any external circumstance or characteristic which favours the demand of the system or where the system is enjoying a competitive advantage.

Threatis a challenge of an unfavourable trend or of any external circumstance which will unfavourably influence the position of the system.

strength

opportunities

S

W

O

T

wEAKNESS

THREAT

EXTERNAL ORIGIN

(attributes of the environment)

INTERNAL ORIGIN

(attributes of the organization)

HELPFUL

(to achieving the objective)

HARMFUL

(to achieving the objective)

Construction

Current economic instability may affect the construction industry.

Growth and advancement by competitors in the field

Price uncertainty by the suppliers

Generating new relationships in the market

Financial Issues

Immense company experience in the construction field.

Strong good-will in the market

Strong family morals

Renowned reputation throughout the North-West region of UK

Established Processes and Procedures

Keen to investigate in new strategies like collaboration

Working for both public and private sector

Readiness of company to invest in the cultural change

Upgradation of IT technology in construction

Overcoming the rescission through changes and expanding the business

Generating new relationships in the market

Public private partnership through public sector will bring additional opportunities

Be reluctant to change and embrace new technology

Alternative procurement system needs to be adopted to cope with current market scenario

Culture is too rigid or close

Lack of technological knowledge

Less information about modern strategies like collaboration

Less

A STEP/PEST analysis seeks to identify the external forces affecting a Salfordia organisation. This is a useful strategic analysis of organisation's Social, Technological, Economical, and Political factors of United Kingdom.

This analysis helps the company to evaluate the market scenario, and gives an idea of all different macro environmental factors that the company has to take into thought; it is a useful strategic tool to build up the strategy of the company. (MindTools, 2010)

2.1 step analysis:

The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as:

P

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2.1 analysing the Salfordia culture:

According to Charles Handy's (1976). He suggests that the organisation can be classified into four main types; Power, Role, Task and People. The purpose of the analysis is to assess the degree to which culture reflects the real needs and limitations of the organisation. (Lindsay Sherwin, 2010).

Following are the four main types of organisational culture described by Harrison (1972) and Handy (1976).

Handy illustrates the power culture as 'web'. He suggests that the power depends on central source or around one key individual. Power culture depends on trust and empathy in individuals than a group which allows quick decision process, saving the time and can react quickly to threat and dangers around it. Good control and better interaction with management and other team. Power cultures are generally found within a small, medium size or family-owned business. Lindsay Sherwin, (2010) Power Culture:

Figure 1: power culture (the web).

b. Role Culture: (th

Figure 2: Role Culture

This has been epitomizing as a Greek temple and is often typecast as bureaucracy. Nowadays, Role culture is common in most large organisation. In role culture organisation are divide into various functions and each members is assigned with a particular function and role. The role culture has a benefit of producing high levels of experts and different specialized team. In role culture the productivity of company can be increased as each employees focus on their particular job which is assigned to them. (learnmanagement2, 2010).

The task culture can be best representing as a net, where most of the power and decision lies at knots. A task culture is team work approached to complete a given task and give the sense of self confidence and motivation to employees as they are empowered to make decision within their team. The task culture is appropriate in the market where flexibility and empathy are important and in competitive market where quick changes in products are required. (learnmanagement2, 2010)c. Task Culture:

Figure 2: Task Culture

The structure is as diminutive as possible; cluster can be best described for this culture. The focus in this culture is on individual growth and it is individualistic form of culture. A people culture can only suitable for the self driven companies or an individual working on their own and taking their own decision, thus this culture is not suitable for business organisations. (Lindsay Sherwin, 2010).d. People Culture:

Figure 2: Person Culture (Cluster), (Lindsay Sherwin, 2010) citied in Handy (1976).

After critically analysing the Handy's (1976), four distinct cultures the culture which suits the Salfordia Organisation is Power Culture. Since, the Salfordia is family run business the power is concentrated in the hands of top management and from there the power exudes out to others in the organisation, the decision making process is entirely govern by the top management, though this culture provide quick decision process but the quality depends entirely on top boss and the other members of the organisation and the speed is achieve through empathy. Hence, the power culture is best suited to the Salfordia organisation while other culture might be suitable but this culture fits best for family run business.

2.1 Organisational structure:

According to Bernard L. Erven, (2010). "The organisational structure can be defined as the roles and activities required of people in order to meet the objectives of the business."

The structuring helps the organisation to achieve their career and personal goals.

Furthermore, Henry Mintzberg (1983). Defined organisational structure as "the sum total of the ways in which it divides its labour into distinct tasks and then achieves coordination among them".

Each arrangement contains six components as shown in figure below

Strategic Apex

Techno

Structure

Support Staff

Operating Core

Middle Line

The function of strategic apex is to instigate the strategy and direction ensuring that the organisation serves its mission in an efficient way. The apex is compromise of CEO and board of directors.

Strategic Apex:

Middle Line:

A middle line indicates the managerial position connecting strategic apex with the operating core.

Fig 1: The five basic parts of organization

Mintzberg (1983)

Operating Core:

The function of the operating core is to

perform the basic work and services of

the organisation.

Techno Structure:

The function of the techno structure is to analyze the organisation procedure and they may design, plan, change or train the operating core.

Support Staff:

The function of the support staff is to ensure that the support is provided to the organisation outside of operating work flow.

As stated by Mintzberg's (1983). "In each structural configuration, a different one of the coordinating mechanisms is dominant, a different part of the organization plays the most important role, and a different type of decentralization is used."

Mintzberg has explained five types of configuration from which the company structure can be analyzed as follows: refrence

Simple structure (basically no structure)

Machine Bureaucracy (dominated by technical/specialist priorities)

Professional Bureaucracy (dominated by skill of core staff)

Divisionalised Form (dominated by products/outputs)

Adhocracy (shared dominance of core staff and support services)

Structural configuration

Prime coordinating mechanism

Key part of the organisation

Type of decentralisation

Simple structure

Direct supervision

Strategic apex

Vertical and horizontal

Machine bureaucracy

Standardisation of work processes

Techno Structure

Limited horizontal

Professional bureaucracy

Standardisation of work skills

Operating Core

Vertical and horizontal

Divisionalised form

Standardisation of work outputs

Middle Line

Limited vertical

Adhocracy

Mutual adjustment

Support Staff

Selective decentralisation

Table 1: Structural configuration of organisation by Mintzberg (1983). Citied by Rod Gameson (2010). In week 3rd

With reference to Mintzberg theory the simple structure is closely matches the Salfordia organisation:

Fig 2: Simple Structure, Mintzberg

As Salfordia is family-owned medium size company and it is dominated by top management member of the company which are family members has direct supervision on other members, the vital part of organisation lies in the strategic apex (the CEO). They employ all their work to outside experts rather than employing them permanently in the organisation.

2.1 TYPES OF Organisational structure:

As stated by Ben Wakeling (2010). Organisation must have a structure to be successful, profitable and effective. It elucidate the roles and responsibility of each area of the organisation and structure also helps in defining the hierarchy of govern body within the business.

Flat Structure:

As stated by Suchi Moorty (2010). To describe their hierarchical structure and organisational chart the company uses the organisational structure. The flat or horizontal structure, tall or vertical structure are two main forms of organisational structure. In Flat organisation structure there is great level of communication flow, the management and employees work together to achieve the desired goal and objectives of company the decision power authority totally lies with the top management. This structure is best suited for small to medium sized organisation.

Functional Structure:

As stated by Ben Wakeling (2010). Functional organisation is structured exploring different areas each with their own area of proficiency. All the functional areas have their own team each includes marketing, design, finance, technical and human resources. When it comes to project, appropriate expertise is shifted to the particular department when needed.

Divisional Structure:

As describe by Ben Wakeling (2010). It is commonly found in large organisation.

Work such as design, manufacturing, assembling and sales all this varied functions are carried out in different locations and each of the department is self-reliant and is responsible for functions such as marketing and accounting. All department work toward achieving giving targets set by head office.

Matrix Structure:

As stated by Ben Wakeling (2010). Matrix structure is a combination of the functional and divisional structure, generally used for particular projects where expertise from various field are required. They team member have to report to functional and project manager.

2.1 Salfordia Current organisation structure:

Flat hierarchy

CFO

Contracts

Director

Business Planning Director

Industrial Build Director

External Director

T1

T2

T3

T4

T1

T2

T3

T4

T1

T2

T3

T4

T1

T2

T3

T4

T1

T2

T3

T4

Relatively wide span of control

Team members

Dominated by family members of Salfordia.

2.1 ORGANISATION STRATEGY

According to top business advisor Don Schwerzler, (2010). "Organizational strategy is concerned with envisioning a future for your family business, creating value in the eyes of your customers, and building and sustaining a strong position in the marketplace."

As per Miles & Snow's (1978). The four types of strategies classifying the business typology are as follows:

Defender Strategy:

This strategy operates in the organisations which work in stable and narrow product-market domains. They establish their position in market by bonding a good relationship with the clients and the top management are vastly expert in their working areas in market but they fail to discover the external opportunities.

Prospectors Strategy:

The organisation executing the prospector's strategy is always looks for new opportunities, innovation and ready to take risk. To implement this strategy the organisation must always be ready for change and flexible. In this type of environment innovation and creativity is important than efficiency.

Analyzer Strategy:

Analyzer is a well mix of the prospector and defender types or it is in the middle of both the types. In this strategy they maintain their current businesses stable and targeting to some extent innovation in new areas of business.

Reactor Strategy:

Organisations that follow this strategy don't have a constant strategy structure and act according to problem and threat arises at last moment.

After analysing the above strategies we can say that the Salfordia organisation is more highly concentrated in Defenders category. They fail to discover the external opportunities, though they establish their position in market by creating a good relationship with clients.

The philosophy behind the Kotter theory in managing change is: "The fundamental purpose of management is to keep the current system functioning. The fundamental purpose of leadership is to produce useful change."

Step 1: Establishing a Sense of Urgency:

According to Kotter (1996). To ensure the work is done on time it becomes necessary to develop a sense of urgency in the organization. The change is needed when the members of the company perceives the vulnerability in organisation. To bring the change in the organisation the employees should be inspired and motivated to take action and achieve the desired objectives. As said by Kotter (1996). ... "Without motivation, people won't help and the effort goes nowhere."

Following points should be considered to create the sense of urgency in Salfordia organisation:

There is a "felt-need" to change the organisation strategy to overcome the company downfall and to cope with the current competitive market.

The new opportunities should be implemented, outside consultant and other means of forces should be introduced to produce the effective work.

Goals and targets should be set idealistically high

Communication process should be open and everyone prospect should be taken into consideration to effectively run the company and avoid conflicts.

Identifying the company potential crises and risk and providing a detailed plan to mitigate the risk and crisis.

There is need of changing the current procurement system and the rigid structure of company; they should be more open to implement new thing.

Presentation and videos of unsatisfied customers, suppliers and unhappy shareholders should be shown to the employees and insist them to deal with them.

Step 2: Creating the Guiding Coalition:

After establishing the sense of urgency there is need of building the efficient team to smoothly run the organisation of Salfordia. As stated by Kotter, (1996). "Forming a coalition in the organization is critical as it helps in successful execution of projects." Nowadays project are getting more complex and it's not possible for single individual to effectively handle the project so there is need of coalition to support the change vision.

Salfordia can build powerful coalition if the following changes are practiced:

As Salfordia is a family run company it has all the right elements to make up a winning team: as said by Aron Pervin, (2010) "a defined leader; a sense of commitment to a goal; a small, tightly knit group; some measure of creativity; a sense of spirit and an awareness that cooperation is necessary in order to produce a "whole that is greater than the sum of its parts".

Hence, there is a need of assigning the leadership in organisation. In Salfordia all the top management/leader is of family and their entire portfolio are assigned and working effectively from many years there is only need of expansion and collaboration to achieve financial stability.

Effective and energetic team should be build to work together with trust and commitment to lead the change.

To effectively run the team, the opinion and problems of team members of family and non-family members must be dealt effectively. (Aron Pervin, 2010).

Step 3: Developing Vision and Strategy:

After building the team the company need to develop the vision which will help the Salfordia organisation to elucidate the direction to move ahead. The vision will help the Salfordia to bring the change in current structure and culture and it will also help in motivating the employees.

Furthermore, Kotter (1996). "Productivity will be increased between the team members and the manager if a manager creates a change vision and acts on it".

The following characteristics are important while creating a change vision.

With the falling profit and turnover the Salfordia need to adopt the vision which will allow it to survive the tough economic time and also ensure the steady growth in the process

The created vision should be enviable and also should be conceivable by the stakeholders.

With the continuous improvisation and modernisation in current competitive market there is a need for Salfordia to adopt the vision to bring the change in current procurement method and incorporate innovation and technology and look for more collaborative opportunities.

Salfordia needs to create the vision to achieve the productivity and customers satisfaction and providing the efficient service, quality and timely completion of project.

Step 4: Communicating the Change Vision:

After creating vision and strategy they must be communicated to the organisation, each employees should be well-known with the change vision. As defined by Kotter (1996). "Obstacles arising from the team members can be avoided by communicating the reasons behind the change".

The change vision can be implemented by considering the following points:

Organising regular meetings, creating a discussion forum to share everyone's views and strategy about the change vision of the company.

Regular discussion among the family members in Salfordia should discuss explicitly with each other and give everyone a voice and listen to their views to developed family's objectives toward the change.

If communication process runs properly among the family members and non-family members then there is a less room for conflicts to take place.

Modern technologies should be used to improve the communication process.

Step 5: Empowering Broad-Based Action:

The first four step deals with managing the individuals of the company and creating the way to achieve the desired change. The actual identification and implementation of strategic change and vision change commence.

As stated by Kotter (1996). "It is very important to remove all the obstacles which stop empowering the team members to accept change".

The guidelines below will help a Salfordia to empower the team members to adapt the change and strategy.

Salfordia is facing major downfall from last few year; there is a need of identifying that obstacle in the company, it may be company structure, defined job category, technology or the way of procuring work.

As Salfordia is dominated by family members at the top management level and they are following the same structure from last many years there is need of bringing outside expert at top management level who is technologically skilled, active and has a new approach toward changing the system or culture of company.

Qualified person from the company should take over the retiring generation. In Salfordia one of the board members has recently completed MBA, and he is continuously striving to bring the change in the old culture of the company.

Identifying a person from company who is resisting the change, like top management people refuse to get in non-family members at the top level.

The change implementer in the company should be rewarded.

Good Work should be rewarded of the employees and create recognition, build self confidence, inspire, motivate, create friendly atmosphere and power should be given to non-family members also.

Incentives, promotion and bonus should be given timely to both family members and non-family members.

Step 6: Generating Short-Term Wins:

To bring the change in Salfordia organisation, it becomes important to create a short-term wins for the team. According to Kotter, (1996). "Creating short term wins motivates the team members to bring change completely as they will be able to verify the results at multiple intervals while executing a project."

To achieve organisational goals and to meet shareholders expectations of the company, creating short-term goals are of paramount importance and it is the key to inspire the employee performance, production, sales and achieving profitability. (ehow, 2010).

The company turnover and profit/loss is gradually decreased from last few years and in current stage company is facing the loss of -£75,000. Thus, it is necessary to overcome this situation by setting the interim targets for 5 years which are depicted as follows:

Short-term Goals for Salfordia organisation:

Identifying the key problem in the company to overcome the financial downfall and effectively working towards reducing the cost overrun.

There is a need of innovation and improvisation to deal with competitive market and other external threats like economic instability and recession impact.

Financial stability can be achieved by expanding the business to other part of the UK.

Effective financial planning is necessary.

Increased usage of technologies and Building information modelling technique (BIM). And other collaborative communication techniques.

Empowering the team members by inspiring and motivating them and use of external knowledge by appointing outsiders in the company.

Effective usage of resources.

Looks for more collaborative opportunities like partnering with other specialized company for project development.

Step 7: Consolidating Gains and Producing More Chance:

After creating short term goals it should be follow until changes entrenched into an organisation culture. Company should change the vision into reality for achieving success but changes does not happen overnight it require time and patience. As said by Kotter, (1996) lots of organisation declare their victory vey soon.

Furthermore, Kotter, (1996) explains that "The success obtained in creating multiple short terms wins helps in executing more complicated projects".

The following needs to be implemented by Salfordia to consolidate improvements:

To achieve the desired goals external knowledge or the outsider should be appointed in the company and also identify what went wrong in past and how it should be changed.

Identify areas of improvement and apply new ideas and timely reviewed them to see what went right and what went wrong after achieving each goals.

Continuous Target should be set to build cohesive force among team member.

Regular training, seminars and meetings should be conducted by company to enhance the skills of employees which in turn will help the company to grow.

Step 8: Anchoring New Approaches in the Culture:

The final stage is making the continuous effort that the changes are met, establishing sense of urgency to achieve the vision, short-term wins should be celebrated. Adoptions of old ways are possible, so keep looking for new ways to make sure that changes are stick.

To anchor those changes below are the things which could be followed by Salfordia:

To effectively follow the change strategy company needs to create guidelines and plan to work properly.

Training programme should be arrange for new employees on the company change practice and also provide them the opportunity to bring new changes and new ways of working.

Timely meeting should be arranged with stakeholders and discuss with them the key changes responsible for success of the company.

Above discussed 8-step by Kotter will help the Salfordia to make the change in organisational culture and help in creating the strategy to achieve "Win-Win" situation.

Finally, John P. Kotter described: "There are still more mistakes that people make, but these eight are the big ones. In reality, even successful change efforts are messy and full of surprises. But just as a relatively simple vision is needed to guide people through a major change, so a vision of the change process can reduce the error rate. And fewer errors can spell the difference between success and failure".

Recommendation for cultural change in Salfordia:

As discussed in the first part the current culture in the Salfordia is mainly a power culture, where total power is associated with the top management, but in today's competitive market there is a need to be more dynamic.

Hence, the organisation should use the Task culture where;

A task culture is team work approached to complete a given task and give the sense of inspiration and motivation to employees as they are empowered to make decision within their team.

There is close knot between different departments of the organisation with effective communication which helps the company to adapt to new change.

The team members are highly skilled and experts in their own areas of work environment.

Recommendation for cultural change in Salfordia:

s

SpecificTo achieve the success and productivity "S M A R T" method this compromises of five elements. It is appropriate for Salfordia organisation for short-term goals and also for a particular project. The five elements are as follows:

Specifically define what you expect the employee to do/deliver.

Avoid generalities and use action verbs as much as possible.

The level of detail you need to provide depends on the employee's personality and their experience level. For example, a highly autonomous or experienced employee will need less detail than a less confident or seasoned one.

REFRENCE:

http://www.lindsay-sherwin.co.uk/guide_managing_change/html_overview/05_culture_handy.htm for types of culture

Organizational Structure of the Family Business, Bernard L. Erven, Department of Agricultural Economics, Ohio State University http://aede.osu.edu/resources/docs/pdf/D3E57989-B26F-4D12-B7054694F29BA82C.pdf

Ben Wakeling http://www.ehow.com/list_6769835_types-organizational-form-structure.html

Charles Handy, Gods of Management: The changing work of organizations, Oxford University Press, 1995

Team Building in the Family Firm by Aron Pervin, (2010).

http://pervinfamilybusiness.com/library/articles/team-building.asp

http://www.ehow.co.uk/facts_5688948_short-term-goals-business-planning.html for koter 6th step intro