M1 Discuss The Organization Structure Business Essay

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The structure and culture in organizations exist in close alignment. Structure, is one of the determinants of culture; on the other hand, culture has been shown to have an influence on the organizational structure and operational systems in an organization (Martins & Terblanche 2003, p. 70).

Both these mechanisms are for the coordination of organizations: structure as an integrating mechanism for organizational activities, and the culture as an integrating mechanism which is concerned with the behavior and values within organizations.

Every organization has its own set of culture and structure depending on the goals and objectives of the organization. A culture is or can be:

A set of common understandings round which act is organized, finding expression in language whose nuances are peculiar to the group (Becker and Geer 1960).

A set of understandings or the meanings shared by a group of individuals that are mostly tacit among associates and are clearly relevant and distinctive to that specific group which are also passed on to new members (Louis 1980).

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A system of information, of values for perceiving, believing, evaluating and acting that oblige to relate human communities to their environmental settings (Allaire and Firsirotu 1984).

Organizational structure is the way in which the interrelated groups within an organization are set up to allow them to function smoothly from a large stand point. The two main purposes of successful organizational structure are to ensure the effective communication between various parts of the company, as well as to increase coordination between the different departments.

Culture and Structure of Alokozay group of companies:

The part that culture and structure share in an organizations success is vital. Different organizations have different structure and culture. According to the organization that I have chosen to represent, in this organization there is not a specific culture as it is a multi-national organization therefore people of various cultures work for them. They therefore make a friendly culture which is up to their requirement through the different cultures that their employees bring and also with a little bit of influence from the culture of the environment they are in. A culture does not always remain the same it changes with the environment it is in, as it gets influenced by that particular culture. In the above mentioned organization the structure used is the matrix structure. This structure is used in large organizations as they have multiple and complex tasks which requires the matrix structure. Matrix structure also creates dual lines of authority and combines it with functional, product, process and customer departmentalization. Advantages of this structure is the efficient allocation of specialists, however a structure always has its flaws as nothing is perfect and in this particular structure the disadvantage is that it does not follow the unity of command concept hence leading to confusion and conflict. The decentralization process is also followed by this organization. Decentralization is the degree to which choice making is systematically distributed and delegated throughout the organization, i.e the middle and lower level. Advantages of decentralization is that actions are taken quickly to solve the problems and when employees give input in decision making they consider themselves as a part of the organization, therefore keeping them motivated. Thus, the motivation of employees plays a pivotal part in an organizations success in today's world.

Factors influencing the Organization:

The culture and structure is a very important part in an organization, without these an organization cannot exist let alone be successful. A good culture provides a good friendly environment in the organization which is helpful in bonding employees with each other and helps them be motivated and thus the relationship between the employees and the managers will remain good. A good structure in the organization helps them to work quickly rather than taking time, which helps them in achieving their goals swiftly and more efficiently. In this kind of an organization, less conflicts arise as the communication level between each other is healthy due to them sharing views and ideas with each other and also as well as having a friendly environment. However no organization nor its culture or structure are perfect, everyone has its flaws.

M2: Discuss what approach of management adopted by the organization, with focus on management functions, roles and authority.

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Introduction:

Ufone is a wholly owned contributory of PTCL (Pakistan Tele Communication Limited), established to operate the cellular telephony. The company commenced its operations, under the name of Ufone, from Islamabad on January 29, 2001.

During the year, as an end result of PTCL's privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone started to tale strides towards the path of success. The Company further spreader its coverage and has the gone on to add new cities and highways. Ufone's network coverage is in more than 3475 locations and also across main highways of the country.

Nature of Managerial Authority:-

Authority:

The prime responsibility of the management towards the owner is to guarantee a fair and also reasonable rate of return on the capital and fair return on savings can be firmed on the foundation of difference in the risks of business in unlike fields of activity. Through the growth of the business, the shareholders can also expect admiration in the value of their capital.

Responsibility towards employees:

Responsibility towards employees relates to the fair-haired wages and salaries, satisfactory work environment, labor management relations and employee interests. Fair wages should be based on labor efficiency, the existing wage rates in the same or bordering areas and comparative importance of jobs. Manager's salaries and allowances are estimated to be related with their responsibility inventiveness and skill. The spread between minimum wages and highest pays should be reasonable. Employees are expected to size up and maintain good relationships between superior and subordinates. Another feature of responsibility towards employees is the delivery of welfare facilities like safety and security of employed conditions, medical facilities, and housing, canteen, leave and retirement benefits.

Managerial role in Ufone:-

Monitor:

Managers of Ufone take surveys and collect the information from different sources regarding the competitor's, wants of the customers. Managers collect all these data from different newspaper, magazines, etc. Managers are the internal and external information providers to their organization.

Spokesman:

Basically a spokesperson is he who speaks on the behalf of his organization. Spokesperson of Ufone has the responsibilities to transmit the information, data, policies and instructions of the organization to the outsider's.

Functions of management:-

Organizing:

Managers of Ufone have the responsibilities to check on the employees of the organization and give them tasks. Managers give orders, instruction; announce the policies etc to their subordinates. All of them obey their orders/instructions properly without any objection.

Leading:

A manager has to perform the role of a leader, he has to be an idol for the employees so they look up to him in times of need and obey him. He has the duty of keeping the employees motivated at all times. He has to have the ability of resolving conflicts whenever they arise and he also has to have an effective way of communication between him and his employees so he gets to know how swiftly everything is running.

D2: Discuss your recommendations which should use the synthesis of different approaches, this should also include the convergent and lateral thinking.

First and foremost the most important factor in an organization is the internal factors in it. An organization should have a strong internal structure, meaning apart from having all the resources a large organization can have or has and all the financial capabilities available to them and all the assets they have on their disposal, they should have a good work force. A good work force consists of employees who are well qualified for the particular job make up to form a good team. They correspond with each other well and form around themselves a friendly environment. However, now a day's people who are not qualified to particular jobs often get landed with them through bribing the senior staff or through some other means. That worker is not qualified for that job, hence not having the experience of that particular job leads to low level of skill making work force less competitive, thus not making a good work force. So for a business to succeed in today's world, it is essential for an organization to have a good work force which can only consist of people who are well qualified for the job and are well motivated at the same time. Motivation is an important aspect of keeping a good work force (employees) happy, as it further speeds up the rate of success when workers are fully devoted to their work. Maslow's theory of hierarchy of needs states, that there are two important ways of motivating employees. They are as follows:

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Providing the employees with financial needs (bonuses), medical allowances, French benefits, pension.

Providing the employees with self-respect, treating them in a human manner like, taking ideas from them and later on providing them with some feedback regarding it.

There are different kinds of employees and their levels in an organization and they need varies according to it. Employees at an lower level would want financial assistance (benefits) as in French benefits or granting them with medical allowance or with some financial bonuses however employees at a much senior level without desire the same as they would have a very high income level. They would rather desire to have a self-respect in the organization, they would want to be treated well by the managers or the ones who are below them, or they would want to have a say in the organizations day to day happenings. It is essential for the organization to keep an eye on employees and provide them with the essentials to keep them motivated at all times.

A few other common approaches of keeping the employees motivated is by providing them with job enrichment, job enlargement and job rotation. These are further explained below:

Job Enrichment:

It is an attempt to motivate the employees by giving them the opportunity to use the range of their abilities. It is an idea that was developed by the American psychologist Frederick Hertzberg in the 1950s. It can be contrasted to job enlargement which simply increases the number of tasks without changing the particular challenge. As such job enrichment has been described as 'vertical loading' of a job, while job enlargement is 'horizontal loading'.

Job Enlargement:

Job enlargement means increasing the scope of a job through extending the range of its job duties and responsibilities generally within the same level and boundary. This contradicts the principles of specialization and the division of labour whereby work is divided into small units, each of which is performed repetitively by an individual worker.

Job Rotation:

Design technique in which employees are moved between two or more jobs in a planned manner. The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them.

In today's world, globalization is taking place rapidly, hence causing an increase in competition among firms (organizations). Therefore for organizations to survive in the long run it is essential that they focus on their external factors, not just the internal factors. The two wide approaches used all over the world internationally to evaluate external factors are the S.W.O.T (Strengths, Weaknesses, Opportunities, and Threats) analysis and the Porter Five Forces.

Firstly I would explain porter five forces with the organization Ufone.

Porter's five forces is a framework for the industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market.

The above is the porter five forces diagram stating the five forces. In Ufone organization it will come in use as mentioned below:

Competitive rivalry within an industry:

Ufone is a cellular company and it already has a few rivals, like Telenor, jazz, and zong. Therefore Ufone would want to innovate as much as possible in technology as possible so that they do not get left behind by their rivals and would rather want to get an upper hand over their rivals.

Bargaining power of the suppliers:

Ufone does not have any suppliers as it is an cellular organization but to explain this portion I would say for example, that if competition is less so the supplier would know that the buyer has to take the supply and he would attain profits so hence the supplier also raises its prices to achieve more profits.

Bargaining power of the customers:

Ufone would have to take good care of its buyers as when competition is more than the buyers would look for the best buy and it would be he, who provides the same services with less asking price then the others. Thus, making the organization lower the asking prices.

Threat of new entrants:

New entrants would like to come there where abnormal profits are. However cellular industry now a day's is facing tough competition and not many would want to join in, leaving Ufone to face the competition that is already there.

Threat of substitute products:

For Ufone, its substitutes are the other cellular firms in the market like jazz. Therefore giving customers alternatives to choose, from if they are not happy with the existing brand. So therefore, Ufone would have to take great care of quality and its services and as well as the pricing to keep the customers happy.

Now we move forward and look towards S.W.O.T analysis. It is a strategic planning method that is used to evaluate the Strengths, Weaknesses, Opportunities, and Threats which are involved in a project or in a business venture. It also involves the specifying objective of the business venture or the project and identifying the internal and external factors that would be or are favorable and unfavorable to achieve that desired objective. The technique is credited to Albert Humphrey, who led a convention at The Stanford University in the 1960s and 1970s using data from Fortune 500 companies. Below is a exemplary diagram of S.W.O.T analysis.

Below the S.W.O.T analysis of Ufone is done.

Below the S.W.O.T of Ufone organization is done:

Strengths:

Its strengths would be having a good reputation in market and providing very cheap rates for its customers and to be available all over the country.

Opportunities:

To be able to capture more market share and increase sales by advertising more and by giving charities and donating money to the poor and the needy, which would have an even more positive impact of its brand among the people. Thus, its profits would increase.

Weaknesses:

It would only that the quality provided is at par when compared with its competitors.

Threats:

If its competitors develop a better image then theirs by helping the environment or the society it would cause decrease in its sales. Hence, they should keep in check and be the first one to do so.

In the end I would like to conclude that it's better to earn slowly for a long period of time then to rather earn quick for a little while and these two approaches are very important for the long term as innovation gives you an upper hand above your competitors and always keeps you ahead of the pack also increasing long term profits and decreasing long term costs.