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Organisation structure can be defined as the method in which a firm aligns or re-aligns itself. Every organisation is organised in a different way. The organisational structure is drawn based on the business strategies. It defines the delegation, controlling, and co-ordination of the authority and responsibilities in a firm. This organisational structure is reflected in the organisational chart.
The following types of organisational structure are discussed in this assignment:-
Raelin (1986) believes that bureaucracy and formalisation have led to the increased use of Matrix structure. According to Kerzner (2009), this type of structure combines the benefits of purely based functional (horizontal and vertical) structure and the product structure. Daft says that, "The matrix is a strong form of horizontal linkage". Communication and collaboration among the functional and product sides of the firm are extensively required with this type of structure as suggested by Raelin (1986).
The following diagram reviewed from Keizer (2009) shows an example of Matrix structure.
The project managers report directly to the general manager. The project managers have to ensure that the projects get completed effectively. The technical know-how of the projects is looked after by the functional departments of the firm. These functional departments are supervised by the individual functional managers.
Source Kerzner (2009)
Advantages of Matrix organisation structure:-
Benefits of both the functional and project types can be combined.
Allows flexible labour structure.
Suitable when environmental changes are high.
Allows for knowledge or expertise transfer wherever the need arises and hence allows for effective resource allocation.
Allows for proximity to the customer.
Nurtures innovation and creativeness.
Most effective structure for project based groups.
Disadvantages of Matrix organisation structure:-
Coordination is complex.
Employees have to report to both the project as well as the functional manager.
This type of structure cannot be adopted quickly.
Not appropriate for small firms.
Increased managerial and administrative overheads.
Inter-department rivalry may occur at an expense of performance within the whole business.
Functional structure is the most basis form of organisational structure and is essentially a line organisation. According to Hitt et al (2009), "The functional structure consists of a chief executive officer and limited corporate staff, with the functional line managers in dominant organisational areas". In this type of structure, the different activities are clustered by a common function from the bottom to the top of the organisation.
The following diagram reviewed from Keizer (2009) shows an example of functional structure.
All the activities are carried out within the functional groupings. Also the activities are headed by departmental or divisional head. Specific technical knowledge is maintained within each department. The general manager is given all the functional entities required to carry out the activities.
Source Kerzner (2009)
Advantages of Functional Organisational structure:-
Business as well as corporate level strategies of the firm can be implemented with lower level of diversification.
Allows for economy of scale within the function.
Highly skilled staff.
A clear line of command.
It has centralised control of strategic results.
Disadvantages of Functional Organisational structure:-
Slow response to environmental changes
There is a chance of overloading of the vertical hierarchy.
Does not promote innovation and creativeness.
Not consumer oriented.
There can be conflicts in the departmental objectives.
Raelin, J.A. (1986) The clash Of Cultures, Harvard Business School Press, Boston.
Kerzner, H. (2009) Project Management: a systems approach to planning, scheduling and controlling, John Wiley and Sons, Hoboken: New Jersey.
Daft, R.L. (2010) Organisation Theory and Design, Cengage Learning, Mason: USA.
Hitt, M.A., Ireland, R.D., Hoskisson, R.E. (2009) Strategic Management: Competitiveness and Globalisation (Concepts and cases), 8th edition, Cengage Learning, Mason: USA.
Frost, P.J. et al (Eds) (1985) Organisational Culture, Newbury Park: Sage.
Schein, E. (1993) Organisational Culture and Leadership, Harcourt college publishers.
Task 1 (b):-
NASA was the first organisation which designed and implemented a formal Matrix organisational structure. The matrix structure was developed by NASA was its space program. NASA wanted to carry out various functions and projects at the same time. These could not be strained at the expense of other.
NASA believed the traditional organisational structure to be bureaucratic and hierarchical. Also these were slow-moving and inflexible. Furthermore, the basic organisational structures were myopic ant departmentalised. These structures failed in productively utilising the far reaching proficiency NASA had at its disposal.
However matrix organisational structure allowed for synthesising the projects, like rocket booster can be designed, along with the organisational purposes, like staffing & financing.
Task 1 (c):-
According to Frost et al (1985) organisational culture is "talking about organisational culture means to be talking about the importance of people of symbolism - of rituals, myths, stories, and legends - and about the interpretation of events, ideas, and experiences that are influenced and shaped by the groups within which they live". Schein (1993) believes that culture may be a set of shared basic assumptions which are solutions or give solutions to problems or challenges. The problems may be integrations of individual to the organisation or to adapt effectively to the external environment. Morgan (1997)
It is very deeply rooted and may be considered as identity of an organisation. Hence it may also become in some manner an identity for the individuals working in that organisation. Culture may become like a circular cycle. Individuals may affect the culture as much as the culture affects the individuals. In that leaders have to realise that employees may boast lots of connection with client and can have additional knowledge about customer preference. In such a manner more responsibility can be generated. Also an organisational culture that is full of support can be instilled. CEO and rest of the managers should build an environment in which workforce is permitted in thinking for themselves. Employees should be encouraged to contribute their views through regular meeting with managers or employers. This can be also top up by freedom to elect an independent advisory group that will facilitate certain agreements between employees and employers. Organisations are characterised with top down management structure and culture rarely affect their employees behaviour and will be pass effective in achievement of sustainable advantage. Such issues will contribute towards better employee behaviour and hence organisational behaviour.
The topics of management approaches and leadership styles have attracted considerable interest from both academics and practitioners.
Procter and Gamble was formed in 1837. The headquarters of P&G is in Cincinnati is in Ohio. P&G produces a range of consumer products like beauty, health, house hold. Procter and Gamble has capitalised on innovation for success in the consumer and household product industry. It employees around 140,000 people. P&G has adopted a customer focus leadership style.
The unique organisational structure offers the global scale benefits of an international firm and the local focus to be relevant for consumers in around 180 countries. The corporate structure provides the framework that allows us to tap the benefits of a global organisation with speed and efficiency.
The principal leadership style in that of Procter and gamble is that of participatory, delegating, and empowerment. The decision making procedure has been decentralised. Line business leaders are accountable and involved at every step of the process. This was done so that the middle level management need not wait for the approval and funding from the headquarters in terms of important projects. This empowerment given to the middle and senior level management within the organisation helps the firm to customise the products and customer services internally. The success of this huge organisation can be closely related to its management and leadership style. The senior executives help the younger managers to develop the requisite skills to lead large businesses.
P&G has illustrated that its success is dependent on its customers, people and innovation. All the employees are brought together by the organisation's common culture, values and objectives. The firm recognizes its diversity as a unique characteristic and strength. It has been successful in maximising talents and creativity from the employees.
P&G has been successful in implementing the communication strategy. The firm ensures that the length and breadth of all its units understand the impact of any change mostly at the professional level. Management ensures that everyone involved is interested in the change process.
Task 3 (a):-
Abraham Maslow's was born in USA (New York) in 1908 and it is died in 1970.he was the first seven children born to his parents. His parents are thinking to become a very successful boy in the world. He tried his best for his childrens.To satisfy his parents, he first studied law at the city college of New York. After three semesters he transferred his study to the different New York College. Then he married with bertha Goodman. He and Goodman move to Wisconsin city. Although it appears in Maslow's name in later years.maslows PhD in psychology in 1934 at the university of Wisconsin hierarchy of needs was developed between1940 to 1950.This is one of the most widely mentioned theories of motivation is one of the best theory put forth by psychologist Abraham maslows.Maslow's developed theory of personality that has number of different fields, skill and number of education. This theory is for motivation of human being, different type of management training and personal development of different department.maslow is a humanistic psychologist. Humanists do not believe that human beings are pushed and pulled by mechanical reasons. One the many interesting things, Maslow noticed that he worked with monkey in his life as well and taught many things from monkeys. For example, if you are hungry and thirsty, you will tend to try to take care of first thirst. After all you can stay without food for one week.
Maslow's hierarchy needs:-
Physiological needs: - These include vitamins, calcium, other minerals, shelter, salt, sugar, oxygen, water, protein, and warmth, sleep and body temperature.
The safety and security needs:-These are needs large amount of care of physiological, stability protection, property and food.
The love and belonging needs:-you need to take care of third layer physiological needs, you begin to feel the need for friends. A sweet heart and children. It is also part for look on career.
The esteem needs:-Maslow regard to highest need in his hierarchy.maslow notes two versions, one is slow version and second is high version.
Maslow.h.abraham. (1908-1970) city college, New York (CCNY).
Task 3 (b):-
There are several problems occurred with the Maslow's models when the real life is working practice is considered. The Maslow's is suffered from different types of problems.
There is a problem with deciding when a level has actually been satisfied.
The model ignores the often observed of individuals who tolerate low pay for the promise of the future benefits and profits.
It was and is a very loose approach to measurement. And hard to measure self actualization.
Individual behaviour seems to respond to several needs and not a just one.
Sometimes same need may cause quite different behaviour in different individuals.
This is little empirical evidence to support the model some critics suggest that Maslow model is only really relevant to understanding the behaviour of middle class workers in the uk,usa and around in the world.
TASK 4 (A):- A team is defined as a small group of people with complementary skills and abilities, who are committed to common goal and approach for which they hold each other accountable. A group is defined as a number of persons or things gathered closely together and forming a recognisable unit and small group of people with skills and complementary the group contains two or more than persons. In team work people have cooperate, using their individual skill and management. And provide excellent feedback together. In teamwork everybody must communicate with all the colleagues and trying their best in any rules and circumstances. In groups and group persons are divided by ages and experience also gender as well. The member is assigned to evaluate the aspect of the accident and consult with the team expert on foreign evidence. A group supports the leader's goals and the leader dominated approach to goal attainment and also it shares group accountability. In a team multiple diverse view points are represented.
TASK 4 (b):-
The following factors can be lead to effective team performance:-
Lack of communication: - management should be communicating clearly about the aim and the goal of the team. And confusion can be lead by the effective performance.
Lack of trust: - if there is lack of trust among the team member. And if not good communication between members then it will affect the team performance.
No motivation: - where there is no motivation, it is difficult to achieve teams goal e.g. if there is no incentives in the shape of bonus or holidays, motivation will be low among team members.
Personality clash:-if right people with the same abilities and attitudes are not there,i can severely affect teams members.
Accountability:-every member of the member of the team should be held accountable for his or her performance without any favour or discrimination. Favouritism or lack of fairly can lead to effective team.
TASK 4 (C):-
Technological advancement has revolutionised the team's performance e.g. the introduction of touch screen tills at Tesco cash and carry ltd has increased team input and output. It is very good system and also saving time and money for everybody. Per till you need one person but this system doesn't need any person and its very quick system. In that you have to scan all products then it will tell you further option automatically and finally it says payment methods which is comes automatically. That means you can save lots of money by this system. All tills are connected with the main computers, where manager can see all the transactions and process. Similarly they launch online buying system, you can order online whatever you want then they provide on more facility as well like if you order over fifty pound, they deliver goods at your home. They giving something percentage on online order as well. The manager can see your shift and book your holidays as a result of that system has become more efficient and convenient for all the employees. A manager can e-mail all the important information to the main department. That means you can save money and time to take any decisions. Now a day's all the company are operating this type of system. Which is money saver and time saver for all company and its called one type of management. Thus communication gap has become much shorter in fact almost diminished.