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Organizational structure is a series of functions and divisions. It involves a chain of command that is divided according to its structure and area of interest means its business. In this case study, the company is Bupa International. It is the foremost international health insurance company which started in 1999 and that provides its services worldwide. In UK, Bupa is one of the largest global health care organizations, which is operating its business in more than 190 nations at the global level and has employed about 800,000 employees in all its divisions. A broad category of health care insurance products is offered by Bupa (Bupa, 2009). It operates in UK, France, Australia, Hong kong, Denmark, UAE and Spain. Bupa international works two teams they are the FBH incite and the media vest. FBH incite operates as agency which will promote and endrose the advertisements in the market successfully on the other hand media vest is responsible for promoting the brand, products and services. It is an international company. idea of the company is to offer effectual life care conveniences to the people at the global spectrum (Bupa, 2009). Mission of the company is to achieve the image of a leading health insurance service provider across the globe with the help of commercially viable and pioneering solutions according to the health care needs of target audiences (Memorandum by BUPA (MT08), 2005). A well prepared organizational structure plays a important role in the global arena, as it is connected to the sevral elements of the organization. People interaction & coordination, communication pattern and harmonious relationship are the important characteristics of organizational structure that assist the company to attain a foremost position in the healthcare insurance sector. There are some features for the organizational structure like stiffness delegation, ease, levels, etc. must be focused to design an effective structure.
This coursework mainly emphasize on the organizational structure that perform as a ground for the operational system of the companies. necessary characteristics of bigger organizational structure will be explained as they fulfill necessities of a variety of contextual variables like environment, strategy, technology, size, people and coverage area. Different types of organization structures with their advantages & disadvantages so that the usefulness of the structure can be judged with the respect to the company. In agreement with the concepts & frameworks, it will be argued that a mixture of factors linked to the structural design, impact the organizational structure in a profound manner. Apart from this, in this coursework, the different advantages & disadvantages of organizational structure of the company are also considered that assist in researching the positive or adverse aspects of the structure in context of the company. In this repost, counter and constructive arguments will be also explained. The concept and theories linked to the strategy, the organizational structure of the company will be compared with the past organization, i.e., Ministry of Health.
Within structure A, the concept of organizational structure is usually defined as a coordination and interactions model, which performs the tasks of linking or connecting technology and human factors of the company. For organizational behavior, is like skeletal model. Main focus of this structure is to review the organizational effectiveness in the process of persuing the stated end goal. The research denotes that structure plays a important role in effecting the excellence and nature of management (Harris & Hartman, 2001).
Organizational structure is a serious aspect of the company that represents the overall effectiveness in terms of its divisions and resource allocation. The area of organizational structure has been studied widely during past years. Complete analysis of organizational structures shows that it should not be balancing with the process demands. It suggests the organizations to optimize the proportionality between attempt and input to output ratio. The aptness of organizational structure of Bupa International can be evaluated through the analysis of some of literally sources in order to prop up its success. In the vital analysis, the favorable & counter influence in relation to the companyââ‚¬â„¢s structure have been tested. The framework reflects the theory of organizational structure by representing its advantages and disadvantages. This shows that each and every organizational structure has its own importance and impact based on the business model or prototype. This framework defines the concept of the organizational structure as a important solution environmental factor that interacts directly with the people. This research forms the basis of assuming the fact that any erroneous choice in terms of organizational structure not only obstructs the operations, but also influence the entire success (Organizational Structure, 2007).
Project form of organizational structure involve separate particular units that are developed for the management of a project and accomplish responsibility for the given tasks and resources necessary to be achieved. In divisional form of organizational structure, regional offices are developed as different identity. Each regional office has its individual functional department and performs under the strategic policies and guidelines that are formulated by corporate management (Huczynski and Buchanan, 2009). The last framework shows that divisional type of organizational structure is most common among the health care organizations that have developed through aggressive market or innovative products & services. This study forms the basis of assuming the truth that this type of organizational structure is very well-suited with behavioral method. There are different forms of organizational structures like functional structure, project structure, matrix structure and divisional structure.
Functional structure is a conventional concept of organizing in which a variety of departments are responsible for combating with the competitors. Matrix structure is one more form of organizational structure in which there are a various departments and the members are specified to work in specific project teams (Dess, Lumpkin and Taylor, 2004). Bupa International Company has bounded its organizational structure in the set-up of divisional structure to work its business operations in the market productively. In this type of organizational structure, the company has to spotlight on different aspects like presentation quantity, tasks and responsibilities of corporate and divisional management, long term policy for performance & incentives and independence. These different aspects should be carefully brought in the notice of the organization to keep away from the difficulty associated to this structure. With the help of divisional structure, it is probable for the company to assess the presentation of its diverse geographical units. There is also high confidence in the managers of the company, as they used to work in an independent working environment that is directly related to their performance and capability.
According to Cummings & Worley, divisional structure is efficient in the context that it offers abundant opportunity to the company in assisting them to gain experience, learn new skills & mounting the knowledge of their personnel. With the help of this organizational structure, it is possible for the company to stabilize its harmony with employees and synchronize its precious resources towards an overall outcome (Cummings and Worley). According to Ginter, Swayne and Duncan, divisional structure is tremendously constructive for the company as it assist the company to allow functional areas to make distinction around each product & service by changing the coordination as well as contact patterns. This type of divisional structure helps the company to focus on end results, products and target customers.
This organizational structure focuses the divisional manager in their process of making the functions more successful for the market. As a result of this, the company attained a competitive group of customers across the globe (Ginter, Swayne and Duncan, 2002). This structure allows the company to go with the products by developing strategies according to the level of competition. For attaining specialty, synchronization, presentation quality, excellence and operational economy, divisional form of organizational structure is proper.
There is lack of managerial personnel in this structure, as managers working in a division cannot achieve with same capability in other division. According to Cummings and Worley, this organizational structure is accountable for an boosting in the operating & managing cost of the company, as each division has its different specialty. This structure may be the basis of variance of commitments towards the goals of different divisions in place of focus on the ability of stated organizational goal. It is true that the divisional structure of the company offers different remuneration to it, but in-spite of having such compensation of this structure; there are some flaws or disadvantage associated with it too.
According to Molander and Winterton, there is need of control system that is one of key issues linked with divisional structure, as the company functions in diverse number of departments across the world. Without this, the information sharing of the technological improvement will not be communicate in the company. Another issue related to this structure is that due to local deviation, the company also suffers loss of consistency (Molander and Winterton, 1994). According to Ginter, Swayne and Duncan, within such type of structures, it is very complex for the organizations to hold a reliable rapport due to repetition of functions. Among the various divisions, this form of structure encourage competition that results into the lowering of the overall presentation of the company (Ginter, Swayne and Duncan, 2002). In this form of organizational structure, the organizational ladder has group of managers and the main problem faced is due to lack of communication at various levels in the recognized divisions.
In harmonization with the organization of the business, human resources work successfully to make sure employees are able to perform effectively to convey superior products and services to the customers (Bupa). In this structure, personnel work successfully as they only have to mind the norms of its relevant department. This structure everlastingly encourages the employees to work in an exceptional manner. Hence, it can be contingent that the management, human resources and employees are enhanced interlinked through the divisional structure. The organization of the divisional structure in the overall business presentation can be deliberate by evaluating the suitability of this structure in milieu of the human resource organization. By comparing the management with organizational structure, it is thoughtful that all the autonomous units are controlled by the chief executive officer in an efficient manner. Each operating division of the company has its individual functional specialist. It is obvious that according to the managementââ‚¬â„¢s anxiety, this organizational structure is extremely apt for Bupa International. This structure helps the company to efficiently focus on the production, growing markets and react to the active changes.
In the entire business, Bupa International has confront firm competition from its competitor that are AXA, Meiji Yasuda Life Insurance, Prudential, ING, Cigna, Nippon Life Insurance and Assicurazioni Generali. To combat with the competition posed by competitors, the company provide quality products or health plans at an reasonable cost. The company also makes its customers feel positive and influenced about them as compared to its competitors. It also offers many services like health screening, advice on stress, diet and psychological assistance to the patients that forms the basis of assuming its competitive benefit (Bupa, 2009). Apart from this, the company is also engaged in fitness programs and 24 hour help-line services for its customers.
The organizational structure depict the affiliation among the various activities and positions. In essence, organizational structure is the integration and demarcation of activities & authority and roles & relationship. Apart from this, itincreases innovation and creativity in the organization that gives a chance to attain competitive advantage at the global level. It is obvious from the literature review that the organizational structure and principles are related to each other. Therefore, it is very important to make a decision the results derived from the structure to achieve suitability with the structure according to the changing needs of organization. The company has gained 39% revenue growth and also gained a continuous organic growth. After its recent acquisition, it has enjoyed repayment of integration. Bupa International has a promising enlargement plan that involves identifying new product development, retention of its people, improving trustworthiness and rising the customer base to boost its brand image.
On the whole, this competitive position of the company in health insurance market shows that the company gained extensive organic enlargement with customer approval level (Bupa reports a year of further underlying growth and acquisitions, 2009). BUPA International Company has a spirited R&D structure. The company has made a mammoth investment in its R&D to offer ground-breaking products to its aimed customers. The company has employed good marketing tools to build up accord with its customers. It has also signed up two new marketing agencies to organize its marketing activities and enlarge its operations globally.
For its inclusive marketing, the company controls a budget of Â£50m. With the help of this budget, the firm concentrates on conventional advertising and patronizing events such as bowls championship. Due to its aggressive marketing plans, it has become capable to formulate advertisements with efficient brand construction for rendering direct messages to its customers. In its most latest UK campaign, the company expresses users getting kissed better to advertise its companyââ‚¬â„¢s values like quality and reliability (Bupa, 2005). All these employee welfare programs help the employees to get rid of their mental tension that will result into ameliorated productivity as well as higher effectiveness level. Position of the company indicates that organizational structure has efficaciously interconnected the divisional activities with aims of company.
All its divisional managers put their best efforts to develop its brand image globally. The revenue growth 39% billion indicates the positive sign for the company to develop its operations. The company gives more importance to employee welfare as disturbed employees are not able to superior in their task. For its employee welfare, it develops Employee Assistance Program that depicts a private advising service to lower the turnover rate of employees. According to the current data, this program reports an augmentation up to 58% in traffic. It also offers a range of other programs such as Bupa Classic EAP, Bupa Premier EAP and Bupa Key EAP (Bupa Employee Assistance, 2008). On the basis of above discussion, it can be inferred that organizational structure of the Bupa International Company is very competitive as it has made wide growth in the past.
Apart from this, it is also evaluated that divisional structure is very efficient for health care organizations that operate its functions at the global level. The overall analysis of organizational structure of the company denotes that divisional hierarchy is efficaciously represented in its overall aims. To inspect the efficiency of organizational structure of Bupa International Company, key aspects of its structure are equated with the comparable aspects of Ministry of Health (The Kingdom of Saudi Arabia). Organizational structure of the company is less multifaceted as compared to the Ministry of Health due to limited number of divisions in its divisional hierarchy. This helps the company authorities to have successful communication amongst them; on the other hand, Ministry of Health has endured from the issue to be short of effectual communication, which acts as an difficulty for the management practices of the company. By analyzing this, it is derived that structure of Bupa International that is Case Study organization is in a competitive position as compared to Ministry of Health
It is reffered that the overall discussion helped to derive the relationship between organizational strategy and structure as it is highly indispensable to achieve success in the global arena. Without harmonization between organizational strategy and structure, the organization has confronted the potential sequences such as puzzlement, mismanagement, slivered efforts within the company. Hence, this is the key limitation of this study (Dess, Lumpkin and Taylor, 2004).