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In the U K there are large number of restaurants are operating business in hospitality Sector.
MR. Smith has got a restaurant in London where easily accessible by public transport. His family in Africa operates a chain of business in the continent therefore he is very familiar with this kind of business.
As an owner of the business Mr. Smith controlling everything such as hiring the staff making the decision.
Mr Smith reluctant to recruit new staff though business is very busy instead he reduce staff launch break.
Eventually some staff felt that these change should have not been introduced without their consent even one staff made a complained and has lost his job. The rest of the staff are unhappy about the situation but afraid to voice their concern for fear of losing job. As a result a feeling of helplessness, alienation, and fear developed amongst staff.
Nowadays his business suffering from staff working condition, absenteeism, lateness. So at the moment his opinion is business will not meet customer demand if such trends continue.
Structures and cultures.
The structure of an organisation is the formal pattern or framework of interaction and co ordination designed by management to link the tasks of individuals and groups in the achievement of organisational goals. Structure can be seen and drawn in organisations charts .its may reflect culture.
There are different types of organisational structure in different organisation.
Tall and flat structure
In its simplest form a tall organisation has many levels of management and supervision. There is a "long chain of command" running from the top of the organisation. It has narrow span of control.
Flat organisational structure:
In contrast to a tall organisation, a flat organisation will have relatively few layers or just one layer of management. This means that the "Chain of Command" from top to bottom is short and the "span of control is wide".
Diagram: Flat Structure
Hierarchical Organisational structure
In a hierarchical organisation employees are ranked at various levels within the organisation, each level is one above the other. The chain of command (ieÂ the way authority is organized) is a typical pyramid shape.
Diagram:Â Hierarchical OrganisationÂ
Organisation culture may be defined as the sum total of believes ,values, custom, norms, and symbols that have been developed over time and to which most of the organisation identified with.
AÂ Power CultureÂ which concentratesÂ powerÂ among a few. Control radiates from the centre like a web. Power Cultures have few rules and little bureaucracy; swift decisions can ensue .In the UK some restaurants are operating by power culture.
In aÂ Role Culture, people have clearly delegated authorities within a highly defined structure. Typically, these organizations form hierarchical bureaucracies. Power derives from a person's position and little scope exists for expert power.
By contrast in aÂ Task Culture, teams are formed to solve particular problems. Power derives from expertise as long as a team requires expertise. These cultures often feature the multiple reporting lines of aÂ matrix structure.
AÂ Person CultureÂ exists where all individuals believe themselves superior to the organization. Some professional partnerships can operate as person cultures, because each partner brings a particular expertise and clientele to the firm. [P1]
Relationship between organisation structure and culture of Mr Smith's restaurant and its affect's of the performance of his business.
There are varying theory about the relationship between organisational structure and culture. One of the best way to describe, organisational structure and culture both are the interrelated and somewhat similar. Structure is the part of a organisation which describe the organisational frame work. Culture is also part of a organisational role which grown up by the person behaviour. Mr Smith is the only person who takes decision in the restaurant. He doesn't listen to any one. When he decided to cut the breaks by thirty minutes those staff concern prefer not to voice their objection for fear of losing their job. If the restaurant of Mr Smith was a tall structured one then he would have delegated the duty to the human resource department. The personal manager would have discussed with staff about changes in the hours of work. This would have solved the problem of absenteeism and lateness among staff. Staff would have appreciated in participating with decision which affects them.[ P2]
Factors that may influence individual behaviour of Mr. Smiths employees.
Social activities are a big influence of an individual behaviour .if Mr Smith does a cultural function, musical show once in a month with his employees then they will be relaxed mentally and work performance will be improved.
Abilities and Skills. The individual behaviour and performance is highly influenced by ability and skills. A person can perform well in the organisation if his abilities and skills are matched with the job requirement. The managers plays vital role in matching the abilities and skills of the employees with the particular job requirement. As Mr smith is a manager and owner of his business he should trained them up. and he also should explain properly what their duty's how to be done.
Perception: The study of perception plays important role for the managers. It is important for mangers to create the favourable work environment so that employ.
Attitude: Mr. Smith who is the manager of his business need to study the variables related to job as to create the work environment in a favourable way that employees are tempted to form a positive attitude towards their respective jobs. The employees can perform better in the organisation if they form a positive attitude.
Incentive payment is a main factor of employees influence. If Mr Smith pay handsome salary, good bonus on time then employee will be highly influenced.[p3]
Organisational theory under pins principle and practices of organising of management and impact on the creation of new chain of restaurants.
Taylor scientific management brought in the concept of the systematic analysis of work process and the techniques of work study and organisations and methods in order to achieve good management. THE main elements of this view management are:
The detailed and careful analysis of all process and tasks within the organisation to identify each component part
the review of all routines and working methods, using time and motion studies what we would now just call 'work study' to find the best way to do job.
The scientific selection and training of workers who would then become first class of their training.
The introduction of payment on a piece rate of work which would both be an incentive to maximise of productivity and produce high wages for the workers.
Fayol definition of management is ''to manage is to forecast and plan,to organise, to command ,to command, to coordinate and to control''
His rules of managerial conduct which is very useful for chain of a new restaurant business that's are follows:
Unity of command, unity of direction
Scalar chain, stability of staff, subordination
Division of work, discipline
Equity esprit de corps
Order and initiative.
Max Weber types of authority:
In human relation school Alton mayo said
Individual worker can't be treated as a isolation must be seen as a member of group.
Monetary incentive and good working condition are less important to the individual than the need to belong to a group[.P4]
We spoke different types of management and theories on p4, Mr. Smith can adopt following two management style.
Scientific management is a theory of a management which analyzes and synthesizes workflows with the objective of a labour productivity. It's developed by Taylor. he was trying to discover of a way for workers to improve their efficiency. its application is contingent is high level of managerial control over employee workplace.
Henry Fayol is the key thinker of management school. Fayol explain about division of work, Authoritarian management, and discipline of work .unity of command, unity of direction that is how worker can get good direction of work and can be done easily efficiently. [P5]
Different types of leadership styles.
Leadership is a leading process which can lead a group or organisation to achieve their goal or desired destination .
Authoritarian /Autocratic leadership: This is a forceful style leadership and power culture as well. in this style all decision is made from the centred on the leader and enforced by the use reward and fear of punishment. communication tends to be primarily in one direction from the leader to the followers. we can see that Mr smith apply this leadership style in his business which is arisen problem for him.
There is a major advantage of this style decision can be made very speedy .
Democratic /participative leadership :This is fair style leadership. it is human relation approach in which all members are seen is a important contributors to the final decision. participation is sought in order both to encourage member commitment to the decision and to improve the quality of decisions.
All staff are always happy and smiley face and provide good service to customer because they are tension free . Mr smith may adopt this style in his business and it will improve customer satisfaction and business growth
Laissez-faire leadership: In this leadership style there is no such different can be found between group members and leader . leader exercises very little control or influence over group members. a member is given a goal and mostly left alone to decide how to achieve it..
There is a disadvantage of this leadership group members may act as his own. anything can do whatever he wants and may result is the lack of group cohesion and unity towards organisational objective, inefficiency ,even worse chaos.
MR smith should have apply democratic leadership style rather than other style leadership.[P6]
Different motivational theories and their application to new business.
Motivation is some driving force within an individual by which they attempt to achieve some goal or expectation . Scientific management: its developed by the F. W. Taylor. His theory is very important for new business. He suggested that are follows
Time and motion study
Incentive, bonus payment
Good working conditions
Maslow Five Levels of the Hierarchy of Needs
These include the most basic needs that are vital to survival, such as the need for water, air, food and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.
These include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs
These include needs for belonging, love and affection. Maslow considered these needs to be less basic than physiological and security needs.
After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition etc.
SELF ACTUALIZING NEEDS
This is the highest level of Maslow's hierarchy of needs. Self actualization people are self-aware, concerned with personal growth.( Business balls .com)
Herzberg motivation theory: Herzberg divided the factors of workplace into two categories:
Motivator: THESE ARE
The work itself
Type of supervision. [p7]
Different motivation theories have different effects. Motivation has to be built into the structure and without the motivational theory without the practice of management.
You cannot practice motivation if you do not first have a theory or concept.
In order to be a great manager or leader you have to be a good motivator, Mr. Smith is a autocratic leader is applying power culture in his business that is affected negative approach of staff motivation. Motivation theory's are more important for practice of management of his new business and will get following impact.
If worker getting paid very well according to their peace rate of work they will be highly motivated, encouraged to do hard work and maximise their productivity. Customer service, business reputation, efficiency, will be highly improved
Lower levels of absenteeism as the employees are content with their working lives
Lower levels of staff turnover (the number of employees leaving the business). This can lead to lower training and recruitment costs
Improved industrial relations with trade unions
Contented workers give the firm a good reputation as an employer so making it easier to recruit the best workers
Motivated employees are likely to improve product quality or the customer service associated with a product. [ p8]
The nature of groups and group behaviour within organisations.
psychologist define a group as a collection of two or more people who are aware of each other, who have a shared goal, and who can be regarded as a collective unit.
Sociologist define a group as a collection of individuals involved in regular patterned interaction with each other sharing similar values and goals, and who feel conscious of belonging to the group. We can say group is where two or more people gathered to achieve a goal.
There are two types of group:
Formal group. Informal group.
Formal group is a group where two or more person get together to reach a certain destination. They are registered or declared by the authority, community or government. They always abide by the rules and regulation, they are so much concrete to achieve their goal. Like trade union, branch of Greenpeace
Informal groups are those which are created by the individual members for the purpose of sharing a common interest/or serving their common needs. they may or may not be permanent ,existing only for as long as they continue to serve the common interest or needs of their members. They don't abide by the rules and regulation.[ P9]
A team is small number of people with complementary skills who are committed to common purpose, performance goal, and approach for which they hold themselves mutually accountable. They share a common goal and are striving to get a common job done, enjoy working together, helping each other.
Factor that will lead effective teamwork:
Focus on stakeholder outcomes
Engaged leadership team member
Collaborates set direction to solve problem
Obtain individual commitment
establishes discipline personal accountability
identify and removes barrier
Focus on stakeholder outcomes
Engaged leadership team member
Collaborates set direction to solve problem
Obtain individual commitment
establishes discipline personal accountability
identify and removes barrier.
Threaten factors is that misunderstanding, conflict, promoting ,fiction, race and beliefs, competition, rewarding, dysfunctional team, [p10]
The impact of technology on team functioning within Mr. Smith's new business.
In modern business, technology is very important to operate a new business. It also has a big impact of team functioning.
As Mr Smith opening a chain of restaurant business in London he must need to use modern technology to communicate with his staff and serving of his customer.
Staff should work within a team. Teams can communicate with each other about something through computer. They can get their jobs done faster and easier, having a portable computer which is also known as laptop is something most team members need. It is the best place to store your information or you could store your files in a HYPERLINK "http://socyberty.com/organizations/organizational-behvaiour/"USB flash drive this device is really small and portable anywhere you go.
Mr smith could instantly talk and see each other (with the right device), and this has been very useful and is one of the biggest impacts in his business. how ever there are some sort of disadvantage of applying new technology on team functioning but still he can set up a system that can make easy to take the order from customer and it goes through to the kitchen staff and food will be ready on time, that will save time and improved the customer satisfaction. [P11] (socyberty.com)
Solution and Recommendation
Stake holder is any person who has legitimate interest of MR. smith business.
STAKEHOLDER: employees, customer, government (taxman),supplier, bank. Their needs and recommended strategy:
EMPLOYEES always wants good salary, and carrier develop, so Mr. smith should pay their salary on time and competitive market rate. and provide perfect training and give sabbatical leave.
Customer always want good service and product. they always spending their money on worthwhile project.mr smith should improved customer service and product quality.
Supplier sale their goods on credit like one in one out basis. So also like to get their bill on time ,direct debit should be preferable.
Government /taxman want their tax (vat, corporation, income, council) on time. It will be flexible for them if Mr. smith set up a direct debit from the bank.
Bank want to pay their bill on time(loan interest, rent of card machine, overdrawn facility) they also like to set up a direct debit from his account.
Following technique or strategy Mr Smith may apply for expansion of new business.
Political stability is the big factor for a new business if it is not stable he can't run a new business in unstable situation.
Economical is the key factor of a new business .He must have to think about the economical that is how rich this area or how is customer spending capacity .if customer doesn't capable for spending they won't come to restaurant to spent their money they will go for chicken and chips.
Social side also is big factor other wise unsocial people will come to restaurant have their meal and will leave without paying their money or will make gather/quarrel
Technology: He should have to think very deeply about technological that is how developed the area of technologically. if area is developed by technologically rich people will be living ,working, investing and go to the restaurant to enjoy their evening and lunch time and will spend their money.
Legislation is the most important factor .if local government is to strict about their law business will not run for late night/overnight, it will also impact on expansion.
Ecological/ Environmental faction impact on expansion. Conflict with employee and manager, office politics, interdepartmental conflict, discrimination at work place, unhealthy competition among employee ,absenteeism .
These are the negative impact of internal environmental change in term of expansion of a business.
Factor will impact of the following sector on the expansion of a new business.
However there are lots of positive impact environmental factor that significance on the expansion of a new business that are mention below:
Facilitator operation of the organisation from the basic of long term policies play of organisation, help organisation is identifying and understanding its competitators helps the organisation to expand and grow. [ M2]
Conclusion and recommendation: Every year a large number of people come to the uk to visit, and currently restaurant business are growing sector in this stage opening a new restaurant is really a imperative idea that can being profit for Mr Smith. Although Mr Smith is highly experienced about his business but still his power culture may not be suitable for his new business and he has to about think some alternative that can work well within the new environment and the management practice will be different so obviously have to adopt new strategy to deal with this situation.
Other thing is employee motivation is really very important to get the best outcome from the employer. so Mr Smith should make a well structure of motivational theory where their will be no cause of conflict between employer and leader.
Abuse of conflict : In to days competitive business conflict is neutral. It is simply a matter of two parties wanted different thing from the same situation. an intend conflict can cost money and time ,and most of the time it happen employee level and leader level.
It will start from
Performance of sub standard
Competition over resource
Difference in regarding in power authority