Structures and cultures of an organization

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There are several cultural and structural models we can find in the general management environment. We have to realize better structure and suitable culture to adopt in the LOCOG. As this is one of the latest operational organization with a variety of operations within the business it is important that the business is structured in a functional and coordinated way that fully utilizes the maximum productivity of each operation, allows for accountability and control and to be operationally effective in order to achieve the LOCOG objective of being the effective organization in UK.

The functional structure has resulted in LOCOG dividing the different departments of the business into the functions they perform within the business. For example finance, marketing and sales. This type of structure allows LOCOG to have a high degree of accountability and clear lines of communication within the company as each department is clearly set out with minimal overlap of roles and responsibilities. The functional structure also allows for a central decision making process and provides clear direction in a top down management hierarchy.

The roles of the marketing department are directly linked to the profitability of LOCOG and the achievement of their corporate and sales objectives. The marketing department should continually growing within LOCOG as the product portfolio expands to meet market and customer needs and expectation and well as the need to compete across Olympic games organized by other countries in the world.

It is necessary to create analytical and innovative culture within the organization. The marketing department should be involved in market research, product development, marketing information systems and marketing communications. The marketing department has to work closely with the sales team (who are collecting advertisements and sponsorships) in order to develop and execute marketing plans that will increase awareness and increase demand for the products and can support the personal communication messages of the sales team.

The organizational structure of the LOCOG should be a games structure where the main regional managers appointer country wise with an assistant. The advantages of a divisional\product structure for LOCOG is that it allows for a high degree of flexibility and the ability to respond quickly to changes within the marketplace. This is of high importance due to the continued emergence of clinical data comparison between products and the launching of new games. Both of these circumstances would require adjustments to the current marketing strategy of the brand and this can be achieved in a quick and productive manner due to the structure of the marketing department. In addition staff within LOCOG's marketing department becoming experts within their knowledge of the product and the market they operate within. The product based structure allows the marketer to develop close personal relationships with customers (all players and visitors) and the benefits associated with the development of long term mutually beneficial relationships as the customer feel valued, and may be inclined to become loyal to Smith and Nephew and become more difficult for the competition to target.

The disadvantages of a game structure for LOCOG are that the structure doesn't support the exchange of knowledge between the different divisions. This can result in a reduction in knowledge transfer and the sharing of best practice that could benefit other divisions being shared at a slower rate than other organizational structure would allow. This disadvantage is a result of poor levels of communication between divisions of the all departments.

Individual Behaviour at LOCOG

We can draw a SWOT analysis as below and find the exact behavioral conditions of an individual as follows;

SWOT Analysis


High level of knowledge within job area.

Clearly defined structure of marketing department

Specialist marketing experience

Long standing reputation both internally and external.

Highly valued within organisation


Retention of staff

Clearly defined talent development plan for marketing department

Lack of career progression for internal candidates

Lack of feedback on employee performance and competencies


Internal development of current marketing staff

Increase skill and knowledge levels through job enrichment, secondments to other departments and job rotation

Increase autonomy of roles.


Top performers moving to competitors

Job dissatisfaction

Lack of motivation

Loss of staff leads to breakdown in customer relationships

Key factors

To identify top performers within the marketing department and set a clear development plan in order to enable progression within the department and wider organisation.

To increase staff retention and reduce absenteeism within the organization.

To increase performance of the organization to the profitability for 2010/2012 (total event).

Distinctive competencies

LOLOG is a market leading global Olympic Game organizers with excellent reputation globally.

The market department is a highly valued area of the organisation.

Critical Success factors

The allocation of time and resources in order to develop and establish a talent development and team performance plan.

Transformational leadership in order to motivate staff and the development of internal team relationships.

To ensure job satisfaction for all members of the marketing department in order to increase performance levels.

To ensure cohesiveness and coordination between team members in order to achieve company targets.

Management Practices

Marketing Strategy on Employees of LOCOG

LOCOG will be launching their internal marketing plan to internal customers within all departments and wider business. LOCOG has an established hierarchy structure and are un-adaptive to change. The key concept of this strategy is to gain adoption and customer satisfaction within the internal environment through the communication of the benefits involved both to the individual and the achievement of business objectives. One of the internal objectives highlight as a weakness and an opportunity is to implement transformational leadership into smith and nephew. This will also address help address the imbalance between management and leadership within LOCOG as transactional leadership favors more management and processed approach. A more transformational organizational culture is more open to change and the adoption of new ideas such as the introduction of quality control systems and improved measures of inter departmental communication.

The targeting strategy will be based on relationship marketing and moving the potential customer from prospect to partner and advocate stage. Depending on the internal customer they may already be at the advocate stage such as supporters, and we will use their 3rd party advocacy to help communicate the benefits of the internal marketing plan.

Marketing Tactics on Employees of LOCOG

Product - The Product is the new internal marketing strategies that Smith and Nephew are attempting to implement and sell to the employee's of the organisation. LOCOG is attempting to sell the benefits of these strategies to the staff in order for them to adopt the marketing plan. In relation to the internal marketing plan the products are:

Change in communication strategy to improve interdepartmental communication between marketing and other departments.

A shift from a purely transactional leadership approach to incorporate transformational leadership within the organisation.

The implementation of Quality systems within the marketing department.

Place - The place is concerned with where the location of new product will be delivered. The new marketing strategies will be implemented and launched primarily within the head office environment through training and meetings. The organization's annual and mid cycle conferences will also be used to encourage the adoption, motivation and personal ownership of the new internal marketing plan.

Price - The benefit both physiological and tangibly to the employee are key to the adoption of the objectives stated with the internal marketing plan. LOCOG must inform and persuade employee's through the communication of benefits to adopt the new practices.

Promotion - The promotional strategy of Smith and Nephews internal marketing plan will aim at promoting the benefits of adopting the new strategies through a range of communication tools.

Advertising - The benefits of improved communication between departments will be detailed within the company magazine and monthly news letter stating the objectives and the process of implementing improved communication channels such as the impending launch of a company intranet.

Public Relations - LOCOG will launch a champion for change group who will act as a pilot group for the launch of the internal marketing plan. These individuals will be supporters from each of the segments and will be used as 3rd party advocates from the initial launch of the plan through the whole implementation process.

Direct Marketing - LOCOG will send a direct mailer to all employees informing them of the planned implementation of quality systems and new communication frameworks in advance of the launch.

Sales promotions - LOCOG will offer prizes for best uptake of the new strategies and best feedback from employees in order to enhance adoption process.

Physical evidence

A number of training manuals and guidelines will be provided to assist in the adoption process and ease the transition. Documentation of the new policies regarding communication and quality systems and the expectations of the business will be clearly detailed. A series of meeting will be used to launch the internal marketing plan to employees and allow a forum for staff to express their opinions.


The implementation of the internal marketing plan will be delivered by the management of the marketing department and wider organisation assisted by the representatives of the champion for change group. In addition external speakers may be used to provide leadership training and case studies highlighting previous examples and benchmarking.


The employees will be trained on site with regard to the new quality control procedures and communication methods once the necessary communications have been completed and feedback received.

Leadership Style of the LOCLG





Figure 1: Leadership Model: John Adair.

Figure 1 shows the John Adair Action centered leadership model. The three overlapping circles signify that the three needs are interdependent. The task cannot be completed without the individual, and the individuals comprise the team. One of the key leadership skills needed to achieve action centered leadership is the ability to motivate. The core functions associated with the action centered leadership model that a leader should possess are:






In addition to the above functions, the completion of a task in a productive and efficient manner is dependant on the team and individuals being motivated to complete the task. "Motivation is concerned with the factors that influence people to behave in certain ways. Motivating other people is about getting them to move in the direction you want them to go in order to achieve a result". (Armstrong 2008, p.35). In addition to motivating, management attributes such as planning and organizing are required so that the individuals, teams and the leader are aware of the timelines, objectives and resources required and available.

LOCOG has a functional organizational structure with a number of divisions. These divisions all need to work collectively in order to achieve the objectives of LOCOG. The process of communication can be difficult in this structure due to the levels of hierarchy and number of employees and this is a traditional problem in tall structures such as LOCOG. This highlights the need for strong management and leadership skills in order to effectively communicate and organize the employees in each division or team. This was highlighted as a weakness within the current marketing department of LOCOG, and communication internally between the marketing brand divisions and the sales force has been identified as an area for improvement.

The leadership of LOCOG need to operate control and quality measures to ensure set standards is achieved. The importance of quality systems within Smith and Nephew is required to ensure maximum effectiveness with the organisation and the market and to achieve competitor advantages, value for money, the achievement of the business objectives and customer loyalty. Inadequate levels of quality can result in customer dissatisfaction, wastage and missed opportunities within the market. These quality systems need to be adopted and implemented by the leadership of LOCOG. Leadership qualities such as inspiring and aligning the staff with new innovative strategies and processes are key leadership traits and are required within LOCOG departments in order for quality systems to become adopted. A quality system such as the European foundation of quality management (EFQM) system focuses on the results and customer approach and the development of high quality individuals and systems. In order for this to be successfully implemented and address quality concerns within departments and organisation the whole business needs clear leadership from the management.

As LOCOG operate a broad structure within their departments there can be a crossover of roles and responsibilities. One of the fundamental strengths of a successful manager is organisation. If brand managers within the departments set our clear role profiles so that the employee of their role requirements, what they need to achieve and the knowledge and skills that are required then confusion and role repetition can be avoided and the department can be more functional with less wastage.

As part of a manager role is to implement the strategic vision of the business as well as allocating resources and budget the manager is in a central position to judge where there are specific knowledge or skills gaps. A key weakness and development area of the marketing department is the absence of certain key roles such as a PR manager and an additional member of staff. As a manager oversees the employees within his or her team they should be able to identify these improvements and allocate the desired resources and budget to implement these changes.

Success is based on a transformational culture of the organisation. LOCOG has a transactional organizational culture that is un-adaptive to change. "Transactional organizations are less able to adapt to changed demands from their internal and external environments". (Armstrong ,2008 p.102 ). This highlights the slow innovation of products, and the development of "me to" products which have innovation to smith and nephew but none to the market.

One of the reasons LOCOG is slow to adapt is because too much emphasis is placed on management in contrast to leadership. Un-adaptive organizations overvalue management and undervalue leadership. There is an imbalance of focus between management and leadership with a transactional form of leadership. The focus is on management and the completion of set tasks by the employees in order to achieve the business objectives. Transactional leaders exhibit specific leadership skills usually associated with the ability to obtain results, to control through structures and processes, to solve problems, to plan and organize, and work within the structures and boundaries of the organisation".(Marturano and Gosling, 2008 p.169) .Transactional leadership has similar qualities to management, therefore is it expected that an organisation with an imbalance to the management to leadership ratio adopts a transactional leadership style. Management qualities focus on the achievement of results based on the business objectives. Transactional leadership focuses on the allocation of reward upon the achievement of these objectives and penalization of staff if these objectives are not reached. A transactional method works on the premise that all employees are motivated by financial reward. In order for employees to adopt the vision and innovation of LOCOG a transformational approach, using charisma, influence and motivation is required.

Nature of the Group Behaviour

The personal behavior is changing person to person. This is purely affecting to the organizational behavior and directly affecting to the group behavior. For change programmes to be successful it is essential that all the people concerned are involved and motivated and that their support is gained. This involves willingness to change, involving people and sustaining the momentum. Implementation strategies too often focus on the hard or process aspects and ignore the very real 'soft' aspects that must be addresses if implementation strategies are to succeed.

As a result Segmentation, Targeting and Positioning strategies should be applied by the new public private partnership to its internal customers to identify the different employee segments in terms of the change activity. The new public private partnership has identified three types of employee segments; Supporters, Neutrals and Opposes.

For each of these segments the following strategy would be applied:

Supporters - target as advocates who in turn will drive the new organisation forward due to their willingness to embrace change as well as help initiate it.

Neutrals - educate this segment on the benefits of the change process with the aim to convert them into advocates of the new organisation

Opposes - target as potential barriers for the successful implementation of the change process and treat with caution.

Motivation and Factors for Effective Team work

In the literature there are number of motivational theories given as Maslow's Hierarchy Theory, Two Factor Theory and etc. But when we come to the practice should have better functioning to have an effective team. The new company would employ the following tactics to encourage adoption by employees and relevant industry partners and in turn lead to a more motivated and satisfied customer-orientated staff:



Prime Responsibility


To announce the launch of a new public private partnership to LOCOGemployees and relevant industry partners and explain the benefits of increased coordination and information sharing within the newly formed organisation.

LOCOG/ Industry Partners

Discussion groups

To explain in detail the strategy and intended structure for the new public private partnership to small groups of employees and industry partners with the opportunity to feedback and discuss key issues.

LOCOG/ Industry Partners

Individual meetings

To further explain the intended role and responsibilities of each individual employee of LOCOGwith their appointed line manager within the new organisation.


New team briefings

To brief the teams within the new organisation as a whole and meet fellow colleagues.

LOCOG/ Industry Partners

Company / partner desk swap

To gain a better understanding of the roles and responsibilities expected between the new organisation and relevant industry partners.

LOCOG/ Industry Partners

Seminars &training

To train either in groups or on an individual basis relevant skills where needed for the new organisation.

LOCOG/ Industry Partners


To keep all employees concerned up dated and generate loyalty as well their buy-in towards the new cause.

LOCOG/ Advertising Agency

Notice board

To announce key meeting dates and appointments for the new organisation.



To keep all employees affected by the process of change updated on a more real time basis with the latest developments and provide the opportunity for feedback as it happens.


Action / Implementation

At this stage the changes are implemented. The change processes relate to the establishment of arrangements to manage the change process, gain staff support, evaluation of implementation and taking corrective action if necessary.

Successful execution of the internal plan is reliant on three key skills according to Jobber (2001):

Persuasion - the ability to develop a persuasive argument and to support words with action

Negotiation - it is likely that some negotiations will have to take place so that all parties concerned are happy

Politics - Organisations are made up of people, all with their own personal agendas and as such it is important that sources of power are identified and used to help implement the change plan.

Below is a rough timeline showing how the change processes may be implemented:













Discussion groups






Individual meetings






New team briefings






Company / partner desk swap






Seminars &training












Notice board













In order to evaluate the success of internal marketing programmes appropriate measures have to be used in order to control the change management process. Below are some appropriate measures that the new organisation will use:

The extent of support of key players in the change management process

Employee satisfaction levels

Reduced customer complaints

Higher customer satisfaction scores

Audit and post-audits of process

It is also important to recognize that internal marketing cannot alone solve all employee-related and customer satisfaction problems. In some cases, solutions lie more in ensuring that the right staff is recruited to the right positions in sufficient numbers and that they are adequately trained and motivated.

Technological impact to Team Functioning

The technology is directly affecting to the team performance. Due to the modern technology changes we could be able to use them into the team performing. As we are in a position to get quick feedback it will be easier to get the immediate feedback.

Sales and Market share

The increase investment within the marketing department has to have an impact of the increase on the overall month by month and year on year sales growth. Therefore analyze the sales and market share pre and post launch of the internal marketing plan and the implementation to the revised role. This will be based on data obtained via IMS, a market intelligence company that obtains global monthly sales. The sales information of products and competitor products will be analyzed into national and geographical trends to access the impact of the revised marketing strategy on the overall sales. As we have the facility to get more data through networking and analytical software easy to team functioning.

Quality Control Systems

One of the fundamental revisions to the marketing role is the introduction of quality control systems to the marketing department. The operation of quality control systems will maximize the effectiveness of the marketing department, improving productivity, reducing wastage, delivering better value for money, and leading to a competitor advantage. The revised marketing role has meant introduction of European foundation for quality management (EFQM) framework. In order to access the impact of the control systems smith and nephew can analyze the difference in named criteria pre and post quality control systems to access changes in the efficiency and effectiveness of the marketing department. Through these systems can focus the team functioning avoid the time waste.

Cost Control

By using modern technology can control the cost factor occurring on team functioning agreed for the implementation of the stated objectives. The role of the HR manager is to control the budget and all HR activities need to have been forecasted into the budgetary requirements. The uses of monthly management accounts will enable the HR manager to compare actual with predicted spend and adjust future activities accordingly. Therefore their needs to be clear information transfer between the HR manager and the finance department on the budget for the revised HR role. By using new software it is easy to complete this process.