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According to BusinessDictionary (n.d) stated that 'an organization can be defined as a social unit of people that is structured and managed to meet a need or to pursue collective goals'. From my point of view, organization means groups of people gather together with the same idea that is to achieve or accomplish specific objectives or goals. Besides that, every organization will have a management department to verify about the relationships between the different accomplishments and the employees, dividing and assigning the right employees to the right position in the organization, and examine about the responsibilities and power to perform in different jobs. In this case, we are focusing on Deloitte. According to Deloitte (n.d) stated that 'Deloitte is the brand under which in the region of 200,000 professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected clients'. From my point of view, Deloitte is a worldwide company but every Deloitte branch or firms in other country will always be referring to the main Deloitte mission and vision because every firm are focusing on the same objectives or goals.
2.1.1 Type of Organization
Generally, there are four types of organization, which are sole proprietorships, partnerships, corporations, and limited liability company. According to Deloitte (n.d) stated that 'Deloitte Touche Tohmatsu Limited (DTTL) is a UK private company limited by guarantee'. Based on the official website, we can say that DTTL classify under limited-liability company.
According to IRS (2012) stated that 'a limited liability company (LLC) is a business structure allowed by state statute. Each state may use different regulations, and you should check with your state if you are interested in starting a limited liability company'. From my opinion, Limited Liability Company (LLC) is a combination characteristic of a corporation and partnerships because owners are named as members rather than partners or shareholders. Besides that, it offers both corporation and partnerships advantages for instance, individual assets are fully secured like a corporation however taxes are responsible by individual members where it is treated like a partnership. Other than that, Deloitte is a profit company by providing services to the clients such as auditing, consulting, financial advisory and tax services. For instance, they will help their clients to analyze the marketplace, set an effective market price for their business, and improve their profits. Based on the Deloitte official website (n.d) stated that 'we can help you in your efforts to increase your margins or market share through the improvement of the way you analyze, set, and deliver prices to the marketplace'.
2.1.2 Organization Structure
According to Stephen P. Robbins (2003) stated that 'an organizational structure defines how job tasks are formally divided, grouped, and coordinated'. In other words, organizational structure is a hierarchy arrangement of communication, authority, duties where it organizes or manages the company's activities and employees of an organization. In this case, Deloitte will have to create their own organizational structures base on the specific country they are going to operate because different country will have to apply different strategy in order to make the company to achieve sustainability to the environment. This is because, a structure rely on the organization goals and strategy in order to create an effective organizational structure.
Furthermore, there are six element that organizations need to focus on in order to design their organization's structure and these are work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.
Work specialization defined as the degree to which tasks in the organization are subdivided into separate jobs. This view supported by the work of Stephen P. Robbins (2003). In other words, work specialization means a task is broken down into a several stages, with each stage are being completed by a separate employee rather than completing the entire job by one employee. For instance, a car manufacture will have many stations in the process of creating or manufacturing a car. The first station is where an employee assembling the right-front wheel and second station will have another employee putting up the right-front door and the process goes on until the process is finish. This will allow the employees to be specialized and their performance to be more efficiently.
According to Stephen P. Robbins (2003) stated that 'once jobs are divided through work specialization, you need to group these jobs together so that common tasks can be coordinated. The basis by which jobs are grouped together is called departmentalization'. There are five ways for grouping work activities, which are function, product, geographical regions, process, and customers. Different company will have to apply different way of grouping in order to match with their business. In this case, Deloitte are able to use departmentalization by geographical regions because Deloitte are operating their business worldwide therefore, they can group up the employees according to geographic areas, services or customers to provide better services to the clients.
Chain of Command
According to BusinessDictionary (n.d) stated that 'chain of command is defined as the order in which authority and power in an organization is wielded and delegated from top management to every employee at every level of the organization'. Other than that, chain of command helps company to operate easily by clarifying who reports to whom. For instance, employees have to be responsible for their accomplishment of the objectives and responsibility for reporting the outcomes to the upper level management or team members. Every organization will need to create a chain of command so that everything will be follow and obey by the employees and they will not be complex because they know who to report to and to whom they are responsible.
Span of Control
Span of Control can be define as the number of subordinates a manager can efficiently and effectively direct (Stephen P. Robbins, 2003). From my understanding, span of control means how many employees that the manager is able to manage and control capably and well. Deloitte should apply a wider or larger span of control because it helps the organization reduce costs, quicker decision making, increase flexibility and have a closer relationship with the clients.
Centralization and Decentralization
In an organization, there are two ways for making decision and that is centralization and decentralization. A centralize organization is where the top management will make the decision and other will have to obey or follows without any suggestions. In contrast, for decentralize organization, they will allow the lower level management to make the decision or to provide suggestion to the higher-level management. In this case, Deloitte will have to gather information about the country that they are going to operate so that they will know either to apply centralization or decentralization to the organization. Some employees will not have the ability to make decision and the organization will be centralize and if employees with a lot of knowledge about their clients, the organization is better to be decentralize in order to solve problems and take quicker action. For instance, Deloitte is a UK company and they want to operate in Malaysia, hence if Malaysia laws and regulations stated that any foreign company that operate in Malaysia will need to hire the local people and they will give full authority to the Malaysia Deloitte top-management to make decision and to take action.
Finally yet importantly, according to Stephen P. Robbins (2003) stated that 'formalization refers to the degree to which jobs within the organization are standardized'. If a job is highly formalized, then the level of authority over what should the employee to achieve, when it need to be done, and how the employee should do it because if the job or tasks are formalized, employees will get things done in exactly the same way and produces output consistently. For example, Deloitte are providing services such as auditing, financial advisory, and many more. They will give advice to the clients on how to improve their business and to increase profits but before that, they will need to analyze the clients business and gather information in order to provide a proper suggestion. This method will be continuously being use to every client.
2.1.3 Organizational culture
According to Stephen P. Robbins (2003) stated that 'organizational culture is a system of shared meaning held by members that distinguishes the organization from other organizations'. In other words, organizational culture is how the employee does things in the organization based on values, rituals, myths, and practices. In this case, Deloitte will need to consider on the country that they are operating because different country will have different kind of culture.
Furthermore, there are seven important elements to combine in order to form an organization's culture and there are innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability.
Innovation and Risk taking
Innovation and risk taking is a level to which employees are supported to be innovative and take risks. Organizations usually will encourage their employees to create new ideas and take risk in order for the employees to improve their skills and knowledge.
Attention to detail
Attention to detail is the level to which employees are likely to show accuracy, enquiry, and attention to detail. Organization will take attention to detail seriously as aspect of success because they will be very alert to opportunities that arise and will not make any unnecessarily mistakes.
Some organization, they focus more on the outcome rather than the process. For outcome orientation is to analyze the level to which management emphases on results rather than on the methods and processes used to accomplish those outcomes.
For people orientation is the level to which management to concern about the effect of results on people within the organization. In other words, the organization will take care of their employee and provide a better environment for them to work in.
Team orientation means employees are being divided into groups to achieve their objectives rather than working alone. Team orientation can be very useful to an organization because they can work effectively and they can share ideas among each other to achieve the objectives of the organization.
Aggressiveness means the organization are being aggressive and competitive to their employees instead of being an easygoing attitude. Aggressiveness will also improve an employee performance or productivity. On the other hand, aggressiveness will also help the organization to achieve a higher level rather than to be stable and being constant.
There are some organization are not concern about growth but they focus more on stability. Organization that focuses more on stability is maybe their business formerly achieves the maximum level and they concern about maintaining their current level of success.
In this case, one of an example of Deloitte organization culture is based on Deloitte Australia websites. According to Deloitte Australia (n.d) stated that 'there are seven signals that make us unique, engaging, and successful are continuously grow and improve, have fun and celebrate, aim to be famous, play to win - think globally, talk straight, empower and trust, and recruit and retain the best'. Based on the seven elements of organizational cultures and seven signals of Deloitte Australia, there are few common between the both. For instance, Deloitte Australia encourages their employees to create new ideas and take risk, and seek new challenges along with innovative ways of adapting to change is similar with the definition of innovation and risk taking. Besides that, for people orientation, Deloitte Australia provides a cheerful environment for the employees to work in 'Have fun and celebrate'. Deloitte Australia will take care of their employees well by providing them reward and opportunities to contribute to the community.
2.1.4 Relationship between structures and cultures
Organizational structures and cultures have a reliant on relationship on each other. This is because an organizational structure is to define the attitudes, behaviours, personalities, and beliefs that form the work culture. Generally, the system a company assigns of authority and power will decides on how employees work. Therefore, if the organization structure is centralized, employees will have less freedom and less innovative chance to improve however on the other hand, if the organization structure is decentralized, employees will encourage creating new ideas and taking risk. Hence, the culture is probably to be more independent and personalized. The main objective of the relationships between organizational structures and cultures is to assist the organization to ensure that each employees or individuals understand the full degree of responsibilities and work expected out of them.
An organizational structure and culture is important to an organization because they will help the organization to achieve stability or improve productivity of the company. If the organization organizes or manages their structure correctly, they will have a strong culture and a strong culture is more possible to have a strong and efficient management structure.
2.2 Definition and Approaches of Management
In every organization, management and leadership is important because both of it will help the organization to increase the efficiency and effectiveness. Henri Fayol (2004) 'to manage is to forecast and to plan, to organize, to command, to co-ordinate and to control'. In other words, management includes organizing and controls the work activities of others so that their activities are completed efficiently and effectively.
Furthermore, there are four main functions in management in order to increase efficiency and effectiveness of the organization. The four main functions are Planning, Organizing, Leading, and Controlling. Firstly, managers will need to define the organization's goals or objectives, creating strategies to accomplish those goals, and forming plans to integrate and coordinate activities.
After the manager have created and plan for the organization goals, the manager are also be responsible for designing an organization's structure, which called function organizing. In this approach, the managers will organize the jobs that needs to be done, who should be involve in the job, who should reports to whom, and where decisions are made.
Moreover, the third approach will be leading and this is where managers need to encourage or provide motivation to the employees, guide the employees, resolve conflicts between them, and apply the most effective way of communication.
Finally yet importantly, controlling approach means the managers need to analyze and monitor their employee's performance, make sure that things are going smoothly and correctly. The employee's performance need to be compared with their previous records so that the manager will know where to correct or improve their employees.
2.2.1 Definition and Approaches of Leadership
According to Stephen P. Robbins (2003) stated that 'leadership can be define as the ability to influence a group toward the achievement of goals'. When a group is more than two people, either one of them will be the leader to influence the other person to follow his orders. In an organization, a leader is very important because he is the one who control and lead the group or department, if a professional leader will have the ability to lead or control the specific group or department effectively and efficiently towards to accomplish the organization's goals.
In addition, leadership and management is different because management is to ensure that the job is being done effectively and efficiently whereas leadership is an spontaneous approach that focuses on the strategies to influence the subordinates to do the precise work in order to increase the organizational effectiveness. Apart from that, leaders are also different from managers. Leaders will not have a formal authority to command the employees where managers have. Leaders will have the abilities or capabilities to influence the followers to complete their jobs. Leaders can be formal or informal because they will act or do things their own way even they do not have the power to do so.
Furthermore, there are two types of leadership style, which are Transactional and Transformational leadership style. David Ingram (n.d) provides both definition for Transactional and Transformational leadership. He stated that Transactional leadership styles are more focused with sustaining the normal flow of operations. In other words, Transactional leadership means a leader that inspires and guides their followers by descriptive role and task requirements for accomplishing the organization's objectives or goals. Besides that, he also stated that a Transformational leader goes beyond handling day-to-day operations and strategies for improving the company, department or work team to a higher level of performance and success. Transformational leadership is leaders that concern and improve needs of individual followers and they will assist their followers by changing their awareness or attention of issues in a better way.
2.2.3 Deloitte Management and Leaderships
In this case, most company will apply or implement the four main function of management, which includes Deloitte. Deloitte will train or provide their managers a development program to understand more about the four functions, which are Planning, Organizing, Leading, and Controlling. This four main function will improve Deloitte manager's performance and will help the manager to coordinate with their work team more effectively and efficiently to accomplish the organization's goals. Apart from that, Deloitte are practicing the Transformational leadership where a leader practices inspirational vision to influence their followers to work harder and states out the important determinations in an easier way.
According to the CEO of Deloitte Barry Salzberg (2011) stated in his speech that 'the kind who gives orders, not encouragement, who expects people to speak only when spoken to. I knew then, and I have proved it repeatedly during my career, that you never know where the best ideas will come from'. From the sentence that Barry Salzberg stated above, we know that he is practicing the transformational leadership because he inspire his followers and also allow them be more creative and the abilities to solve problems. He is not a leader that will only reward the employees because of their best performance but he will motivate his weak followers to be more intelligent in doing things.
Management and leaderships are important to an organization because it helps to motivate or coordinate their followers or employees to work more effectively and efficiently. Besides that, the organization will need to provide training or development program for their managers or leaders in order for them to learn how to lead and manage their work team effectively. Superb management and leaders will also provide the organization a comfortable environment for the employees to perform therefore, the organization will need to put effort or improve their management and leadership continuously.
2.3 Definition of Motivation
According to Kendra Cherry (n.d) stated that 'motivation is defined as the process that initiates, guides and maintains goal-oriented behaviours'. Motivation is important to an organization because it helps to inspire or guide their employees to perform effectively and efficiently. In an organization, the people who get things done and generate profits and productivity are the employees. Therefore, if an organization with superb plans but without any employee to runs it, the plans will only stays as a plan and without any progress.
Apart from that, motivation will also provide job satisfaction to the employee. Organization provides high quality of job satisfaction will definitely increase the employee's performance. Hence, managers or the organization will have to focus on motivating their employees in order for them to perform or accomplish the organization's goals.
2.3.1 Theory of motivation
There are few theories for organization to implement for motivating their employees to perform better. One of the best-known motivation theories is the Abraham Maslow's hierarchy of needs. Stephen P. Robbins (2003) explained about the hierarchy of needs in his book "organizational behavior". He stated that 'there is a hierarchy of five needs such as physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant'. From my point of view, we need to satisfy the lower level first, which is physiological need, and then only seek for the next level of needs. However, human being is not easily to be satisfied and they will seek for more or higher level of satisfaction of needs.
Additionally, there is another theory, which analyzes the employees' motivation is clarify as McClelland's Theory of Needs. According to MSG (n.d) stated that 'McClelland's Theory of Needs is about the human behaviour is affected by three needs, which is Need of Power, Achievement, Affiliation'. This theory motivates people to achieve higher level and gain exclusive authority in an organization. Besides that, it helps to motivate employees to work more effectively towards accomplishing the organizational goal because the organization will motivates them with the three elements, such as need of power, achievement, and affiliation. The following will be the simplified elements of Maslow's hierarchy of needs and McClelland's theory of needs:
Maslow's hierarchy of needs
Physiological needs - The basic needs, which include hunger, thirst, shelter and other bodily requirements.
Safety needs - second level of needs, which include protection and security from bodily and mentally harm.
Social needs - third level of needs, which include friendship, acceptance and families.
Esteem needs - this level onwards will be increasingly important because it includes self-respect, social recognition, and achievements.
Self-actualization needs - this is the final yet highest level of the hierarchy of needs. This levels of needs include self-aware, growth, self-fulfillment, and accomplishing one's potential.
McClelland's theory of needs
Need for achievement - a strong need to set and accomplish challenging objectives, takes risks to achieve their goals, and likes to get back a regular feedback on their work and accomplishment.
Need for power - wants to control and influence others, status and recognition, and appreciates winning and competition.
Need of affiliation - desires to be liked, and will follow whatever the rest of the groups decisions.
2.3.2 Motivation affects employee's performance of Deloitte
In Deloitte, employees are the company's most important asset and should be treated well. Deloitte should practice or implement Maslow's hierarchy of needs to satisfy their employee and help them to improve their performance. For the Maslow's hierarchy of needs, Deloitte provided safety and social needs to their employees.
Furthermore, Based on the Deloitte website, Deloitte provide safety needs such as health insurance for individual and their families, and wellness program so that employees will also have time for exercising and keeping in good condition. Health is important to a human being, if a person in a good condition they will have positive thinking and perform effectively, therefore every organization should provide health program to their employees so that, they will have the time to exercise and stay fit and healthy. Besides that, it will also motivates them to work better because the employees will not need to work all the time and have a period of time for them to relax or loosen up, thus it will also reduce the level of stress of the employees and increase their performance. Additionally, wellness program can also consider as a social needs because Deloitte also provides leisure outings to their employees and they can meet and be socialize to know more about the company or their colleagues. Once the employees build a positive relationships among themselves, their work performance will also increase. When Deloitte satisfied their employees basic needs, employees will feel secure and comfort. Therefore, employees will increase their loyalty to the company and it helps the company to reduce the turnover rate that can save costs, time and seek and train for new employees.
In an organization, not only plans, management, or productivity is important but also their employees. Employees are the one who helps the company to operate plans, management and productivity. Employees are the most important assets in an organization; therefore, organization should treat their employees well and provide better job satisfaction in order for them to perform more effective and efficiently to achieve the organization goals.
2.4 Definition of Technology
According to Stephen P. Robbins (2003) stated in his book that 'technology refers to how an organization transfers its inputs into outputs. Every organization has at least one technology for converting financial, human, and physical resources into products or services'. In today's world, every organization must have or uses technology to help them to work or increase their organization productivity or production or else the organization will be one-step behind with their competitors or in the marketplace. Besides that, technology uses to describe machinery and equipment that use electronics and computers to produce those outputs. Many companies have substitute machinery for human labor in the process of converting inputs into outputs.
Furthermore, technology will perform way more effectively and efficiently compare with human labor and it can help the organization to save cost and time. However, organization needs to take time to change their workplace environment because of the substitution of machinery for human labor. Technology is changing the workplace and affecting the work lives of employees because if the organization is improving through technology, the organization will certainly reduce employee for saving cost and time.
2.4.1 Advantages and Disadvantages of Technology
There are few advantages and disadvantages of technology. Technology not only changes or improves organization but it also helps to change to world to be more convenient and reachable generation. However, technology provides many advantages but also it has some disadvantages.
Technology provides advantages such as easier life and cost efficiency. For easier life or work, technology can reduces the people's time by traveling, communicating and searching for information. Automobiles such as cars and bikes or airplanes and trains will help those people to travel from one place to another faster and more conveniently. Besides that, communication technology helps organization to improve or increase their productivity because they can search for information in the simplest way by using the computer and internet. Other than that, nowadays a lot of organization starts to practice video conferencing and chatting to communicate with the other party faster, more effectively, and efficiently.
Moreover, according to Lynda Belcher (n.d) stated that 'cost efficiency is an advantages in some ways and a disadvantages in others'. Cost efficiency is an advantage because technologies are improving on new ways to accomplish tasks, where machines have the ability to produce the same or more amount of output than humans do. This will save cost for business owners and they can invest or upgrade on other weak areas in their company.
The disadvantages of technology will be dependency and less value in human workers. In today's world, almost every organization uses technology in their daily life or at work. The more advance society becomes technologically, the more people will start to rely on computers and other gadgets of technology for everyday existence. This means that, when a machine breaks down or computer crashes, the organization will need to put a hold on everything until the problems is fixed. This type of dependency on technology will highly cost an organization or company for loss, which will also be a disadvantage for them.
Furthermore, organization starts to use machines and computers rather than human workers because machines and computers produce or work faster and cheaper than human workers work, but in another way of view, organization will be replacing machines for human labor therefore human workers will be fired. This will cause an issue that has a global impact because there will be more and more people losing their job or jobless. This is also considering on of the disadvantage of technology.
2.4.2 Definition and Function of Team
According to Susan M. Heathfield (n.d) stated that 'a team is any group of people organized to work together interdependently and cooperatively to meet the needs of their customers by accomplishing a purpose and goals'. Teams will help organization to increase performance by providing the positive synergy. Apart from that, teams will create the potential for an organization to produce greater outputs with no increase in inputs if the organization uses team frequently.
There are three main functions or types of teams, which commonly exist in an organization. The three functions are problem-solving teams, cross-functional teams, and self-managing teams.
In problem-solving teams, there are five to twelve employees from the same department to discuss or share ideas of ways of improving quality, efficiency, and the work environment. They have the authority to implement any of their suggested decision. Their focus is to discuss about their quality problems, examine reasons of the problems, provides solutions, and take corrective actions.
In cross-functional teams is where employees are being gathered with the same hierarchical level but different work department to accomplish a task. Cross-functional teams are effective because they allow employees from different departments within an organization to share information, create new ideas, solve problems and coordinate complicated projects.
In self-managing teams, consist of ten to fifteen employees who are responsible of their former supervisors. Self-managing teams, is where the employees perform independently for assigning tasks to members, taking action on problems, making operating decision, and negotiating with customers and suppliers.
2.4.3 Technology affecting Deloitte's Team Functioning
In this case, Technology will help Deloitte employees to increase their level of communication and teamwork through video. Based on the scenario, Deloitte made a strategic decision to launch a video department in 2005. This is a new way of communicating with employees or even customers. Video conferencing is more attractive and convenient way to understand rather than to write down the whole process in a piece of paper. Human being will tend to get bored easily and video is one of a convenient way to communicate or motivates employees.
Besides that, video conferencing will also motivate employees to work or communicate effectively and efficiently and it will increase teamwork among employees because they can frequently communicate or share ideas through video conferencing at different places. Apart from that, video conferencing will allows all the members in the organization to stay connect because lower level employees will not have the chance to communicate with top management but with using video, everyone in the organization will have the chance to share about ideas, information, knowledge, and communication. Moreover, with this new features in the organization, it even increase the level of teamwork between departments because they can exchange information, ideas, solving problems, and coordinating complex project wherever they are and can regularly stay connected with their teammates.
Technology plays an important role in an organization in today's world because technology provides conveniently for organization to save costs, time and seek for information in a simplest way. Besides that, technology also increases teamwork in an organization, where they can exchange information, share ideas, solving problems, and searching for information through computer, and video conferencing wherever they are. Finally, technology helps organization to improve their productivity and performance.