Organisational Structures And Culture Commerce Essay

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Organizational structure is a framework used by a company to divide its processes and activities needed to complete business operations. Most companies use a well-defined structure that lists management positions, and who is responsible for tasks and activities.


Mainly organizational structures include functional, geographic, product and customer. Functional help in creating a structure based on activity, geographic on location of businesses, product is mainly based on lines or items produced in groups and customer unit is mainly based on individual, business or consumers.

Organizational Culture

Organization culture is the set of values, rules, beliefs, attitudes and regulations these factors can help members of the organization to know how we will Work. To whom we will report? What we this? Why this is important?

Culture is like a backbone for the organization because it is the internal environment it play a key role to success of the firm

Types of Culture

Power Culture

Task Culture

Role Culture


Tesco and Cadburys are the most leading and biggest names in Britain and have also expanded in to other foreign markets, so we choose both of these firms to comment upon their culture and structure.

Structure and culture of Tesco: Today Tesco has two organisational structures. One for the company as a whole, which includes the board of directors and the other one is the structure used within each of their stores.

The store structure that Tesco uses is very easy to understand with each level of control shown clearly. By having a simple store structure it allows employees to see easily who is in charge of each department or who their department manager is.

Culture of Tesco: When Tesco started out the business had a culture of being a company of cheep affordable products. In Tesco today the company is recognised by the motto of 'pile it high and sell it cheep', but the company has introduced quality 

into its products by offering three different key areas of products. 

The first area consists of very high quality products such as organic 

and these products are usually the most expensive. The middle group of 

products are usually a collection of company branded 

products and covers a wide price bracket. The third group of products 

are Tesco's value range, which consists of the cheapest products.

Structure of Cadbury:

Like Tesco, Cadbury Schweppes also have two different structures. The 

structure that they use for their board of directors has been 

re-designed to "clarify accountability and enable swifter 

diction-making." (Quote taken from 

Looking at the improved organisation structure it is clear to see who 

is in charge of which departments within the business

Culture: The culture of Cadburys started out being paternalistic as the company 

was devoted to making its employees feel welcome and valued within the 

company. Cadburys relied on its staff very heavily as without a vast 

employee base the company would not be the big corporation it is 



Looking at Tesco it seems that they have hit a peak in what they can 

do as they have achieved the view of becoming a 'one stop shop'. The 

down side to some of the electrical goods that Tesco offer is that 

they are not of a brand that some customers would usually associate 

with quality or reliability like Sony, JVC, Phillips and LG.

One down side for Cadburys is that it is hard for a consumer to define 

which product is produced by which company and with such a large 

choice in the market place it is hard for a consumer to stay loyal to 

one brand. To combat this Cadburys have started to have their company 

name on the front of the product example Cadburys dairy milk with 

caramel etc.


All individuals are different and behave differently to people on different situations.

There are many factors which influence the behaviour of an individual. But the most important among them is personality and Perception

Personality plays an important role in influencing behaviour at work and will be also defined as the distinctive traits, thinking and the characteristic of a person. The two main factors which affect personality are heredity and environment of an individual.

Some types of personalities are:


Outgoing, energetic shy, withdrawn

Openness to experience inventive, curious cautious, conservative

Agreeableness friendly, compassionate competitive, outspoken.

Neuroticism it tells about the effectiveness and emotional control in a body. If the level of neuroticism is high in a body then it shows nerviness, sensitivity and instability where it is low levels shows confidence emotional stability and activeness.


In high level its shows energetic or if it is in low level may be described as quite, shyness and unsocial human being.

Agreeableness: It's good to have high agreeableness because it brings the kindness, friendly and team behaviour.

Conscientiousness Individual with a high level is original and effective in the work place. Their focus is just on their job while the person with the low level will be very slow and careless towards his job.

Every individual has a different personality, and because the primary responsibility of any managers is to deal with people, it's important for managers to understand and grasp the different types of personality and the implications of each type for the work place appropriately. With a clear understanding of human nature and individual differences, managers are in a strong position to be effective leaders and take the organisation in a right way. In particular, knowledge and understanding of personality helps manager in hiring employees, leading employees and managing you.


Leadership is the power of one individual to guide the actions of another.

In business organisations, leadership styles generally refer to various kinds of strategies used by managers, in order to produce the best results for the organization. There are many different leadership styles that are used by the managers to lead their employees. The most common among them are democratic leadership, laissez-faire leadership, charismatic leadership, and task-oriented leadership.

The types of leadership styles used in a workplace usually depend on the personal choice of the manager or some time depends on the task or situation in hand. Many experienced managers have a preferred leadership strategy that they applied into their work. Others may use a combination of different methods, generally refining their approach by the time.

Democratic leadership focuses on a group concept. In this leadership style, the opinions of staff members of the business are heard, with the aim of applying the best strategy possible. The biggest advantages of the democratic style are that it allows workers to feel a sense of liberty. It also can encourage them to be creative.



The attainment of an organizational goal in an effective and efficient manner through planning, organizing, leading and controlling organizational resources.

The role of management

Fayal's theory about management

Fayal carried out research into how much managers actually do their work. Then he reached at the point that they should work on the following points.






The manager`s role theory by Henry mintz berg He explains three main types of managerial roles Interpersonal {figurehead, leader, liaison} Informational {monitor, spokesmen, disssminator} Decisional roles {enterer, disturdence handler, resource allocator negotiator}.



In this context of leadership and motivation Professor House's path - goal theory (PG) is the best theory which shows the impact of leadership on motivation. It chooses the best leader behaviour for the situation at hand. The PG theory assumes that leader's main job is to clarify the path from subordinates efforts and performance to the rewards that they value. The reward valued by subordinates are such things as promotions, pay increases, more challenging work, time off with pay more satisfied and more willing to exert effort and to follow orders. The PG theory can be called a transactional theory because the leader exerts influence and the subordinates respond with effort and performance to obtain rewards.

Thus, leaders must be flexible and analytical so that he chooses the correct behaviour to move his subordinates along the sequence of effort and performance to obtain rewards.


Motivational theories mainly include the following theories:

Maslow's hierarchy of needs

Herzberg's two factor theory of motivation


Need level

Description of the level

Organisational example

Highest-level needs


The need to reach one's fullest potential

An engineer uses all of his design skills to create a new subcomponent


The need to feel good about oneself and one's abilities; and to be respected by others and to receive their approval

Company promotes deserving 

managers and recognises employees with awards


The need to experience social interaction, friendship and love

Having and sustaining good relations with co-workers, supervisors, being a member of a cohesive work team and being a part of social functions at work


Need for security, stability and a safe work environment

Having good job benefits, safe working area and job security


Food, water, shelter and clothing to ensure survival

Guaranteed minimum pay level that is sufficient to provide basic necessities

Lowest-level needs

Herzberg's two-factor theory of motivation

This figure shows that employee motivation range from: 

unmotivated-dissatisfaction (resentment); to neutral (indifferent complacence); to motivation/satisfaction with the job. The level of experienced job motivation/satisfaction depends on the availability of hygiene's and motivators shown on the right of the diagram. From the diagram it is apparent that hygiene's (pay, status, peers, supervision, working conditions, and job benefits) by themselves are insufficient to sustain motivation and satisfaction. The various motivators must also be present to sustain the employee's motivation and satisfaction. In other words, hygiene's are necessary but not sufficient to sustain high motivation. The diagram also shows that the absence of hygiene factors leads to job dissatisfaction, but when present, hygiene factors do not necessarily provide job satisfaction. In contrast, the presence of motivators does lead to job satisfaction if the hygiene's are already in place.

Comparing Maslow's and Herzberg's Models

The work of Maslow and Herzberg is different yet related. Herzberg is concerned with work and organisational sources of motivation and satisfaction. Maslow focused on generalised human needs which occur in life situations, one of which is work. Maslow's lower-order needs resemble hygiene factors because they provide the platform from which individuals begin their search for personal growth. Maintenance factors (Maslow's lower-order needs) do not guarantee this growth for employees on the job. Once they are met or satisfied, the individual can pursue higher-order need satisfaction if it is warranted by his job's design. Thus, hygiene's are necessary but not sufficient to ensure employees' personal growth through work. Herzberg's model is a specific application of Maslow's hierarchy to work. It answers some very practical questions about the factors which lead to high motivation/satisfaction and the factors that lead to low motivation/satisfaction. Herzberg's theory appeals to managers because it suggests ways for them to control motivation and job satisfaction through the manipulation of job design and rewards.


Motivation plays a vital role in achieving goals and organisation's objectives and also important for companies that work in a team-based environment or in a workplace where decisions are in the hand of team members. Making sure each employee's workplace goals and values are equally match with the organization's mission and vision is important for maintaining a high level of motivation. That can lead to higher productivity, improved work quality and financial gain across all departments in a business organisation.

By applying theories of motivation managers can:

Puts human resources into action

Improves level of efficiency

Leads to achievement of organizational goals

Builds friendly relationship


Definition: A collection of individuals, the members accept a common task, become interdependent in their performance, and interact with one another to promote its accomplishment

The nature of groups:

Normative views, describes how a group is to be organized and how its activities are to be carried out.

Group dynamics consists of a set of techniques.

 Stages of work group development

If we have to talk about the groups in an organisation or a business, the best example we can see is the world's leading chain of restaurant i.e. none other than McDonalds. McDonald's owes is success to its team functionality rather than the efforts of one individual. McDonald's does not have very highly integrated teamwork, but they would be unable to deliver their products and service without sufficient team unity and cooperation. The team on the floor of a McDonald's restaurant is best described as a functional team.

Factors lead to effective teamwork


Workplace example


Interpersonal attraction

a. Proximity

Clerks in a mailroom form an informal T.G.I.F. club (Thank God Its Friday).

b. Physical attraction

Young engineers join an expensive health club in the hope of meeting attractive people of the opposite sex.

c. Attitude similarity

Students who believe the university should have more intramural sports form a protest group.

d. Economic and social similarity

Chief executive officers of banks are asked to sit on the boards of other banks.

e. Race and gender similarity

Female Indian engineers form a career interest group to discuss employment problems experienced by minorities.

f. Perceived ability of others

Employees with athletic ability organise a corporate sailing team.


Activities of the group

Employees organise a darts club to compete in a tournament.


Goals of the group

Employees organise a fund drive to raise cash for AIDS 

3. The impact of technology on team functioning in an organization:

McDonald's is a multinational corporation, which is perceived as many different things to different people. Some people see McDonald's as a decent, fast and inexpensive meal. Others may view the company chain as a low quality restaurant that employs uneducated and unskilled people. Nevertheless, McDonald's has a cheery corporate image that prides itself on quality and cleanliness, as well as good food and good service. The company employs state-of-art technology to help its workers in their tasks and makes the production process faster, attending to the customers in a prompt manner. In terms of leadership, McDonald's makes a strong corporate effort to develop leaders. There are growth opportunities within the corporation for those who are willing to work hard and develop their leadership skills. There is a great upward mobility for Macdonald's employees. From what we observed in our field study, the work culture displayed in the McDonald's stores is aligned with the firm's corporate values.