In the assignment, task 1 is discussed about the type of organization, the associated structures and the organizational culture within Deloitte. Through this, it will show the relationship between organizational structure and culture in Deloitte. In task 2, there are discussing about the different approaches that Deloitte has taken to its management and leadership. After that, task 3 is talk about the relationship between motivation and performance for Deloitte. In the end, task 4 is discussed about the impact of technology on Deloitte's team functioning.
The name of the Deloitte covers a number of independent firms across the worlds that are members of Deloitte Touche Tohmatsu Limited (DTTL). The company offers a range of services in different countries, in their national laws and regulations.
Deloitte member firms implement the company's global strategy in more than 140 countries worldwide. Deloitte offers audit, tax, enterprise risk and financial advisory services. Deloitte Consulting services are divided into five categories: Strategy and Operations, Human Capital, Technology Integration, Enterprise Applications and Outsourcing.
2.0 Introduction of Task 1
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In this task is talking about the type of organization, the associated structures, the organization culture within Deloitte and the relationship between organizational structure and culture in Deloitte.
2.1 Type of Organization in Deloitte
According to Deloitte (2012) website states that "Deloitte is the brand under which in the region of 200,000 professionals in independent firms throughout the world collaborate to provideÂ audit, consulting, financial advisory, risk management and tax services to selected clients." Deloitte aggregate member firm revenues of US$28.8 billion for the fiscal year ended 31 May 2011. So Deloitte Company is for-profit organizational.
2.2 Organization Structure of Deloitte
organizational structure of Deloitte.png
Table 1: Organizational Structure
Organizations can be generally categorized into four main structures which is the Functional Structure, the Divisional Structure, the Matrix Structure and the Hybrid Structure. Besides that, the organizational structure plays a very important role in determining corporate communication, and defining the executive and managerial hierarchy. According to the website www.emaytrix.com the organizational structure will be affected and impacted by six elements which are formalization, span of control, chain of command, work specialization, departmentalization and centralization or decentralization.
2.2.1 Work Specialization
Work specialization is the degree to which tasks in an organization is subdivided into separate jobs that study by (Robbins, SP., et al., 2011, p.523). The work will be more efficiently if the employees are allowed to specialize. For example, from the figure show that the Deloitte of Client &Markets Executive Committee department, which the organization task are subdivided into separate jobs to individual employees such as product development, Industries, Deloitte network and Markets.
Departmentalization is means the job grouped together. In the Deloitte structure, departmentalization is a functional departmentalization that grouping in a function performed. The DTTL Affairs are organize the plant by separating Financial Control, IT, Human Resources, Office Administration, Marketing & Communications and Talent by placing employees with shared skills and knowledge into department.
2.2.3 Chain of Command
According to Robbins,SP. (2011, P. 417) chain of command is the unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. For example, the office of the CEO which has receives task from the Board of Directors. Therefore, the CEO has unity of command to assigning the task either into strategic & Operation Coordinating Committee or bottom line of employees.
2.2.4 Span of Control
Span of control is how many the employees can a manager efficiently and effectively. These spans of control could be speed up the decision making, increase flexibility, maintain good relationship to the customer, and empower the employees.
2.2.5 Centralization and Decentralization
Robbins, SP., et al. (2011, p.527) stated that the degree to which decision making is concentrated at a single point in an organization. If the top management makes the organization's key decision with little or no input from lower-level personnel, then the organization is centralized.
Decentralization is the decision discretion pushed to lower-level employees. Deloitte Company allow the organization to get some idea from labour by sharing the decision making in the organization. Example of Strategic & Operations Coordinating Committee is given empowerment to the lower-level employees to make decision in an organization.
Always on Time
Marked to Standard
Formalization refers to the degree to which jobs within the organization are standardized. Employees can be expected always to handle the input in exactly the same way, resulting in a consistent and uniform output.
2.3 Organizational Culture
According to Robbins (2001, p.510) organizational cultures are defined as to a system of shared meaning held by members that distinguishes the organization from other organizations. This system of shared meaning is, on closer examination, a set of key characteristic that the organization values. Organizational culture is an important factor in the determining the how successful in an organization so the organizational culture are made up of the ideologies, principles, values and beliefs that the employees or individuals within an organization share. According to Deloitte webpage titled "CHAPTER" states that: Our seven Signals are what make us unique, engaging, and successful - they are at the very heart of the Deloitte culture.
2.3.1 Innovation and risk taking
According to Robbins (2001) innovation and risk taking are states that the degrees to which employees are encouraged to be such innovative and take risk. For example, the first signal stand by the "C" is the continuously grow and improve. It can encourages the employees to seek the new challenges in innovative way to adapt to change and learning through the three G's which are included Grow the Business, Grow the team and Grow Yourself. Through this, employees can challenge their outside expertise.
2.3.2 Attention to detail
Attention to detail is employees are expected to exhibit precision, analysis and attention to detail. The signal would be "H" which stands for Have Fun and Celebrate. It can encourage the employees within Deloitte to always have fun while at work and to embrace a playful culture with serious commitment when doing the job at hand. Employees can be encourage the colleagues to strive to produce their best work while recognize positive behavior and successes.
2.3.3 Outcome orientation
Outcome orientation is the management who focus on outcome rather than the things to do in processes to achieve the outcomes. The next signal is the "A" which stands for Aim to be Famous. Deloitte is the differentiation of the different abilities of employees, individuals and as a firm goal is to become famous. Therefore, the company itself in the market deep specialization and development, and describes a clear point of view in the future.
2.3.4 People orientation
People orientation studied by Robbins, SP., et al. (2011, p.554) which is the degree to which management decisions take into consideration the effect of outcomes on people within the organization. The signal of the Deloitte culture is "P" which means play to win and think globally. The employees of Deloitte believe in their ability to win and building the meaningful of relationship and network in both locally and globally. With this play to win attitude, the employees are able to challenge the norms in order to deliver superior offer to clients. Employees who are collaborate and act beyond the boundaries of teams and local market. Besides that, they also will deliver their promises.
2.3.5 Team orientation
Team orientation mean when organized the work activities it will more focus on the team rather than individuals. "T" is the signal in Deloitte culture which is "Talk straight", it means every individual like to tell it like it is, with the empathy and respect. Deloitte are emphasises on being open, regular and honest in giving constructive two-communication throughout the firm and to its clients and speak positively and respect each other's differences. They are more often working in the team when doing the client assignments.
Aggressiveness mean that the people who are positive and competitive rather than easygoing. The signals within the Deloitte's culture are "E" which standing for Empower and Trust. Empower and Trust provides guidance and support and entrusting responsible and authority to all employees. Employee should be taking personal accountability for their own actions. In Deloitte, the employees will be build trust to each other and act responsibly and ethnically on their job.
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According to indiastudychannel.com (2006) stability described as the degree or extent to which maintaining status quo is emphasized in contrast to growth.Â In Deloitte, they are require employees to participate in maintaining and growing talent into the community of experts, innovation and creativity of employees to make a positive and valuable company for the customers. Therefore, Deloitte staff are to issue a permit in the environment to nurture talent thrive actively, and attract 'like minds'. Hence, Deloitte acts like a brand champion and invite more to do so. Through this, innovative learning experiences will be sharing wisdom by each individual and develop good relationships.
2.4 Relationship between organization structure and culture
The relationship between organizational structure and culture can be seen as Deloitte is based on a departmentalization structure, which the work activities are being grouped into functional area within the organization.
The span of control structure is the number of worker was directly control by a manager or supervisor with a direct relationship among peer-to-peer or manager and subordinates through delegations of command and decision making. While the organization culture will be people orientation to which play to win and think globally that collaborate and act beyond the boundaries of teams and local market. Employees and manager are foster meaningful relationship and networker by deliver on their promises and believe with ability to win.
In a decentralized structure, Deloitte is able to empower the lower-level employees with the power of decision making which allows the lower-level employees to be quicker in taking action and becoming more effective in getting things done in a much shorter time frame. So the organization culture will be empower and trust with the ownership and pride by provide guidance and support, build confident in each other within the organization.
2.5 Organizational Design
Organizational design service is focused on helping clients of all sizes and industries to create effective cultures, organizational structures, workforces, teams and individual performers. It involves six elements which are work specialization, departmentalization, span of control, centralization, decentralization and formalization. These six elements will affect the structure and culture as these factors determine how the structure will be such as decentralized or centralization and also the degree of formalization. Besides that, the culture will need to follow to structure to support the core functions of the organization. According to the Deloitte website "Working in A Virtual World" organizational design used by the Deloitte is Virtual design.
In this task is discussed about the six organization structures and seven cultures of Deloitte. Besides that, it also discuss about the relationship between organization structure and culture in Deloitte. With the seven C.H.A.P.T.E.R signals, Deloitte's organizational culture are to achieve excellence in their performance and the provision of high quality services to their clients.
3.0 Management and Leadership
According to smallbusiness.chron.com (2012) organizational management is dividing operational functions into sections allows management to obtain a clear picture of what the goals of a department are and how to implement the goals most effectively. It also allows managers to respond rapidly to factors that affect the internal or external expectations of company. Robbins, SP., et al. (2011, p.554). leadership is the process of influencing individuals and groups to achieve goals. Deloitte Management Consulting is a leader in the field and provides end-to-end solution to help organizations plan, growth, structure, and technology to make their business.
Planning is the management function concerned with defining goals for future organizational performance and deciding on the tasks and resources needed to attain them. When they have planning, they must establish objectives to achieve. For example, Deloitte plan to launch the video department to convince within the organization.
Organizing is the management function concerned with assigning tasks, grouping tasks into departments, and allocating resources to departments. For example, Deloitte will giving tasks for manager follows the planning and reflect the organization tries to accomplish with the plan.
Leading is the management function that involves the use of influence to motivate employees to achieve the organization's goals. For example, Deloitte organization will choose a leader use of influence to motivate employees to achieve organization goals.
Controlling is the management function concerned with monitoring employees' activities, keeping the organization on track toward its goals, and making corrections as needed. For example, Deloitte will monitor employees' activities, determining whether the organization is on target its goals, and making corrections as necessary.
Organizations need strong leadership and strong management for optimum effectiveness. The leaders function divided to two function of the leaders that is transactional leaders and transformational leaders.
According to the website leadershipchamp (2008) states that the transactional leaders work within the organizational culture as it's exist. The ability of this type of leader which is to satisfy their subordinates may improve productivity. Deloitte have multi-discipline commitment teams control years of industry knowledge and internal expertise to take into account all aspects of the deal.
The transformational leader changes the organizational culture. Deloitte transformation strategy is the core of developing Deloitte leadership and retaining talent for long term careers which require them to provide exceptional work experience, ongoing learning and a evolving corporate culture. The ability of this type of leader which is to satisfy their subordinates may improve productivity.
Deloitte have achieved the objectives to more efficiently and employees have the resources needed to get job done. Deloitte have to using the management role to manage the company.
Motivation can be defined as the processes that account for in an individual's intensity, direction, and persistence of effort toward attaining goal. Motivation also can affect a person's decision-making process, which internal in nature. Therefore, motivation in management can be said to be the process of influencing the behaviour of the employees. In order to find out the right form of motivation, there are multiple motivational theories which are used in organization to match the right form of motivation to stimulate the right response in boosting performance. Examples of commonly used motivational theories are Maslow's Hierarchy Motivation Theory, Herzberg's Two-Factor Theory and the X & Y Theory.
4.1 Maslow's Hierarchy Motivation Theory
According to the table (Appendices 1) Maslow's Hierarchy Motivation theory states that there is a hierarchy of five needs that are physiological, Safety, social, esteem, and self-actualization. Each of these are needs substantially satisfied, the next need will becomes dominant. First level is the physiological needs which are individual will aim to require sustaining the life such as water, shelter and other bodily needs. The next two levels will be safety needs where the individual aims to security and protection from physical and emotional harm. While the social needs is interaction with other peoples. Then the next one is the esteem needs to represent the higher needs of humans. Esteem needs also have two factors that are internal and external. Internal esteems include the self-respect and autonomy while the external factors include the social status and attention. The final motivators are the self-actualization which is self-fulfilled and provides employee the challenges. Based on Maslow's model, the organizations are able to motivate their employee and managers must be able to recognize their needs and offering them the most suitable reward as a motivation.
4.1.2 Theory X and Theory Y
In the X and Y Theory, employees can be divided into two groups that are X and Y. According to Robbins (2001) theory X states that the assumption that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform while in the theory Y states that the assumption that employees like work, are creative, seek responsibility, and can exercise self-direction. Based on this theory, organizations nowadays utilize Theory X or Theory Y techniques in its management. Organizations utilizing Theory X would use that lower order needs dominate individuals and the Theory Y would be high order needs dominate individuals.
4.1.3 Herzberg's Two-Factor Theory
According to the website education-portal.com Herzberg's Two-Factor Theory is based on the assumption that there are two sets of factors that influence motivation in the workplace by either enhancing employee satisfaction or hindering it. Hygiene factor is ensures employees are not become dissatisfied. Motivation factor is motivating the employee into high performance. Herzberg's theory is to allow workers more responsibility in planning and controlling their work.
According to Deloitte (2012) website performance is a triennial digest, dedicated to investment management professionals, which brings the latest articles, news and market developments from Deloitte's professionals and clients. Employees perform assigned work and help to achieve the company's goals. If the company has an integrated company-wide performance management system in place, the employee's performance is no longer a vague concept, but a set of clearly defined expectations (goals) to employees in a given location. The strategic objectives of the company are to determine the expected decomposition detail level of the general staff. Employees seeking the motivation to meet specified goals while the company able to help the employee by setting the conditions and measures to achieve the goals. Therefore, the corresponding work performance of employees and remuneration (including financial and non-financial) is how to meet the needs of the staff. The higher the motivation, the higher the performance will be, this is due to the fact that with a higher level of motivation, that particular individual will drive himself to perform much better. The motivation can be due to a reward when the employees completing a task and they will willing to perform the best.
Motivation and performance are important to the management. Motivation in management can be said to be the process of influencing the behaviour of the employees. In the Performance, employees perform assigned work and help to achieve the company's goals.
5.0 Effective and efficient of the team
In management terms, effectiveness and effectiveness is defined to be doing the right thing and doing things right. By using video conferencing, Deloitte is able to achieve efficiency and effectiveness in its team as this technology allows the coordination and integration among themselves. With video conferencing, they can save cost hence practising efficiency while being effective they can directly communicate to the leaders and the business strategy.
5.1 Impact of the technology on Deloitte
Video conferencing is considered to be one of the most effective forms of communication using electronic means because the impact that video conferencing upon business in general is significant as it enables businesses and persons from different places even the other side of the world to have a meeting and discussion.
Before video conferencing was implement to business, businesses had to plan, coordinate and schedule meetings and conferences that involved departments or associates in various locations. This required costly travel expenses and time away from the office. In addition, it also decrease the efficiency of the work been done. Therefore, when videoconferencing was implemented, it has eliminated the need to travel to meetings and help the company to save money in the process. Besides, the installation process for video conference is very easy because it just required a webcam, an LCD projector and a computer and with video conferencing.
Next, as a starting point, the rapidly cheapening proliferation of video conferencing software and apps for desktop, laptop and tablet computers as well as mobile devices has created an atmosphere in which even small business owners and individuals with no landline telephone access can often download freely available online apps like Skype and others to communicate with each other and this can help the small company to save their cost. Besides, using the same data transmission media, they can also share information and documents easily and cheaply. This is becoming more and more easily possible due to the wireless and broadband networks that are spreading their coverage across the entire African continent.
5.2 Advantage of using video conferencing
The advantage of using the video conferencing is can improve hiring and retention of top talent. Hiring processes can be very lengthy and costly sometimes, especially when candidates are located in other cities and countries or when multiple people are involved in the interview process. Organizations that with video conferencing systems in their offices can reduce expenses and time by bringing candidates into the nearest facility and allowing interviews to be conducted both in person and over video. Video interviews can also be recorded, enabling persons unable to be part of the live interview process to see and evaluate the candidate over video. On the other hand, video communication impacts employee retention just as positively. Examples include improved cooperation by allowing remote employees to become closer faster with other team members as they can share the ideas and messages with each other in a short time. Not only that, it also can help employees retain work and life balance by mitigating travel so they can spend more time with their families and allowing employees to work partially or full time from home, to alleviate the impact of commuting or simply engaging in real-time face-to-face interactions that are richer and more fulfilling than any alternative short of a live in-person meeting.
Video conferencing also allow company to sustained competitive advantage in the market. Video communication offers multiple paths for creating and maintaining competitive advantage. Teams communicating over video share knowledge more widely, resulting in faster and more informed decisions made that reduce the time to market for new products and services. Support teams leverage video to create more personal, one-to-one relationships with their customers, encouraging a loyalty far beyond the capabilities of a traditional call center agent. In addition, manufacturing organizations can use video conferencing and content sharing to verify product quality, make revisions, and ensure accuracy throughout the supply chain, while their competitors continue to rely on next-day delivery of services. Video also enables sales executives to clearly and immediately appreciate the status of the pipeline, beyond the rows on a spreadsheet. Public relations and human resources departments can promote the organization's use of video as proof of corporate efforts to protect the environment, helping to ensure they end up on the short list of preferred vendors for environmentally friendliness in competitive governmental or commercial bids.
5.3 Disadvantages of using video conferencing
There are also some disadvantages' for using video conference in business or a company which first of all is the price of setting up the facilities of video conferencing. Some business owner think that can save money be video conferencing. However, that same money you save may have to be used to purchase and maintain the video conferencing equipment. According to Officevideoconferencing.com (2005), setting up the equipment needed for a video conference, and rigging the room with slide viewers, lights, microphones and video cameras is not an easy task. Not only that, buying the equipment and software, hiring a professional to install it and then employing a computer technician for any problems that arise or maintenance are costs that need to be considered.
The next disadvantage is audio and video quality with large groups. The Audio Clarity sometimes may be very difficult to hear the presenter if they don't have a microphone or they aren't near the microphone or camera provided. In addition, it would need good quality speakers to hear a class of a big size. Besides, Video Clarity also plays an important role for video conferencing. Video Conferencing uses more bandwidth than audio conferencing; therefore there are chances of video being less quality than audio. If the company don't have decent audio equipment it may be difficult to hear certain people in questions and answer sessions in a group discussion. The reason is because the further away someone is from the microphone the harder it may be to hear them. This also points out why it is also important to have good speakers and microphones. Not only that, In a meeting,Â hearingÂ of what's being said is more important thanÂ seeingÂ what's being said and not being able to understand the message that been convey.
Video conferencing brings a lot of impact to the company because of the trend that technology are growing and so to many companies utilize the technology in order to help their business growth. Besides, video conferencing can increase the efficiency of work because it helps to save time and cost for the company.
In task 1 is discussing about the six organization structures and seven cultures of Deloitte. In each of it is discuss about the relationship between organization structure and culture in Deloitte. This is an important firm because organization structure and culture will influence Deloitte management.
The task 2 is discussing the effective leaderships must develop trusting relationships with those whom they seek to lead. Besides that, it also leads to employee how to perform effective.
In task 3 is discussing the theory X and Y is the theory of motivation which separate by two to explain. Motivational theories which are used in organization to match the right form of motivation to stimulate the right response in boosting performance.
Task 4 is discussing about the impact of technology on Deloitte's team functioning. Video conferencing can support for environmental initiatives. It is because video conferencing is an obvious "green" technology, allowing organizations to reduce energy use by dramatically reducing the need to travel.