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Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers. The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide.
Tata Communications' depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka PLC), and Nepal (United Telecom Limited).
ODEL Limited was established in the year 1990 and is one of the most innovative and leading fashion retailers in Sri Lanka. ODEL Limited is primarily involved in the sale of readymade Garments, Home-ware and other accessories. With 12 outlets situated in the heart of Colombo as well as other major urban cities such as Ja-Ela, Maharagama and Panadura, ODEL has had a successful 20 year journey with a gross profit of Rs. 842.22 million as at the financial year end 31 March 2010. The Company functioned as a Private Company until it was transformed in to a public company on 24th February 2010. As at 31 March 2010 there were seven shareholders who owned the entire stated share capital of the company.
ODEL's board of directors include one Executive Director, Ms. Otara Gunewardene who is also the CEO of the company, one non-executive director, Mr. Ruchi Gunewardene, and three non-executive independent directors, Mr. Paul Topping, Mr. Sanjay Kulatunga and Mr. Eardley Perera.
Task One - Organisational Structure and Culture
1.1 Discussion on the types of organisations and associated structures
An organisation is a combination of persons who have come together in order to achieve a common goal. Organisations can be public sector organisations, private sector organisations or volunteer sector organisations. In most instances private and public organisations will have a commercial goal of profit maximisation by selling a product or providing a service. An organisation will not be able to achieve a common goal if they are not organised properly. Therefore, a proper structure is needed to divide the work among the different members of the organisation, and co-ordinate their activities so that they are directed towards achieving the goals and objectives of the organisation.
An organisational structure will define the tasks and responsibilities of all members, their work roles and relationships, and channels of communication that would facilitate reporting and controlling of all activities undertaken by the organisation. The need for a formal structure is more important for a large organisation than a small one because of the volume of activities and the number of resources involved.
There are three main types of formal organisation structures.
Functional structures - this is where employees and the resources that are engaged in doing one type of activity are grouped together. Therefore, there will be different departments in an organisation grouped together based on the function they perform. For example, a company might have an account department, a marketing department, a manufacturing department and a human resources department.
Divisional structures - Divisional structures can be based upon the different products/ services offered by an organisation, or on the different market types it sells to, or the different geographic locations of its branches.
Matrix structures - this is where the organisational structure will be a combination of both functional and divisional structures. The matrix structure is most suitable for company's that are involved in projects where employees from different functions or departments will be involved in one single project. They will be reporting to their departmental heads as well as to the project manager.
Apart from the above categorisation, the structure of organisations can also be divided as Centralised Structure and Decentralised Structure. In a centralised organisational structure, all major responsibilities will be handled by a few key individuals at head office while in a decentralised organisational structure the various responsibilities and decision-making powers will be spread across various levels, divisions or branches of the company.
1.1.1 ODEL's Structure
The organisational structure of ODEL can be identified as a functional organisational structure. The main functions of ODEL have been identified and divided in to separate departments which specialise in one particular function of the organisation. This is one of the key characteristics of a functional organisation. The major functions of ODEL can be categorised as Sales and Marketing, Procurement, Manufacture and Design, Research and Development, Accounting, IT and Human Resources management. Each department has been given separate objectives which are in line with the overall objective of the company. For example, the procurement department has to purchase the raw material as well as finished goods at the most competitive price without compromising the quality. This will in turn help achieve the overall objective of the organisation of profit maximisation while ensuring the highest quality of products offered to customers. Budgets are also set for each department and promotions will be tied to the achievement of these budgets. The overall responsibility of the department will be with the departmental head that will in turn reporting to the CEO of the company.
The following benefits can be associated with ODEL having a functional organisational structure.
Economies of scale with efficient use of resources
Training would be made easier and more job-related
Can assign the right expertise for the job
High level of motivation because of intense job satisfaction of employees doing what they want to do and clear career paths within the departments
Some of the disadvantages of a functional organisational structure are:
Poor communication and coordination between functions
The CEO has to get involved in all decisions and therefore the decision-making process will be slow.
A loss of clear responsibility for product delivery
Loss of overall organisation perspective by overspecialised people who may also demand higher salaries
This type of organisational structure is a centralised structure where the responsibility of the majority of decisions will be with the department heads and the CEO of the company.
1.1.2 TATA's Structure
The structure of TATA Communications can be identified as a divisional structure that is geographically based. The main parent company, TATA Global Network is based in India and is a multinational company. The subsidiary, TATA communication is a separate division which has its own CEO, Board of Management and different departments. The subsidiary in Sri Lanka, TATA Communications has its own set of goals and objectives to achieve. The parent company will retain overall control of the company although all other major decisions will be taken by the CEO of the company. TATA communications Lanka is a small company with less than 10 people employed in it. This is mainly due to the nature of the service it provides which is telecommunication.
One of the main factors that distinguish TATA Communications as a divisional, geographic-based structure is that it is being run as a separate profit centre. TATA Communications can be said to have a decentralised system where certain important decisions will be made by the local CEO.
The divisional type organisational structure will bring about the following benefits to TATA Communication Lanka Limited.
TATA has a greater flexibility of facing changes in the local environment and can adapt accordingly
Unlike ODEL it will have improved coordination among its different functions
Since it is profit oriented, there will be goal congruence in achieving an overall objective
Costs can be controlled better
Some of the drawbacks of a divisional structure are:
Will reduce economies of scale, disperse technical competence and expertise
Create unhealthy rivalry among different subsidiaries within the TATA group
Increase costs due to duplication of resources
As stated under the above discussion, ODEL is a centralised system whereas TATA is a decentralised system. The benefits obtained by ODEL by operating a centralised structure are being evaluated against the benefits obtained by TATA via a decentralised systems structure. The analysis identifies the following points.
Control - Senior managers in ODEL enjoy greater control over the organisation while the senior managers in TATA have time to concentrate on the most important decisions as minor decisions will be taken by regional managers.
Procedures - The use of standardised procedures in ODEL will results in cost savings. In TATA, Decision making is a form of empowerment. Empowerment can increase motivation and therefore mean that staff output increases.
Decision-making - At ODEL, decision benefit the entire organisation rather than a separate department. The managers in TATA Lanka will have a greater understanding of the environment they work in and the people (customers and colleagues) that they interact with. This knowledge skills and experience will enable them to make more effective decisions than senior managers in India.
In conclusion, it can be stated that as many scholars believe there is no one appropriate organisational structure. Each organisation has its own distinct strengths, limitations and applications. A particular organizational structure may be appropriate for certain tasks in certain conditions at certain times, thus the challenge for the management is to test and develop the structure that best suits their tasks, context and environment.
1.1.3 Internal and External Network Structures
Internal networks exist within an organisation between managers and subordinates. Internal networks are mostly formal but there can be informal networks that connect the workers socially. Communication within these internal networks will be through lotus notes, intranet, telephone, memos, notice board and meetings.
An organisation will also have several external networks connecting the company with customers, suppliers, other organisations, industry regulators, competitors and bankers. Communication in external networks will take place through e-mail, telephone, financial statements and annual general meetings with stakeholders.
The internal network structure in ODEL is more developed than in TATA because of the structure of the organisation. TATA has only one office with less than 20 employees while ODEL has a wider structure with over 12 outlets. The external network structure of both companies will be equally strong because interaction with the industry and environment is vital to both companies.
1.2 Discussion on the roles and classification of organisational culture
Simply put, organisational culture is the personality of the organisation. It comprises of the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organisation. Corporate culture is the total sum of the values, customs, traditions, and meanings that make a company unique. Corporate culture is often called "the character of an organization", since it embodies the vision of the company's founders. The values of a corporate culture influence the ethical standards within a corporation, as well as managerial behavior.
The relationship between organisational culture and organisational structure is intertwined. The type of organisation structure will depend heavily on the culture that exists within an organisation. By linking organisation structure to organisational culture the following types of organisational cultures can be identified.
Power Culture - This is where power is concentrated within a small group of individuals in an organisation. Power and influence spread out from a central figure or a group. Power Cultures have few rules and little bureaucracy; swift decisions can ensue. ODEL's culture can be identified as a power culture where the activities of the organisation are controlled by a group of five directors.
Role Culture - This is where people have clearly delegated authorities within a highly defined structure. Typically, these organisations form hierarchical bureaucracies. In this sort of a culture there is little room for one person to exert full power over the entire organisation. A role culture in an organisation will involve procedures, role descriptions and authority definitions. TATA's culture can be said to be a role culture where all positions and responsibilities are defined by the head office in India. The policies and the procedures of the company are decided by the top management.
Task Culture - This is where teams are formed to solve particular problems. Power derives from expertise as long as a team requires expertise. These cultures often feature the multiple reporting lines of a matrix structure. It is all a small team approach, who are highly skilled and specialist in their own markets of experience.
Person Culture - This exists where all individuals believe themselves superior to the organisation. Survival can become difficult for such organizations, since the concept of an organization suggests that a group of like-minded individuals pursue the organizational goals. Some professional partnerships can operate as person cultures, because each partner brings a particular expertise and clientele to the firm.
Norms can be defined as attitudes and behaviours common to members of a particular group or society. Nearly everything in human society is governed by norms of some kind. The way we speak, the way we behave and the way we do things in general are all decided by the norms of our culture. This is also applicable not only to society but also in organisations. Part of the learning process is not only to learn how to do the job but also to understand the unwritten rules, i.e. the norms of the organisation.
Values of an organisation define what is important to the company. The company's values will be communicated to all employees in order to unite the entire organisation in to a common way of thinking. These are termed espoused values of the company. Values-in-action are the values that the company practices on a daily basis. The management has to be careful to make sure that its espoused values match the values-in-action in order to avoid being termed as a 'hypocrite'.
1.2.1 Human Resource Function in an Organisation
The human resources function is comprises of hiring and developing employees so that they become more valuable to the organisation. It includes (1) conducting job analyses, (2) planning personnel needs, and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all employees at all levels. The human resource function can be viewed differently from the perspective of each different stakeholder group.
Shareholders - shareholders of the company consider employees as assets of the company and will expect the management to utilise this resource in achieving their targets of maximized profits.
Employees - Employees of the company will expect the human resource department to help achieve their personal goals.
Customers - customers will only care about the services and products they receive and will expect the employees to be properly trained in serving them.
Personal policies are the guidelines laid down by the management to deal with the human resources of the company. Policies of companies will vary from company to company because the policies developed by one organisation will depend on the nature and needs of that organisation. Personnel policies can be listed according to the functions performed by the human resource department.
Work Schedule - Work day hours, Lunch periods, Holidays, Vacation, Sick Time, Personal Leave and Leave of Absence.
Hiring Procedures - Interviewing job candidates, checking references and offering employment.
Compensation - Paydays, Overtime and compensation time, Classifying employees as exempt or non-exempt, Salary ranges, Positioning pay within a salary range, Maintaining competitive salary information, Reclassifying positions, Salary review policy, Promotional increases, Withholding salary increase due to performance, Withholding salary increase due to leave of absence.
Payroll Information & Timekeeping Procedures - Payroll information/ General, Payroll information/ direct deposit procedures, Payroll information/required and voluntary payroll deductions, Timekeeping/ general discussion of non-exempt and exempt employee classifications and Supervisor's signature.
Benefits - Eligibility and general information, Types of available benefits, Medical insurance, Dental insurance, Disability insurance, Supervisory communication, Life insurance, Confidentiality note, Retirement plan, Social security and Employee advisory resource.
Workers' Compensation Information and Procedures - When there is an injury or accident on the job, What is covered under Workers' Compensation, Type of injury covered by Worker's Compensation Insurance, Medical expenses resulting from a work-related injury and resources available.
Performance Assessment Procedures - Performance assessment cycle, Performance assessment process, dealing with performance issues, Discipline: when the positive approach does not work, Separation from employment checklist, Communications by the supervisor regarding personnel issues, COBRA (Consolidated Budget Reconciliation Act) and Leave-taking procedures.
1.2.2 Flexible working programs
Flexible working programs are used by the human resources department as a recruitment tactic. Some of the most popular flexible work arrangements are;
Flex Time: Employees are offered a range of starting and ending times for the workday; most shifts with a mandatory "core" time in the middle of the day.
Compressed work weeks: Employees work 40 hours in fewer than five days. A 10-hour, four-day week is commonly used, or another alternative such as working nine days out of ten in a two-week schedule.
Telecommuting: Employees work from home or another remote location on an approved schedule.
Part-time Work or Job Sharing: Employees work fewer hours, or two employees share the same position, splitting the responsibility for the work between them.
Advantages of flexible working programs for both employer and employee
Improved job satisfaction, morale, and productivity.
Enhanced employee recruitment and retention.
Increased energy and creativity.
Reduced stress and burn out.
Improved balance of work and family life.
1.3 Diagnosing behavioural problems in organisations
An organisation will have different people working in it. Every human being is not the same and therefore every employee will also differ from one another. Theses difference are due to their family background, educational qualifications, work experiences, income levels, skills they have, their personality, ability and attitudes towards different situations. Therefore, with such a diverse workforce any organisation is bound to face several behavioural problems. The company has to know how to handle these different persons because each one is important and has an assigned and specific role to play in the company. Therefore, the organisation will have to know the best way to deal with the employees. Each employee will require a different method and the company has to come up with a good strategy to deal with the various persons the company employee.
In order to deal with a diverse human resource base, especially found in large organisations, the company needs to adopt certain concepts, principles, methodology, and work-related procedures to guide the employees in doing what the management wants them to do. Concepts define the rationale for doing something. If the employees are made to understand the logic behind doing a certain activity there will be less room for conflicts and misunderstanding. Principles are the ways a thing should be dome and will help to guide employees in achieving the objective of carrying out that task. Methodology and work - related procedures is the standards, rules and procedures set by the company. These will usually be communicated to the employees at induction and also at various training programmes.
Each employee's perspectives, i.e., the way they look at something will also be different. Managers will have a different perspective on how to solve a problem while subordinates will also have their own individual way of looking at things and doing the activities assigned to them. Employee's perspective will differ according to their individual beliefs, attitudes and what's really important to them. Some employees may want a higher salary while some others would value recognition and self-image more. These diverse opinions and methods will cause several problems in the organisation. It is also important to note here that conflicts are not limited to subordinates alone but there can also be board-room conflicts between top level managers as well. The most important way to resolve a conflict is through communication and understanding. Communication will help clear away misunderstandings, guide the employees in the right direction and help achieve harmony in the organisation. A company that works together will be in a better position to achieve it targets and goals successfully.
Task Two - Examination of different approaches to management and theories of organisations
2.1 The Development of Management through Organisational Theories
Organisational theories can be classified under the two broad headings of Classical organisational theories and non-classical (modern) organisational theories.
2.1.1 Classical Organisational Theories
Classical organisation theories deal with the formal organisation and concepts to increase management efficiency. Fredrick Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organisation. They all contributed significantly to the development of classical organisation theory.
Scientific Management Approach (by Fredrick Winslow Taylor) - This is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. The approach to increased productivity is through mutual trust between management and the employees of the company. The four principles of scientific management are:
Â· Science, not rule-of-thumb - Work is carried out according to planned procedures and not randomly based on tradition or the best way known to the employee.
Â· Scientific selection of the worker - Employees are selected based on some analysis, and then trained, taught and developed.
Â· Management and labour cooperation rather than conflict - Management will work together with the employees according to the planned procedures that are in place.
Â· Scientific training of the worker - Workers are trained by experts, using scientific methods.
The work tends to be boring since it is routine and flows according to a pre-planned structure.
Gives the management a very high control of power over the employees. This can lead to exploitation of labour.
This theory does not identify the social aspects of working and ignores the higher needs of the employees.
The variance between each worker and his/her needs are ignored.
Ideas and suggestions of workers are not considered in decision-making.
2. Bureaucratic Approach (by Max Weber) - This considers the organisation as a part of broader society. The organisation is based on the principles of:
Structure in the organisation - positions should be arranged in a hierarchy, each with a particular, established amount of responsibility and authority.
Specialization - Tasks should be distinguished on a functional basis, and then separated according to specialisation, each having a separate chain of command.
Predictability and stability - The organisation should operate according to a system of procedures consisting of formal rules and regulations.
Rationality - Recruitment and selection of personnel should be impartial.
Democracy - Responsibility and authority should be recognised by designations and not by persons.
Overspecialisation will narrow the management view point and they will not look at the larger picture when making decisions.
Rigid procedures will slow down decision-making and delay organisation's response to change.
Lack of critical thinking will not help the organisation to correct mistakes and move forward.
Does not enhance the skills of the employees.
3. Administrative Theory (by Henry Fayol) - In this theory, all activities that occur in an organisation is divided in to six main groups which are, technical, commercial, financial, security, accounting and managerial. These are interdependent and it is the role of the management to ensure that they work smoothly together. The 14 principles of management identified by Fayol are: Division of labour, Authority and responsibility, Unity of Command, Line of Authority, Centralization, Unity of Direction, Equity, Order, Initiative, Discipline, Remuneration of Personnel, Stability of Tenure of Personnel, Subordination of Individual Interests to the Common Interest, Esprit de Corps.
2.1.2 Non-classical/ Modern Organisational Theories
Modern organisational theories recognize the importance of group behaviour and human relations in determining productivity rather than mere changes in working conditions as suggested by the classical organisational theories described above. It is believed that productivity increases were achieved as a result of high morale which was influenced by the amount of individual, personal and intimate attention workers received.
The classical organisational theories stresses on a formal organisational which is mechanistic and ignores major aspects of human nature. In contrast, the modern organisational theories talks about informal organisations and emphasizes on the:
Work group, and
The three main modern organisational theories are:
The System Approach,
Socio-technical theory, and
The contingency or situational Approach
The System Approach is where organisations are viewed as a system made up of connected sub-systems. These sub-systems can have their own sub-sub systems. A system can be components, functions or processes of an organisation.
A system approach focuses specialisation by dividing components of an organisation in to sub and sub-sub systems. By grouping similar activities according to function will reduce complexities. Under this approach organisations are categorised in to three basic elements, components, linking processes, goals of the organisation.
Under the Socio-technical Approach an organisation is identified as consisting of people, technical systems and the environment. People (the social system) use tools, techniques and knowledge (the technical system) to produce goods or services valued by consumers or users (who are part of the organization's external environment). Therefore, balance among the social system, the technical system and the environment is necessary to make the organisation more effective.
The Situational/ Contingency Approach is based on the belief that there cannot be universal guidelines which are suitable for all situations. Organisational systems are inter-related with the environment. The contingency approach suggests that different environments require different organisational relationships for optimum effectiveness, taking into consideration various social, legal, political, technical and economic factors.
Taking in to consideration the evolution of management theories through time, it can be concluded that there is no one right theory that would apply to all organisations. While the classical organisational theories focused on work, the non-classical/ modern organisational theories focus on the workers. This is more evident in the bureaucratic management approach where employees are not counted as persons or individuals but as designations that have been classified in to clear cut roles in the structure of a company.
The scientific theory is more suitable for manufacturing factories with mass production while the bureaucratic approach is more appropriate for government organisations, armed forces, hospitals, sports clubs and NGOs.
Scientific management theory revolves around planning the work of employees in a logical manner to achieve efficiency and productivity. Planning to a certain degree will certainly help an organisation but will not ensure efficiency and productivity in the current business world which is changing all the time. A situational approach might be best suited but modified to include an element of planning.
Furthermore, it is also important that there are clear cut roles and responsibilities in an organisation as suggested by the bureaucratic approach. This will help in delegating work, especially if the structure of an organisation is wide and geographically spread. While it is important to allocate responsibility and authority based on delegations, a worker's commitment towards achieving the goals of the company should not be ignored. Therefore, an organisation must strike the right balance between workers and the work to be done in order to improve productivity and collectively achieve organisational goals.
2.1.3 Functions of Management
There are five basic functions of management that focuses on the relationships between personnel and the management of a company.
Planning - this is deciding in advance what to do, how to do it, when to do it, and who should do it. Planning helps to identify where the company is now and where it wants to be in the future. The planning function involves establishing goals and arranging them in a logical order. Planning can be both short-term and long-term.
Organising - this involves identifying activities that need to be performed, categorizing them in to departments or divisions, and specifying the relationships between each department or division.
Commanding - is leading people towards achieving the goals of the company. Lack of clear direction will lead to inefficiencies and waste of valuable resources. One of the main skills that a manager should have is to maintain a balance between employee needs and achieving organisational goals.
Coordinating - involves the efficient allocation of resources and providing effective support systems towards achieving organisational goals. The management has to ensure that all resources work together and there are no conflicts and duplication of work that would waste scarce resources of the company.
Controlling - is checking whether all activities are carried out according to plan. Variances between the actual and planned are analysed and reasons for such identified. This ensures high-quality performance and satisfactory results while maintaining a problem-free environment.
For example, one of the goals of a retail clothing store such as ODEL might be to open three outlets within the next financial year. The management will plan on how to finance this idea, where to locate the outlets, and the time frame of when the outlets will be operational. Once this is planned, the management will organise the activities that need to be performed. The funding would be given in charge of the finance department while the sales and marketing department will be given the responsibility of finding suitable locations. The HR department will look for the right people to staff these outlets. Once all activities are organised the management will have to direct all these activities towards achieving the set target. During the execution of the project, the management will control the activities by varying out variance analysis and audit to endure that everything is done according to plan.
2.2 Managerial Roles in an Organisation
As explained under section 2.1.3 above, managers have a variety of functions to perform and therefore will need to take on multiple roles (organised sets of bahaviour) in the organisation. According to Henry Mintzberg there are ten common roles which any manager assumes in an organisation. These ten roles are divided under three categories namely, Interpersonal, Informational and Decisional.
Interpersonal - the interpersonal roles of a manager is primarily concerned with interpersonal relationship. Under this category, a manager will perform the following three roles.
Figurehead - the manager represents the organisation in all formal situations, legally and socially.
Leader - the manger will create a good working environment to motivate and develop subordinates.
Liason - the manager will develop and maintain good relationships with external parties such as customers, suppliers and banks.
Informational - by fostering direct relationships the manager will be able to gather relevant information. There are three roles that deal with the informational aspect of managerial work.
Monitor - the manager will gather internal and external information relevant to the organisation.
Disseminator - the manger will pass on information to subordinates and superiors.
Spokesperson - the manager will communicate the performance and policies of the company to the outside world.
Decisional - access to information will place the manager in a decision-making role in the organisation. There are four decisional roles.
Entrepreneur - the manager will design and initiate change in the organisation.
Disturbance Handler - the manger will deal with the threats to the organisation.
Resources Allocator - the manager will control and authorise the use of organisational resources.
Negotiator - the manager will participate in negotiation activities with other organisations and individuals.
Managerial Roles in TATA
The managers in TATA Communications Lanka PLC will assume interpersonal roles when meeting with the telecommunications regulators, by creating a good work environment to all employees and maintain good relationships with other telecommunication companies such as Dialog and Mobitel and also financial institutions such as banks. The manager will also assume informational roles by gathering industry related information by attending forums and other industrial meetings. This information will then be passed on to the employees (e.g. changes in rates) as well as superiors (e.g. changes in policies). The managers will also act as the spokespersons of the company by communicating the performance of the company to the head office in India as well as to the other stakeholders of the company. The managers will then assume decisional roles in designing new or revising the old rate structures and policies according to the information received. The managers will also need to decide on the best methods to stay competitive in the industry by allocating the company resources to reduce costs and increase profits. The managers will also have to negotiate better rates with other telecommunication suppliers such as Dialog and Mobitel.
Managerial Roles in ODEL
The managers on ODEL will foster interpersonal relationships by attending all formal meetings such as fashion shows, meeting with clients as representatives of the company. They will also have to maintain proper relationships with all the workers in the outlets by creating a good working environment. Relationships with external parties will also be maintained by having regular meetings with suppliers and finding out customer preferences. Using these relationships the managers in ODEL will be able to gather valuable information such as trends and pass it on to the designers of clothes. The performance of each outlet will be communicated to the head office the consolidated data will be made available to external parties through financial statements. The information gathered will also help the managers to allocate staff to the busiest outlets and also negotiate better prices with suppliers according to the prevailing rates in the market.
Nature of Managerial Authority
This refers to the manager's ability to get the subordinates to do what he or she wants them to do. Managers can influence employees directly or indirectly. Employees are legally bound by their service contracts to do what the manager wants within the scope of their work contract. Managers can acquire power by gaining control over resources, collecting information and also controlling the information channels, and establishing favourable relationships both within and outside the organisation.
In the context of a manager, this is the formal or legitimate authority specified in the Articles of Association of a company that gives a manager to act on behalf of the company. There are different types of authority. Position authority is the manager's authority that is enforced by his/her designation. Coercive authority is where the manager's can motivate employees by punishment. Expert authority is earned by the manager's skill and expertise. Referent authority is the ability of the manager to influence through charisma, personality and charm. Reward authority refers to the ability of a manger to award something of value.
Managers are allocated various responsibilities and these can vary from position to position. Departmental heads will be responsible for supervising and managing the overall performance of staff in his department while the quality manager will be responsible in developing strategies to improve the quality of goods produced. Higher level managers will be responsible in achieving organisational goals, vision and objectives while the finance and accounting manager will be responsible in keeping costs under control and providing accurate financial information. The human resource manager will be responsible for selecting, training, career development, promotions and retaining the employees of the organisation.
Delegation is the passing of responsibility of one level of management to a lower level. it takes more time to explain what to do, subordinates lack the knowledge, skills and experience necessary, lack of trust in subordinates and the potential consequence of mistakes being made, subordinates do not want additional responsibility, and sometimes managers are scared to delegate because they are afraid to lose their job of their subordinates performs better than them. When a manager delegates responsibility to another, he still is accountable to another senior manager regarding the delegated matter.
Conflicts can arise due to differences in opinion, culture, tradition, family and social background, education level, etc. managers should intervene immediately to solve conflict in the company because even a small conflict between two employees can have damaging consequences on a company. Therefore, managers should apply all possible methods to resolve a conflict. This can be by talking to the parties concerned, communicating the right information to employees and obtaining feedback from them. Communication both breeds and resolves communication and therefore should be closely monitored by the managers.
The organisational structure or the internal working frame of any organisation will be different and be made suitable for the purpose of that organisation. Organisations can follow a functional structure, a divisional structure or a matrix structure depending on what its goals and objectives are and how they wish to achieve them. Likewise the organisational culture which explains the unique way in which things are done is determined mainly by the structure of the organisation. Culture is made up of norms and values. Most of the companies have publicized their values in their financial statements to show the stakeholders what's important to them.
Depending on the different cultures that exist in an organisation, the method of solving problems will also differ. Human capital is the most important resource available to any company and therefore every possible method is taken to ensure that the human resource function is smoothly operated in the organisation. This is done by establishing a Human resources department, formulating and implementing personnel strategies which should be in line with the personal goals of the employee as well as the company.
Management theories have evolved during time employees who were once looked at mere assets that could be controlled to get maximum usage for the company to human beings who have their own set of goals that they wish to achieve during their lifetime. The role of the manger has also evolved with the management theories.