Divisional Structure And Culture Management Essay

Organizational behaviour is a learning that examines the collision that individual, group and structures have on behaviour within business for the purpose of applying such information toward getting better an organization’s effectiveness.

An understanding of organizational behaviour is valuable for improving human behaviour in encouraging direction, on the one hand and the whole organization environment, on the other hand. It tries to support our understanding of the process of individual behaviour and the modifications that takes place in the objectives, roles, principles and interests of the association members during the course of their alliance with organizations.

Task 1: Understanding Organisational Structure and Culture

Structure in one way is the planning of duties used for the job to be done whereas culture is the intricate as a whole which includes information, belief, art, ethics, customs and any other potentials and habits obtained by members of a society.

Organisational structures and cultures

Organizations are established in distinct ways to accomplish particular goals, and the structure of a business can help or hold back its progress toward achievement of these goals. Following are some of the different types of organisational structures and cultures.

Functional Structure and Culture

Functional structure is established so that every part of the organization is grouped in accordance with its principle. In this type of business, there may be a marketing division, a sales division and a production division. One of the disadvantages to a functional structure is that the synchronization and communication between divisions can be restricted by the organizational limits of having the various divisions working independently. (Writing)

Divisional Structure and Culture

Divisional structure is normally used in big companies that function in a wide geographic region or that have distinct smaller groups within the umbrella group to include different varieties of products or market regions. The advantage of this structure is that the requirements can be met more quickly and more distinctively; however, communication is reserved because employees in different departments are not working mutually. (Writing)

Matrix Structure and Culture

Matrix structure is a mixture of divisional and functional structure. Usually used in big multinational organisations, the matrix structure permits for the benefits of efficient and departmental structures to be present in one organization. This can generate power struggles because most parts of the concern will have a dual management. (Writing)

Relationship between Organisational Structure and Culture

If we suppose that organizational structure is calculated by four dimensions (specialization, standardization, formalization, and centralization) and culture is also measured by four dimensions (individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity), associations between these dimensions will explain the relation between organizational structure and culture. (J.D, 1966)

Effect on Tesco’s activities

Structure

Tesco is a hierarchical structure because it has a large number of levels and also a lot of people are accountable to more than one person prior to that information dig up to the boss. A hierarchical structure has various levels. Each level is governed by one person. A hierarchical organisational structure means that the sequences of command looks like a pyramid, with a large foundation of workers, who are in straight line supervision by the smaller level on top of them, who are sequentially supervised by the level over them, continuing on to the apex ranking officer such as CEO Terry Leahy in Tesco’s Circumstance. This sort of structure allows the workers in Tesco to know precisely what they have to do so they don’t hang around until they are told. There is clear authority and responsibility within the organisation that makes sure that everybody knows what they are undertaking and know that there will be cost if the tasks are not finished on time. [1]

Culture

Tesco has a very welcoming and supporting approach in the regular ways that staff at Tesco performs towards each other, and towards those external the company that can construct the ways people do things. The control arrangements and measurements are continuously under the management check to monitor the competence of the staff and managers’ conclusions. Meetings and communication at each stage of the company’s hierarchy symbolize a strong internal atmosphere so all the activities of Tesco Ireland are always streamlined and properly controlled. [2]

Factors Affecting Individual Behaviour at Tesco

According to John Ivancevich and Michael Mattson, the main aspects that persuade individual differences in behavioural prototypes are demographic factors, aptitude and skills, insight, attitudes and character. They are as follows:

Demographic Factors

These are socio economic conditions, education, ethnic group, race, age, gender, etc. Tesco choose persons that belong to good socio-economic environment, well educated, youthful etc as they are supposed to be performing better than the others. People functioning in Irish Tesco belong to different backgrounds, so demographic factors will affect their individual behaviour. [3] 

 Abilities and Skills:

The physical ability of a person to do something can be expressed as ability. Skill can be described as the ability to act in a manner that allows a person to execute well. The individual behaviour and performance is very much prejudiced by ability and skills. As Tesco is a multi-skilled organisation, so individual behaviours are affected by skills the individuals possess. [3] 

Perception

The cognitive procedure meant for understanding the environmental stimuli in a meaningful manner is referred to as perception. Every person on the basis of his/her situation can organize and read environmental stimuli. There are many factors that persuade the perception of an individual. [3] 

Attitude

According to psychologists, attitude can be termed as a tendency to react favourably or unfavourably to particular objects, individuals or situations. The aspects such as family, society, traditions, peers and organisational factors manipulate the configuration of attitude. The employees can complete their tasks better in the organisation if they structure a positive attitude. [3] 

Task 2: Approaches for the management and the leadership

Different styles of leadership

Following are presented three different styles of leadership that General Electric, Microsoft and Nissan have.

The pacemaker leader expects and models excellence and auto direction. If this style is summarized in a single phrase, it would be “Do as I, now.” The pacemaker style of leadership functions well when the team already is motivated and qualified and the leader needs fast results. It is utilized extensively, nevertheless, this style can overwhelm to the members of the team and the innovation of silencing. Jack Welch began his career in general Electric in 1960, and in 1981 was named director of the company eighth delegated counsellor. While Jack Welch was known by his informal focus that permitted him to interact with the employees of all the levels of his organization, he was also an executive of the persistent and exacting nature. He is one of the example of a pacemaker leadership style. [5]

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Autocratic style of leadership functions well if the leader has competence and sufficient know-how to decide on all matters. It is considered one of the most efficient styles of leadership in the event that there be some emergency and fast decisions should be taken. If there is not time for the discussion on several options, then this type of leadership gives the better results. Authoritarian style of leadership examples of the can be found in the real world in people as Bill Gates and John F Kennedy. Bill Gates adopted the authoritarian style and directed Microsoft toward the incredible success. [4]

The democratic leader builds agreement through contribution. If this style were summed up in one expression, it would be “What do you think?” The democratic approach is most effective when the person in charge needs the team to buy into or have ownership of a choice, plan, or objective, or if he or she is uncertain and needs new ideas from competent teammates. Carlos Ghosn is an unbeaten business leader who engaged democratic leadership principles and is endorsed for the extraordinary turnaround of Nissan in 2000. [6]

Organisational Theory

Organization theory characterizes a young and multifaceted field of study related to the behaviour of associations and companies. Through specific methods like analysis, simplification and observation, organization theory experts try to determine how corporations and organizations will behave in particular circumstances. Organisational theory supports the management of Practice in Irish Tesco by stating that the people in Tesco belong to different backgrounds and areas, so their individual behaviours can be different, so there is a requirement of proper planning for team work and to adapting proper style of leadership here which I would suggest should be a democratic style.

Different Approaches to management

Following are four different approaches to management in different organisations

The empirical or case approach: In this approach, one tries to understand management principles with the help of cases. It also identifies the situations, wherein organizations have either succeeded or failed by following this approach. Its limitation is that situations are all different and this approach does not attempt to identify principles. There is also a limited value for developing management theory.

The interpersonal behaviour approach: This approach is based on individual psychology and focuses on interpersonal relationships. It ignores planning, organizing, and controlling. Critics also say that psychological training is not enough to become an effective manager.

The group behaviour approach: This approach is based on sociology and social psychology. It stresses on the behaviour of people in groups. This approach is often not integrated with management concepts, principles, theory and techniques and there will be a need for closer integration with organisation structure design, staffing, planning and controlling.

The cooperative social systems approach: It advocates a system of cooperation using both interpersonal and group behavioural aspects. One limitation of this approach is that it is too broad a field for the study of management and at the same time it overlooks many managerial concepts, principles, and techniques.

Task 3

Leadership styles and employee motivation

Transactional leaders achieve compliance from subordinates through an exchange of rewards for services. For example, transactional leaders will offer raises or promotions for higher work productivity. The weakness of this leadership style is that employees are not invested in their work and once rewards become unavailable, it is difficult to continue to motivate them. (Johnson, 2006)

Transformational leadership is the leader’s ability to motivate followers to rise above their own personal goals for the greater good of the organization. “Transformational leaders go beyond transactional leadership and are characterized as visionary, articulate, assured and able to engender confidence in others so as to motivate them to surpass their usual performance goals” (Schwarzwald, Koslowsky, & Agassi, 2001). The transformational leaders attempt to stimulate the undeveloped or dormant needs of their subordinates and hence their motivation level is enhanced and their performance is bettered.

As a manager I will use the transformational leadership style and thus will be able to apply different changing environments and at the same time keeping the level of motivation of employees at Tesco at a high level in order to keep the quality of work done.

Different motivational theories and their application

Personal Styles

In their theory on motivating different types of people, Merrill and Reid identify four personal styles:

Style

Major Drivers

Prefers to

Driver

Action Oriented: Focus is on present time frame, direct action. Minimum concern for caution in relationships. Tends to reject inaction.

Control, Tell

Expressive

Intuition Oriented: Focus is on involving others, future time frame. Minimum concern for routine. Tends to reject isolation.

Emote, Tell

Amiable

Relationship Oriented: Focus is on relating, supporting; present time frame. Minimum concern for affecting change. Tends to reject conflict.

Emote, Ask

Analytical

Thinking Oriented: Focus is on cautious action, “getting it right”, historical time frame, and cautious action. Minimum concern for relationships. Tends to reject being wrong.

Control, Ask

Application: To help people feel connected intrinsically with their work, structure their work so these personal style needs are met.

Style

More Effective

Less Effective

Driver

• Get things done quickly that are going to be effective, even if they aren’t perfected.

• Spending time in reflection and consideration, in an attempt to perfect.

Expressive

• Make work a party while you’re getting stuff done; breathe life into work. 

• Spend 3 hours in a room sequentially creating a step-by-step checklist.

Amiable

• Include effectively when a group tackles a project, and not just the “amiable” coworker; they’ll feels others’ “pain” if their input is excluded.

• Try to get results through intimidation and application of stress.

Analytical

• Give them space to get grounded – to get it “right” – before they proceed to action.

• Use conflict to try to get best results.

McClelland’s Theory of Motivation

Style

More Effective

Less Effective

Achievement

Seek: To excel; may avoid both low- and high-risks as a result, in order to pursue meaningful success.

Work alone or with other high achievers

Power

Seek: Either personal or institutional power. Either way they want to direct others, but the institutional power is in service to the institution’s success, so those with that focus tend to make better managers.

Direct others

Affiliation

Seek: Harmonious work relationships, to accept, to be accepted, and to include others. They can be more comfortable conforming to group norms.

Work in settings with significant personal interaction

Application: To help people connect intrinsically with their work, structure their work so their major need is met. What’s new here is the “Achievement” need. It can cut across all the Merrill and Reid personal motivation styles. The key here is to surround high achievers with other high achievers. To be their best, they need to know they’re on a team capable of pulling off a worthwhile, attainable mission.

Money as a De-Motivator

Frederick Herzberg was a clinical psychologist and pioneer of “job enrichment.” He proposed the Motivation-Hygiene Theory, also known as the two factor theory of job satisfaction. According to his theory, people are influenced by two sets of factors:

Motivator Factors

Hygiene Factors

• Work itself

• Responsibility

• Promotion

• Growth

• Achievement

• Recognition

• Pay and benefits

• Company policy and administration

• Relationships with co-workers

• Physical environment

• Supervision

• Status

• Job security

• Salary

Application: To create an environment where people motivate themselves, we must adequately take care of the hygiene factors. If we don’t, demotivated employees will likely result. The key here is that “adequate” is enough; we don’t need an outstanding physical environment because it won’t increase employee motivation noticeably. In sum, the “hygiene factors” have a downside if not done well, but not much of an upside potential impact on employees, even if they’re done very well.

Usefulness for Irish Tesco

By the use of different motivational theories, Irish Tesco provides opportunities for its managers and staff to take a share and a greater interest in their own employment. Since every employee is an individual, with different needs and aspirations, the process of reviews and personal development plans allows recognition of their abilities and achievement, as well as potential development. This benefits the individual by providing career progression. It also benefits Tesco by ensuring the business can deliver high levels of customer service through its skilled employees.

Task 4

Nature of Groups and Group behaviour

Group behaviour refers to the situations where people interact in large or small groups. The field of group dynamics deals with small groups that may reach consensus and act in a coordinated way. Groups of a large number of people in a given area may act simultaneously to achieve a goal that differs from what individuals would do acting alone. A large group is likely to show examples of group behaviour when people gathered in a given place and time act in a similar way-for example, joining a protest or march, participating in a fight or acting patriotically.

Factors Affecting effective teamwork

Teamwork in any organization is important and essential for it to succeed. For an organization to achieve its goals, it needs to run like a well-oiled machine composed of different parts working together. Different factors that affect effective teamwork include:

Good Communication

Shared Responsibility

Shared Motivation and Praise

Focusing on Goals

Compensation

Communication

Deal With Conflict [7]

Impact of Technology on Teamwork in Tesco

The use of new technologies can improve and in some cases hinder team functioning. As technology changes teams must update and maintain their knowledge in order to function effectively. Technologies which have improved team functions in Tesco include

e-mail

mobile phones

groupware

E-mail allows asynchronous communication which means team members in Tesco do not need to be in the same place at the same time in order to communicate effectively. E-mail also has its negative aspects in terms of managing e-mail and the misuse of e-mail.

Mobile phones allow teams to communicate even when team members are out of the office, on the road or otherwise unavailable. Sometimes having always access to team members can hinder team functioning.

Groupware enables teams to plan meetings, collaborate, delegate all within a virtual environment which can often be accessed remotely from anywhere in the world.

Personal computers allow team members to carry out various tasks and communicate more effectively. Laptop computers allow you to do this anywhere. In Tesco Ireland, Personal Digital Assistants (PDA) now have much of the same functionality as their bigger cousins, but are smaller, more portable and have a longer battery life.

References

[1] http://www.studymode.com/essays/Organisation-Structure-Of-Tesco-s-1146123.html

[2] http://www.scribd.com/doc/56666365/Impact-of-Organizational-Culture-on-the-Performance-of-Tesco

[3] http://www.blurtit.com/q7433503.html

[4] http://www.buzzle.com/articles/leadership-styles-and-examples.html

[5] http://www.money-zine.com/Career-Development/Leadership-Skill/Pacesetting-Leadership/

[6] http://www.marsdd.com/articles/understanding-your-leadership-style/

[7] http://smallbusiness.chron.com/factors-affecting-effective-teamwork-965.html7