The Organization Culture Of Deloitte Management Essay

Organization consist the two types such as the profit organization and non-profit organization. A profit organization looking for the generate income and the profit share with the employees. In a profit organization, the company decides to keep and arrange the profit to the lender or keep invest in their own business. For an example, the Deloitte’s Northern Group made a £2,329m for the year end of May. The group made a £569m profit share to the partners and the average profit earned by each partner increased from £758,000 to£789,000.

A non-profit organization generally founded to serve a humanitarian. It channels the entire employee’s income into programs and service aimed at meeting or towards other issues such as deforestation and endangered species. Non-profit organization rely almost entirely on donation and grants from individuals, government entities and organization. For an example, Deloitte launched a Women’s Initiative (WIN) in 1993. The WIN hosts more than 400 developments, networking and mentoring activities to help connections, strengthen skills and positively impact our organization and community.

2.1 The Types of Structure

A recent article (Miranda Brookins) states that elements of organizational structure give companies effective and efficient ways to run their business, manage their employees and ensure that tasks are completed. Each element has its own benefit to impact the employee to achieve the organization’s goals. The type of the organization structure involves the decisions about the work specialization, departmentalization, chain of command, span of control, centralization and decentralization and formalization.

Work specialization

It shows the degree to which tasks in the organization are divided into separate jobs with each step completed by a different person. It takes each task and assigns them to specific position. From a wider perspective, a job is synonymous with the physical and social aspects of the work environment. In contrary, the overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism and higher turnover. For example, an employee specializes in auditing skill but Deloitte should manage the employee to the audit department to exert his/her professional skill to the company.

Departmentalization

It based on the jobs are perform in the group together. Even though, Deloitte also has its own specific way of classifying and grouping work activities. The departmentalization creates the types of the execution based on the work of the employee assign their own product or brand with the geographical of customer demand. Departmentalization grouping jobs by the functions performed, product line, the basis of territory, the basis of product and the type of customer and needs.

Chain of Command

It shows the continuous line of authority that extends from upper levels of an organization to the lowest level of the organization and clarifies who reports to whom. There are three importance concepts to attach with theory such as authority, responsibility and unity of command. The authority shows the rights inherent in a managerial position to tell people what to do and to expect them to do it. Then the responsibility shows the obligation and expectation of the leaded to perform for the organization. The last, unity of command is the concept that a person should have one boss and should report only that person. For an example, the video conference of Deloitte should be the chairman from the head office to take over to all branches.

Span of control

It determines the number of employees who can effectively and efficiently supervised by a manager. It needs the number of managers an organization needs which based on the number of employees and departments a company has.

Centralization and Decentralization

Centralization shows the degree to which decision making is concentrated at upper levels in the organization. Organization in which top managers make all the decision and lower-level employees simply carry out the order. Besides that, decentralization shows the organization in which decision making is pushed down to the managers who are closest to the action. An article (Osmond Vitez) said that centralization develop the company’s mission and vision, and set objectives for managers and employees to follow when achieving these goals. Decentralization organization utilizes individuals with a variety of expertise and knowledge for running various business operations.

Formalization

It shows the jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures. A highly formalized jobs offer little over what is to be done and the low formalization means fewer constraint on how employees do their work. For example, the IT department of Deloitte format up the time of the connection to each branch and the performance of the video conference. So that, the interviewer won’t waste the time to wait for the connection and can arrange the accurate time to arrive the room.

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2.2 Organization Culture

Organization culture is a system of shared meaning and common beliefs held by organizational member that determines in a large degree and how they act towards each other. The implication of culture is a perception, shared and descriptive. The values, symbols, rituals, myths a practices are the way that the people do the things around here.

Innovation and Risk taking

According to Robert F. Brands (13, August 2012), an effective innovation leader should encourage creativity and risk taking, while also practicing a tolerance for failure. The setting and agreeing on the risk taking bandwidth help to practice the leader recognized as a learning experience when the process had failure. For an example, in 20th November 2012 a leader of Deloitte named Gartner evaluates on the ability to articulate logical statement about current and future market direction, innovation, customer needs and competitive forces. At the same time, consultants are rated on their understanding of how market forces can be exploited to create the opportunities to the provider.

Attention to details

It is a degree to which employees are expected to exhibit precision, analysis, and attention to detail. It defined the organization look more details to accurate the values of the organization comprise with the organization culture. For an example, the senior manager of Deloitte, Kurt Hauermann looks for the data risk management, data management technology and data governance as the dimensions that uniquely combine to deliver business value.

Outcome Orientation

It is a management focuses on the result rather than on processes used to achieve them. It extends into the workplace, and employees are reviewed regularly on a performance basis and the only thing that matter is the end of the result.

People orientation

People orientation takes into consideration the effect of outcome of people within the organization and it is also sensitive to individual with the decisions. The culture cares at the employee in the organization. For an example, Deloitte believes that the employees can do their best work when they growth and know the value. Besides that, Deloitte has 148,000 people work in 150 countries in the organization and the developing talent is a top priority because people are the very reason client service excellence is a hallmark of Deloitte.

Team Orientation

It defined the works organized around teams rather than individual. A recent article (Donna Eigen) shows that there are number of tactics that can foster a team orientation, from team building and diversity workshops to retreats, merit system that identify and recognize team-oriented behavior and processes that facilitate project teams.

Aggressiveness

It determined that the employees are expected to be competitive rather than easy going. It looks for the immediate results and lead to immediate reward. In June 2012, Deloitte discuss about the objectives of transparency and financial stability is often seen as being juxta-positioned. The impact on the public policy objective debate and highlighted the question of the interaction in the financial of Deloitte.

Stability

It means that the organization activities emphasize maintaining the status quo rather than change. In New York, 16 March 2012, Deloitte welcomes the Financial Stability Board’s call to improve the dialogue between external auditors and prudential supervisors and regulators of financial institutions in the wake of the recent global financial crisis.

2.2.1 Relationship between organizational structure and culture

The organizational culture develops around the structure and the organizational culture can change when the management changes the worker to assign to the roles in the same structure. According to Shane Thornton (April 18, 2012), an organization’s culture is an informal, collectively held grouping of ideas and values, as well as the type of workplace relationships and ways of doing things within the organization. Organizational structure is the way to arrange the management and the lines of the authority. It determines the performance within the company and helps the organizational culture run with the efficiency and consistency to create its own organizational culture.

Conclusion

At the end in this task, it defined the profit organization and non-profit organization of Deloitte. Besides that, it shows the specialization, departmentalization, chains of command, spans of control, centralization, decentralization and formalization of Deloitte. After that, it shows the organization culture such as attention to details, team orientation, people orientation, outcome orientation, aggressiveness and stability of Deloitte. Finally I show the relationship between the organization structure and culture.

Introduction

It defines the functions of the management within the Deloitte. And list the approaches of the leadership of Deilotte.

3.0 Management

Management involves coordinating and overseeing the work activities of other so that their activities are completed efficiently and effectively. It performs the manager’s function within the Planning, Organizing, Leading and Controlling.

Planning

Planning defined the goals, establishing strategies to achieve goals, developing plans to integrate and coordinate the activities within the company. It is close connected with the creativity and the innovation, it also set up the objectives and develops the appropriate course of action to achieve these objectives. For an example, Deloitte plans to get a new video conferencing system to get close and communicate easily with all foreign branches to get the high decision making.

Organizing

It is arranging and structure work to accomplish the organizational goals. It shows that how the leader organize the team to achieve the goals according to the plans. Besides that, Deloitte organized the Nortel Network Ltd to apply the video conferencing system and the Nortel Network Ltd will carry on all the setting and performing of the video conferencing system.

Leading

It defined the working through people to accomplish goals. It means how the leader uses their skill to lead the group to achieve the goals and the successful. Leading requires to coach, assists, and problem solve with employees. Then, the Deloitte decided who will attend the video conferencing to get the decision making.

Controlling

It is a continuously work to monitoring, comparing, and correcting work to check the result against goals and make sure that it is following the plan. After that, Deloitte will use the video conferencing to control the branches performances and has a close contact with the branches.

3.1 Leadership

Leadership is the art to motivate the group to against the goals. A recent article (Susan Ward) states that effective leadership is based upon ideas, but won’t happen unless those ideas can be communicate to others in a way that engages them. Different managers can employ the different strategies to lead the employees to against the goals. According to David Ingram, transformational and transactional leadership are polar opposites when it comes to the underlying theories of management and motivation.

Transformational Leadership

It determined the management of the day-to-day operation and crafts strategies to the next level of performance and success. It will provide the opportunities for personal and professional growth for each employee if the transformational leader sets goals and incentives to push their subordinates to the higher performance levels. For example, in 1June 2011 Barry Salzberg is the global Chief Ececutive Officer of Deloitte Touche Tohmatsu (DTTL), he sets the strategies direction of the Deloitte global network and it comprises 47 member firms operation in 150 countries with approximately 200,000 people.

Transactional Leadership

It defined the normal flow of operations by more concerned with maintaining. The leader will use the rules to motivate employees to perform at their beast. It won’t care in strategically guiding an organization to a position and these ledgers are solely concerned with conform all the performance flow. For example, Steve Almond is the Chairman of Deloitte Touche Tohmatsu Limited’s (DTTL) Global Board of Directors. He had served as Managing Partner of International Markets at Deloitte LLP in the United Kingdom and he looks after Deloitte United Kingdom’s International relationship and activities.

Conclusion

At the end, it also shows the planning, organizing, leading and controlling based on the Deloitte and it determined the transformational leadership and the transactional leadership with Deloitte.

Introduction

It is going to discuss about how does Deloitte motivate and perform their employee to work for them. It defines the ideas that Deloitte provide to motivate to work hard to get the advantages.

4.0 Motivation and Performance

Motivation is the process that account for an individual’s intensity, direction and persistence of effort toward attaining the goals. An article (Kendra Cherry) states that motivation involves that the biological, emotional, social and cognitive forces that activate behavior. It describes the purpose that the person does something.

The article from Deloitte (Ivana Říhová, Finanční management, May 2009) states that the motivation and compensation are part of a series of articles focused on performance management where Deloitte experts introduce individual components of the integrated performance management system in companies. This article deals with motivation and compensation. According to the official website of Deloitte within the Human Capital, it states that they using the motivation tools available to a financial and non-financial and it also determined that if the employees do not feel close to the strategy’s value and direction and motivates to fulfill the company’s designed goals, the company is not likely to successfully reach its goals.

From the Deloitte’s official website, the financial rewards and financial compensation system are the motivation tools available to the employees of the Deloitte. A recent article (Carol Bainbridge), states that extrinsic motivation refers to motivation that comes from outside an individual and the motivating factors are external, or outside, rewards such as money or grades. Deloitte believes that the rewards system is the right driver to the employees perform the work commitment and employee’s performance. However, attention should be paid to non-financial incentive tool. It is more difficult to define these tools as an important role to motivate employees to perform. Broadly speaking, they can be included in the corporate culture. The reason is often the corporate culture which the employee expects in the company of their choice.

Figure 1. Relationship between the employee and the wage the employee received of the Deloitte

From figure 1, the employee’s quality is reflected in a certain component of the employee’s compensation. According to the performance management of Deloitte, they consider that the compensation aligned with success in fulfill the goals of the company and often also the goals of the team and the individual. So from the figure 1, Deloitte use the proportion of the individual components of the employee total based on the job and the job description. Besides that, Deloitte indicate the high position of the employee in the structure will get the high proportion.

Conclusion

At the end, Deloitte use the rewards and compensation to motivate the employee to work hard and show the benefit of the reward and compensation to drive the employee work hard.

Introduction

It is going to show what technology that Deloitte used to communicate to the foreign branches and its functioning.

5.0 The impact of Technology on Deloitte

A technology system can drive an organization to efficiency and effectiveness. The efficiency based on how we do the things right so the organization won’t waste the time to delay achieves their goals. Besides that, the effectiveness is defined to do the right things, it show that the organization know what they want to do.

The case study from the assignment, it shows that the video communication is the way that the Deloitte costs down through the video communication when they reach more employees and branches.

Video communication can help to cut down many costs such as traveling cast. According to the Yezdi Pavri (managing partner for Deloitte Canada’s Toronto office), he said that being able to meet clients and colleagues in real time without travel is an efficient, effective and environmentally considerate way to address their needs. In a high telepresence room, all the branches who in the different country appear very close and the experience can get with being there with face to face.

Nortel Network Ltd is a multinational telecommunication equipment manufacturer in Canada. Deloitte had chosen Nortel Networks Ltd to manage the service of the video conferencing. In a result, Nortel said that in a statement that a company that spends $23 million a year on travel can use telepresence and videoconferencing to recover 385,000 hours of lost productivity reduce its carbon footprint by up to 4,200 tons and save up to $7 million in U.S. dollars. So, the video conference can be more environmentally considerate and go to the green innovation.

In contrary, video conferencing also has its disadvantages be the barrels to communicate with each other. Deloitte has 600 offices in more than 150 countries so the time equation is the barrel that Deloitte communicate with the foreign branches. Sometimes, if unlucky have an emergency problem and the branches of England need to contract to the Singapore branches; it may be will fail to get a communication because the time between England and Singapore differ at least 8hours.

Besides that, installations of the technology in video conference need a high tech equipment to fix it. For Deloitte, if needs to install the equipment, Deloitte needs to pay for the head office and the all branches. Many feathers make a bed; Deloitte has more than 600 offices in the foreign countries. So Deloitte needs to pay for the payment within these more than 600 offices and it will become a huge expense.

Conclusion

Finally, it shows the Deloitte uses the video conferencing to communicate to the foreign branches. It also shows that the effectiveness and the efficiency of Deloitte. Besides that, it also consists the advantages and disadvantages of video conferencing.