You are on page 1of 15

Introduction : The purpose of this report conducts a sample survey on Organizational Structure and Organizational Culture in an organization, as well

as the impact of leadership and management approaches on business performance. By researching some information of Company Agar(A) Ltd and Company Boss(B) Ltd, the report gives us an overview for the relationship and the importance of structure and culture, management theory and leadership style.

Task 1(a): Compare and contrast different organizational structures and culture. Use organizations you identified as examples for the different organizational structures and culture. Both Companies A and B have been trading in term of manufactures, however, there are absolutely differences between the type of products. Agar Ltd was founded by Anikur Rahman in 1997 with blouses and shirts as main products. Boss Ltd is a specialist in manufacturing Health, Fitness and Beauty products, was founded over 15 years by Rezaul Karim. Therefore, organizational structure and culture are not the same between them. Structure: Company A is a medium-sized company which has approximately 580 people at present time. Agar Ltd just focuses on specialist garment market, Shirts and blouses in a limited range of tradition style, less affected by market trends, therefore, it have remained Jacks company stable during his leading time. Based on the feature of work, the employees perform tasks by their ability; company needs its employees adept and efficient at making blouses and shirts, which should results in higher productivity and higher profit margin. According to this environment, functional structure is the best solution for Jack to organize his company. In case of company B, Because of trading in 3 types of different market, thus the main structure is multi-divisional structure. Boss Ltd is a large-sized company which has more than 1,000 employees. Following this structure, every division corresponds one product which is provided by the organization. Each division has its own set of functional departments such as Accounts, Production, Marketing, etc. Health, Fitness and Beauty products dynamic markets and require highly competitiveness among manufactures. For this reason, it requires flexibility to handle affairs in the organization. Culture: Company A, role of manager is outstanding, an autocratic approach have been developed to concentrate authority for manager. Departments have separate functions will support the director the easy way to control the company. However, powers are limited within the functions of each department and there is no co-ordination between individuals partial together. Subordinate isnt encouraged to give ideas for their jobs, they just do it such a

mission. Consequently, The Jacks company culture must be role culture. Company B, in my opinion, task culture is the main culture which Rezaul has deliberately tried to develop over the last few years. Managers of each division work closely together as a matter of routine. Employees also are encouraged get together to handle company-wide issues and they can share ideas with their boss. Teamwork is prominent point of working style in this company. With lots of project teams and task forces in operation, they provide dynamic to solve problem, make plan, develop new product etc.

Task 1(b): Explain how the relationship between an organizations structure and culture can impact on the performance of the business. You may recommend/propose realistic improvement measures for better performance of the business. The relationship between organizational culture and organizational structure is an important theme that is often overlooked in a firm. It can be difficult to clearly distinguish from one another, and even more so to clearly define within an institution. Organizational structure works within an organizational culture, but it is not completely separate. The two are very much intertwined. According to organizational structure and culture of company A, decentralized administration shows quite clear. Authority concentrates for Managing Director, therefore, leader plays the decisive role by quickly making final decision without passing the opinion of other members. In this case, manager can be compared with a father in Eastern who is a pillar of family. The role of individual is assessed at its true worth, employees have clearly delegated authorities within a defined structure. Each department is highly specialization. In the other hand, the organizational structure also limits the sphere of the functional managers. Department has expertise in its own field, but lacks broader awareness about the organizations objectives. Subordinate is passive for solving troubles arising in the work, cannot respond to fast changes in environment. They need directions form superior to perform next steps because of lacking power. No co-ordination means that information not be shared between departments. Thus staff doesnt clearly comprehend their companys activities. For getting the best goal of business performance in this case depends on two conditions: Small/Medium size or few products and Stable External Environment. Agar Ltd got those, thus the company can achieve the maximizing efficiency as much as possible. Employees working base on their forte. All the human knowledge, skills & infrastructure required for a functional activity are consolidated for performing tasks. Thus the company can achieve the maximizing efficiency as much as possible. However, the market environment in near future trends more dynamic, complex and hostile. Arthur considered these impacts and tried to replace his fathers method by a softer approach, manage in a way more flexible and takes

more notice from staff. These are good but need time for staff to adapt themselves to new circumstances. Following organizational structure and culture of company B, people can identify strengths of working style in Boss Ltd. Active co-operations between different divisions provide employees with opportunities for learning new skills beyond their own area of expertise. It is easier to understand the dynamics of a product; therefore, it is best suited for managers in Rezauls company. The Chief Accountant and other heads of department work closely together lead to better cohesion within the boundaries of the department. Information is easy communicated between divisions. Unstable environment also motivates staffs work harder to respond much quickly to changes in the environment. In addition, within the organization, there is no dominant or clear leader. Every business decision has to be voted through company council. Consequently, the role of individual is not prominence. The employees trend to take more responsibilities for their department rather than their company, they might know their own purpose but might not understand how they might relate to organizations objectives. Repeating too much departments which have the same functional specialist will waste resource for company. The effect of business performance in this case also depends on two conditions: Large Corporations and Competitive Environment. Boss Ltd got those, thus the company can also achieve the maximizing efficiency. It has a turnover of 38 Million pound per year. Thats the best evidence which shows business efficiency of company. In addition, consumer trends change over time so the company needs to prepare every environmental change. It will helps firms get into a better position to cope with unexpected developments. It allows firms to avoid the shock of complete surprise.

Task 1(c): Discuss the factors which influence individual behavior at work based on any of your selected organization. Individual behavior at work also plays an important role which is directly affect the efficiency of business activities. According to John Ivancevich and Michael Mattson, the major factors that influence individual differences in behavioral patterns are abilities and aptitude, perception, attitudes, personality, conflict and stress. Perception: There are many factors that influence the perception of an individual. Researching perception plays important role for the managers to create the favorable work environment for staffs. The employees trend to perform better if they are going to perceive it in a positive way. Attitude: The factors such as family, society, culture, peers and organizational factors influence the formation of attitude. The managers in an organization need to create the work environment in the best way that employees are tempted to form a positive attitude towards their respective jobs. The staffs can perform better in the organization if they form a positive attitude. Having Standard Times for job and extra money for shop-floor worker in company A are not good compared with employees are rewarded for their expertise and their contribution to company in B. It doesnt promote employees to work harder for the company. Personality: Personality is the unique and enduring traits, behaviors and emotional characteristics in an individual. Personality can either aid or hinder meeting work goals dependent on fit. The several factors that influence the personality of an individual are heredity, family, society, culture and situation. It implies that different personalities react in different ways in organizational environment. Organizations need to understand the behavior and personality of an individual to assign suitable work so that achieve the maximizing efficiency and productivity. Ability and aptitude: A person can perform well in the organization if his abilities and skills are suitable the job requirement. The managers plays role in matching the abilities and skills of the employees with the particular job requirement. In company A, the highly specialization in organizational structure have assembled employees who have same level of skill, knowledge, and well-informed about a particular sector together to take well-performance as much as possible. Other side, teamwork is strength in Boss Ltd. Members in group will support and supplement the pros and cons for each other to achieve better efficiency in handling affairs.

Conflict and stress: these are elements of the external environment directly affected the efficiency and quality of work. Stress comes from work pressure and conflict comes from the disagreement of members. Employees in company A have more stress but little conflict because the feature of their job is performance tasks by personal. In the other hand, employees in company B have more conflict but little stress. They work in team and conflicts may occur daily by the dissent of members in group.

Task 2(a): Compare the effectiveness of different leadership styles adopted in different organizations, using the organizations identified as examples. Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. There are four broad types of leadership in use which was found by the Ash ridge Studies: * Tells (autocratic) *Sells (persuasive) *Consults (Participative) *Joins (Democratic) In my own opinion, following the management theories above which have been applying two companies, Agar Ltd Company is using Tells (autocratic) style and Boss Ltd company is using Join (democratic). Two different styles of leadership is demonstrated through the following argument: SN Autocratic 1 SN Democratic Leader and follower make the decision together, however, the leader maintains the final decision making authority

Leader tells their employees what they 1 want done and how they want it accomplished, without getting the advice of their followers

Authoritys manager can be consolidated

Authoritys manager can be undermine

Leader understands exactly the task and what demands from the followers

Leader is not expected to know everything. This is why he employ knowledgeable and skillful employees

There are lack of contribution, initiative or feedback from employees because communication is just oneway

Employees are encouraged to give their idea for the jobs. Responsibilities will be shared

Quickly decision can be made when

Making decision might become a long

speed is required

process

Two leadership styles are different thought but they have the same objective which brings the best performance for the company. Company A, task is solved so quickly and correctly as required by the manager. In addition, the manager have to understand exactly what he want his subordinates done, unless wrong decision will make serious consequences. The authoritarian style should normally only be used on rare occasions. If autocratic style is abused indiscriminately, it will damage structure and culture of the company. Employees will be stress because they have to meet the need of manager immediately. Those are the reasons why Arthur would like to adopt a softer approach, take more notice idea of staff. Case of company B, task is solved by the best way of team-work. Employees are motivated because of receiving respect from their manager. Due to long process for discussion, task and project take amount of time to perform. Therefore, the role of manager is not prominence.

Task 2(b):

Explain how organizational theory underpins the practice of management. Organizational theory is the systematic study and careful application of knowledge about how people - as individuals and as groups - act within organizations. It has the same purpose which is solving problem, maximizing efficiency and productivity, and meeting the needs of stakeholders (according to Kathryn Barzilai). Agar Ltd Company, Anikur Rahman is a strong character, who runs his company in functional structure to maximize productivity and efficiency. By using Scientific Management theory, which was created by Frederick Taylor, Jack wants to emphasize Frederick Taylors 4 Principles of Scientific Management in his company: 1. Work methods based on a scientific study of the task carried out should be adopted. 2. Employees should be scientifically selected and trained by the management and not left to their own devices 3. Manager should train worker and audit the workers performance to ensure that the adopted scientific methods are being properly performed. 4. Work should be divided between managers and worker so that managers can apply the established scientific methods and processes of production, whereas the workers can perform the job according to the established procedures. Strength: For many years, Anikur has faithfully followed these principles. Its expressed by the way he wants to ensure that employees have clearly defined roles and job descriptions. He needs his employees adept and efficient at making blouses and shirts, which should results in higher productivity and higher profit margin. The only way to expand productivity was to raise the efficiency of workers. Scientific Management has been applied in company A to the management of workers greatly could improve productivity. These methods called for optimizing the way that tasks were performed and simplifying the jobs enough so that workers could be trained to perform their specialized sequence of motions in the one "best" way. Weakness: While scientific management principles improved productivity and had a substantial impact on industry, they also increased the monotonousness of work. Although, it maximized

Efficiency and productivity but its main limitation was ignoring human aspects of employment. The core job dimensions of skill variety, task identity, task significance, autonomy, and feedback of employees all were missing from the picture of scientific management. Second, whilst money is an important motivation at work for many people, neither for everyone. Following the salary employees can get, organizational structure and culture, management style, people are able to think that staff in company A look like a machine which solve problem such a commanding. However, that is characteristic of their work, and it best suited to this company to achieve maximizing efficiency. According to Boss Ltd, based on my opinion, the organization theory which Rezaul Karim has been applying for his company is Elton Mayos theory. Because Rezauls conception is the same with Mayo, he felt that if you treated the worker with respect and tried to meet their needs than they would be a better worker for you and both management and employee would benefit (in Mayos book). Following Elton Mayo discoveries, workers are the best motivated by: 1. Better communication between managers and worker ( Hawthorne workers were consulted over the experiments and also had the opportunity to give feedback) 2. Greater communication involvement in employees working lives ( Hawthorne workers responded to the increased level of attention they were receiving) 3. Working in group or teams.(Hawthorne worker did not previously regularly work in teams) Strength: Rezaul has tried to develop this company following this model. Its strong emphasis on teamwork. Top manages work closely with their subordinates, this takes some advantages for the transmission or exchange of information, share opinion and support their belief. Employees are rewarded for their expertise and their contribution of the company. It makes a different with company A. the worker will trend to work harder and dedicate their best for the job. In the other hand, Rezauls company has been trading in 3 different dynamic markets and require the highly competitiveness. Therefore, the manager also needs the contingency approach to prepare for charge of environment. Contingency planning reduces indecision, uncertainty and delays when something unusual happens. Thinking ahead and preparing for

events that may follow a tragedy allow a company to remain in forward motion. Weakness: Sometimes, team-work brings conflict to employees by the dissent of members in group. Communication between manager and staff can be better and receive more feedback from staff. However, its difficult to make decision which has to pass through long process.

Task 2(c): Evaluate the different approaches to management used by different organizations, such as the ones you have chosen. There are six different approaches to management that an organisation can use: Scientific Classical Administration Bureaucratic Human Relations Systems Contingency Each approach has very different characteristics, and each is more suitable for a particular type of organisation.

Looking at Boss Ltd and the way that the organisation is run, I would suggest that the approach that the management uses is broadly the Human Relations approach. The Human Relations approach to management focuses on the attitudes and relationships of the workers. It involves mainly the philosophy devised by Elton Mayo. He performed a number of experiments at the Hawthorn plant of Western Electric Company in the USA. The experiment was to see if there were any changes in the productivity of the girls working there if he changed the lighting. But he found that no matter what he did to the lighting, productivity went up anyway. He worked out this was because the girls were more motivated because someone was taking the time to focus on them. I think that this is relevant to Boss Ltd because their website contains a lot of information about their staff, and how they like to have a pleasant, relaxed working environment, whilst achieving high targets at all times. For example, in every office there is a staff room for relaxation that contains both a pool table and a table football game. This allows staff to get to

know each other better and to allow for a better atmosphere, because they can relax quickly, and overcome the effects of potentially stressful jobs.

The management taking a positive step towards ensuring staff feel relaxed and motivated is that there is no uniform at Boss Ltd. This encourages a freedom of image, and members of staff tend to enjoy coming to work more than other companies where rigorous rules are enforced.

References: References from Book: Organization structure and culture & theory: Organization and Behavior course book Organizational theory- Elton Mayo theory, Frederick Taylor theory References from journal: Influencing factor of individual behavior: John Ivancevich and Michael Mattson research (http://www.blurtit.com/q7433503.html) References from web links: Leadership styles: Ashridge Studies http://www.ashridge.com

You might also like