Organisational structure and culture affects the performance of the business Essay Example
Organisational structure and culture affects the performance of the business Essay Example

Organisational structure and culture affects the performance of the business Essay Example

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  • Pages: 13 (3481 words)
  • Published: May 3, 2018
  • Type: Case Study
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Organizational structure is the arrangement of tasks and responsibilities within a business, and it often influences the overall culture. The structure is designed to help the business achieve its goals by grouping individuals in two ways: by function and by product. In the matrix structure, employees have more than one formal manager, which allows for easier delegation of tasks and increased efficiency and profits. This structure is particularly beneficial for project work that requires coordination and teamwork. KGB, as described in the case study, has a flat hierarchy, with few middle managers and a wider span of control. This type of structure promotes better communication, as there are fewer people to relay messages and quicker decision-making. In a flat hierarchy like KGB's, there is a stronger relationship among staff members, and managers have more contact with their employees, leading to inc

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reased transparency and open communication.

The core values of Kbps are integral to the company's culture and daily operations. To analyze and compare Kbps' organizational structure and culture with another similar organization, we can consider Buffalo Beauty Pl, a global company operating within the same market as KGB. Upon examining the case study, numerous similarities emerge between KGB and Buffalo Beauty in terms of their organizational structures and cultures. Both companies employ functional structures where specialist managers assign different tasks to teams, resembling business units. This reflects a role and task culture, wherein skilled individuals come together to accomplish specific objectives. Additionally, my own research indicates that Buffalo Beauty empowers its employees to take charge of their own individual projects. This can be observed in their work to replace gas networks in Chester, as evidenced

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on their website (www.Polycarbonate.Com /index.Asp?Paged=102;meditates=23). By entrusting employees with autonomy, Buffalo Beauty is able to maximize productivity, as managers have faith in their ability to lead their teams effectively. Both companies also prioritize health and safety, recognizing it as a crucial aspect of their corporate systems. Given that a substantial portion of their services involve working with the public in hazardous environments, this focus is critical. Notably, the chief executive of Buffalo Beauty personally reviews significant fatalities, events, and environmental incidents within the company.

Both Buffalo Beauty and KGB prioritize safety practices, although KGB focuses more on other values. Buffalo Beauty emphasizes integrity, teamwork, and diversity. They have an active diversity statement in 80 countries, and their three-year plan is a rigorous monitoring system aimed at enhancing their reputation, unlike KGB. This approach brings out the best in their employees to achieve their goals.

In summary, these companies share similar structures, values, and culture due to being in the same market. However, they also have specific approaches tailored to their businesses, which may contrast each other to ensure all goals are met. KGB is a vast organization that can become complex without proper planning of roles and responsibilities. They use a role and task culture to manage day-to-day operations. Task culture promotes teamwork and quicker completion of jobs. However, it can lead to conflicts if employees delegate their work to others. In such cases, management may need to intervene to resolve disagreements.

The presence of a role culture in an organization can result in management having doubts about their employees. However, a role culture typically promotes productivity, as professional employees are allowed to work in their

respective fields. Managers often trust these employees to work independently and generate their own ideas, which can benefit the organization. Nevertheless, encouraging independent work can sometimes lead to conflicts. Employees' ideas may be risky and uncertain, especially if they are not well-thought-out or planned with risks in mind. On the other hand, the matrix structure has its advantages. It can increase motivation by having clear lines of communication and management, enhancing productivity and facilitating quick decision making. However, this organizational structure can be costly, as the company has to maintain double management. The expenses associated with this structure could be allocated to other resources within the organization. Conflict is a natural occurrence within any organization, but a good organization effectively manages and resolves conflicts by implementing rules and regulations. Conflicts among individuals often lead to negative outcomes.

On the one hand, when employees face issues with a manager in KGB, directors can intervene to mediate the situation. This allows everyone to express their differences and find a better solution to collaborate effectively. This approach is known as the human relations view. Conversely, when there is a breakdown, an organization may choose to adopt a traditional view, which is considered outdated. In such cases, the interactions approach becomes essential for the business to function efficiently.

On the other hand, changing the way a business operates to adapt to a demanding market can also have positive outcomes. I believe that the interactions view is the most effective way to handle conflicts because it constantly introduces change, making it appealing to targeted customers. A prime example of this is when KGB adapted their strategy to align with

the market they were targeting. There are various approaches to conflict resolution, some of which can be exhausting for managers who have to address their employees' daily issues and problems.

However, this allows employees to feel that their concerns are being heard, ultimately leading to increased productivity. Managers can also use bargaining strategies, such as distributive or integrative approaches. Distributive bargaining works best when resources need to be divided among parties, often resulting in a win/lose situation.

Integrative bargaining ensures that settlements are reached in a way that neither party loses, resulting in a win/win situation. From reading the case study, it seems that KGB operates as a flat hierarchy, which has its benefits and drawbacks if the business structure is not properly planned beforehand.

In a structured environment, managers and employees collaborate by sharing ideas and effectively managing market research. This aligns with Kbps' values of maintaining an open and honest relationship, fostering mutual respect. Such an atmosphere allows employees to thrive as they feel trusted and heard by their managers. Furthermore, managers can delegate tasks to employees, which promotes accountability for their actions and responsibilities.

There are various factors that influence employee performance in the workplace, including attitude, leadership abilities, task delegation, personality, harassment, stress, monetary gain, personal development, structure and culture, working with others, conflict, and working conditions. Employees' attitudes can vary throughout the day based on the tasks they are given. Repetitive tasks can lead to demotivation and impact the overall environment as employees make more mistakes and care less about product quality.Managers have the ability to shape employees' work environment through the use of positive or negative reinforcements. Positive reinforcements include rewards such

as monetary gains or praise for good behavior. Conversely, negative reinforcements can result in disciplinary actions, demotions, or even termination. It is important for managers to consider the attitudes and compatibility of potential candidates when hiring, selecting individuals who bring innovative ideas and think differently from others. This diversity can give the business a competitive advantage and serve as a unique selling point when targeting their intended market. This, in turn, can lead to increased revenue and profit. Mullions (2007:123) emphasizes the importance of considering applicants who have demonstrated original thought and the ability to break away from traditional norms during the recruitment process. Personality plays a significant role in this context, with varying psychological tendencies being largely inherited according to Hans Essence (Mullions 2007:128). There are four dimensions of personality that should be taken into consideration.These are the different categories of people according to psychologist Carl Jung: Stable introverts, Unstable introverts, Stable extroverts, and Unstable extroverts. Each category is assigned abbreviations to differentiate them. For example,/INFO represents introversion (l), intuition (N), feeling (F), and perception (P). It is possible for a person to fall into one or more personality types, as human nature is complex.

Personalities can be influenced by people close to us (ideographic) or through learning from our environment (monotheistic). Each trait can be utilized based on the circumstances or situations one finds themselves in.

In management, theories are used to understand how employees behave within an organization. Managers do this primarily to increase motivation and productivity. Numerous management theories exist, and some may be more compatible than others depending on the desired outcomes.

For instance, a transformational and democratic leadership style would be adopted

to motivate employees to work collaboratively in groups. As KGB is a large global company, a mixture of leadership styles would be necessary, and management may employ different theories to maximize employee performance. However, it's important to note that in order to achieve company goals, employee needs may sometimes take a backseat.

Based on the provided case study, it is evident that KGB utilizes both autocratic and democratic leadership styles.Autocratic leadership involves one individual having full control over all decisions. Leaders often rely on their own ideas and have less input from workers. The KGB provides various examples of autocratic leadership traits, such as implementing a structured introduction and probationary period for new employees. Deborah Marsh, the strategic development director, has a broad range of responsibilities, including ensuring that each worker is assigned tasks during projects. This aligns with KGB's core values of accountability, financial responsibility, and discipline. Autocratic leadership has the advantage of providing strong direction during high-pressure situations and meeting project deadlines efficiently. However, it also has disadvantages, such as a lack of creativity due to leaders not accepting ideas from workers. Additionally, leaders may be perceived as authoritarian and overly controlling, resulting in worker dislike and a loss of mutual respect. In contrast, democratic leadership incorporates more participative qualities.The involvement of multiple individuals in the decision-making process is exemplified in the KGB organization, where specific professionals like David Cubby (asset manager) are employed in certain groups. David's experience not only contributes to positive outcomes in the business, but he is also motivated by the opportunity to make a difference.

This type of leadership, which encourages contributions from various individuals, often leads to higher productivity

and increased morale. However, it can also result in communication failures and incomplete projects if workers lack the necessary expertise for making high-level decisions. Nonetheless, choosing both leadership styles was a good decision for KGB as it ensures efficiency in providing high-level services that meet customers' needs. Additionally, as the company grows, managers and employees can grow together.

Buffalo Beauty's success and ability to grow can be attributed to their practice of cultivating workers into strong leaders through development sessions and challenges that highlight their strengths and weaknesses. This approach reflects a more democratic and transformational style of leadership, as the company fosters the growth of their employees' careers. They recognize the advantage of this approach as it promotes employee retention within the organization.The text discusses the importance of internal knowledge and expertise remaining within a company and not being transferred to competitors. It also discusses the role of transformational leaders in inspiring positive attitudes and helping workers thrive. Transformational leaders are described as enthusiastic, passionate, and lively. The benefits of this leadership style include open communication, mutual respect, and the generation of beneficial ideas for the organization. However, it is noted that this style can be time-consuming for managers as they constantly motivate employees.

The text also mentions organizational theory, which is a field of study that examines how structural and environmental changes impact behavior within an organization. The goal of applying this knowledge is to improve the organization's effectiveness in the market. The classical approach to management is discussed, which originated during the industrial revolution but has evolved over time. Many small and large businesses still use this approach today. The classical approach is divided

into three segments: scientific management, administrative theory, and bureaucratic management.Frederick Winslow Taylor developed the scientific management theory with the goal of improving efficiency and productivity of manual labor. One advantage of this theory is increased quality control. Workers were incentivized to maximize productivity through a Piecework pay system, where they were paid based on each product manufactured. This pay system is still used today in industries such as car manufacturing. However, implementing this system can be costly as it requires work study, planning department training, and standardization across the business. Additionally, it lacks flexibility, which can lead to higher staff turnover and sickness, ultimately resulting in decreased productivity.

Elton Mayo Hawthorne believed that both internal and external factors can influence a worker's attitude and motivation. He suggested that repetitive tasks could lead to boredom and a decline in motivation. To address this, Mayo proposed boosting motivation by making employees feel significant and recognizing their social needs. Internal factors, such as the desire to acquire new skills, can also be rewarding for workers.External factors can provide financial or promotional incentives for achieving goals. If targets are not met, a negative motivator could be the absence of a pay raise. However, meeting every social need of employees can be unrealistic and costly for a business. Mayo's theory highlighted the importance of employees forming groups, which can benefit the organization as a whole. The four approaches within management theories are classical (scientific management and bureaucracy), human relations (neo-human relations), systems, and contingency. Management can adapt these theories to suit their goals and address any overlooked areas in the business. Making adjustments can help motivate employees, such as changing geographical

locations or implementing new rules and regulations. This ultimately increases productivity and leads to profits. KGB and Buffalo Beauty Pl primarily utilize classical management approaches, including a hierarchy structure that clearly defines leaders and employees.The following text explains the importance of clear roles and responsibilities in a workplace. This helps avoid confusion and allows employees to know who to seek assistance from. It also enables management to oversee tasks that need to be completed. This collaboration between managers and employees is crucial for achieving common goals. The text then discusses two different leadership styles: autocratic and democratic. Autocratic leadership involves leaders making all business decisions, resulting in quicker decision-making but possibly leading to conflicts with unhappy employees. Democratic leadership, on the other hand, involves leaders considering employee ideas and views but ultimately making the final decision. The text also mentions monetary incentives as a primary motivator in the classical approach to management. When money becomes the incentive, employees tend to work harder, and management uses this control to improve workplace productivity. Lastly, the text briefly describes economic recession and its impact on various aspects of business, including employee motivation and consumer spending habits.During the recession period, certain businesses such as app stores experienced a positive turnaround. These businesses not only offered affordable products but also maintained good quality. On the other hand, industries like car manufacturing and construction suffered as consumers showed no interest in luxury items that they couldn't afford to maintain. This had implications for companies like KGB, which operated in the construction industry and had to adapt their leadership style accordingly.

KGB utilized two leadership styles, namely Autocratic and Democratic. Autocratic leadership was

particularly useful during economic recessions when there was limited time for group decision-making. In this style, the leader, who is usually the most experienced member of the workers, makes decisions quickly to stay ahead of competitors. However, this style can be seen as bossy and controlling, limiting employee creativity and affecting motivation. Employees may not feel valued or that they are contributing positively to the business.

On the other hand, Democratic leadership is generally considered the most effective style as it allows employees to participate in decision-making, resulting in high-quality ideas. However, the downside is that the decision-making process can be time-consuming due to multiple inputs from employees.In conclusion, I believe that democratic leadership is more effective in gaining employee motivation during a recession. However, the KGB made a good choice by using both leadership styles. An autocratic style may be more suitable in a recession as decisions can be made quickly to respond to changing economic situations. However, employees may feel their job is threatened and may be reluctant to be involved in decision making. Abraham Moscow's hierarchy of needs was used by Moscow Mascots. This hierarchy represents the different needs of individuals, which are often represented as hierarchical levels within a pyramid. Managers can determine which stage the worker is at using this hierarchy. Once a need has been established, the employee seeks to satisfy the next one, and so on. The hierarchy includes physiological needs (such as air, drink, food, shelter, sleep, and warmth), self-actualization (seeking one's own potential and personal growth), esteem (achieving self-respect within the business and respect from fellow employees), and social needs (belonging to a particular work group). Safety

needs refer to stability, security, and limitations.There are typically five stages in the pyramid, as shown in the website (http://www.Cosmologically.Org/Moscow.HTML). Frederick Herbage's motivation and hygiene factors, also known as the dual-factor theory by Herbert, determined certain factors in the workplace that cause job satisfaction/dissatisfaction. Herbert was the first to demonstrate both satisfaction and dissatisfaction within the working environment. Herbage's research showed that workers will prioritize achieving their hygiene needs, as they are less content when deprived of them. However, once satisfaction is achieved, it quickly diminishes as it is only temporary. The motivational factors identified by Herbage include achievement, responsibility, recognition, and advancement, while the hygiene factors include salary, security, policy, status, working conditions, and personal life. Both theories are relevant and focus on different ways to motivate workers in an organization. They aim to address the biological needs such as food, drink, and working conditions. For instance, employees may become highly frustrated if they lack adequate time for lunch or water breaks. This frustration can result in reduced work quality and productivity, which directly affects revenue and profits. Additionally, Frederick Winslow Taylor believed that money was the primary motivator for employees within an organization. He introduced the piece pay system and production line, which are still widely used today.

A benefit of this theory is that it enables businesses in the 21st century to produce a higher quantity of work. However, if employees are dissatisfied with their working or personal conditions, it can negatively affect both the quality and quantity of the product. Employees will not perform well if they lack motivation, which contradicts Taylor's desired outcome. Herring's theory was one of the first

to consider satisfaction and dissatisfaction at work, using hygiene and motivational factors. Moreover, this theory was considered modern for its time, as most theories did not prioritize employee well-being. There are advantages to this theory, as some of the factors that Herring identified are within managers' control. For example, during an economic recession, managers can address employees' concerns about job security through open communication and honesty. However, it is important to note that giving employees responsibilities they are not prepared for can have negative consequences. Lastly, Broom's expectancy theory is based on individuals' decision to act in a certain way because they are motivated by the desired outcome of their behavior.

One advantage of this theory is its reliance on goal-setting as an effective way to motivate employees and drive quick progress. To ensure its success, managers should implement specific, measurable, achievable, realistic, and time-targeted (I.E.S.M.A.R.T.) goals. If goals are not met, employees may become demotivated if they expected certain outcomes from their actions (HTTPS://www.Boundless.Com/management/organizational-behavior/process-and-motivation/goal-setting-theory/).

Tailor's theory, which established the piece pay system now commonly used in 21st century production lines, is relevant in today's era. Managers utilize this theory to ensure productivity and maintain quality, as seen in businesses like Amazon (https://www.boundless.com/management/organizational-behavior/classical-theories-of-performance/goals-theory-and-goal-setting/).

Maslow's hierarchy of needs can also be applied to 21st century workers, as the pyramid encompasses all aspects of needs. This allows managers to be prepared for various workplace situations and lead effectively while motivating employees to maintain high levels of productivity. As a result, this leads to increased revenue and growth (http://www.Oho.Com/info_8090816_effects-ultra-decision-making-business.HTML).

Within large organizations, subcultures or groups are formed when individuals share common behaviors and beliefs. There are two types of groups (http://www.Oho.Com/info_8090816_effects-ultra-decision-making-business.HTML).

Both

formal and informal groups exist within organizations. In formal groups, there is typically a designated leader who provides guidance, while in informal groups, a leader acts as a mediator instead. The culture within a group can significantly impact decision-making processes within a business. Kurt Lenin, a psychologist mentioned by Sass, discovered that individuals often assume specific roles when working in groups. These roles are collectively referred to as "Group dynamics," which aptly describes the influence of these roles on group members. Contemporary researchers base their theories on Linen's ideas.

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