The Importance of Organizational Structures and Culture - Essay Example

Organizational Structures and Culture Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 4 2.0 Organizational Structures 5 2.1 Flat Structure 5 2.2 Bureaucratic Structure 5 2.3 Organisations Evaluation 6 3.0 Principles of organizational structures 6 3.1 Division of Labour 7 3.2 Command Chain 7 4.0 Types of culture 8 4.1 Clan Culture 8 4.2 Adhocracy Culture 9 4.3 Market Oriented Culture 9 5.0 Relationship between Organizational Structures and Cultures 10 5.1 Beaurocratic Structures 10 5.2 Flat Structure 10 6.0 The Relationships Implications on Organizational Performance 12 6.1 Employees Motivations 12 6.2 Risk Taking Approach 12 7.0 Factors Influencing Individual Behaviour Characters 13 7.1 Employee Perception 13 7.2 Employee Attitudes 14 8.0 Management Theories 14 8.1 Scientific Theory 14 8.2 Bureaucratic Theory 15 8.3 Administrative Management Theory 16 9.0 Functions of Management 17 10.0 Conclusion 18 References 19 1.0 Introduction Organizational management is an increasingly growing concept in the global platform. In this case, organisations are increasingly applying the concept and approach of strategic management in order to reduce on management costs as well as increase management efficiency. In this case, it is imperative for organisations to develop and establish appropriate frameworks through which the systems can be improved. One of the approaches through which the strategic management system seeks to improve and increase on the existing organizational frameworks in the market, it relies on the existing organizational structures. Subsequently, the existence of ideal organizational structures implicate on the existence of the structure principles and features that dictate on the nature and type of organizational functional divisions and approaches used. Moreover, Hussain (2004, p.116) stated that strategic management relies on the existence and nature of the respective organizational cultures. In this regard, the systems incorporate the development and existence of the cultures into developing the relevant and befitting organizational strategies. In this case, the organizational cultures, structures and management approaches implicate o the overall HR attitudes and behaviors that have a direct implications on the organizational performance and competition levels. This report study evaluates the various organizational management concepts and their overall implications on an organizational overall market performance and success. As such the report adopts the case studies of the Beauty Shop Australia and Coca-Cola Companies. 2.0 Organizational Structures An organizational structure is described as the nature and approach through which organizational functions, responsibilities as well as decision making are aligned and allocated. In this case, there are traditionally two organizational structures namely the flat and the hierarchical structures respectively. 2.1 Flat Structure On one hand, is the flat organizational structure. This structure is also known as the decentralized organizational structure. Under the flat organizational structure organisations seek to decentralize their functional and management responsibilities. In this regard, there is the tendency for reduced line managers’ management levels. Instead, such structures adopt an increased need and concept for staff managers who are equipped with the mandate and skills to support and empower employees in their duty execution processes in the organization. One strategic feature of the flat management structure is the presence of increased employee empowerment programs in the market through an increasing adjudication of mandate and responsibilities. In this case, the employees are directly involved in the development and establishment of organizational operational strategies in their respective functions in the market. 2.2 Bureaucratic Structure On the other hand as Jayaswal (1990, p.19) stated is the bureaucratic also known as the centralized organizational management structure. In this regard, the organizational management structure focuses on empowering the executive management. As such, all organizational decisions whether strategic or operational execution is based on the decision and discretion of the executive management. Moreover, such organizational structures operate under the red tape management system where the presence of increased line managers’ presence. In such approach, the line managers focus and target on establishing their influence on the employees. In this management structures, the line managers serve as operational supervisors in an approach through which the respective employees’ execution of their mandate is examined and evaluated. Through this approach the organizational confidence on the employees is virtually reduced in that they do not trust on the respective employees’ decision making and performance capabilities and independence. In addition, under a centralized organizational management structure, organisations operate under a stringent communication system that largely allow for downward communication while reducing on the avenues and opportunities for upward internal organizational communication systems. 2.3 Organisations Evaluation An evaluation and comparison of both the Beauty Shop Australia and Coca-Cola establishes an organisational structure similarity. In this regard, both organisations apply and involve the decentralised organisational management approach. As such, the approach allows the Beauty Shop Australia to decentralise its operations to the respective employees while the Coca-Cola Company decentralises its functions through the respective products functions that are unique profit centres under own unique operational strategies. 3.0 Principles of organizational structures As already argued, strategic management performance and success in organisations relies greatly on the adopted and executed organizational structure. Although different industrial sectors and consumer markets require the implementation and execution of diverse organizational structures, there is a shared relationship for an efficient organizational structure under the principles of organizational structures. In this case Preuss (2010, p.473) argued that among the identified principles include division of labour, specialization, regulations among others. 3.1 Division of Labour On one hand, an efficient organizational structure relies on the development and establishment of relevant and appropriate organizational labour divisions in the society. In this case labour division incorporates the establishment of unique functions and responsibilities in the society. In this case, respective organisations in the society subdivide the functions and responsibilities of their employees in the organization. As such, this allows for reduced employees performance and productivity through clear definition and distinction of roles and responsibilities. Through this approach, labour confusion is considerably reduced through job description and classification an approach imperative to enhancing organizational employees’ motivations. 3.2 Command Chain In addition, an appropriate organizational structure is one that provides for specialization and employee growth and career development opportunities. In this regard, such a structures should have a definite communication and command chain. Although this factor is prevalently deficient in the Beauty Shop Australia, mainly due to infrastructural capability challenges, it is clear and well enumerated in the Coca-Cola Company. Through the establishment of definite and official communication channels, organizational employees’ needs and responsibilities are communicated appropriately; the employees’ success rates and performances are relatively enhanced and promoted in the organization (“The Coca-Cola”, 2014). Further, an additional principle requirement for the development and establishment of an appropriate organizational structure is the one that promotes and advocates for increased organizational outcomes in the society. In this case, the structures should provide approaches and systems through which the respective employees and overall organizational performances are evaluated and established. Through the presence of an appropriate organizational performance evaluation structure, organisations are able to evaluate and establish their performance levels and extent. Subsequently, this allows for increased organizational performance evaluation, virtue imperative for increased long term organizational performances. 4.0 Types of culture Organizational operations and practices are largely influenced by a range of internal factors and practices. One among these factors is an organizational culture. Basically, there are four basic cultures in an organization namely clan, adhocracy, market and hierarchy cultures. In this regard, the respective cultures influence organizational operations differently. 4.1 Clan Culture On one hand, as Scott (2003, p.68) discussed, the clan organizational culture is one that advocates for increased cooperation and interrelationships between employees. In this regard, under the clan organizational cultures, employees often seek to work together with their respective peers in the organisation for the overall good and success of all the stakeholders. The Beauty Shop Australia applies and adopts the clan organisational culture. In this regard, the management propels and advocates for increased relationships and corporations between the employees both in the headquarters and across the retail outlets in a bid to increase the overall organisational competitiveness and market success rates (“The Beauty Shop Australia”, 2014). 4.2 Adhocracy Culture On the other hand is the adhocracy organizational culture. On its part, the culture advocates for entrepreneurial and risk taking approach. In this regard, organisations with this culture type are characterized with increased innovations and new products developments. This is often linked to the development and establishment of increased critical thinking rather than the traditional logical thinking approach. Therefore, the systems are characterized by the presence of increased risk taking approaches in the society. Through their entrepreneurial advocacy in their practices and processes management, organisations with the adhocracy culture are increasingly task and risk oriented and often ventures into risky markets with high revenue returns, where the competitors are often afraid and unwilling to venture into. 4.3 Market Oriented Culture An additional organizational culture is the market oriented culture. Under this organizational culture, organisations are often task oriented and employees focus on achieving the job being done. Therefore, this organizational culture focuses on the task outcomes rather than the means and approaches used to achieving the tasks. Therefore, the culture is of the approach that the end justifies the means. In this regard, such organisations focus majorly on employees’ performance history rather than the approaches and system adopted into achieving them. The Coca-Cola Company applies this organisational management approach. In this regard, it is imperative to note that the organisation divides its operations based on the products supplies such as Coca-Cola brand and the Fanta brand functions. As such, the organisational executive management places minima emphasis on the approaches and strategies adopted by the respective functions. However, of importance to the management is the need for the respective functions to develop and establish the organisational strategic objectives and profit margins (“The Coca-Cola”, 2014). 5.0 Relationship between Organizational Structures and Cultures There exists a direct relationship between organizational structures and the cultures. In this regard, the two organizational variables have a dependent interrelationship nature. This implies that each of the variables implicate on the other. Thus, the existing organizational structure influences the subsequently developed organizational culture while the existing culture has an influence on the developed and adopted organizational structure. 5.1 Beaurocratic Structures On one hand, a centralized bureaucratic organizational structure often focuses on developing increased employee supervisory and management controls. As such, the organisations focus on approaches and strategies that are task and performance oriented rather than on developing individual employees. Therefore, organisations applying this management structure often result to the use and application of the hierarchy oriented structure that places much emphasis on the employees’ performance procedures rather than focusing on the actual final task outcomes (Pride, Hughes and Kapoor, 2010, p.7). 5.2 Flat Structure On the other hand, a decentralized or the flat organizational structure focuses on empowering and entrusting the respective organizational employees with the responsibility of developing and forming the relevant organizational decisions. Therefore, through this approach, the structure focuses on empowering and improving the employees’ wellbeing. Thus, the structure advocates for increased use of the clan organizational structure approach in the society. As such the organizational structure advocates for increased employee empowerment and support to develop and increase their respective skill, a virtual imperative in the clan organizational culture. Further, under the organizational structures is the product oriented structures, where organisations activities are divided and structured based on the respective products segmentation. Although a traditional player in the Australian Beauty industry, the Beauty Shop Australia has retained its overall performance and influence in the market due to the adopted culture. Through this culture, it is able to develop its employees, equip them with skills and facilitate their career development a key virtual component in the development of superior quality products as well as quality services delivery to the market, a characteristic of the Beauty Shop Australia (“The Beauty Shop Australia”, 2014). Therefore, through this approach the organisations focus on the tasks executed and the overall outcomes on increased profit margins rather than the process or nature of the task execution. Therefore, this organizational structure encourages the market oriented organizational culture. As such, through these approach organisations encourages the respective product segments to adopt the diversified strategies, unique in their own approaches as long as they achieve the overall organizational objectives of increasing their shareholders gains and returns. This can be cited as one of the influencing and driving factors for the Coca-Cola Company in the global market. The encouragement and the overall use of organisations strategic unique approaches have increased its competitiveness and sustainability over other competitors such as Pepsi due to the development and adoption of market unique and specific approaches. As such, the respective products structures have the liberty to adopt their respective market influence and gains (“The Coca-Cola”, 2014). 6.0 The Relationships Implications on Organizational Performance The interrelationship between the organizational structures and cultures has implications on the nature extent and form of the organizational performance levels. In this case, the overall implications of these factors on the organizational operations have an influential dimension on the overall organizational performance levels. As such, the organizational performance is implicated based on customer care services, services deliver quality as well as direct employee involvement. 6.1 Employees Motivations On one hand, they have an implication on the employees’ motivations. Organizational employees’ motivation rates are influenced by the existing organizational policies and policies. For instance, the existence of an employee empowerment process in a flat organizational structure as well as the adoption of the clan organizational culture increases the respective employees’ motivation into delivering their services and executing their functions. As such the opportunities availed by this management approach including increased career growth as well as development, motivate the employees into working hard subsequently increasing and improving on the overall organizational performance and market success rates. 6.2 Risk Taking Approach In addition, the adoption of the Adhocracy organizational culture that advocates for increased risk taking practices and approaches advocates for increased employee performance. In this regard, organizational employees through increased culture application develop and adopt the critical and creative thinking techniques. As such, the application of these techniques results to the application of increased innovations in an organization. As such, this enhances the overall organizational competitiveness. The current globally competitive market is highly reliant on the existence and presence of innovative organizational practices. Such practices should be unique and sustainable in that it is imperative hard for the organizational competitors to copy or imitate them. Therefore, the adhocracy culture facilitates the development and establishment of sustainable organizational competitive edges, a virtual imperative in the enhancement of organizational performance and success in the market. Finally, a review of the decentralized bureaucratic organizational structure negatively implicates on the overall organizational performances in the highly competitive global market through denying the employees opportunities to exercise their freedoms as well as skills to develop innovative organizational decisions and products. 7.0 Factors Influencing Individual Behaviour Characters Besides the presence and existence of an organizational culture influence on the overall organizational performances and success, the respective employees’ traits and characteristics have an influencing effect. In this case, it is imperative to note that an organisations HR policies and the nature and type of the organizational employees. I this case, individual organizational employees’ traits such as perception, attitudes and self image implicate on the overall employees performance and productivity in an organization. 7.1 Employee Perception On one hand is the concept of the employees’ perception. In this regard, the perception implicates on the approach and motivational factors on employees. For instance, employees who perceive financial rewards as better alternatives over non financial rewards such as promotion are only motivated and influenced to increase their production when awarded and offered such rewards. As such, the employees’ perception influence on the existing and potential organisational reward system has a direct implication on their overall productivity and performance levels. 7.2 Employee Attitudes In addition, individual employees’ attitudes implicate on their performance and productivity in respective market segments. In this regard, the employees’ attitude influences the nature and type of relationships developed with the consumers in the market. As such, the established relationships have a direct implication on the consumers’ decision making process and the sub sequential satisfaction levels as well as loyalty development towards organisations brands and services provision. 8.0 Management Theories The process and concept of management has over the years evolved through a series of management theories and approaches. In this regard, each of the management theories has its share of merits as well as challenges. This evaluation focuses on the scientific, bureaucratic and the administrative management theories, key among the theories that revolutionized organizational management approaches and practices (Adetule, 2011, p.12). 8.1 Scientific Theory On one hand is the scientific management theory. This theory was proposed by Taylor in the late 1940s.In its approach, the theory focuses on industrial co-operations rather than conflicts as well as the building of trust between management and employees as key among management success factors. As such, the theory developed key four principles perceived as the management guiding framework. One, the theory advocated for scientific approach to management rather than the rule of thumb, second, the theory advocated for a scientific approach in selecting workers as well as reduction of conflicts and focus on trust development between employees and management. Finally, the theory advocated for employee training avenues to advance their careers as well as improve their performance efficiency and success rates. The application of this theory can be evidenced in the case and management of the IBM Company. In its management approach, the IBM management focuses mainly on the individuals’ skills and competencies over other HR traits such as perception and self image. As such, the organisation focuses on the establishment and building of an efficient and highly qualified HR workforce to expound on and achieve on the strategic organisational objectives in the technology industry that requires increased creative thinking as well as innovations to succeed. 8.2 Bureaucratic Theory A second management theory was one developed by Max Webber, named the Bureaucratic management theory. Under this theory, organisations were managed as a part of the society. Therefore, the theory advocated that an organizational structure, respect and definition of roles were a key management element. Therefore, organisations operating under this management theory had an increased hierarchy ladder to allow for increased control and regulation of employees. However, this increased control led to the eventual demotivation of employees for the perpetual lack of empowerment and trust. The case of the application of this management approach can be cited in the case of NATO management. With its military and combat orientation, NATO places much emphasis on discipline and conformance to regulations. Therefore, each officer and employee in every level of operation of management is required to directly account and answer to a definite supervisor. In this regard, the organisation has a definite and clear chain of command through which information flows. In addition, due to the nature of operations and products developed, the organisation is inclined into developing a more efficient downward communication rather than the upward communication system. 8.3 Administrative Management Theory Finally, under the management theories are the administrative management theory. This theory was developed by Henry Fayol as a remedy for the challenges experienced in the previous management theories. In this regard, the theory based its management approach and argument on fourteen key principles of management. In general, the theory classified organizational management responsibilities while allowing the employees enough career development opportunities as well as allowing for both downward and upward communication channels. An application of this management principle can be cited in a wide range of current organisational management systems across multinationals. For instance, an evaluation of the Coca-Cola Company, a beverage industry multinational, establishes that the organisation applies this management approach. In this regard, the venture is divided into product based functions that are profit generating functions. As such, the ventures are coordinated and managed by respective heads with the ultimate aim of delivering on the organisational mission and attaining its strategic vision, that forms is strategic objective in the long run. In addition, the Beauty Shop Australia, a local leader in the beauty Industry applies this management theory in a bid to increase employees’ involvement. This can be evidenced by the regular weekly meetings held with the headquarters employees in an effort to increase the overall organisational credibility and operational systems transparency (“The Beauty Shop Australia”, 2014). 9.0 Functions of Management As outlined under the administrative management theory, an organizational management is charged with five key management functions namely planning, organizing, staffing coordinating and controlling. On one hand, organizational planning function is the initial and first stage in any management process. This function is initiated at the inception and conception of a business idea prior to its implementation. As such, organizational managements initiate the planning process through the development of business plans as well as the development of organizational vision statements as well as strategic objectives. Once the organizational strategic plans are developed and the business is set in motion, the management has a responsibility of organizing the respective organizational resources and potentials into operational functions. As such, the organizing function incorporates the integration of resources and potentials in an organization into appropriate functions and formats that can be executed and relied upon to deliver on the organizational strategic plans and objectives. In addition, the organizational management is charged with the responsibility of attracting, recruiting, and retaining qualified organizational human resource. In this regard, they should ensure the matching of the acquired labour with the organizational current and future needs in the market. As such, it is only upon the development and establishment of qualified human resource workforce that organisations can succeed in the development and attainment of their current and future market objectives. Further in the management functions line is the coordination role. Under this mandate, organizational management have the responsibilities of ensuring that the developed organizational functions as well as the recruited HR have a synergy and are efficiently integrated to increase productivity both I the short and long run periods. Finally, is the controlling function that includes evaluation of the organizational functions, establishing challenges as well as recommending and executing improvement measures. 10.0 Conclusion In summary, this report offers a review on a wide range of organizational management issues and factors through the case studies of the Beauty Shop Australia and the Coca-Cola Company. In this regard, the evaluation discusses the various existing organizational structures as well as their efficiency principles. Moreover, it evaluates organizational cultures, their relationships with structures and the eventual implications on organizational performances. Moreover, it evaluates the internal factor implicating on HR performances, the organizational management theories and finally the functions of management in enhancing organizational success. Based on these factors and issues analysis, this evaluation concludes that there exists a direct relationship between an organizational overall management success rates and the ability to integrate and coordinate the various internal factors implicating on management. References Adetule, J. (2011). Handbook on management theories. Bloomington: Author House. Hussain, M.M. 2004, "Organisational Strategic Orientation and Its Impact on Non-Financial Performance Measurement in the Financial Services Industry", Management Research News, vol. 27, no. 11, pp. 115-133. Jayaswal, P. K. (1990). Librarianship and bureaucratic organisation: A study in the sociology of library profession in India. New Delhi: Concept Pub. Co. Preuss, L. 2010, "Codes of Conduct in Organisational Context: From Cascade to Lattice-Work of Codes", Journal of Business Ethics, vol. 94, no. 4, pp. 471-487. Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2010). Business. Australia: South-Western/Cengage Learning. Scott, T. (2003). Healthcare performance and organizational culture. Abingdon (Oxon, U.K.: Radcliffe Medical Press. The Beauty Shop Australia, 2014, Organizational Overview. [Online] Available at [Accessed September 11, 2014]. The Coca-Cola, 2014, Organizational Profile. [Online] Available at [Accessed September 11, 2014]. Read More