Organizational Management of Two Business Organizations - Assignment Example

?Introduction to Organisations and Management Table of Contents Table of Contents 2 0 Introduction 3 3.0 Leadership, Management, Motivation, Groupsand Teams 7 4.0 Organisational Culture, Human Resources and Technology 13 5.0 Conclusion (Observations and Recommendations) 16 References 17 1.0 Introduction In the present business scenario, organisational management of any organisation is a challenging task. Effective management in an organisation may bring positive outcome in organisation’s operations. The management of any organisation has a great role in bringing the success of the business. In this paper, organisational management of two business organisations has been critically analysed. The team building effort and work of both the organisations have been cited by mentioning the important features that played a significant part in those aspects. The management and leadership approach of these companies are explained in detail. The paper also contains the details of organisational culture of both the organisations. 2.0 External Environment and Organisational Structure Critical Comment Organisational structure and organisational design assist an organisation to organize the people and task in order to meet the goals and objectives of an organisation. Theories The hierarchical structure is pyramid in its form. In the hierarchical structure, president is placed at the top followed by ‘vice president’ or ‘senior managers’ and below this level there are a number of management layers and maximum employees are placed at the bottom level of the pyramid. Each of these people has several people reporting to them. The number of people increases at each level down the structure. The jobs in the hierarchical structure are categorised by function into various departments in the organisation (Reference for Business, 2011). Source: (Tutor 2u, n.d.). Network structure refers to “the arrangement of the differentiated elements that can be recognised as the patterned flows of information in a communication network”. The virtual organisation utilises electronic mail in order to share information as well as coordinate their work. The use of email permits the workers to maintain their identity without a shared physical setting and facilitates existence of a group without evident participants (Ahuja & Carley, 2001). Contrast The organisational structure of Watsons Engine Components is out of fashion and possesses hierarchical structure. Though hierarchical structure provides advantages in an organisation, Watsons Engine Components faced problem in their organisational structure due to various reasons. The communication which took place in each department was not effective and rivalry arose in the organisation as each department took decision based on their own interest rather than the interest of the whole organisation. The increased bureaucracy created an obstruction towards their endeavour of organisational change; and while responding to the clients, maximum time was required. Since there were a numbers of layers in the hierarchy, it entailed the company to increase its cost (Know How, n.d.). H & M Consulting is an organisation with network based organisational structure since a group of people interact by means of interdependent task for the attainment of common goals. The virtual organisation is geographically distributed as the members in the organisation work for common interests and goals. As it is a virtual organisation, it involves high level of informal communication. Due to deficient formal rules, procedures, clear reporting relationships and norms, there is a requirement of more extensive informal communication (Ahuja & Carley, 2001). External Environment PESTEL Analysis Comment Critically Various factors are present in the external environment that influences managers to take decision. The analysis of various factors can be done by using the PESTEL model. Theory The model of PESTEL analysis involves political, economic, social, technological, environment and legal. Political factors denote the governmental policy such as health of nation, infrastructure quality, and education of workforce and others that may have impact on the business. Economic factors are economic growth, taxation, inflation and others. Social factors refer to the value of the product among customers and the interest of individual to work. Technology involves new products as well as processes in the business. Environment factors such as weather, temperature, climate change have an impact on business. Finally, the legal factors involve consumer laws, employment laws, competition laws and others (Oxford University Press, 2007). Contrast The political environment of England was not favourable for Watsons. The economic condition of the company was not strong to improve the business. This was because the fixed cost had increased the rate of inflation. The employees were not interested to work. The demand for the products was also less due to low technological improvement. The environment of the place also had a negative impact on the workplace. The political environment exerted positive impact on H & M Consulting’s business. The company was economically strong due to economic condition of the country. The employees were interested to work there due to the work environment and the company is also technologically sound. The environment factors in the country have a positive impact on the organisation. 3.0 Leadership, Management, Motivation, Groups and Teams Groups and Team Critical Comment Team building and teamwork in today’s organisations have become a common phenomenon. The team building in the place of work may lead to success of an organisation. The self managed team may bring successful outcome of business operations (Scott, n.d.). Theories The self managed team represents organising of a company or its parts into teams, who are provided with the shared authority and the responsibility for planning, executing and controlling the achievement of the team targets. If an organisation develops self-managed team in departments then it would assist to increase the efficiency of an organisation. The level of self management is different for each team. Self managed team with multi-skilled workers is essential in manufacturing organisations as it would facilitate the company to make self managed team an ideal approach nationwide (Scott, n.d.). Contrast Watsons Engine Components had no proper self-managed team. The mangers had never thought of developing a team while accomplishing task in the workplace. There was no cooperation between the employees working in shop floor level and in production department. The team structure was poor and in certain situations there was no question of team work at all in the organisation (PR Log, 2010). H & M Consulting has a highly organised team structure and self managed team. The company possesses project team building structure with team members from various departments of the organisation with relevant knowledge. In project team, the members possess the responsibility for planning and implementing the projects. The team comprises of Project Manager and several projects’ team members, who deliver the task according to the schedule of the projects (Cornell University, n.d.). Management Critical Comment Managing is considered as one of the vital human resource activities. Management of an organisation in an efficient manner is a challenging task for the managers. It intends to achieve the goals of the organisation by proper utilisation of the resource of the organisation. Proper management also brings sufficient output with minimum input as well as lesser cost (Management Study Guide, 2011). Theories The management functions of an organisation involve planning, staffing, organising, leading, and controlling. Planning accurately regarding any objective of organisation is an important task. Organising refers to create the roles of intentional structure for people in an organisation. Staffing is occupying of unfilled positions in an organisation. Leading is the process of influencing the people to attain group goals of an organisation. Controlling means the measurement and correction of subordinates’ activities in order that the plans are fulfilled. Coordination in an organisation is more essential as it help in attaining harmony among the employees to achieve goals (Olum, 2004). Contrast The management style in Watsons Engine Components is not at all structured. Various layers of management acted as a barrier in leading the employees in proper way. The valuable time in the organisation was wasted due to constant conflicts and disputes between the managers and workers instead of proper planning. As a result, productivity decreased to a great extent and the projects delivery lacked far behind in meeting budget and performance target (Schyns & Hansbrough, 2010). On the other hand, the management style is well designed. The managers have great responsibility towards the employees in an organisation. They act as an advisor while managing the projects with the team members. The management style in the organisation was represented by planning for the projects, controlling the project team member, organising them and at last directing the team members for completing the specific projects (Leitner, 2007). Leadership Critical Comment Leadership has become a significant factor in an organisation in order to participate actively in line of organisational objectives. Leaders influence the employees to build teams and work cooperatively in achieving the goals of the organisation. Proper leadership style may create strong workforce in an organisation. Without the guidance of leaders, an employee may face problems which may results in adversity in the organisation (All About Leadership, 2010). Theories Leadership theories are based on the quality and behaviour of successful leaders. There are various theories of leadership, but in H & M relationship leadership theory is followed. In relationship leadership theory, there is a close connection between the leaders and followers. The leaders possess high morale values and motivate as well as inspire the employees in difficulties (True Leadership, 2009). Contrast The leadership style at Watsons was not proper. In the organisation, there was no feedback from the leaders about the performance of the work. The organisation lacked in proper guidance from the leader. As a result the meeting that took place in the organisation were meaningless and ineffective and instead of solving the problems and passing responsibility they provided focus on unproductive discussion (Schyns & Hansbrough, 2010). The leadership style in H & M Consulting was well organised. The leaders in the organisation were focussed towards stimulating the effectiveness of employees. Furthermore, they provided extensive training, coaching, mentoring the team members and other employees in order to get the task completed in efficient manner (Leitner, 2007). Motivation Critical Comment The motivation of an employee is a vital aspect for the success of a business. In a business organisation, motivational need of each employee will not progress in the same pace. The motivational level varies from workers to workers. However, all the need factors of Maslow’s theory depend on the employees and their efficiency to fulfil the needs and move up in the hierarchical level. The managers of the organisation assist the employees in fulfilling their need hierarchy (Tutor 2U, n.d.). Theory In the theory of motivation, human need is considered as the satisfying factor. The first need in the motivation theory of Maslow is physiological needs. The employees of H & M Consulting fulfilled the psychological needs as they all had the basic needs of life, i.e. food, water and shelter. The organisation provided sufficient time for lunch break as well as provided good salary packages to satisfy their basic needs. However, the employees of Watsons had partly fulfilled their first basic need as the salary structure was not satisfying them. The employees after fulfilling the first need strives for ‘safety’ need. In this level, an employee working in an organisation look for safe environment where there is job security and freedom from all kinds of threats. The H & M employees were secured from their job and were working in less hazardous atmosphere. The safety need was also not secured in Watsons as they were not satisfied of their job and there was also threat from working environment (Maslow, 2000). The third level of need hierarchy is social need. The employees of H & M possessed belongingness and togetherness in the organisation. They worked in team and were provided continuous support from the higher level authority. On the other hand, there was no belongingness among the employees and managers in Watsons; as a result the third need also remain unsatisfied. After satisfying the social need, employees strive for fulfilling the esteem need. The employees of H & M were assigned important projects and everyone got a chance to show one’s skill and knowledge. This made the employees feel valued in the workplace. On the other hand, there was no chance to show efficiency in Watsons as the skills of the employees were not valued properly. The last satisfying need is self actualization need. H & M’s employees could make achievement and innovation from the projects they were assigned. The employees of Watsons were not able to make achievement due to less scope in the organisation (Maslow, 2000). Contrast The employees of Watsons were less motivated in the workplace as the hiring of the candidates was performed through internal agenda. The efficient candidates did not get a chance for higher appraisal and the inefficient candidates were rewarded through internal process. As a result, the employees’ morale had gone down and became completely de-motivated. The employees were not interested to take an initiative to work in other departments as they would not be paid incentives or extra compensations for extra work (Schyns & Hansbrough, 2010). The employees of H & M Consulting were highly motivated from the task, culture of the organisation, compensation and work schedule. The managers have the responsibility to motivate the employees in their workplace and provide best facilities to them. 4.0 Organisational Culture, Human Resources and Technology Organisational Culture Critical Comment Organisational culture in an organisation is an old concept. An integrated organisational culture removes the sense of uncertainty and facilitates to maintain operating capacity of business. Organisational culture may intend to describe the entire activity of organisation (Reiman & Oedewald, 2002). Theories The culture of organisation can be observed in various levels of organisation. According to Schein, organisational culture is considered as the learned consequences of group experiences.There are various stages of organisational culture in an organisation and this culture may be reflected in the workplace (Reiman & Oedewald, 2002). Contrast The organisational culture of Watsons Engine Components was not favourable for the employees working there because it lacked feeling of oneness. The employees worked for their own benefits and never provided importance to the interests of others. As a result, a few employees remained over burdened and others were left with less work (Williams & Laker, n.d.). On the other hand, the culture of H & M Consulting was considered to be favourable for the employees. The employees were hired from different countries with an intention that each of the employees respects each other cultures. Due to the encouraging organisational culture in their workplace, the employees provided full dedication in the projects and got it done in a specific schedule. In this organisation, there was a feeling of oneness among the employees (Hartman & Hayden, 2005). Human Resource Comment Critically Human resource department of an organisation plays a significant role in managing the resources of an organisation. There are various roles of human resource department starting from hiring of the candidate to the dismissal. Proper functioning of HR brings positive impact on the employees as well as on the organisation. Theories There are various theories of human resource and among them the theory of Nepotism has been discussed. Nepotism theory means manager instead of hiring a desired candidate recruits his or her incapable relatives, who ultimately bring failure to the organisation. Nepotism in few situations results in failure of a company creating inefficiencies as well as ineffectiveness of a business operation. During the recruitment process, all unskilful candidates got hired which had an impact on the quality of the organisation (American Business.org, n.d.). Contrast In Watsons Engine Components, ‘nepotism’ system was followed. They recruited candidates who were their relatives. As a result, inequality was created in the minds of other employees. Due to nepotism, there was an impact on the morale of the people and employee dissatisfaction was raised (Williams & Laker, n.d.). The human resource department of H & M Consulting is much effective because starting from the recruitment up to the dismissal the employees are provided entire facilities in order to work effectively in the organisation. The existing positive culture with effective human resource department in the organisation assists the employees to make their own development which would lead to the growth of both organisation as well as employees (Hartman & Hayden, 2005). Technology Critical Comment In present scenario of organisation, technological development is more essential as it is related to their business operation. The more advanced the technology the more will be the efficiency of work. Theories The technological improvement in an organisation covers entire process from “recruit to retire” functions. The adoption of technology in the organisation has facilitated to place service centres in worldwide basis as well as outsourcing of HR procedures. The technology also tends to increase productivity and improve the value of the company (Hexaware, n.d.). Contrast Watsons was not at all organised and suffered from various issues in their operational development. Their technology was not updated. H & M Consulting was highly technological based and used all high tech system in their operation. The organisation utilised information technology system for co-ordinating the task and handling multiple operations of business. 5.0 Conclusion (Observations and Recommendations) After elaborately analysing the report, it can be cited that both the organisations, i.e. Watsons Engine Components and H & M Consulting vary considerably on different attributes. In the first part of organisational structure and design, Watsons had hierarchical structure and H & M had network structure. The employees in Watsons were totally de-motivated and had lack of morale support. In the H & M Consulting, the employees were highly motivated from their work culture, responsibilities and had strong support from the management. The leadership and management style at Watsons was not efficient enough and thus the employees were less interested towards work. Furthermore, teamwork did not exist among the employees. Thus, the employees need to develop their efficiency, skill and technology while managing the organisation and also gain success in the competitive business market. H & M Consulting provided extra facilities to their employees in order to satisfy them and make them skilled in their operations related to multi tasking. 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