The Organizational Structure & Culture in Moray Consultancy - Case Study Example

007” BUSINESS ANALYSIS REPORT The Organizational Structure & Culture in Moray Consultancy Type your name [Pick the date] Table of Contents 1. Introduction 3 2. Discussion 3 2.1. Organizational Culture in Moray Consultancy 4 2.1.1. Artifacts 4 2.1.2. Values 5 2.1.3. Assumptions 6 2.2. Organizational Structure in Moral Consultancy 7 2.2.1. Specialization 7 2.2.2. Flat & Hierarchy 7 2.2.3. Centralization & Decentralization 8 2.2.4. Integration 8 2.2.5. Chain of Command 8 2.2.6. Departmentalization 9 2.3. Impact of high employee turnover 9 2.3.1. Increasing Employee Turnover 9 2.3.2. Factors contribution to high turnover 10 2.3.3. Impact of new methods for employee satisfaction 10 3. Recommendations 10 4. Conclusion 11 5. References 13 1. Introduction The main objective of the report is to analyze the organizational culture and organizational structure which is present in Moray Consultancy and based on it analyze the manner in which employee turnover is having an impact on the business. The report begins by analyzing the manner in which organizational culture which includes different aspects like artifacts, values and assumptions are being analyzed by gathering relevant information from the case of Moray Consultancy. The report then examines the organizational structure which is present in Moray Consultancy and the manner in which it is undergoing changes and the impact it is bound to create on the overall working style. This is followed by a discussion which analyzes the manner in which employee turnover has impacted the business functioning of Moray Consultancy and the different reasons which has led towards it, and strategies which when implemented would have helped to reduce the impact to a large extent. Finally, the paper provides useful inputs and recommendations based on which Moray Consultancy will be able to reduce the turnover of employees so that better services can be delivered to the customers and will act as a corner stone through which overall productivity for the organization will be increased in the future. 2. Discussion This aspect present the entire discussion based on organizational culture, structure and employee turnover so that recommendations for the future can be provided. 2.1. Organizational Culture in Moray Consultancy Different authors have provided different definition for organizational culture but one of the most appropriate is that organizational culture is the values, beliefs and assumptions which the organization demonstrate when the carry out the different activities which includes interaction with employees and solving the problems that is being faced by the organization (Hicks and Gullet, 2001). The report examines the organizational culture for Moray Consultancy based on the following three traits and characteristics 2.1.1. Artifacts This aspect of organizational is one of the most observable and important and includes different elements which helps to shape the organizational culture and is as Signs & Symbols: The small team members understood the different signs and symbols which were passed on to each partner so that they are able to understand the manner in which different aspects will help to render better services (Kerzner, 2004). Rituals: The employees at Moray Consultancy shared their experiences and learnings’ with each other so that they could understand the manner in which better services could be provided. Sharing information also provided an opportunity through which different ideas to carry out the business were identified and was able to collaborate all the learning which will help to ensure better methods through which better decisions as taken. Slowly with the expansion of the business and increasing employees the culture witnessed changes and the process of sharing information was lost and people became confined within their group. 2.1.2. Values This aspect helps to bring forward the manner in which organizational culture helps the employee to work with each other so that the objectives can be attained Team Based Efforts: The entire employees in Moray Consultancy worked in small teams which focused on the goals and were not willing to share their experience and learning with other groups signifying differences between the employees and management and a lack of a proper environment where employees could act in a friendly manner (Zammuto and Krakower, 2001) Lack of delegation of Authority: Moray Consultancy highlighted a culture where the management was not willing to pass on additional roles and responsibilities to employees showing lack of trust in the skills of the employees which undermined the performance. The management was of the view that authority and decisions had to be taken by the top management and passed on to the lover levels (Mehrabian and Susan, 2007) Recruitment & Training: Moray Consultancy didn’t have a formal process through which employees were provided the required training which would help them to perform superior performance. The company aimed at hiring superior and based talent in the field of consultancy but didn’t provide any training and gave authority in the decision making process. Promotion: The culture at Moray Consultancy gave little importance to promotion or increased pay or incentives which demoralized the employees and had an impact on their performance (Lazonick, 2010). Further, the culture was such that the employees didn’t got the required gaps to be worked on and thereby resulted in looking for different job and increased the turnover rates for employee Ownership of Success & Responsibility of Failure: Moray Consultancy didn’t aim at developing the process through which the experiences were shared which thereby resulted in committing the same mistakes again and again (Oberlender, 2000). This hampered the overall culture as it created gaps and resulted in the same mistake which thereby had an impact on the overall decisions that were taken within the organization. Lack of authority: Moray Consultancy highlights a complete lack of authority being provided to the employees at the lower level which has thereby made it difficult to take decisions. This has impacted the morale of the employees and has made it difficult to carry out the operations in the desired manner. The impact has been so strong that employee turnover has increased and the overall manner in which services were carried out has been affected. 2.1.3. Assumptions This aspect highlights the different assumptions based on which the organizational beliefs and process of carrying out activities can be greatly achieved and will help to maximize the overall effectiveness (Whitley, 2003). Angus & Hamish believed that small teams can perform better but require ensuring that authority remains at the highest level and decisions are made by the top management and passed down. 2.2. Organizational Structure in Moral Consultancy This aspect will help to present the organizational structure which is present in Moray Consultancy and will help to highlight the manner in which the performance gets impacted due to organizational structure 2.2.1. Specialization Specialization refers to the special knowledge and skills which is required to carry out the different functions in the most effective manner. This has been achieved both through horizontal and vertical differentiation (Gibson, Ivancevich and Donnelly, 2009). Horizontal differentiation is the employees at different levels which consist of specialized people having the required knowledge in the field of consultancy which will ensure superior performance. This has management at the top level followed by executives and lower level employees. Vertical differentiation in the organizational structure refers at having small teams where each member has the same roles and responsibility and carries out their functions in a similar manner. This helps to ensure better cooperation and coordination between the departments and provides the required interface through which better exchange of information and ideas becomes possible. 2.2.2. Flat & Hierarchy Moray Consultancy had a flat decision making levels where the executives didn’t have higher position ensuring quicker decisions and better execution of the different responsibilities. Slowly with increasing competition the business followed a hierarchical form of organizational structure leading to authority responsibility relationship and impacting the overall process of decision making and carrying out the different roles within the organization (Engleberg & Wynn, 2002). 2.2.3. Centralization & Decentralization Moray Consultancy has looked at having a centralized form of hierarchical structure where the decisions are taken at the central level by the top executives and passed on the lower level employees (Akpan and Chizea, 2002). Not following a process of decentralization has impacted the performance of Moray Consultancy and has created problems in decision making and is an aspect which requires special emphasis. Further, Moray Consultancy uses the centralized approach because all the decisions are taken by the owners and no powers is passed to others 2.2.4. Integration Integration aims at improving coordination between the team members by developing strategies which is aimed at attaining the objective (Acvedo, 2012). The process of integration has ensured that Moray Consultancy looks to work together as a group through there still exist some differences which have increased the complexities as the employees within the organization don’t aim at sharing the different information and experience among the other groups. 2.2.5. Chain of Command The chain highlights the authority responsibility relationship by highlighting the relationship with regard to sharing of different responsibility and reporting pattern within the organization (Akpan and Chizea, 2002). Moray Consultancy had a flat level of command where people just had immediate executives but with the growth in the business the number of layers has expanded. This has made the employees report to their superiors and then to the executives and finally the owner of the company. 2.2.6. Departmentalization Moray Consultancy hasn’t looked at different departmentalization but instead have focused on smaller groups which has thereby impacted the overall performance and made the employees to be unhappy with the job. 2.3. Impact of high employee turnover This section looks at examining the manner in increasing employee turnover had affected the business of Moray Consultancy and the deeper impacts it created due to different reasons 2.3.1. Increasing Employee Turnover The growth in the employee turnover had an impact on the performance of Moray Consultancy as employees started to leave the job. These were employees who were not satisfied with the job and were experienced and had the required knowledge to perform in a better manner. In addition to it employees who left the job started their own consultancy firm which further increased the degree of competition and also captured a large chunk of the already established clients that Moray Consultancy had (Alexander, Page & Wentling, 2003). This affected the future proposal as finding the required workforce who was willing to work with the organization became difficult. 2.3.2. Factors contribution to high turnover There were many factors that give rise to high employee turnover in Moray Consultancy. It was mostly the lack of proper training, incentives, promotions, trust, lack of decision making powers to the employees, long decision making hierarchy which all together led towards creating a scenario which affected the morale of the employees. This led towards increase dissatisfaction and had an impact on the employee performance (Cragan, Wright & Kasch, 2008). Moray Consultancy was not able to grow and increase their business presence in other parts of the world and created a situation where contingency measures were required to be developed. 2.3.3. Impact of new methods for employee satisfaction Moray Consultancy highlights a situation where trust among the employees was low and requires new method through which satisfaction level of the employees can be increased. This has to be matched by the development of new strategies which are aimed at maximizing the satisfaction of the employees so that they are more committed and are able to perform on the desired platform (Michael, Czinkota, Ronkainen, Catherine Sutton-Brady, Tim Beal, 2013). 3. Recommendations The high employee turnover has affected the business potential for Moray Consultancy but Moray Consultancy should not take it as a method through which they are not able to generate positive returns but instead should consider it as an opportunity through which they will be able to reduce the gaps which exist and will be able to develop the required fundamentals through which better reforms will be generated. This will thereby aim at improving the overall working style and will develop a culture where the organization is able to work in a coordinated manner looking for a long term goals. Moray Consultancy has to understand that they have core competency in providing consultancy services and need to develop the required fundamentals through which better governance will be ensured and the business will be able to increase the client base. The reason for the success of Moray Consultancy is due to the manner in which they were able to use the different resources and ensure maximum satisfaction for the clients Finally, Moray Consultancy has to further focus on better incentives and promotions for the employees so that they are better satisfied and are able to motivate the workforce towards being able to deliver better standards and will thereby help to maximize the overall satisfaction and provide productivity for the organization. 4. Conclusion Moray Consultancy has performed efficiently and has developed the required process through which they were able to perform better but due to lack of proper methods which were aimed at improving incentives and training methods. This will help to bring the required changes through which they are able to bring transformation and will require proper development of strategies through which overall effectiveness can be maintained. Looking at ways to improve the overall condition will ensure that the business is able to gain effectiveness and will be able to transform the business through which more clients will be attracted and will help to bring the required transformation through which business will be able to perform better and bring the required development which will help the business to grow. Moray Consultancy has to further look at developing ways through which they are able to develop ways which will ensure that the business is able to retain the employees and bring about the required transformation which will help to increase the overall effectiveness in the working style. 5. References Akpan, E.O.P. and Chizea, E.F. (2002). Project Management: Theory and Practice FUTO Press Ltd. Owerri Nigeria Alexander, A., Page, V. & Wentling, T. (2003). Motivation & barriers to participation in virtual knowledge sharing. 7 (1), 45-58 Acvedo, L. (2012). Factors that Affect Organizational Structure. Retrieved on May 26, 2013 from http://smallbusiness.chron.com/factors-affect-organizational-structure-3829.html Cragan, J. F., Wright, D. W. & Kasch, C. R. (2008). Communication in small groups: Theory, process, and skills. New York, NY: Cengage Learning. Engleberg, I. N. & Wynn, D. J. (2002). Working in groups: Communication principles and strategies. Sudbury, MA: Houghton Mifflin. Gibson J.L., Ivancevich J.M. and Donnelly J.R. (2009) Organizations, Behaviours, Structure and Processes. Third Edition Irwin-Dorsey Limited, Business Publications Inc, Dallas Texas Hicks, H.G. and Gullet, C.R. (2001). Management: Fourth Edition McGraw Hill International Book Company Kerzner, H. (2004). Project Management: A System Approach to Planning, Scheduling and Controlling 2nd Edition CBS Publishers and Distributors Lazonick, W. (2010). The Chandlerian Corporation and the Theory of Innovative Enterprise. Industrial and Corporate Change 1, 317‑349 Michael, R. Czinkota, IIkka A.Ronkainen, Catherine Sutton-Brady, Tim Beal. (2013). International Marketing, 2nd Edition Mehrabian, A. and Susan, R. (2007). Inference of attitudes from nonverbal communication in two channels, Journal of Consulting Psychology 31, 248-252 Oberlender, G.D. (2000). Project Management for Engineering and Construction. Second Edition. McGraw Hill Boston Whitley, R. (2003). The Institutional Structuring of Organizational Capabilities: the Role of Authority Sharing and Organizational Careers. Organization Studies 24, 667-695 Zammuto, R.E. and Krakower, G. (2001). Quantitative and Qualitative Studies on Organizational Culture. Research in Organizational Change and Development, 5 (3) 83 – 114 Read More