The Organizational Strategy and Structure of Jays Place Organic Restaurant - Case Study Example

Confusion between Sections of the Department] Business: Jay’s Place Organic Restaurant Product: Breakfast, Lunch and Dinner [Name] [Student Number] Word count: 1627 Abstract The organizational structure of any company is fundamental to its productivity and growth. It is therefore in order to ensure that the existing frameworks of organization do serve the purposes of the organization in a strategic manner while eliminating inherent problems in sections of the business. In the event that poor systems exist, various problems will arise and affect the business adversely. The issue of confusion is common in many organizations and should be dealt with appropriately by identifying the root causes and any other factors impacting on the same. Introduction The organizational strategy and structure of any organization determines the shape that the organization takes. The organizational structure refers to how the work teams are organized and also how the reporting relationships are organized (Sampson and Daft, 2012, p.287). As such, these organizational structures reveal a lot about the functions, culture and leadership of an organization and will determine the productivity and growth of any company. In many cases, the organizational structure can be one of the underlying problems ailing an organization. Indeed, too many levels of organizational hierarchy slows down decision making, acts as a common barrier to empowerment and usually breeds unaccountability and confusion within the organization (Lussier, 2003, p.29). In the case of Jay’s Place organic, the best course of action will be to identify all the problems resulting in failure to achieve set goals and review the tactics used in the company, while formulating solutions to deal with various problems such as confusion within various sections of the business. Definition of the issue There seems to be high levels of confusion between the various sections within the department as the employees seem really unsure of who should be doing what and to whom they should be reporting. An organization that has a strong but flexible organizational structure usually benefits from a properly defined hierarchy, good communication and the ability to give unified messages (Farazmand, 2003, p.344). Jay’s Place has well defined goals and tactics in place, but the confusion arises due to improper application of management principles. Confusion within the department results from lack of proper communication, new processes and ideas are not understood, employees’ responsibilities are unclear and the person to report to is undefined. This issue of confusion over responsibilities and reporting dynamics is related to a number of management functions (Luisser, 2003, p.73). The planning function in management involves the determination of goals and courses of action at any level and time (Sampson and Daft, 2012). As such, planning should be properly done so as to eliminate confusion and meet Jay’s place goals of increasing demand, improving productivity and laying out organized, regulated procedures regarding where stock is sourced. The organizing function controls the structure of the organization and manages people and required resources so as to achieve strategic goals. The daily operation of business are captured in this function and directly involves the designation of responsibilities and tasks to the employees and teams that have specific skills. At Jay’s Place, the tactics used such as increasing demand through TV and online advertising, need proper organization for the strategic goals to be achieved and eliminate confusion (Sampson and Daft, 2012, p.311). The function of staffing deals with the recruitment of personnel in an organization. This means the hiring of enough, right people to perform the responsibilities in the organization (Lynch, 1983, p.58). Staffing also incorporates performance appraisals, transfers, promotions and training. At jay’s Place, part of staffing involves getting scholars on board to promote health and environmental benefits of organic products. Advertisers promote the use of organic products. If staffing requirements are unmet, these tactics cannot be actualized. The function of leading involves getting people together so as to work in advancement of the company’s interests. These interests at Jay’s place include improving productivity and increasing demand while lowering production and consumption costs. All the heads in charge of various sections within Jay’s place must exercise this function properly to avoid confusion (Sampson and Daft, 2012). Finally, the function of controlling in management is important as it ensures that all functions in the organization are successfully operational towards meeting set goals (Sampson and Daft, 2012, p.299). It also involves putting in place performance standards that help in monitoring employees’ output. When any of the functions of management is not performed accordingly, the set tactics are not implemented and Jay’s Place goals are not met as confusion sets in. Analysis of the issue The issue of confusion touching on employees being unsure about what they should be doing falls squarely on the management functions of planning, staffing and controlling. In order for Jay’s Place to meet the set goals, the bar, kitchen and floor staff should have concise plans for achieving the goals (Sampson and Daft, 2012, p.315). This is an issue of common sense. According to the systems theory, different systems in an organization affect workers and the workers also affect the systems that are around them. This brings in the concept that staffing affects planning capabilities as well as the workers’ behavior and output (Aquinas, 2009, p.95). For instance, the managers may plan for a given responsibility or task, but if there lacks the staff with the exact skill to do that task, then confusion arises. If the waiters find that there are no products from the kitchen, then they can’t perform their duties. The floor manager, chief chef and bar manager should coordinate their staff to ensure all goals are met (Sampson and Daft, 2012). The issue of employees being unsure of what they should be doing can also be taken in the context of Theory X and Theory Y. The attitudes of employees affect an organization’s management (Sampson and Daft, 2012). Theory X sees employees as avoiding responsibility, lazy and hence needing control or coercion. In this case, the chief chef, bar manager and floor manager must watch their staffs to ensure company goals are met using prescribed tactics. In this case, any confusion seen might be self-induced by the employees due to their detrimental attitudes. On the other hand, Theory Y sees the employee as liking work, accepting responsibility and proactive (Sampson and Daft, 2012, p.302). In this case, the confusion arising from the department must be due to other causes such as poor planning. It is good that the head chef, floor manager and bar manager categorize their staff into X or Y before addressing this issue, as the problem might be purely employee related (Russ, 2011, p.829). When addressing the issue of confusion emanating from employees not knowing whom to report to, this falls under the organizing, planning and controlling functions. The client and the store manager should review the fundamental management skills of the head chef, floor manager and bar manager to see their suitability in controlling their staff. However, the Contingency Theory must be used in addressing this issue (Fisher, 1998, p.60). It follows that a manager should take action based on the most important aspects of current situations. As such, a cross-sectional team might need to report to more than one person or certain special tasks might require a temporary change as regards to whom the employees should report to. For instance, the waiters might need to report to the head chef when special orders are needed (Sampson and Daft, 2012). The floor manager, bar manager and head chef should liaise and come up with a plan to address such situations and hence eliminate the confusion. During planning phases, the store manager, head chef, bar manager and floor manager should plan tasks and make it clear who will perform what and when, as well as how various staff from the three sections will work together in a team. In any case, Fayol’s Principles of Management call for proper division of labor and job specialization. The Scientific Management Theory also requires the managers to address the efficiency of the workers. However, the chaos theory point out that change is constant (Sampson and Daft, 2012, p.311). As such, although some circumstances and events in an organization are controllable, others cannot be controlled. As organizations grow, they become more complex and susceptible events constantly increase. Therefore, the element of confusion in an organization cannot be completely eliminated nor can it be addressed from a purely managerial perspective (Buble et al., 2004, p.941). The client can thus call on the regional managing director to give advice on how other branches have dealt with the same issue. Environmental factors may also impact the issue of confusion in sections of the department. Firstly, the restaurant faces external competition from well established enterprises such as Woolworth and Coles who are adapting organic business practices. There are also other expanding organic businesses around. These threats cause the staff to work extra hard to appeal to the customers and confusion might ensue. Secondly, there is the increase in cost of organic farming which cause increase in cost of finished products. Confusion often ensues when the staff feels the responsibility of minimizing product cost by any means. Thirdly, there is customer preference, cost of advertisements and technological evolution which affect the organic business at Jay’s place in many ways. In a bid to ward off these challenges, confusion will usually ensue (Sampson and Daft, 2012). Recommendations Reduction of bureaucracy and creation of room for change. This will enable the staff to come up with new ideas, menus and implement them without fear of reprisals from management The chief chef, floor manager and bar manager to report to the store manager instead of the client. This will allow for quicker decision making without necessarily involving the owner who has other issues such as sourcing of funds. The chief chef, floor manager and bar manager in liaison with the store manager should clarify the responsibilities and duties of each of their staff and formulate a dynamic reporting structure cutting across sections. This will ensure elimination of confusion. A quality control team to be implemented from the office of the Managing Director. It will help in pointing out loopholes in all sections while inspecting processes, guiding employees and formulate feedback mechanisms so as to improve performance. The owner, all managers and staff should convene meetings to discuss how to deal with external factors affecting Jay’s Place organic business. References Aquinas, A. C.,(2009). Organization Structure and Decision: Applications and Challenges. NewDelhi: Excel Books India. Buble, M., Alfirevic, N., & Garaca, Z. (2004). CHAOS THEORY AND THE DYNAMICS OF ORGANIZATIONAL CHANGE: DETECTING 'CHAOTIC' STABILITY IN DYNAMIC SYSTEMS. Paper presented at the 939-952. Retrieved from http://search.proquest.com/docview/217775887?accountid=4504 Fisher, J. G. (1998). Contingency theory, management control systems and firm outcomes: Past results and future directions. Behavioral Research in Accounting, 10, 47-64. Retrieved from http://search.proquest.com/docview/1328062785?accountid=45049 Farazmand, A. (2003). Chaos and transformation theories: A theoretical analysis with implications for organization theory and public management. Public Organization Review, 3(4), 339-372. Retrieved from http://search.proquest.com/docview/207476620?accountid=45049 Lynch, H., (1983). Organizational Theory and Management. BocaRaton, FL: CRC Press. Lussier, R., (2003). Management Fundamentals: Concepts, Applications, Skill Development.Boston, MA: Cengage Learning. Russ, T. L. (2011). Theory X/Y assumptions as predictors of managers' propensity for participative decision making. Management Decision, 49(5), 823-836. doi: http://dx.doi.org/10.1108/00251741111130887 Sampson, D. and Daft, R.L. (2012) Fundamentals of Management. Melbourne: Cengage Learning Australia. Read More