Organisational structures and cultures

Organisational structures and culturesIntroductionCase studyThis case study is about Mr metalworkers eating house. Mr Smith is a foreigner who has lived in the UK for umpteen years. His family in Africa operates a chain of restaurants across the continent and he is thitherfore familiar with this kind of agate line. At present the Smith Restaurant has a central location in London, close to many attractions and is easily accessible by public transport. His restaurant is a sm all(prenominal) family business he is the founder, owner and also the Managing Director. Although he has dickens Assistant Managers and three Supervisors, he has a direct control over precaution and operational issues such as hiring of ply, marketing, sales promotion, accounting and finance department. The restaurant has fifty employees in the main made up of international students who work part term. These students atomic number 18 attracted by the flexible working conditions that Mr Smith offers. This allows them to work part time during term time and full time during vacation.Recently the restaurant has seen a tough increase in its customers due to the popularity of its European and International cuisines. These factors have convinced Mr Smith of the wisdom of opening similar restaurants throughout the UK. Mr Smith is the one who makes all decisions and he has a direct control over vigilance and former(a) operational issues.The current issue at the restaurant is that Mr Smith is reluctant to recruit new staff and to cope with the increased activity in the restaurant he has cut down staff lunch time. Some staff felt that these changes should non have been introduced without their consent. When one employee complained about the situation, he was sacked. The rest of the employees be cheerless but they are afraid to voice their concerns for fear of loosing their jobs. According to Mr Smith, he pays his employees very well and therefore they bequeath be happy with his decis ions his decisions are non for debate jitneys should make the decisions and subordinates moldiness obey. He does not believe in consulting staff when he has to make important decisions.As a result, a signature of helplessness, alienation, and fear have developed amongst staff. The recent changes in employees working conditions have increased the levels of absenteeism and lateness. Mr Smith is now very concerned that if such trends continue, the restaurant may not be able to cope with the increased customer demand.Being one of the longest serving employees, Mr Smith asked me to consider the above issues and advise him in light of the expansion and recent developments of the business. My task is to advise him on the followings within the chain of new restaurants.Organisational structures and culturesApproaches to perplexity and leading stylesMotivational theories and their application mathematical mathematical group conduct, team up upwork and engineering science problem 1O rganisational structures and cultures within the UK restaurantsOrganisational structure creates a framework of order and command through which the activities of the organisation mountain be planned, organised, controlled, and directed towards the goals and objectives of the organisation. The structure defines tasks and responsibilities, roles, relationships and communication. in spite of appearance the UK, about restaurants have entrepreneurial, functional and geographical structures.Entrepreneurial Structure This structure is appropriate for small owner managed companies, for object lessons a small restaurant, a small-scale industrial unit, or a small proprietary concern.Functional Structure This is the most commonly used basis for groupinging activities agree to specialisation that is organising the business according to what to each one department does. Specialised skills and delegation of authority to managers are needed to look after antithetical functional areas.Geograp hical structure Activities are separate according to location. Different services are returnd by geographical boundaries according to particular needs and demands, the convenience of consumers, or for ease of administration. expediencys and disadvantages of organisational structuresThe UK restaurants may have hierarchical, gangly or straighta instruction structureHierarchical structure Refers to Authority the reclaim to exercise powers such as hiring and firing or buying and selling on behalf of the organisation Responsibility the allocation of tasks to individuals and groups within the organisation Accountability the need for individuals to explain and justify any failure to fulfil their responsibilities to their superiors in the hierarchy rangy and flat hierarchical structuresIn the tall structure there are narrower spans of control and more levels of command that is many managerial levels and fewer staff.In the flat structure there are broader spans of control and few level s of command that is few managerial levels and many staff. For example, the McDonalds restaurants all have a flat structure. The manager in each place of business controls the other assistants and employees. He takes all the decisions and he is in charge of the main functions like, R D, marketing, finance and human resources and the other staff do the selling.Advantages of tall and flat structuresOrganisational culturesCharles Handy defined it as The way things are done around hereEvery business is made up of different cultures, and the cultures that are present within the business depend on the management styles and organisational structures that are used. Handys four types of cultures arePower culture Best meet for small entrepreneurial organisations and relies on trust, empathy and personal communication for its effectiveness.Role culture Emphasizes on power and position within the organisation. This type of culture applies when organisations are big and inflexible.Task cultur e Job-oriented or project-oriented. This works well in a matrix organisation structure.Person culture Works around educated individuals. Examples are groups of barristers, architects, doctors or consultants.Looking at Handys four main types of organisation cultures it can be seen that most of the UK restaurants adopt the power culture.Organisational structure and culture of Mr Smiths restaurant later on analysing Mr Smiths case study and the latest issues, it is clear that his restaurant is adopting an entrepreneurial and hierarchical structure, and a power culture since it is a family owned business where there is profligate reliance is on the owner-manager Mr Smith has authority, righteousness and accountability within the organisation. The distribution of tasks, the definition of authority and responsibility, and the relationship between members of the organisation are established on a personal and informal basis. Therefore I am convinced that the management style, organisation al structure and culture are influencing employees behaviour within organisation.However, with Mr Smiths plan to expand and develop new restaurants across the UK, there is need for a formal organisational structure and culture, which has to be carefully designed, so as to avoid conflict and throw out the allow foring participation of staff for effective organisational performance. I believe that Mr Smith business should have a flat structured along functional lines with study areas including, Sales and Marketing, Human Resources, Accounting and Finance, and Purchasing Departments. With a flat structure the business will have A wide span of control promote delegation and need through job enrichment. Lower management overhead costs. Better communications as horizontal and lateral communication is encouraged. Real and important promotions. Closer contact between top management and lower levelsFactors that may influence individual behaviour of Mr Smiths employeesThe individual The individual is a central feature film of organisational behaviour. When the needs of the individual and the demands of the organisation are incompatible, this can result in frustration and conflict. Then it the work of the management to integrate the individual and the organisation and to provide a working environment where individuals needs is slaked as well as organisation goals are achieved.The group Group exists in all organisations and are essential to their working and performance. People in groups influence each other in many ways and groups may develop their own hierarchies and leaders. Group pressures can have a major influence over the behaviour and performance of individual members.The organisation Individual behaviour is affected by patterns of organisation structure, technology, styles of leadership and systems of management through which organisational sufficeors are planned, directed and controlled. Therefore, the focus of attention is on the impact of organisation structure and design, and patterns of management, on the behaviour of people within the organisation.TASK 2How organisational system underpins principles and practices of management, how this would impact on the new restaurants?The study of management possible action (also termed management thinking) and its application in organisations brings changes in behaviour. It helps to understand the principles underlying the process on management. It helps to understand the interrelationship between management system, principles and practices of management, and behaviour in organisations. Managers learned about how they should behave. This will influence their attitudes towards management practice. The different cuddlees to management theory are Classical approach scientific management Bureaucracy Human relations approach Systems approach and Contingency approach.These various approaches underpin the common principles of management that organisations should practice in their business, which mean they are based on views of organisations, their declare oneself and responsibilities, structure, division of work, hierarchy of management, technical requirements, rules and regulations and behaviour.Fayol 14 Principles of Management1. Division of work specialty increases output as employees become more efficient.2. Authority Gives managers the right to give orders.3. Discipline Employees must conform to admire the rules that govern the organisation and the use of penalties for pause the rules.4. Unity of command Only one superior should give orders to employees.5. Unity of direction Organisational activities having the similar objective should be directed by one manager using one plan.6. Subordination of individual interests to general interest The organisation interest should dominate employees or group interests.7. Remuneration A fair pursue for workers and their services.8. Centralisation The degree to which subordinates participate in decision-making.9. Scalar c hain Communications should follow this chain.10. Order. People and materials should be in the right place at the right time.11. Equity. Managers should be kind and fair to their subordinates.12. Stability of tenure. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to surfeit vacancies.13. Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort.14. Esprit de corps. Promoting team spirit will build harmony and unity within the organisation. tip Mr Smith should follow these principles of management. Managers will have to perform these five functions (by H Fayol) Plan and forecast organise command coordinate and control.The different approaches to management theoryClassical approach Emphasis on purpose Formal structure Division of work Hierarchy of management Technical requirements Common principles of organisation.Scientific management and Bureaucracy a re the two sub-grouping of the undefiled approach.Scientific management F .W Taylor (1911) Scientific selection and training of workers Development of a true science for each element of an individuals work Co-operation with the employees to ensure work is done as set Division of work and responsibility between management and the employees Improve production power through work studies, tools, economic incentives.Bureaucracy Max Weber (1947) Formal hierarchical structure Organisation by functional specialty Rules and regulation Impersonality involvement based on technical qualifications.Human relations approach Elton Mayo and the Hawthorne Studies (1933) discovered that the informal organisation, social norms, acceptance, and sentiments of the group determined individual work behaviour. Maslow, McGregor, Herzberg, and many others stressed the importance of social relations in organisations, understanding workers and managers as human beings with social and emotional needs.Systems approach Organisations are open systems that constantly act with the external environment Inputs (resources and information) transformation process outputs (products, services, information) feedbackContingency approach Contingency theory does not identify or recommend any particular approach to organisation and management. Appropriate management approach depends on situational factors faced by an organisation. proposition After comparing the above managerial approaches I believe that the classical approach will best suit Mr Smith restaurants. The classical approach centres on understanding the purpose of an organisation and then examining its structure. They play emphasis on the planning of work, technical requirements, principal of management and behaviour. Attention is given to the division of work, duties, responsibilities, maintaining specialisation and co-ordination, hierarchy of management and formal organisational relationships.TASK 3Different leadership styles and their eff ectivenessDefinition Leadership in an organisation is to lead employees to work in a given direction to achieve its goals and objectives.The three styles of leadership areAutocratic leadership All authority is centred on the leader and decisions are enforced by means of rewards and the fear of punishment. Communication is one-way, from the leader to the followers.Advantage expeditious decision-making.Disadvantage Its effect upon group morale creates conflict.Democratic leadership In contrast, democratic takes into account the suggestions of the members and of the leader. It is a human relations approach, in which all members of the group can participate and contribute to improve the quality of the final decision. Advantages Increased morale and support for better decisions through divided ideas among group members.Disadvantages Slower decision-making and thin out accountability for decisions.Laissez-faire leadership The leader exercises very little control over group members. A m ember is given a goal and mostly left alone to decide how to achieve it. The leader functions mainly as a group member, providing only as ofttimes advice and direction as is requested.Advantage Opportunity for individual development offered to group members. All persons are given the chance to express themselves and to function relatively independently.Disadvantage Lack of group ropiness and unity toward organisational objectives. Without a leader, the group may have little direction and lack of control. The result can be inefficiency or even worse, chaos.Suggestion Mr Smith is applying an authoritative leadership in his first restaurant because his business is small. But now that he wants to expand his business he has to adopt a different style of leadership. I would suggest that he has to adopt the democratic leadership within his new restaurant. This is because the democratic style is a human relation approach in which all staff participates and contributes in the decision-maki ng. This will prevent conflict between staff.Different motivational theories and their applicationDefinition Motivation can be described as the direction and persistence of action. It is concerned with why people choose a particular course of action in preference to others. The purpose of motivational theories is to predict behaviour. The difference theories of motivation areThe hierarchy of needs are shown as a series of steps in the form of a pyramid it implies a thinning out needs as people progress up the hierarchy. Based on Maslows theory, once the lower-level needs have been satisfied (physiological and safety needs) people advanced up the hierarchy. Therefore to provide motivation for a change in behaviour, the manager must direct attention to the future(a) level of needs (love or social needs) that seek satisfaction.McGregor Theory X YTheory X assumptions People inherently dislike work. People must be supervised to do work to achieve objectives. People prefer to be direct ed.Theory Y assumptions-People view work as being as natural as play and rest.-People will exercise self-direction and self-control towards achieving objectives they are committed to.-People learn to accept and seek responsibility.Herzbergs Two-factor theoryMcClelland theory collect for achievement Personal responsibilityFeedbackModerate riskNeed for power InfluenceCompetitiveNeed for affiliation Acceptance and friendshipCooperativeSuggestion Mr Smith does not delegate does not give employees responsibilities employees are not considered part of the group they feel insecure in the employment they cannot voice their opinions he imposes his rules and regulations on employees. In addition he has reduced employees lunch-time. Here Mr Smith is using McGregors Theory X employees are unhappy and de-motivated to work as their lunch-time has been reduced but their wages have not increased. Therefore, since he wants to expand his business throughout UK, I will recommend the Maslows hierarchy of needs theory to Mr Smith. Managers will have to provide motivation for a change in behaviour by satisfying the lower-level needs so that the employees basic salary, safe working conditions (need to deposit alive, have food, shelter) and job security, fringe benefits, protection against unemployment, illness are satisfied. This will encourage the willing participation of employees for effective organisational performance.The relationship between motivational theory and the practice of managementThe purpose of motivational theories is to predict behaviour and behaviour of people in organisations depends on practices of management. If managers practise Fayols 14 principles of management, then employees at all levels are motivated to work. People generally reply in the manner in which they are treated. Therefore, to control human behaviour a heavy responsibility is placed on managers and the activity of management, where attention must also be given to appropriate systems of motiva tion, job satisfaction and rewards.Accordingly, Mr Smith must understand how nigh(a) management practices will motivate staff to work. Managers should plan and forecast, organise, command, coordinate, and control appropriately in an attempt to satisfy employees needs so that they are motivated to work. This will create an organisational climate in which employees can work willingly and effectively to achieve the goals of the organisation. Managers should get the best performance from employees to attract more customers.Managers should apply this insurance The needs, wants and rights of employees to be treated fairly and with dignity.TASK 4Nature of groups and group behaviour within organisationsA group comprises two or more individuals who interact in the collective pursuit of a common goal. They share values and goals, are involved in regular activities unneurotic, and identify themselves as members of the group and are identified as such by others. (From lecture notes AJ).Anoth er useful way of defining group is a collection of people who share most, if not all, of the following characteristicsA definable membershipGroup consciousnessA sense of shared purposeInterdependenceInteractionAbility to act in a unitary manner.Formal groups (official groups) Created to carry out specific tasks set up by the organisation to complete assigned tasks.Formal groups may be divided into two categories1. Functional groups Consist of varying size of work units, with a manager and subordinates who are responsible for a range of duties and functions within the organisation, for example the finance department, the salaries section and the revenues section.2. Task groups Created for the dispatch of specific business or operations, such as a project team, management team or co-ordinating committee.cozy groups (unofficial groups) Created by the individual members for the purpose of sharing a common interest.Importance of informal groupsThe spread of information through informal n etworks the grapevine is often much faster and more influential than through formal groups.There is the potential for conflict between roles held in formal and informal groups particularly in respect of leadership, where the informal leader may not be the same person as the formal leader.Two informal groups1. Interest groups develop around the shared pursuit of a specific goal by certain employees, which may or may not be related to the organisation.2. Friendship groups Individuals joining together for various social activitiesThe factors influencing Group Behaviour Cole (1996)Size of the groupLeadership and management styleGroup cohesivenessMotivation of group membersNorms of groupsGroup/team rolesThe work environmentThe group taskFactors leading to effective teamwork within the new businessPeters and Waterman defines five factors for effective teamwork1. The numbers should be small each member will then represent the interest of his or her department.2. The team should be of lim ited duration Exist only to part a particular task.3. Membership should be voluntary.4. Communication should be informal and unstructured.5. It should be action-oriented. The team should finish with a plan for action.The influences that threaten success of teamworkThe team does not work around the unreliable people.A smaller group of people does most of the work and a larger group pretends to help.Sometimes team members do not work well together and may work against each other. This may result dysfunctional teams, caused by Lack of trust is the most common problem afflicting teams Lack of team cohesiveness Lack of a clearly defined purposeImpact of technology on team mental processTechnology Technologies such as e-mail, mobile phones, blackberry, groupware and computers can improve and in some cases delay team functioning. To be able to function effectively, teams must be kept up-to-date with knowledge as technology changes.Communication Successful teams authorise successfully b y email, mobile phone, phone technologies such as blackberry and 3G data cards and 3GB USB dongles, groupware and personal computers.Change Successful teams can successfully bring-up change. Teams will become less effective and efficient if they do not respond to changing internal and external factors. In contrast, responsive teams are more effective, efficient and, are able to rise to the challenges of the modern business world.Networks and virtual teams In the modern connected world, it is easier for teams to communicate and network. It is possible to create virtual teams which never (or rarely) meet in physical locations and use a range of web tools to communicate and collaborate.Global and cross-cultural teamsTask 5Strategies for the restaurants stakeholders needsEmployees Mr has to adopt HR practices to ensure that the organisation is able to achieve success through people. Staffing the organisation fit numbers of the right people in the right place, at the right time, and at the right cost for the organisation. Reward and recognition Creating structures that maximise recruitment, retention and motivation obtaining the best performance from the people available. Performance improvement throughout the organisation, for individual, team and organisational effectiveness Managing behaviour ensuring that individuals are encouraged to behave in a way that allows and fosters better working relationships.CustomersMr Smith and his area managers should monitor the changing requirements and expectations of its customers, and the quality of service they require.Conclusion and recommendationsWith Mr Smiths plan to expand and develop new restaurants across the UK, there is need for a formal organisational structure and culture, which has to be carefully designed to encourage the willing participation of staff for effective organisational performance.Mr Smith should follow the principles of management managers will have to perform these five functions (by H Fayol) pl an and forecast organise command coordinate and control.The classical approach will suit his business as it plays emphasis on the planning of work, technical requirements, principle of management and behaviour.Alongside he has to adopt the democratic leadership in which all members of the group can participate and contribute to improve the quality of the final decision.Area managers will have to provide motivation for a change in behaviour by satisfying the employees needs through rewards.ReferenceWebsites1. http//ezinearticles.com/?id=12698122. http//choo.fis.utoronto.ca/FIS/courses/LIS1230/LIS1230sharma/history6.htm (Maslows hierarchy of needs)3. http//www.hnc-business.co.uk/unit3.htmlModule Tutor Lecture notes and emailsDhlamini S., 2009. Organisations and Behaviour (unit 3) H1, HND in Business. London Guildhall CollegeBibliographyBookMullins L J ., 2000. Essentials of Organisational Behaviour. Essex FT/Prentice Hall