Posted on

Organisational Structures And Cultures Within The Uk Commerce Essay

This instance survey is about Mr Smith ‘s eating house. Mr Smith is a alien who has lived in the UK for many old ages. His household in Africa operates a concatenation of eating houses across the continent and he is hence familiar with this sort of concern. At present the Smith Restaurant has a cardinal location in London, near to many attractive forces and is easy accessible by public conveyance. His eating house is a little household concern – he is the laminitis, proprietor and besides the Managing Director. Although he has two Assistant Directors and three Supervisors, he has a direct control over direction and operational issues such as hiring of staff, selling, gross revenues publicity, accounting and finance section. The eating house has fifty employees largely made up of international pupils who work portion clip. These pupils are attracted by the flexible on the job conditions that Mr Smith offers. This allows them to work portion clip during term clip and full clip during holiday.

Recently the eating house has seen a large addition in its clients due to the popularity of its European and International culinary arts. These factors have convinced Mr Smith of the wisdom of opening similar eating houses throughout the UK. Mr Smith is the 1 who makes all determinations and he has a direct control over direction and other operational issues.

The current issue at the eating house is that Mr Smith is loath to enroll new staff and to get by with the increased activity in the eating house he has reduced staff tiffin clip. Some staff felt that these alterations should non hold been introduced without their consent. When one employee complained about the state of affairs, he was sacked. The remainder of the employees are unhappy but they are afraid to voice their concerns for fright of fring their occupations. Harmonizing to Mr Smith, he pays his employees really good and hence they will be happy with his determinations ; his determinations are non for argument ; directors should do the determinations and subsidiaries must obey. He does non believe in confer withing staff when he has to do of import determinations.

As a consequence, a feeling of weakness, disaffection, and fright have developed amongst staff. The recent alterations in employees ‘ working conditions have increased the degrees of absenteeism and lateness. Mr Smith is now really concerned that if such tendencies continue, the eating house may non be able to get by with the increased client demand.

Bing one of the longest helping employees, Mr Smith asked me to see the above issues and rede him in visible radiation of the enlargement and recent developments of the concern. My undertaking is to rede him on the followerss within the concatenation of new eating houses.

Organizational constructions and civilizations ;

Approachs to direction and leading manners ;

Motivational theories and their application ;

Group behavior, teamwork and engineering

Organizational construction creates a model of order and bid through which the activities of the administration can be planned, organised, controlled, and directed towards the ends and aims of the administration. The construction defines undertakings and duties, functions, relationships and communicating.

Within the UK, most eating houses have entrepreneurial, functional and geographical constructions.

1. Entrepreneurial Structure: This construction is appropriate for little proprietor managed companies, for illustrations: a little eating house, a small-scale industrial unit, or a little proprietary concern.

2. Functional Structure: This is the most normally used footing for grouping activities harmonizing to specialization that is organizing the concern harmonizing to what each section does. Specialised accomplishments and deputation of authorization to directors are needed to look after different functional countries.

3. Geographic construction: Activities are grouped harmonizing to location. Different services are provided by geographical boundaries harmonizing to peculiar demands and demands, the convenience of consumers, or for easiness of disposal.

Advantages and disadvantages of organizational constructions

Organizational construction




Quick decision-making

Excessive trust on the owner-manager





Closed communicating could take to miss of focal point.

Departments can go immune to alter.

Coordination may take excessively long.

Gap between top and underside.


Serve local demands better.

Positive competition.

More effectual communicating between house and local clients.

Conflict between local and cardinal direction.

Duplicate of resources and maps.

The UK eating houses may hold hierarchal, tall or level construction

Hierarchical construction: Refers to

Authority: the right to exert powers such as hiring and fire or purchasing and merchandising on behalf of the administration

Duty: the allotment of undertakings to persons and groups within the administration

Accountability: the demand for persons to explicate and warrant any failure to carry through their duties to their higher-ups in the hierarchy

Tall and level hierarchal constructions:

In the tall construction there are narrower spans of control and more degrees of bid – that is many managerial degrees and fewer staff.

In the level construction there are broader spans of control and few degrees of bid – that is few managerial degrees and many staff. For illustration, the McDonald ‘s eating houses all have a level construction. The director in each topographic point of concern controls the other helpers and employees. He takes all the determinations and he is in charge of the chief maps like, R & A ; D, selling, finance and human resources and the other staff do the merchandising.

Advantages of tall and level constructions

Tall construction

Flat construction

Manager can anticipate rapid publicity.

With a little span of control, a director is able to give significant periods of clip to each subsidiary.

Closer contact between directors and junior workers

A broad span of control encourages deputation and motive through occupation enrichment

Lower direction operating expense costs

Horizontal and sidelong communicating is encouraged

Promotions are existent and meaningful

Closer contact between top direction and lower degrees

Tall construction

Narrow spans of control

Flat construction

Broad span of control

Organizational civilizations

Charles Handy defined it as: ‘The manner things are done around here ‘

Every concern is made up of different civilizations, and the civilizations that are present within the concern depend on the direction manners and organizational constructions that are used. Handy ‘s four types of civilizations are:

Power civilization: Best suited for little entrepreneurial administrations and relies on trust, empathy and personal communicating for its effectivity.

Role civilization: Emphasizes on power and place within the administration. This type of civilization applies when administrations are large and inflexible.

Task civilization: Job-oriented or project-oriented. This works good in a matrix administration construction.

Person civilization: Works about educated persons. Examples are groups of barristers, designers, physicians or advisers.

Looking at Handy ‘s four chief types of administration civilizations it can be seen that most of the UK eating houses follow the power civilization.

Organizational construction and civilization of Mr Smith ‘s eating house

After analyzing Mr Smith ‘s instance survey and the latest issues, it is clear that his eating house is following an entrepreneurial and hierarchal construction, and a power civilization since it is a household owned concern where there is inordinate trust is on the owner-manager ; Mr Smith has authorization, duty and answerability within the administration. The distribution of undertakings, the definition of authorization and duty, and the relationship between members of the administration are established on a personal and informal footing. Therefore I am convinced that the direction manner, organizational construction and civilization are act uponing employees ‘ behavior within administration.

However, with Mr Smith ‘s program to spread out and develop new eating houses across the UK, there is demand for a formal organizational construction and civilization, which has to be carefully designed, so as to avoid struggle and promote the willing engagement of staff for effectual organizational public presentation. I believe that Mr Smith concern should hold a level structured along functional lines with major countries including, Gross saless and Marketing, Human Resources, Accounting and Finance, and Buying Departments. With a level construction the concern will hold:

A broad span of control encouraging deputation and motive through occupation enrichment.

Lower direction operating expense costs.

Better communications as horizontal and sidelong communicating is encouraged.

Real and meaningful publicities.

Closer contact between top direction and lower degrees

Factors that may act upon single behavior of Mr Smith ‘s employees

The person: The person is a cardinal characteristic of organizational behavior. When the demands of the person and the demands of the administration are incompatible, this can ensue in defeat and struggle. Then it the work of the direction to incorporate the person and the administration and to supply a working environment where person ‘s demands is satisfied every bit good as administration ends are achieved.

The group: Group exists in all administrations and are indispensable to their working and public presentation. Peoples in groups influence each other in many ways and groups may develop their ain hierarchies and leaders. Group pressures can hold a major influence over the behavior and public presentation of single members.

The administration: Individual behavior is affected by forms of administration construction, engineering, manners of leading and systems of direction through which organizational processors are planned, directed and controlled. Therefore, the focal point of attending is on the impact of administration construction and design, and forms of direction, on the behavior of people within the administration.

Undertaking 2:

How organizational theory underpins rules and patterns of direction, how this would impact on the new eating houses?

The survey of direction theory ( besides termed direction thought ) and its application in administrations brings alterations in behavior. It helps to understand the rules underlying the procedure on direction. It helps to understand the interrelatedness between direction theory, rules and patterns of direction, and behavior in administrations. Directors learned about how they should act. This will act upon their attitudes towards direction pattern. The different attacks to direction theory are: Classical attack ; scientific direction ; Bureaucracy ; Human dealingss attack ; Systems attack ; and Contingency attack.

These assorted attacks underpin the common rules of direction that administrations should pattern in their concern, which mean they are based on positions of administrations, their intent and duties, construction, division of work, hierarchy of direction, proficient demands, regulations and ordinances and behavior.

Fayol 14 Principles of Management:

Division of work: Specialization increases end product as employees become more efficient.

Authority: Gives directors the right to give orders.

Discipline: Employees must conform to esteem the regulations that govern the administration and the usage of punishments for interrupting the regulations.

Integrity of bid: Merely one higher-up should give orders to employees.

Integrity of way: Organizational activities holding the similar aim should be directed by one director utilizing one program.

Subordination of single involvements to general involvement: The administration involvement should rule employees ‘ or group involvements.

Wage: A just pay for workers and their services.

Centralization: The grade to which subordinates participate in decision-making.

Scalar concatenation: Communicationss should follow this concatenation.

Order. Peoples and stuffs should be in the right topographic point at the right clip.

Equity. Directors should be sort and carnival to their subsidiaries.

Stability of term of office. High employee turnover is inefficient. Management should supply orderly forces planning and guarantee that replacings are available to make full vacancies.

Initiative. Employees who are allowed to arise and transport out programs will exercise high degrees of attempt.

Esprit de corps. Promoting squad spirit will construct harmoniousness and integrity within the administration.

Suggestion: Mr Smith should follow these rules of direction. Directors will hold to execute these five maps ( by H Fayol ) : Plan and prognosis ; organise ; bid ; co-ordinate ; and command.

The different attacks to direction theory

Classical attack:

Emphasis on intent ;

Formal construction ;

Division of work ;

Hierarchy of direction ;

Technical demands ;

Common rules of administration.

Scientific direction and Bureaucracy are the two sub-grouping of the classical attack.

Scientific direction – F.W Taylor ( 1911 ) :

Scientific choice and preparation of workers ;

Development of a true scientific discipline for each component of an person ‘s work ;

Co-operation with the employees to guarantee work is done as set ;

Division of work and duty between direction and the employees ;

Improve production efficiency through work surveies, tools, economic inducements.

Bureaucracy – Max Weber ( 1947 ) :

Formal hierarchal construction ;

Administration by functional forte ;

Rules and ordinance ;

Impersonality ;

Employment based on proficient makings.

Human dealingss attack:

Elton Mayo and the Hawthorne Studies ( 1933 ) discovered that the informal administration, societal norms, credence, and sentiments of the group determined single work behavior.

Maslow, McGregor, Herzberg, and many others stressed the importance of societal dealingss in administrations, understanding workers and directors as human existences with societal and emotional demands.

Systems attack: Administrations are unfastened systems that invariably interact with the external environment: Inputs ( resources and information ) transmutation procedure end products ( merchandises, services, information ) feedback

Contingency attack: Contingency theory does non place or urge any peculiar attack to administration and direction. Appropriate direction attack depends on situational factors faced by an administration.

Suggestion: After comparing the above managerial attacks I believe that the classical attack will outdo suit Mr Smith eating houses. The classical attack Centres on understanding the intent of an administration and so analyzing its construction. They play accent on the planning of work, proficient demands, principal of direction and behavior. Attention is given to the division of work, responsibilities, duties, keeping specialization and co-ordination, hierarchy of direction and formal organizational relationships.

Undertaking 3:

Different leading manners and their effectivity

Definition: Leadership in an administration is to take employees to work in a given way to accomplish its ends and aims.

The three manners of leading are:


Democratic Leadership

Autocratic Leadership

Laisser-faire Leadership

Autocratic leading: All authorization is centred on the leader and determinations are enforced by agencies of wagess and the fright of penalty. Communication is one-way, from the leader to the followings.

Advantage: Quick decision-making.

Disadvantage: Its consequence upon group morale ; creates struggle.

Democratic leading: In contrast, democratic takes into history the suggestions of the members and of the leader. It is a human dealingss attack, in which all members of the group can take part and lend to better the quality of the concluding determination. Advantages: Increased morale and support for better determinations through shared thoughts among group members.

Disadvantages: Slower decision-making and diluted answerability for determinations.

Individualistic leading: The leader exercises really small control over group members. A member is given a end and largely left entirely to make up one’s mind how to accomplish it. The leader maps chiefly as a group member, supplying merely every bit much advice and way as is requested.

Advantage: Opportunity for single development offered to group members. All individuals are given the opportunity to show themselves and to work comparatively independently.

Disadvantage: Lack of group coherence and integrity toward organizational aims. Without a leader, the group may hold small way and deficiency of control. The consequence can be inefficiency or even worse, pandemonium.

Suggestion: Mr Smith is using an important leading in his first eating house because his concern is little. But now that he wants to spread out his concern he has to follow a different manner of leading. I would propose that he has to follow the democratic leading within his new eating house. This is because the democratic manner is a human relation attack in which all staff participates and contributes in the decision-making. This will forestall struggle between staff.

Different motivational theories and their application

Definition: Motivation can be described as the way and continuity of action. It is concerned with why people choose a peculiar class of action in penchant to others. The intent of motivational theories is to foretell behavior. The difference theories of motive are:


Content Theory ( nonsubjective )

Procedure Theory ( subjective )





McGregor Theory X & A ; Y



Maslow ‘s hierarchy of demands

Challenging occupation ; accomplishment in work

Job rubric ; high position occupation

Friendship at work

Safe status at work

Pay ; pleasant working status

The hierarchy of demands are shown as a series of stairss in the signifier of a pyramid ; it implies a thinning out demands as people progress up the hierarchy. Based on Maslow ‘s theory, one time the lower-level demands have been satisfied ( physiological and safety demands ) people advanced up the hierarchy. Therefore to supply motive for a alteration in behavior, the director must direct attending to the following degree of demands ( love or societal demands ) that seek satisfaction.

McGregor – Theory X & A ; Y

Theory X premises:

– Peoples inherently dislike work.

– People must be supervised to make work to accomplish aims.

– People prefer to be directed.

Theory Y premises:

-People position work every bit being every bit natural as drama and remainder.

-People will exert autonomy and self-denial towards accomplishing aims they are committed to.

-People learn to accept and seek duty.

Herzberg ‘s Two-factor theory

Incentives – Intrinsic factors: Factors increase occupation satisfaction

Hygiene factors – Extrinsic factors: whose absence can make occupation dissatisfaction




Company policy

Work itself

Working conditions




Peer relationship



McClelland theory:

Need for accomplishment: Personal duty


Moderate hazard

Need for power: Influence


Need for association: Credence and friendly relationship


Suggestion: Mr Smith does non depute ; does non give employees duties ; employees are non considered portion of the group ; they feel insecure in the employment ; they can non voice their sentiments ; he imposes his regulations and ordinances on employees. In add-on he has reduced employees ‘ lunch-time. Here Mr Smith is utilizing McGregor ‘s Theory X ; employees are unhappy and de-motivated to work as their lunch-time has been reduced but their rewards have non increased. Therefore, since he wants to spread out his concern throughout UK, I will urge the Maslow ‘s hierarchy of demands theory to Mr Smith. Directors will hold to supply motive for a alteration in behavior by fulfilling the lower-level demands so that the employees ‘ basic wage, safe working conditions ( demand to remain alive, have nutrient, shelter ) and occupation security, periphery benefits, protection against unemployment, unwellness are satisfied. This will promote the willing engagement of employees for effectual organizational public presentation.

The relationship between motivational theory and the pattern of direction

The intent of motivational theories is to foretell behavior ; and behaviour of people in administrations depends on patterns of direction. If directors practise Fayol ‘s 14 rules of direction, so employees at all degrees are motivated to work. Peoples by and large respond in the mode in which they are treated. Therefore, to command human behaviour a heavy duty is placed on directors and the activity of direction, where attending must besides be given to allow systems of motive, occupation satisfaction and wagess.

Consequently, Mr Smith must understand how good direction patterns will actuate staff to work. Directors should be after and calculate, organize, bid, co-ordinate, and command suitably in an effort to fulfill employees ‘ demands so that they are motivated to work. This will make an organizational clime in which employees can work volitionally and efficaciously to accomplish the ends of the administration. Directors should acquire the best public presentation from employees to pull more clients.

Directors should use this policy: The demands, wants and rights of employees to be treated reasonably and with self-respect.

Undertaking 4:

Nature of groups and group behavior within administrations

“ A group comprises two or more persons who interact in the corporate chase of a common end. They portion values and ends, are involved in regular activities together, and place themselves as members of the group and are identified as such by others ” . ( From talk notes – AJ ) .

Another utile manner of specifying group is a aggregation of people who portion most, if non all, of the undermentioned features:

A definable rank ;

Group consciousness ;

A sense of shared intent ;

Mutuality ;

Interaction ;

Ability to move in a unitary mode.

Formal groups ( official groups ) : Created to transport out specific undertakings set up by the administration to finish assigned undertakings.

Formal groups may be divided into two classs:

Functional groups: Consist of changing size of work units, with a director and subsidiaries who are responsible for a scope of responsibilities and maps within the administration, for illustration: the finance section, the wages subdivision and the grosss subdivision.

Undertaking groups: Created for the despatch of specific concern or operations, such as a undertaking squad, direction squad or co-ordinating commission.

Informal groups ( unofficial groups ) : Created by the single members for the intent of sharing a common involvement.

Importance of informal groups:

The spread of information through informal webs – the pipeline – is frequently much faster and more influential than through formal groups.

There is the possible for struggle between functions held in formal and informal groups peculiarly in regard of leading, where the informal leader may non be the same individual as the formal leader.

Two informal groups:

Interest groups: develop around the shared chase of a specific end by certain employees, which may or may non be related to the administration.

Friendship groups: Persons fall ining together for assorted societal activities

The factors act uponing Group Behaviour: Cole ( 1996 )

Size of the group

Leadership and direction manner

Group coherence

Motivation of group members

Norms of groups

Group/team functions

The work environment

The group undertaking

Factors taking to effectual teamwork within the new concern

Peters and Waterman defines five factors for effectual teamwork:

The Numberss should be little: each member will so stand for the involvement of his or her section.

The squad should be of limited continuance: Exist merely to decide a peculiar undertaking.

Membership should be voluntary.

Communication should be informal and unstructured.

It should be action-oriented. The squad should complete with a program for action.

The influences that threaten success of teamwork

The squad does non work around the undependable people.

A smaller group of people does most of the work and a larger group pretends to assist.

Sometimes team members do non work good together and may work against each other. This may ensue dysfunctional squads, caused by:

– Lack of trust is the most common job afflicting squads ;

– Lack of squad coherence

– Lack of a clearly defined intent

Impact of engineering on squad operation

Technology: Technologies such as electronic mail, nomadic phones, blackberry, groupware and computing machines can better and in some instances delay squad operation. To be able to work efficaciously, squads must be kept up-to-date with cognition as engineering alterations.

Communication: Successful squads communicate successfully by electronic mail, nomadic phone, phone engineerings such as blackberry and 3G informations cards and 3GB USB dongles, groupware and personal computing machines.

Change: Successful squads can successfully bring-up alteration. Teams will go less effectual and efficient if they do non react to altering internal and external factors. In contrast, antiphonal squads are more effectual, efficient and, are able to lift to the challenges of the modern concern universe.

Networks and practical squads: In the modern connected universe, it is easier for squads to pass on and web. It is possible to make practical squads which ne’er ( or seldom ) meet in physical locations and utilize a scope of web tools to pass on and join forces.

Global and cross-cultural squads

Undertaking 5:

Schemes for the eating houses stakeholder ‘s demands


Mr has to follow HR patterns to guarantee that the administration is able to accomplish success through people.

Staffing the administration: Sufficient Numberss of the right people in the right topographic point, at the right clip, and at the right cost for the administration.

Reward and acknowledgment: Creating structures that maximise enlisting, keeping and motive ; obtaining the best public presentation from the people available.

Performance betterment throughout the administration, for single, squad and organizational effectivity

Pull offing behaviour – guaranting that persons are encouraged to act in a manner that allows and Fosters better working relationships.


Mr Smith and his country directors should supervise the changing demands and outlooks of its clients, and the quality of service they require.

Decision and recommendations

1. With Mr Smith ‘s program to spread out and develop new eating houses across the UK, there is demand for a formal organizational construction and civilization, which has to be carefully designed to promote the willing engagement of staff for effectual organizational public presentation.

2. Mr Smith should follow the rules of direction – directors will hold to execute these five maps ( by H Fayol ) ; program and prognosis ; organise ; bid ; co-ordinate ; and command.

3. The classical attack will accommodate his concern as it plays accent on the planning of work, proficient demands, rule of direction and behavior.

4. Alongside he has to follow the democratic leading in which all members of the group can take part and lend to better the quality of the concluding determination.

5. Area directors will hold to supply motive for a alteration in behavior by fulfilling the employees ‘ demands through wagess.


Web sites:

1. hypertext transfer protocol: // ? id=1269812

2.http: // ( Maslow ‘s hierarchy of demands )

3. hypertext transfer protocol: //

Module Tutor Lecture notes and electronic mails:

Dhlamini S. , 2009. Administrations and Behaviour ( unit 3 ) H1, HND in Business. London: Guildhall College

Leave a Reply

Your email address will not be published.