There are different types of organization structures and each organization structure has its own advantages and disadvantages. Most of the organizations believe in having Line organization structure wherein the CEO will take all the major decisions. The managers in the organization will be reporting to the CEO and the executives in turn will be reporting to the managers. This structure clearly defines the reporting. This structure may not be considered to be appropriate for organizations will more employees as it will be difficult for the CEO to take all the major decisions.
Functional authority organization structure clearly defines the people who are directly responsible for achieving the goals of the organization and the people who are not directly responsible. Few people will be directly responsible for the organizational goals. The people who are responsible for the achievement of goals will be termed as Line authority and each line authority will have staff authority reporting to them so that they can help the line authority in achieving their organizational goals. This organizational structure will not be liked by many because the staff in the organization will not hold any rights to make decision.
Most of the large organizations believe in divisional structure wherein each of the division or project is divided. Each division will have a different set of decision making authority. Each division or each project will work independently like different organizations. This organization structure is considered to be the best especially when the organization is large (Tiller 2012).
Matrix organization structure is also very popular. In this kind of organizational structure, each department or function separately. The decisions of each department or function are taken by the departmental head. Lastly, small organizations believe in having informal structure wherein they all work together to achieve the common goals of the organization.
Greenscape Company has an informal organization structure wherein all the employees work together so that they can ensure that the business grows. Every person in the organization is personally attached with each other, not only in the organization but also outside. Ong understands the importance of each of the member in the organization. Ong has a personal understanding with each of the employee and this makes work environment better and fun (Saeed 2012).
There are different types of organizational culture and each culture will have a different impact on the behavior and decision making in the organization. No organizational culture can be considered to be right or wrong. It all depends on the management. Different organizations want to achieve different things. Few organizational cultures promote an attitude that will push the employees to achieve the results. On the other end, few of the organizational culture would be such that it allows the employees to be creative so that flexibility can be seen in the organization.
Greenscape believes in having a Clan organizational culture wherein the employees are friends to each other. Greenscape believes in mentoring, nurturing and trying to achieve the common goals together. Ong wanted the employees to be held together and hence, she ensured that they have a balance between their personal and professional. Ong was completely aware of the challenges that the employees had to face in their personal life and hence, she managed her work schedule accordingly. More than an employee-employer relationship, Ong preferred to share a personal relationship with all her employees (Armenakis 2011).
The organizational structure and organizational culture is directly connected with each. The organizational structure as well as the organizational culture can decide on the ultimate goal of the organization. It is the responsibility of the management to ensure that the organizational culture and the organizational structure should be in sync with that of each other so that the common goal can be achieved. In Greenscape, the organizational structure is informal and it has a clan organizational culture.
The organizational structure of Greenscape is informal and hence, the employees are free to communicate their thoughts and beliefs to Ong. This ensures that a personal relationship between the management and the employees are build. This is turn leads to clan organizational culture. If the management wants to have functional structure in the organization then all the employees would have been given a typical role to play and a responsibility to handle. This would mean that they will be reporting to other employees and not the management. This organizational structure will lead to a different organizational culture wherein the employees are more concerned about results rather than that of maintaining personal relationship (Janicijevic 2013).
Perception can be defined as a process of receiving and progressing the information so that the final input can be received. An individual will use their personal past experience to understand the current scenario so the experience that an individual will have overtime will create an impact on the perception that one forms about something, over a period of time. Differences in perceptions can lead to different individual behaviors. Stereotyping is one of the common problems that organizations face due to perception error. Most of the employees in the organization also get into selective perception wherein people have a pre-belief system and they will stick to the same at all point of time. Greenscape employees had selective perception belief about the organization. The employees had a strong faith on Ong and they believed that she will ensure that the company is growing. They also had belief that Ong will take care of all the employees and hence, they decided to stay back with the organization.
Personality is a set of attributes that differentiates one’s attitude from that of another. Different people at Greenscape had different personality and accordingly, their personality was also different. At Greenscape, Martina is concerned about her baby and hence, priority in life is different than that of the others and hence, her personality is shaped accordingly. Similarly, Ong’s personality was such that she gave a lot of importance to the employees who are associated with Greenscape rather than that of the customers.
The perception and personality of the employees at Greenscape creates an impact on the individual behavior at workplace. The employees at Greenscape are aware of Ong’s Personality and hence, they decided to stay back with the company rather than that of leaving the company during its bad times. Ong’s personality ensures that she takes care of all the employees who are associated with the organization. Similarly, the personality of Ong has influenced the employees to form a selective perception about her and hence, they decided to work with the organization even when they will not be paid for a month’s time (Spagnoli 2012).
Laissez-faire is one of the leadership styles wherein the leaders don’t supervise or direct the employees in their team. In this kind of leadership, the senior employees will be happy as they don’t need to be directed in many cases but that will not be the case with junior employees who will require continuous guidance, supervision and direction to perform. Autocratic leadership style is also followed by companies. The leaders have the complete space and freedom to take all the decisions. The decisions of the autocratic leaders is never challenged and at the same time, the autocratic leader believes in taking decisions alone.
Democratic leaders believe in taking decisions only after considering the team’s opinion. This kind of leadership will be liked by the employees as they believe that they are given an opportunity to grow with the organization. Transactional leaders believe in rewarding or punishing the employees for the task that has been assigned to them. In many cases, the employees may feel scared of the ultimate result and hence, this creates a performance pressure on them. Transformational leaders motivate the employees to perform the task that has been assigned to them so that their productivity and efficiency is increased.
Ong was transformational kind of leader and hence, she use to constantly help the employees to grow. This in lead helped her to achieve the common goals of the organization. All the employees are well groomed and confident regarding what they can achieve and hence, this directly improves their performance at work. Ong’s leadership style is helping the organization to grow along with the employees. Ong is involved with the employees so that the common goal of the organization can be met (Giltinane 2013).
The organizational theories and the management theories will create an impact on the organizational practices only when the management and the leadership team in the organization are aware of the existence of various theories. As per system theory, organization consists of different parts but that is applicable to the manager only when they are aware of it. On the other end, certain theories are used by all the managers at all point of time. Contingency theory states that the managers will take decisions based on the existing situation. This is what all the leaders do include Ong at Greenscape. Ong was well aware that she will not be able to pay the employees for a month or she will have to let go her business. At this point of time, she checked with the employees regarding their preference so this was a contingency based decision making.
Similarly, few of the organizational theories are by default followed in the organization while few of the theories are ignored, due to the lack of the awareness among the managers. Fayol’s theory states that all the organization should follow 14 principles so that they can be successful in whatever they do. Centralization is one of the principles but that is not implemented in many organizations, including Greenscape. One of the principles states the management should plan, organize, train, command and coordinate with the employees. Ong ensures that she followed all the management functions so that the employees can be well trained to achieve the common organizational goals (Sethuraman 2014).
Classical organizational theory is implemented in lot of organizations and this theory ensures that scientific management, administrative theory and bureaucratic theory is put together so that results can achieved at the earliest. In case of implementation of this, the processes are scrutinized, the hierarchical structure is given importance and the management principles are implemented. Neoclassical theory states that an individual should be happy at the workplace so that they can grow in the work place. Managers believe that this is one of the best motivations that they can give to their employees.
Contingency theory talks about the decision making process. This theory states that the managers in the organization make decisions based on the current scenario. The managers believe that it is their responsibility to adapt to the changing environment. Systems theory states that the organization is made up of plenty of components. Change in one of the components will create an impact on the complete organization.
Looking at all the above mentioned theories, it can be said that Greenscape follows Neo classical theory and contingency theory. Ong gives a lot of importance to her employees and she believes that they should be given priority so that they can be motivated and this will help the organization. On the other contingency theory is also used as Ong takes decision on the basis of current situation. The organization was running in loss and hence, Ong decided to either close the organization or request the employees to postpone their salary for a month. She also knew that it would be unfair on the part of the employees if she makes the decision and hence, she asked the employees to decide if they wanted to leave the organization or they want to work hard and get the company back to its old position (William 2010).
Different leadership style motivates and demotivates the employees in a different way. Transformational leader will ensure that the team member to able to understand and work towards the goals of the organization. This kind of leadership inspires the employees to work better for achieving the common goal of the organization. This leader believes that manager should understand the problems that are associated with the organization so that they can work together for the betterment of the organization so this leader helps the managers to understand the problems and works accordingly.
Transactional leaders believe that the employee should be rewarded for the good performance so they continuously motivate the employees to perform better and achieve rewards. For every that an employee does, he is rewarded and this motivates the employee to perform better and gain more rewards. Situational leaders behave as per the need of the hour. If they think that they will have to make decision then they will go ahead and do that. On the other end, if they think that a particular task can be accomplished by the employee himself then they would not interfere.
Charismatic leader is the one who tries to spend more time with their team members. They believe that this will ultimately improve the relationship between the leader and the team member. This improvement in relationship will motivate the employees to perform better. Laissez-Faire leader believe that the employees cannot be motivated externally and hence, they are given the complete space to decide on what is good and what is bad for themselves. They aren’t much concerned about the employees and there is no motivation as such in the organization.
At Fancy Footwear company, Mr. Worthy followed Laissez-Faire leadership wherein he believed that the employees are matured enough to understand their responsibilities. He never interacted much with the employees. On the other end, Ms. Hogan was a charismatic leader. She wanted to communicate with the employees on regular basis so that she can understand the problems that are faced by the employees. She use to be among the employees so that the employees can believe her and share their problems with her (Shahram 2012).
Maslow’s theory on motivation is one of the oldest theory and this theory is being used by many organizations. As per the Maslow’s theory of motivation, there are five level of needs in a human’s life. It is the responsibility of the manager to understand and motivate the employees accordingly. If an employee is at the first then he will look for the fulfillment of physiological needs like food, clothing and shelter. On the other end, if the employee is on the fourth level then they will look for position and power in the organization so they should be motivated with good promotion.
Herzberg theory states that only two things at workplace can motivate the employees. The employee should be given positive motivation like good and challenging work, recognition and also responsibility. This theory states that hygiene factors in the organization may not motivate an employee but if the hygiene factors are removed then they will be demotivated for sure. Incentives theory states that the employees can be motivated by way of using intrinsic and extrinsic motivation. Intrinsic motivation happens within an individual like a desire to achieve better. On the other end, the managers should look for extrinsic factors like salary and good responsibilities and motivate the employees accordingly.
Fancy Footwear Company will motivate the employees by way of using extrinsic as well as intrinsic factors. The management at the Footwear Company should understand the various motivational factors and provide the same to the employees. Employees in this organization are more than happy to work if their priorities are well understood by the management (Valencia 2014).
The group should have a common goal to achieve so that they can work together to achieve the goals. It is the responsibility of the manager to assign a common goal to the group so that they can work together to achieve the goals. The manager should be divided so that each group of employees can work together to achieve the common goal. Every group should have some norms associated with it so that they can all stick to it. These norms will help the management to achieve the common organizational goals. In any workplace, the management will notice formal as well as informal groups. The formal groups will work together and there is every high possibility that the informal groups can create an impact on the thought process of the group.
At Britannia Home manufacturers, it is seen that the floor employees were not interested to be a part of the training. The group might have communicated and decided that they should not be a part of the training as the training would be waste of time and this will just be wastage of time. This group behavior changed overtime when they noticed that few of the members in the group are improving. These employees weren’t capable to take up any other role in the organization but they felt that they can take up responsibility with the help of training that is provided by Gibson. This was again a group decision to be a part of the training so that they can improve (Wang 2015).
Various factors create an impact on the teamwork so it is the responsibility of the management to look for ways and understand the factors so that the employees can perform better in the group, they are assigned it. It is very important for the organization to have diverse team members in the group so that the employees can well together. With the help of diverse team members, the managers will see that the flow of diverse ideas and culture and this helps the team to perform better.
It is the responsibility of the management to ensure that the team members communicate openly with that of each other. This creates a comfortable environment and hence, the employees are motivated to perform better. The leadership also creates an impact on the group. It is the responsibility of the leader to ensure that the group members are comfortable with each other so that good results can be delivered (Deering 2011).
With the help of proper technology, the communication process at Britannia can be improved. At this point of time, the employees working on the production floor aren’t trained to communicate with each other by way of using technology. It is the responsibility of the management to train the employees to use technology for communication so that the communication can clearer and faster. Gibson can take up an additional responsibility of training the employees on using computers and emails. This can be value-adding to the organization. All the executives and the managers in the organization can be given a mobile so that they can interact during office hours and after office hours with complete ease and freedom.
Britannia should look for ways to improve the communication especially among the lower level employees. It is seen that the floor level employees communicate with each other directly and there is no use of technology. This stops the employees’ as well as their organization’s growth. Lack of technologies is stopping the employees from taking a better role in the organization (Johnson 2012).
Deering, S, 2011, Multidisplinary: Teamwork and communication training, seminars in perintology, vol. 35, no. 2, pp. 89-96
Wang, C, 2015, Formalization and verification of group behavior interactions, IEEE transactions on systems, man and cybernetics, vol. 1, pp. 1-7
Valencia, F, 2014, Motivational theories in the study of entrepreneurship, Pensamiento & Geston, no. 36, pp. 12-24
Shahram, M, 2012, Organizational theory, systemic thinking and system management, International journal of organizational leadership, vol. 1, no. 2, pp. 73-79
William, M, 2010, Organizational theory development: displacement of ends? Organizational studies, vol. 31, no. 1, pp. 47-68
Giltinane, C, 2013, Leadership styles and theories, Nursing Standard, vol. 27, no. 41, pp. 35
Sethuraman, K, 2014, Effective leadership styles, International business research, vol. 7, no. 9, pp. 165
Spagnoli, P, 2012, Personality and organizational commitment, Career Development International, vol. 17, no. 3, pp. 255-275
Janicijevic, N, 2013, The mutual impact of organizational culture and structure, Economic annals, vol. 58, no. 198, pp. 35-60
Armenakis, A, 2011, Organizational culture: assessment and transformation, Journal of change management, vol. 11, no. 2, pp. 305-328
Saeed, R, 2012, Relationship between Organizational Structure and Organizational Alienation, Interdisciplinary Journal of contemporary research in business, vol. 3, no. 12, pp. 188
Tiller, S, 2012, Organizational structure and management systems, Leadership and management in Engineering, vol. 12, no. 1, pp. 20-23
Johnson, L, 2012, Information technology and communication, Journal of information technology, vol. 41, no. 1, pp. 49
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