Briefly explain:manager, management and organisation.Assess the significance of managers in achieving organisational success for a company of your own choice.
Analyse how size and strategy of a company can affect its organisational structure? Support your answer with relevant examples.
Tesco has said it will close 43 unprofitable stores across the UK, The firm is also shelving plans to open a further 49 new "very large" stores.Additionally, Tesco is closing its staff pension scheme, will make cuts of £250m and reduce overheads by 30%.
Shares in Tesco rose by more than 13% on Thursday, as investors welcomed the company's announcements. It comes after two years of troubles at Tesco, which has suffered falling sales, in another development, credit rating agency Moody's downgraded Tesco's rating by one notch to Ba1, equivalent to "junk" status. (BBC, 2015)
a) Discuss Tesco’s current mission, vision and corporate strategy.
b) Suggest and explain the process thatcan help Tesco to formulate its corporate strategy for the year 2015.
c) What do you understand by the term “organisational culture”?Can Tesco improveits performance by changing its culture? Discuss.
The project focuses on the management, the management principles and the requirement of management in an Organization. It analyses the role of manager in an organization. How a management is responsible to make an Organization reach its desired goal. The definition of management states that it is about people who builds a design for an organization and decides how the various aspect of an organization will interact.
Manager refers to the person who takes the responsibility of directing and planning for a group of individuals, and monitors their task using the remedial measures when required. It is one of the initial tasks in management (Reviews, 2013). Managers may instruct the employees directly or may manage supervisors who instruct the workers. One must be familiar with the nature of work of all groups he/ she supervises but does not need to be the best in any or all of the areas (Daft and Marcic, 2014). It is more important for the manager to know how to manage the workers than to know how to do their task well.
The association and synchronization of business activities in order to achieve a defined objective is known as management. It is often considered as one of the significant factor for production along with capital, labor and land. Innovation and marketing is the bread and butter of management (Griffin, 2012). The origin of management started when enterprises confronted certain failures while operation. Controlling, directing, planning, organizing and creating policy are a part of management.
An organization is an association or entity, which has combined goal and is connected to its peripheral environment. In order to meet their need and pursue their collective goals, it is important for an organization to manage their activities (Griffin and Moorhead, 2011). Every organization has a structure that establishes the relationships between the members and their activities and assigns and subdivides authority responsibility and roles to carry out various functions. It is a form of open system and is affected by their surroundings.
It is a UK base multinational company in financial service and banking, operating in treasury service, institutional banking, corporate banking and customer service. It is almost 150 years old and its headquarters are in London. Being one of the largest banks in UK, it is regulated by the Authority of Financial Contact and Authority of Prudential Regulation (Sc.com, 2015).
There are certain significant roles that a manager should perform in order to achieve an Organizations goal. They are:
- A manager encourages innovation:
- A manager facilitates expansion
- Manager tries to improve the life of workers
- He is the medium between organization and people
- A manager keeps maintains the image of an organization
- A manager motivates the company employees
- A manager leads the team of operation
A manager motivates his employees and leads them so that they could be more productive and contribute to the profitability of the company (Daft and Marcic, 2014). In Standard Chartered, a manager leads his team to obtain his daily target. He ensures whether there is any issue between the employees and the bank. He applies innovative strategies to attract customers.
An Organizational Structure refers to the system which an organization follows that states the role of each individual (Aquinas, 2008). It explains how activities like supervision, coordination and task allocation are instructed for achieving the targets of an organization. While deciding on the effective design and structure of an organization, the size of the organization makes an impact. Depending on the organizational size, the organizational structure is formed (Hill and Jones, 2013). The organizational Size affects the organizations structure in many ways, they are:
The size or the number of people in an organization determines the subdivision of jobs. The more number to jobs in a company the ore number of skilled people are required (Hodson and Sullivan, 2011). In a company with less than 20 employees the number of job roles will be few in compared to big organizations where there will be more number of job profiles and the number of employees working would also be more. For example in a bank like Standard chartered there are many designations like branch manager, executive officer, officer, assistant officer, junior officer trainees, regional manager, finance manager, Hr manager etc. But in a small company they might not have posts like junior officer, regional manager etc.
According to the size, a company divides its departments which states how various jobs will be grouped. A high degree of division in departments are done in large organizations where as less departments are requires in a small organization . In large organization departmentalization is a necessary criterion so that the workforce may have a clear understanding about their task. Suppose in a small retail store the number of department will be less and in a large retail store there will be many departments where the number of people would also be more.
Formalization of an organization determines the extent to which the organizations are regulated. It also states the degree of maintaining regulations and rules among its workers. Hence this shows like an organization well established with a good number of employees would require a higher degree of regulations than an organization of minimum size.
The strategies of a company affect the organizational structure in many ways. The organizational goals are obtained from the strategies of an organization. Thus it states that the structure of an organization and the strategies are close connected. For example, if a company attempts to apply strategy for expansion then it would a flexible structure. If the organizations management takes innovative decision for adopting new strategy then there will be a sheer need for modifying the organizational structure. Organizations like General Motors, Tesco, Sainsbury and various private manufacturing industries follow a flexible structure due to new strategies adopted for growth and sustenance.
An aspirational view which indicates the future prospect of a company about where it aims to reach is known as Vision. It creates a standard for the expectations of a company. Tesco is an organization which is very much depended on its employees and customers. The strategic decisions and gaols of the organization are driven by its vision (Witcher and Chau, 2010).
There are five elements in the vision of Tesco; they are (Tescocorp.com, 2015):
- Tesco wants to be known for its need and want among the customer.
- Tesco aims to grow its business with ample of opportunities.
- Application of innovative and modern ideas,
- Acquiring the loyalty and trust of customers through staff service.
The mission of Tesco is:
- To shift from being a top force not only in AMSS company but also to rig full upholding of the company
- To enhance from Customer Departmental Store Service Company to a broad base, full offering tubular service enterprise.
- To shift their focus from product sales enterprise to a full-fledged company of mechanization products.
Customer Loyalty: they have a system of club card which ensures their customer loyalty. It is widely operated in countries like Czech Republic, Poland, Hungary, UK and Ireland. This system calculates the points that a customer earns while buying a certain amount of products from the store (Tesco.com, 2015).
Products: Tesco concentrates on providing good quality of products and always tries to satisfy their customer with the product.
Stores: Tesco tries to develop their existing stores and invests on them so that customer feels a sense of refreshment very time they visit. This kind of strategy increases the frequency of visit for the customers.
Customer Service: they intend to provide first class customer service in order to get good feedback. They focus more on after sale service for customer retention.
Tesco can increase its customer loyalty by many ways, some of them are:
- Employee motivation: with the help of schemes that can provide employee benefits apart from pension can motivate the employees to work better. Though pension schemes provides securities to worker, incentives can be introduces which would increase the productivity of employees.
- To show their gratitude in innovative way: It must be done so that customer feels elated as a buyer of Tesco products. In retail chains it is very important to increase the number of customers and to satisfy their present customers. So in order to do so they need to assure that each customer is valued with a sense of gratification.
- To acquire information on existing customers: there should be a record keeping system for customers like Customer database with the help of which the managers will be able to understand the needs and demands of their customers.
- To keep in touch with the customers: in order to maintain a good relationship with the customers it is essential to keep in touch via various mediums like telephone call, text message and similar types. This makes the customer feel special and part of the organization. Sometimes this king of maintaining relations attracts others who are not a customer of the company.
- To provide customers services more than their expectations: a company like Tesco needs to identify what more does the customer expects from Tesco and tries to make things upto their expectation. Like recently Tesco has made an app for the customers so that they could continue buying and get more facilities with the help of this application.
- Provide as much information as they can to their customers: the customer has the right to know information about the products they are going to buy and it would be more advantageous to them if Tesco can not only educate their customers but also provide more information than required. This strategy helps to increase the customers’ interest.
A process of shared beliefs, values and cultures that controls the behaviour of the people of an organization is known as Organizational culture (Clegg and Hardy, 2012). The beliefs and values that are shared have influence over the Organizations people and guide them on their performance, their appearance and their jobs (Keyton, 2011).
The vision mission and the values of an organization influence its culture (Cameron and Quinn, 2011). With the help of its strategies Tesco can improve its organizational culture. Like, one of its missions is to increase its customer loyalty, in order to increase the customer loyalty an organization needs to be more customer oriented and have a friendly environment all around. Hence the employees’ behaviour is influenced by the vision of Tesco. By changing the atmosphere like technological advancement, use of Information technology and many other technologies it can change the organizational culture and thus it would conclude in productivity increase.
For every Organization, the management and people are the most important factor and in order to run the organization successfully both management and people has to work efficiently. Today along with other factors of production the Information technology also plays a key role. Today along with manpower technology runs hand in hand. The organizational People should be prepared to adopt cultural technical and organizational changes. Even management seeks for innovation and applies various strategies.
Aquinas, P. (2008). Organization Structure and Design: Applications and Challenges. Excel Books, p.538.
Cameron, K. and Quinn, R. (2011). Diagnosing and Changing Organizational Culture. San Francisco, CA: Jossey-Bass.
Clegg, S. and Hardy, C. (2012). Studying organization. London: SAGE Publ.
Daft, R. and Marcic, D. (2014). Building management skills. Mason, Ohio: South-Western Cengage Learning.
Griffin, R. (2012). Management. 11th ed. Cengage Learning, p.720.
Griffin, R. and Moorhead, G. (2011). Organizational Behavior. 10th ed. Cengage Learning, p.608.
Hill, C. and Jones, G. (2013). Strategic management. Mason, OH: South-Western, Cengage Learning.
Hodson, R. and Sullivan, T. (2011). The Social Organization of Work. 5th ed. Cengage Learning, p.528.
Keyton, J. (2011). Communication and Organizational Culture. SAGE Publications, p.215.
Reviews, C. (2013). Studyguide for organizational behavior. [S.l.]: Cram101 Incorporated.
Sc.com, (2015). About Us - Standard Chartered Bank United Kingdom. [online] Available at: https://www.sc.com/uk/about-us/index.html [Accessed 12 Mar. 2015].
Tesco.com, (2015). Corporate strategy. [online] Available at: https://www.tesco.com/investorInformation/report97/review/page1.html [Accessed 12 Mar. 2015].
Tescocorp.com, (2015). Vision, Mission and Values. [online] Available at: https://www.tescocorp.com/bins/content_page.asp?cid=4-1167 [Accessed 12 Mar. 2015].
Witcher, B. and Chau, V. (2010). Strategic management. Andover: Cengage.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2016). Manager, Management And Organization: Significance In Achieving Organizational Success. Retrieved from https://myassignmenthelp.com/free-samples/tesco-management-principles.
"Manager, Management And Organization: Significance In Achieving Organizational Success." My Assignment Help, 2016, https://myassignmenthelp.com/free-samples/tesco-management-principles.
My Assignment Help (2016) Manager, Management And Organization: Significance In Achieving Organizational Success [Online]. Available from: https://myassignmenthelp.com/free-samples/tesco-management-principles
[Accessed 22 February 2024].
My Assignment Help. 'Manager, Management And Organization: Significance In Achieving Organizational Success' (My Assignment Help, 2016) <https://myassignmenthelp.com/free-samples/tesco-management-principles> accessed 22 February 2024.
My Assignment Help. Manager, Management And Organization: Significance In Achieving Organizational Success [Internet]. My Assignment Help. 2016 [cited 22 February 2024]. Available from: https://myassignmenthelp.com/free-samples/tesco-management-principles.