Management and Organisation in Global Environment

Organisational Culture and Management

Key Concept and Idea

The organisational culture is defined as the system of shared values, assumptions, and beliefs, which influences the behaviour of the people in an organisation. The shared values have the significant impacts on each of the associates working in a corporate setting. The study describes the perceptual views about the organisational culture that has the significant impact on the organisational performance. In analysing the importance of maintaining the organisational culture, the discussion of the different views is essential. First is the omnipotent view, which is considering the responsibilities of the managers towards organisational success or failure (Alvesson 2012). The managers have to be much responsible in organising the proper functionalities that can lead towards achieving the pre-determined goals.

The second is symbolic view, which determines the limited efforts of the managers on the substantive outcomes of the organisation (Baird and Harrison, 2015). It is noted that the skilled performance of each of the associates can lead towards the success. Managing the proper corporate gestures is also a significant part of the organisational culture. The maintenance of the proper organisational culture is effective enough in improving the interpersonal skills of the business associates. The effective corporate culture is beneficial in achieving the performance excellence. The organisational etiquette is essentially needed to be the major concern for each of the associates. The further study will be providing the example of the effective corporate culture of IBM, which has led the company towards enormous success.

Business Case Study (IBM)

The scenario is following the business case study of IBM. The company is mainly renowned for the efficient cultural setting (Ibm.com 2016). Most of the companies define the culture as the part of excellent customer service, corporate behaviour, shareholders’ value, team work, and performance excellence. However, these shared values are not completely related to the human behaviour. Unlike many of the organisation IBM has developed the remarkable and strengthened cultural setting that has been influencing the core elements. These elements are the major contributors for the organisational success. However, during the shift management, it becomes difficult the cultural setting of the organisation.

IBM has faced such shift management scenario. In considering the corporate culture, it has been seen that IBM has been maintaining the proper dress code, which is absolute form of formal business attire (Awadh and Alyahya 2013). However, over the time, when the customer connection became lesser, the previous dress code was marched on and the associates started wearing the formals according to the circumstances. The company has been inviting the workforce to rebuild their corporate culture in a significant way. It was quite difficult to deal with the changing management scenario at the initial stage. However, eventually, the innovative purposes and the diversified situations have brought the recognisable changes in the corporate culture. In fact, IBM has captured the leading position among the most renowned companies, which have been maintaining the proper corporate culture.

Organisational Structure and Design

Key Ideas and Concept

The organisational structure refers to the maintenance of the hierarchal process that helps in managing the functionalities of the business. The hierarchal arrangements help in determining the roles and the responsibilities of the authority (Persson 2013). The organisational structure is necessary in allocating the tasks and maintaining coordination among the associates. The proper design or structure determines the process of transferring information among the diversified level of management. The division of the organisation structure depends on several factors. Firstly, the uncertainty of the environment may affect the selection of the relevant structure. Second, the implemented strategies of the organisation are needed to be concerned before understanding the proper organisation structure (Csaszar 2013). Third, before considering the proper organisation structure, it is required to identify the size of the organisation. Fourth, the organisation needs to be concerned with the technologies before finalising any particular organisational design.

There are several key elements associated with the organisational structure. These are as follows:

• Work Specialisation
• Command Chain
• Formalisation
• Departmentalisation
• Controlling span
• Centralisation and Decentralisation

The organisational structure depends on such factors. Accordingly, a proper design of the organisation is selected. In concentrating on the contemporary organisational designs, it is seen that apart from these six types, many other classifications are visible. These structures are Team-Based, Autonomous Internal Units, Project and Matrix, Learning Organisation, and Boundary-Less Organisation (Mullins 2007). Different business companies adopt the diversified structure that is effective enough to meet the corporate goals.

Business Case Study (Starbucks)

Starbucks Coffee has captured the remarkable position in the international business market. This company has been following the matrix organisational structure, which aligns different types of the basic organisational designs (Lee, Kozlenkova, and Palmatier 2015). The structure includes following divisions:

• Geographic divisions
• Functional structure
• Product-based divisions
• Team-based divisions

The functional structure of the company determines the different types of business functions and departments. For instance, the HR department deals with the recruitment and other employees’ welfare process. On the other hand, the financial department pays attention towards the financial activities of the business. The marketing department of Starbucks deals with the sales of coffee products and other promotional process. The geographic division includes the location of Starbucks in the regional areas (Claver-Cortes et al. 2012). The establishment of this food centre in the convenient place is helpful enough in drawing the customers’ attention. The product-based division is ensuring the availability of the products. If the company can introduce more product diversification and present the customers several coffee related products, it will be beneficial to receive customers’ support. Offering baked food, mugs, and good ambience is attractive enough to the customers. Finally, the team-based structure is suggesting the manpower who has been serving in the different outlet of Starbucks. The company has the food centres in different places. Therefore, team-based structure is essential for the company to manage the organisational functionalities. Hence, the organisational structure is necessary in order to determine the future success of the company.

References

Alvesson, M., 2012. Understanding organizational culture. Sage.

Awadh, A.M. and Alyahya, M.S., 2013. Impact of organizational culture on employee performance. International Review of Management and Business Research, 2(1), p.168.

Baird, K. and Harrison, G.L., 2015. The Association between Organizational Culture and the Use of Management Initiatives in the Public Sector.Financial Accountability & Management Accounting, Forthcoming.

Claver-Cortes, E., Pertusa-Ortega, E. M., and Molina-Azorín, J. F. 2012. Characteristics of organizational structure relating to hybrid competitive strategy. Journal of Business Research, 65(7), 993-1002

Csaszar, F. A. 2013. An efficient frontier in organization design: Organizational structure as a determinant of exploration and exploitation. Organization Science, 24(4), 1083-1101

Ibm.com, 2016. Culture and Values. [online] Ibm.com. Available at: [Accessed 29 Aug. 2016].

Lee, J. Y., Kozlenkova, I. V., and Palmatier, R. W. 2015. Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), 73-99

Mullins, L.J., 2007. Management and organisational behaviour. Pearson education.

Persson, G., 2013. Organisation design strategies for business logistics.International Journal of Physical Distribution & Materials Management.

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