Essay on Organisational Structure, Culture, and Management Style of a Business

Essay on Organisational Structure, Culture, and Management Style of a Business

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Organisational Structure, Culture, and Management Style of a Business


C2 An Analysis of How the Organisational Structure, Culture

And Management Style of the Business Affects its Performance and
Operation and Help It to Meet Its Objectives

The organisation structure of Wednesbury IKEA

The organisation structure in the ‘Appendix section’ belongs to the
Wednesbury branch of IKEA. Wednesbury IKEA is a large formal
organisation and it is best suited to a hierarchical organisational
structure. This is because; there are more employees as it goes
downwards from each level. This type of organisational structure has
many levels of management. The organisational structure has been
structured according to its own function i.e. marketing, finance,
human resources and sales. This is known as a functional organisation.
The hierarchical organisational structure of Wednesbury IKEA is very
similar to a tall organisation structure.

Looking at IKEA’s organisational structure, the chain of command shows
a clear line for messages within functional departments, so therefore;
it leads to good communication. For example, looking at the
organisational structure of IKEA, there is a clear communication
within a human resources department. However, the chain of command is
very long from the top to the bottom of the organisation because,
there are too many levels of management. This will lead to poor
communication. For example, it takes decisions a long time to reach
the workers at the bottom of the organisation structure. The
communication flows multi-directionally, from the top to the bottom of
the organisation. The communication can flow both upwards, downwards
and horizontally. I have given some examples of how communication can
flow upwards, downwards and horizontally, on page 42.

It is important that the functional areas of IKEA are combined
effectively, if the organisation is to meet its objectives. To do
this, each function of IKEA have to create a set of company objectives
that, can be translated down into functional objectives, so that each
function is driven by the organisation’s objectives. This is known as
corporate objectives. Many of these corporate objectives are concerned
with these issues:

* Providing the customer what he or she want each and every time

* Providing the right quality at all times

* Valuing every...


... middle of paper ...


...and
will work their best to achieve them. With this management style, IKEA
can use various methods of communications (see E5).

However this type of management style could make decision-making slow
and is not appropriate to some businesses such as, manufacturing
industries.

The organisational structure, culture and the management style of IKEA
have to perform successfully so that, together they can achieve the
company’s objectives. For example, to increase profitability: the
communication within the organisation have to be clear so that, staff
can understand what jobs have to be carried out; staff have to be
motivated to perform the job; the relationship between managers and
staff have to be strong and committing; the organisation have to
encourage staff to create new ideas and share them amongst others;
democratic managers have to listen and act on the opinions of
workforce, democratic managers have to make sure that the workforce is
well aware of the objectives of IKEA, etc.

If the performance of the organisational structure, culture and
management style of the organisation is poor, the overall business
will have difficulties in achieving its objectives.

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