SCENARIO . According to Bergstram and Hamilton, organisations have different str
ID: 381907 • Letter: S
Question
SCENARIO
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According to Bergstram and Hamilton, organisations have different structures and these structures have a bearing on attitudes and behaviour. Each organization has a different culture and structure which makes them a different performer altogether. Behaviour of individuals working in these organisations also are influenced by the structure and the culture of the organisation. As part of a management training programme in your organisation, you are required to undertake research into; two different types of organizations one of which should be a local company and the other an international company dealing in 2 different products or services.
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Learning outcomes
1.1: Compare and contrast different organisational structures and culture
1.2: Explain how the relationship between an organisation’s structure and culture can
impact on the performance of the business
1.3: Discuss the factors which influence individual behaviour at work
2.2: Explain how organisational theory underpins the practice of management
2.3: Evaluate the different approaches to management used by different organizations
Explanation / Answer
1.1: Compare and contrast different organisational structures and culture
The two companies being considered are Walmart and Berkshire Hathaway.
Berkshire Hathaway has a conglomerate structure which according to their Chairman, Warren Buffett will go a long way and it can maximize long term capital growth.
At Berkshire Hathaway, Warren Buffett talks about a special culture where they deem themselves to be conservative players. He states that the culture of the company is determines by the CEO and how he behaves. Hence, if the right values and culture needs to be permeated the CEO should behave and act in that way.
Walmart on the other hand has a hierarchical functional organizational structure. It means that the organizational structure has two features; hierarchy and functional based. The hierarchical structure means that directives come from the top management which get implemented by middle managers down to the lower levels. Function based structure means employees are put in groups on the basis of the functions that they fulfill.
Walmart’s organizational culture has four main components; serving the customers, respecting the individual, striving for excellence and acting with integrity.
1.2: Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business
The structure and culture definitely has an impact on the business. As discussed above the culture that the CEO establishes depends on his behavior. So if he does not act as per the culture that he wants to implement then the people in the organizational structure will also not behave that way. Hence, if the customer is unhappy due to the employees incompetent service one can easily blame the C – suite as unhappy customers are because of unhappy employees and unhappy employees exist because the top management is not implementing the right culture by themselves not acting accordingly.
Hence, relation between structure and culture can impact the performance of the business.
1.3: Discuss the factors which influence individual behaviour at work
There are several factors which influence individual behavior at work. As discussed above it is important for the CEO to behave in a proper way as the employees look up to him and behave as he does.
Adding to that if the employee feels that the organization takes an interest to integrate his personal goals with the company goal then he sees a future and works efficiently.
Financial rewards and recognition also impact individual behavior. If the reward for a good job is instant, then it automatically motivates the employee to improve himself.
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