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Introduction of the new and different organisational structure in the business can be difficult to handle. In the cases like BMC where the company has extended the business to a new location, management has to face extensive challenges and barriers. Due to the challenges, the organisational structure of the companies gets affected. The structure of the organisation tends to be modified with the change in the market in order to meet the needs and demands of the market. With the change of the organisational culture, a lot of the crucial elements of the organisation are also affected.
This report explores how the organizational purpose is associated with the pros and cons of functional and divisional organizational structures and its association with the products and customers linked to each type. It further funnels down to the strategy adopted by these organizations like BMC and the impact that external factors such as location and competitors that they face.
Keeping in mind the most recent and dominant external factor i.e. COVID 19, was then bought into picture to show how it affected the various distribution channels and hence the organizations working. Internal factor being the poor management skills by BMC that leads to poor employee satisfaction and hence high employee turnover. People practices also plays a vital role since the right recruitment can help maintain a balanced and positive work culture and environment. Another factor being the development in the internal technology improves employee satisfaction and productivity since heavy tasks will become optimized
Towards the end of this report, we speak about how the organizational systems and coaching, training, mentoring of the employees as recommendations can impact the functioning of BMC for the good. The main aim of the report is to understand the connection between the culture of the organizational and the strategies.
1.1 Organizational structures
The functional or U-form (unitary form) design of an organisation is referred to the categories relying on different functions undertaken by organisations. Departments can work independently and their functions can include sales, finance, human resources, marketing, and operations (Bosch-Presegué et al., 2017). Google is an organization that has a cross-functional organizational structure with a higher degree of flatness. This flatness is a unique feature of Google’s organizational structure and is helpful in enhancing the growth and competitiveness of the company. The corporate structure of this company makes use of function in order to group its employees. Though, The flatness of this structure reduces the ability of employees to communicate with managers and businesses to directly communicate with the customers due to poor morale and rigidity in the process. Google’s organizational structure has the qualities including openness, innovation, hands-on, and smartness with emphasis on excellence. All these qualities are aimed at motivating workers to achieve customer satisfaction by providing them with the best products and services. However, the corporate structure of Google causes slow decision making that reduces strategic alignment with the company’s vision of achieving excellence and attain a superior position due to decline in functional efficiency.
Divisional organisational structure for organisations like Disney Company involves categories of people relying on products and services for customers. The organisation has different products targeting specific market of consumers, which further allocate employees to attain customer satisfaction. The Disney Company aligns employees on the basis of different products and services. The multidivisional (M-form) organizational structure used by Disney groups various business operations works on the basis of divisions or product categories (Clement, and Puranam, 2018). This organisational structure is quite helpful for Disney company to serve their organizational purpose which is to inspire, inform, and entertain people around the globe. Different divisions in this company work to satisfy its customers around the globe through the power of storytelling (Velleman, Clark, and Tonniges, 2018). However, this structure creates issues in business due to functional duplication and generates rivalry at internal level, making business management difficult. Moreover, Disney’s organizational structure encourages interdivisional cooperation and promotes the achievement of synergy among various divisions. Though, the operations in this structure makes Disney to strategies more critically as there are major possibilities of loss in corporate level economies and increase in operational cost. BMC Company can also incorporate one of those organizational structures in order to better achieve its organizational goals and purpose.
1.2 Organisational strategy and its link with products, services, customers, revenue
Organizational strategies are basically shaped on the basis of organizational mission, vision, values, and goals (Cox and Plemper, 2017). Horizontal integration strategy employed through mergers and acquisitions has the ability to enhance market share of the company, its customer base, and product line that subsequently help in increasing the revenue.
Moreover, product differentiation strategy is used by Disney as the generic strategy of the organization to enhance its competitive advantage. The strategy involves the introduction of new products offered to the consumers in various market segments (Boehe and Cruz, 2010). Due to this competitive strategy, Disney displays the innovation in its products that is unique to the corporation and helps to differentiate company’s services like online streaming from the other competitors in the market.
Similarly, The company use differentiation strategies for increasing their competitive advantage by attracting customers in large number and satisfying them with quality products and services (Rijamampianina, et al., 2003). Disney uses the product and service diversification strategy in order to attract more customers and generate more revenue. Varied internet-based services and products introduced by supporting organisation to earn better revenues. The better choices and high-quality differentiation of Disney, making the organisation gain a more online and offline audience that helps in retaining customers and increasing profits.
products, services, customers and revenue
1.3 Current and ongoing impact of the range of external factors and trends on organizations.
External factors are those influences, circumstances, or situations that are beyond the control of a business and have an impact on the decisions made by the business owner and stakeholders. Every organisation encounters a lot of external factors that impact the organization harshly (Lin, Bonora, Yard?mc? and Noble, 2018). A company's performance can be affected by uncontrollable factors such as the economy, politics, competitors, customers, and even the weather. Compared to internal factors such as staff, company culture, processes, and finances, which are all within your control (Lin, Bonora, Yard?mc? and Noble, 2018). The discussion relies on the evaluation of the PESTLE analysis of the BMC Company as provided in the appendix of this paper.
Competitors of BMC are the external factors that impact the happening of the organisation. BMC being a newly located organisation has to encounter the pressure of the competitors. The organisation has to take its place in the market in order to overcome the competitors (Velleman, Clark, and Tonniges, 2018). There are already so many organisations that are delivering the same services as BMC therefore it is getting difficult for BMC to promote its services in the already established market(Men and Robinson, 2018). Political factor also affects BMC and its growth. Any change in the laws and regulation bring a change within the organisation (Velleman, Clark, and Tonniges, 2018).
Environmental factor such as the ongoing pandemic has affected the organisation. Channels of distribution are also affected by environmental factors such as economic conditions and legal constraints. Factors affecting business include belief systems and practices, customs, traditions, and behaviours of all people in a given country, fashion trends, and market activities. Survival in this competitive environment includes adjusting to clients and the demands of the market (Men and Robinson, 2018).
Families, communities, socioeconomic status, and religion are examples of social factors that influence and define a lifestyle. Factors such as what stock to carry, where to locate brick-and-mortar shops, and how aggressively you pursue online selling options can be affected by social factors (Velleman, Clark, and Tonniges, 2018).
1.4 Assessment of current organizational priorities associated with the issues and causes
Every organisation faces several numbers of challenges and issues, but the ones who are capable and organized possess the ability to overcome all the hurdles in the way of success and development. Just like the other companies, BMC also faces a lot of issues associated with organisational priorities. The common hence, the current issues associated with the organisational priories that BMC faces are employee turnover and the management handling issues. BMC is losing a number of talented employees which is causing a lot of issues and challenges for the company (Isaac Ntimba, Frederick Lessing, and Swarts, 2021).
Employees are not satisfied with the culture of the organisation. The organisational priorities of BMC are products and the services delivered by BMC. The turnover of the employees is a major issue that BMC is currently facing. The limited profits, poor morale, and the increment in the costs are the cause of the employee turnover in BMC. Other than this, mishandling from the side of the management is also a major current issue of BMC. Poor management is reducing the productivity of the employees, the professionals, and the leaders are not cooperative even in the times when BMC has lately relocated itself. The management needs to understand that the turnover of the employee’s ad their poor management is causing a great loss in the productiveness of BMC (Isaac Ntimba, Frederick Lessing, and Swarts, 2021).
A positive and motivating environment is required to be implemented for motivating employees of BMC Company. The managers within the system practice territorial and authoritative management limiting the goals of an organisation. The bureaucracy with hierarchy is challenging for consumers and employees at lower level. The slow response to the feedback is harmful for the organisation as customers may switch to the customers. Therefore, the change in organisational structure is required to address the structure of the organisation. The divisional structure for BMC is more likely to spread authority across the products and services (Isaac Ntimba, Frederick Lessing, and Swarts, 2021).
1.5 Impact of people practices on the organizational systems and structures
People practices play a great role in the growth and development of every organisation. People's practices are responsible for a number of things happening inside the organisation. The roles and the responsibilities of people practices begin with the recruitment of the staff, afterwards, which include the training and development of the employees and the maintenance of the culture and structures of the organisation. Similarly, the people practice of BMC is also responsible for the happenings of the organisation. The strategies and the practices of human resources leave a great impact on the systems and the structures of BMC. The impact of people's practices can be direct or indirect on BMC. Practices such as training and development of the staff of BMC affect the organisation positively whereas; ineffective strategic planning can affect the organisational structure and system (Huang, Wang, Pi, and Hewlin, 2020).
The learning and the development policies of people practices can impact the organizational structure. The process of the recruitment will also affect the organizational culture in a way that right selection of the candidate will give positive outcomes eventually (Huang, Wang, Pi, and Hewlin, 2020).
Every system demands employees who are concerned with the goals of the organisation through which the structure is determined and implemented. The training and development of the employees help employees in acquiring a number of skills that later help in achieving the organisational goals. The learning and development policies in BMC Company have the influence on the structure of the organisation because the divisional structure has aligned the workforce with the tasks. In the absence of training and learning of diversity, the management faces challenges in development of a new system. It is so because the productivity of the organisation relies on the ability of people to perform the assigned responsibilities. The perfect performance of the employees working in BMC improves the productivity of the organisation (Huang, Wang, Pi, and Hewlin, 2020).
1.6 Evaluation of technology within organisations and how it impacts work.
Technology in business is significantly important because it allows organisations to improve and enhance the performance and overall effectiveness of the products and the systems of the organisation. Technology helps businesses in expansion effectively. Moreover, technology also helps in making a better relationship with the customers and stakeholders. The scale of the technology in BMC was quite low because the company has recently purchased a large contemporary city centre licensed food premises in Manchester. The lack of technology in the organisation caused employees turnover and dissatisfaction. The lowest scale of the technology within BMC reduces the productivity of the employees, hence Employees were burdened from the work and repetitive tasks (Halkos and Bousinakis, 2017).
Many organisations have clientele databases through which they receive feedback and promote products. The online marketing strategies develop leading strategies to move goods between consumers and organisations. The use of social media with network platforms provides organisations with the process of building team to enhance the information system. Use of technology is effective because it has exponentially increases the rate of the production and the speed at which the business runs(Halkos and Bousinakis, 2017).
The lowest scale of technology in BMC caused employees turnover and dissatisfaction. Employees were fed up with investing their time in tasks that could have been possible in lesser time through the help of technology. Improved technology NBMS would have streamlined the repetitive processes with automation and its vote save the cost of the organisation. The productivity and satisfaction of the employees have been increased. Satisfaction and productivity help in sustaining the talented employees within the organisation for a longer period of time.
The technical training of the employees would have sustained a lot of talented employees in BMC. The high scale of the technology would have increased the creativity and innovation within the organisation. Different ways of communication between the employees and the management would have been improved and enhanced which would have resulted in low employee turnover and less dissatisfaction of employees in BMC (Halkos and Bousinakis, 2017).
The automation is beneficial in increasing quality through standardised processes. The technology requires coordination with skills of people to ensure the consistent operations and enhanced satisfaction of customers (Halkos and Bousinakis, 2017).
3.3 Key themes that impact the provision of people solutions
Key themes that currently shape the work of an area of people practices and their impact on the provision of people practices solutions in BMC involve the wellbeing of employees. For organisations in a competitive environment, the solution lies in employee coaching, training, and mentoring. As a part of the strategic plans, consideration is given to human resource requirements and the design of a system for gathering employees' strengths to achieve organisational goals. Individual and collective contributions to productivity can be tracked through performance management. BMC is facing challenging circumstances involving system plans that are causing lower employee motivation and higher turnover. Embracing the practices surrounding BMC employees through a new organisational design could be one possible solution to this challenge (Bufquin, DiPietro, Orlowski, and Partlow, 2017).
In an era of rapid technological change, systems allowing decision-making processes with employee motivation are necessary. BMC needs a system to motivate its employees to accomplish their responsibilities and duties efficiently while embracing technological advancements. To enhance the BMC's growth, the hierarchical structure needs to be eliminated as it slows the decision-making process and causes a burden on employees (Bufquin, DiPietro, Orlowski, and Partlow, 2017).
On the whole, the report holds the understanding of the connection between the organizational structure and the business operating environment for BMC. For the better understanding the report holds the evaluation and the analysis of the different organizational strategies.
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