To: Teresa GREEN, CEO of SLB
From: Amelie ARRAS, business consultant
Date: 16th October 2012
Subject: issues and solutions within SLB
The aim of the report is to analyse the current organisational structure and culture within southern bakeries limited (SLB) and give you recommendations about what could be improved. Indeed, you identify that changes should be applied to achieve the new business goal and enable the company to grow. I will also explain how changes could impact on the business considering advantages and drawback of different structures and cultures available to you.
Culture and organisational structure within SLB:
First of all, a structure is the architecture which connects all aspects of the organisation’s activities for it to work as an entity, it is important that the structure and the purpose of the company are in tune in order to be successful. Sometimes, when the structure is inappropriate it can create lack of communication within the organisation which leads to the loss of focus. In an organisation, not only the structure is important but also the culture which plays a major role on how people work together as it is representative of the “way of life” of an organisation.
Within your company, a functional structure is evident which reflect the power culture of the previous leadership. This structure in a good use lead to specialisation, roles are allocated to people who then known exactly what they have to do. Nevertheless, the disadvantages are as follow; lack of communication between different departments that could lead to a lack of focus; coordination may take too long, or even a reluctance to changes. Myrtle gray, Human Resources and accounting, may have reluctances towards new SLB culture formed from an attachment to former organisation structure, indeed she had a strong relationship with the previous CEO who had a more bureaucratic and autocratic approach of how things need to be done, resulting in conflicting with the others managers. Fifteen-years enforcing specific bureaucratic hierarchies can often ignore innovative ideas such as yours. Influence, such as hers, over such a fundamental department like HR can build or break a business. However, within your company it affects your wish to change the culture as her function is directly related to the recruitment. Indeed, HR is the only manager who does not share the open door policy or your faith in the member of staff as she tends to monitor her staff, indeed her staff turnover rate prove it. Nevertheless, I believe that overall SBL has a task culture as you are very much people orientated, you manage your board as a team and the other managers such as Martin (Operations Director), Silvia Tongue (Marketing Director) and Ben Factor (Environment Director) seem to share the same team culture as your, which is a good point to improve communication within the company and to motivate staff. In fact, despite sub-culture that your staff might have, the culture you show to them can influence and be an example for them.
Impact on business performance:
The Power culture adopted by HR lead to a break of the business as it must have create a reluctance from the others department to work as a team. Moreover, the functional structure used within SBL doesn’t make any better to help communication between departments as the communication has already been damaged by the clash in culture of your managers. The impact of such a clash affects directly the effectiveness of your business also the time it takes to implement changes and achieve goals. Indeed, culture and structure must suit with the purpose of your organisation.
Also, it is really important to understand the behaviour of different managers within SBL, indeed their personality, perception, aptitudes and abilities can affect the effectiveness of the team if it is not compatible with the task they have been given. The...
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