The aim of this report is to analyse two companies who have significantly different organisational structures. It will analyse the relationship between an organisations structure and culture and the effects on the business performance. Also the factors which influence an individual’s behaviour at work will be looked into.
The two companies that will be focused on are:
1.1 British Telecom (BT)
BT is a leading communications solutions provider serving customers throughout the world. It provides Networked IT, telecommunications and broadband services to some 20 million customers in the UK. It also provides services to other licensed operators.
1.2 Part Motor Factors
Part Motor Factors is a small car mechanics business located in Ashton-In-Makerfield. It also has a car accessories store next to the garage. They deal with local customers providing service, repair and spare car parts.
2.0 Organisational Structure
Organisational Charts for both BT and PMF have been placed in the appendix of this report. 2.1 BT
It is important that BT has a good structure because without it the performance of the business would lack. They do this by allocating responsibilities, decision making, co-ordination, control and reward. These aspects are obviously managed to at least a reasonable standard because of the successful business BT has become, and wouldn’t have become without it. BT is formally structured but is supported by some flexibility to meet variations in demand of their service. (Mullins 2005)
2.1.1 Tall Organisation
If we refer to the organisational chart (see appendices) it is obvious that BT utilises a tall hierarchical structure (Buchanan & Huczynski 2004 page 468). BT didn’t necessarily intend the organisation to be of a tall nature but it has become one because of the different sectors they have and the amount of people that work for the company. If it was a flat organisation the higher levels of management would have an extremely limited amount of time to put toward each sections needs and there could be a tendency for the managers to neglect areas they are not as strong in, leaving the workers and supervisors to run them. This obviously means that the manager’s span of control is low over the business. Being a tall organisation then poses the following advantages and disadvantages.
•The efforts of each individual or section can be focused and there is no confrontation as to who does what •It has made it easier for BT to be controlled as there are less people for each level to deal with in this situation •Because there are less people to deal with, it also means that for the management, their time can be spent more on their specific task than dealing with a wider range of employees •Employees are more specialised, only having to deal with one situation means they can focus their efforts more and have a greater understanding of their field of work •Multiple levels of control offer higher chances of promotion for employees. Within BT this has created an increase of motivation, and competitiveness between employees to increase their productivity in order to achieve promotions. This obviously decreases the workload of the business and targets are better achieved •Having smaller groups or teams means more input from employees at team meetings which wouldn’t be seen in a nationwide workforce level team
•Though higher management are the ones making the decisions, it doesn’t necessarily mean they are the right ones as they aren’t the ones on the front line. The first example that comes to mind is the engineers work areas. If each engineer was to visit only customer premises in their own town, each engineer would spend the majority of their working day on site rather than travelling to the town it is in. At the same time another engineer in that town could be travelling to the town you live in – obvious waste of time and fuel. •There is an increased amount of...