Organizational Behavior Essay

Topics: Management, Decision making, Decision theory Pages: 14 (4734 words) Published: November 21, 2012
1.1 Tarmac’s structure
Tarmac was originally formed by Edgar Purnell Hooley in 1993 and now being the UK ‘s largest quarrying company and supplier of construction. Tarmac leads on the market of aggregates, ready mixed concrete and asphalt. Its business also include national contracting and Buxton. In process of forming and developing. Tarmac is required to has a clear structure to set up a wealthy business. Base on scenario, Tarmac has set in place an organizational structure that provides clear lines of control, responsibility and communication. Tarmac is organized into three businesses: Tarmac Quarry Materials, Tarmac building Products and Tarmac international. To provide clear of control and responsibilities , in each area, the company focus on building three main level of staff means that the company. Each level engage with a specific range of responsibilities. Furthermore, Tarmac has a set of business principles to ensure employees commitment and help them understand their role. Tarmac operation contain support of some divisions and these divisions also share ideas across the company about how to improve processes and achieve cost saving. It clear that Tarmac structure base on its three SBUs. As a large and complex company, Structured by SBUs support Tarmac in expanding their business rapidly in different geographic location. However, cost for building up a SBU is high and that is a challenge for development of Tarmac. Refer to appendix 1, beside some divisions support to Tarmac operation such as finance, human resource, etc…there are other divisions contained in each SBU. Tarmac aim to set up multidivisional structure also with purpose to define responsibilities for employees. Another point is that multidivisional structure will help Tarmac to apply total quality management effectively. However, communication problems may happen in this structure. a division can interfere work of others or repeat what other division did then cause misunderstanding, conflict and waste resource. In addition, to manage its big business, Tarmac need tall structure limit span of control. Wide span of control in a big company like Tarmac can make managers overworked and lead to improper decision making. Tall structure make it easier for managers to control and monitor performance of subordinate. Also, many level of hierarchy provide clear line of responsibilities and control to support multidivisional structure. In multidivisional structure, a clear line of responsibilities is needed for dividing task to manager. Moreover, hierarchical structure enable Tarmac to make centralization. As a big company with many divisions, centralization is necessary for Tarmac to reduce redundant position for saving cost. On the other hand, hierarchical structure theoretically prevent communication between employees and high level of manager. Employees and low level of management can find difficulty to contact with top level. 1.2 Tarmac’s culture

Tarmac pays much attention in their culture. In a multidivisional structure, task or role culture normally applied. Tarmac have to choose a culture that suit with its long term aim. Tarmac’s long term aim is to develop high performance teams who work within a culture of quality and continuous improvement. The company also believes in bringing out the best in all their people. With the goal to apply a culture that appreciate team base and individual potential, task culture is more suitable than role culture. Moreover, what the company want is giving opportunity to employees to contribute their ideas on how to achieve result and encouraging a culture of learning. It is clear that Tarmac can not apply role culture to achieve these target because these are disadvantage of this culture. With task culture, Tarmac is able to achieve the company’s goal through team orientation. Also, task culture is an important part of employees involvement that Tarmac apply in total quality management....
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