Explain hoe KBR's organisational structure and culture affects the performance of the business

Topics: Management, Leadership, Motivation Pages: 9 (5132 words) Published: October 20, 2014

Organisational structure outlines individuals’ tasks and responsibility within the business usually impacting the overall culture as well. This is to achieve their goals.    Every business usually groups people in two ways; function and product. The matrix structure is where there are more than one reporting line for employees i.e. individuals’ which have more than one formal manager. (https://www.google.co.uk/?gfe_rd=cr&ei=hNVWU77pB-zR8gfe4YHYCg#q=what+is+the+matrix+structure) KBR is more function and product based; an example of this is when they have divided up the organisation into 6 units. Each unit has been assigned to a professional manager; specialising in its own area of expertise. This style is usually more suited to project work where co-ordination and teamwork is required. This means each manager can delegate different tasks easily to maximise efficiency which therein will increase profits.     The matrix consists different hierarchies. From reading the case study I have determined that KBR is made from a flat hierarchy. A flat hierarchy has horizontal layering, consisting of few middle management and usually having a wider span of control with more staff and one leader.  The fewer layers within the business means it can aid in communication as fewer people to pass messages onto each other and make quicker decisions. KBR being a flat hierarchy means that the staffs have better relationship with one another. Managers have a good level of contact with their employees which means there will be more transparency as staff will be more open and honest with one another.  These core values are part of KBR’s culture and day to day running of the business.       

Compare and contrast KBRs organisational structure and culture to that of another similar organisation e.g. a organisation in the same industry   Balfour Beatty plc is another global company that competes in the same market as KBR. Looking at the case study, there are many similarities to KBR as Balfour Beatty work in same organisational structures and cultures.    Some of the comparable functional structures are when teams are allocated different tasks by specialist managers much like business units. This seems role and task culture. As there are professional individuals joined together to completed a particular task.  From my own research I have found out that they empower employees to be in charge of their own individual projects e.g. when working to replace gas networks in Chester (please see www.balfourbeatty.com /index.asp?pageid=102&mediatags=23). This means the company gets more out of their employees as they are more productive because managers trust them to be in charge of their own team.   They also concentrate on health and safety which is one of their corporate systems as much of their services to consumers involve the public and hazardous environments. Their main executive personally reviews most serious fatalities, event and environmental incidents. Good safety practice is shared across forums so employees are aware which is in to contrast to KBR as KBR concentrate on other values more than safety.   Balfour Beatty’s main values are of integrity, teamwork and diversity. To celebrate individual differences, the company has their own diversity statement active in 80 countries. One way they achieve this is by their three year plan which is a rigorous monitoring system to strengthen the reputation (www.balfourbeatty.com /index.asp?pageid=116) which is in contrast to KBR. This brings out the best in their workers in order to achieve their goals.   To summarise, each company has similar structures, values and culture this is expected because they are in the same market. They also instil specific values catered to their business which maybe in contrast to each other, to ensure each goal is met.   

KBR is a vast organisation can get complex if the roles and responsibilities are not planned in advance. Using role and task culture...
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