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Compare And Contrast Different Organisational Structures Commerce Essay

Paper Type: Free Essay Subject: Commerce
Wordcount: 3537 words Published: 1st Jan 2015

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Organisation can be identified through their responsibilities, authorities and relationships in the market. There are ways to organise companies to get effectiveness in market. The structures of organisation play important role in development of company. These structures are based on cultural identity of organisation the way its structures behave. (Botha, 2008)These structures are to keep work flow and bring profits and the way they work they create culture. The degree of influence within organisation and the systematic approach to organise the activities forms culture. There are following types of structures in companies depending on their composition.

Bureaucratic and Administrative structure

Functional Structure

Divisional structure

Structure Matrix

These structures form a way of functioning and behaviour of the company. These can be divided into following groups based on company culture.

Circle organization




This depends on the facilities, policies and aims of the organisation how they use structure and culture in their favour. (Brooks, 2010) Companies in past remain under bureaucratic structure but with passage of time and learning now they have adopted a liberal form of structure which created liberal and devolvement culture with in origination where team work is more important that control from top to bottom.

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Explain how relationship between an organisation’s structure and culture can impact on the performance of the business

The performance of business can be affected by the relationship of structure and culture if the structures are not leading to a healthy sympathetic culture of work then company cannot meet its targets and cannot survive in the market. Company structure should be accommodative to espouse new good culture and cultural outlook should be in way to strengthen the structure and support the outcome of the activities in positive and profit oriented way. If we see the corporate culture is kind of approach that company’s top management tries to project for their company as it portrays the systematic and organised business culture. Companies with better and organised culture try to keep the distance between the top management and junior ranks though in 21st century it’s all about the team work. (Harrison, 2002) Companies should promote harmonic and team work based culture. This systematic organisation of company culture and the structures to support the culture have visible impact on the performance of company business and it also presents the picture which helps investor and customers to decide the purchase activity related to company. This is factor behind the company management organising such events where they can introduce the structures and culture in their company through different mediums. Sometime they are using commercial media and some time the main stream media to give the introduction of their structures and culture. On business media companies tries to occupy more time in discussions that gives them advantage in marketing. (Ries, 2005) Similarly the workers and employees also get inspiration from structures and culture of company and they feel proud and loyal to a good organised structure and developmental culture in their company while they are with friends and family or in general public and they also try to promote the values of company.

Discus the factors which influence individual behaviour at work

There are many factors which influence the staff while they are at work. These factors are included company structures, hierarchy, culture, values, aims, objectives, benefits and punishment system. The staffs try to get support from existing company system. If there is not well established structure staff can not feel good and supportive attitude from top management towards their work so they loos the work interest after time. Similarly if there is not well define and developmental culture in company staff try to escape the work and lazy attitude is developed over time. If there is no well defined hierarchy in company there can be time and resources loss due to delays confusions and overlapping of work. (Cardy, 2003) If company holds good corporate values staff also feels secure and proud about company and they try to fulfil company goals and aims. The benefit are key to individuals at work as every human have basic life necessities and major motive behind any job or work is to fulfil those needs if company is not providing enough financial and other supportive benefits to staff they will try to slip from company as soon as they will find better opportunity so it is necessary to keep staff loyal to company through providing them better financial and other benefits like health benefits and pensions. (Forster, 2005) Last but not least thing is punishment and reward system in absence of such punishment and reward system company management cannot get maximum effort from staff. It is necessary to use stick and carrot strategy with in company to get individuals work properly according to set targets of growth and development in business.

Task Two

Compare the effectiveness of different leadership styles in different organisations

There are many leadership theories which define different leadership styles in business. Mostly the leadership style in companies is based on the approach of top management or owners of the company. Here is analysis about some of leadership styles and strategies along with their effectiveness for organisations.

1. Autocratic leadership

This form of leadership is example of extreme transactional leadership, in which leader of company or top managers use power tool to deal the work and workers. Staff members have little chance to give suggestions and decide according to their. (Forster, 2005) This type of leadership cannot work with large organisations but it is good for small organisation especially where there is untrained labour or staff and unskilled jobs. But in large organisation it can lead to lazy attitudes, higher level of absenteeism and turnover

2. Bureaucratic leadership

Bureaucratic leadership is way in which rules are followed strictly and work is done in the bases of book. It is very popular leadership style even with modification and modern approach in all companies this type of leadership is found at any level. This is good for work where there is serious work involve human life risk and handling of machinery, but in service sector it can lead to disaster where staff will try to implement and follow book and situation will required the diversity of action and response.

3. Charismatic leadership

It is form of leadership which emerges with strength of personality and it creates higher level of acceptance among staff. It carries enthusiasm, charm and quality and creates an energetic atmosphere. The drawback of this leadership style is leader can turn authoritative and can make blenders for business without any one there to challenge him or her. Similarly the dependence on the leader can crate collapse after they leave.

4. Democratic leadership

It is also called participative leadership in which there is room for every worker and manger to give their feedback and make contribution in the work development. It supports with decision which have full backing and involvement from staff. (Laeven, 2004) But sometimes it can lead to lake of responsibility and a competition based on contribution instead of quality.

5. Laissez-faire leadership

The French word which means “leave it be,” it is way in which team member are given chance to work their own and take charge of decision making and responsibility as it is focused on productivity instead ways and means. It is effective in well groomed professional environment but can lead to collapse where staff is not fully trained and skilful.

6. Relations-oriented leadership

This is also called as people oriented leadership in business which tries to accommodate the version of other people rather than top management. This type of leadership is aiming at the results for general welfare and benefits for maximum people. It tries to accommodate interests of as many as it can. But it have drawback of expansion of work to unnecessary boundaries and unnecessary participation and involvement level.

Explain how organizational theory underpins the practice of management

This theory tries to explain the understanding and appreciation for criticize or postmodernist segment of business world. This theory helps to develop a purpose oriented approach in which it serves depends on the advancement by the business. Theory focuses on the business environment and its effects on the working capacity of the business. Company have major aim of settling its interests and achieve its growth. It derives the relationship between different phenomenon’s which affect the business activities. The use of theory helps businesses in developing understating about modernity of technology, knowledge, skill development, diversity, development of structures and positive approach for profit seeking strategy. Through a good analysis of the situation company tries to look for success opportunities under this theory.

The modernist view of theory helps in adaptation of new technology with better approach and understanding. (Lall, 2005)It helps the organisations to find way for increase efficiency and effectiveness to control performance indicators.

Evaluate the different approaches to management used in different organisations

There are many fundamental approaches in business management which are used and followed by the management in different sectors according to their needs. Based on different approaches we can categorize these managerial approaches based on implementation and management in three groups. These are used on the bases of following qualities:-

The diversity of technology

degree of complexity in delivery

objectives of the business and

Process used within a timeframe.

These approaches are characterised as following:-

Active Listening

It states that some organisations need their management to used active listening approach to accommodate the needs of customers and workers in effective way for improvement in acceptance level and growth. This helps companies to win confidence from their customers and brings loyalty to brand names.


It is like listening approach it is a facilitative management approach which is supported by utilisation of existing skills in the environment to get advantage. It is based on active participation and involvement of staff and customers to bring fundamental results in favour of business.


This is different management approach which is based on instrumental project management to fulfil the delivery needs. It is mostly sued in developing projects where there is need for controlled activities to bring certain level of success. It is mostly short term strategy and approach of management as with development in business it cannot be used for long.

Task Three

Discus the impact that different leadership styles may have on motivations in organisations in period of change

Leadership is way to give direction, implementation, planning and motivation to people in business for achievement of better results. There are certain leadership styles like authoritarian or autocratic, participative or democratic and delegative or free reign these styles are followed widely in business world to achieve set business targets. Here is summery of effects of different leadership styles on the motivations in organisation.

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Authoritarian or autocratic

This is way in which leader shares the team that what company want and how it wants to be done without getting any feedback from juniors and team. Sometime leaders get all information from bottom level of management but they decide their own about actions. (Cardy, 2003) This style need lot of involvement from top management in company to be present physically to control things once manager is away staff tries to get escape from work and absenteeism is common in this type of leadership style. It also creates lake of responsibility and secrecy of information from one channel to other as everyone tries to avoid any bad situation. It also called bossing people this style is on decline in major organisations and is being replace by other leadership styles.

Participative or democratic

The slogan of this type of leadership is “let’s work together”, it is way in which leader involves everyone to give their feedback and take responsibility for doing things on business. Though leader maintains the final decision yet still its room for more participation and every opinion is welcomes. This style have drawback for waste of time and unnecessary and unskilled involvement in business decisions which can lead to losses and weakness.

Delegative or free reign

In this leadership style responsibility is shifted to lower ranks of management, thus employees are allowed to make decision about work with freedom. Yet this required highly skilled and trained professionals at all levels which is expensive for human resource management and required lots of revenue and without grooming all staff to that level it can bring disaster to company business. This is also known as laissez faire.

It is observed by the business exerts that a good leader tries to hold combination of all three leadership styles according to needs of time and management activity.

Compare application of different motivational theories with in workplace

There are different motivational theories for workplace performance management which are discussed in coming discussion.

Incentive Theory of Motivation

This theory states that staff and employee can be motivated to perform well through external rewards. For example, if there are some financial gains for staff for doing a certain level of work or keeping time management effectively they will try their best to achieve the land mark to gain that financial benefit.

Drive Theory of Motivation

This theory states that people are getting motivation from certain actions that are taken by management to get maximum outcome in performance. For example, someone can be motivated for drinking water to reduce internal thirst. This theory tries to base performance control on biological and physical needs of humans.

Arousal Theory of Motivation

These theory states that human are motivated to act to satisfy or decrease their stimulation or arousal level. For example, one person can like to go to movie while other can like to read book to satisfy certain arousal level.

Humanistic Theory of Motivation

Humanistic theory of motivation is a set of motivational theories which are based on fact that human have immense cognitive reason to act in certain way and do certain things. Abraham Maslow’s put this in his hierarchy of needs that is based on different motivations behind human actions and those motivations are biological, social and spiritual. Like hunger and self actualisation.

Evaluate the usefulness of motivation theory for managers

Motivation can be a very important factor for an organizational success and achievements of set targets by the organisation. Here are facts that help managers to get benefit from these motivational theories, these are following:-

Motivation makes human resources available for action as every action required physical, financial and individual involvement. Through use of motivation managers can turn resources into action thus they can utilise those resources for development and growth.

Motivation improves the level of efficiency in company as staff’s puts full efforts neglecting their qualifications and learning they are involved to gain the benefits of motivational factor. Thus motivation in organisation improves performance level for managers. It helps in increase in productivity, improves the efficiency of staff and reduces the cost for operations.

It leads organisations and managers to achieve the set organizational goals by the utilisation of available resources effectively and in better way. Increases cooperation at work, creates better work environment and works as stimulate for higher performance level.

Motivation builds very friendly relationship among managers and staff as staff meets some benefits for their performance. It increases the staff satisfaction level at work and develops trust and confidence at workplace due to monetary and non-monetary incentives.

Similarly, motivation becomes very important for business because it motivated staff, empowers manager and teams, creates team work environment, creates sense of belonging and responsibility among staff, decreases operational costs and makes work time effective activity.

Task Four

Explain the nature of groups and group behaviour within organisations

Groups or teams are important and major feature of business organizations. Work

At organizations is divided into sub-units that are consists of departments of groups. These groups shape the behaviour of organisations and are responsible for activities at organisation.

It is very important for managers to develop understanding about the nature of groups inside organisations. (Forster, 2005) The cooperation level among groups and within teams is vital for company activities. This way people with different skills and behaviour patterns with in groups affect the level of group performance. The leadership style of managers is having important effect over these groups and leads to success or failure of group efforts. The composition of groups promotes team work, coordination, cooperation, experience sharing, guidance availability for new staff and collective outcome of business activity.

These groups have following features:-

They interact with each other

They build teamwork

They can involve into a psychological warfare

They are define unit

They share common skills and interests

There are ways through groups are formed one of such explanation is given by the Tuckman in 1965 as he define the process of group formation which is based on

Stage 1 – Forming

Stage 2 – Storming

Stage 3 – Norming

Stage 4 – Performing

Stage 5 – Adjourning

There are many formal and informal groups within organisation which work according to their set purposes and try to achieve those purposes.

Discuss factors that may promote or inhibit the development of effective teamwork in organisations

There are many factors which affect the development of teams at business organisations. These factors are internal and external it nature. These factors include, high standard of performance, creating quality work, experience sharing, collective efforts, minimising cost, minimising work effort and to promote collective benefits as team. These factors affect the composition and working ability of groups and teams in absence of some important factors team cannot be building and there can be no increase in performance level which is brought by the team work. In 21st century the new business dimensions insist on the development of team under the affect of these factors to get maximum output from staff performance.

Evaluate the impact of technology on team functioning within a given organisation

In 21st century media and communication are very important tools for business performance and business development. There is continuous increase in technological advancement in creation and working of teams with in business. Here are some technological tools and their impacts on performance of team in business environment:-

e-mail is based on internet which is most rapidly spreading form of communication which businesses are adopting rapidly to support their teams. The use of email helps teams to share and retain information for best performance.

Mobile phones also have their huge impact on business and teams within businesses as it is quickest and reliable way to communicate between teams and get support on time.

Groupware are new technological tool help teams in planning meetings, increase collaboration and work in a virtual environment with better results than emails and phones.

Personal computers are popular in business as tool for management, communication and record keeping. The use of laptop is very popular in business community and helps the continuous connection among team members through use of internet and its capacity is bigger and better than previously mentioned tools.


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