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Different Organisational Structures And Culture Commerce Essay

Paper Type: Free Essay Subject: Commerce
Wordcount: 3613 words Published: 1st Jan 2015

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This report will discuss the performance of individuals and groups within organisations. It will investigate the connections among the structure and culture of organisations and how these work together and affect the performance of employees; it will also explain the effect of different leadership styles with in different organisations. A comparative analysis will also be inducted, using four companies namely British Airways, Southwest Airline, Coca Cola Company and Tesco.

Compare and contrast different organisational structures and culture.

Organisational structures:

“Organisational structure is transition to the continuum of commandment of an organisation and how each sections of this hierarchy work together to attain the aims and objectives of the organisation”.(Meese, 2012)

An organisation structure is the way the business is set up. This includes lines of communication and span of control. It helps the business run effectively giving a visual picture of the organisation. Managers and employees are in charge with different task to complete and by completing their task they can improve organisation aims and objectives. There are different types of organisational structures such as tall and flat.

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A flat organisation has a small number of levels or just one level of management were the sequence of commandment is from the top to the bottom, it is short and the span of control is extensive. It can be suggested that British Airways organisational structure is flat as it suggests that its management starts from the top to the bottom, it is not too long and the span of control is broad. British Airways manager has lots of employees reporting to them. Their organisation structure is divided into different departments which are – planning, investment and alliances, commerce, ground operation, engineering, flight operation, finance, law, and human resource. These departments have responsibility to ensure standard and supervising of performance. See British Airways organisational structure chart in (Appendix 1).

A tall organisational structure have many levels of management among the executives and the front line employees, where the structure from top to bottom is long and the span of control is not too broad, it can be suggested that the Coca Cola Company possesses a tall organisational structure. Coca Cola has two operating groups that is bottling investments and corporate and operating groups in about all continents. See Coca Cola’s organisational structure chart in (Appendix 2).

Organisational culture:

“The organisational culture consists of the essential assumption, thoughts; principles and standard which are together with other members of an organisation come out from the history and tradition of an organisation”. (BPP Learning Media, 2010)

Organisational culture includes of premises that members share and hold in common. It involves structural permanence and entrenched all over the organisations languages. People can tell about an organisation’s culture by look at what staffs are wear, what time they come to work and even by how office space is distributed. The culture will be affecting from and have influenced on leadership and management styles and it will play a most important role in customer fulfilment. An organisations’ culture summarise what it has been good at and what has worked in the past. Every organisation has different cultures such as:

“Role Culture: This is suitable to a hierarchy organisational structure. This type of culture works well in employees’ performance on the role that he/she has been programmed and relates with the rules and regulations of the organisation.

Task Culture: This culture gives confidence for people to work as a team; this works well in a leading structure.

Power Culture: This works great in a matrix structure. It is found around one prevailing individual or manager.

Person Culture: this culture considers on providing administrative assist and backing and shut consideration to one individual in the organisation”. (BPP Learning Media, 2010)

In British Airways marketing combine with the extremely visible organisation culture experienced by passengers. The culture is actually what customers buy. It is a great example in which the physical type, such as seating and food, are implanted. Developing an effective service culture moves British Airways forward of its challengers or competitors, their culture can be viewed in the performance of cabin employees on board. See British Airways organisational culture in (Appendix 3) and the Coca Cola Company adopt two types of cultures such as, role culture and task culture – see Coca Cola organisational culture in (Appendix 4).

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

Organisational structure is the hierarchical phases of an organisation; the structure provides rule and strategy on agreement and employee responsibilities and affects the organisation culture. An organisation’s culture is a recognisable, together held combination of opinion and values, as well as the types of employee’s relationships and ways of responsibilities to do things inside the organisation. Organisational structure impacts on organisation culture through authority, organising and encouraging employees to efforts and work together to attain company aims and objectives. Organisational structure and culture have an effect on employee performance, motivation, satisfaction and relationships. Refereeing to British Airways and Southwest Airline – organisational structure is the method by which BA and Southwest Airline communicate, deal out responsibility and compatible to change. By organisational structure both airline can use resources to attain its goals. They keep its structure active so that it can react to the things that impact organisational structure.

However, most important thing that impacts organisational structure is the development. As a company develops, the impact on the structure of the organisation is important. This can be mostly true when organisation start to become larger, for example when British Airway and Southwest Airline start to obtain bigger to other geographic regions and the structure of their organisation will increase over. Also customer needs have an impact in businesses, because customer service is important in business, that is why many companies have make complete separation devoted to customer service and maintenance. Technology can have an impact on how an organisation is structured and work. An example is computer, when computer networks develop, it became faster and easier for people to work as groups. Referring to British Airways and Southwest Airline the use computer to make reservations for customers, to keep data about airline employees and payroll are essential and important.

Every organisation has its own culture. Since many employees spend more hours at their workplace, their organisation’s culture affects both their work and personal lives. An organisational culture mentions to the viewpoint, thought, principles and values that the employees of an organisation helps to and culture is an important facets in the success and achievement of the organisation. However, culture has positive impact on organisation, and the affects is that it motivates and satisfies their employees by encouraging loyalty to the organisation values and objectives and make employees believe valued and trusted. It can help the adaptability of an organisation by cheering innovation, customers care; tend to hold new method and technologies. Also it affects on organisation image and culture features image to be smart and attractive or unattractive and unappealing.

Compare the effectiveness of different leadership styles in different organisations.

Leadership is a method of control in which one person can join to contribute and support others in the growth and achievement of a task or duty, and it is the performing of leading others. Leadership style is the method and approach of providing way; apply plans, and attractive individuals. The three most important styles of leadership are autocratic, democratic and laissez faire.


This style is used when leaders tell their employees what they want completed and how they want it performed, without attainment the recommendation of their groups – see definition of the autocratic style in (Appendix 5). Autocratic style used in circumstances where control and management is needed, regularly where there is small edge for mistake. The advantages of this style are that it make less employees stress owing to increased control because manager have all responsibility for a project. The autocratic manager improves employees working speed and makes them less likely to lose and helps to make faster decision. The autocratic leadership style is useful in the following work situations – See (Appendix 6)


“The democratic leadership style means facilitating the conversation, encouraging people to share their ideas, and then synthesising all the available information into the best possible decision”. (Mullins. L, 2005)

This style engages the leader include employees in the decision making process to decide what to do and how to do it. However, the leader maintains the final decision making power. This leadership style supports the giving out of responsibility and put representation into practice. In this style manager is in charge with all main issues and decisions; welcomes feedback on the results of plans and the workplace control. The advantages of this leadership style are that it brings positivity in work environment; it make successful the plans which mean that the process of conversation and feedback reasonably results in the improved of decision making and more effectual operations; it brings creativity thoughts and decrease employee income.


“Is a style where the manager observes that members of the group are working well on their own” (Mullins. L, 2005). In this style, the manager allows the employees to make the decisions and manager is not interfere but they still in charge for the decisions that are made. This is used when employees are capable to investigate the situation and decide what needs to be done and how to do it. In this style no one can guilt each other if the things go wrong, but this is a style to be use when associates are completely belief and confidence in the individuals below them.

For example: A management style is taken as a whole method of leadership used by the manager. The Coca Cola Company use these following management styles, but each one in different departments. There are three most important types of management styles used in Coca Cola. See (Appendix 7). On other hand Autocratic is leadership style that British Airways adopts.

See (Appendix 8).

Explain how organisational theory underpins the practice of management.

Organisational theory and management theory is applied in several facets of a working business. Lots of people try hard to stick to the theory because it helps them to become successful and better at their jobs. Management is a very important function in all organisations. It is attaining things complete through and with other individuals to attain needed goals by efficiently using available resources. There are five major strands of thoughts:

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Scientific management:

“Scientific management became popular in the early 1900s and it was introduced by Frederick w. Taylor” (Meese. 2012). The scientific method works as an objective and focuses on new ways of doing jobs. Management science attempts to apply this same approach in dealing with problems that arise within business operations. Its use as a problem solving approach finds applications in areas such as decision-making, design processes and strategic planning and problem could be get rid of by developing a science of management.

Classical administration (Bureaucracy):

“Classical management theory was introduced by Max Weber” (Meese, 2012). The term is used to explain the scientific management and general administrative theorists. Organisations use this management to deal with issues in management, including effects, top value, charges decrease and to manage employee relationships. This approach used by many small business holders to growth and improve their organisation and to attain something. One of the benefits of this approach is an understandable organisational hierarchy with divide management stages, where each management group has its individual aim and responsibilities. The top management is generally the directors or the chief executives. The Middle management direct is the supervisors. At the bottom stage are the supervisors who handle each day’s performances. The other half of classical theory is bureaucracy and is generally found in big organisation. The importance of bureaucracy means that it is often studied separately from classical management, which the information are taken from practical experience.

Human relations approach:

“The human relation approach was introduced by Elton Mayo” (Meese. S, 2012).This approach takes nearly the contradictory turn on management. They make sure that the location they work in is fully secure and safe; and to make sure that the employees are did not have their physical or mental health support as a consequence of their working environment. Organisations are use this approach to getting better the self-confidence of their employees and this would include a huge stage of support and acknowledgment for the work that they are doing.

Systems approach:

The system approach to organisation was “developed at the Tavistock Institute of Human Relation in the 1950” (Meese. M, 2012) It is a set of linked parts performing together to achieve some aim and goal which be in the environment. The systems approach is an idea which shows a company as a unified useful system that includes of some business sections. It is an approach which lets the management to see the company as a joint part. Such a system may allow the management to successfully decide the long-term objectives of the organisation.

Contingency approach:

“Handy (1987) suggested a contingency approach to leadership” (BPP Learning Media, 2010). The contingency approach distinguish that organisational systems are related with their environment and that different environments require different organisational relationships for effective performance of the organisation.

Evaluate the different approaches to management used by different organisations.

Management theories are very important because it is contribute to make all employees more creative in organisation. The aims are to increase efficiency and to getting a group of persons to attain a specific aim. There are many benefits of management theories and one of the benefits is that it helps managers and employees to identify how to manage and deal with matters that may exist in the organisation. With management theories organisations can balance every day’s task. However, management theory is not just about to train managers how motivate employees to be more creative, it also shows managers how to be good leader. For example Coca Cola Company and Tesco use management theories to make their employees more creative:

Coca Cola use scientific management and in each work they have its own requirement and appoint each character on the base of work explanation. They chose the greatest way to achieve the job and they split work equally among the management and the top management give confidence their employees and help them to improve organisation. In other hand Tesco use scientific management to bring up to date their employee’s knowledge to maintain profitable ability and make them revolve in working areas. Tesco offer training to employees that will give them the chance to obtain on another stage, also it give managers and employees the experience to their work and opportunity to growth their careers.

Coca Cola Company use classical approach to tell their employees how to do their job in a way that obtains the job done. They use this approach to deal with the problems that arise in their company and to find well way for their organisation implementing and management. Also it recommends the growth of measured methods for performing the jobs and the individuals are train to work faster and better. Tesco also use classical management because this theory sees Tesco’s structure and places importance on development of their work and the principals of their management and employees behaviour. Also they use to understand how the methods of working the organisation use and consequently how to improve them.

The human relation approach takes almost the opposite roll on Coca Cola management because this method considers more on the employees themselves and their needs and wants. It is theory that if the Coca Cola management is to find the most excellent and most comfortable way for the employees to work, this will help them with a great level of working behaviour, ethic and efficiency. Tesco has a human relations approach to business. This approach is quite unofficial and Tesco knows the significance of keeping their staffs happy.

Administrative management – Coca Cola and Tesco’s managers have power to take decisions. All the employees in both organisations are well-organised. All the departments of both organisations help with each other for the improvement of the organisation.

Coca-Cola use system approach and the systems aims are: to help from inside the organisation, to increase employee’s attitude for the future, to make managers accountable for growth attempt, and to make employees eventually in charge for their improvement. Same as Coca Cola, Tesco use this approach to create a well-organised organisation. Tesco create the system to be identified by the employees in order for them to hold their works and improved.

Contingency theory is very important in Coca Cola Company because it contributes them to the achievement of organisational objective in different type of circumstances. It can also help close relationships between their employees and leaders grow more simply. The theory let their leaders to identify the particular works they are responsible. Tesco also suggest using this approach because it states that their structure has important authority on the organisational performance and it highlights their structure and help them to the attainment of their organisation aim and goal.


After studying and a analysing the results of this report show that there are a number of different organisational structures each with their benefits. The most suitable structure will depend on the size and type of business. Flat structures work best for small businesses or those with a small number of job roles and a business with a flat organisational structure require to make sure that each manager’s length of control does not become too broad so that they cannot manage their direct reports efficiently. Culture within an organisation is very important, playing a great role in whether or not the organisation is a happy and healthy place to work. Leadership style is belonging up the roll of the specific system that is a ready to follow. The achievements are belongs up on leader’s procedure and purpose to attain the aim. Leader has long term or short term plan to attain the goals. Management is about getting things done. Organisational managers should require the skills to inspire and control others. Depending upon the situations, leaders will use different leadership styles. Management theory is applied in several facets of a working business and it is a very important function in all organisations. It supports to complete through and achieve goals successfully. There are five major strands of thoughts such as scientific management, classical administration, human relations approach, systems approach and contingency approach.


This recommendation allowing British Airways and Coca Cola to develop and distribute their departmental chain of command to everyone so that the managers and their responsibilities are clearly understood by everyone. Communication is one of the most powerful tools an organisation has to work with, and communication regarding the structure of both organisations can help them to reduce confusion and make more efficient the process. In order to address the leadership on organisation in specific, and in developing or emerging organisation in wide-ranging, it is hereto recommended that the leadership should constantly be seen as a belief and be responsible for their supervision. Therefore, British Airways use autocratic, it can be recommended to use democratic and Laissez-faire leadership styles as well. Tesco and Southwest Airline are doing will on their organisational behaviour so there no recommendation for them to change or improve any things.


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