Organisational Structure, Culture, and Management Style of a Business

Organisational Structure, Culture, and Management Style of a Business

C2 An Analysis of How the Organisational Structure, Culture

And Management Style of the Business Affects its Performance and

Operation and Help It to Meet Its Objectives

The organisation structure of Wednesbury IKEA

The organisation structure in the ‘Appendix section’ belongs to the

Wednesbury branch of IKEA. Wednesbury IKEA is a large formal

organisation and it is best suited to a hierarchical organisational

structure. This is because; there are more employees as it goes

downwards from each level. This type of organisational structure has

many levels of management. The organisational structure has been

structured according to its own function i.e. marketing, finance,

human resources and sales. This is known as a functional organisation.

The hierarchical organisational structure of Wednesbury IKEA is very

similar to a tall organisation structure.

Looking at IKEA’s organisational structure, the chain of command shows

a clear line for messages within functional departments, so therefore;

it leads to good communication. For example, looking at the

organisational structure of IKEA, there is a clear communication

within a human resources department. However, the chain of command is

very long from the top to the bottom of the organisation because,

there are too many levels of management. This will lead to poor

communication. For example, it takes decisions a long time to reach

the workers at the bottom of the organisation structure. The

communication flows multi-directionally, from the top to the bottom of

the organisation. The communication can flow both upwards, downwards

and horizontally. I have given some examples of how communication can

flow upwards, downwards and horizontally, on page 42.

It is important that the functional areas of IKEA are combined

effectively, if the organisation is to meet its objectives. To do

this, each function of IKEA have to create a set of company objectives

that, can be translated down into functional objectives, so that each

function is driven by the organisation’s objectives. This is known as

corporate objectives. Many of these corporate objectives are concerned

with these issues:

* Providing the customer what he or she want each and every time

* Providing the right quality at all times

* Valuing every...

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will work their best to achieve them. With this management style, IKEA

can use various methods of communications (see E5).

However this type of management style could make decision-making slow

and is not appropriate to some businesses such as, manufacturing

industries.

The organisational structure, culture and the management style of IKEA

have to perform successfully so that, together they can achieve the

company’s objectives. For example, to increase profitability: the

communication within the organisation have to be clear so that, staff

can understand what jobs have to be carried out; staff have to be

motivated to perform the job; the relationship between managers and

staff have to be strong and committing; the organisation have to

encourage staff to create new ideas and share them amongst others;

democratic managers have to listen and act on the opinions of

workforce, democratic managers have to make sure that the workforce is

well aware of the objectives of IKEA, etc.

If the performance of the organisational structure, culture and

management style of the organisation is poor, the overall business

will have difficulties in achieving its objectives.