Organizational Structure and Culture of Rolls Royce
Rolls Royce is a technology and global leader. They employ 35,200
people and operate in 48 countries.
Headquarter is based in England UK. Large manufacturing plants are
located in American, Singapore and China. A hierarchical
structure is used to manage the company. As a giant company, they
choose hierarchical structure to manage the company. It is a
traditional and effective structure for Rolls Royce to supervise and
develop the business. The Group managed by detailed systems and
procedures due to the large turnover. Their annual turnover is £5645
million. And the group enjoys 25 percentage of the engine market in
the world. The Group supplies all the major engine sectors: transport,
combat, trainer, and helicopters.
There are many layers between the top and the bottom in the group.
The top layer set up the policy and decision making. The bottom layer
would follow the guideline so they can achieve the company objectives.
The group structure is
Chairman
Board of Directors
Group of Executives
Board of Management
Group of General Management
The main departments within the group are:
Administration Division Business Division Customer Support Division
Network Development Division Production Services Division
R&D Department Finance Department Human Resources
Each division has managers for supervision. The staff in each division
needs to follow the managersÂ’ decision. Every member of staff clearly
understands their role and responsibility under the hierarchical
structure. It is because each layer gets different responsibilities.
Advantage of hieratical organisation
Employees know their objectives clear in their job task and carry out
efficiently. Beside that, every staff specialised their job. For
example: engine designers responsible for designer and develop
engine. HR staff responsible recruits and select people. Divide of
labour and specialization can be applied so that it increase the
working efficient and reduce operation cost. Clear lines of
responsibility and control functions are clear.
Disadvantage of hierarchical
Too many layers in the group, it is difficult and time consuming to
communicate between employees. Decision making are not quick enough to
react to the market.
A role culture is adopted in Rolls Royce Group.
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...ms between different regions and
departments. The objectives are easily achieved when good
communications are applied. Good communications also help to solve
complicated structures of the company. Most of the disadvantages are
sorted out. As Rolls Royce is a large enterprise, face to face
communication is sometimes difficult. Culture has an important role
in communication for the company. It regulates the employeesÂ’
behaviours and guides the action. It reduces the company uncertainty
and provides a balance for all the staff. Staff is well co-ordinated
so that they can achieve the objectives more smoothly.
For all those reasons, the turnover of the group is £5645 millions,
which increases 5% per year. The profit is £285 millions, which
increases 8% per year. They gained 30 per cent market share of the
global business in high quality engines. There are over 54,000 gas
turbines in service world-wide and more than 4,500 customers.
Technology and better services will continue to meet customer needs
over the next two decades. They employ around 35,000 people in 15,000
different jobs. The management ensures that all the employees perform
their best in their jobs.
The Relationship between the Structure, Culture, and Management Styles in Tescos There is a clear relationship between the structure, culture and management styles in Tescos here are some examples showing this: Tescos uses power culture which has a top down (tall structure) whereby objectives are determined by the individual or individuals. This structure is also linked in with an autocratic management style as this structure tends to have a ‘them and us attitude’ which depends on where individuals stand in the hierarchy. Tescos has also adopted role culture which is structured in a hierarchal way and is divided into a number of functions which ties in with a democratic style because of the multidirectional flows of communication between organisational members means there is more likely to be a team approach. This also inter relates with the ‘flat structure’ Tescos has adopted which refers to the number of levels within the hierarchy of an organisation whereby everyone’s role, position and responsibility is made clear so that there is a clear chain of command. These cultures help Tescos to meet a range of objectives from being market leader to maximising sales and profits.
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