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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

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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. ...read more.


IKEA would divide themselves into several functions such as, marketing, human resources and finance. These functions also have hierarchical ordering of office. For example, the human resources department of Wednesbury IKEA has a Store Human Resources Manager, Human Resources Manager, Human Resource Specialist and Training Co-ordinator. The culture is best suited to IKEA's organisational structure because; it has a hierarchy structure. The advantages of this culture to IKEA are the main source of power and the main source of influence. The main source of power is the employee's position in the organisation. For example, the Store Manger of Wednesbury IKEA, at the top of the organisation has more power than the supervisors, at the bottom of the organisation. The main source of influence is the rules and regulations of the organisation. The rules and regulations of IKEA will stimulate staff members to work their best. If the culture of IKEA is poor, it can strongly affect the number of absenteeism and punctuality. For example, if IKEA had a hard and unfriendly culture, it can influence their staff not to come to work because, they might be teased every day by other staff members, or they might dislike their job that they were given so, they might come in late or take a day off from work. ...read more.


This sort of management style will also make sure that the workforce is well aware of the objectives of IKEA and 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. ?? ?? ?? ?? Unit 1: Business At Work Created by Baljinder Duhra ...read more.

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