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Describe the management style and culture of the business.

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Introduction

AVCE BUSINESS E5-Describe the management style And culture of the business, C2-Explain how the organisational Structure, culture and management style of the business affects Its performance and operation and helps it to meet its objectives Organisational structure is the formal and systematic way the management of a business is organised. When presented as a diagram, it shows the departmental functions and who is answerable to whom. Structures can be adopted by the business according to the size of the organisation, the preferences of the owner of the business and the environment in which the company works in. The organisational structure can affect the business in positive and negative ways. The size of the business is a factor because if the company increases, then profit making would be unsuitable as the company is growing by stature. Therefore as the company is escalating, then the chain of command becomes longer and perhaps widens the span of control. The culture of the organisation is a huge influence on the structure that the business adopts. Sainsbury's would use the matrix structure as they are trying to be the best business in the market of supermarkets. ...read more.

Middle

> CENTRALISED This structure is where the decision-making is made at the top of the hierarchy and the store managers are told what to achieve. The employees follow the instructions set by the managers. This can lead to coherent strategies in marketing and production and sharing of resources. Decision-making can speed up, but this structure also reduces the opportunity for input from the lower levels. > DECENTRALISED This structure is where the decision-making and financial resources are passed down the hierarchy and this enables junior staff to make the decisions. With this responsibility, it motivates the junior employees, which could lead to innovation and enthusiasm. However as they are not experienced enough, tight control and communication must be maintained. C2 The organisational structure in Sainsbury's would be of the matrix structure as the organisation is trying to be minimised. The company would not use the conventional methods like hierarchical structures etc.. This structure would affect the business in a huge way and make the company more successful as the member of the team is more organised and has a willingness to work for the company, therefore, their work will be of the highest quality. ...read more.

Conclusion

I think the culture used in Sainsbury's is the matrix as I have already mentioned above. This can also be known as the task culture. People from different departments have the flexibility to work on projects with or other departments. The advantages of this task culture would be that it is appropriate where flexibility, creativity and teamwork are important qualities. This would be where the market is volatile or the product life cycles are short. Also another advantage of this culture is that different teams across the functions can be combined as appropriate to meet the needs of different projects. This adds interest and variety to the working life and therefore is seen as a motivator. However, where there are advantages, there will be disadvantages which affect the business and they are that much of the power and influence in a matrix system lies at quite low levels in the management hierarchy. The other disadvantage is the control may be difficult in the task culture. Intensity of power and control are the price paid by the senior managers for fast response and more teamwork. ...read more.

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