The reason that CS doesn’t use autocratic management style is because the manager takes complete responsibility for decision making. These types of managers set their own objectives and tasks to the employees, which the employees are expected to, do and be carried out exactly the way that the managers have specifically said. This can cause employees to resent this type of leadership, which will cause them to be unmotivated. It can also produce a lack of teamwork and social contact because there is no reason for employees to correspond with each other.
The other type of leadership that CS doesn’t consider is the laissez-faire leadership style because there is no formal structure to decision making and the leader doesn’t force their views on others. There are disadvantages for this type of leadership because this leadership produces a relaxed atmosphere, which can sometimes cause poor productivity and a poor motivation as employee’s have little encouragement to work hard.
An organisational culture is the process of describing the values and beliefs of the people who contain in CS. Organisational structures show the attitudes of the staff and the way that they interact with other people e.g. customers. Organisational structures also show the way that decisions are engaged and how the management style is used throughout CS.
Person culture in CS:
Person culture places the emphasis on the individual rather than the organisation and its objectives. For example if any member of staff has any suggestions for improvement, their suggestions are taken to account and if successful they will be used e.g. the chocolate product ‘Curley Wurly’ had problems with being a ‘hit’ nationally, so to make a popular brand, one member of CS suggested that there should be advertisement on television of this product, which was a popular add at that time. This then caused customers to buy ‘Curley Wurly’ because the advertisement attracted them to the product.
This value can help CS performance because the views that the employee beliefs in to improve are taken account and might be used to solve something. This will improve the motivation of the employees because their opinions are considered by the company, which makes them feel that they are part of the team. The better performance of the employee will even give him/her more ideas that CS can use, which can influence other members of the staff to think of ideas, so that CS will be more efficient. This helps to achieve the objectives e.g. the more information to improve the company will mean that CS will have an ideas to improve the problem, so that the customers and employees are satisfied with it. When employees and customers are satisfied it will help CS objectives for gorwht and income to increase. Also the objective to provide excellent quality products will be improved by the ideas that the employees consider and the performance of the employees to provide high standard quality products.
Task culture in CS:
Task culture is when expert teams or groups are used to solve and tackle a specific problem or to complete projects e.g. Task culture works as a team to package the chocolate. Packaging the chocolates is done as a team. A member of the production team packages the chocolate in foiled rapping, and then the chocolate is passed by machinery to another member of the production team who packages the foil chocolate in boxes. These boxes are then stacked in many counties on a machine. These stacks are then rapped with cellophane, so boxes don’t fall off. Finally these stacks are taken by another member of the production team using machinery to the storage. As you can see on this example, that the workers are highly skilled at what they do.
Task culture is important to the success of CS because when problems occur in the company, then it needs to be solved. The problem is solved by groups or teams who are highly motivated and skilled at their job so that the problem doesn’t happen again. When workers are working together they gain a bond, which then turns to motivation. When you have a group of motivated workers they will help to meet the objectives of the business. The workers will solve the problem quicker, efficiently and effectively so that CS doesn’t have the problems again and that they can use the outcome when the crisis has been done. Working as a team helps CS to meet their objectives because the quicker the team works, the more outcomes will appear e.g. working faster as a team will quicken the production process, which means that there will be a increase in growth, income and improvement on quality control because there is more products to be sold, which customers buy even more of the product. The quality control be more effective because the motivation of the team mates will make sure that each process of production is perfect, so that the customers will be pleased with the products.
Change culture:
A change culture is normally located in flexible, responsive organisations including CS, which are capable of adapting effectively and quickly to external change. This belief in CS is very important to them because it give them advantages of highly competitive and to the rapid change of markets e.g. when Cadbury creates a new chocolate bar; for instance the chocolate bar, Fuse. It was the highest selling chocolate in the year 1996. People accepted the chocolate because it was different, which means that Cadbury filled a gap in the market. It also reached the consumer by promotion strategies. Every promotion had a meaning, for example the bill board promotion for fuse used a motto that was confusing. That’s what Cadbury were trying to do confuse the consumers, so that they repeatingly, think of the motto to try understanding it and what this is doing is reminding the consumers of the chocolate Fuse.
The above example of the chocolate product ‘Fuse’ being improved helps CS to meet their objectives because when there is a change in the market because it allows them to compete harder with their rivals who are also making changes with their products. If the product has been successful then it will help CS growth and income to increase, which then can be focused on the performance of the employees who will also help CS to achieve their objectives.
Power culture:
Power culture was valued by CS because when Cadburys limited was only a small business, one person had an overview of the entire business, and that one person made risks, so that Cadburys will grow. However CS doesn’t belief in this type of culture now because CS a world wide business, and as business grows, it becomes harder to operate successfully with power culture.
This type of belief was used to help to achieve objectives for Cadbury and it was achieved because the person who, made the risks had the confidence and motivation that Cadbury’s will expand to a world wide business. The objective for growth was done successfully because to even to expand more Cadbury’s merged with Schweppes to become CS PLC, who are now a global millionaire company. That proves that the ambition and motivation that one person had to expand the company was successfully done.
Role culture:
Role culture is not believed or valued in CS because it is worked in a bureaucratic manner, which the employees are expected to behave normally. The employees are expected to follow the rules and be discouraged on individualism, which CS doesn’t operate like that.
This belief affects CS because treating employees in a ‘bossy’ way will unmotivated them, which then affect the quality of the production. There will be poor quality control causing them to produce poor products, which the customers and suppliers will be unsatisfied with. Poor motivation will mean there will be a high labour turnover because employees do not like the way that CS is treating them. This will cause a bad image on CS, who will be affected because there are no recruits coming to join, no products be sold or eaten, no income and the expansion of the company is decreasing always. Also the skilful employees will be leaving because of the bureaucratic manner, causing there to be a skill shortage in CS, which means that the quality control, the quality circles, growth, and income will be affected. The process of everything can be slower because role culture beliefs that employees should follow rules and that there should be no individualism that he/she has suggestions and opinions on something. This can affect the performance of the employees because they would be even more unmotivated, which causes them to ‘slack off’ in their work, causing them to slow down process e.g. the production process would take slower because the employees would be unmotivated to do their work. This affects CS objectives because it means that the company will grow at a very slower rate due to slow production and there will be a slower rate for income. This all affects CS and makes it harder for them to compete with their rivals because they might be producing at a faster rate.
Cadbury’s Culture arises from the traditions, beliefs and values of the Quaker family. This is how Cadbury adopted the paternalistic management. It includes religious beliefs, attitudes towards alcohol, the food that you eat and the importance of attaching to family life. The Quaker‘s cultural values are very strong and can impose important constraints on the business activity. For example, Cadbury finds, it would be unwise to try to sell products that are seen to insult religions or people, and it would be foolish to try to make people adopt working practices that are disapproved of by the cultural grouping. The reason why Cadbury is successful is because it makes best use of its opportunities, which therefore allows decision making understood.
The organisational structure (OS1) of CS is:
Group structure (OS2 below) Cadbury Schweppes has six business regions which comprise North America Beverages, Europe Beverages, Europe Confectionery, Americas Confectionery, Asia Pacific, and Africa, India and Middle East.
As you can see above these are hierarchy structures that contain in CS. The layers of Line Managers and the layer Clerical Support assistants are broken on further there are more. There is just not enough space. This structure is hierarchical.
CS type of organisational structure is between hierarchical and flat structure.
Flat structure does not have many layers, which means information is sent quickly; with less complication or misunderstanding; therefore it produces the correct result. Due to having a Flat structure communication is easier, which can make clear information and understanding between each layer, therefore when decisions are made, they will be specific to advice/order instructions.
Flat structures help CS to achieve their objectives because making the communication skill is easier, which will improve time and cost to CS. This will then give CS extra time and money to focus in their objectives e.g. CS can concentrate there time and money on a new product, which could increase CS growth and income. The extra time can be spent on recognising and developing employees, so that they feel part of the team, which will then increase their motivation towards CS. This shows that flat structures are a wide span of control. Other benefits of using a wide span of control also offers better decision making authority for subordinates and could improve job satisfaction.
Hierarchical structure is based on distinct chain of commands from Managing director to Clerical Support assistants (according to CS). Decisions are made at the top and pass down. Such organisational are usually based on clearly defined procedures and roles.
Hierarchical structures help CS because it is a narrow span of control, which means there is a tight control and close supervision. This can help CS because they then can see which area of the business needs to be improved e.g. improved to be more competitive with CS rivals. The narrow span of control also improves the performance of the employees because it allows better co-ordination of the activities, which can motivate employees to perform better in CS and try to help CS to achieve their objectives. This structure allows managers to think and plan without getting any daily hassle, which can help CS to meet their objectives because the manager has time to plan how to meet their objectives efficiently and effectively e.g. the manager has the time to think of the objective for growth by producing a more wide range of products. Also the manager has the time to consider on the benefits of the employees e.g. the manager can think of ways to motivate the employees so they will help CS to achieve their objectives.
Types of Organisational Structure:
There are a number of different types of organisational structure. The following are the four main types associated with businesses today:
- Functional structure
- Product organisation
- Holding company
- Matrix organisation
Functional organisations are usually organised through the specialist functions that each department has to offer. This type of structure is seen most often where there is only a single product or service on offer by the company. A good example of a company that is organised to this style is British Airways. They would be a centralised organisation that has several hierarchical levels within the company. The first level would be broken into departments like finance, personnel, marketing and so on where other levels would then be identified.
Product or market organisation is very similar to functional organisation as it is based around lines of authority, but the difference is that the first level is divided into geographical locations rather than departments. Then within each geographical location you then begin to find the more traditional lines of authority. Marks and Spencer is a good example of this structure. All the stores in a certain region will report to the area manager, who then reports to the head office. Yet within each store the department managers still have to report to their store manager.
A holding company is very similar to that of a market structure, also known as divisional structure. A good example of this was British Rail before privatisation. British Rail was the main company, but there were several internal departments within the main one, e.g. Network South-East, Cross Country Sprinters services, main line routes up the east coast and the west coast. These were all independent divisions of the same overall company.
Matrix structure is associated to a company that produces many different products, but each product has to be managed simultaneously. CS is a good example of this as they produce many products. The distribution manager, maintenance manager, quality manager, sales and marketing manager all must communicate with the manager for each production team at the same time, not just one product at a time. The lines of command go from one department to several others, up and down, not just downward.
How management style, Culture and Organisational structure interrelate
Management style, culture and organisational structure interrelate together in Cadbury because they all work together to help the business to achieve its objectives; in order to lead a successful business.
Cadbury has strategies for the organisation, continually to motivate members of staff to support this process, and market change within the organisation.
Management style, culture and organisational structure interrelate together in Cadbury because they all work together to:
- Develop Strategies: CS good management involves long-term or sometimes strategic planning. Without members of staff (employees) at CS having a clear idea of CS’S goals, employees don't know where the CS is going, or the best means to achieve the goals. An institution needs to define where it's going (the vision), why it's going there (the mission), and how to get there (the strategies). It will then be easier to use this process to work cohesively towards organisational goals. Tools in this section for helping you develop a coherent strategy for your organisation include the affinity technique, force field analysis, SWOT analysis, and strategic analysis. Due to this employees at CS would feel they are part of the organisation.
- Marketing Change: Quality improvement is about continued readiness to make changes towards improvement. However, every change of attitude or practice implies advantages and disadvantages. For people to accept a change, the advantages always have to be greater than the disadvantages. To promote the idea of change, you need to market its advantages. Tools in this section that will help you market change include developing a marketing plan, stakeholder analysis, and negotiation techniques. An example of making changes towards improvement, is when CS creates a new chocolate bar; for instance the chocolate bar, Fuse. It was the highest selling chocolate in the year 1996. People accepted the chocolate because it was different, which means that CS filled a gap in the market. It also reached the consumer by promotion strategies. Every promotion had a meaning, for example the bill board promotion for fuse used a motto that was confusing. That’s what CS were trying to do confuse the consumers, so that they repeatingly, think of the motto to try understand it and what this is doing is reminding the consumers of the chocolate Fuse.
- Motivating People: Motivating people to perform to the best of their capabilities and in the best interests of the organisation are a huge task. Important elements that CS uses in motivating their includes leadership, clear organisational and individual goals, rewards based on performance of staff, and participatory supervision. CS helps to motivate their staff also by including developing a supervision visit plan, effective meeting management, and techniques for solving conflicts.