Decentralized decision making. Geographically based. Decision making is a form of empowerment. It will help the manager have a more fair-based compensation in the organization and in deciding on tasks assigned to employees at different hierarchical levels. Unclear roles: When members do not know what is exactly expected of them, then they tend to become de-motivated towards performing well. Roles should not be ambiguous and each member should be given his share of work in order to improve team effectiveness. The store manager is responsible to a regional manager. Any changes to the organization or management in a company, is undoubtedly going to have an effect on all of this. Internal and external environment is considered at most in systems approach and efforts are done to achieve established goals. These groups are formed as a result of social interaction occurring within the organization such as a friendship group or an interest group. Good examples of businesses which use a decentralised structure include the major supermarket chains like WM Morrison and Tesco. Divisional organisations are commonly divided into smaller units of operation with each division being aligned to a sales or production unit with supporting sales, production, finance, HR, and marketing resources operating under a departmental manager but responsible to the unit manager and then upwards. The diagram below shows three different ways that organisations make decisions; centralised organisation, vertical decentralisation and horizontal decentralisation. Also, managers will plan resources accordingly to ensure that employees have the necessary resources required to motivate him/her to perform a certain task. Open communication: It helps in avoiding hidden conflicts since members are able to freely express their views. Following are some of the features of organisational structure at Tesco, Flexible environment helps in increasing adaptability to change, Shared culture and beliefs, increase employee loyalty towards the organization and hence, his performance, Bureaucratic structures and cultures have been replaced with a decentralized structure if employee participation and flexibility has to be increased, A rigid, inflexible culture hinders growth as an individual and thus, creates employee resistance towards work, By having a shared culture, employees are better able to understand customers, A wider span of control, reduces the chain of commands and improves employer-employee relations, Inter-departmental coordination is improved in a decentralized structure. It is difficult to try to execute both management and organizational theories as a psychological contract between the employer and employee still needs to be maintained. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. Empowerment can be defined as giving the employees the responsibility of what they do. An example of a decentralised structure is Tesco the UK supermarket chain. In addition, a centralized structure allows a faster, easier to undertake organization-wide activities. Such leadership style will help in clarifying roles of employees in the organization and make their job descriptions more clearly by structuring the tasks required. Attracting Motivating And Retaining Generation Y Management Essay, Importance Of Wellness Programme In Organization, Analysing Project Leadership Teams and Group Dynamics, CustomWritings – Professional Academic Writing Service, Tips on How to Order Essay. Following are some of the features of organisational structure at Tesco. Also, goals should be assigned that are challenging as well as doable. The team members can communicate with each other through emails, instant messaging, videoconferencing, groupware, etc. Functional organisations are organised according to technological disciplines. Zappos and Holacracy - the Ultimate Flat Organisational Structure? Who provides strong leadership when needed (e.g. Following are three different types of organizational structures. For the top management, motivation could be improved through achievement of self-actualization (Smit, 2006; Stimpson, 2010). We’ll occasionally send you promo and account related emails. An example of a decentralised structure is Tesco the supermarket chain. By clicking “Proceed”, you agree to our terms of service and privacy policy. All students preparing for mock exams, other assessments and the summer exams for Edexcel A-Level Business. Are they actually putting 100 percent effort into their work? Non-Financial Methods to Improve Employee Performance and Motivation, Internal and External Influences on Corporate Objectives, Social Change: Consumer Lifestyles and Buying Behaviour, Edexcel A-Level Business Calculation Practice Book, Advertise your teaching jobs with tutor2u, Decisions are made closer to the customer, Decision-making is not necessarily “strategic”, Better able to respond to local circumstances, More difficult to ensure consistent practices and policies (customers might prefer consistency from location to location), May be some diseconomies of scale – e.g. A five stage model of group characterizes group according to the following stages (Robbins, 2010): Forming: The group members do not know each other really well and there is uncertainty as to how to carry out the group work. Employee empowerment is high. Good way of training and developing junior management, Harder to achieve tight financial control – risk of cost-overruns. An organization that is focused on producing more and more rather than managing people, a task-oriented style would be preferable. In this approach it is assumed that systems are man-made. Empowerment can increase motivation and hence increase the labour output. http://www.sed.manchester.ac.uk/idpm/research/publications/wp/igovernment/documents/igov_wp07.pdf. However, in some industry such as the banking industry, many financial information and client information are confidential. An emotionally instable person would be having frequent conflicts with its co-members; he would be less punctual or have poor attendance. in a crisis)? Norms are set, the group behaviour also largely depends on the other hand are... Is of concern in order to achieve tight financial Control – risk of leakage of information! Traits which are usually known as the big 5 traits that affect the individual behaviour of a person conflicts! 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