Category: Organizational Structure

The effectiveness of corporate enterprises depends on numerous factors, and one of the most important of them is the organizational structure. Essentially, the way responsibilities are distributed among employees in the company directly affects its operations and internal processes. There are several organizational structures which are extensively utilized by enterprises around the world, and the four main ones are functional, service line, matrix, and flat. At the same time, each of these structures can also be successfully applied in the sphere of healthcare in a clinical environment.

Functional organizational structure provides organizations with a clearly defined hierarchy which must significantly facilitate operations. The hierarchy consists of different levels, where employees are grouped in terms of their skills, roles in the organization, and specialty (Duncan et al., 2018). The standard name for each hierarchical level is the department which is governed by a certain leader. The entire structure also has one main leader, who is usually called a chief executive officer and who is tasked with overseeing the organization and work of different departments within it. The primary advantage of the functional structure is clearly defined role distribution and well-defined boundaries, which contributes to the high level of expertise of every department. Functional organizational structure is the one which is used in many clinical environments, including in the hospital I work for. The mission statement of functional organizations can be the following: We are committed to delivering a wide variety of healthcare services of the highest quality to all patients. The statement reflects the fact that although functional organizations are grouped into departments with clearly-defined responsibilities, they deliver comprehensive care to patients.

The service line is another organizational structure which is commonly used in the clinical setting since it delivers effective results to hospitals. The service line structure does not rely on departments but rather on actual service lines which simultaneously include financial, operational, and strategic aspects (Daft, 2020). Service line structures are often utilized by larger organizations which need to address certain inefficiencies of their services (Duncan et al., 2018). In the sphere of healthcare, service line organizations are based on providing services to patients who share the same attributes. For instance, there can be service line organizations targeting the needs of clients requiring inpatient or outpatient care or those who have conditions belonging to the Major Disease Categories. Thus, service lines tend to have a particular scope of operation addressing the specific needs of patients. For instance, there can be a cardiovascular service line which provides all basic services in the field of cardiology. The structure in question can be characterized by the following mission statement: We are dedicated to providing professional and specialized healthcare services for people with cardiovascular conditions. The mission statement highlights the ability to deliver specialized care by the organization due to its narrow scope.

Matrix is also a viable organizational structure which many healthcare organizations employ and successfully implement in the clinical setting. Matrix is a structure which integrates both the function and product, moreover, the latter is the end result of the former (Daft, 2020). Instead of pursuing only the standard rigid hierarchy, matrix enables organizations to superimpose a horizontal management structure over the vertical one. Essentially, the matrix is based on dual authority relationships where subordinates have two leaders to report to. At the same time, the matrix provides more flexibility since it implies working in specialized teams which oversee particular areas such as cardiology. Matrixes enable leaders to be accountable across the entire organization, which lets the hospital address possible overlaps and thus improve the efficiency of operations. Based on the above-mentioned details, the mission statement of matrix organizations can be the following: We value the time of your clients and therefore provide comprehensive, personalized, and efficient services. The mission statement highlights the capacity of matrix structure organizations to deliver an exhaustive set of services in a fast manner and in accordance with the needs of the patients.

Finally, there is also a flat organizational structure which is used primarily to establish a more decentralized clinical environment and decision-making. Organizations embracing flat structures remove the existence or minimize the significance of hierarchies and make the chain of command more horizontal (Scandura, 2020). Although flat organizations still retain line authority, professionals working directly with patients receive more freedom in terms of their decision-making. As a result, flattened organizations tend to overcome many problems related to bureaucracy. The mission statement of a flat structure organization can be the following: We strive to provide inexpensive and personalized services to all patients while promoting their safety and positive health outcomes. The mission statement demonstrates that due to decentralization, flattened organizations can provide more patient-oriented services which are also low-cost due to less bureaucracy and fewer managers.

Healthcare organizations can choose among several effective organizational structures, the most notable of which are functional, service line matrix, and flat. Each of the structures has its strengths and weaknesses; therefore, it is essential to take into consideration all factors the organization faces. The functional structure is the one which is used in my workplace, and its main characteristics are strict hierarchy and the provision of specialized but comprehensive healthcare services.

References

Daft, R. (2020). Organization theory & design. Cengage Learning.

Duncan, W., Ginter, P., & Swayne, L. (2018). The strategic management of health care organizations (8^th ed.). John Wiley & Sons.

Scandura, T. (2020). Essentials of organizational behavior: An evidence-based approach (3^d ed.). SAGE Publications.

In general, the organizational structure of a company specifies its strategies, authority, formal reporting relationships, controls, procedures, and decision-making processes. Organizational structure helps to formulate specific strategies that may be required for the improvement of the firms performance and competitive advantages (Hitt, et al., 2017). Being one of the largest online retailers in China, Vipshop Holdings Limited may be defined as a holding company that performs offering of goods and product distribution on its e-commerce platform (Reuters, n.d.). In accordance with its divisional structure, the company conducts its business through its consolidated affiliated entities and subsidiaries in China (Reuters, n.d.). In general, the divisional structure is highly suitable for companies that operate with independent business units that offer distinct and recognizable products. In relation to Vipshop Holdings Limited, the company has a main office in China that execute control over warehouses both in China and abroad and establish contacts with independent buyers. At the same time, the performance in the main office is provided by several departments (financial, logistics, technical, marketing, and human resource).

The organizational structure of Vipshop Holdings Limited corresponds to the strategy of its development that aims to enter the international market. After the collaboration with Guangzhou Customs in 2014, the company established more than one thousand buyers teams in ten countries across the globe (Welcome to Vip.com, n.d.). This cross-border business strategy implies local self-support and direct purchasing of certified products without postages and taxes.

The companys management is represented by:

• Eric Ya Shen, a co-founder, the Chairman of the Board of Directors, and Chief Executive Officer;
• Arthur Xiaobo Hong, a co-founder as well, the Vice Chairman of the Board of Directors and Chief Operating Officer;
• Donghao Yang, Chief Financial Officer;
• Daniel Kao, Chief Technology Officer;
• Yizhi Tang, the Senior Vice President of Logistics (Management, n.d.).

The Board of Directors of Vipshop Holdings Limited consists of CEO, Vice Chairman, two directors, and five independent directors. Independent directors of Vipshop Holdings Limited are the companys former executive directors who may help to improve the standards of its governance and corporate credibility.

Concerning the companys business structure, Vipshop Holdings Limited uses the Variable Interest Entity (VIE). According to Guo (2014), this structure is comprised of a series of contractual arrangements that enable relevant parties to obtain a degree of control over, as well as a substantial economic interest in, certain companies without having to directly own their shares (p. 569). As a matter of fact, the VIE is typical for the majority of Chinese companies in cross-border settings that are listed on the stock exchanges of the United States (Guo, 2014). This model is historically determined by the limitations or restrictions on foreign investment and direct ownership in particular Chinese industries. In the present day, the establishment of the VIE allows domestic firms to gain access to foreign capital markets through offshore listings (Guo, 2014, p. 575). The structure is highly attractive for investors in the sphere of information technologies and online retail. At the same time, there are substantial concerns related to the efficiency of the VIE structure. Nevertheless, China is subsequently moving from a regulatory country to a more market-oriented state where direct ownership will be accessible in all spheres.

References

Guo, L. (2014). Chinese style VIEs: Continuing to sneak under smog? Cornell International Law Journal, 47(3), 569-606.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Competitiveness & globalization (12^th ed.). Cengage Learning.

Management. (n.d.). Vip.com.

Reuters. (n.d.). Vipshop Holdings Ltd  ADR.

Welcome to Vip.com. (n.d.). Vip.com. Web.

You have started up a small durable medical equipment company. Fortunately, it is doing well and growing. At what point do you need to consider putting in a formal organizational structure? What would be your initial start up design for an organizational structure? Explain your response.

When starting a business venture it is essential to think over major details. It goes without saying that organizational structure should be worked beforehand. However, when starting a small company it is possible to work out the structure when some definite results will be available. Thus, when my new-started company is stable, I will think of development and implementing formal organizational structure. By stable company I mean that the profits of my firm enable to expand the staff and develop business. According to Senior and Swailes (2010) any changes in organizational structure can impede the process of development (117).

So, the changes in organization structure should be thoughtful and rapid. McLaughlin and Kaluzny (2006) suggest that the changes in the organizational structure should enable employees to take responsibility for change and continuous improvement (489). Thus, to my mind, there is no need to expand the staff too much; every employee should feel responsible for the improvements in the company. In fact, it can be beneficial to hire minimum employees so that everyone could know distinctly what his/her responsibility is and what he/she can do for company development. At this point it is possible to exploit the vertical communication pattern with some features of transactional pattern.

Thus, the company will have quite strong hierarchy and communication will be implemented vertically. However, it is important to give the opportunity to make suggestions or criticize some decisions (of course, reasonable criticism will be taken into account). Thus, strict hierarchy will ensure order and transparency. Moreover, such hierarchy will become one more motivation factor since employees will explicitly see the opportunities for their promotion and rewarding. On the other hand, transactional organizational pattern will encourage employees to take the responsibility and be active.

Reference List

McLaughlin, C.P., Kaluzny, A.D. (2006). Continuous Quality Improvement in Health Care. Sudbury, MA: Jones & Bartlett Learning.

Senior, B., Swailes, S. (2010). Organizational Change. Essex, UK: Pearson Education.

Twitter is called a microblog for its real-time social activity on its pages. Five hundred million social network fans visit the resource daily, making it an effective marketing platform for business and brand promotion. Besides the promotion of the brand, businessmen use the platform the search for operative information, research competitors, and for finding out the topical news of the current day. Taking into consideration the number of users of this social network, a particular brand can use the site to search for working staff and collaborations with other brands to exchange the audience. First of all, businesses are interested in the possibility of advertising their services through a large number of hashtags. Because of the sites limitation of characters in a single post, a brand needs to put its offer in a few lines briefly and succinctly. It may seem like a minus, but the generation of millennials, who are the key audience of Twitter, are much more willing to accept short information than texts with a large number of characters.

One can make promotional tweets for advertising, which will have a unique marker on which only interested users will stop. In addition, the label promotional tweet itself as if it were an indication of honesty to customers. After all, the brand could use the technique of clickbait, thereby taking time from the reader of the post, which can cause an adverse reaction on his part. In order to help develop an account for a business, Twitter offers a Promoted account service. The competent development of the report, which has the edge between seriousness with a drop of humor, will be more attractive than accounts with dry information about goods or services provided by the brand (Al Amri, 2020). In addition, such an account will always be on the ear because people will share funny posts, tweeting them, thus sharing the account with their subscribers. The site has a large number of tools for doing business.

Despite the number of advantages of using the site for business, of course, it has its disadvantages. First of all, it is the start of the development of the brand, which requires a considerable investment of money and effort, search staff who will deal with SEO branding and analytics of attendance. The first time the companys posts can get lost in the millions of others, even using the same hashtags. Then you can include huge competition in the problem because large companies have long had their accounts, audience, and reach. In addition to the competition, one shouldnt forget that Twitter is an online platform that sometimes crashes. Crashes in Twitters servers, and bugs in the code, can reduce the number of followers or the same audience coverage. At the same time, some companies use unfair promotion methods, using bots or clickbait headlines. Bots can be used on account of their competitors, and then they can complain to technical support to have their account removed.

Social media has taken a crucial role in our lives. Through them, we communicate with our loved ones, find out news about the world, and watch entertainment content. We can say that they have become a modern television in which a person spends most of his free time. With this in mind, mass culture has moved smoothly into social media, including Twitter (Al Amri, 2020). On the platform, everyone can find accounts, news, and entertainment content to their liking, from serious news to humor, science pop, and other entertaining, educational resources.

It is no wonder that since time appeared, accounts of famous personalities such as Elon Musk, Jeff Bezos, and other prominent businessmen, who, in addition to their businesses, share their impressions on certain events. Famous people use Twitter not only for their promotion but also as a platform for scandalous statements. For this reason, the concept of Cancellation Culture first appeared, followed by the term Black Twitter.

The culture of cancellation is a boycott of a specific person or company. For example, we can remember how Donald Trumps account was banned and who repeatedly used Twitter to make scandalous statements about controversial topics. The account of the former U.S. president was banned three days after his constituents stormed the Capitol. This whole situation perfectly describes how one persons statement on a social platform can affect the decision of a mass of people. Moreover, a case in point is the story of Disney and actress Gina Karana, who played the Mandalorian series. The reason for breaking the contract was unflattering posts of the actress on Twitter regarding wearing masks and the U.S. presidential election.

In addition to statements by famous personalities, less popular people can create their own movement and publicize it to the whole site. For example, the hashtag #MeToo was launched in 2017 by victims of sexual harassment by film director Harvey Weinstein. Actresses, camera crew members, assistants, and other personnel who were somehow harmed by the directors actions gave the cases massive publicity. As a consequence, Harvey Weinstein was sentenced to 23 years in prison, deprived of all awards from the film academies in general, and the cancellation of the director as a creative unit. The hashtag itself is used to this day, in which women and men can share their painful experiences, get support from others and call to account people who have either abused them. Twitter and other social platforms have long influenced the culture and opinions of the masses, politics, and companies.

As of December 3, 2021, Twitter is undergoing radical changes, namely a change in the companys leadership. The new CEO is Parag Agrawal, who, with his arrival, announced a complete overhaul of the companys organization. At the heart of the reorganization is the transition to a management model of the general manager, who will allow more precise and faster parsing of work processes and will lead all major teams involved in the development, product management, design, and research. The new executives goals are to overhaul the companys consumer division. Consequently, Twitter is expecting changes in advertising algorithms and price increases for business rates, which the users of the site itself will directly evaluate. Most likely, the first-time changes in organizational moments will be subjected to criticism from users. Any radical changes, which will obviously be present, cause an adverse reaction because people are used to the old algorithms (Al Amri, 2020). Later, people will get used to the new solutions, begin to see their usefulness and convenience, and literally, all the old complaints will disappear in a year.

In 2022, Twitters management changed the staffing arrangements again. This time they replaced general managers Kayvon Bakepour and Bruce Falk, who were responsible for the consumption and revenue division. Apparently, the CEOs were not happy with the companys profitability and the drop in subscribers reach. At the same time, Twitter created a problem for Elon Musk, who criticized the managements decision to delete Donald Trumps account. In his opinion, by such actions, the site limits peoples freedom of speech, and if even public people can be blocked, then what to say about ordinary users? Against the backdrop of such statements, Twitter began to lose its audience, with some proclaiming the death of Twitter as a social network (Al Amri, 2020). Twitters business of late is challenging to call optimistic, but perhaps a change in the CEO can change the situation.

Twitter, like any social network, is certainly not perfect and has a vast amount of disadvantages. This paper has already raised questions about bot scamming and the culture of cancellation, which in the wrong hands, can limit freedom of speech or remove it altogether as such from the site. Moreover, the stability of the servers leaves much to be desired. Only for 2022 have already been about a dozen cases of server shutdowns due to errors. Despite management and team changes in 2021 and 2022, the social network is still losing audience reach. Coverage returned for a time when SpaceX founder Elon Musk announced plans to buy the social network and extensively reorganize the company. He especially emphasized changes to the free speech policy. The deal failed because of military conflicts around the world, including Ukraines war against Russia.

Consequently, Twitter could return to the lead among social networks by changing censorship so that everyone has the right to express their opinions. Of course, sometimes its controversial, but thats what liberal values are built on changes in the organization of work processes. The method of general manager is effective when there is such a manager in each department, rather than one person responsible for all departments (Al Amri, 2020). It is necessary to set up feedback from the users of the site, listen to constructive criticism, and not be afraid of mistakes.

In 2021 users of the site complained about a large amount of intrusive advertising. The place was compared to another social network Facebook, which has a distorted ratio of ads to regular posts. Therefore, changes in the algorithms of advertising offers, promotions, and other things will not be superfluous for the company. Attracting famous personalities to invest will bring the company more publicity among the population, as was seen in the situation with Elon Musk. Perhaps more people invest in companies and report on them. The more ordinary users will be interested in using the site.

Twitter is one of the first social networks of the 2000s. Despite the decline in audience reach, it is still among the top most popular platforms for ordinary users and businesses. Millions of people every day share their impressions, jokes, and opinions on the Web. It has a broad influence on the public masses and helps people in publicizing scandalous and problematic situations. But the site still needs a major reorganization to continue being one of the most popular social networks. Despite the fact of continuous growth of Twitters popularity and adaptation to personal needs, this website should be more flexible.

Reference

Al Amri, J. (2020). Twitter privacy concern: The effect of Twitter profile. International Journal of Computers & Technology, 20, 2237.

Introduction

Organizational structure is an important determinant of the organizations performance. Depending on the size, scope, and character of the operations, the structure can improve or disrupt the products quality. The following paper analyzes the organizational structure of a small business organization.

Chart Description

The chart used for the paper is a reconstruction of the organizational structure of a small business involved in the production of customizable goods. The company distributes its products online. As can be seen from the chart, the organization utilizes the vertical organizational structure. At the top of the organizational hierarchy is the companys CEO, who is responsible for the firms overall success and ensures the consistency between the planned direction and the actual performance. The CEO in the organization in question has the authority to make decisions on a strategic level. An administrative assistant provides necessary assistance to the CEO, mostly in the domains of documentation. An administrative assistant in the company in question also serves as a representative of the CEO in the cases where it is necessary to communicate certain information to the staff (Reitzig & Maciejovsky, 2015). Since the assistant works mostly with the CEO, the position has the only horizontal link in the chart.

The production department is responsible for manufacturing the products by the customers instructions. The company does not own facilities, and the manufacturers operate in several workshops in different locations. The instructions are initially processed by the customer service department, responsible for receiving feedback and handling quality complaints. These are the only two departments that operate in coordination due to the high volume of tasks and information processed daily. Also, the companys product is highly customizable, which introduces additional complexity to the production process and necessitates the existence of reliable communication channels between the customers and the production team (Yinan, Tang, & Zhang, 2014). The main bulk of communication is done remotely.

The remaining departments operate independently of one another and communicate either with their manager or, in rare cases, the CEO. These departments include delivery and logistics, IT and web design, human resource management, and marketing. Except for the marketing department, whose tasks include the promotion of the companys products on the Internet, these departments are comprised of no more than four employees. The likely cause of such a policy is the current scale of the firm.

Functionality and Observations

It should be mentioned that the current organizational structure has several disadvantages. The main area of concern is the lack of meaningful communication between most of the departments. In some cases, the production department is forced to comply with the quality criteria that are irrelevant to the manufactured goods. In the same manner, the customer service department may be unaware of the planned changes in the pricing or timeframes of the production process until immediately before the implementation phase. The design of the order placement form has also been suggested to be flawed, but due to the lack of communication with the IT department, the problem remains unresolved. While the vertical structure does not discourage employees feedback, the organization does not have a system or individual responsible for the delivery of the feedback in a consistent manner. As a result, the majority of suggestions remain unaddressed, compromising the quality of the final product.

Conclusion

As can be seen, the selected organizational structure is only marginally compatible with its business model. The strict hierarchy, combined with a lack of communication channels, creates considerable setbacks in the value chain. Considering the scope and scale of the firms operations and the highly customizable nature of the product, a flat structure can be considered as an alternative.

References

Reitzig, M., & Maciejovsky, B. (2015). Corporate hierarchy and vertical information flow inside the firm: A behavioral view. Strategic Management Journal, 36(13), 1979-1999.

Yinan, Q., Tang, M., & Zhang, M. (2014). Mass customization in flat organization: The mediating role of supply chain planning and corporation coordination. Journal of Applied Research and Technology, 12(2), 171-181.

Appendix A

Abstract

In this paper, I have chosen the product “Farm to Finger”. I will discuss the different kinds of strategies used to operate this business effectively and efficiently to sustain it in the organization. At first, I will provide the background of the product then I will explain the various strategies used in the product market. Secondly, I will elaborate on the financial strategies used by the company. Then, I will mention the market potential investor used by this company to operate the financial activities smoothly. Moreover, I will explain the different organizational strategies that we have used to achieve the target goal. At last, I will discuss some of the risk associated with this business and some of the measures to overcome those risk.

Keywords: product market, organizational, financial, investors, risk, strategies

Determining the organizational strategy of Farm to Finger

Farm to finger is the agricultural product marketer that directly connects to the farmers and assemble the local products from them and deliver to the customers. It was established to maintain a gap between the farmers and customers. It provides great quality fresh and organic products at a reasonable price. Now, this company is in survival stage where we have anticipated the requisite for cash to keep the company constant and cost-effective. In this stage, we have already made the financial projection of our business and also we have evaluated the income statement, sales revenue, balance sheet, and cash flow to make the proper financial activities. We have also recognized the associated risk and used some methods to mitigate those risk.

The strategy used for product-market

A product marketing strategy goes hand to hand with the product strategy. It is the plan that recognizes and characterizes what we need to achieve. A proper strategy focuses on everybody from the CEO to sales to consumer support in a similar direction. It aids in keeping us concentrated on our customers and the target market (Hellmann & Puri, 2000). The agricultural product marketer is to protect the services engaged with moving an agricultural product from the farmers to the buyers. Likewise, we focus on marketing the products by adding value to those products with different methods by arranging, sorting out, coordinating, handling, repackaging, rebranding, and marketing agricultural products so as to satisfy both the farmers and the buyers. Hence, the basic features of this business are gathering, transporting, evaluating, preparing, and utilizing the selected agricultural products.

As we know, nowadays people are being health conscious. So, the product was started with the aim to connect more and more rural farmers to the urban consumers and create a healthy and easy lifestyle by providing highest quality products with natural, fresh and agricultural products. Our target customers are mainly office workers, business person and health freak. Additionally, there are some competitors that exists in the same market but the best part is that we are able to compete with them by mainly using two methods of Porters competitive strategy that are cost leadership and differentiation (Dess & Davis, 1984). Cost leadership because we provide our products with high volume low cost and differentiation as we have maintained uniqueness in our products by not just connecting farmers and consumers but, providing chemical-free products with eco-household products and also listing full information about the products like when, how and where it was produced to make our consumer aware of those products.

Financial Strategy

A financing strategy is crucial for any association’s strategic plan. It sets out how the association intends to invest its overall tasks to meet its goals now and in the coming future. A financing strategy has precise targets, and the actions to be made over a three to five-year time span to accomplish the goals (Anthony, 2019). To run the business effectively we have projected different financial strategies such as income statement, balance sheet and cash flow statement to know how the organization will utilize and deal with its financial assets to seek after its goals. Fundamentally, it outlines the steps to develop the business and achieve our financial objectives.

Strategy for the potential investor market

To make the product or service successful in the market, it should have a recognizable need in the market. Most of the companies get solutions for failed organizations in search of issues. Accomplishment comes through the sale so, for individuals to pay for what you give, they should feel that they need it (Lazi, 2017). Investors will perceive how our products tend to discourse particular issues that the potential customers have. Whatever may be the size of the potential market, we need to first discover our way in. A few organizations begin with a high-end procedure and after that go to the majority whereas, others search for a lower-income market to help build up a mass intrigue. With a particular purpose of entry, we would be able to depict to investors a reasonable strategy to utilize the investment that investors give to create and develop the business. There are different types of investors such as friends & family, venture capital, banks, angels, supplier, government, customers, and corporate investors. Likewise, there are two sources of funds that are debt and equity financing (Hovakimian, Opler, & Titman, 2001). The major investment of this business is through equity financing from venture capital and family. Hence, we must ascertain the good investor who can financially support our venture to magnificently sustain in the market for the long run.

Organizational strategy

Organizational strategies give an outline of the actions that we expect to make so as to accomplish our long haul business objectives. Prior to developing its strategy, the organization must contrast how it is in the beginning and how it needs to turn into. Particularly, where it needs to be at a given future time period (Miles, Snow, Meyer, & Coleman Jr, 1978). It must characterize the distinctions and afterward list what it needs to do to achieve. In business, we need a well-characterized plan so as to succeed. Without a proper organizational structure, it’s difficult to set up achievements and realize when we are accomplishing the goals.

The organization strategy is depended on the vision and mission of the business. The company started with a vision to provide our customers with the fresh Nepalese produced agricultural products. To provide information to the consumers by offering products with a complete product line of when, where, and how the products were produced to create value for the products. Also, to support organic farms that keep our earth and water pure. Moreover, the mission of this business is to provide the highest quality of fresh and agricultural products with chemical and pesticides free products. We are excited to connect additional number of rural farmers to the urban consumers and create a healthy and easy lifestyle. Further, to maintain friendly working environment where we are eager to serve and ready to educate.

The associated risk to the organization

Risk infers future vulnerability to deviation from anticipated earnings or anticipated results (Maverick, 2019). It estimates the uncertainty that a financial specialist is happy to take to understand profit from an investment. It is inalienable in any business venture, and great risk management is a basic part of maintaining an effective business. An organization’s management has to change degrees of control in regards to risk. A few risks can be legitimately overseen whereas, other risks are generally beyond the ability to control of organization management.

There is some financial risk associated with the business such as liquidity risk, market risk, operation risk, and credit risk that affects the internal and external factors of an organization. Additionally, when a similar business exists in the market then there might be the risk of loss as the consumer may be attracted to another company. Sometimes, the company can invest all the cash in assets due to which it becomes difficult to fund in the next milestone leading to a decrease in sales revenue. Further, there are some measures of risk to prevent the business from the risk are beta, standard deviation, the conditional value of risk, coefficient, and value at risk.

Conclusion

To conclude, in this paper I have displayed my product ‘Farm to Finger’. This is an agricultural product marketer that connects with the customers and farmers. In this business, we collect the local product from farmers and deliver to consumers. This product was started with the aim to connect a huge number of farmers to urban consumers and create a healthy and easy lifestyle by providing the highest quality products with natural, fresh, and agricultural products. We are able to compete with them by mainly using two methods of Porter’s competitive strategy which are cost leadership by providing a low-cost product with high-quality products and differentiation as it provides full information about the product like when, how, and where to the customers when delivering that product. Similarly, we have projected balance sheet, cash flow and income statement for the smooth operation of financial activities to earn sales revenue. Moreover, the major investment of this business is through equity financing from venture capital and also family. We have identified organizational strategies by determining the vision and mission of company to maintain accurate and successful business activities. Further, liquidity risk, market risk, operation risk, and credit risk are risks that are faced by an organization. To overcome those risks I will be evaluating the coefficient, value at risk, beta, and standard deviation.

References

1. Anthony, L. (2019, January 25). Financial Strategies in a Business Plan. Retrieved from https://smallbusiness.chron.com/financial-strategies-business-plan-5107.html
2. Dess, G. G., & Davis, P. S. (1984). Porter’s (1980) generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal, 27(3), 467-488.
3. Hellmann, T., & Puri, M. (2000). The interaction between product market and financing strategy: The role of venture capital. The review of financial studies, 13(4), 959-984.
4. Hovakimian, A., Opler, T., & Titman, S. (2001). The debt-equity choice. Journal of Financial and Quantitative analysis, 36(1), 1-24.
5. Lazi, Y. (2017, October 16). Developing Marketing Strategy for Potential Investors. Retrieved from https://www.lexology.com/library/detail.aspx?g=97e22a8a-8d06-4a4e-8833-0513316ef8e0
6. Maverick, J. B. (2019, July 17). Financial Risk: The Major Kinds That Companies Face. Retrieved from https://www.investopedia.com/ask/answers/062415/what-are-major-categories-financial-risk-company.asp
7. Miles, R. E., Snow, C. C., Meyer, A. D., & Coleman Jr, H. J. (1978). Organizational strategy, structure, and process. Academy of management review, 3(3), 546-562.

To create an effective organizational structure and behavior for Dunkin’ Brands, the company’s structure has to reflect the brand recognition and value locally and internationally. The structure and behavior of an organization can change and evolve, as functions and roles change and evolve (Sandhu & Kulik, 2019). Dunkin’ Brands has to analyze its current organizational structure, its current organizational controls, and its current organizational behavior and human resources and create an implementation plan if operations are to be optimized.

Current Organizational Structure

An organization’s structure is composed of the qualities that the organization has in how it structures its relationships and the division of control, decision making, and responsibilities (Marasi, Bennett, & Budden, 2018). Two main elements in the organizational structure are centralization, which is how much input employees have when decisions are being made, and the level of formalization which is how rules and communication within the company are carried out (Marasi et al., 2018). Dunkin’ Brands organizational structure should reflect its strategy which will let managers know what needs to be done to have the freedom to make the decisions and create the necessary relationships needed (Marasi et al., 2018). As an organization with franchisees, the goals of Dunkin’ Brands and the goals of the franchise owners should align (Berkowitz & Wren, 2013). International management consultants can meet with franchise owners to provide guidance and information so that the owners can agree and commit to corporate strategies (Berkowitz & Wren, 2013).

Dunkin’ Brands is led by a Chairman and CEO, who has executive officers and senior management teams responsible for operations in different national and international regions reporting to him (Dunkin’ Brands, 2019). This type of organizational structure that Dunkin’ Brands has is divisional. The divisional structure of Dunkin’ Brands allows each unit to function independently within the guidelines of the company’s strategic and financial goals (Li, Holsapple, & Goldsby, 2019). Having a divisional organizational structure allows Dunkin’ Brands to have flexibility within supply chains which creates a greater competitive and financial advantage (Li et al., 2019).

Current Organizational Controls

Organizations have to control, restrict, and direct the behaviors and actions within the organizational structure to achieve its strategic goal (Janićijević, 2017). Organizations have five methods of control that they can use. These are work process standardization, knowledge and skills standardization, managerial supervision, direct interpersonal communication, and output standardization (Janićijević, 2017). These mechanisms of organization control can differ in restrictions, personalization, autonomy, and formality (Janićijević, 2017). Dunkin’ Brands has a divisional organization structure in which the most effective method of control is work process standardization, where the chairman specifies the level of performance for each division, leaving it up to the divisions to use their methods to achieve it (Janićijević, 2017).

Management consultants work closely with each Dunkin’ Brands franchisees ensuring that the brand name is protected and that the performance objectives are lined up to the specifications of the chairman (Karmeni, de la Villarmois, & Beldi, 2018). To have a successful relationship between a management consultant and a franchise owner, there should be a balance between autonomy, control, and innovation, which Dunkin’ Brands provide (Karmeni et al., 2018). Dunkin’ Brands franchisees are independently owned and operated, and the owners are responsible for the business decisions and supply chains related to their franchisees (Dunkin’ Brands, 2016). Dunkin’ Brands do not control the labor and employment issues of franchise employees, the recycling and waste management contracts even though franchisees are advised to obey local regulations, and the amount of energy or water each franchise uses even though franchisees are given equipment specifications (Dunkin’ Brands, 2016).

Current Organizational Behavior and Human Resource Practices

The organizational behavior, human resources, and culture of an organization is a mixture of assumptions, values, norms, and attitudes that have helped in creating the success of the organization (Janićijević, 2017). Human resource practices are primarily motivated to create competitive advantages for organizations (Jehn & Bezrukova, 2004). Some of these practices are training, promoting diversity, having a broader vision, welcoming new ideas, and encouraging employee involvement and commitment (Jehn & Bezrukova, 2004). Dunkin’ Brands developed new and more relevant training and communications with the franchisees (Dunkin’ Brands, 2018). Through Facebook Workplace Dunkin’ Brands and its employees can have increased communication and engagement (Dunkin’ Brands, 2018).

Dunkin’ Brands promote having a diverse workforce, franchisee, and supplier base (Dunkin’ Brands, 2018). Dunkin’ Brands encourages open discourse for employees of all levels that generates and promotes learning, new ideas, innovation, and healthy relationships (Christensen, 2019). Dunkin’ Brands consists of employees of different ages, genders, cultures, races, and religions, and franchisees in different countries with different cultures, and focuses on an inclusive workplace, using inclusion to diversify the workforce, and having culturally relevant marketing programs that will strengthen Dunkin’ Brands position in the market (Dunkin’ Brands, 2016).

Analysis of Significant Behavior Issues

In a changing global economy, a challenge that organizations face is creating and maintaining successful collaborations (Odrakiewicz & Zator-Peljan, 2012). Dunkin’ Brands and its franchisees may face several financial issues, such as the availability of financing, competition for franchise sites, negotiating lease and financial terms, and the cost and availability of labor (Dunkin’ Brands, 2019). There may be conflicts with countries and franchisees may find problems securing the necessary permits that the domestic or foreign governments require, customers in foreign countries may not like the taste of the products or may not be accepting of the company (Dunkin’ Brands, 2019). Other issues may occur if a proper location for a franchise cannot be found, there is a small pool from which to choose and train qualified employees, and the weather conditions or other natural disasters (Dunkin’ Brands, 2019). Dunkin’ Brands needs to understand all aspects of the issues the organization and franchisees may face and gain the necessary knowledge needed to be successful when facing challenges in different countries and cultures (Odrakiewicz & Zator-Peljan, 2012).

Development of a Proposed Implementation Plan

To support operational optimization Dunkin’ Brands has to have its current organizational structure reflect its strategic plan. The objectives of the management consultant are to make sure that the goals of franchise owners align with that of the organization, that the brand value and name are protected. There has to be a balance between the rules of Dunkin’ Brands and the actions of the franchise owners, open discourse, and a diverse workforce for the organization. When there are financial issues or conflicts due to international or cultural differences, the organization should take steps so these issues are addressed as soon as possible.

Dunkin’ Brands can take preventative measures by having human resource plans that adhere to the ethical and business standards of the countries and cultures that business is done in (Jang, Kim & Yoo, 2017). Dunkin’ Brands should have strategies and action plans in place that supports and sustains strategic behaviors and decisions, starting from the recruiting decisions, to training and development classes, and having proper policies in place, so employees know where to go if any situation arises. There should be training provided for franchisees and employees as having sustainable human resources achieves a competitive advantage against the competition (Jang et al., 2017). The organization needs to include diversity management as part of maintaining a positive work environment, where everyone and every contribution is valued (Shaban, 2016).

Dunkin’ Brands is a global organization that is affected by changes in the financial, economic, and technological environment (Janićijević, 2017). To achieve its goals, Dunkin’ Brands must adapt its structure and function to the environment from which it operates (Janićijević, 2017). If Dunkin’ Brands achieves a balance between external factors and internal factors, its performance will increase and its goals will be met (Janićijević, 2017).

Conclusion

Currently, Dunkin’ Brands has an organizational structure and behavior that works. To achieve a structure that not just works, but is effective, Dunkin’ Brands has to understand and accept that change and evolution inside and outside the company are inevitable (Sandhu & Kulik, 2019). Analyzing its current organizational structure, controls, behavior and human resources, and creating an implementation plan for an optimal solution is a step in the right direction to create a leadership operational plan.

References

1. Berkowitz, D., & Wren, B. M. (2013). Creating strategic commitment in franchise systems: establishing the link between leadership, organizational structure, and performance. Journal of Small Business & Entrepreneurship, 26(5), 481–492. https://doi.org/10.1080/08276331.2013.876763
2. Christensen, K. (2019). Q&A: The former CEO of Dunkin’ Brands explains the importance of creating a “challenge culture” in every organization. Rotman Management, 88–91. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=bth&AN=135905688&site=eds-live&scope=site
3. Dunkin’ Brands. (2016). 2015-2016 Corporate social responsibility report. Retrieved from https://www.dunkinbrands.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/226/files/20177/2016%20CSR%20Report.pdf
4. Dunkin’ Brands. (2018). 2017-2018 Sustainability Report. Retrieved from https://www.dunkinbrands.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/226/files/20196/2018%20Sustainability%20Report_Final.pdf
5. Dunkin’ Brands. (2019). 2018 Annual report. Retrieved from http://investor.dunkinbrands.com/static-files/7a1e2ad8-3f4e-49d1-9126-1e2b7c43b012
6. Jang, M., Kim, J., & Yoo, B. (2017). The impact of e-training on HR retention in midsized firm. Academy of Entrepreneurship Journal, 23(2), 11-12. Retrieved from https://search-proquest-com.contentproxy.phoenix.edu/docview/1987378843?accountid=134061
7. Janićijević, N. (2017). Organizational models as configurations of structure, culture, leadership, control, and change strategy. Ekonomski Anali/Economic Annals, 62(213), 67–91. https://doi.org/10.2298/EKA1713067J
8. Jehn, K. A., & Bezrukova, K. (2004). A field study of group diversity, workgroup context, and performance. Journal of Organizational Behavior, 25(6), 703. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=edsjsr&AN=edsjsr.4093763&site=eds-live&scope=site
9. Karmeni, K., de la Villarmois, O., & Beldi, A. (2018). Impact of control on innovation: the case of franchising. Management Decision, 56(7), 1485–1505. https://doi.org/10.1108/MD-09-2015-0428
10. Li, X., Holsapple, C., & Goldsby, T. (2019). The structural impact of supply chain management teams: Supply chain agility development in multidivisional firms. Management Research Review, 42(2), 290–310. https://doi.org/10.1108/MRR-04-2018-0163
11. Marasi, S., Bennett, R. J., & Budden, H. (2018). The structure of an organization: Does it influence workplace deviance and its’ dimensions? And to what extent? Journal of Managerial Issues, 30(1), 8–27. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=ent&AN=128481751&site=eds-live&scope=site
12. Odrakiewicz, P., & Zator-Peljan, J. (2012). Innovative methods of cultural, intercultural and managerial competences acquisition for the constantly changing global economy in a new paradigm shift. Global Management Journal, 4(1/2), 127–137. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=bth&AN=84678015&site=eds-live&scope=site
13. Sandhu, S., & Kulik, C. T. (2019). Shaping and being shaped: How organizational structure and managerial discretion co-evolve in new managerial roles. Administrative Science Quarterly, 64(3), 619–658. https://doi.org/10.1177/0001839218778018
14. Shaban, A. (2016). Managing and leading a diverse workforce: One of the main challenges in management. Procedia – Social and Behavioral Sciences, 230, 76–84. https://doi.org/10.1016/j.sbspro.2016.09.010

Much research has been performed to determine whether organizational structure influences job performance and what relationship the two have. Many of these studies have determined that there is, in fact, a relationship between structure and performance, but to better understand the link between organizational structure and job performance, it is necessary to recognize the definitions and elements of each. Ahmady, Mehrpour and Nikooraveh (2016) define organizational structure as “the framework of the relations on jobs, systems, operating process, people and groups making efforts to achieve the goals.” Three main components of organizational structure are specialization, departmentalization and effective communication, and a decision-making hierarchy. Job performance is defined as “the set of behaviors that are relevant to the goals of the organization or the organizational unit in which a person works” (Murphy, 1988). In his report, “Dimensions of Job Performance,” Kevin R. Murphy determined dimensions of job performance to include effectiveness in a position, task performance, down-time behaviors, social relationships, job proficiency, and job-related skills or knowledge. Each component of organizational structure relates to one or more dimensions of job performance.

Components of Structure Related to Performance Dimensions

One of the main components of organizational structure is specialization. Specialization is essentially how a company breaks down and assigns specific tasks and responsibilities to each employee. This relates to three dimensions of job performance: task performance, job proficiency, and down-time tasks. According to Murphy (1988), task performance includes “the tasks one can perform, the tasks one will perform, and the total set of task and non-task behaviors that determine evaluations of effectiveness.” Job proficiency is similar to task performance but focuses on an employee’s ability to perform when he or she is not in normal work conditions, meaning his or her ability to perform their job well when some tasks or job duties change. These both relate to the specialization component of structure because for an organization to develop this component, members must be motivated and understand each of their responsibilities and contributions to the organization’s goals. Murphy (1988) refers to down-time tasks as the behaviors that limit job performance and lead to periods of time in which the worker is not capable of performing at his or her normal level. These behaviors could potentially be a result of specialization. According to “Effect of Organizational Structure on Organizational Effectiveness through Face-to-Face Communication” by Santra and Giri (2015), “people like variety, and if their jobs become the same process over and over again, they become tedious, empty and unsatisfying.” Although specialization is advantageous in many ways, if a worker is only specialized in one job, he or she could potentially become bored with his or her role and be less productive during down-time. Cross-training is a method that could potentially resolve this problem. A worker that is cross-trained can use down-time to assist with tasks that other workers may not be able to complete in that day. An example of a structure that promotes cross training is at Business Impact Group, a mid-size company located in Minnesota. The structure at this company gives each employee clear, specialized jobs, but also trains each new employee on tasks that can be shared by any employee in the department. This is to allow one employee that completed all his or her tasks to assist with any general projects that others may not have the time to complete. This improves both organization performance and job performance as each employee is completing more work and learning new tasks that may prevent them from feeling tediousness in their position.

Another component of organizational structure is departmentalization and effective communication. These concepts both relate to job performance dimensions of social relationships, and job-related skills and knowledge. While specialization focuses on each employee’s specific duties, departmentalization groups jobs together in a logical arrangement that aligns with the organization’s goals (Adeyoyin, Agbeze-Unazi and Oyewunmi, 2015). Santra and Giri (2015) refer to communication as “a mechanism by which organizations come into being,” and that “the structure and processes of organizations determine the kind of communication to their members.” Communication complements departmentalization by being an essential part of the process by which jobs are grouped together. Social relationships, or relationships with coworkers, are formed through communication. Communication also provides a gateway for workers to share any skills or knowledge they possess that relate to their position. When testing aspects of job performance for workers that did not participate in open communication activities and those that did participate, Roberts and O’Reilly (1977) found that participants of open communication activities tended to have better job performance and job stability.

An organizational structure also includes a decision-making hierarchy. The decision-making hierarchy is the system that determines which employees have the authority to make decisions. Erol and Ordu (2018) define this as “the degree of employees’ taking initiatives on their jobs, ie. individual decisions related to their jobs.” This hierarchy relates to the remaining dimension of job performance, effectiveness in a position. According to Murphy (1977), effectiveness is affected by other dimensions of job performance: task performance, down-time tasks and social relations. An effective worker excels at his or her position by completing all necessary tasks, is productive during down-time, and has positive social relationships. Employee empowerment is a strategy that many leaders use to develop more effective employees, who in turn, contribute to the organization’s goals more effectively. Page and Wong (2002) define empowering others as a leader giving more trust and responsibility to employees in addition to their current responsibilities, encouraging employees to take initiative, and appreciating and acknowledging the work they do. According to “Relationship between Employee Empowerment and Employee Effectiveness” by Mehrabani and Shajari (2013), empowering employees leads to high employee effectiveness. Empowerment, effectiveness and the decision-making hierarchy all tie together because an empowered employee that is encouraged to take on more decision-making responsibilities will develop their position into a role that has a specific place on the hierarchy.

Conclusion

There have been many studies to determine what type of relationship exists between organizational structure and job performance. Many of these studies have determined that organizational structure does, in fact, have an effect on job performance. Ajagbe, Cho, Udo, and Peter (2016) determined that “when a clear structure exists, people perform better, tasks are divided and productivity is increased.” To further examine this relationship, one can look at the three components of organizational structure and how they each relate to the dimensions of job performance that have been defined by Murphy (1977). Specialization relates to the dimensions of task performance, down-time behaviors, and job proficiency, while the component of departmentalization and effective communication are linked to relationships with coworkers and job-related skills and knowledge. Lastly, the decision-making hierarchy is affected by employee effectiveness and vice-versa.

References

1. Adeyoyin, S. O., Agbeze-Unazi, F., Oyewunmi, O. O., Adegun, A. I., & Ayodele, R. O. (2015). Effects of Job Specialization and Departmentalization on Job Satisfaction among the Staff of a Nigerian University Library. Library Philosophy & Practice, 54–73.
2. Ahmady, G. A., Mehrpour, M., Nikooravesh, A. (2016, September 12). Organizational structure. Procedia- Social and Behavioral Sciences, 230, 455-462.
3. Erol, E., & Ordu, A. (2018). Organizational Structure Scale–University Version. European Journal of Educational Research, 7(4), 775–803.
4. Mehrabani, S. E., & Shajari, M. (2013). Relationship Between Employee Empowerment and Employee Effectiveness. Service Science and Management Research, 2(4), 60-68.
5. Murphy, K. R. (1989). Dimensions of Job Performance. In R. F. Dillon & J. W. Pellegrino (Eds.), Testing: Theoretical and applied perspectives (p. 218–247). Praeger Publishers.
6. Musibau Akintunde Ajagbe, Cho, N. M., Ekanem Edem Udo Udo, & Ojochide Fred Peter. (2016). How Organizational Structure Aids Business Performance. CLEAR International Journal of Research in Commerce & Management, 7(8), 64–68.
7. Page, D., & Wong, T. P. (2000). A Conceptual Framework for Measuring Servant Leadership. The Human Factor in Shaping the Course of History and Development, 69-110.
8. Roberts K H and O’Reilly C A (1977), “Communication and Performance in Organizations”, Paper Presented at the Academy of Management Annual Meeting, Orlando, Florida.
9. Santra, T., & Giri, V. N. (2008). Effect of Organizational Structure on Organizational Effectiveness through Face-to-Face Communication. ICFAI Journal of Organizational Behavior, 7(2), 28–38.

Exclusive Summary

This paper shows the organizational structure , strategies of the Commonwealth bank in Australia. And its briefly discuss about the Impact of the company’s structure on management innovation and Impact of the company’s structure on overall business performance. Vision of bank is to be Australia’s finest financial services organisation through excelling in customer service and strategy. As mention is their vision of Bank, this bank is very serious about the customer service. CBA is such a one good example of technology adopted bank which is giving excellent service for their customer by utilizing the up-to-date technology

Introduction

The Commonwealth bank that is referred in this study is the largest in the industry that caters to an array of financial products and services and it is the most recognized bank in the Australian financial services industry. It was founded in 22nd December 1911 as a government bank and under the Commonwealth Bank Act in 1911 and commenced operations in 1912. The bank listed as a public bank in1991.The first branch opened in Melbourne 15th July 1912.It has the largest branch and ATM network. more than 11000 branches and 4300+ ATMs.

According to the 2016 findings the bank stands at a total assets of USD 740 billion with a total income of USD 19.52 billion for the period. It has employees around 51,800 members as staff and more than 800,000 shareholders. And bank serves more than 15.9 million customers. Commonwealth bank operates across New Zealand, Fiji, Asia, USA and the UK with more than 11,000 branches under its purview.

The Businesses are Insurance, Funds management, Business and private banking, Institutional banking and marketing, Retail banking services, wealth management and international financial services and other services.

Section 1

Structure of the Commonwealth bank

The structure of an organizations can be defines many different ways. A structure is developed to establish how the organization operates to execute its goal. And its helps determine the success of the organization. It depends how activities such as professionalism, supervision, centralization, coordination, formalization, task allocation are directed towards the company goals.

When we talk about the structure of the common wealth bank it has four main aspects.

1. Retail Banking service. Under retail banking service bank consider about the financial services to customers and small business customers.
2. Premium business serving. In 2009 this service was split in to two main parts. One is institutional banking & markets And Business & private banking. Institutional banking & markets provide services to institutional clients and global markets. And from Business & private banking concern about business customers and private banking.
3. Wealth management. Under this category it brings together the group funds management platform, master funds, superannuation, insurance and financial advice business support.
4. Executive leadership. The below individuals have been appointed as chief executive officers of the common wealth bank Australia.

Strategies

Organizational strategies are everything a company plans to achieve its goals. Before the company develops its strategy, it has to compare how it is now and how it wants to be. In particular, where it would like to be at a certain future time. It has to define the differences and then list what needs to be done to get there.

The Commonwealth Bank’s strategy hinges on four key capabilities: people, technology, strength and productivity.

• People – They have a vibrant, customer-focused and highly integrated culture. Your employees are central to our success. They will continue to invest in employee development and talent management and make the group a place dedicated to diversity, security and a place where their employees are proud to work.
• Technology – They use cutting-edge technology to meet the changing needs of your customers. Their strategy remains focused on long-term value creation for their customers, shareholders and employees. Its goal is to achieve significant long-term growth, strong employee engagement, strong customer experience, consistent shareholder return and outperformance for its shareholders. EFFICIENCY Employees Technology Strength Productivity Develop applications that leverage real-time capabilities, consider new ways of interacting with their customers, and continue to leverage technology to increase productivity.
• Strength – Through the financial crisis, they have learned that the strength and stability of the group makes them the organization the Australians trust to protect their money. A strong and flexible balance sheet is important to ensure they can continue to support their clients and seize opportunities.
• Productivity – You are constantly simplifying how you work to deliver better results for your customers and their employees. This is something that good companies do at all times and that is critical to their long-term success.

Section 2

Impact of the company’s structure on management innovation

Organizational decision makers can influence innovation in their organization by directing the structure of an organization directly. The distribution of control and responsibilities within an organization is determined by its organizational structure as well as by the grouping, coordination and division of work between departments and staff of an organization. Innovation can be seen as new structures and management processes, new policies, new plans and programs, new production processes and new products and services produced in one organization.

Management innovations are most often examined in comparison to technical innovations or technological innovations. Technological innovation is explicitly linked to the central role of an organization, and the results obtained are mainly found in the operating systems. whereas innovation in management is inexplicably linked to the core work of the organization and occurs more frequently in the social systems of an organization.

The Commonwealth Bank invests in innovation to keep its name at the top. So they can continue to provide a compelling customer experience and meet the increasing competition and regular requirements. This includes innovation in both customer-focused and back-office applications. We also invest in technology to keep our systems safe, sound and secure, to add real value and to deliver better results for our customers.

We also promote innovation-driven collaboration with our customers through our Innovation Labs. This year, we partnered with the CSIRO Data61 to develop a world-leading smart money making app using block chain technology. The use case was an attempt for the National Disability Insurance Scheme (NDIS). The goal is to provide ‘intelligent money’ to NDIS participants who know what they can spend, who can spend it on, and when it can be spent.

Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio

Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organization

Section 3

Impact of the company’s structure on overall business performance.

Modern companies have complex structures. Decisions of top managers and executives affect the overall performance of the business. Strategic performance measurements aim to monitor the effectiveness of an organization’s structures.

Different organizational structures have different effects on the performance of the organization. Organizational structure or organization design is a means to achieve organizational goals through coordination, monitoring and task allocation. Three main elements that take into account the organizational structure are decision-making, membership selection and leadership. Companies have to weigh up different advantages when choosing a specific organizational structure. In addition, the structure is also important to the organization’s performance because it describes daily routine and operational procedures as well as points out who would be involved in the decision-making process.

Organizational structure supports organization: maintaining order, solving problems between departments and within each department, and linking organizational members together. The benefits of a strong organizational structure include a stable hierarchy, a smooth flow of communication, and a well-defined, coherent corporate message. The organizational structure can also cause problems such as internal conflicts, high employee turnover, lower productivity and delayed decisions. It is therefore important to identify and resolve organizational structure issues to ensure effective and efficient organization performance.

Recommendations

The recommendations are the result of a comprehensive and detailed investigation and take steps to implement all measures relevant to their business.

The deputy chief executive officer David Cohens of the Commonwealth bank implemented the “Royal Commission Recommendation” to the organization recently. And it will issue regular updates about the bank progress and it is fully transparent.

Many of the recommendations require direct changes in their business and are already underway. Some of the recommendations require action by the government, regulators and industry before they implement them. they will support this work and are already considering what changes they need to make themselves so that they are ready to act once the legal framework is in place

Conclusion

This report concludes that the Commonwealth Bank is very serious about the efficiency of their services to customer. Report clarified that the up-to-date of Strategies and structure can bring large amount of positive benefit for company like Common wealth bank to provide efficient and smooth service for their customer which will establish the good relationship with customer. The report also clarified that the how organizational structure impact on Business performance and management innovation can help to sustain the achievement of any company. And lastly, this report describes how commonwealth bank has improved their business with the recommendation.

References

1. https://www.commbank.com.au/
2. https://www.commbank.com.au/banking.html
3. Our Company, 2011. Commonwealth Bank. Retrieved on March 27, 2011 from http://www.commbank.com.au/about-us/strategy/default.aspx
4. https://www.commbank.com.au/digital-banking/netbank.html
5. https://corporatefinanceinstitute.com/resources/careers/companies/top-australian-banks/
6. http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/8155.0Main+Features12016-17?OpenDocument
7. https://publications.industry.gov.au/publications/australianindustryreport2016/assets/Australian-Industry-Report-2016.pdf
8. https://www.news.com.au/finance/business/banking/commbank-customers-fury-over-massive-outage/news-story/25f6ff3f8f01d00ecfb25b3c35afe18e
9. https://www.commbank.com.au/digital-banking/mobile-payments-wearables/apple-pay.html?gclid=CjwKCAiAy-_iBRAaEiwAYhSlAyZYp9ijdjInRcMCgrUyPhqClkl-B_GLW5SHkjJ4JatgEHfMNF3TMRoCbe4QAvD_BwE

The idea of this report is to analyze the retailer I have chosen how approaches its: Organizational Structure and Management, Marketing and Human resource management and, to discuss the different impacts the external business environment has and will have on the retailer. That is the reason why I have chosen the retailer Debenhams for this report. It is a dominant international brand with a proud British heritage which trades with over 22 countries. It gives an elite selection of own brands as well as international brands. Debenhams have experienced financial issues. The struggling department store chain has a voluntary company arrangement, a form of insolvency to cut its costs by a procedure that allows a company to arrange debts by paying only a part of the amount that it owes to lenders. Debenhams is a market ruler in beauty and health which does it a suitable option for this assignment because they are working in more than one continent and have experienced difficulties during the current changes in the retail sector.

ORGANIZATIONAL STRUCTURE AND MANAGEMENT

The business was established in 1778 by William Clark, who began trading in London as a drapers’ store. The owner was selling precious bonnets, fabrics and gloves for 25 years. In 1813, William Debenham invested money in the firm. However, in 1905, Debenhams Ltd. was born. Moreover, after further improvement, the business unites with Marshall & Snellgrove. These days it is held by Celine UK NewCo 1. (based on Statista Research Department, last edited Dec 7, 2015)

This statistic describes the number of Debenhams shops by region at the end of the 2014-2015 financial year. Debenhams had a total of 165 stores positioned in the U.K., and an additional 87 stores and franchisees expanded worldwide. (Statista Research Department, last edited Dec 7, 2015)

Debenhams has several business strategies. One of them is to deliver a fascinating client proposition by offering the best of the high street. They propose an exclusive combination of luxury brands and international brands across various product sections. The second one is the growing opportunity and option by multi-channel. The retailer continues to invest in top quality service so their clients can use the best of online shopping. They have arranged the administration of stores and also online so that they can give the buyers seamless shopping experience as they frequently shop using more than one channel. ‘15% of Group gross transaction value (GTV) is generated online, and a third of online orders are collected from their stores’ (Debenhams). However, this shows that people shopping online are increasing. Debenhams takes this as an opportunity and wants to make their customers come for more. Debenhams has a line and staff organizational structure. This kind of organizations has staff and line departments. Experts are part of the staff department, and they are assisting and advising the line managers while they are making the arrangements, which are a commission. Debenhams is using these techniques to keep its employees motivated and successful in decision making. I believe that the retailer is correct, trying to improve its online platform because more and more customers use online shopping.

MARKETING

Marketing, according to Kotler’s (2017) Principles of Marketing states, is:’ Engaging customers and managing profitable customer relationships. The two-fold purpose of marketing is to attract new clients by assuring superior value, maintaining and advancing current customers by delivering value and satisfaction.’ Regarding this, Debenhams has the purpose of pleasing the clients of their shops for years. ‘The chain has 166 stores, which at first will all continue to trade. However, it also has £621m of debt. Their current approach is to renegotiate the rents on some of its stores, while around 50 of them have already been set apart for closure, next year.’ (BBC News 2019). High Street retailers have been under increasing pressure because more people like to shop online and visit shops less. For some people, it is easier to buy online. For example, if they do not have time during the day to visit the shops, they can order online when they have free time. ‘Debenhams reported a record pre-tax loss of £491.5m last year and said that sales had fallen sharply over Christmas (BBC News 2019)’. ‘Debenhams had announced their Christmas trading figures, and it is not pleasant. For once, Debenhams exceeded expectations, reporting a fall of 3.4% and a huge 5.7% for the 18 weeks’ (Forbes January 2019). Debenhams have had difficulties for some time. Stick in increasing costs, locked into long lessor leases, facing rising competition from online and without a compelling in-store experience. It seems that the doubt that Brexit is making across the U.K. economy was the last step to failure. Many people prefer online shopping, especially on holidays because the shops are chaotic at the time, but not everyone would prefer to order through the internet. However, a person never knows what he will get without seeing it. So, people who value the gifts they buy still use the stores because they cannot risk not to get what they expected. Market Position, Store Network, and Multi-Channel Business are the strength of Debenhams (Debenhams plc SWOT Analysis). ‘Their products are available online across 60 countries’. (Debenhams) (based on Statista Research Department, by Tugba Sabanoglu, last edited Mar 12, 2019)

This statistic shows that the majority of sales at Debenhams are made in stores, around 77% percentage of sales in 2016.

On the other hand, online sales have grown by roughly 10% from 2013 to 2016. Defining Social Shopping for Debenhams is seeing the way their clients are shopping for style and beauty and connect via their mobile phones. There is a chance for Debenhams to be the leader in what they define as the new ‘Social Shopping’. Shopping is a pleasant leisure activity which you can enjoy with your friend and family.

As they are planning to do, for Debenhams, it is better to invest in the online platform and try to provide the best services they could because online shopping is part of our daily life.

HUMAN RESOURCE MANAGEMENT

According to Michael (Armstrong 2006): ‘Human resource management is defined as a strategic and coherent approach to the management of an organization’s most treasured assets – the people working there who individually and collectively contribute to the achievement of its objectives.’ The term Human Resource Management is a process that covers the procedures, tasks, activities, and policies in an organization which supports their business gain a competitive advantage. It is intended to maximize employee performance. In the cultural aspect, Debenhams are friendly and warm. They are starting on a comprehensive review of their Colleague Proposition and working to build a new Proposition. Their intention is to make shopping confidence-boosting, sociable and fun. Debenhams aim for equal opportunities for their colleagues. The company seeks wherever possible to make reasonable changes so their Colleague who becomes incapacitated during their employment can continue working productively. They achieve this by providing equipment, altering working or providing additional training. Also, Debenhams has a different kind of approach. They use a logical framework to develop upcoming leaders within their stores and support center. I think this company has made the right decision and continues to improve the working conditions for its workers. For example, Google (in America) has the best working environment, and in this way, people do not feel sad, depressed or obliged, they are much more productive and happier with their jobs, I think every company should aim for the best of their workers because, in this way, the company will be profitable. Also, a company cannot be successful without good employees.

CONCLUSION

On this basis, we conclude that the search made in this report proves that, Debenhams current access to its organizational structure and Management, marketing and human resource management, and shows that they are viable and socially responsible. Debenhams has been offering quality and luxury goods since its beginning. They have gone through many stages but still, keep the same quality. They have created a convenient online platform for their customers to have fun while shopping and be able to do it wherever and with whom they want. Debenhams is continuously improving its platform to fulfil their clients’ wishes. They also want their employers to be equal. To improve the working environment, the company organizes an event where workers speak their minds and changes are made if necessary, after discussing them. I think Debenhams is a successful company that has accomplished a lot and continues to and also is one of the well-to-do retailers on the high street.