Organizational Structures for Effective Management
Organisational structure has been identified to play a significant role in meeting organisational objective and goal. In this study analysis of book stores named Bookmark have been evaluated with its operation, organisational life cycle and business environment. Moreover, analysis of development staff and its importance and need for change management been presented in this report. Additionally, financial implication, effective workforce nature for the organisation as well as organisational culture significance for Bookmark has been evaluated along with the theatrical perspective of Handy’s Motivation Theory for improving Employees Performance.
Organisational structure has been identified to be important for betterment of organisational success as hierarchical orientation of an organisation leads to compilation of responsibilities in a sequential manner. This report aims to develop discussion based on the organisational structure of Bookmark. Moreover, the importance of developing relationships between the organisation and working individuals has been evaluated in this study with the presentation of significant theories.
Section 1: Identification and examination of the key factors that need to be considered when designing the structure of organisations
Overview of Bookmark
It has been identified from the case study that Bookmark previously possessed several stores over the towns of West Midlands. Besides, the town stores the organisation also has stores across train stations and airports for attracting travellers to buy books. Moreover, maximum of the store’s outlet is situated in the centre location of the city.
Products and services offered
Products offered by Bookmark are magazine, books, newspapers, stationery, greetings cards and children’s games. The store was established in 1950 in Wolverhampton. In the first 20 years, the organisation has faced major success that has resulted in a decrease in sales in the last 15 years due to changing of customer demand and investigation of internet-based books and magazines.
Bookmark’s organisational life cycle
In the initial days of business operation, Bookmark has experienced a boom in their business operation that has resulted in greater revenue generation and acquiring of profit. According to Bey (2018), organisational life cycle refers to a cyclic process that represents the starting of an organisation to its end as per its success and failure in business. In the initial business days, Bookmark’s business has been under significant profit along with its greater revenue generation. Maximum of the city stores have experienced rapid sales. Organisational life cycle of Bookmark hinders due to growth of the internet that resulted in rapid sales decrease and non-structural orientation of Bookmark’s organisational life cycle. Growth of internet has affected the business of Bookmark in the last five years that have resulted in closing of their maximum city stores. However, the stores situated in the train stations and airport has been functioning successfully.
Business strategy and Business environment of Bookmark
Bookmarks business environments have been smooth in its initial operation that tended to change after incorporation of the internet and its application. According to Yuliansyah et al. (2017) business environment in sum of organisational factors such as acquiring customers, their need, supply and demand of raw material and innovation of business processes through significant strategies. Factors of customer buying pattern demand for storybooks and magazines have changed rapidly that led the organizational management to change their strategy. Bookmarks business strategy have been changed to closing of maximum city stores and initiation of acquires sales profit and revenue from the stores in airports and rail stations for last five year
Galbraith’s Star Structure comparing with Bookmark’s Organisational Structure
Figure 1: Galbraith’s Star Structure
(Source: Inspired by Eirich et al. 2019)
Galbraith’s Star Structure framework indicates required change in the business and need of sustainability to each change for obtaining benefit in the competitive market. Eirich et al. (2019) asserted that the sequential steps of Galbraith’s Star Structure are strategy, structure, process, rewards, and people. Aligning with the framework, Bookmark has initiated a change in their business operation and business strategy by acquiring a strategy of reducing its store numbers and limiting offered service. Along with limiting store organisation has decreased its organisational people or employee numbers to remain profitable in the industry.
The impact of information technology on Bookmark’s Operation
Impact of information technology would be helpful for the business of Bookmark as it would transform the business and its feasibility. Trantopoulos et al. (2017) stated that implementation of information technology tends to increase organisations sufficiency and elevate business efficiency. Emerging use of information technology would be helping the operation of bookmark for handling organisational responsibilities through application of ERP, CRM systems.
Demand for flexibility for surviving in the industry
Change in industry has increased the need for change in organisational flexibility in Bookmark. According to Gramano (2018) flexibility has been identified to be vital factors that influence organisational business growth with increasing organisational flexibility and the potential of its internal and external factors to tend to change for betterment. Increase of flexibility would help Bookmark to acquire changes in their operation.
Evaluation regarding the implications of organisational structure for the management and development of people and resources
Organisational structures refer to the outline of business operation and orientation regarding organisational activity and their objective that helps to present a collaborative view of organisational activities. For the purpose of standing out against the issues regarding emergence of the internet and its application, Bookmark would benefit from incorporating collaborative approach with their organisational employees.
Section 2: Relationship between organisation and individuals
Aligning with the business scenario of Bookmark, it has been identified that the organisation would be beneficial through implementation of developing staff that would help the business operation to elevate. Anstey et al. (2017) stated that developing staff within an organisation helps organisation and its business operation regarding fulfilling its business objective. Aligning of staff and business would be creating an advantage for Bookmark to establish their business after the vigorous loss in the business. Significant developing staff of Bookmark would be store managers, daily employees and accountant.
Management of change
Management of change refers to initiation of alternative operation that would be helping the organisation to change its functional structure along with the business process and its operational system. Fonfara et al. (2018) obtained that management of change helps an organisation to transform its operational process for betterment. For the purpose of initiating change in the organisational work, process Bookmark would benefit from implementation of technical application for addressing business needs in a sustainable process. Moreover, through establishment of effective developing staff would initiate effective change management in the operation of Bookmark.
Financial implications in organisational operation
Bookmark has faced several drawbacks at the rise of internet publishing eBooks, online reading platforms has generated internet reading habits among readers. Adapting to the changing nature of business, changing mode of operation while reaching out to online readers publishing books and magazines online increases financial performance of a company (Ansong and Boateng, 2019). Other online services such as online news reading service, greeting card service would help Bookmark to revive in the business. This would help the company to attract more online customers, increase sales number and gain more profit.
Type of workforce required for Bookmark’s Business
Bookmark can focus on creating a culturally diverse workforce in the company. Providing equal opportunity to individuals only reflecting on their abilities and capabilities would help the company to form a skilled workforce that can easily adapt to the changing nature of business opportunities in industry. Cletus et al. (2018) have mentioned that a diverse workforce benefits a company to empower its departments to develop new ideas and expertise in different skills. This would help Bookmark to boost problem solving capability and happiness in the workforce that directly reflects on increasing productivity of the organisation. However, it possibly can create operation complexity as well as create a possibility for offshoring as an emphasis point in the diverse workforce.
Handy’s Motivation Theory for improving Employees Performance
Handy’s Motivation Theory” can be identified as an essential theory for business to follow while identifying employee’s needs in the organisation. As explained by Fiaz et al. (2017), “Handy’s Motivation Theory” implies that employees’ motivation in work is directly driven by their needs alone. Fulfilling their own interpretation of different psychological and physical needs helps employees to respond benefiting them as well as to organisation objectives. Bookmark can effectively implement the “Handy’s Motivation Theory” in its workforce to identify different needs of its employees and fulfil them. This would help the company to motivate employees to adapt to new technologically advanced infrastructure and improve the productivity of the organisation.
Effective Organisational Culture for Bookmark
Organisational culture defines the internal as well as external identity for a company while providing proper guidance for employees to follow. As proposed by Kuo and Tsai (2019), the purpose of a well-defined organisational culture is to motivate and inspire employees to improve engagement in the workforce and increase interaction with other co-workers. Culture in an organisation also helps in aligning different organisational activities in the company aligning with achieving organisational objectives. This can help Bookmark to higher employee engagement that would drive to increasing organisational productivity and achieving an organisational goal in long term.
Following the discussion of evaluating different aspects of Bookmark’s business operation, it can be concluded that the company has a greater opportunity for business growth in future. Implication of strategic business strategies mitigating the current problems faced by the company would help Bookmark to survive in the industry. Developing a skilled workforce, creating a flexible nature in the operation process, going online would create a better opportunity for Bookmark to increase its sales number benefiting its stakeholders and becoming profitable without sacrificing its margins to town centre stores.
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