Structures for Effective Managment
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The report was prepared on the basis of organizational structures for maintaining an effective management system and highlighting the facts on Bookmark. The report was prepared in a fluid language for which a reader can easily understand the facts in a suitable way. In describing the facts, two theories were used like Galbraith’s Star structure and Handy’s three significant workforces which describe different directions of a business and categorize workers in three divisions. Apart from that, the current report has discussed the implications of organizational culture for management, development of employment, and resource management system.
1. Identification and examining key factors for designing the structure of an organization
Bookmark which is a book shop established as a regional store in West Midland from 1950 and successfully selling their products in a suitable way. Organizations deal with lots of books, magazines, greeting cards, children’s games and stationery products in their shops and enhance the market to deal with their customers (Thebookmark.co.uk, 2020). Their main stores were located in Wolverhampton, and within a few years they had opened their other outlets in West Midlands within 20 years, and their growth seemed to be raising a lot. In the last 15 years with the evaluation of technology, people get attracted to internet facilities and shift their attention from reading books.
Results in a decrease in their growth of profit and in the last five years they have closed many outlets from West Midland areas. According to Lemus-Aguilar et al. (2019), due to this reason, some basic information can be provided towards the senior management team in redesigning their organizational structure.
The organizational life cycle is a process in which the life of an organization can be determined starting from its creation towards their termination. During the progress of Bookmark, they have to go through a large number of steps to reach their peak, and due to the lack of modern techniques and strategies, business falls down to a great extent. According to Kanibolotsky et al. (2019), it was quite similar in case of Bookmark, as they also reached the peak of their business and gradually fell down with a lack of modern techniques and implications.
Figure 1: Organizational life cycle
(Source: Kanibolotsky et al. 2019)
It was found that they have taken some strategies in opening their shops in Airports, Railway stations where people can buy journals, books to read it during their travelling. According to Winby and Mohrman (2018), along with it, they gathered some playing staff in their shops as some parents buys these products towards their children so that they remain silent during travelling. Due to these strategies, they have gathered some control in the market, but all problems were not solved for Bookmark.
Business environment– In the 1950s, people were fond of buying books, and there was also scope for gaining knowledge only through these books. After a few years, they have reached the peak of their business lifecycle; in the last few years, the scenario changed completely. Due to internet facilities, any person can gather knowledge by using search engines in a suitable way, and people get attracted towards it. According to Ozaydin (2019), standing in this situation, senior management teams need to adopt modern changes for the sake of their organization like selling their books on the internet by taking some joint ventures. Students are key customers of these shops, and modern students have smart phones and can search for any item that leads to disruption in their profit margin.
Galbraith’s Star structure– It was an ideal business model that can be adopted by any organization to sustain their business and increase their margin of profit in a suitable way. Also helps to identify value propositions for Bookmark time to time, and this will help them to identify potential customers to value their feelings and demands. According to Galbraith and Vercauteren (2018), the star model helps to identify five directions of a business like Strategy, structure, Rewards, processes and people. The business model was usually placed at the middle of a star and considered as the centre of gravity that holds all the five directions. Bookmark which was dealing with many problems in this current situation can implement some solid strategies to bounce back in the market, gaining huge profits.
Figure 2: Galbraith’s Star structure
(Source: Galbraith and Vercauteren, 2018)
In improving the structure of an organization, Bookmark needs to hire some professionals in making some delicate decisions towards Bookmark and bring them on track. According to Galbraith and Dörre (2018), besides this Reward facilities must be applied towards their employees in performing well for Bookmark, process deals with hiring some talent in an organization in enhancing their business strategies. Lastly, Bookmark needs to maintain a healthy relationship with their people, such as customers and stakeholders, by providing promotion and training to their employees.
Impact of Information Technology– Due to the modernization of technology, internet facilities have emerged to a huge extent and online e-commerce sites are furnishing rapidly. Bookmark needs to join with these e-commerce giants and start selling their books and magazines to regain their position in the market (Thebookmark.co.uk, 2020). Demand for flexibility is considered as a portion of demand in which Bookmark needs to identify these several zones and enhance their strategies for selling their products.
2. Evaluation of organizational structure and maintain a relationship with people and resources
Organization structure is a process in which some activities were taken into account for achieving their goals in a suitable way by enhancing organizational benefits. Bookmark needs to take some serious steps in enhancing their business strategies that include roles, rules and responsibilities in developing their staffs. Staffs can maintain their roles and responsibilities as instructed by their senior management team, and they can easily achieve their goals and attract their customers by selling books, magazines and other items. According to Green et al. (2017), despite performing offline stores, Bookmark should maintain healthy communication with their customers and meet their demand accurately. Change in the management process was a bold step for an organization in which modern tools and techniques needed to be adopted in organizational systems to move with modern changes.
Bookmark needs to analyze their employee’s performance individually and provide training procedures towards their employees to develop their skills which will help an organization for the long run. Bookmark needs to maintain financial implications within their workplace by enhancing the quality of its employees by maintaining and maintaining the needs of their customers. According to Brenyah and Obuobisa-Darko (2017), as Bookmark lacked in their business profit, they needed to reduce their number of their employees and apply some modern changes in their offline and online stores for increasing their productivity. Bookmark was suffering from advanced technology in their stores; they needed to make an application by using an internet facility. According to Winby and Mohrman (2018), in this application, their customers can access their sites and choose their choice of books and order online. In this way, they can improve their financial conditions to a greater extent; also, they can imply some joint venture project with e-commerce giants at initial stages.
Due to these innovative steps, they need to improve their systems and implement some trained professionals to develop websites and applications towards them and secure them in a suitable way. After implementing these strategies, they need to gather feedback from their customers to improve their quality of work to develop the uniqueness of their strategies for attracting their customers. According to Green et al. (2017), in maintaining this entire process Bookmark needs to adopt different kinds of the workforce in implementing robotics systems in their offline stores which will guide their customers to find their products in a suitable way. There were different kinds of workforce management like full time, part-time, seasonal, temporary, seasonal and other types of employees in Bookmark. In implementing different kinds of workers will help Bookmark in working on different sectors and enhance all their departments in a suitable way.
Handy’s three significant workforces- Charles Handy, who is an expert in management studies, has provided this concept of having three parts in an organization. The person stated that employees in an organization were the crucial part of an organization rather than hierarchical systems and divides the workers like Core workers, Contract workers and peripheral workers. These three groups of people have different responsibilities in their fields and perform their task in a suitable way that lastly gets rewards from an organization. Bookmark should also follow this system as employees were key members of an organization as they will lead their organization towards success. According to Galbraith and Dörre (2018), the first leaf comprises professional core members like technicians, professionals and senior managers, and Bookmark should hire some quality members in these areas. These members will help Bookmark for their growth and continuity and enhance their margin of profit by attracting customers towards them.
In the second leaf comprises contract workers, these include self-employment professionals and contractors, and their payment is based on performance rather than their time. Bookmarks should also maintain good communication with their suppliers and stakeholders in enhancing their business in a suitable way. According to Brenyah and Obuobisa-Darko (2017), in the third leaf, it comprises peripheral workers, as they were the direct employees work as a daily routine to get their salaries, considered tinder the part-time and flexible workers. Bookmarks should enhance the workplace by motivating these employees, for whom they can provide their best towards the organization, and they can be promoted according to their skills. Workplace culture is also important in an organization, as organizational culture gets enhanced, they can work in an effective way to perform their jobs suitably and maintain the safety of their employees in a workplace.
Brenyah, R.S. and Obuobisa-Darko, T., 2017. Organisational culture and employee engagement within the Ghanaian public sector. Review of Public Administration and Management, 5(3), pp.1-7.
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Ozaydin, S., 2019, ORGANISATIONAL CULTURE AS A TOOL FOR MANAGING A MULTIGENERATIONAL WORKFORCE IN PROJECT MANAGEMENT. Research Journal of Business and Management, 6(3), pp.185-203.
Thebookmark.co.uk (2020), A small, independent bookshop located in the heart of Grantown-on-Spey. Available at: https://thebookmark.co.uk/ [Accessed on: 4/01/2021].
Winby, S. and Mohrman, S.A., 2018. Digital sociotechnical system design. The Journal of Applied Behavioral Science, 54(4), pp.399-423.
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