Organizational Structure for Effective Management
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Executive summary
This report mainly reflects the organizational design and structure of Bookmark. It has helped the management of the “Bookmark” to implement different strategies such as direct sale strategy. It has shown the key factors of the structure of the organizations and also shows all of the different issues currently faced by the “Bookmark”. It has shown the relationship between the organizations and individuals including staff development, financial implications, and workforce culture. The report has reflected strategy that is needed to follow by the management of “Bookmark”. It has assisted the management of the company to improve business performance and expand the business in the global market.
Introduction
The report aims to evaluate the organizational design and structure which helps the management to clearly understand the principles relating to organizational design and structure. As per the case study “Bookmark” is a regional store in the West Midlands, this company mainly deals with selling books and magazines, Newspapers, stationery items, greetings cards, and children’s games. This report critically discusses the organizational strategy including management strategy based on the organizational structure. “Bookmark”, wants to expand its bookselling business worldwide, therefore managements implement some innovative strategies. This report also shows the relationship between the organizations and individuals including developing staff and financial implication and management strategy.
1) Key Factors of the organizational structure
Effective organizational structure is always important for the growth of a business; it does not matter if the business is small or large. Nowadays business becomes more competitive, therefore proper organizational structure helps the growth of the business. “Bookmark” is one of the famous retail stores for selling books, magazines, and other stationery items. Many factors affect organizational structure, the management of the company always needs to be concerned about all of these factors. The different types of key factors that affect organizational structure are discussed below (Al Masaeid, 2020).
- i) Business Strategy – Business strategy is one of the most important key factors which create a significant effect on the organizational structure. Effective business strategy is always important for the growth of the business. In this case, “Bookmark” is a popular retail store based in Wolverhampton. This company shows rapid business growth from the first 20 years after that the business growth was decreased. The main reason for lower growth is, this company has a lot of market competitors who also deal with the same items. The management changed its strategy to increase the revenue of the company. During the last 5 years, this company closed a number of its stores for lower revenue; therefore, the future is uncertain for this company. The management needs to execute some innovative strategy which helps to increase the sales; this company needs to start “online sales”, nowadays most of the customers preferred online shopping than traditional shopping. Therefore the business strategy is one of the essential key factors which create a significant effect on the organizational structure (Al-Kfairy et al. 2020).
- ii) Location- “Location” is another key factor of any kind of business and these factors also create an effect on the organizational structure. Proper location helps to increase the sales and also helps to maximize the profit. Sometimes it is seen that a business is running losses due to choosing the wrong locations, every entrepreneur should choose the right location when they start a new business. “Bookmark” also shows poor business performance for the last 5 years, therefore the management of the organization has increased the outlets mainly in public places such as train stations and airports. This strategy is successful because the revenue of these outlets is outstanding. Location is one of the essential key factors that create an effect on the structure of an organization (Bastas et al. 2019).
iii) Culture- “Culture” is another key factor of a business that also affects the structure of an organization. In this case, culture mainly describes the quality of employees, performance of employees so on, an effective culture of a business also helps to improve the business performance. Employees’ skills and qualities increase business performance, skillful employees are always the assets of any organization. Culture also includes the environment within the organizations, effective environment within the organization also helps to increase the efficiency of the employees. This company has a lot of skillful employees who always focus on the customer’s requirements. Skillful staff also helps the “Bookmarks” to expand their business(Bundy et al. 2017).
2) Implications of the organizational structure for management development
Management development helps to increase business performance, but this development mainly depends on organizational structures. Most of the business is following some theory for management development; this theory helps to increase the efficiency of the management.
“Scientific management theory” is one of the effective theories which help to develop the management with skills and techniques. Most of the large and medium scale businesses follow this theory to develop their management skills and techniques, this theory. During the last 5 years “Bookmark” has closed its number of stores. In these situations, the management needs to follow “Scientific management theory” (Devaraj et al. 2017).
The management of the company needs to be more concerned about the key factors of the organizational structure to improve business performance. The management needs to execute a strategy to reduce the expenses of the stores. The senior management realized that the organization needs to refocus its strategy to revitalize the business. The company needs to promote an online selling facility; the management also needs to change the existing strategy to improve business performance. The senior management needs to implement a “scientific management theory”. The senior management needs to execute a marketing survey to understand the customer’s requirements. The company also needs to change the way of marketing and also follow the marketing strategy of the competitor’s organization (Figurska et al. 2020).
When the senior management implements the new strategy they always need to be concerned about the key factors of organizational structure and customer requirements. “Bookmarks” has a lot of market competitors, in this situation increasing the revenue of the company is one of the greatest challenges among the management.
3) Relationship between the organization and individuals
- i) Developing Staff – Staff development helps to increase business performance, most organizations are always concerned about staff development. “Bookmark” wants to increase the revenue of the company, therefore the management of the company implements different types of strategy for the development of the business. Staff development is very important; it helps to increase the sales of each store. The marketing management also provides training among the marketing staff of the company for changes in the marketing process. The staff development process also helps to improve the skills and knowledge of the staff and also helps to motivate for better performance. Therefore staff development strategy is very important for any kind of business (Kang et al. 2018).
- ii) Financial implications – The management of the “Bookmark” always needs to be more concerned about the financial part of the business. Financial parts include, increase the revenue of the company as well as the reduced operating costs. The senior management needs to implement some different strategies for reducing the operating costs. In the last five years, the financial performance of the company has been very poor. The company needs to modify its stores which are specially situated in the center location of the town. The management needs to implement different types of strategy which helps to be profitable for the business. The store manager needs to be more concerned about the expenses of each store (Nisulaet al. 2018).
iii) Type of workforce – The senior management needs to be concerned about the workforce of the company, which types of the workforce is appropriate for the organisation that needs to be decided by the management. The proper working atmosphere helps to motivate an employee to improve their performance. The management of the “Bookmark” needs to daily interacts with all the staff of the company. The management should help to motivate all the staff achieving the goal within the time. Clearly understanding the workplace culture is one of the basic qualities of effective management.
Figure 1: Relationship between the organization and individuals
(Source: Piya et al. 2020)
All of these activities are very important to increase the organizational performance, senior management of a company always need to be concerned about all of these activities. If the management of “Bookmark” maintains all of the above activities, it can help the company to improve the financial performance. This management strategy also helps the “Bookmark” to expand their business (Piya et al. 2020).
Issues
There are lots of different issues which are the main reason to decrease the business performance, the issues are:
- Decrease the revenue of each store is one of the main issues for poor business performance of “Bookmark”.
- Poor management strategy is another issue of the poor performance of this company.
- Poor marketing strategy, such as “Bookmark” does not follow customer requirements.
- Work culture issue is another reason for the poor performance of this business.
Conclusion
It is concluded from the above discussion that management of the “Bookmark” need to implement some innovative strategy to increase the business performance. This company has a lot of stores in the West Midlands; the majority of the stores are situated in the central locations of the town. Last 5 years this company has shown poor business performance, therefore during the last 5 years “Bookmark” has closed a number of its stores. In the West Midlands, “Bookmark” has lots of market competitors therefore if this company wants to increase the revenue the management needs to follow some innovative strategy.
The management needs to improve the different key factors of the organisational structure such as business strategy, locations and culture. The management implements any strategy they should be concerned about the structure of the organisations. An effective organisational structure helps to implement the proper strategy in the business. The senior management of the “Bookmark ” always needs to follow up the current market situation and the customer’s requirements. All of the above management strategies help to increase the financial performance of the business and help to expand their business.
Reference List
Al Masaeid, T.F., 2020. Organisational Development Interventions to solve performance management challenges. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(6), pp.7575-7586.
Al-Kfairy, M. and Mellor, R.B., 2020. The role of organisation structure in the success of start-up science and technology parks (STPs). Knowledge Management Research & Practice, pp.1-9.
Bastas, A. and Liyanage, K., 2019. Setting a framework for organisational sustainable development. Sustainable Production and Consumption, 20, pp.207-229.
Bundy, J., Pfarrer, M.D., Short, C.E. and Coombs, W.T., 2017. Crises and crisis management: Integration, interpretation, and research development. Journal of Management, 43(6), pp.1661-1692.
Devaraj, A., van Ginneken, B., Nair, A. and Baldwin, D., 2017. Use of volumetry for lung nodule management: theory and practice. Radiology, 284(3), pp.630-644.
Figurska, I. and Sokół, A., 2020. Potential of Creative Knowledge of Workers and their Development in a Sustainable Organisation. European Research Studies, 23, pp.628-650.
Kang, Y. and He, X., 2018. Institutional forces and environmental management strategy: moderating effects of environmental orientation and innovation capability. Management and Organization Review, 14(3), pp.577-605.
Nisula, A.M. and Kianto, A., 2018. Stimulating organisational creativity with theatrical improvisation. Journal of Business Research, 85, pp.484-493.
Piya, S., Shamsuzzoha, A. and Khadem, M., 2020. An approach for analysing supply chain complexity drivers through interpretive structural modelling. International Journal of Logistics Research and Applications, 23(4), pp.311-336.
Teece, D.J., 2018. Dynamic capabilities as (workable) management systems theory. Journal of Management & Organization, 24(3), pp.359-368.
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