Contents
This assignment is based on the following business scenario – - Scenario
- You are the Managing Director of an international manufacturing company GBE International based in Andover, Hampshire. The Company manufactures large capital equipment for the tobacco industry. The Company has two divisions operating from two sites within 10 miles of each other. The larger division is based at the main site in Andover where it employs 600 of which approximately 150 are administration and professional staff and 450 highly skilled mechanical and electrical assembly workers. This division manufactures large tobacco processing equipment which is then sold to cigarette producers in countries such as Russia, China, Europe and the Middle East. The turnover of staff is low and the average length of service is 35 years and the average age is early 50’s. They are the largest employer in the area. There are two unions one for the administration staff although only a small number are members. The other is the engineering union which represents the assembly/shop floor works and has 100% membership, this union is very strong and has regular monthly meeting with the management. The division operates on a very formal tall hierarchy with many layers of management and supervision. They have a top level structure with a Managing Director, Finance Director, Sales & Marketing Director, Engineering Director, Production Director and HR Director. Morale seems to be reasonable but the atmosphere is one of lethargy and complacency, any attempt to change working practices is met will resistance. The leadership style of the Group Managing Director, Bob Miller, is autocratic and his style is based on weekly meeting with the co Directors where they are excepted to give him details of their departments performance. Any under performance is met with criticism and challenge. This style has percolated through the organisation and hence all employees feel threatened. The second division, which based is on a separate site 10 miles away, manufactures the machines which turn the processed tobacco leaf into cigarettes and then packages the cigarettes ready for retail. They have a smaller market share than the large division. This division has the same formal organisation but as it is a smaller organisation it has
- fewer layers of management with just team leaders controlling the day to day work on the shop floor. The operating style is much more democratic, however it does have a clearly defined structure i.e. Managing Director, Finance Director, Sales & Marketing Director etc but does not have a HR Director and only employs 65 people, 25 administration and professional staff and 40 skilled mechanical and electrical assembly workers with similar skills to that employed in the larger division. The average age is late 50’s, and the length of service 35 years. Although this plant has a formal organisation structure its management style is informal and open. They are not unionised. Martin Smith the Managing Director has a informal and consulting style of leadership.. He would be seen walking on the shop floor each day talking to the work force about the problems they encounter in the daily work. They have strong social links between employees who frequently meet outside work. The Company has been losing money over the past two years and the main board have requested a review of the business. This review must consider the structure and operating styles to reposition the companies in their respective markets to enable the company the implement a growth plan.
Description
The assignment answers the following questions based on the above scenario –
1 Compare and contrast different organisational structures and culture
2 Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business
3 Discuss the factors which influence individual behaviour at work
4 Compare the effectiveness of different leadership styles in different organisations
5 Explain how organisational theory underpins the practice of management
6 Evaluate the different approaches to management and by different organisations
