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Learning Outcomes to be covered:
1. Apply different approaches to management and the functions they perform in different organisations.
2. Critically analyse the impact that different approaches to management may have on workers.
3. Compare and contrast different organisational structures and culture and explain how structure and culture impacts on the performance of the business.
4. Analyse the motivational theories used in different organizations by management and evaluate their effectiveness.
Student Task
1. Discuss the two approaches to management adopted by Ace Security and Multiboost. For one of the companies, critically analyse how the approach has/may impact on workers and suggest an alternative approach to management for the future.
2. Compare and contrast the Functional structure at Ace Security with one other organisational structure and explain how both structures may impact on business performance.
Compare and contrast the Task culture at Multiboost with one other possible culture and explain how both cultures may impact on business performance. (Learning Outcomes 3)
3. Identify and analyse the motivational theories you believe management at each company adopt and evaluate the effectiveness of both in motivating the workforce. (Learning Outcomes 4)
You have been provided with information from two fictitious companies (Ace Security and Multiboost) which will be used to provide you with details that will enable you to draw conclusions about their approaches to management, structures and culture and the motivational theories they use. These areas will be the basis of your essay.
Company 1: Ace Security
Ace Security manufactures a wide range of products for the security of business premises, covering on-site protection and monitoring and detection systems. In addition, the company also produces personal alarm and emergency call devices for use by individuals. The company has administrative headquarters in Liverpool and a number of factories at various locations around the United Kingdom. Overall, the company has 1500 staff with a turnover of £68 million. The company operates in a dynamic, unpredictable and complex environment, and if it is to retain its dominant position in the market, there will be a need for greater creativity and innovation.
For many years, the Managing Director, Paul Brown, has strived to run an economic and efficient operation. He is a great believer in the formal ‘system’. In fact he likes to think of the whole organisation as a system of inter-connected parts, which needs to run like a well-maintained machine. He also encourages his department managers to think in the same way, and he demands set working procedures, and payment by results for workers.
However, Paul’s general approach to managing the organisation has never been universally welcomed by employees. Some workers think that his ideas are from the 1930’s and management has moved on a long way since that time. Others feel that they are not motivated just by money for output. Moreover, Paul’s approach is entirely focused on the work, and takes no account of the worker.
The company has a Functional structure, with separate departments for Production, Sales, Marketing, Research and Development, Data Processing, Accounts, and Human Resource Management.
Company 2: Multiboost
Multiboost is a producer of a range of energy foods and supplements designed for athletes and sportsmen/women. The company has 200 staff and a turnover of £10 Million. The environment in which the company operates is quite stable and predictable, and slow to change at present.
The Chief Executive, Kaffina Ray, has always believed that company success depends on giving more attention to the workers than to the work. Her approach to management and the organisation is relatively informal. She takes an active interest in staff and their needs, recognising that these needs go well beyond simply pay and benefits. Non-economic rewards can motivate workers just as much as high wages. Feelings of involvement, security and general job satisfaction are closely related to high achievement. How work is organised is also very important. Specialisation and division of labour may not actually be that efficient, or particularly motivating for staff. Instead Kaffina has chosen to give workers a variety of tasks, along with more influence and control over their work, the ‘empowerment’ of staff is very much encouraged in this organisation.
However, to Kaffina’s surprise, her general approach has led to problems with certain employees, as well as some managers. Whilst some workers are clearly happy that their needs are recognised, they are not as productive as they could be. Some managers’ think that Kaffina’s ‘being nice to staff approach’ makes them seem weak. There have been clear conflicts of interest between management and staff over the last year, and the Trade Union has been successful over recent months in achieving improved pay through strike action.
The company structure is fairly organic. Whist there are separate departments for all the main business functions, control authority and communications operate through networks rather than a hierarchy. There are parts of the structure which are temporary. For example, teams are set up to work on new product development, and then later disbanded.
The culture of the organisation is mostly Task which is very project-oriented, being about bringing together the right people and the right resources.
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