Structure and Culture of Zara and its Comparison with H&M
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Added on 2023/01/11
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This report discusses the structure and culture of Zara and compares it with H&M. It also explores the factors contributing to organizational performance.
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Contents INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 Structure and culture of Zara and its comparison with H&M.....................................................1 Factors contributing to organizations performance.....................................................................3 CONCLUSION................................................................................................................................3 REFERENCES................................................................................................................................5
INTRODUCTION Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. Present report will lay emphasis on Zara who is a retail company based and headquartered in Spain. They are specialised in selling fashion products including clothing, shoes, and perfumes. Present report will lay emphasis on structure and culture followed by Zara. It will also lay impact on how these factors lays impact on performance level of company. MAIN BODY Structure and culture of Zara and its comparison with H&M Organizational behaviour, mission management and leadership:It is really important for firm to have a better organizational behaviour so that they can consumer loyalty. Zara has been engaged in continuously enhancing the way employee’s behaviour inside the firm. This has given them an aspect to analyse needs and employees so that their performance level can be enhanced. They have been engaged in making an environment which is flexible so no type of issues is being faced by employees in the firm. Zara is been involved in maintaining and building trusting relationship with their employees so that organization behaviour can be enhanced. This has assisted firm in growing. It has also been analysed that mission and vision of Zara is been made clear to all employees. Company has provided employees with clear roles and responsibilities so that no conflict among workers exits (Kava and et.al., 2018). This has assisted Zara in making their organizational behaviour better by having a proper management related to mission and vision. The roles and responsibilities of workers have been linked with goals and objectives of company. Mission of Zara is to give consumers what they want and to get it faster than anyone else. In order to achieve this, they are been engaged in providing training to employees so that their motivation is been increased and they are able to gain competitive advantage. Zara is making use of highly effective leaders who are been involved in bringing out the most innovative and creative products so that needs and demands of consumers can be fulfilled. This has also assisted Zara in increasing their sales as well as revenue. Situational leadership has been used by leaders of company. In this leaders are been engaged in changing their strategy according to their situation. This has assisted leaders in making their firms culture better. 1
Organization structure:It has been analysed that Fatehi has divided organization structure on 5 bases; it includes functional, geographical, product, mixed and matrix. Firm can include in designing the structure according to their preferences. It has been analysed from the research that Zara has been involved in following functional structure. In this they have been involved in dividing and distributing the roles and responsibilities on hierarchical basis. In these employees know about who they need to report to and this structure is really helpful and easy for workers to communicate with their peers. This organizational structure has increased the operational efficiency and productivity as roles and responsibilities in cleared to every employee that has reduced conflict. On the other hand H&M follows the Matrix organization structure. It has been analysed that general meeting is the highest authority in company which takes decision on their basis. They provide share holders with forum where they can exercise their rights and duties. Under Swedish law, the employees have the right to appoint employee representatives with deputies to the company's board. It has been analysed that Share holder has been provided with the power to make ultimate decisions on behalf of company. It is taken during annual general meeting. Organizational culture:According to hofsetede cultural dimension model Zara is been involved in following the corporate culture. In this they are working towards the development of team dynamics through using open communication (Gordon, 2017). It has been analysed that Zara is working in extremely uncertain environment and they are also operating in more than 70 countries. In order to make their organization culture better, the firm is laying emphasis on following a lean structure. In this by developing and enhancing abilities of team Zara is been engaged in increasing customer satisfaction. This is making culture better of firm and they have been able to attract more positional employees towards them. It has also been analysed that Zara is also been involved in motivating their employees to bring more innovative and creative products and services so that their goals and objectives can be achieved. This has assisted them in growing. On the other hand H&M organizational culture according to Hofsetede model is based on value driven working (González-Rodríguez and et.al., 2019). They have been involved in making sure that task is been provided to all employees who are working with them. This has assisted them in development skills and abilities of employees. It has made the employees more productive and also it has assisted firm in making organizational culture better. H&M makes sure 2
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that no type of workplace policies is been taking place as this will reduce efficiency of workers. It can also increase the stress and makes employees unsatisfied. It will also lead to hampering of organization culture. Leaders are been engaged in motivating employees by providing them with training. They are also engaged in analysing their skills and abilities so that workers and organization can grow. They work towards development of value and also motivated employees to follow the ethical code of conduct. Factors contributing to organizations performance Organizational culture and structure is really important in improvising the organizational performance and value of firm. It has been analysed that Zara has been engaged in following the functional structure. In this the roles and responsibilities of employees are been clear, it has assisted them in making organizational culture better. This has helped firm in attracting more potential employees. It has also helped them in creating employee loyalty and belongingness. All these aspects are really necessary for growth of firm. It has been analysed that better organizations structure and culture has also increased the operational efficiency and productivity level of firm. Leaders of Zara are making sure that employees follow ethical code of conduct so that culture can be enhanced (Driskill, 2018). This has also helped them in increasing consumer satisfaction which is really necessary for growth of firm. They have been working on developing team dynamics so that organizational culture can be enhanced. Zara is also making use of open communication so that they are able to know about the needs and demands of employees. This has assisted Zara in making organizational culture better. They have been able to retain skilled employees by making the organization culture better. CONCLUSION From the above study, it has been summarised that company has been involved in following functional structure. This has assisted them in making roles and responsibilities clear among employees. They have also known about their reporting authority. It has laid positive impact on performance level of firm. It has been analysed that company’s productivity and operational efficiency has also been increased. They have been able to achieve their goals and objectives. Leaders have also been involved in bringing out most innovative and creative products in order to attract large range of consumers. They have been able to grab large markets share. 3
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REFERENCES Books and Journals Driskill, G.W., 2018.Organizational culture in action: A cultural analysis workbook. Routledge. González-Rodríguez, M.R. and et.al., 2019. Hotels’ corporate social responsibility practices, organizationalculture,firmreputation,andperformance.JournalofSustainable Tourism,27(3), pp.398-419. Gordon, G., 2017. Guiding Organizational Culture. InLeadership through Trust(pp. 53-62). Palgrave Macmillan, Cham. Kava, C.M. and et.al., 2018. Organizational culture and the adoption of anti-smoking initiatives at small to very small workplaces: An organizational level analysis. 5