Introduction in Management: Balfour Beatty Case Study

This case study provides an introduction to management by examining the management structure, marketing mix, and human resources functions of Balfour Beatty, a UK-based infrastructure company. It includes a background of the company, its organizational structure, the 4 P's of marketing mix, and an overview of its human resources functions.

Introduction in Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of Balfour Beatty.....................................................................................................3
Organization's management structure..........................................................................................4
4 P's of marketing mix.................................................................................................................6
Presenting overview of organization human resources functions................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The administration of organization is known as management who are responsible for
setting strategies and coordinating with employees to accomplish objective of organization by
utilizing available resources. The management of organization are done by managers who have
several roles and responsibilities towards organization. The concept of management involves
planning and organization of different activities in order to accomplish organizational goals and
objectives. The project is aimed with providing knowledge regarding management and their
responsibilities and the organization which is being selected for the project is Balfour Beatty
which is UK based company. The project will outline the background of company along with
this it will include type of business it is engaged in and area in which it is operating. It will
highlight the organizational structure of company and its advantages and disadvantages to
business and its functioning. There will be a detailed discussion on 4 P's of marketing mix and
lastly it will also include different functions of human resource management.
MAIN BODY
Background of Balfour Beatty
Balfour Beatty is an international infrastructure company which is based in United
Kingdom and headquartered in London. The company is dealing in professional services,
construction services, support services and infrastructure services. It was ranked as the biggest
construction contractor in UK in 2021. The founders of company were George Balfour and
Andrew Beatty. The company is operating with numerous of employees which are around
24500. Customers of company are mainly government departments and agencies, regulated
utilities and private sector organizations. The core values of company are integrity, teamwork,
excellence and respect. Company is focus to do work by developing, building and maintaining
innovation and efficient infrastructure which can support communities and enable economic
growth (Balfour Beatty, 2022). The company is a member of wide range of industries and trade
bodies which reflects significant breadth of its capabilities and corporate priorities. There are
various big projects that have been completed by company which includes Kut Barrage, Iraq,
Sheffield Supertram, US capital Visitor Center, Green Line Extension, Cambridge, etc.
The competitors of company are Kier Group Plc, Tutor Perini Corporations, Aecom,
Costain Group PLC, Ferrovial SA, BAM Nuttall Ltd. There are mainly four types of business in
UK: sole trader, partnership, company and corporations. Balfour Beatty is a company and it is

further bifurcated into public limited. The public limited company also known as PLC is a
company in which shares of organization are publicly traded. The shares of company are offered
to public and it is owned by government. The purpose of Balfour Beatty is to lead the
transformation of industry to meet future challenges. The company is operating in global market
as its operations are spread across the UK, US, China, Singapore, Germany, Canada, Ireland,
Thailand, Hong Kong and many other countries.
Organization's management structure
Organizational structure is an outline of system, activities and process of company which
guides employees towards achievement of goals and objectives of entity. The activities of
business include rules, roles and responsibilities. The organizational structure of company also
determines how the information of company will flow between different levels. There are
various types of organizational structure which can be followed by company according to their
needs (Joseph and Gaba, 2020). The different types of organizational structure are: hierarchical,
functional, flat, divisional, matrix, team based and network organizational structure.
Hierarchical structure: In this structure the organizational chart is formed in pyramid structure
where the chain of command starts from top and each employee in structure has a supervisor.
Functional structure: This structure is similar to hierarchical structure where employees are
segregated in different functional departments according to their specific skills. Each functional
department in organization is managed independently.
Flat structure: The entities which have few levels of management and employees follow this
management structure. This type of structure is generally followed by start up companies and
organizations which wants to maintain less supervision and more employee involvement opt this
structure.
Divisional structure: Organizations which have different business units or divisions follow this
structure where each division have their own functional units (Chaurasia and et.al., 2020). This
structure is generally opted by large companies which various divisions.
Matrix structure: Matrix structure structures in form of grid which shows cross functional
teams which are formed for special projects.

Team based structure: Team based organizational structure is meant for disrupting the
traditional hierarchy and focus more on problem solving, cooperation and giving employees
control.
Network structure: It is an internal structure which focus more on communication and
developing relationships and it is a management structure with aim of spreading of resources.
Balfour Beatty is a construction company and is also engaged in providing other services
too. The company has divided its business into three business units and each business unit have
their own functions. The organizational structure which is followed by company is hierarchical
management structure. This structure relies on different levels of authority with chain of
command which is connecting multiple management levels. The decision-making process in this
structure is formal and flow from top to bottom (Harris and et.al., 2019). The structure resembles
the form of pyramid where each level of management have clear lines of responsibilities and
control and employees have clear understanding of their roles and responsibilities and person to
whom they are accountable to. Hierarchical structure gets wider when it moves downwards
which involves chief executive at top, who is followed by supervisors, managers and employees
at middle and lower level. There are various advantages and disadvantages of hierarchical
organizational structure which are being discussed below.
Advantages
Clear line of authority: This structure gives a clear outline of roles and responsibilities of
managers and employees in company and establishes clear authority for work within
departments. This structure flows from top with chief executive at top and further the structure is
divided into different functional departments which are managed by different functional head or
managers. Therefore, in this structure everyone has knowledge about their roles and
responsibilities and their accountability. The employees are segregated according to their specific
skills which help in effective management of each function and this ultimately helps company in
smooth functioning and improve its performance.
Clear lines of communication: The clear authority leads to clear lines of communication as
employees have clear understanding of their supervisors and to whom they are required to get
communicated with. This flow of communication gives an advantage of clear and effective
communication within company and enables in quick and efficient decision-making (Advantages

and disadvantages of hierarchical structure, 2022). The structure creates a relationship between
managers and employees which results into effective coordination within departments.
Specialization: Balfour Beatty is a large scale organization and it is essential to manage variety
of activities which range from human resource and accounting to marketing and purchasing.
Hierarchical structure of company divides various activities or functions of company into
different departments and all are managed by different managers followed by employees. The
managers and employees are given roles and responsibilities according to their qualification and
skills which result into specialization. Specialization helps company to focus on particular area
which can lead to maximum efficiency.
Disadvantages
Poor flexibility: This type of structure tends to adapt slowly to changing needs which is the
biggest disadvantage for company as to ensure success it is essential for company to adapt
changes that take place in market and business environment. This problem can impact the
functioning of organization.
Organizational disunity: The structure creates interdepartmental relationships and inter
dependency. This may be a hurdle for company in timely functioning of its business activities
and create conflicts between departments. The dependency of departments on each other may
lead to situation where each department may blame other for non achievement of targets.
Delay in decision-making: The long structure with various levels make it difficult for company
in communication which creates delay in decision-making process. The complicated chain of
command slows down decision-making process. Vertical communication becomes delayed due
to horizontal communication channel.
4 P's of marketing mix
Marketing mix can be defined as set of actions and tactics that are used by companies to
promote their business and products and to attract customers. This is referred by 4 P's which are:
product, price, place and promotion. The marketing mix is a marketing strategy which enables
company to provide customers with a good combination of products and services at reasonable
or fair price which can be affordable by all range of customers. The P's of marketing mix has
included three more P's which are usually followed by service organization (Wichmann and
et.al., 2022). The other three P's of marketing mix are packaging, positioning and people.

Following is the marketing mix of Balfour Beatty which will provide a detailed understanding of
products or services which are offered by company, pricing strategy used and place and
promotion strategies which are adapted by company in attracting customers and enhancing sales.
Products: Products refers to the items or services that are offered by company for earning
profits. For an organization it is essential to offer products or services which can ensure
fulfilment of customers needs and which can be differentiated from products of competitors. It is
very important for company to engage itself in research and development so that it can produce
products which are according to customers' demand and preference (Thabit and Raewf, 2018).
Balfour Beatty is an infrastructure company which is engaged in construction services, support
services and infrastructure services. It has a broad portfolio and provides selected and premium
products to niche customers. The products that are provided are customized which are according
to specification of customers and their needs. Company maintains a high focus on innovations in
products and services which are offered by it to ensure higher customer satisfaction and
retention. The infrastructure services provided by company includes providing finance for
developing projects. Construction services are managed strongly by company and is leading
construction service provider in UK. The support service of company involves services such as
outsourced maintenance, up-gradation and management services in power transmission, road and
rail development and maintenance services, etc.
Price: Price refers to value at which products or services are offered to customers which is
depended on various factors such as cost of production, segment targeted, ability of market to
pay and demand and supply of product. There are several pricing strategies which are used by
companies for setting prove of their products or services. Price of the product is also used for
enhancing brand image of company and its products (Mintz and et.al., 2021). The price set in
construction service will be according to cost of production, reputation, embodying managerial
and problem solving skills. The pricing strategy adapted by Balfour Beatty is relative pricing
strategy which are affordable by its targeted customers. Price of products delivered by company
includes high quality raw material cost, other value additions and enhanced customer experience
it delivers. Effective pricing strategy followed by company enables it to enjoy stable revenue and
profit margin.
Place: Place refers to the point of sale of products or services. It is very essential for organization
to choose an appropriate selling point by keeping an eye on its targeted customers. Along with

right product and right price it is also necessary to offer products at right place. Companies are
required to make it easier for customers to but their products by delivering it at a convenient
place. Balfour Beatty focus on creating a strong relationship with its customers therefore,
maintains high control in its distribution strategy. The company has its own website where
customers can connect with it and obtain services which are offered by company. Place of
service for construction related services are project site which can also be used for promotional
purposes by company.
Promotion: These are the activities which are undertaken by organizations for developing
awareness for its products or services among customers. Promotional activities of companies
include advertisements, press reports, incentives, etc. Balfour Beatty undertakes its promotional
activities through its website and invest in digital marketing to attract targeted customers. The
targeted customers of company includes government and agencies and private sector
organization. The effective promotion for company can be achieved with the support of
management of entity.
Presenting overview of organization human resources functions
Human resource functions are very much essential as it helps the company to hire best
professionals that are essential for the growth and success of the company. Also, human resource
function are very much wide and includes variety of things that are been briefly described as
follows:
Recruitment and selection: This is the main function that allows the Balfour Beatty and
other organizations to hire those candidates that have required competencies and skills to carry
out various task within the workplace. Also, within Balfour Beatty there has been appointed
team that is responsible for ensuring that only those people are hired that would help in the
growth of the business in the future. Also, it is very much important that only those applicants
are chosen through screening that are capable enough to fulfil the required duties within the
workplace in the most efficient manner (Yuvaraj and Divya, 2018). Moreover, interview and
certain tests are the ways through which selection process is been conducted within Balfour
Beatty so that right applicants are provided the job offer. Furthermore, the cited firm ensures
that right kind of details are been provided in the job advertisements so that candidates than
apply accordingly based on their competencies.

Moreover, having right kind of business strategy and resources would help the firm to
conduct the interview and other selection process in best of manner so that there is no wastage
of time and money. Furthermore, having the right kind of employee on boarding program has
also helped the firm to reach to garter height of success. Also, if recruitment and selection
within the organization is conducted in right manner than it would reduce the employee turnover
and maintain high level of morale among the employees. Moreover, organization would work
more on transparent basis and develop consistency in carrying out certain operations within the
workplace in the most efficient manner.
Employee relations: This process is mainly concerned over developing the policies so
that best of employee relations are maintained within any workplace. Also, in context of
Balfour Beatty it can be said that best of policies and strategies have allowed in employees to
openly communicate and share ideas with their supervisors. Also, the company employees
seems to remain highly motivated to perform the best roles that have been assigned to them
during certain point of time. Furthermore, delivering the people the best of support would help
the company to grow further in the future in well-defined manner. Moreover, best of employee
relations are maintained through developing the positive work culture where each employee
ideas and opinions are respected .
Also, in case of Balfour Beatty best of employee relations could be maintained through
avoiding the workplace conflicts and bullying that harms the individual sentiments. Moreover,
ensuring workplace safety of employees is another way of maintaining the best of employee
relations in long run within any organization (Khodzhaevich, Davlyatovich and Yuldashevich,
2019). Thus, employee relations are way through which the company is able to move forward
in target markets through positive approach. Also, in cited company employee's relations are
maintained through offering the career development opportunities and also ensuring that there is
existence of proper feedback channels so that employees feel free to share any kind of queries
or information with their managers.
Talent management: It is strategic approach that helps the firm to get the right kind of
talent onboard and help each other grow in the most efficient manner. Also, through having the
right kind of talent management would allow the firm to have the right kind of candidates and
also develop the best performance management systems within the workplace so that smarter
decisions are made in the end (Muzaffar,2022). Furthermore, having the best talent management

strategy would help the firm in aligning talent goals with larger business objectives. Also, it
would help the firm in fulfilling the employee expectations and delivering the certain promises
in best of manner. Moreover, company would be able to take more effective workforce
decisions that would help the organization to achieve greater success in the future.
Thus, the talent management is much wider concepts as its includes detailed workforce
planning, recruitment, on-boarding, development of proper training and development programs,
designing best of the compensation plan to keep the employees satisfied, succession planning
and much more. Hence, to carry out all such activities in systemic manner it is very much
required that company has developed the best team within the workplace that is competitive
enough to understand the details of the organization and reduce overall cost of the company so
that best results are derived in the end (Jędrzejczyk, 2019). Moreover, all such activities within
the cited firm are also regularly monitored and controlled so that employees do not find
difficulties in performing any such kind of activities and also the company is able to plan better
things in the future.
Thus, through carrying out such human resource function within the workplace the cited firm
had been able to take more effective and fast decisions that will help in maintaining the desired
level of productivity and efficiency within the working of the business on daily basis.
CONCLUSION
From the above report it can be concluded that Balfour Beatty has been successful in
carrying out various activities within the firm through developing best plans. Also, the report had
analysed about working of the company through planning the best strategies. Furthermore,
management structure of the company had also been explained along with that had discussed the
advantages and disadvantage of the having such kind of structure in long run. Moreover, the role
of marketing and marketing mix had also been analysed so that better activities might be
planned for the future operations of the business. Lastly, the study had discussed the process of
recruitment and selection that had been followed within the firm over the years and had also
identified about various talent management strategies that are used within the business.

REFERENCES
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International Scientific-Technical Conference MANUFACTURING (pp. 14-24).
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making: A retrospective and road map for research. Academy of Management Annals.
14(1). pp.267-302.
Khodzhaevich, A. K., Davlyatovich, K. S. and Yuldashevich, M. A., 2019. The role of the
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Online
Balfour Beatty, 2022. [Online]. Available through: <https://www.balfourbeatty.com/>
Advantages and disadvantages of hierarchical structure, 2022. [Online]. Available through:
<https://smallbusiness.chron.com/organic-structure-organizational-design-58657.html>