Impact of Organizational Structure on Business

This assignment analyzes the relationship between organizational structure and business performance. It delves into the importance of clear hierarchies, communication channels, and decision-making processes illustrated through an example organizational chart. The assignment further examines concepts like process mapping, customer relationship management (CRM), and total quality management (TQM) within the context of organizational effectiveness.

Managing Business Activities to
Achieve Results

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship between different process and function of ABC Company with
organizational chart ...............................................................................................................1
1.2 Methodology to be used to map processes to ABC Company's goals and objectives by
drawing a process map...........................................................................................................2
1.3 Evaluation of the output of the process and elements require to build a quality gateway3
TASK 2 ...........................................................................................................................................4
2.1 Design a plan to promote goals and objectives for ABC Company to ensure plans are
consistent with legal, regulatory and ethical requirements....................................................4
2.2 Use SMART objectives, recommendations relating to the alignment of people and other
resources.................................................................................................................................7
2.3 Implement appropriate systems to achieve objectives in the most efficient way, on time, to
budget and meeting organisational standards ........................................................................7
2.4 Carry out work activities meeting the operational plan through effective monitoring and
control. ...................................................................................................................................8
TASK 3............................................................................................................................................9
3.1 Design systems to manage and monitor quality standards of ABC Company ................9
3.2 Quality culture to ensure continuous monitoring, evaluation and development of the
process for the ABC Company.............................................................................................10
3.3 Recommend improvements which align with the organisation’s objectives and goals and
results in improvements........................................................................................................10
3.4 Wider implications of proposed changes within ABC Company..................................11
TASK 4..........................................................................................................................................11
4.1 Plan on how to carry out risk assessments as required by legislation, regulation and
organisational requirements ensuring appropriate action is taken.......................................11
4.2 Demonstrate that health and safety regulations and legislation applicable in specific work
situations are correctly and effectively applied....................................................................12

4.3 Systematic review of organisational health and safety policies and procedures in order to
ensure they are effective ......................................................................................................13
4.4 Practical application of health and safety policies and procedures ABC Company......13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

Illustration Index
Illustration 1: Organizational chart..................................................................................................2
Illustration 2 Process mapping of customer service of ABC Company .........................................3
Illustration 3: Plan to system change...............................................................................................6

INTRODUCTION
The success of a business is highly depending on the good management styles of
managers. The right decisions take by the managers help the company to exploit new
opportunities for growth. Management creates team spirit and teamwork within the organization
by developing effective organizational structure (Deekay, 2009). It is act as a driving force for
the firm that leads to manage different business activities. The several reasons such as optimum
utilization of resources, develop good industrial relations, business expansion etc shows the
importance of management. The present study is relating to managing business activities and to
understand its importance, a case study of ABC Company is taking into the consideration. It has
found from the case scenario that recently, company is facing poor management style issues
including inadequate leadership and ineffective management (Anderson and Anderson, 2010).
The result of this is it have lead to reduction of thousand of jobs, close of services and delay
operations. Therefore, the objectives that will address under the current research are importance
of business process in delivering outcomes based upon business goals and objectives,
responsibilities of manager to implement operational plan, systems require to improve
organizational performance and need of health and safety in the workplace.
TASK 1
1.1 Interrelationship between different process and function of ABC Company with
organizational chart
Organizational chart is a diagram which shows the structure of the company and the
relationship and relativeness between the various positions. It is essential for the firm to set the
chain of command (WENDY, 2013). There are several reasons that defines the need of
organizational chart within ABC Company such as mapping the process of work, streamline
operations, appropriate allocation of resources and responsibilities etc. Organizational structure
of the firm is showing in below figure. Relationship between different process and function of
ABC Company:
The above organizational chart of ABC Company shows that different managers have
managed their respective departments. Their processes and functions have interrelated which
help in managed several business operation in effective manner (Burke, 2011). This relationship
can be understand by an example. Marketing department of the firm has the function is
developing many types of advertisement and promotional campaigning to promote the services
1

in the market. The process behind performing this function is first needed to conduct a market
survey and understand the perception of the customers. After this, the entire marketing team will
develop new ideas for attracting the end users. On the basis of outcomes of market research and
new thoughts, an advertisement and promotion campaigning will be prepared (Dale and
Iwaarden, 2013). For this, finance department will prepare the budget for it and on the basis of
successful marketing, sales department will forecast the profits and number of sales of services.
So, it can be know from the above instance that there is a strong relationship between ABC
Company different functions and process.
1.2 Methodology to be used to map processes to ABC Company's goals and objectives by
drawing a process map
Process mapping is a method of workflow management which needed to create a
transparent process. Generally, it is used to increasing and adjusting efficiency of the work.
There are various methods used for process mapping such as Process Flow Diagram,
Deployment Flow Chart, Value Stream Mapping etc (Rouse, 2016). In the case of ABC
Company, there are some goals and objectives which can be map by using different process
mapping methodologies. The major goal of company is to develop good relationship with the
customers by deliver them services on right time. Objective to achieve this goal is improving the
2
Illustration 1: Organizational chart
(Source: Organizational chart, 2015)

customer services and solving their queries within minimum time (Fire Protection Association,
2014). The methodology to map process of ABC Company's goals and objectives is Process
Flow Diagram. The reason of selection of this method is it will give clear understanding of the
process of developing the plans and strategies to achieve the objectives. By this, it will help in
effective utilization of the resources that will be used in complete the work. It will help the
company to develop a good communication and teamwork within the workplace to improve
customer relationship process (Mitra, 2012). With the help of this, the problems and loopholes in
the current procedures to map the process of ABC Company goals and objectives will be
effectively analyse. The Process Flow Diagram of customer service of organization is showing in
below figure.
1.3 Evaluation of the output of the process and elements require to build a quality gateway
Quality gateway is a set of organizational standards by which all requirements should be
pass. The aim of setting of it within the organization is to trap incorrect activities earlier so that
they can be solve as soon as possible (Moser, 2013). In the case of ABC Company, it is needed
to evaluate the output of the process and elements that require to build quality gateway.
3
Illustration 2 Process mapping of customer service of ABC Company
(Source:Customer Relationship Management Systems, 2016)

Smart objectives: It is a first element to build quality gateway of ABC Company. On the basis
of it, different long and short term strategies and plan can be made. The output of this element
will be successful meeting of goals and aim of the company within given time frame.
Quality culture: It is another element of quality gateway for ABC Company. Evaluation process
of this component shows that it helps in creating a innovative and good environment for the
employees (Simon, B., 2013). It motivates them to achieve the organization objectives and aim
in the right manner. Output of this element is developing new ideas and identify the new
opportunities for the business. Due to this, ABC Company will able to get the success in business
and effective utilize the resources.
Continuous change: It is foremost element require to build quality gateway of ABC Company.
Evaluation process shows that changes are needed within the organization because in the present
time, management has faced several kinds of issues and problems (Swayne, Duncan and Ginter,
2012). After setting of this as a quality gateway, the output will be improvement in different
business operations. The assessment process of continuous change output defines that new
changes will be easily manage and it will resolve various workplace issues.
Relationship between process and functions is described as under:
As per the above discussion, for the better development of ABC company selection
process, financial management and promotion activities are playing an important role. On the
other hand, organisation use so many procedures which are helpful for organisation function
activities. These process include the managerial function which provide management
information. For example; recruiting a new people on vacant place is an important task because
this person is responsible for company development. This work is done by human resources'
management for this, process company follow appropriate process where they taking the
interview, online test and all important thins which are necessary for the company. Therefore, by
applying this all process company hire a suitable candidate among all peoples.
TASK 2
2.1 Design a plan to promote goals and objectives for ABC Company to ensure plans are
consistent with legal, regulatory and ethical requirements
The ABC Company has been facing problem in management and leadership. It has
resulted in the decline of the overall performance of the company. They have to change their
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leadership style to more participative so as to increase the involvement of employees. There is a
need to change the entire system in the organisations (Nine Step Process, 2016). The plan to
change the management and leadership system :
Analysis internal and externals environment- In this plan, maker analysis the internal
and external environment and according to review they make a particular plan for the
organisation. It is very important while making any plan considered the both environment.
Training and development program- for achieving goal it is importation to provide a
proper trainin to their all employees. With the help of this, firm can easily achieve their all goals.
Personal transformation: The initial step begins with the personal transformation of the
leader. If a company wants to transform itself then either the leader has to transform or new
leader is recruited. A change in leader will ultimately bring change in the entire organisation
(Colquitt, Lepine and Wesson, 2011). It is important for ABC Company that the right person is
sitting at the right position. The leadership style has to be more participative so that the
employees get recognition.
Assessing the current situation: After the change in leadership style, the leader should
access the culture in the whole organisation. The revenues, functions, employee engagement,
operations and customer satisfaction all have to be analysed by building a scorecard of
performance (French, 2011). This would be helpful in creating a base for the change that has to
be implemented.
Changing Vision and Mission: The Mission and Vision of ABC Company has to be
altered according to the change. It is important to change it as there is change in leadership and
management style in the organisation. The changes in Mission and Vision should ensure that it
inspires the employees to adopt the change for the betterment of the organisation.
Values: The leader should build an environment of trust and integrity. The participative
leadership style encourages employees to give their feedback as such proper relation should be
build with them (Jackson and Parry, 2011). There should be two way communication and
collective decision making should be encouraged.
Compelling: The reason of ABC Company to undergo the entire system change is
because of its low performance. It is better for the company to accept the change as it will help
the company to become efficient.
5

Alignment with the Mission and structure: The final step is to align the whole business
process with the objectives of the company.
6

7
Illustration 3: Plan to system change
(Source: Nine step process, 2016)

2.2 Use SMART objectives, recommendations relating to the alignment of people and other
resources
To accomplish the various set objectives and aim, ABC Company needs to align human
resources and other resources in effective and efficient manner. In the this context, some
SMART objectives are as follows.
 To increase the sales percentage by 15% by end of 2016.
 To minimize employees turnover rate by 12% in the mid of 2016.
 To expand the online business in other overseas countries by the year of 2025.
 To improve the performance of employees by 25% at the end of 2017.
To achieve these above stated SMART objectives, ABC Company first of all needed to
change current management and leadership style. The management should adopt different kinds
of leadership and management methods by judging the current situations (Lee and Lawrence,
2013). By doing this, the alterations and other things will be manage more effectively. It will
help in right and optimum utilization of the resources during running various business
operations. Second is, ABC Company should give the training to the employees that will help in
development in them. By doing this, the knowledge level will increase and they will able to gain
new skills as well as core competences. It will leads to the staff members to give their
contribution in different business decisions (Runhaar, Konermann and Sanders, 2013). This will
help in optimum utilization of the several resources and attain goals and objectives. Third
suggestion is management level of ABC Company should adopt many types of motivational
techniques so that they can motivate the workforce in the right direction. Highly motivate staff
members will give their high contribution in achieving the business objectives(Shen, D'Netto and
Tang, 2010). On the other hand, by right allocation of roles and responsibilities within the
employees as per their core competences and knowledge level. Therefore, by implementing these
suggestions, it will become easy for ABC Company to align people and other resources to
accomplish SMART objectives.
2.3 Implement appropriate systems to achieve objectives in the most efficient way, on time, to
budget and meeting organisational standards
The management and leadership style defines the future of the company. ABC Company
has planned to adopt participative style of leadership in their system. They can adopt MIS
8

(Management Information System) and communication system in the organisation (What is MIS,
2016). This will enable them to improve their efficiency and effectiveness. The communication
system will be helpful in building good relations with the employees. The employees can give
their opinions and the management can help them in achieving their goals. The strategies can be
easily formulated and this will also reduce the operational problems that the company has been
facing (Snape and Redman, 2010). The introduction of TQM will accommodate in the
sustainable development of the organisation. ABC Company will get benefited from the new
system as they can monitor and check the progress of it. This will also make sure that there is
opportunity of continuous growth of all the business process and functions. It is essential for
them to set standards of performance and if there is any deviation then it has to be
removed(Walker, 2011). The new system would enable them to achieve the objectives on time
and in efficient manner.
2.4 Carry out work activities meeting the operational plan through effective monitoring and
control.
The review and monitoring of operational activities will make sure that there is no delay
and efficiency is maintained. There should be a control system in place which track the progress
of the company. The monitoring system will also help in finding the loopholes in the business
activities. ABC Company has also been facing trouble in achieving customer satisfaction. They
can introduce a customer management system which will help them in improving their services
(Wilson, 2013). It will store all the data of the clients and they can get customised services from
the company. It will not only increase their revenue but the customers will also get satisfied. The
leadership and management should also focus on implementing it in the process. The strategies
should be formulated keeping the customers needs in mind. There should be an effective review
system which not only gathers the feedbacks of the customers but also measures the performance
of the operational activities. The quality standards can be used to keep a track of the actions
(Blomme and Bornebroek-Te Lintelo, 2012). If the management finds that their efficiency is
below the standard set then corrective actions should be taken to resolve that issue.
TASK 3
3.1 Design systems to manage and monitor quality standards of ABC Company
ABC Company has been facing operation failures which have impacted the overall
performance of the company. It would be beneficial for them to adopt TQM (Total Quality
9

Management) in the entire business processes. TQM is a long term activity that helps in
improving the business process, services and culture of the organisation. The ABC Company
needs involvement of employees and hence TQM focuses on building self-managed teams. The
process map is designed for different activities and is continuously monitored to ensure that the
quality is maintained (Calvo-Mora and et.al, 2015). It will be helpful for cited firm in accessing
the needs of the customers and implementing the same in the organisation. They have to make
sure that there is proper coordination between the various departments of the firm. ABC
Company has been facing operational problems that could be resolved through the application of
this quality system. The following points would be helpful in implementing quality standards in
the business process and organisational culture: Communication system: The management of ABC Company has not been able to
maintain effective communication with the employees. A proper interaction system
would help in removing the inefficiency in management and leadership problem that
ABC company has been facing. MIS (Management Information System): MIS system will provide the efficiency and
effectiveness in the decision making process and it will help the mangers to manage all
the departments together. Formation of strategy: It will provide the organisation with a strategy in order to ensure
deviation from the path of working. Integrated business process: TQM can integrate different business process together (Ooi
and et.al, 2012). ABC Company has been facing trouble in aligning the resources and
people together in the organisation. As such this system would help the company to
integrate its processes together.
 Effective management: The management has to establish good communication with its
employees. The two way communication would be beneficial for ABC Company in
boosting the morals of the employees.
3.2 Quality culture to ensure continuous monitoring, evaluation and development of the process
for the ABC Company
The implementation of MIS and TQM system would help ABC company in maintaining
quality standards in the organisation. There should be continuous monitoring of the new system
that has positive effects on the employees. The operational problems of ABC Company like
10

delay, mistakes and improper services should be avoided. The problem finding has to be a
continuous process in the organisation. The training methods should also be changed according
to the TQM and MIS system in the organisation (Yorio and et.al, 2015). The company can use
balance scorecard method to align its various business activities with the mission and goals of
the organisation. The top management should ensure that there is continuous improvement in the
company and the quality standards are maintained all the time (Larson, 2015). The activities
have to be in alignment with the goals set up and it should be monitored. If any deviation is
found then, proper actions have to be taken to resolve it. TQM and MIS system would ensure the
continuous monitoring and development of all the business process in ABC Company.
3.3 Recommend improvements which align with the organisation’s objectives and goals and
results in improvements
The objective of ABC Company is to increase their sales and for this; they need to
promote its services. They can use different marketing strategies like digital marketing, social
media and emails to improve their sales. The employees have to be motivated in the
organisation. The management and leadership style has to be flexible enough to allow initiation
of the employees. This will not only boost the morale of the employees but it will increase their
efficiency as well (Armstrong and Taylor, 2014). Further, company manager use different kind
of tools for the better development of employees. Like they are providing them a proper training
so with the help of this they raise their capability and their knowledge. For an alignment people
firm change their strategies and for analysis their performance company use scorecard and bench
marking system. With the help of this firm analyssi their performance at workplace. The ABC
company can introduce training programme for the employees so that they can learn new
techniques for doing the same work. The training and recognition of employees would help them
to achieve its objective of reducing the employee turnover and increasing efficiency. The
company also has to change its recruitment process. The stages of recruitment like planning and
strategic development has to be more stringent so that only competent professionals work in the
organisation (Belschak and Hartog, 2010). In order to increase the revenue and business, ABC
Company has to maintain the same quality and standards of the services that are offered to the
customers . For this, they can adopt customer management system that will keep a track on all its
customers. The data and the feedback of the customers can be stored in it. This will ensure that
customers get the best of services and the quality is maintained. The business process has been
11

evaluated and improved which will ultimately help the organisation to achieve its goals and
objectives.
3.4 Wider implications of proposed changes within ABC Company
The ABC Company has to implement lot of changes in the organisation. The flexible and
participative style of management would help the employees to grow. But it would also put
burden on them as they have to take more decisions by themselves. The training and recruitment
process would make the employees and the management more efficient (Introduction to Total
Quality management, 2016). ABC Company has to adopt six sigma tools in the business process.
It will give them the opportunity to find out the defects in the process and it could be easily
changed. The change in various processes in the organisation can make the employees resistant
to the change. But the management has to make sure that proper training and counselling is given
to them so that they adapt to the change. The maintaining of quality in the process would mean
that the top management of ABC Company has to remain engage in regular monitoring and
evaluation of the process. It will make their task more difficult as they have not been able to
handle present situation as well (Total Quality management (TQM), 2016). But implementation
of the proposed changes is very essential for ABC Company. They won't be able meet their goals
and objectives if they continue to use the present aspects. There is need to redefine and change
the entire management and leadership style of the organisation.
TASK 4
4.1 Plan on how to carry out risk assessments as required by legislation, regulation and
organisational requirements ensuring appropriate action is taken
The risk assessment is very important for ABC company as they have been facing lot of
issues. The have more problems in internal business environment like operational, marketing,
strategies, financial, work force and management problems. There are certain regulations and
rules that are essential for risk assessment (Smith, Farmer and Yellowley, 2013). The ABC
company has to follow Health and safety regulations, manual handling operations regulations
and Personal protective equipment at work regulations. The five important aspects that ABC
company has to consider are:
 Identification of hazards: There should be regular check for any risks that may arise in
the business like delay in operations, financial risk, risk relating to employees etc
12

(Jackson and Parry, 2011). The company has to identify all possible risks within the
organisation.
 Identifying the impact: The ABC company has to make sure that who is at risk and how it
can impact a person. All the risks relating to the workers, staff and management has to be
taken care of. The employees opinions can also be useful in assessing the risks.
 Assessing the risk: After assessing all the risks associated with the business and the
employees. The next step for ABC company is to be proactive and take decisions to get
rid of that risk.
 Make records: The recording of previous risks can be beneficial for ABC company. This
will allow them to take precautionary actions against it and the impact of the risk can be
reduced.
 Review and monitoring: The ABC company needs to adopt all the precaution and the
management should be given training as well to handle any risks that occur.
4.2 Demonstrate that health and safety regulations and legislation applicable in specific work
situations are correctly and effectively applied
There are certain safety regulations that ABC company has to implement in their
premises. The Health and Safety at Work Act 1974 gives certain guidelines which has to be
followed. There should be a person appointed in the premises to carry out the risk assessment
and he should be consulted for any issues. The employees should be given adequate to ensure
they are competent to work in the organisation (Suresh and Venkatammal, 2010). There is also
fire safety and evacuation rules that has to be followed. The staff has to be trained and guided
about the fire instructions. The office premises should have proper safety measures in case a fire
breaks out. There should be fire risk assessment and plans for the emergency. Apart from that,
there should be sprinklers, fire extinguishers,first aid kits and insurance of employees. The ABC
Company has to maintain a quality working environment for its workers. The machines and
equipments which can cause injuries should not be allowed to use unless the person is trained in
that (Yorio and et.al, 2015). The employers also duties towards disabled workers, young
employees, night workers and shift workers.
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4.3 Systematic review of organisational health and safety policies and procedures in order to
ensure they are effective
There are certain health and safety policies that are implemented in ABC company. They
have been able to maintain a healthy working environment for the employees. The premises have
been kept neat and clean so there is no hindrance in the daily operations. But still the employees
lacks proper training and motivation to do their duties efficiently (Simon, B., 2013). There
should be proper environment check and premise condition inspection which is not there. The
company should have been doing behavioural observations of the employees. The ABC
company has a feedback system in place to ensure that the accidents does not happen again.
Though they have all the basic safety policies but they lack in proper monitoring and audit of the
facilities. There should have been a structured safety management system in the organisation
which would keep a track of all the plans. If there is any limitation then it should be removed to
ensure that all the rules have been complied with (Mitra, 2012). The organisation needs to
monitor and review its policies to see if they are adequate. There should be a medical room
which can be used at the time of emergency situation. It should have the basic facilities which
are required during a casualty.
4.4 Practical application of health and safety policies and procedures ABC Company
The health and safety procedures needs to be implemented in ABC Company as it is the
basic requirement and a regulation. There should be monitoring of the policies to ensure that they
are adequate. The health and safety policies would have positive implications on the company as
quality working conditions would boost the morals of the employees. Regular audits of training
programmes, management structure and safety measures has to be carried out (Shen, D'Netto
and Tang, 2010). Furthermore, there should be a process to implement the new changes and legal
requirements for the company. The top level management has to ensure that all the workers have
knowledge about the safety measures and their opinion have been taken. The managers should
also create standard as per the industry and implement the same in their premises. It would be if
the company creates certain targets:
 Completing audits and inspections as per the schedule
 Training people
 Inviting opinions of employees to improve the policies
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 Maintaining the standards
 Periodical checks of machines and equipments
The health and safety policies would help ABC company to streamline its operations which has
been troublesome for them. The employees will also get motivated if they get quality and risk
free working environment in the organisation.
CONCLUSION
From the above study, it can be concluded that management has an crucial part of every
organization. It has helped in managing the different kinds of business activities in right direction
and align the available resources with the objectives in effective and efficient manner. ABC
Company has faced many issues within the workplace and it has affected its performance and
other areas. The evidence of the research has shown that there is a strong relationship between
organization process and functions. Process Flow Diagram has helped out the company to map
process of development of goals and objectives. To meet the set standards, quality gateways has
required to from. On the other hand, by setting out the different activities, the operational plan of
ABC Company has effectively monitored and controlled. Various systems have used by the firm
to achieved quality standards. The proposed changes have both positive and negative
implications and these have wider for the company. Beside this, health and safety regulations
have imposed by ABC Company for safety and security of the employees.
15

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