Evaluation of Organizational Performance and Culture of Deloitte

This report evaluates the organizational performance and culture of Deloitte, a professional service industry providing finance and management services. It discusses the existing network organizational structure and its benefits and drawbacks. It also explores different types of organizational structures and cultures. The report concludes with recommendations for change. Subject: Business Management | Course Code: BMGT101 | College/University: Not mentioned

INDIVIDUAL REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluation of the organizational performance with respect to the existing structure and the
culture of Deloitte........................................................................................................................3
Change managements model.......................................................................................................9
Recommendations for change....................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
The organizational structure can be understood as a process through which an enterprise carries
out its business objectives within the organization. An organizational structure state the hierarchy
in which the functions or the work carried out by the company flows among the employees of an
organization. On the other hand, an organizational culture can be described as a way in which the
enterprise expects its employees to behave within the enterprise. Different organizations promote
different kinds of organizational culture within their organization.
The present report is based on the study of Deloitte Touche Tohmatsu Limited which is
headquartered in London, England, United Kingdom (Faist, 2022). The company belongs to a
professional service industry that provides the customers with services related to finance and
management such as Audit, management consulting, financial advisory, risk advisory, taxation
and legal advices in the market. The company was founded by William Welch Deloitte in the
year 1845, i.e., 177 years ago. The company has a total of around 3,45,374 employees and its
provides its services all over the world. The key people of the company includes Sharon Thorne
as the Chairperson of the Deloitte Global and Punit Renjan as the CEO of the Deloitte Global.
The present report aims to study and evaluate the existing organizational structure and the
organizational culture of the Deloitte as an organization across the world. The present report will
also recommend a number of changes to the company that will help the organization in
enhancing their organizational performance by making the necessary changes within the
structure and the culture of the company within the market.
MAIN BODY
Evaluation of the organizational performance with respect to the existing structure and the
culture of Deloitte
Organizational structure
It has been identified that the Deloitte follows a network organizational structure within
the enterprise all over the world. A network organizational structure can be described as a
structure of an enterprise in which the employees of the company divide themselves in small
groups or teams within the company in order to work independently and on their own terms of
working within the company (Al Dari, and et.al 2020). This kind of structure helps the helps in
achieving the organizational objectives in their own ways with respect to the company. In this

kind of organizational structure, an enterprise does not follow the top to bottom approach of
conducting the routine activities and delegating the authority and responsibilities within the
company. Similarly, this kind of structure is followed by the Deloitte within their company.
However, this structure has its own set of benefits and drawbacks in association with the
company. It has been identified that the network organizational structure helps the Deloitte in
enhancing the performance of its employees within the company in several ways. They are:
 Since, the Deloitte allows its employees to let go of the other functions of the company
and focus specifically on achieving the efficiency and effectiveness in its core
competency within the company (Norris, 2018). For instance, Deloitte is specialised in
providing its clients with exclusive services with respect to the management and finance,
it will keep on focusing on providing the clients with the same by constantly working on
it to improve the same. It will not focus on extending the range of services already
provided by the company. This helps the organization in enhancing the focus of its
employees and thus increase the organizational performance as a whole.
 The use of the network organizational structure within the company provides the
employees and the organization with several flexibilities within the enterprise. One of the
major reason which leads an organization towards inculcating a network organizational
structure within the company is the benefit of flexibility. Since, the company follows the
network structure, it helps them in changing the technique of consulting or problem
solving as and when it is required by the company.
However, there are some drawbacks of the network firm structure of the company which is
affecting the organizational performance of the Deloitte within the market. The major drawbacks
affecting the organizational performance of the company within the are as follows:
 It has been identified that the Deloitte follows a network firm structure, it has spread its
functions all over the world (Auchter, and et.al 2018). As network of an enterprise grows
with time, it gets troublesome for the company to control the network in which the
organization has spread its operations. Similarly, the Deloitte operates on a global level.
The company finds it difficult to control the operations of the workforce in a global
context which in turns affects the operations and functioning of the company across the
globe.

 Another reason that affects the organizational performance of the company within the
market is the lack of secrecy which has been developed because of the network firm
structure of the company. This happens because when firms outsource several works
from other organizations across the world, there are chances that the firms which have
collaborated with the Deloitte can spill the secrets of the company within the market.
This puts the company at risk and therefore, affects the organizational performance of the
Deloitte within the market.
 The network firm structure also affects the organizational performance of Deloitte
because of the reduced amount of profits. When an organization outsources its works or
collaborates with other companies in order to carry out certain activities within the
company or provide the clients with their required services, then it is the responsibility of
the organization to provide the company with a share in their profits from whom the
organization has took the required help (Mancini, and Benton, 2018). This reduces the
profits earned by the Deloitte across the globe by providing their clients with the
professional services in which company is specialised. This decrease in the profits of the
company affects the profitability of the organization and also affects the employee
performance. This is so, because a decrease in the profitability of the company also
affects the income of each and every employee within the company.
Types of organizational structures
Functional structure: This type of structure groups workforce into various department through
work specialization. In each department has assign leader highly experience in their job functions
of every employee supervised by them. Mainly it implements as top to bottom decision-making
process so, in this the department managers report to the top management. Here, the leaders of
various team communicate regularly and also coordinate their strategies. While low level
department that is employees have litter idea about the processes taking place in their
departments (Velikorossov, and et.al., 2020).
Hierarchical structure: this type of structure set up clear authority for departments and work.
Here, managers have clear authority according to the management level that is top to bottom and
have power to punish and reward behaviour, allocate resources and also give orders to
subordinates. In other word, company chain of command, atypically from the senior executive
and management to general employees (Abbe, and et.al., 2021).

Flat organizational structure: in this type of the structure there are middle managers between
the top management and employees. This type of structure increase employees involvement,
required less supervision, and also boosts trust level in the work place. Its goals or objective is
had as litter hierarchy thus possible. Flat structure has strong focus on customers, few levels of
the management, decentralize management approach (Rajan, 2021).
Matrix structure: In this structure the team members reports to the various managers at once.
So having many supervisors permits organization to get faster project delivery and wide
interaction. This also help in avoiding authority confusion and also prevent conflicts between the
managers.
Team structure: this type of organization structure creates smalls teams that focuses on
providing services and products. These teams are able to solve problems and make decision
without involving the thirds parties. Here team members are obligated for managing their
workload as well as having full control over project. This type of structure works well for the
manufactures and global organization.
Network structure: a structure goes beyond from the internal company structure. It is basically
an act of combining efforts of two or more companies with aim of delivering one service or
product. Here teams are collective from full time employees and freelance specialists as well
(Bai, Song, Li, and Yu, 2019).
Organization culture
It is collection of expectation, values and practices that inform and guide actions of team
members. Organization culture defines a proper way to act within the organization (Zaki., 2019).
Company culture consists of shared values and beliefs set up by the leaders and then reinforced
and communicated by different methods, finally shaping employees behaviours, understanding
and perceptions. Organizational culture sets context for everything that enterprises does. A
strong culture is denominates between most successful organizations. Here all consensus at top-
level regarding culture priorities ans such values manly focus not only on employees of the
organization but also on organization goals as well as objective. Leaders in the successful
organization live their culture regularly and also go out of different way to communicate about
their culture identities to their employees and prospective new hires as well. Leaders are clear
about their objectives and values and how such values define their company and also identify

how the company run. If there is ineffective culture then it brings down organization and
leadership. Along with this it results in disengaged employees, poor customer relations, lower
profits and high staff turnover etc. so it very important that every employee of the organization
understand culture in general sense as well as organization specific culture. Organizational
culture also helps in improving performance of the employees and guide decision- making
process.
Types of organizational culture:
Clan culture:
A clan culture is individual focused in sense that organization feels family like. Clan culture is
highly collaborative working environment where every people are valued and also
communication is top priority. This culture is frequently paired with the horizontal structure,
that helps to break down many barriers between employees and C- suits, it also encourages
mentorship opportunities. Who is following this culture that organization are action oriented and
also embrace change, this culture primary focus is on team work and mentorship. It is beneficial
for many companies because this culture boast high rates of the employee engagements.
Therefore, if the employees are satisfied their they give their 100 per cent in the work. So, if
employees of the company is satisfied then they will make customer satisfy. Because of highly
adaptable working environment, creates great possibility for the market growth within clan
culture. There are some negative point of this culture such as due to family style culture its very
difficult to maintain company growth. Sometimes day to day business operation can be seen
cluttered and also lacking direction (Knikker, 2021).
Androcracy culture :
The primary focus of this structure is innovation and risk taking. This culture are rooted in
adaptability and innovation. This types of culture are used by the company that are on cutting
edge of industry such as they are looking for development etc. so for making innovation or
development they have to take risk. Androcracy culture values people in sense that every
employee of organization encouraged to think critically as well as creativity and bring their
innovative ideas to the table. Because Androcracy culture of the organizational falls within
external focus and also differentiation category. Here, new ideas required to tied to the market
growth as well as company success. There are some benefits of this culture such as its
contributes to the advanced profit margin, and notoriety as well. In this culture employees stay

motivated and more communicated with goals of breaking mold. With the focus on new ideas
and creativity, so professional development opportunities are very easy to justify. There are some
negative points also such as risk factors, to take new venture may also harm company as well as
employees. In this culture managers pressure their employees to come up with new and
innovative ideas so its foster competition between the employees. This culture focus on risk
strategy and brainstorming sessions that offers employees an opportunity to share their ideas
which may help company further. Here the successful ideas encourages team to think outside
from the box.
Market culture
The primary focus of this culture is growth and competition. This culture prioritized profitability.
It is all about profit margin and always staying ahead of competition. This is result oriented with
the external focus to make sure customers are satisfied. There are many benefits of this culture
such as toxic atmosphere, maximized profits, driven employees etc. this culture make more
profits as well as capture or cove whole market shares as much as possible. However, market
culture may come with more stability and also may lead to profitability and success. This culture
is also having some drawback such as lead disunity, burnout and stagnation etc.
Hierarchy culture:
This culture focuses on stability and structure. It main motto is to get work done right.
Organizations with this culture fit to traditional corporate structure. This culture suitable for
businesses focused on the internal company by way of having clear chain of command and also
multiple management tiers that may separate leadership and employees. In this culture there are
some set way of doing thinks which also makes them risk averse and stable. This culture have
benefits such as internal business as priority, and this culture have clear direction. In this there is
well define processes that cater company's main objective. There are some drawbacks such as
this is rigid in nature and also have little space for creativity so its make company slow in
adapting changes in the market place. This culture not encourage employees feedbacks (Ameen,
Ahmed, and Abd Hafez, 2018).
Deloitte company culture is to built on collaboration, inclusive, opportunity and high
performance. So it helps their professionals to make different collectively and individually.
Deloitte values comprise that commitment of each other, strength from the diversity, integrity
and outstanding values to the customers. These values have been pillars supporting company for

decades. As company is best know for global provider of consulting, tax, assurance and audit,
risk advisory, financial advisory and other related services. The culture at company was
poisonous, full of internal conflicts that is between employees and managers and self-centred.
But some employees are satisfied with the company culture. As they follow collaborative and
respectful culture. Deloitte represent everything they do. Their ideas are change world and also
redefining what its mean to professional services business. Company people work hard for
company and company reward them with culture recognition that provide compensation,
extraordinary and flexibility experience. Company follow clear culture, they not only focuses on
achievements and numbers, but they also focus on connect as people (Bonnamy, 2021).
Change managements model
Change management is systematic framework to deals with the transformation and transition of
company's processes, structure, culture, technologies and goals as well (Galli, 2018). The main
purpose of change management is to apply strategies for effecting change, helping people to
accept change and controlling change. When positive change is implements correctly then it
helps to reduce waste in an organization, thus its reduce cost. Effective change helps
organization make good choices. It also increases productivity, improve profitability and
decrease risks of an organization etc. it drives successful acceptation and the usage of change
within an organization. It permits employees to commit and understand shift and also work
effectively as well as efficiently during it. Communication is very important in change
management process. A change model will help to determining potential areas of implementation
and resistance strategies planned to eliminate or reduce before changing process begin. The
straight benefits is that the change model helps to make effective communication strategy. The
change model or framework offers leader or managers with ideas, tools, resources and prompts
that can be use for successful change. The main aim of change model is to guide to create
changes, journey transformation process, and make sure that change are accepted and also put
into practise (Nurullayevna, 2020).
Kotter change management theory is an activity planned to help leaders successfully
application of organizational change. This model mainly focuses on making urgency for making
change occurs. This walks leaders by the process of managing, imitating and also sustaining
change in the eight steps. This model of change management is very popular because it is helpful

that is it provides easy to follow the roadmap for the change. This model empowers company to
tackle change and also help in mobilizing their employees to take rapid adoption and also
implementation of new and innovative change initiative. This model helps organizations to send
out employee resistance.
Creating an urgency in the organization: The following can done by simply highlighting
repercussions and threats that may impact on company future. Opportunities also examined that
can be give effective impact. The authorities can beginner up true talking with the individuals to
make them think over the problem or issues and even the higher authorities can also involve such
as industry people, stake holders and targeted customers for the problem or issues that needed to
be changed. For example, we can see that company need change in structure and culture for
improving their performance.
Forming powerful and effective guiding coalitions: This particular term of the module can be
achieved by determining effectively working leaders and authorities by simply involving them in
the entire process. The powerful alignment can be made through work as team. The authorities
can also find out the weak points in the organization such as culture and structure of the
company (Jayatilleke and Lai, 2018).
Development of vision and strategy: Determination of the values in the company can be done
for bringing out the vision of the company and strategies can be made for changes to be done in
the business. The things can be make sure on the assessment that how company vision can be
interpreted in the organization.
Communicating the vision: The vision formed by the management must be related with all
aspects of the organization such as development, training, performance, etc. The concerns and
the issues of the customers or the colleagues in the organization should be handled to bring out
the proper outcome. The problem is of performance, the company structure and the culture must
taken to improve their performance.
Removing the obstacles: the next step is organizational processes should be straight and properly
structured with the vision of organization. Higher authorities must permanently put a appraisal
on the workforce to make sure that the proper working conditions and to remove any obstacle in
the procedure of business operations. By effective communication managers and the leaders can
motivate employees to adopt change and do work better.

Creating the short term wins: the wins in the changing process of the company can give the
motivation to the employees that can be felt by the management. The creation of the short term
targets with short duration can be more advantageous as its reduce risky and achievable in the
short time. These also includes few investments as compared to the long term goals. The culture
and the structure need to change so, the managers take short step to implement this change.
Consolidating gains and profits: achieving the new goals and targest continuously improves the
growth and success of the organization and also influence the individuals working in the
company. The achievements of the short tasks in the company also helps business to keep their
workforce motivated and also increase the productivity and performance with the help of the
peoples working in an organization by keeping them altered towards the changes made in the
company. By change company easily achieve success and growth.
Anchoring changes in corporate culture of an organization: discussion related to the changes
made in the organization should be made in order to get the successful outcomes in the company
and how the organic process is done by the employees working in the organization. Here, the
changes successful in the organization should be included. The company should be seen in every
aspect of an organization and in the structure as well as culture of the organization. Make sure
that the activity in the existing leaders in the company and the new leaders in the company may
cooperate with the changes, and they may support the employees to extend the working in the
context of the changes made in an organization (Siripipatthanakul, 2021).
Recommendations for change
Now company is following network structure, as company offers many services as well as
solutions such as risk advisory, corporate, financial advisory, audit and assurance, corporate and
tax and legal etc. as company facing lack of secrecy and also affect company performance as
well as reduce amount of profits. So they have change their structure to get more benefits as well
as this can increase performance and profits of the company. As company strength is they are
best for advisory and consulting, digital growth of company, and also extensive global presence
with the many maven client. Company also have many opportunities such as consulting start-
ups, exploring emerging markets, acquisition of small growing business and tax and audit
compliance. So, Deloitte can use team organizational structure as company is provides
professionals services. So its create positive impact on the company, as they offer many services,

so they have to follow team structure. A team based structure also called organic structure. This
structure make teams according to the specialization. For example if an employee is expert in
audit then company will give them that work only. This structure is good for the organization.
This structure help in better focus on work, increase transparency, productivity increases and
effective communication. This structure change help company to improve their performance.
When there is effective communication in an organization then there is positive impact on
organization performance (Stacho, and et.al., 2019). For example, Google company also use
Team structure so its give positive impact on the company, company having many employees in
the company. If the Deloitte change their structure then they will get benefits such as follows:
 Minimal managements
 Values experience instead than seniority
 Growth mindset
 Increase transparency, performance and productivity
 Changes traditional career models etc.
Deloitte use inclusive culture, this culture is one that celebrates and embraces their
differences such as differences in background, experience and ways of thinking. In this culture
employees of the company not engage in work place, there is no effective communication and no
motivation. So its create negative impact on company performance. Lack of communication in
the work place decrease performance of the organization. If employees fell motivated and free to
share their idea then it will improve their company performance. If employees are motivated then
they will give their 100 per cent so it directly improves company performance. So, its very
important for company to improve their working condition. Culture gives essential impact on
company performance (Hazem, and Zehou, 2019). If the organizational culture is good and
communicative then its give positive impact on company success and performance. While, if the
company culture is not good, that is there are conflicts between employees as well as there is no
effective communication between employee's then it gives negative impact on the company
success and growth. Now, Deloitte can change their culture because their performance is not
good, so they can implement market culture. Market culture emphasizes competitiveness
between organization and market competitions as well as between employees too. By this culture
there is high employee engagement that is here employees are more likely to take participate
actively. After adopting market culture Deloitte company can also have clear chain of command

such as hierarchical chain of command and also decision -making is very clear cut. Here,
employees will already know who they will report. A company bottom line operate market
culture and can result to get high profitability rates. This culture is more goal oriented.
CONCLUSION
From the above conclude it has been concluded that organization structure and culture
have great impact on company performance and company growth and success. The above report
includes company culture and structure of the Deloitte company. And the above report also
recommended some changes to the company related to the structure and culture as well. The
above report includes types of organizational culture and structure. Moreover, the above report
also elaborate change management and its model. Along with this the report also includes
Kotter's change management model with its eight steps.

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