Organisational Theory and Practice: A Case Study of GXO Logistics

This study analyses the organisational structure and culture of GXO Logistics, Inc. The report highlights the chosen organisational structure and its impact on the company's performance. It also discusses the organisational culture of the company and its determinants. The study provides recommendations for the upliftment of the functional capacity of the company, including the usage of Uplift Modelling and optimum consideration towards sustainability.

Organisational Theory
and Practice

Table of Contents
INTRODUCTION...........................................................................................................................................3
Organisational structure of GXO Logistics................................................................................................3
Organisational culture of the GXO Logistics.............................................................................................6
The present condition of the GXO Logistics in terms of its performance.................................................9
Recommendations for the upliftment of the functional capacity of the company................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
The concept of organizational theory is the specific study of the actual style that has been
adopted by an enterprise relative to the key relationship it has and the structure at pertains in the
market. The focus is over the magnitudes of the levels in respect to the validation, specialization,
calibration and the hierarchy of the definite authority, intricacy, size, goals and the chosen plan
of action. These parameters help in providing a path to measure and analysis the organization in
a certain manner (Cai and et. al., 2022). This study will thereby help in analysing the
comprehensive organizational structure of a renowned company known as, GXO Logistics, Inc.
It is a prime global provider of the supply chain solutions, established through a planned spin-off
of XPO’s logistics business. It’s a fast-growing customer centric company with its headquarters
in Greenwich, Connecticut, U.S. The report will highlight the structure that has been adopted by
the company in a detailed manner and the sought of benefits it has provided to the venture till
now. The present condition of the functionality of the company will also be discussed along with
certain influential recommendations in order to enhance the growth of the venture in a positive
manner.
MAIN BODY
Organisational structure of GXO Logistics.
The organisational structure of a company specifies the activities that takes place in a
company in context to the achievement of the desired goals and objectives. These includes the
specified rules, roles and the responsibilities levied upon the administrative bodies. There are
varied types of organisational structures that are present in the business environment that can be
chosen by an operational venture. They are:
Functional organisation structure: This particular structure twitches with positioning with the
uppermost echelons of accountability at the top and the goes down from there onwards.
Principally, though, personnel are prearranged conferring to their explicit skills and their
conforming purpose in the corporation. Respectively, distinct division is managed
individualistically (Cross and Carbery, 2022).
Horizontal or flat organisation structure: A horizontal or flat organizational structure fits
companies with few levels between upper management and staff-level employees. Many start-up
businesses use a horizontal org structure before they grow large enough to build out different

departments, but some organizations maintain this structure since it encourages less supervision
and more involvement from all employees.
Divisional organisation structure: In divisional organizational structures, a company’s
divisions have control over their own resources, essentially operating like their own company
within the larger organization. Each division can have its own marketing team, sales team, IT
team, etc. This structure works well for large companies as it empowers the various divisions to
make decisions without everyone having to report to just a few executives.
Hierarchical organisation structure: The pyramid-shaped organizational chart we referred to
earlier is known as a hierarchical chart. It’s the most common type of organizational structure—
the chain of command goes from the top (e.g., the CEO or manager) down (e.g., entry-level and
low-level employees), and each employee has a supervisor (Hendiani, Liao and Jabbour, 2022).
Matrix organisation structure: A matrix organizational chart looks like a grid, and it shows
cross-functional teams that form for special projects. For example, an engineer may regularly
belong to the engineering department but work on a temporary project. The matrix organisational
chart accounts for both of these roles and reporting relationships.
Network organisation structure: These days, few industries have all their facilities under one
roof, and altering the droves of salespersons, subcontractors, outworkers, off-site locations, and
satellite offices can get perplexing. A network organizational structure makes sagacity of the
spread of resources. It can also designate an interior structure that emphases more on open
communication and relationships rather than hierarchy (Kroese, 2022).
The GXO logistics has certified a comprehensive flow of the directive tasks that is being
performed in the company. The chosen organisational structure is the amalgamation of the
Hierarchy and the Divisional form of the structure and the segmentation is thereby done
according to the defined format. The management of the stock, supervising the sales,
procurement of the raw materials, the purchasing management, documenting of the relevant
Performa and other influential and imperative areas have to be critically examined and the
structure of each has to be ascertained in order to ensure the functionality within the business
organisation (Lohwasser and et. al., 2022). The GXO Logistics, Inc., is undoubtedly the prime
contract logistics company cooperating in the world. The composition of the varied department

thereby has been formulated in viable and a precise format. The distribution channels,
warehousing structure and the optimisation of the customised and tech enabled services to the
clients is the primary focus of the business. GXO functions as an exceedingly unified network of
people, technology and physical assets in 27 countries, with 869 locations, 208 million sq. ft of
warehouse space, and roughly about 94,000 team members, all devoted to competently handling
the customer’s possessions. Corporations are progressively looking out for the GXO’s tailored
technology-enabled resolutions, predominantly along e-commerce, omni-channel retail and
direct-to-consumer channels.
Figure 1 Organisational structure of a company.
The impact of the structure over the company can be furthermore discussed in the study. The
considerations regarding the operational organisational structure of a company have an
influential impression over the performances of the employees which eventually lead to the
enhancement of the productivity level of the company (Lukito-Budi, and et. al., 2022). The
delegation of the work in accordance to the duties and the responsibilities of the personnel helps
in contemplating the overall scenario of the trade. This can be explained in an exclusive manner
in respect to the GXO Logistics, Inc:
 The efficiency and effectiveness of the firm is ascertained through an optimum utilisation
of the structure. The segmentation of the employees can help in bringing out the best

from them in order to complete the assigned task in a standardised manner. The functions
performed by them thus articulates in a significant manner.
 The employees have a thorough knowledge of what to do and how to complete a given
task in a seamless and a practical way. The decentralisation of the authorities gives a
sense of reasonability to the work force to complete the given assignment according to
the determined criteria (Murray and Enang, 2022).
 The layout of the pay structure, designed specifically for the compensatory aspect also
helps in effectively remunerating the personnel. The grades and the ranges in respect to
the salary that is being rendered to the workforce, can impeccably be done through the
operative chosen path.
 The options that are available to the business environment thus helps an organisation to
select the best course of action for the implementation of the tasks in the best possible
manner in order to bring out the maximum number of profits from the subdivision of the
company. The most suitable form of structure is thereby adopted by the company which
helps in the betterment of the functionality of the enterprise.
Organisational culture of the GXO Logistics.
The magnitude of the culture being carry forward in a company highlights the core values
and practices in respect to the expectations of the employees working in the particular firm. The
traits and the characteristics a venture imbibes defines the scope of integrity it possesses in the
market (Omotayo, Kulatunga and Awuzie,2022). The performance of the GXO Logistics,
thereby is demarcated by the performances of the workforces which explains the ratio of success
for an organisation. In respect to the GXO Logistics, the set of value for the commencement of
the business is based upon a few selected and the most imperative parameters of an effective and
a healthy flow in an organisation.
 Insurance of the safety of the employees.
 Inclusiveness of the company’s criteria.
 The impact of the core values over the functionality

 The estimation of the results based upon an indicative approach, keeping in mind the
appropriate delegation and the scope of the responsivity one embarks.
The considerations by the company have been made in accordance to the vision of the success
and betterment of the company as well as the employees through a well accomplished journey
that is being taking place during the trade. The determination by the GXO Logistics, to build a
global organisation, is indeed an authoritative and an influential step towards the expansion of
the company in the different parts of the world. The regions and the divisions selected by the
enterprise for establishing a secure place in the market environment is the ultimate plan of the
leading supply chain organisation (Sebastião and de Carvalho Spínola, 2022). The insights drawn
upon by the influence of the culture over the management of the company will definitely help in
the furtherance of the functional areas of the company.
Figure 2 Organisational culture determinants.

The most important determinants for a company to encompasses can be elucidated further that
must be considered by the GXO Logistics in an inclusive manner.:
Innovative ethos: The extraction of the most out of the lot is the core responsibility of the
management. The analogy of the creative thinking throughout the project should be the primary
objective of the teamwork. The support of the subordinates must be ascertained in order to have
a determined and a comprehensive growth of the overall team (Shou, Kang and Park, 2022).
Integrity: The decisions taken and implemented by the GXO Logistics, must be in accordance to
the integral nature and values imbibed by the personnel. The allowance of the transparency
amongst the workforce has to be there to ensure an effective execution of the performances.
Psychological safety: The support provided by the GXO Logistics to their employees must
compel them to have a firm belief over the administration, that the company will take care of
their basic needs and desires though an applied yet harmonious approach. The considerations
regarding the comfortability of the workforce have to be present so that they do not feel a sense
of negligence towards their well-being (Sinnema and et. al., 2022).
Appreciation and alignment: The acknowledgement must be given to the deserving candidates
of an organisation in order to motivate and boost their morale. The respective contribution of the
subordinates must be considered and their appreciation must be aligned in a successful manner.
The objectives and the aspirations of the employees must be taken into account and the relevant
support must then be provided to them for their individualistic growth in the business world.
The present condition of the GXO Logistics in terms of its performance.
The milestone set by the company for the particular period of time has been successfully
achieved. GXO Logistics has proved to be certain with the expectations of the customers. The
attainment of acquiring the Clipper logistics has proven to be effective and a viable plan of
action. The achievement of the complementing capacities of the acquirement will indeed be an
asset for the company in the coming future (Staniškienė and et. al., 2022). The highlights for the
achievement of the company can further be elucidated is a significant manner.
 The revenue generation for the first quarter in the year 2022, has been phenomenal. The
contractual increment was near about 13% of the annual sales of the year 2021. The

decrease in the release of the greenhouse gas by 24% has also proven to be a major
highlight of the year.
 The complexity of the regulations and the peculiar functions of the supply chain
management of the company has been increasing and the relative measures are being
taken to undercover the relative effects of the compositional scheme (Sweiss and
Abdalatif, 2022).
 The growth across the verticals and the horizontal segments of the GXO Logistics, has
shown solid results as compared to the previous year figures. The continuity of the high
in the retention rate in the proceeds has provided with a scope to raise the 2022 organic
growth of the revenue generation to an approximate percent of about 11-15, resulting in
the overall growth in the respective year between the range of 29-39%.
 The facilitation of the e-commerce has played a vital and a significant role in the logistics
provider’s field. The GXO Logistics, has been committed towards the delivery of the
diversity in the growth for the automation and outsourcing departments. The challenges
related to the cultural differences has also been given due importance and certified
measures have been adopted by the company, in order to overcome the differences
(Venkitachalam and Bosua, 2022).
Recommendations for the upliftment of the functional capacity of the company.
The set of recommendations for the reduction in the scope of errors can thereby help the
business organisation to flourish and accommodate to the present needs of the market. The
modern world requirement of the reputed GXO Logistics, for the assurance of the smooth
functioning of the supply chain can make use of certain additional features, which has to be
critically analysed for their effective utilisation in the business.
 The usage of the scheme of Uplift Modelling can be taken into account. This is an
important tool in the today’s market world which takes helps of the advancement in the
technological facet of the machine learning. It is indeed a powerful tool that depicts the
utilisation of the data analytics which can prove to be an aid for the predication of the
future estimates of the accounts and other descriptive aspects (Vlados and
Chatzinikolaou, 2022).

 The conduction of the business activities must incorporate the optimum consideration
towards the CSR (Corporate Social Responsibility) in an integral and an ethical manner.
The provision of the services to the clients must not be indulged in any illicitness that can
hamper the interests of the public through any means.
 The prevalent technological trends must be followed by the GXO Logistics to ensure the
comfortability of the clients. The evaluation of the oscillations and variations must be
handled in a viable and practical way. The deviations that can occur during a particular
must be rendered with an immediate solution to prevent it firm happening in the coming
future.
 The examination of the business environment must be conducted through the utilisation
of the business models techniques such as the SWOT and the PESTLE analysis. This
would prove to be an additional help to investigate the effects of the external factors
present in the business world which influences the performance of the varied segments
present in the GXO Logistics (Wilson, Crawford and Adams, 2022).
CONCLUSION
An inference can thus be made that a comprehensive and a precise plan for the
organisational structure along with a real-world and an effective culture must be maintained in an
enterprise to ensure the functionality of the business. The structure must be in accordance to the
standards that has been determined in the very beginning of the strategical plan and any sought
of deviations during the evaluation of the outcome, must be eliminated through an operative and
a viable plan of action. The performances must be measured with time and the thorough
utilisation of the segmentation has to be there in order to ensure the smooth flow of the activities
during the particular assignment. The recommendations are also rendered at the very end of the
report to help in providing a set of commandments in order to prevent the scope of jeopardy in
the framework of the methodology. Thus, a conclusion can thereby be drawn upon, that for the
apportionment of the positive success ratio of a firm, the designs and the formulation of the
organisational structure must be in accord to the utility and the maintenance of an effectual
culture in the business administration and this should be orderly present for the upliftment of the
business as a whole.

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