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HC1031 - Managing People and Organizations

   

Added on  2021-06-05

10 Pages3683 Words107 Views
HC1031 - Managing People andOrganizationsExecutive summary:The aim of this assessment is to discuss various management principles, concepts andtheories in relation to Coles as the selected organisation. The assessment discusses that thecompany follow different Henry Fayol’s principles such as authority and responsibility, unityof direction, remuneration for personnel, equality etc. by justifying it with help of financialand sustainability reports of company. Coles have clear hierarchical structure for clear chainof command to ensure smooth flow of operations. Further, it also describes the fit of Colesunder Weber's ideal bureaucracy wherein the company follows all necessary components,however failed to comply with career orientation which require that managers areprofessionals, not owners. This is because of a mixture of managerial and ownership due toshareholding by executives in the company. In addition to it, the report also described that thecompany showed evolution in its manager styles and theirs where it followed contingencytheory of management and neo-classical theory etc. based on its operations.Introduction:The given assessment is prepared to provide detailed discussion on implication ofmanagement principles and concepts on real time organisation, for this purpose, Coles isselected as an organisation for discussion which is a supercar company in Australia. Thecompany was founded in 1914 at Melbourne as part of Coles Group and now becomes thelargest supermarket after Woolworths in Australia. Coles has around 800supermkate stores inAustralia along with rebranded BI-LO supermarkets, Coles Express etc. Furthermore, thecompany accounts for 27% of the total market share of supermarkets in the country (TheHistory of Coles, 2021). The company manages its operations under different types of storethrough a workforce of 100,000 employees where around 4,000 employees worked in itsheadquarter region Melbourne. Moreover, the company is also known for its Coles Onlineservices where it started click and collect service for its customers. This company is selectedbecause it went through different management and leadership changes where Colessupermarkets was a brand of Coles Myer and then acquired by Wesfarmers company. After

this, the company finally become part of Coles Group in 2018 when Wesfarmers spun-offbusiness. Thus, the company has long history where it undergone different managementchanges to continue its business growth. This report will provide detailed discussion aboutmanagement of Coles under different sections. The first section will discuss the implicationof Fayol’s management principles on this organisation. The second section will highlight theimplication of Weber, the ideal bureaucracy model on Coles and then, the third sectioninvolves discussion on evolution of management theory in case of Coles along with changesin its management styles over time.Determination and explanation to what degree Fayol’s 14 principles apply to Coles:Henry Fayol is known as the “father of management” and provides 14 different principles ofmanagement which have implications on almost every business organisation. Theseprinciples involve division of work, discipline, unity of command, remuneration, authorityand responsibility etc. In case of Coles, following are the principles which deemed to fit andimplies on different working areas of the supermarket:1. Authority and responsibility: Coles is based on principles of responsibility and customerservice for which the team members are given necessary authority for their work. It has beenanalysed that there is hierarchical and divisional flow ofwork under which the boardcommittees and management director provide proper authorities to leadership teams andmanagers at stores to effectively manage employees (Golden Pryor and Taneja, 2010, p 500(2)). Further, the Coles team members are also given necessary authority and freedom ofdecision making for better customer services. There are different committees under theorganisation structure such as nomination committee, remuneration committee, riskmanagement. People and culture committees etc. which have the authority and responsibilityto plan, direct and control the action related to areas come under their leadership. Toillustrate: The key management personnel committee of the company is given authority andresponsibility to plan and control group activities. Further, the people and culturecommitteeis also delegated authority to administer the Group in such a way that employee satisfactioncan be achieved.2. Unity of direction: This is the basic and important principle on which management ofColes is based. The company has a common plan and vision for all group activities and all

teams are asked to work towards this common objective(Ramakrishna, 2019, p170(2). Thiscommon plan to sustainably feed all Australian to help them lead healthier and happier lives”.With this vision, each team member of Coles is directed to be committed to make life easierfor their customers and add value to their purchase so that company will be able to maintainits position as a leading retailer in Australia (Coles Group, 2020).3. Remuneration for personnel: The company has a remuneration management committeewhich decides remuneration for different key personnel and teams so that there will be a fairdeal between employees and organisation (Godwin et al., 2021, p81(3)). The remunerationcommittee decides remuneration or compensation to management, board of directors andother positions by taking suggestions from internal and external advisors. Further. Thecompany focused on fair remuneration based on market competition, performance based, andfit to purpose which involve fixed compensation, short-term and long-term incentive etc. tocreate satisfaction and motivation for better performance among Coles team (Coles Group,2020).4. Scalar chain: Coles organisation followed hierarchy under structure where board is at toplevel followed by managing directors, leadership and Coles team. The following pictureshows hierarchy maintenance under the company and this becomes the basis of authority andcommand from top to lower level in the company. This clear line of authority helps to bringclarity in roles and responsibility so that smooth flow of activity can be ensured (Edwards,2018, p45 (4)). Under this structure, the Coles employees can contact line managers orsupervisors at stores for emergency situations which then contact managing directors atheadquarters for discussion and which in turn meet top executives related to any workplaceissue.5. Equity: This principle resides in the values of the company wherein all the employees arerelated to equality, dignity and respect so that same can be transferred by them whileproviding customer services (Godwin et al., 2021, p82(6). The sustainability report of thecompany highlighted that it complies with human rights rules and regulation under which allemployees are regarded as Coles team and deal respectfully to bring social sustainability.Furthermore, the equity is also reflected by the initiatives and efforts of Coles to provide jobopportunities for Aboriginal people who are generally ignored and treated equally inAustralia.

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