Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Structure of Kellogg....................................................................................................................1 Contribution of structure towards organisational performance..................................................3 Culture of Kellogg......................................................................................................................3 Contribution of culture towards organisational performance.....................................................5 Theory for organisational culture and design..............................................................................5 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION Modern workplaces are believed to be an environment in which individuals can work as per their desire as well as without any restrictions by making full use of their potential. Modern workplaces not only have the latest technology which gives competitive advantage over the rivalry firms but they even lead to cultural transformation within the company. Kellogg, one of the most popular and famous companies in food items has been established around 113 years ago that is in the year 1906. The company run its operations in the entire globe under the philosophy of 'improved diet and improved health'. The assignment will include culture and structure of the organisation along with all those factors which have contributed towards efficient performance of the organisation. Furthermore, relevant theories and models of organisational design and culture would be discussed in detail. MAIN BODY Structure of Kellogg Organisational structure shows show the activities of the company are directed towards the accomplishment of the objectives of the company. When it comes to structure, it is found that the structure of Kellogg is very efficient as it has helped the company in gaining the competitive advantage over the rivalry firms(Su, Chen and Wang, 2019). This has been possible because of the flexibility in the organisation structure which allows free flow of communication at the workplace. There are different kinds of organisational structure such as functional structure, divisional structure, flatarchy structure and the last one is matrix structure but the structure of the Kellogg company is based on the functions of the company. Each function of a company has a separate department and all these departments work together towards the accomplishment of the objectives of the company. 1
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Structure of Kellogg is such that, President– the top most position of the company is held by the president of the company who is responsible for overall functioning of the company and is responsible to direct the efforts of all the departments towards a common direction that is attainment of the business objectives effectively and efficiently(Burrell and Morgan, 2017). Functionaldepartments-afterthatentireorganisationisdividedintodifferent departments based on the functions of the company. Company has divided its entire organisation into four departments and those are: Creative: this department is responsible for bringing creativity in the operations of the business so as to gain competitive advantage over the rivalry firms. The company can achieve creativity through efficient designing and this could be done by investing huge funds to carry out research along with hiring of creative employees who can generate creative ideas regarding the designing of the product. Thus, if the company is able to achieve creativity than it would be able to achieve the objectives of the company effectively and efficiently. Sales and marketing: this department is responsible for generating the needs and wants of the customers and then fulfilling it(Moss and et.al., 2017). Marketing is carried out with the objective of creating the needs so that the existing customers repeat their purchases while the new customers are attracted to buy the companies products. While on the other hand, sales department is responsible for selling the maximum goods to the customers in order to increase the profitability of the company. Accounts: it is concerned as one of the most important department of the company as it contributes in smooth running of the business in long run. The job of the accounts department id to procure funds and invest the funds in a way that company can have efficient working capital at 2 Illustration1: structure of Kellogg
all time to run the business smoothly. Moreover, the department keeps a keen watch on amount spend on creating a product as well as on producing the good. Human resources: this department of the company consists of all the people who are responsible for managing the employees at the workplace. Department looks in to the needs and wants of the employees as well as it ensures that there is peace and harmony in the company by resolving the conflicts. Apart from that, this department is responsible for motivating the employees so that their productivity is increased along with recruiting, training and performance appraisal of the human resource of the company. Functional managers– each department is under the control of two functional managers of that department who manages the operations of that department(Stverkova and Pohludka, 2018).Themanagerensuresthathis/herdepartmentisworkingefficientlytowardsthe attainment of business objectives. Contribution of structure towards organisational performance If the structure of the company is efficient than it would contribute maximum towards the efficient performance of the organisation. Kellogg has formulated its structure on the basis of the functions of the company. Hence, this in turn has helped the company in bringing specialisation because it is believed that functional structure elicit only the best from each department. Apart from that, each department would consist of employees with similar interest and this increases the probability of better coordination between them which in turn would lead to more productive results. Furthermore, each employee would have better opportunities for future growth and this help in boosting up their morale to increase their productivity. Thus, all these factors would help inenhancingtheperformanceoftheorganisationtowardstheattainmentofbusiness objectives(Jia and et.al., 2017). Culture of Kellogg Kellogg is known for its efficient culture. The cultural experiences of the company are enhanced by the innovative partners. The company brings in constant innovation and up- gradation in technology through huge investment in research and development department. The culture of innovation could be built and promoted through various measures. This has not only helped the company in bringing ease in working but has also helped in gaining the competitive advantage over the rivalry firms. Hence, the innovative culture of the company has helped the company in maintaining and growing its market share. 3
The vision of the company is to create a truly aspirational learning culture for Kellogg employees. This culture has helped the employees in increasing their productivity through efficient and innovative learning. This aspirational learning culture has even contributed in creation of job satisfaction in the mind of employees. With the increase in job satisfaction, retention rate of employees has also been increased and this in turn has lead to decrease in the employee turnover rate(Elsmore, 2017). Hence, the culture of the company has fostered the retention of the employees for a longer duration of time. The culture of the company has highlighted the company in the entire world. The companyisknownbestforitsculturebecauseofitscomplianceprogramsandsocial responsibility. Company carries out various activities to fulfil its social responsibility in order to improve the brand image. This would in turn help the company in increasing its sales and profitability. Moreover, company even undertakes compliance programs in order to avoid unnecessary complexities in working due to increased government restrictions. Thus, the basic reason behind smooth running of the business is that, company efficient undertakes various compliance programs as well as it fulfils its social responsibility. The company is even famous for its collaborative culture. Collaborative culture means that culture which will help the employees to deal with the changing environment. In this globalised world, dynamics of the environment keeps on changing and this has created a necessity for the company to ensure that employees are able to deal with the complexities of the environment. Hence, by development of collaborative culture; company is able to ensure that employees are able to deal with the uncertainties in the environment. Kelloggs even launches unique kinds of events which has helped the audience in creation of sensorial and beautiful cultural experiences(Anitha, 2016). These events have helped the company in attracting new customers by enhancing their cultural experiences. Furthermore, events like these helps in creating strong bonds between the company, employees and customers which in turn leads to increase in the customer loyalty towards the company. Hence, the company can grab the eyes of the public through organising efficient events for enhancement of customer experiences. The company fosters safe working environment for its employees. This in turn has helped in developing healthy and positive environment at the workplace. Efficient working environment plays a vital role in developing a feeling of sense of belongingness in the mind of employees. 4
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This feeling has helped the company in retaining the employees which in turn would lead to decrease in the employee turnover rate. Apart from this, most importantly, company is known for its motivational culture. Company undertakes various means to keep its employees motivated to perform better towards the accomplishment of the objectives of the company. This can be done by company by increasing the employee engagement as well as by providing them benefits, rewards, incentives and compensation(Al Saifi, 2015). Contribution of culture towards organisational performance Culture plays a vital role in enhancing the organisational performance such as it helps in motivating the employees so that they perform better towards the accomplishment of the objectives of the company. Motivation helps in boosting the morale of the employees which in turn leads to increased productivity of employees to perform the operations of the business and thus the overall performance of the organisation is improved. Apart from this, culture of the organisation helps in increasing the employee engagement in the decision-making process and this in turn leads to better position of the company is case of emergency. Moreover, culture helps in maintaining peace and harmony at the workplace. Peace and harmony is maintained because of reduced conflict at the workplace and this possible because efficient culture fosters better relationship between the employees. Hence, this will ultimately lead to smooth running of the business as well as improved performance of the organisation(Seidl, 2016). Theory for organisational culture and design The theory for organisational culture and design that has been adopted by Kellogg is Maslow's need hierarchy theory. This theory is used as a motivational theory for motivating its employees so that they retain in the company for a longer duration of time. This theory includes 5 kinds of needs and those are: Physiological needs– these are most important needs as they are the basic needs that needs to be fulfilled in order to survive. If these needs are not fulfilled that the human body cannot function optimally. These needs include food, clothing, air and water. Safety needs– these are those needs which are concerned with security and protection. These needs include job security, protection from animals, financial security, health security, family security, etc. 5
Social needs– these are those needs which play a major role in creation of job satisfaction in the mind of employees as they contribute up-to a wide extent in developing sense of belongingness(Bouzenita and Boulanouar, 2016). These needs include love, belongingness, care, affection and friendship. Esteem needs– these include two kinds of needs. One is inner esteem needs, which focus on fulfilling the internal esteem of an individual such as self-respect, competency, confidence, freedom and achievement. While the other one is concerned with external esteem needs which focus on fulfilling the external esteem needs of an individual such as recognition, power, attention, status and admiration. Self- actualisation needs– these need focus on achieving the full potential of an individual. These needs include growth and self-contentment(Fallatah and Syed, 2018). CONCLUSION From the above study, it has been summarised that the company has flexible structure which fosters free flow of communication within the organisation. The structure of the company is based on the functions. For every kind of function, there is a particular department which helps in bringing specialisation as well as better co-ordination towards achievement of a common objective. The structure of the company begins with president and then different functional department and then the financial managers of each department. Even the culture of the company wasdiscussedindetailwhichhighlightedthatcultureofthecompanyisinnovative, motivational, positive as well as collaborative. At last Maslows need hierarchy theory was discussed. 6
REFERENCES BOOKS AND JOURNALS AlSaifi,S.A.,2015.Positioningorganisationalcultureinknowledgemanagement research.Journal of Knowledge Management.19(2). pp.164-189. Anitha, J., 2016. Role of Organisational Culture and Employee Commitment in Employee Retention.ASBM Journal of Management.9(1). Bouzenita,A.I.andBoulanouar,A.W.,2016.Maslow’shierarchyofneeds:AnIslamic critique.Intellectual Discourse.24(1). Burrell,G.andMorgan,G.,2017.Sociologicalparadigmsandorganisationalanalysis: Elements of the sociology of corporate life. Routledge. Elsmore, P., 2017.Organisational Culture: Organisational Change?: Organisational Change?. Routledge. Fallatah, R.H.M. and Syed, J., 2018. A Critical Review of Maslow’s Hierarchy of Needs. InEmployee Motivation in Saudi Arabia(pp. 19-59). Palgrave Macmillan, Cham. Jia,F.andet.al.,2017.Globalsourcingstrategyandstructure:towardsaconceptual framework.International Journal of Operations & Production Management.37(7). pp.840-864. Moss, D. and et.al., 2017. Structure of the public relations/communication department: Key findings from a global study.Public Relations Review.43(1). pp.80-90. Seidl, D., 2016.Organisational identity and self-transformation: An autopoietic perspective. Routledge. Stverkova, H. and Pohludka, M., 2018. Business organisational structures of global companies: Use of the territorial model to ensure long-term growth.Social Sciences.7(6). p.98. Su, Z., Chen, J. and Wang, D., 2019. Organisational structure and managerial innovation: the mediatingeffectofcross-functionalintegration.TechnologyAnalysis&Strategic Management.31(3). pp.253-265. 7