Management and Organisation Assignment

Management and
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Introducing organisation.............................................................................................................1
TASK 2............................................................................................................................................2
Organisational structure of and analysing the way structure facilitates its functionality............2
TASK 3............................................................................................................................................3
Modern Management Approach.................................................................................................3
TASK 4............................................................................................................................................3
Organisational Culture................................................................................................................3
TASK 5............................................................................................................................................4
Strategic management objective of King's..................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
An organisation is group of people who work together in an organised manner for shared
purpose. The purpose of organisation is to overcome individual's limitations, enable people to
specialise in some activities and accumulating and sharing knowledge. King Digital
Entertainment Limited (King) known for its famous and successful game 'Candy Crush Saga'
become one of the leading revenue generating video game company in United Kingdom (Yaylaci
and Yaylaci, 2016). In this context, the following report will show detail understanding about
King's organisational structure and its functions. The modern management approach that could
be used in the company to improve its functionality will be assessed and eventually strategic
options and direction to the company will be provided in the report.
TASK 1
Introducing organisation
King Digital Entertainment Limited conducting business operations under name “King” is a
social and video games development company. It was found in August 2003 and became popular
for its saga series which includes Candy Crush, Farm Herons, Papa Pear, etc. The games are
developed for web, mobile, smartphones and works on all platforms including Android, iOS,
Windows Phone, etc (Albliwi and Ghadge, 2017). King operates in video gaming industry and
develop cross platform and interactive games that like by players in all over world. The video
gaming industry in United Kingdom contributes enormous amount of revenue (3.35 billion
pound) to the national economy of the country.
Size: King Digital Entertainment limited became medium scale organisation after success of
Candy Crush Saga. The total revenue earned by the organisation in 2016 was US $1.59 billion.
With effective leadership and managerial skills of its founders, the organisation able to generate
profits and revenue by developing new and updating existing games for their users efficiently.
Scope: Video gaming industry thriving not only in United Kingdom but worldwide (Moe, 2015).
There is wide scope for the King to enhance its productivity and profitability as demand of new
and innovative games are increasing day by day.
Market Value: The total market value of King Digital Entertainment as of May 2014 was US
$6.2 billion.
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TASK 2
Organisational structure of and analysing the way structure facilitates its functionality
Organisational structure is the structure which defines how activities such as task allocation,
coordination and supervision are directed so that organisational goals and objectives can be
accomplished in effective and efficient manner (Deegan, 2014). There are different types of
organisational structure which has been followed by the organisations according to their
functions. As a modern and digital organisation, the founders of King prefers to have Flat
Organisational Structure where employees can independently communicate with the top
management.
A flat organisation structure is the structure of company with very limited or no level of
management between managers and staff. Supervision of employees is less and their
involvement is more in the organisation (Goldsmith and Dezuanni, 2017). Riccardo Zacconi
chief executive of Britain's most valuable gaming company King prefers that employees must
participate and generate new and innovative ideas which helps the organisation in sustaining in
the competitive environment. Software and games development is the primary function of the
organisation and this system encourage employees to freely discuss new and innovative ideas
with each other and management. The results can be reflect on its performance as the company
just transformed into high revenue generating company.
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Illus
tration 1: Flat Organization structure
(Source: A New Age of Organizational Structures - Flat and Holacracy Structures, 2018)

TASK 3
Modern Management Approach
Modern management though has been turning somewhat away from the extreme human relations
ideas particularly regarding the direct relation between morale and productivity (Zhao, 2017).
Researchers and philosophers proposed different modern management approaches such as
Quantitative or Mathematical Approach, System Approach, Contingent or situational approach
etc. which can be utilised by the present business organisations to enhance the effectiveness in
work culture. In context with King Digital Entertainment Limited, Contingency approach would
be appropriate. Lorsch and Lawrence were the developers of contingency theory where they
proposed that under different situation or circumstances, management of business organisation
can change their style accordingly (Grifoni and Praticò, 2014). The contingency theory focuses
at integrating theory with practice in systems framework.
As present business environment is dynamic, traditional way of doing business would not
help the management to sustain in the competitive environment. Thus, contingency theory can be
applied in Kings as to gain competitive advantages and tackle the changing situation
management must transform their style, structure and work culture accordingly (Lacasa and
Cortés, 2017). Contingency approach is advance version of system approach. It acknowledges
organisational system as the product of interaction of the sub system and environment. Thus,
King's management could implement the concept from the approach which can enhances the
overall performance of employees as well as leaders. As leaders and managers are not bound to
follow one particular method or way of leading team and organisation. They can change their
style on the basis of situation so the best and efficient output can be achieved. In order to sustain
in the competitive environment it is essential and important for management of Kings to follow
modern approach of managing business operations and work culture. This will eventually
enhances the performance of employees and organisation can have competitive edge.
TASK 4
Organisational Culture
The way individuals live and follow or the unwritten rules are known as culture.
Organisational culture refers to the practice, belief, power, behaviour and interpersonal
relationship. Positive organisational culture leads the organisation towards growth and
development whereas negative organisational culture drags the overall performance of
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organisation down. Charles Handy developed model on organisational culture which popularly
known as Handy's Model of Organisational Culture. He defined organisational culture into four
different kinds which are Power, Role, Task and Person. From the analysis of organisational
culture of Kings' it can be said that the company follows Role culture. According to Handy's
cultural model, role culture are based on rules. Every employee in the organisation knows about
his or her position, roles and responsibilities. In role culture, power is divided on the basis of role
or position of employee. For example, manager in organisation have higher power as compared
to ground level employees (Heaven, 2014). In King's role culture has been followed where
managers have higher power and authority so that task can be done in systematic and within
deadline. Free flow of communication exists but employees first needs to discuss the issue or
queries with manager first. Thus, by following role culture within the business premises, the
management of business organisation will be able to sustain in the competitive environment and
proliferating its market share effectively and efficiently (Koles and Nagy, 2014). In the role
culture, employees are provided with their roles and responsibilities and they have to fulfil it
accordingly so that the organisational goals and objectives can be accomplished. In short,
organisations with role cultures tend to be very bureaucratic. King Digital Entertainment limited
organisational culture is agile as employees have right to make decisions regarding their task and
managers put belief on the employees which helps in enhancing their motivation and satisfaction.
In this manner, the organisation able to attain their business goals and objectives.
TASK 5
Strategic management objective of King's
To survive in dynamic business world, it is essential for the management to generate precise
strategic directions. The strategic objective of King's are :
 To develop innovative games in order to surpass the competition To enhance existing games which enables attraction and retention of users.
Porter Generic Strategies
In order to accomplish the strategic objectives, management first needs to construct strategic
direction. By using Porter Generic Strategies, the management of King's could get to know about
the strategic direction. Cost Leadership: Cost leadership is the strategy where firm offers products at low cost in
order to gain competitive advantages. King's provide online games for free but users in
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order to get extra benefits have to purchase inside applications. King's can reduce the cost
of in-app purchase in order to increase its customer base. Product Differentiation: It is the strategy where firms provides different products at
premium price. Candy Crush Saga has premium version where users have different
levels. King's can modify this strategy in order gain customer attraction (Kaivo-Oja and
Westerlund, 2017). Cost and Product Focus: This is fusion of both cost and product differentiation strategy.
King's can provide different products at low cost to gain more competitive advantages.
Ansoff Matrix
This tool can help the management to enhance its market share and productivity. It is described
below: Market Penetration: In this strategy firm enhances its productivity in existing market by
increasing marketing activities (Jhon, 2018). In UK, Kings' can enhance its profitability
by developing more and more games. Market Development: In this strategy, firm enter into new market with existing product.
Online gaming platforms can be accessible worldwide. Kings' can enter new market by
focusing on marketing and promoting activities. Product Development: This is the strategy where firms provide new product in existing
marketing. King's launch new games in United Kingdom in order to retain in market.
 Diversification: It is the strategy where firm launches new products in newer market.
This is highly risky strategy where firm has to focus on both marketing and quality of
products. Kings' could apply this strategy in order to enhance this market share.
CONCLUSION
From the above report it can be understood that managing an organisation is a challenging task.
Video gaming industry is currently flourishing in United Kingdom and Kings' become popular
company because of its famous gaming applications. The analysis of organisation has been made
in this report, the organisational structure company uses has been discussed and eventually the
strategic direction has been made in this report.
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REFERENCES
Books and Journals
Albliwi, S.A., and Ghadge, A., 2017. Implementation of Lean Six Sigma in Saudi Arabian
organisations: findings from a survey. International Journal of Quality & Reliability
Management, 34(4), pp.508-529.
Deegan, M., 2014. ‘This ever more amorphous thing called Digital Humanities’: Whither the
Humanities Project?. Arts and Humanities in Higher Education, 13(1-2), pp.24-41.
Goldsmith, B., Cunningham, S. and Dezuanni, M., 2017. Screen production for education: digital
disruption in an ‘ancillary’market. Media International Australia, 162(1), pp.65-77.
Grifoni, P., Ferri, F., D'Andrea, A., Guzzo, T. and Praticò, C., 2014. SoN-KInG: a digital eco-
system for innovation in professional and business domains. Journal of Systems and
Information Technology, 16(1), pp.77-92.
Heaven, D., 2014. Engineered compulsion: why Candy Crush is the future of more than
games. New Scientist, 222(2971), pp.38-41.
Jhon, A., 2018, January. The paradigm of iconic video games characters in shifting cultural
allusion. In Proceedings of the 6th International Conference on Information and
Education Technology (pp. 6-11). ACM.
Kaivo-Oja, J., Roth, S. and Westerlund, L., 2017. Futures of robotics. Human work in digital
transformation. International Journal of Technology Management, 73(4), pp.176-205.
Koles, B. and Nagy, P., 2014. Virtual worlds as digital workplaces: Conceptualizing the
affordances of virtual worlds to expand the social and professional spheres in
organizations. Organizational Psychology Review, 4(2), pp.175-195.
Lacasa, P., Méndez, L. and Cortés, S., 2017. Public and Private Adolescent Lives: The
Educational Value of Entertainment. In Entertainment Values (pp. 109-129). Palgrave
Macmillan, London.
Moe, R., 2015. OER as online edutainment resources: a critical look at open content, branded
content, and how both affect the OER movement. Learning, Media and
Technology, 40(3), pp.350-364.
Yaylaci, F.G. and Yaylaci, A.F., 2016. Understandings and Tendencies of Edutainment in
Turkey: An Evaluation Based on Neil Postman's Criticism on Education, Entertainment
and Technology. Contemporary Educational Technology, 7(3), pp.241-263.
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Zhao, E.J., 2017. The bumpy road towards network convergence in China: The case of over-the-
top streaming services. Global Media and China, 2(1), pp.28-42.
Online
A New Age of Organizational Structures - Flat and Holacracy Structures. 2018. [Online].
Available through:<https://pingboard.com/org-charts/evolution-org-charts>
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