The Importance of Organisational Structure and Practices

The provided document is an essay that discusses the importance of organisational structure and practices in business operations. It highlights how a well-structured organisation can lead to increased productivity, better communication, and employee satisfaction. The essay also touches on the benefits of adopting globalised working culture and its impact on market share expansion. The references section includes various books and journals that support the arguments made in the essay.

Organisational
Structure

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1.Functional areas of organisation and its hierarchy of management ...................................3
2. Importance of communication to leadership and management ........................................4
3. Drivers of globalisation .....................................................................................................5
4. Comparison of two organisation leadership or management style ....................................6
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Organisational structure is a system that outlines how certain activities are carried out and
directed within business operation in order to accomplish company's goal or objective in an
efficacious manner within prescribed time limit. Along with this, it helps an organisation to
assign a hierarchy that defines roles, responsibility, rules as well as it also determines how
information flows between levels within the business premises. Thus, having an effective or
organised structure enable establishment to maintain better working environment and also assist
them to remain efficient or focused towards business goal or vision. (Ashton, 2004) For this
report, AA Woods Holdings Limited is considered which is commenced in the year of 1994 with
an aim of rendering high or best quality of asbestos remediation services across the East of
England. This study comprises different business function within an organisation along with its
hierarchy, value of leadership and management communication. Furthermore, key elements of
globalisation and comparison between two firm's leadership and management style is also
mentioned here.
MAIN BODY
1.Functional areas of organisation and its hierarchy of management
An organisation is a formation of two or more individuals who come together with an
aim of achieving company goal or mission in an impressive and productive way within given
time frame. However, there are several business function in a company which contains unique
set of roles and responsibilities that contribute towards an accomplishment of sustainable
profitability ratio (Berger and Udell, 2002). Along with this, each department are interconnected
with each other which provide support and motivation among themselves and it enable them to
enrich their proficiency ratio. In regard of AA Wood Holdings , there are normally four main
functional areas which is explained below:
Marketing: This department is concerned with finding out needs and wants of potential
customers and promoting firm's product or service in order to gain competitive advantage in a
productive style. Moreover, some of the functional activities which AA Wood Holdings carried
out by their marketing division are advertising, market research, promotion, selling products for
attaining high level of volume of sales in an impressive or effective way.

Human resource: Under this section, it manages each personnel who work for an
organisation and provide fair solution in order to build better relationship as well as create
healthy working environment for employees. However, within AA Wood Holdings its human
resource function manages several activities like recruitment or selection, staff training,
industrial relation, health or safety for improving the overall performance of company in an
innovative way. Moreover, in this they mainly centring over finding or recruiting best people and
placing them in an appropriate place so that they can put their full contribution for an
enlargement of AA Wood Holdings market share or size.
Operation: In AA Wood Holdings , this division is responsible for making best quality
of product and delivering the service in a better manner in order bring increased level of
customer satisfaction that add value to its brand image (Billing, 1998). Hence, some of the core
functions which AA Wood Holdings 's operation department carries i.e. production of goods or
services, control of quality, transformation of raw material into finished goods.
Finance: This division in AA Wood Holdings is obliged to manage the money which is
coming into and going out of business. Moreover, they deal with all financial aspects such as
paying suppliers, staff wages, receiving payment from customers as well as to maintain the
financial position within competitive industry. Along with this, there are some more function
which AA Wood Holdings 's finance department handles like raising funds, preparing budget,
final accounts in order to handle firm's resource as well as implementing best strategic decision
to maximise the value of firm form long term.
Hence, AA Wood Holdings follows divisional organisational structure within their
business premises as they classifies each task in different division and provide necessary
resources so that each division work well and there will be less possibility of arising conflict
among personnel. Moreover, company can build better relationship with personnel and it add
value towards firm brand image.
2. Importance of communication to leadership and management
Organizational Communication means exchange of verbal and non verbal messages
among concerned individuals who are meant to accomplish of a particular goal through the
maintenance of policy, procedures or regulations that support daily and continuous operations.
Effective communication is required to build strong relations within an organisation and to

outside interested public (Burrell and Morgan, 2017). It is important that the message gets to the
recipient and is understood and accepted in the same terms as intended by the sender.
Communication is central to leadership and management because for both the leaders and
managers good communication skills play a major role to inform, persuade, guide, assure and
inspire their teams to work efficiently towards achieving an organisational goals. Leaders must
be able to communicate his vision to his team in a way it is intended so as to motivate them to
achieve goals with efficiency. For a leader it is important that he listens to his team members,
their ideas and give every team member a fair chance and be able to direct them in working
together in achieving organisational goals (Cassia, Paleari and Redondi, 2005).
For the management of an organisation, effective communication is important to link all
the departments of an organisation with each other. Communication is related to basic
managerial functions like planning, organising, leading and controlling. Managers must be able
to effectively communicate with the information to the lower levels so as to achieve the goals.
Efficacious interdepartmental communication within an organization means that one
department must send clear and comprehensive information to the other department who must
understand the information clearly and completely and in the same context as it is intended. For
example if the sales department is not performing well and the revenues of an organisation are
decreasing which can be seen by the finance department through company's balance sheet, then
the finance department needs to communicate with the management team so that the sales team
can improve it's sales by adopting appropriate measures and informing marketing department to
develop new marketing strategies to the same effect.
3. Drivers of globalisation
In today's marketplace, globalisation is regarded as one of the key player for every
organisation as it enable them to acquire best positioning within competitive marketplace as well
as help therm to enhance their profitability ratio in an innovative manner. However, it is define
as the process of interaction and integration among people, companies and government of
different nation worldwide (Davis Browning, 1991). Moreover, it helps in the overall economic
growth of country by foreign investment triggering saving within nation, generate enormous
employment opportunity which improves the life standard of community or society in a better
manner. Globalisation is a process through which all the countries are coming together on
political, social and economic grounds. Countries across the world are integrating and becoming

interdependent and interconnected with easy transfer of capital, goods and services across the
national frontiers which comes with growth of international trade, ideas and culture.
Through globalisation exchange of technologies, workforce, technical know how, products and
services can be easily interchanged among the countries. Economies of scale, advantages of
advance technologies, cost advantage, increased investment from other countries etc. can be
achieved.
Following are the current drivers of globalisation :
Technological Advancement : The technology has become advanced which makes it
easier for the goods, services and ideas to flow easily across the globe. Moreover, it enable AA
Wood Holdings to examine current or emerging trend of marketplace as well as help them to
adopt innovative technology or novel ideas within their business operation that lead them to gain
competitive advantage in a better manner (Dugdale and Lyne, 2010).
Reduction in cultural barriers: As people move from one place to another, barriers
between various cultures tend to decrease which has resulted in tolerance and openness towards
other cultures. Moreover, it facilitates better communication between nations and improve
overall economic growth as well as enhance life standard of community or society.
However, these drivers of globalisation enable AA Wood Holdings to acquire innovative
technologies to enlarge their market size into various location in an impressive or productive
manner. Moreover, it help them to add value towards their brand image and also assist them to
bring increased level of satisfaction among wide range of population that directly benefits AA
Woods Holdings in an enrichment of their proficiency.
4. Comparison of two organisation leadership or management style
The type of leadership/management that an organisation choose can have impacts that can lead to
either failure or success of the business. The kind of work culture, the type of organisation
and employees and how the problems and issues are to be addressed determines what
leadership style is suitable for an organisation.
Following are the two leadership or management styles that are mainly used in organisations :
Basis Autocratic Style Democratic Style
1. Role of leader/manager Sets objectives, allocate tasks to Encourages participation of the

2. Type of communication
3. Involvement in decision
making
4. Working Environment
5. Time of completion of task
6. Pace at which decisions are
made
7. Which is more preferable in
present scenario
be achieved by the employees
and wants them to be obedient.
Information flows from higher
authority to lower levels. It
follows a one way
communication pathway.
Subordinates are strictly
instructed the tasks without
giving consideration to their
opinions.
The workers lack freedom and
motivation due to close
monitoring environment.
Close monitoring of workers
can lead to faster rate of
production and less errors
(Flagestad, 2002).
Quick decisions are made and
can be useful in military.
Less preferable
employees in decision making.
Information can flow in all the
directions (from top to below
and vice versa.)
Suggestions or feedback from
the subordinates are also taken
thus increasing their
involvement in decision
making.
The workers are enthusiastic to
work and propose new ideas
that they have as they can work
more freely.
Comparatively low rate of
production due to less
supervision.
Decision making is slow as all
the employees are involved in
decision making.
More preferable by
organisations.

Henceforth, in regard of AA Wood Holdings Limited, democratic leadership style is
considered as one of the effective model as it empower them to maintain better relationship with
each personnel as well as encourage them to determine market trend in order to implement best
strategic decision which lead them to attain high level of profitability and productivity.
CONCLUSION
It has stated from the above explained report that every organisation requires a systematic
or organised structure which enable them to monitor or supervise each and every business
operation in order to attain high level of productivity in a better way. In addition, an expanding
business can minimize growing pains when it has an organisational structure or hierarchy in
place to build on during growth period. Moreover, a transparent communication plays a
significant role as it help leadership or management to generate better relationship with
workforce as well as aid them to create positive working environment for acquiring increased
level of employee satisfaction. Additionally, adopting globalised working culture enable firm to
expand their market share or size in an innovative and creative style.

REFERENCES
Books and journals
Ashton, D. N., 2004. The impact of organisational structure and practices on learning in the
workplace. International journal of training and development. 8(1). pp.43-53.
Berger, A. N. and Udell, G. F., 2002. Small business credit availability and relationship lending:
The importance of bank organisational structure. The economic journal. 112(477).
pp.F32-F53.
Billing, D., 1998. Quality management and organisational structure in higher education. Journal
of Higher Education Policy and Management. 20(2). pp.139-159.
Burrell, G. and Morgan, G., 2017.Sociological paradigms and organisational analysis: Elements
of the sociology of corporate life. Routledge.
Cassia, L., Paleari, S. and Redondi, R., 2005. Management accounting systems and
organisational structure. Small Business Economics. 25(4). pp.373-391.
Davis Browning, L., 1991. Organisational narratives and organisational structure. Journal of
Organizational Change Management. 4(3). pp.59-67.
Dugdale, D. and Lyne, S., 2010. Budgeting practice and organisational structure. Elsevier.
Flagestad, A., 2002. Strategic Success and Organisational Structure in Winter Sport
Destinations: a multiple stakeholder approach to measuring organisational performance
in Scandinavian and Swiss case studies(Doctoral dissertation, ETOUR).
Gleave, A. P., 1992. A versatile binary vector system with a T-DNA organisational structure
conducive to efficient integration of cloned DNA into the plant genome. Plant molecular
biology. 20(6). pp.1203-1207.
Grevesen, C. W. and Damanpour, F., 2007. Performance implications of organisational structure
and knowledge sharing in multinational R&D networks. International Journal of
Technology Management. 38(1-2). pp.113-136.
Lam, A., 1998.Tacit knowledge, organisational learning and innovation: a societal
perspective(Vol. 98, p. 22). DRUID.
Martins, E. C. and Terblanche, F., 2003. Building organisational culture that stimulates creativity
and innovation. European journal of innovation management. 6(1). pp.64-74.
McKenna, E. F., 2000. Business psychology and organisational behaviour: a student's handbook.
Psychology Press.