Organizational Theory and Practice

Organizational
Theory and
Practice

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Management Style and principles and functions of management used by the CEO...............................3
Steps taken with regards to organizational structure..............................................................................4
Leadership style.......................................................................................................................................5
Effect of power, influence and conflict at the organization.....................................................................6
Types of motivation at Thomas Cook......................................................................................................7
Justification of use of motivational theory..............................................................................................8
Recommendations for increasing organizational performance...............................................................9
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Organizational Management refers to the process of structuring, planning and directing
the resources and members of an organization for the achievement of goal (Bamber and Stefani,
2016). It is quite necessary in the context of an organization so that it can become successful in
the long-run. It can make sure that the operations are effectively managed without issues and
problems in the company and a higher-level of efficiency and effectiveness can be maintained
leading to an increase in productivity. This report is based on Thomas Cook Company. In this
assignment, specific analysis will be made on examination of management style and the
principles and functions of management used by the CEO, analysis of steps taken with regard to
organizational structure and leadership style of the CEO. Additionally, the effects of power,
influence and conflict and the various types of motivation will be discussed as a part of this
project.
MAIN BODY
Management Style and principles and functions of management used by the CEO
There are different types of management styles which a manager can use within an
organization (Bustinza, Vendrell-Herrero and Baines, 2017). Thomas Cook’s CEO Peter
Fankhauser used the Democratic Management Style. This style of management is very useful for
the managers in making sure that they take the right decisions by involving the employees in the
decision-taking process and decentralizing it effectively.
Advantages of Democratic Management Style-
 Democratic Management Style allows the managers to make sure that they are able to
involve the workers in the decision-making process.
 Democratic Management Style helps a lot in creating democracy within the organization
which creates the right environment within the organization.
Disadvantages of Democratic Management Style-
 Democratic Management Style can lead to increase in time taken for taking the required
decisions.
 Democratic Management Style can lead to decrease in effective supervision by the
managers of the organization.
Principles of management-
 Functions of management- These are Planning, Organizing, Staffing, Directing and
Controlling. They are quite helpful for the management in taking the required decisions.
These are used by the CEO of Thomas Cook to effectively manage the organization.

 The Types and Roles of managers within the organization- There are various types
and role of managers within the organization. In the context of Thomas Cook, it is
required that its CEO can play various types of roles with ease.
 Effective Management of Organizational Resources- The organizational resources
have to be managed effectively so that they can be used in the right manner. The CEO of
Thomas Cook needs to ensure that the organizational resources are managed effectively.
 Emotional Intelligence- Emotional Intelligence is required to be used in an organization.
The CEO of Thomas Cook is required to use it to make sure that the work is done in the
company.
 Knowing the business- It is important for the managers to know their business. The
CEO of Thomas Cook is required to understand the nature of the business of the
company.
Functions of management-
 Planning- It refers to the use of skills for making plans (Foray, 2018). Thomas Cook’s
CEO should use it to create plans.
 Organizing- It means ensuring proper management of the organization. The CEO of
Thomas Cook is required to ensure it.
 Staffing- It refers to the use of right techniques for ensuring that the best talented people
are selected in an organization. The CEO of Thomas Cook should ensure it.
 Directing- It means the specific instructions and directions which are required to be
given to the staff of an organization. The CEO of Thomas Cook should ensure it.
 Controlling- It refers to the control exercised by the managers so as to ensure that an
organization obtains the required results. The CEO of Thomas Cook has to ensure it.
Steps taken with regards to organizational structure
An organizational structure is required within an organization as it makes sure that the
activities which are related to an organization are carried on smoothly without facing issues and
problems (Grainger and Gilbert, 2016). There are different types of organizational structures
which can be used within an organization. These are explained as follows-
 Functional- In this type of structure, an organization is set-up on the basis of functions
such as Production, HR, Finance, Sales and Marketing (Gupta and Banerjee, 2016). Thus
this makes sure that the organizations are able to function effectively. Thomas Cook can
make use of this structure.
 Divisional- In this type of structure, an organization is set-up on the basis of divisions
which are related to products. This structure can be used so that the right decisions can be
taken in an organization. Thomas Cook can make use of it so that it can ensure the right
management.