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Organization Structure Induced by PEST Analysis

   

Added on  2019-12-03

13 Pages3917 Words458 Views
ORGANIZATIONSTRUCTURE

Table of ContentsINTRODUCTION...........................................................................................................................1TASKS.............................................................................................................................................1i. Appropriate organization structure for organization...........................................................1ii. PEST analysis as an analytical tool....................................................................................2iii. Analysing key factors to be considered in relation to the Tuffstuff..................................4SWOT analysis for the Tuffstuff............................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10Illustration IndexIllustration 1: Tall organization structure format.............................................................................2Illustration 2: Rwanda, Africa. Flag with Location.........................................................................5

INTRODUCTIONOrganization structure is considered as a process of defining hierarchy within businessenterprise. This structure identifies about the various jobs that employees have to perform andalso the functions to whom he/she needs to report. Further, it is the structure which definesactivities such as task location, coordination and supervision in order to achieve the goals andobjectives of organization. This structure although comprises different types of structures whichorganization has to choose in order to have proper and stable functioning. There are majorlyfunctional, divisional, and matrix structure which organization opts to achieve the long termgoals of the venture (Johnson and Scholes, 2002).In this context, organization undertaken for the present study is Tuffstuff Ltd which is acement company and having its operations in UK as well as in the continental part of Europe.This present report will focus on choosing the organization structure which will be the mostappropriate for the cited firm. Further, this report will majorly focus on the implementation ofthe PEST analysis as mentioned company is planning to set up its new venture in differentcountries.TASKSi. Appropriate organization structure for organization Being a cement organization, Tuffstuff Ltd. consists of large number of employees whoare giving their productive services in the different departments of the company in UK. Givencase study strikes that organization wants to set up their manufacturing and distributionoperations in sub- Saharan Africa and most preferably in Rwanda city. However, cited companydoes not have any distribution experience but the CEO thinks that level of competition in themarket of Africa is low. In order to have a successful operation in Africa, cited firm can choose a tallorganizational structure where span of control will be narrow and there will be differentmanagement levels. Along with this, it will generally help cited company to have effectiveoperation in Africa. This structure is tend to be more complex and might slowly respond to themarket change as all the instructions for the change come from the top managers. Further, in tallorganization structure, there are different layers for the middle management and it develops alink between top management and employees of the venture (Neely, 2007). Moreover, each andevery layer of management develops its own rules and procedures which employees have to1

perform as per the instructions given by the top managers of organization. On the other side,employees are in small numbers under the control of managers for a particular layer, thereforethey are able to supervise and guide them more closely and spend more time in giving themproper training for accomplishing tasks and duties in an efficient and effective manner.Illustration 1: Tall organization structure format(Source: Tall Organization Structure - Meaning DiagramAdvantages. 2011)However, employee’s satisfaction level generally lacks in it because this structure isbound with many layers of the bureaucracy and as well as some rigid rules too. Further,employees also have fewer opportunities for taking up the responsibilities of work which areassigned to them. For Tuffstuff Company, in order to operate in Africa continent, communicationwill be clear as this structure possess this quality (Tall Organization Structure - MeaningDiagram Advantages. 2011). Each manager is able to have a crystal clear communication withtheir employees so that there are fewer chances of having mis-communication and company willbe able to achieve their goals and objectives in a well definite manner. However, each and everylayer has some deficiencies that leads to minimize the effectiveness of work performance. Underthis structure, decision making will be slowed down because approval will be required from thedifferent employees and it will be quite difficult for managers to have a clear decision.ii. PEST analysis as an analytical tool Tuffstuff can conduct PEST analysis in order to know the different factors which canimpact the organization performance. PEST analysis is considered as a framework of macro-environmental factors which is generally used for scanning of environment and also treated as acomponent of the strategic management. Before starting of any sort of business operations, all2

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