Structure and Culture - Assessment 1

This report discusses the relationship between organizational structure and culture with the performance of Kellogg's. It explores various theories and models associated with the culture and structure of the organization.

Structure
and
Culture –
Assessment 1

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Organisation is defined as a system that involve different structure and culture that help
in conducting activities in a systematic manner. It is important for an entity to have an effective
structure & culture as it assist in implementation of work systematically. Culture is defined as the
values, norms, beliefs and opinions of employees prevailing in the organisation (Mansouri, Singh
and Khan, 2018). It is important for an entity to ensure that positive working culture is provided
to the staff members as it has direct impact on the performance and productivity of a company.
Structure is basically a system by which a firm is develop an hierarchy level at the workplace. In
the present report, Kellogg’s is taken into consideration. It is a food processing industry which
was established in the year 1906 by Will Keith Kellogg. The products offered by company is
crackers, cereals, frozen waffles, vegetarian foods, cereal bars, toaster pastries and many more.
The report will describe relationship between organisation structure and culture with the
performance of a company. In addition to this, there is discussion about various theories and
models associated with the culture and structure of the respective organisation.
MAIN BODY
Kellogg’s is an American food production and manufacturing that is headquartered in
Michigan, United States. The company founded in the year 1906 by Will Keith Kellogg. The
company has a high market presence as it offer product and service in more than 180 countries
globally. There are various range of products offered by company that is frozen waffles, cereals,
toasted pastries, cereals bars, vegetarian food and so on. In addition to this, Kellogg’s offer its
products by diverse brands such as Sunshine biscuits, pringles, Eggo and Grarden burger etc.
The subsidiaries of Kellogg’s are Rxbar, kashi, Keebler company, Bear Naked Inc and so on.
Kellogg’s conduct analysis for identifying relationship between organisation structure and
culture with its performance and people as well.
Organisation structure is termed as a system that is adopt by an entity to outline the
overall process that will assist implementing activities as well as operations which in turn leads
to achievement of desired goals in an effective manner (Miller, 2020). Organisation structure
consist of various roles as well as responsibilities that is performed by members of company
according to their hierarchy and designation level. It is determine that an effective organisational
structure helps companies to effectively implement all activities and attain competitive
1

advantage at marketplace. It basically shows the stages by which an information as well as
communication take place within the organisation. Organisation structure is of different types
that is adopted by organisations in order to perform all the operations and activities in a proper
manner. For instance, hierarchical structure is where every group of employees are instructed by
one single head or employer. Herein, the group is created on the basis of various factors such as
products, functions, services and so on. It is analysed that hierarchal structure is mainly adopt by
large organisations that involve different level of authority, power and management as well. In
addition to this, another form of structure is flat structure that is usually adopt by small entities.
In this structure, all the stages and departments are undertaken at similar level and adopting such
organisation help an entity to decline several middle level management. Further, there are also
other forms of structure that is adopted by higher authorities of a company as per their operations
as well as size and these are divisional, matrix, line, network, team base and so on (Long, 2018).
With reference to the respective organisation that is Kellogg’s, its managers adopted matrix
structure in which some employees report to more than one leader or supervisor as well. In this,
the reporting relationship are set up as a grid instead of the traditional hierarchy. In addition to
this, staff members have dual reporting relationship as they are reported to both functional
manager and product manager in a proper manner. With the help of this model, Kellogg’s is able
to exchange information as well as message in an appropriate manner. Along with this, it also
promotes democratic leadership style wherein all the employees are fairly and equally treated. It
also help company to enhance the motivation level of all the staff members that has positive
impact on the sales and profitability level of the respective organisation.
2

3
Illustration 1: Org chart
(Source: Org chart, 2019)

By analysing the above chart, it is sated that Kellogg’s staff members and employers are
require to report to both functional as well as production manager. In addition to this, the higher
authority or senior manager of organisation require to report to SVP, presidents, CFO and they
need to report chairman and chief executive officer of respective company who is Steven
Cahillane. Further, it is determine that the organisation structure of Kellogg’s is associated to the
culture, performance and people as due to effective structure, employees are able to implement
activities effectively and also follow structure in an appropriate manner (Tanwar and Kumar,
2019). Moreover, it will also assist respective company to implement all operations as well as
activities systematically which has a positive impact on the performance and profitability level of
an organisation.
Organisation Culture is defined as set of values, ethics norms, opinions, ideas as well as
assumptions that is developed and acquired by an entity for maintaining positive and effective
working environment. In context to Kellogg’s, it is determine that company has adopt Hofstede
4
Illustration 2: Org chart
(Source: Org chart. 2019)

culture dimension theory so that they can gain insight about culture in an effective way. Hofstede
model involves five dimension that shows various forms of culture at workplace. The foremost
and first dimension is power distance that involve powerful members of Kelloggs’s. in this type
of culture, power is equally proportionate between the staff members. It is determine that
kellogg’s perform its work via matrix structure and due to this, it have power index of high level.
The second dimension of such theory is Individualism and collectivism that means collective
culture within a company will assist respective company to attain objectives timely and effective.
Adoption of individualism dimension develop a negative mind set of staff members and
demotivate them that impact on the quality and performance of respective company in a negative
manner.
The third dimension of Hofstede theory is uncertainty avoidance index that means respect
organisation should give training to its employees as it help them to deal with the risk situation
which can arise at any time and at any palace (Kwarteng and Aveh, 2018). In addition to this, it
reduces the negative mind set of employees and make them feel encouraged and influence
towards their working. Femininity and Masculinity is the fourth dimension, femininity is
basically a type of culture where a company prefer more female staff members. On the other
side. Masculinity is where an organisation prefer male staff members to work. It is determine
that the higher authorities of Kellogg’s adopt both dimension as it will assist in developing
positive brand image in market and maintain positive working culture at workplace. The last and
the important dimension of Hofstede theory is Short-term and long-term dimension. It state that a
company can develop short-term culture and in this they can form strategies for short time basis.
On the other hand, long-term culture define as a situation wherein higher authorities develop
every decision for long-term. With reference to chosen organisation, it is require to adopt both
form of culture that will be depend on the situations and the ability to handle such situations.
In a company, people is defined as an employees or the staff members who implement all the
activities and operations according to the guidelines so that organisational objectives is achieved
within stipulated time period. In addition to this, they assist company to enhance the level of
market performance and attain competitive advantage at marketplace. In addition to this, it also
consist of stakeholders who invest their time as well as money in an entity with an aim to attain
higher profits. With reference to Kellogg’s, it has more than 34,000 skilled and effective
employees which is the main reason of its success at marketplace. All this staff members are
5

expert an experience in manufacturing convenience and in cereal food like frosted flakes, corn
flakes, pop tarts and so on. In addition to this, people also consist of shareholders that invest
money on business activities with an aim to earn higher profits (Chen, Thompson and Pan,
2019). The shareholders of Kellogg’s are BlackRock Fund advisor, Vanguard group, Templeton
Global advisor, Mellon trust and so on. all this are the top owners and shareholders of Kellogg’s
organisation due to which it is able to expand operations at global level.
Organisation Performance is defined as an actual outcome that is gain by an entity by performing
operations and activities in an effective manner. In addition to this, it is also earned by company
by targeting the right people at right place in an appropriate way. The organisation performance
is basically involve three man areas that shareholders return, financial performance and product
performance as well. In relation to respective organisation, its higher authorities conduct an
analysis for gaining insight about organisational performance as it help them to make
improvements and attain objectives within stipulated time period. For this, the managers adopt
SWOT analysis tool that aid in identifying strength, weakness, opportunities & threats as well.
From this analysis, it is analyse that one of the major strength of Kellogg’s is its market presence
as it offer product and service in more than 180 countries. Another strength is, it offers healthy
products that attract people to consume it which has positive impact on its sales and profitability
level. In addition to this, it has several weaknesses also that is required to be overcome by
company in order to gain higher growth and competitive advantage at marketplace. It is analysed
that Kellogg’s bring innovation in a slower rate as compare to requirement in market that has
negative influence on its customer base level. Along with this, the company is also facing issues
at the time of conducting marketing campaign as it is not matched with the message given with
the product. This impact negatively on the overall brand image and market performance of
Kellogg’s.
In context to the opportunities of Kellogg’s, the company can expand its market globally
due to which its sales and profit margin is increased (Agarwal, Chhugani and Wanchoo, 2018).
In addition to this, Kellogg’s can make tie ups with hotels, colleges as it will help in increasing
customer base and market presence as well. If it is talking about the threats of Kellogg’s is its
competitors such as Quaker oats, Nestle, generally mills decline its profitability and market
share.
6

By conducting the study, it is stated that Kellogg’s is required to adopt effective structure
as it help in maintaining positive working culture at workplace. It is important for the company
to focus in systematic implementation and execution of activities as it help in enhancing
performance and profitability level in an appropriate manner.
CONCLUSION
From the above study, it has been analysed that an effective working culture, structure and
people are required in order to enhance performance level and market share as well. In addition
to this, employees are the asset of an organisation which help an entity to meet with their targets
and achieve competitive advantage at marketplace. It is significant for the higher authorities and
management team of company to adopt effective structure so that all the activities are carried out
in a systematic and effective way that has positive impact on the overall performance and profits
of an organisation. Providing positive working culture to the staff members enhance the
motivation level and develop morale of employees due to which they work with full potential
towards attainment of desired goals and objectives in a timely manner. Further, it is essential to
evaluate the performance level and for this, many theories and methods were used such as
SWOT analysis and so on.
7

REFRENCES
Books and Journals
Agarwal, P., Chhugani, R. and Wanchoo, V., 2018. Analysis of brand valuation techniques for
cereal brand: Kellogg. International Journal of Education and Management
Studies, 8(1), pp.31-34.
Chen, H., Wooten, H., Thompson, L. and Pan, K., 2019. * Department of Animal and Food
Sciences, Texas Tech University, Lubbock, TX, United States,† WK Kellogg Institute
for Food and Nutrition Research, Kellogg Company, Battle Creek, MI, United
States. Biopolymer Nanostructures for Food Encapsulation Purposes: Volume 1 in the
Nanoencapsulation in the Food Industry series, 1, p.39.
Kwarteng, A. and Aveh, F., 2018. Empirical examination of organizational culture on accounting
information system and corporate performance. Meditari Accountancy Research.
Long, S., 2018. The perverse organisation and its deadly sins. Routledge.
Maldonado, T., Vera, D. and Ramos, N., 2018. How humble is your company culture? And, why
does it matter?. Business Horizons, 61(5), pp.745-753.
Mansouri, A.A.A., Singh, S.K. and Khan, M., 2018. Role of organisational culture, leadership
and organisational citizenship behaviour on knowledge management. International
Journal of Knowledge Management Studies, 9(2), pp.129-143.
Miller, V., 2020. Understanding digital culture. SAGE Publications Limited.
Stemn, E., Bofinger, C., Cliff, D. and Hassall, M.E., 2019. Examining the relationship between
safety culture maturity and safety performance of the mining industry. Safety
science, 113, pp.345-355.
Tanwar, K. and Kumar, A., 2019. Employer brand, person-organisation fit and employer of
choice. Personnel Review.
8

9