Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY.................................................................................................................................1 Structure of an organisation........................................................................................................1 Culture in an organisation..........................................................................................................3 Appropriate structure and culture for British American Tobacco..............................................5 Impact of adopted structure and culture on the performance of company.................................6 CONCLUSION...............................................................................................................................7 REFERENCES................................................................................................................................9
INTRODUCTION Structure is referred as a system which outlines the manner in which different operations and activities of a firm are directed so that targets can be achieved in a proper manner. These organisational activities involves their roles, rules and responsibilities. Culture is defined as a system of shared beliefs, values and assumptions which governs the way in which individuals behave in organisations and different situations(Brown and et. Al., 2019). This report is based upon British American Tobacco which is a UK based multinational tobacco and cigarette manufacturer, headquartered in London. This company was established in 1902 and operates at global level as a market leader. This assignment is going to cover about appropriate culture and structure which is required by a company to sustain a strong position in marketplace. In this context, different aspects of structures in context with company will be discussed. Also, different factors of Hofstede cultural dimension is discussed. At last, impact of structure and culture on the organisation and its performance is mentioned in a brief manner. MAIN BODY Structure of an organisation Organisational structure is defined as a hierarchical arrangement of rights, authority, communicationsanddutyofabusinessfirm.Itbenefitsinacknowledgingthepower, responsibilities and roles which are assigned to different departments in British American Tobacco so that information can flow in a proper manner. A structure is based upon the strategy andobjectivesofacompany.Therearedifferentaspectswhichareassociatedwith organisational structure. Some of these aspects in context with British American Tobacco is mentioned below: Chain of command:In context with organisational structure, chain of command is defined as an organisational hierarchy to report various relationships from bottom to top. It benefits the employees in acknowledging whom they have to answer about their activities and work. Chain of command inBritish American Tobacco will benefits in laying out accountability, line of authority and decision making power so that every task can be performed in a systematic manner. Span of control:It is defined as the number of employees and subordinates which are working under the direct control of manager. In case ofBritish American Tobacco, if 1
manager of a finance team have six direct reports, he posses a span of control of six. It will be a good way for British American Tobacco to acknowledge the efficiency of their organisational structure(Steinmetz, 2018). Different designs of organisational structure Geographic structure:In this structure, employees of a company are bring together undergeographic divisions. Under this structure, each division inBritish American Tobacco will operate as a separate firm having their specific production, finance and marketing functions. Employees from different functionalities will be able to perform divisional work in a proper manner. Function structure:This is an organisational structure which benefits in organising employees. These people are grouped in context with their specific knowledge and skills. This structure vertically divides each department from sales and finance department to 2
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consumer service. In this structure, specialised units in British American Tobacco will report to a single entity which is top management(Moxon and Smith, 2016). Product structure:In a product based organisationalstructure, an organisation is separatedonthebasisoftheiractivities,products,geographyandprojects.This organisational structure will benefits the British American Tobacco in focusing on specific items while performing their business operations. Mixed structure:Under this organisational structure, skilled and capable employees of a company perform work and business activities in more than one department. Within this structure, Employees of British American Tobacco will have to report two different managers at same time(De Maré, 2018). Matrix structure:It depicts an organisation in which workers are divided in various teams through products or projects which are leaded by a product or project manager. In this structure, different project manager reports to functional manager. It defines that these firms operates under cross-functional groups. This structure benefits in open communication, flexibility and dynamic work environment. Culture in an organisation Organisational culture is a summed up aspect which involves the experience, philosophy, expectations and values which benefits in guiding the behaviour of employees in an organisation. An appropriate organisational culture is based upon shared customs, beliefs and attitudes which are formulated over time. In case ofBritish American Tobacco, hofstede cultural dimension is discussed below: Hofstede's cultural dimension Cultural dimension given by Hofstede is a framework which is associated with cross cultural communication. It benefits in acknowledging the impact ofculture on the values and working patterns of employees within an organisation. Different aspects of this framework are mentioned below: Power distance index:It is concerned with the degree of inequality which takes place and accepted among people with or without power. Organisations having high power distance follows autocratic leadership, centralised authority, paternalistic management, 3
hierarchical levels etc. which can impact employees of firm in a negative manner(Brock, Carrigan and Scambler,2016). Firms having small power distance have participative management style, flat organisational structure, small supervisory staff etc. Individualism vs collectivism:Individualism is a way which defines the extent up to which employees of a firm works individually whereas collectivism defines the extent of employees for remaining in a group. In case ofBritish American Tobacco, employees are required to work in a collective manner so that complexities can be deal in effective manner.BritishAmericanTobaccoisrequiredtoadoptcollectivismsothat organisational work can be performed in unified manner. Masculinity vs femininity:In context of business, masculinity is referred to the preference in society for assertiveness, achievement, heroism and rewards for the success. Femininity is depicted as an organisation that prefers modesty, caring, corporation, quality of life and caring for weak. Aspect of Femininity will help the employees of British American Tobacco in performing business activities comfortably. Uncertainty avoidance index:This is the extent up to which employees of a firm cope up with the future uncertainties and complexities in a simple manner. Organisations having weak uncertainty avoidance have flexibility while working, tolerance to distinct behaviours, undertaking risks etc. Those companies which have strong uncertainty avoidance has ability to avoid risk, robust consensus requirements, respect for authority and no tolerance for deviance(Danner and et. al., 2017). Long vs short term orientation:This cultural factor defines interrelation of past with the future and current actions. Lower index degree will depict that traditions must be kept and honoured. High degree index in relation with business firms views circumstantial, pragmatic and adaptable problem solving as their basic necessity. If Organisation like British American Tobaccois with short term orientation, they will lacks economic development. Indulgence vs restraint:This dimension defines the degree of freedom which is offered to employees in an organisation so that they can work in a comfortable manner. Indulgence is referred as an aspect that offers free gratification of basis necessities to workers. Whereas in restraint organisations, employees are required to follow strict rules and regulations. 4
Appropriate structure and culture for British American Tobacco As per above discussed aspects, it is true that business firms have exposure to different kind of organisational culture and structure. It depends upon the management of company that which type of structure and culture they prefer to prevail in their organisation. Right kind of organisational structure will benefits British American Tobacco in performing their work in an organised manner so that high advantage over rivals can be attained in a proper manner. Right organisational culture in a company will helps in sustaining a positive working environment so that overall productivity ofBritish American Tobacco will enhance. In case of organisational structure, most appropriate structure for concerned company is geographic structure in which employees of company will be divided in accordance with different divisions. Each division will have employees having different specialities so that organisational work given to them will be performed in a proper manner. These divisions in British American Tobacco will work as separate companies working to achieve common goal(Nübling, Schmidt and Weiss, 2016).At present company is successfully working in around 45 nations which are mainly in Asia, Europe and America. 5
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In case of organisational culture, most suitable cultural aspects will be that British American Tobacco must incorporate low power index so that participative style of management and leadership can take place.Aspects related with femininity such as caring for workers, corporation and modesty will allow the employees in enhancing their coordination so that they can deliver their best performance without any issues. High uncertainty avoidance will benefit employees in dealing with complex situations in an effective manner. Concerned organisation is required to have long term orientation so that pragmatic view for problem solving can be adopted which willbenefit the company in achieving high outcomes even from disadvantageous situations. Indulgence in organisational culture will benefits the firm in tolerating opinions of different employees due to which effective decision will be taken. This will benefit the company in earning high profits and revenues(Kreutzer and et. al., 2017). Impact of adopted structure and culture on the performance of company Business organisation which is structured according to geography will bifurcate their activities and operations in accordance with the geographic location. Under this structure, each division inBritish American Tobacco will have their own sales, marketing, product or management team so that demands of local customers in a region can be fulfilled in a proper manner. This structure is mainly suitable for large multinational organisations which have multiple branches across country or globe(Hirakawa and et. al., 2015). Due to this structure, British American Tobacco will be able to perform their business activities and operations in different nations or region in a proper manner. This will improve their performance due to which they will be able to achieve high revenues and profits. These profits will help them in giving tough competition to rivals so that a strong position in global context can be attained by company. Due to adoption of feminine culture with low power index and indulgence, employees will be able to share their opinions in a proper manner. This will benefits the company in taking right decision so that only strategically right decisions can be taken. This will benefits the company in giving tough competition to rivals. This will benefitsBritish American Tobacco in sustaining strong position in marketplace. Organisational structure and culture of a business defines the mentality, values or work ethics of the employees & management of a company. After all the analysis it can be said that geographic structure is most beneficial for the company as people with different skills will work 6
in different locations so that customers can be served in a proper manner. Company is required to adopt participative leadership style. Under this style, opinion of employees will be given preference. Collective style of working will be more appropriate as different employees in BritishAmericanTobaccowillworktogethertoachievecommonobjectivesi.e.high organisational growth. Appropriate culture for British American tobacco is to posses a low power index so that people can be treated fairly. Uncertainties must be avoided and indulgence is required to be incorporated so that employees can work efficiently. CONCLUSION From above mentioned report, it has been concluded that to sustain a strong position in marketplace, an organisation is needed to have appropriate culture and structure. There are different kinds of organisational structures such as geographical division structure, matrix structure, product structure or mixed structure etc. Respective organisation can choose any organisational structure as per their needs and requirements. All of these structures have some merits and demerits which can impact organisation and its productivity in a considerable manner. There are various kinds of organisational cultures and their aspects. A company is required to choose aspects in context with their requirements so that high revenues and profits can be earned in a considerable manner. This will benefits the company in achieving their desired objectives in a proper and effective way. 7
REFERENCES Books and Journals Brown, E. and et. Al., 2019.Making residential care work: structure and culture in children's homes. Ashgate. Steinmetz, G. ed., 2018.State/culture: State-formation after the cultural turn. Cornell University Press. De Maré, P., 2018.Koinonia: From hate, through dialogue, to culture in the larger group. Routledge. Brock, T., Carrigan, M. and Scambler, G., 2016.Structure, Culture and Agency: Selected Papers of Margaret Archer. Routledge. Danner, J. E. And et. al., 2017. Genetic population structure in an equatorial sparrow: roles for culture and geography.Journal of evolutionary biology.30(6). pp.1078-1093. Nübling, S., Schmidt, H. and Weiss, A., 2016. Variation of the Pseudomonas community structureonoakleaflettuceduringstoragedetectedbyculture-dependentand- independent methods.International journal of food microbiology.216.pp.95-103. Hirakawa, Y. and et. al., 2015. Simplification of vacuole structure during plant cell death triggered by culture filtrates of Erwinia carotovora.Journal of integrative plant biology. 57(1). pp.127-135. Kreutzer, J. and et. al., 2017. Cell culture chamber with gas supply for prolonged recording of human neuronal cells on microelectrode array.Journal of neuroscience methods.280. pp.27-35. Moxon, S. R. and Smith, A. M., 2016. Controlling the rheology of gellan gum hydrogels in cell culture conditions.International journal of biological macromolecules.84.pp.79-86. 8