Fraser Foods: Analysis of Structure, Authority, and Expansion

This report examines Fraser Foods, a private limited company, and its organizational structure. It begins by identifying the initial functional structure and its transition to a matrix structure to support expansion plans. The report defines and illustrates various organizational structures, including functional, divisional, matrix, and flat structures, and explains their relevance to Fraser Foods. It then details the advantages of adopting a functional structure and provides a diagram illustrating this alternative. The analysis further clarifies line, staff, functional, and lateral relationships within Fraser Foods, highlighting the implications of the matrix structure. The report then describes how authority, responsibility, and delegation can be exercised within the new matrix structure. Finally, it identifies and explains how the expanded organization will align with the main situational variables of a contingency approach, focusing on functions, tasks, technology, and size. The report concludes by summarizing the key findings and the evolution of Fraser Foods' organizational structure.

Managing People and
Organisation

INTRODUCTION
Fraser food is a private limited company whose ownership of the company is handled by
Fraser family. This case helps in identifying the organisation's structure and its type ( Fraser
Foods). Organisational structure is an hierarchical arrangement of communication, line of
authority, rights and responsibility of an organisation. Basically there are four common types of
organisational structures which are as follows- Functional , Divisional, Matrix and Flat. Prior
Fraser was operating as functional organisation structure but after some time it came up by
adapting Matrix structure. In the following case alternatives of organisational structure has been
defined for Fraser Food's expansion plans and the changes after adapting new style , and lateral
relationships along with Fraser Foods. In new structure how the authority , responsibility and
delegation can be used within new matrix organisational structure. In last there is brief
explanation on how the organisation's expansion will be consistent with main situational
variables of a contingency approach.
Question 1 - Describe the type of structure that best describes the organisation, Fraser Foods.
Illustrate?
It is a formal organisation with line, functional and staff organisation. This organisational
structure depends on nature, size and scale of the business and it is initially concerned with
allocation of tasks or activities and delegation of authority. Under line organisation, the authority
flows downward and responsibility will go upwards in a straight line in which instructions and
orders flows from top to down and suggestions and requests move from bottom to up (Conceição
and et.al., 2017). It is simple to operate an control and goal of coordination is easily achieved. In
functional organisation, the Organisation is totally based upon functions and should be divided
into various departments and same type of work and transactions are put in one department under
the control of one head or manager of that specific department. It gives benefits of expertise and
specialisation, it ensures efficiency in task (Richardson and Hoey, 2017). In staff organisation,
the line managers get advice from the staff that is very useful in doing one task very efficiently.
So the role of staff is advisory and line managers are mostly appointed by staff managers for
solving problems very effectively. There is less burden on line managers and advancement of
research in this type of structure.
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Fraser food is in the format of this structure in which at the position of chief executive or
director is covered by three people that are David Fraser, Laura Bolton and Robin Fraser but of
three different functions as managing director, Finance director and operations director
respectively. This business consists of four senior managers who are considered as Functional
manager that are Human resources, Production, Product development and purchasing. Every
manager has administrative support or staff and a team under them.
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Question 2- Give an brief description of an alternative form of structure that would be more
appropriate for Fraser Food’s expansion plans. Your answer should include a clearly
labelled diagram.
Functional structure should be adopted by Fraser food. It should be organised by function
group employees according to their activities in the organisation. As marketing employees like
working in sales in own marketing department as do human resource, finance and technical
support. Organising in functional structure also has merits and demerits but its special merit is all
about expertise and specialisation so production can bear with minimum costs (Varona and et.al.,
2017). All the workforce is segregated according to function which clarifies allocation of tasks
and responsibility of organisation. This activity eliminates the identical assignments which waste
time and effort and makes it easier for top management to allocate right work to right employees.
This system also gives an opportunity for training to supervisors and inspectors which gives
flexibility into organisation
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Illustration 1: Functional structure

The above diagram gives us the brief picture that Fraser food need to adopt functional structure
for gaining advantage and more margin. There should be one director and all functions need to
be distributed in four functions as Research and development manager, Finance manager,
Marketing manager and manufacturing manger. All the functions need to be operated in separate
department so this will be more organised and well managed.
Matrix structure organisation
It combines two complex structures functional department with pure project structure.
Fraser food requires a structure which is more technically oriented and flexible . For completing
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Illustration 2: Matrix structure

project, a temporary project team is tailored in which functional manager gives authority
vertically and project manager passes authority horizontally.
Objectives of the project are clearly articulated and there is efficient use of limited human
resources. With the help of matrix structure there is retention of specialised team through life of
project (Yelin and et.al., 2017). Fraser food can use matrix structure for cook school, like they
will allocate specific task to cook and project manager can guide them how to perform that task
and deadline for that task will be assigned.
Question 3- Clarify and illustrate line, staff, functional and lateral relationships within Fraser
Foods
Fraser food's organisational structure is Functional form of organisation but after some
changes it will be working as matrix organisation structure. The traditional functional
organisation structure is less flexible than matrix organisation structure as in it allows members
of cook school of Fraser can share their suggestions across different projects or products.
Functional areas only maintain information about their role in their own department. In
functional, Fraser face difficulty benefiting from experiences and skills of those experiences of
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those in other areas. But in matrix members have constant contact with other department also via
membership in same project team (Miterev, Mancini and Turner, 2017). So in matrix , Fraser
employees have the opportunity to develop a wider skills than they developed in pure functional
structure. But with this change there are more chances of conflict because of two bosses.
Question 4 – Describe about authority, responsibility and delegation can be exercised within the
new structure.
In matrix organisation, every project manager directly reports to general manager and
vice president. Each and every project signifies a potential profit centre, the authority and power
which project manager is using is directly originated from the general manager. So in this
scenario functional manger of the Fraser food need to report director about all the operations.
Sharing of information is compulsory in Fraser food, like new order or any feedback from the
customer, and many people may be required for similar piece of work like cook, cleaning staff ,
sales man and many more (Egelhoff and Wolf, 2017). Usually the total responsibility and
accountability for failure or success is with project manager. The matrix structure signifies the
combination of functional structure and product organisational structure so, in functional
department, has duties to maintain technical excellence on project. Every functional unit is
leaded by a department manager whose first responsibility is to make sure that a unified
technical base is properly maintained and that all data can be converted in useful information for
the project. There is proper balance among time, cost and performance. Authority and
responsibility both are shared.
Delegation is critical aspect of management function of organising which involves
maintaining and establishing meaningful relationships between and among all members who are
working on same project. As without delegation there is no organisation as delegation is complex
process in any vertical organisation with any of the functional department. This complexity
brings the organisation on top, in initial phases of project management, many structure of
organisation were divided which were given all resources that are necessary for completing the
project (Zhao and et.al, 2018). When organisation is involved in many projects simultaneously,
with requirement of technology and schedules then matrix structure comes in the picture with
project manager. Project manger of Fraser food is only responsible for determining schedules,
project activities and financial plan, and with this functional manager is only responsible for
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determining the technical expertise which is required and available, skills and all the individuals
who will work on project and even for negotiation on mutual agreement and acceptance. The
project manager has the right to make decisions to accomplish the responsibility which is
mentioned above.
Question 5 - Identify and explain how the expanded organisation will be consistent with the main
situational variables of a contingency approach.
Functions- Fraser produces meals for different clients with 85% of output allocated to a
contract with one major supermarket that is Perkins. The business gives its services in fast
moving food products market and manager has a key role in planning process and ensures
resources are available or not (Ashton, 2004). They ensure that all packaging products are
brought down from suppliers that demonstrate efficiency and tries to maximise recycling
techniques.
Task: All problems can be arise which need to be watched like BSE crisis, health issues
relating to obesity, fat, sugars and salt in products, food labelling regulations and so on.
Maintains good relationships with Perkins, because perkins demand very high standards.
Technology – Because of high demand of Perkin, standards are well maintained and
exceeded . Fraser foods should be able to reassure customers of the sources of their meat and
enhanced reputation for quality products.
Size – Management was more concerned about the reliance on one customer and narrow
product range so they came up with some plans for expansion of business over next five years.
They should come up with franchise model and with different varieties of according to the trend
of the people who are staying near to the outlet. Every function of franchise should be adopted in
Fraser food. Two new directors post have been created to support Fraser food's expansion plans.
CONCLUSION
As organisational structure helps in determining how power, roles and duties are
coordinated, assigned and controlled and how much information passes among the different
levels of management. In the above case Fraser Food was using functional organisational
structure in which the Organisation is totally based upon functions and is divided into various
departments and same type of work and transactions are put in one department under the control
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of one head or manager of that specific department but after changes Fraser Food started
adapting Matrix structure organisation which combines two complex structures functional
department with pure project structure. Fraser food requires a structure which is more technically
oriented and flexible. So in this case, how authority, responsibility and delegation is exercised in
this new structure is explained.
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REFERENCES
Books and Journals
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Egelhoff, W. G. and Wolf, J., 2017. Understanding the Causes of Conflict in Matrix Structure
Firms. In Understanding Matrix Structures and their Alternatives (pp. 109-130). Palgrave
Macmillan, London.
Miterev, M., Mancini, M. and Turner, R., 2017. Towards a design for the project-based
organization. International Journal of Project Management, 35(3), pp.479-491.
Richardson, L. E. and Hoey, A. S., 2017. Structural complexity mediates functional structure of
reef fish assemblages among coral habitats. Environmental Biology of Fishes. 100(3).
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Yelin, R., and et.al., 2017. Ventral midline formation in the chick embryo is assisted by a
temporary local extracellular matrix structure. Mechanisms of Development, (145), pp.S155-
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Zhao, S., and et.al, R., 2018. Unfolding the Intra-organisational Perception Gap in Decision-
Making. In Contemporary Issues in International Business (pp. 171-189). Palgrave
Macmillan, Cham.
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