Prada Plc: Structure, Culture, People, and Organizational Performance

This report delves into the intricate relationship between organizational structure, culture, and people, and their collective impact on the performance of Prada Plc, an Italian luxury fashion company. It examines how Prada's functional structure and adhocracy culture, which emphasizes creativity and collaboration, influence its 12,414 employees and its financial success. The report explores key management functions such as planning, organizing, directing, and controlling, highlighting the role of leadership in fostering teamwork, providing direction, and implementing change. Furthermore, it identifies critical variables like time management, goal setting, and employee motivation that contribute to effective management and leadership within Prada. Finally, the report discusses the behavioral approach to management, emphasizing the importance of understanding employee behavior and fostering positive relationships to enhance performance. The report concludes by summarizing the interconnections between these elements and their significance in driving business growth and operational efficiency.

The relationship between
structure, culture, people and
organisation performance at
the Organisation Prada

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Relationship between structure, culture, people and organizational performance......................1
Managerial functions and processes............................................................................................2
Role of Leadership......................................................................................................................3
Variables that determines effective management and leadership...............................................4
Behavioural approach to management........................................................................................5
CONCLUSION................................................................................................................................5

INTRODUCTION
Organizational structure, culture and people all together combined plays an important
role in the effective performance of the organization. In simple words structure and culture are
mainly responsible for better performance of the organization and leading towards the growth of
business. This report is based Prada Plc an Italian Luxury fashion company that deals in Leather
handbags, Shoes, perfumes, clothing and other fashion accessories The company operates in 618
boutiques worldwide and has the revenue of US $3.91 billion. Prada Consists of 12,414
employees working under it. This report will highlight the relationship between structure,
culture, people and organizational performance. The report will include Managerial Functions
and processes along with the role of leadership in the organization. Further the report will
include the variables that determines the effective management and leadership and will also state
the behavioural approach to the management of the organization.
MAIN BODY
Relationship between structure, culture, people and organizational performance.
Organization structure- It is a type of system that determines the flow of activities and
information and their direction in order to attain the goals and objectives of the organization. It
defines the levels of hierarchy within the organization along with defining the roles and
responsibilities of every employee of the company(Lăzăroiu, 2015). Prada Company follows
functional structure that includes higher ranking executives at top with multiple middle level
managers.
Organization culture- Organizational culture refers to the defined values, beliefs,
assumptions and the ways of interacting of the people that forms up a unique psychological
environment in the organization(Miner, 2015). Prada company follows Adhocracy culture in its
working environment that includes creative working as per the changing dynamics of fashion
trends. It includes combine working of the skilled craftsman along with the designers and
manufacturers of the product.
People- Prada Group consists of 12,414 employees working in the different locations of
the company. It includes the group of designers, managers, retail managers, manufacturing staffs
and other lower level executives as a part of Prada company.
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Organizational Performance- Prada has established its stores at 318 locations
worldwide and operates with the revenue of US $3.91 billion. The company possess its net
income of €333.3 million through its business operations worldwide.
Relationship between structure, culture, people and organizational performance-
There is a direct linkage for all the elements discussed above in case of Prada. The organizational
structure determines the roles and responsibilities of every employee and implements the
systematic working of the company by designing and staffing the people as per their roles and
duties. Further the structure also initiates the systematic flow of information and establish
effective coordination among the individuals in the company. The culture creates a positive
mindset and type of nature of all the employees in the organization to work accordingly. In case
of Prada, the company demands creativity and keeps on experimenting new ideas and designs
related to new products. In simple terms it can be stated that the culture defines the purpose and
the way of working and the structure further allocates the tasks and the roles to the employees as
per their skills and initiates the direction and flow of activities in the organization(Osland and
et.al., 2015). On the other hand the people that is employees in the organizational are been
influenced by the culture and work according to the structure. All these elements combined
together results in the performance of the organization as per the activities performed with
efficiency. So this is how the structure, culture and people interrelates with each other and
further results in organizational performance
Managerial functions and processes.
There are several management functions performed in Prada company by its managers.
Here are some of the functions discussed below-
Planning- The managers of Prada plan out the things to be done and what all activities to
be initiated for the future in relation with the goals and objectives of the company. They design
the work and plan out the targets and deadlines for every tasks as well as frame the short term
goals that meets out the company's objectives and vision(Gupta, 2018). Managers also frame
different strategies to be implemented for the achievement of these targets. Planning of the
activities is done as per the changes to be made in the product line or manufacturing process as
per the trends in the market as the company is concerned with the latest fashion products and
accessories to be introduced in the market.
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Organising- After planning of the activities to be performed, the next step managers
undertake is the allocation of tasks and responsibilities to the executives and the employees in
the company. The managers prepares down the list of all the activities planned and allocates the
entire task schedule of activities to the different employees as per their skills and efficiency. The
managers have to make sure weather all the work is allocated to the staffs as per the activities
planned before and analyse the work schedule of activities allotted to the employees.
Directing- In this function the manager of Prada directs the work to the employees after
its allotment. The managers provide instructions to the supervisors and the senior head of the
department regarding the task performance, its deadline and how the process must be done and
completed within the time(Lussier and Hendon, 2017). They are responsible for guiding all the
necessary instructions to the employees related to the work activities and commanding the staffs
to perform it as per the instructions and on time.
Controlling- Once the work has been started by the staff the next thing managers do is
keep an eye on the performance, production and efficiency of the work. They instruct and guide
the employees for optimum utilization of the resources and avoiding wastages. They monitor the
activities of the employees and instruct them wherever required to make changes in techniques as
well.
In this way the management of activities is being performed by managers at Prada for
initiating efficiency in performance of business activities.
Role of Leadership.
Leadership plays an important role in the management and performance of the activities in the
organization effectively(Valmohammadi and Roshanzamir, 2015). The following are the roles
that leaders in an organization play to foster effective leadership in Prada company-
 Initiate the team building and ensuring the individuals focus on teamwork and works
together for the achievement of specific target or goal.
 Provide direction and guide the employees in relation to the work performance, designing
of product or what changes need to be made in the work activity to achieve specific
output.
 Lead the team effectively and influence the employees to work with dedication and
efficiency in the organization.
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 To allocate the change being implemented by the company and ensure that the employees
adopt it and work along with it as per the company's policy.
 To build relationships with the subordinates and ensure that they coordinate among the
team member for better performance and achievement of team goal.
 To integrate the team efforts for better performance and productivity by the employees
through their contribution of efforts to the company.
Hence, it can be observed that the leadership plays an important role in managing the
performance and productivity of the company as well as business operations so that the work is
done as per the requirements and meets up the desired goals and objectives of the organization.
Variables that determines effective management and leadership.
The following are variables that determines the effective management and leadership in
Prada Company-
Time Management- It refers to managing all the activities and tasks within a specific
time limit so that the operations are completed within the deadline. Time management is the vital
factor for Prada company as the company has to come up with innovations in their products due
to the changing fashion trends and latest demand(Tasselli and et.al., 2018). Hence in order to
meet and cater these activities the company has to effectively allocate the deadline and ensure
that the products are been made ready within the time limit. It posses an effective quality of
management and leadership as because time management helps in improvement efficiency and
productivity for the company.
Setting Goals and periodic reviews- The major responsibility of manager as to
determine the company goals and to make them achieve. In order to achieve the company's
growth the manager to set up the specific goals for it that may include number of activities
related to it. This framework enables the people in the organization to understand why they are
working and what they need to achieve(Driskill, 2018). The goals must measurable and within
the efficiency of the organization. This element determines the capability of manager to frame
the strategies and targets and hence comes under effective management and leadership
component.
Motivation- The main concept of management includes getting work done by others by
influencing them, The employees are only influenced when they are been motivated by their
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leaders or managers in the form of verbal motivation or through the financial incentives. The
managers must be able to inspire the employees to work and able to motivate them for making
them contribute more of their efforts. This will in turn keep the employees engaged in their work
and also enhance their performance and productivity that at last turns out to be effective
management and leadership performed by the managers.
Behavioural approach to management.
Behavioural approach is based on behavioural management theory that includes
understanding the behaviour of an individual in organization and accordingly implementing the
work activities or applying motivation tactics on them. The theory states that the managers must
be aware for the employees behaviour and establish relations with them to understand their
behaviour an potentiality(Alvesson and Sveningsson, 2015). It includes various elements such as
employee motivation, conflicts, expectation of the employees, dynamic behaviour, performance
improvement etc. This theory states that the organization must consider the employees as a
resource and assets of the company and shape them well which turn out to be growth factor for
the organization. The manager must not consider the employees as machines and focus on their
needs and requirements as they are the only sources which initiate the functioning of the business
operations through their efforts and contribution to the company.
The following factors affects the individual behaviour in an organization-
Ability- They are the traits of a person that he learns from the environment as well as his
capability of doing any Task. It defines the behaviour of a person at workplace in relation to task
performance.
Perception- Perception are the views of a person toward a particular element and also his
judgement regarding the activity. Better the perception for the work the better will be behaviour
of an individual working in it.
Attitude- Attitude can be described as the way of reacting or response by a person over a
specific element. Positive and negative attitude towards the activity can represent the behaviour
of an individual at workplace.
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CONCLUSION
From the above report it is summarized regarding the study of organizational structure,
culture, people and performance and their interrelationship between each other for fostering the
business growth. The report described the different management functions and how the managers
perform these functions and processes in managing the organizational activities and the
employees in it. Further the report stated the variables and factors that represents the effective
management and leadership in the organization and how these variables help the businesses to
improve its efficiency of operations and target achievement process. The report concluded by
mentioning the behavioural management approach in the organization and its impact on business
activities and operations.
functions of management
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REFERENCES
Books and Journals
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change
work in progress. Routledge.
Driskill, G.W., 2018. Organizational culture in action: A cultural analysis workbook.
Routledge.
Valmohammadi, C. and Roshanzamir, S., 2015. The guidelines of improvement: Relations
among organizational culture, TQM and performance. International Journal of
Production Economics. 164. pp.167-178.
Lussier, R.N. and Hendon, J.R., 2017. Human resource management: Functions,
applications, and skill development. Sage publications.
Gupta, J.D., 2018. Functions of Management. In Hospital Administration and Management: A
Comprehensive Guide(pp. 6-15). jaypee.
Osland and et.al., 2015. Organizational behavior. Wiley Encyclopedia of Management, pp.1-5.
Miner, J.B., 2015. Organizational behavior 4: From theory to practice. Routledge.
Lăzăroiu, G., 2015. Work motivation and organizational behavior. Contemporary Readings in
Law and Social Justice. 7(2). pp.66-75.
Tasselli and et.al., 2018. Personality change: implications for organizational
behavior. Academy of Management Annals. 12(2). pp.467-493.
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