Analysis of Sainsbury's Organizational Structure and Performance

This presentation provides an overview of organizational behavior within Sainsbury's, a UK-based supermarket chain, focusing on the relationship between its organizational structure and overall performance. Sainsbury's employs a hierarchical structure, which is evaluated for its strengths and weaknesses, including its impact on employee unity, communication flow, specialization, and potential for internal politics. The presentation also discusses how organizational performance is measured at individual, team, and organizational levels, and how Sainsbury's structure influences employee performance through rules, learning sessions, and teamwork. It suggests improvements like emphasizing employee satisfaction and adopting a more democratic leadership style to enhance both personal and organizational performance. The conclusion emphasizes the critical link between organizational structure and employee behavior in achieving organizational goals. Desklib provides access to similar presentations and study resources for students.

ORGANIZATIONAL
BEHAVIOUR

Table of Contents
 INTRODUCTION
 Organizational structure
 Organizational performance
 Relationship between Organizational structure and Organizational performance
 CONCLUSION
 REFERENCES

INTRODUCTION
 Organizational behaviour narrates how the people interact with one another in an
organization.
 The purpose is to build better and healthy relationships by achieving human objectives,
organizational and social objectives.
 Sainsbury is a chain of supermarkets business in the United Kingdom.
 The company aims to provide high quality services to its customers.
 In this power point presentation the organizational structure of Sainsbury will be evaluated
with a context to its organizational performance

Organizational structure
 It is the way in which various organizational activities are divided among the employees.
 Sainsbury's organizational structure is between tall and hierarchical structure.
 A hierarchical structure refers to the chain of command flowing from upper management
to the executives to the general employees in an organization.
 There are a series of levels of management and employees and each level is responsible for
their own work.

Hierarchical organizational structure
CEO
Employee Employee Employee Employee Employee
Manager
(marketing)
Manager
(production)
Foreman Foreman

Strengths of Sainsbury's organizational
structure:
 All employees are members of a team so it gives them a sense of unity and purpose.
 Hierarchy is simple, so they can get help easily from their seniors or can also go directly to
the management.
 Everyone is working together which makes carrying out joint projects very easily.
 The company enjoys economies of scale because the staff is specialist in their own
departments.
 Channels are defined clearly, so the flow of communication is easier and faster

Weaknesses of Sainsbury's organizational
structure:
 The chain of command is long as it usually consists of seven to eight levels of authorities.
 The employees are specialized in their function only which means their interactions with
other departments is very low.
 The managers are concerned more with their departments which leads to the politics in the
organization.
 The hierarchical organizational structure represents the status. This leads to division in the
company which reflects through the differences in incentives and separate car parking's
between the employees of lower department and employees of upper department.

Organizational performance
 The organizational performances refer to the general profitability and working of an
organization in terms of attainment of its goals and objectives.
 It is needed to be measured to improve effectiveness of the company.
 The organizational performance can be improved through employee engagement and
improved employee performance.

Relationship between Organizational structure
and Organizational performance
 The organizational structure is influenced highly by the performances of its employees at
the organization.
 It shows how the organization impact the employee performance.
 A poor organizational structure will reflect poor performances of the employees and a good
organizational structure will reflect the good working performances of its employees.
 The organizational structure explains how effective the supervisory connectors are in the
organization.
 The organizational structure decides the hierarchy of reporting i.e. how reports to whom in
the organization.
 The flow of information also impacts the working of the organization.

Organizational performance is measured
through different levels of organizational
structure:
 Individual levels: The individual efforts to achieve individual goals are measured here.
 Team level performance:
 The task proficiency is one of the measures to good performances.
 Here the performances are measured by behavioural rating and observation scale (BARS) and
self reporting.
 Organizational level performance:
 Organization can use their strategic planning using internal and external assessments with the
systems of goal and plans and effectiveness of meeting those goals.
 The managers can reflect on the stakeholders regarding their effects on environment, strategic
choices, resources and time period.

Impact of organizational structure of
Sainsbury on its organizational performances:
 The employees are abided by the rules and regulations laid down by the company at
workplace, which provides them a disciplined and better working environment.
 Innovative learning sessions are installed for the employees by defining their work
progresses, which help the company in maintaining effectiveness at workplace.
 The organizational structure of the company is focused on team work and improved
communications, which motivates its employees to perform better.

Methods to improve Organizational
performance of Sainsbury:
 The satisfied employees and improved work performances must have strong correlations
so more emphasis must be given to employee satisfaction.
 The leaders/ management in Sainsbury, uses autocratic style mostly but the employees
prefer democratic style. The company should focus on reducing that gap.
 The employees and management participation must be ensured for better performances.
This will improve their personal and organizational performances.

CONCLUSION
 It can be concluded that the organizational behaviors explains how people communicate at
an organization.
 Sainsbury uses the hierarchical organizational structure that consists of a long line of
authority consisting 9-10 members.
 The organizational performances are influenced by the organizational structure in which
their tasks are divided.
 The organizational structure have strong impact upon the organizational performances of
its employees that are measured on various levels

REFERENCES
 Books and journals:
 Buchanan, D.A. and Huczynski, A.A., 2019. Organizational behaviour. Pearson UK.
 Dedahanov, A.T., Rhee, C. and Yoon, J., 2017. Organizational structure and innovation
performance. Career Development International.
 Murali, S., Poddar, A. and Seema, A., 2017. Employee loyalty, organizational performance &
performance evaluation–a critical survey. IOSR Journal of Business and Management. 19(8).
pp.62-74.
 Nikpour, A., 2017. The impact of organizational culture on organizational performance: The
mediating role of employee’s organizational commitment. International Journal of
Organizational Leadership. 6. pp.65-72.
 Tian, A.Y. and et.al., 2021. Investigating employee and organizational performance in a cross‐
border acquisition—A case of withdrawal behavior. Human Resource Management.
 Online references:
 Sainsbury’s. 2021. [Online]. Avaialble Through:
<https://www.crunchbase.com/organization/sainsburys-supermarkets-ltd>. [Accessed on 27 july
2021]