Vitaherb: Organizational Design for Resource Management and Growth

This report analyzes the business of Vitaherb, an Australian company manufacturing natural medical products, focusing on its organizational structure and resource management. The company aims to expand its operations, requiring increased sales, production, and staff support. Key resources include physical and human resources, as well as capital. The report examines the company's functional organizational structure, with each department headed by a senior management executive, and the role of the CEO and board of directors in decision-making. It also explores the importance of employee training and recruitment based on skills. The report highlights the use of budgeting for expense and revenue forecasting, and the role of senior managers and supervisors in controlling operations. In conclusion, the report emphasizes the need for Vitaherb to enhance its scale of operations and manage both physical and human capital to achieve its goals, and the role of organizational structure in supporting these objectives.

Running head: UNDERSTANDING CONTEMPORARY ORGANIZATION
Understanding Contemporary Organization
Name of the Student:
Name of the University:
Author’s Note:

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Introduction
The main purpose of the assessment is to analyze the business of Vitaherb which is
engaged in the manufacture of natural medical products and it is regarded as one the leading
companies which is engaged in Australia. The business offers a variety of products to the
customers such as minerals, vitamins, body care products which are of the highest quality. The
management of the company is trying to improve the organizational structure of the business and
thereby also enhance the earning capacity of the business.
Discussion
The management of the company is planning to expand the operations of the business
which also means that the process of sales and production would also be increasing. In addition
to this, the management of the company would also be requiring staff support for the purpose of
meeting the demand and profits of the business (Sirigiri 2018). The management of the company
would be requiring appropriate resources for expanding the operations of the business and
meeting the international demand for the product.
Key Resources
The management of the company would be needing to expand the scale of operations of
the business in order to meet the demand of the organization. The resources which the business
would be requiring are physical resources and human resources for the purpose of meeting the
demand and expectations (Moran 2014). The management of the company would be requiring
appropriate capital as well for the purpose of financing the activities of the business.
Physical Resources

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UNDERSTANDING CONTEMPORARY ORGANIZATION
The physical resources of the business are considered to be important aspects and they
directly contribute to the production process of the business. The physical resources which would
be required by the management of the company needs to be appropriate. As the business model
of the company is to follow a low-cost model, the management of the company appropriately
wants to reduce the costs of operations (Jones and Jones 2013). The products which is being
considered by the management of the company is medical in nature and therefore would be
requiring appropriate material for the same.
Human Resources
The management of the company would be requiring human resources as well for
supporting the operations of the business. As per current estimates, the management of the
company has currently employed around 1000 staff members but the same would be required to
increase in order to meet the current for the product and also for the purpose of supporting the
extra production process.
The management of the company need to train the employee of the business within the
employee training program so that skills can be developed of the employees of the business. The
management of the company needs to select employees for the purpose of recruitment on the
basis of the skills of the employees of the business (Wiewiora et al. 2013). The recruitment of the
employee of the business would be done by the human resources management. The management
of the company needs to focus on quality of the products which is being offered by the business
in order to ensure that the customers are satisfied with the products of the business (Chance
2013). The products which is offered by the business are appropriate for which the management
of the company would also be requiring appropriate capital.

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Process of Organization needs
The management of the company has decided to follow a Functional system of
organizational management so that appropriate leadership is in place in the management of the
company. In this structure which is followed by the management of the company, each
department is headed by a senior management executive and all the major decisions are
implemented by such senior executive after consulting the CEO and board of directors of the
business. Every employee would be working together in a group which would be headed by a
supervisor. This organizational structure would help the management of the company to take
appropriate decisions and would ensure there is a unity of direction and command in the
business. In addition to this, the management of the company following functional organizational
structure would be able to ensure that there is specialization in each area of operations of the
business. This would enhance the efficiency of the business as well as contribute to better
management system for the business. All the major decisions would be taken by the CEO of the
business and the same needs to be implemented in the business.

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Chief Executive Officer
Financial
Manager Technical Manager Human Resource
Manager
Administration
manager
Senior Manager Senior Manager Senior Manager Senior Manager
Staff Staff Staff Staff
Staff Staff Staff Staff
Staff Staff Staff Staff
The above figure shows the organization would be following the functional model for
managing the operations of the business (Daft 2015). The model would ensure that effective
communication is maintained in the business as each head of operations would be handling their
own tasks in pursuance of the common goals and objectives of the business.
The management of the company can apply budgeting process for effectively forecasting all
the expenses and revenue which can be generated by the business and also for planning different
activities of the business. The budgets which is prepared by the management of the company can

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UNDERSTANDING CONTEMPORARY ORGANIZATION
be used for the purpose of controlling the operations of the business. The management of the
Vitaherb can effectively follow cost reduction model with the help of budgeting techniques.
The resources and processes would be managed by the senior managers who would be
following the budgets which is formulated by the management of the company for the purpose of
controlling the operational process of the business. The senior managers would be appointing a
supervisor for each department who would be given the responsibility of communicating with
the staff members and would be acting as a bridge between the staff members and the
management. It is also to be that the supervisor would also be communicating all the decisions of
the senior management to the staff members in order to ensure that there is a perfect flow of
command in the business.
Conclusion
The above discussion effectively shows that the business of Vitaherb is planning to
expand the operations of the business. The management would be required to enhance the scale
of operations and would also be requiring both physical and human capital for the purpose of
attaining its goals. The analysis shows the organizational structure which would be followed by
the management of the company in pursuance of the goals of the business. The assessment would
also be considering the new processes and resources which would be required by the business.

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Reference
Chance, P., 2013. Introduction to educational leadership & organizational behavior. Routledge.
Daft, R.L., 2015. Organization theory and design. Cengage learning.
Jones, G.R. and Jones, G.R., 2013. Organizational theory, design, and change. Upper Saddle
River, NJ: Pearson.
Moran, D.A., 2014. Organizational culture and generation cohorts: A comparative analysis
between a public and private organization. The University of Texas-Pan American.
Sirigiri, A., 2018, June. Start-up to Scale-up: Role of Organizational Structure. In Academy of
Management Proceedings (Vol. 2018, No. 1, p. 17914). Briarcliff Manor, NY 10510: Academy
of Management.
Wiewiora, A., Trigunarsyah, B., Murphy, G. and Coffey, V., 2013. Organizational culture and
willingness to share knowledge: A competing values perspective in Australian
context. International Journal of Project Management, 31(8), pp.1163-1174.