Report: Analysis of Wesfarmers' Organizational Structure and Ethics

This report provides a comprehensive analysis of Wesfarmers, an Australian conglomerate, examining its organizational structure, ethical practices, and core values. The study begins with an executive summary and introduction, outlining the research methodology, which employs a descriptive research design and positivism research philosophy, utilizing secondary data collection. The report then delves into Wesfarmers' vision, values, and organizational theory, exploring its cultural system metaphor and the application of various organizational theories such as division of labour, modernization, and bureaucracy. The analysis highlights Wesfarmers' commitment to ethical practices and diversity, discussing challenges like unethical practices and the company's efforts to address them through policies and audits. The report concludes by summarizing the key findings, emphasizing the impact of organizational structure on business processes and the importance of strong managerial practices in maintaining a successful corporate environment. The report also discusses the implications of these findings for future career development and organizational improvement within Wesfarmers.

Running head: BUSINESS PERSPECTIVES
BUSINESS PERSPECTIVES
Name of the student
Name of the university
Author note

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Executive Summary
In this study it has been identified that mixed organizational is being followed in Wesfarmers.
Understanding the problem solving ability of the organizations, it is very important to develop an
organizational framework. Analysing the structural system in Wesfermers, it has been identified
that the company mostly follows the strong structural system, where the managers play an
important role for providing the safety and security to the individuals in the workplace.
Analysing the organizational structure and governance of the company, I can say that due to
proper management function, Wesfermers can be able to maintain its growth consistency in the
competitive business environment.

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Table of contents
§ Executive Summary......................................................................................................................1
§ Introduction...................................................................................................................................3
§ Research Methodology.................................................................................................................3
§ Vision and Values of the Organisation.........................................................................................4
§ Organisational Theory..................................................................................................................5
§ Ethics and Diversity......................................................................................................................7
§ Conclusion....................................................................................................................................8
Reference list and bibliography.......................................................................................................9

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§ Introduction
In order to identify the structural pattern and problem solving abilities of an organization,
the effective implications of organizational theories are important (Alvesson & Sveningsson,
2015). Understanding the theoretical implications in the workplace, rate of profitability can be
maximized. By continuing this it can be said that ethical practices, the organizational values can
be analysed. The purpose of this study to develop an effective organizational framework based
on the politics, dynamics of business environment and organizational behaviour. The study is to
shed light on the managerial functions in Wesfarmers and the implications strategies for bringing
the changes in the workplace. By critically examining the ethical practices in the organization,
social environment of the company has been analysed.
Wesfarmers Limited is the Australian conglomerate, which was introduced in the year
2914 with the retail, fertilisers, industrial safety and coal mining products. The company was
developed for cooperating the Australian farmers. With the diversified portfolio, the company
has established its strong image in the market. In the year 2017, the net income of the company
reached a$2.87 billion (Wesfarmers.com.au, 2019). By contributing in different business
operations, Wesfermers has brought various business improvements in its managerial operations.
I have done my internship as the marketing executive in the company. Understanding the
business operations as well as its popularity in the market, I want develop my career graph by
being an active part in this organization in future.
§ Research Methodology
In order to conduct the research, descriptive research design will be followed. Using the
descriptive research design, it will be easier for understanding the interrelationship between

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managerial activities and the organizational behaviour. In order to conduct the research,
positivism research philosophy will be chosen. By choosing the positivism research philosophy,
it will be easier for reaching at the knowledge based scientific approach. Hence, it can be said
that using the positivism research philosophy, it will be easier for me to do the situational
analysis, in proper manner. In order to develop the research framework, secondary data
collection method will be chosen. Using the qualitative data analysis method, the information
will described. In order to collect the secondary information, different case study based on the
organizational behaviour and managerial initiatives will be reviewed.
§ Vision and Values of the Organisation
In the eight Metaphors of organization, Gereth Morgan introduced the metaphors such as
machine, Organism, Brains, Cultural system, political systems, psychic prisons and instruments
of domination (Driskill, 2018). Analysing the vision of the company it has been identified that
Wesfermers wants to deliver the satisfactory return to the stakeholders. By continuing this it can
be said that based on the analysis of the company culture, it cannot be denied that the company
aims to introduce an effective business practice in which the core values such as integrity,
openness, accountability and boldness can be maintained (Miner, 2015). This can be said that it
follows the cultural system metaphor among the Gereth Morgan eight Metaphors (Morgan,
2016). Analysing the value of Wesfarmers, it has been identified that the company has focused
on strengthening its existing business through satisfying the customer needs and operating
excellence. By continuing this, it can be said that Wesfermers also aims to secure its growth
opportunities by introducing the entrepreneurial initiatives (Wesfarmers.com.au, 2019). In order
to achieve the primary vision, Wesfarmers focus on delivering the standard management and
financial discipline so that diversified business portfolio can be properly maintained. Therefore,

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the values of Wesfarmers has followed the brains metaphors as the values of the company has
not only focused on improving the customer satisfaction but also it aims to improve its business
operations so that the company can gain benefits.
Analysing the corporate and governance culture in Wesfarmers, it has been identified that
the company has develop a successful corporate governance arrangements. The management
operations in the organization are being done day by day basis. By following the autonomous
business operations, the company focuses on reinforcing its group culture in the workplace
(Wesfarmers.com.au, 2019). In order to run the business, the company provide freedom to the
individuals. Therefore, this can be said that the corporate culture in Wesfarmers has been
developed based on the in individuals’ contribution in the decision making process. Analysing
the corporate culture in this company, it can be said that Wesfarmers corporate culture follow the
cultural systems metaphor. As here the company tries to maintain the proper culture by involving
the individuals in decision making process.
§ Organisational Theory
In the words of Nilsen (2015), depending on different approaches followed by the
organizations, the organizational theories are being developed. By continuing this it can be said
that based on the rational system perspectives, contingency theory, division of labour and
bureaucratic theory have been developed. Organizational approaches are being considered as the
social unit in which the people are being structured as the important part of the company.
Wesfarmers commits to maintain the supportive and understanding organizational behaviour in
the workplace (Wesfarmers.com.au, 2019). In case of division of labour theory, the tole of the
labour has been highlighted. In order to increase the trade output, the contribution of labour class
cannot be denied. As per the theory, the labour efficiency is being measured based on the

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occupational specialization, machines against the human labour and the avoiding the changes. In
case of bringing technological improvement without compromising with the rate of productivity,
the role of division labour is very important. In case of modernization theory, the cessation of
traditional methods for pursuing the contemporary effective method of organization is being
highlighted. In such cases, the main motive of the organization is to maximize the rate of
profitability. Based on the rational system perspective, based on the two significant part such as
formalization and specific goal, the specific task is being done. In such cases the workforce is
being divided between manager and the labour (Daniel, 2018). As per the organizational
practices the incentive structure is being considered as the effective motivational process. In this
types of management practices, time is being strictly followed for maintaining the performance
standard. Based on the organizational practices, Weber developed the bureaucracy theory. As per
this theory, management efficiency has been developed based on the specialization and training
process. In order to sustain in the modern business environment, the management rules are being
developed based on the written process. In order to maintain the strong organizational culture
and satisfactory business performance, the legal policies are being implemented in strict manner
(Eisenhardt & Bhatia, 2017). By following the strong office hierarchy, the ethical practices are
being maintained in the workplace.
In case of Wesfarmers, mixed organizational practices are being highlighted. Analysing
the structural system in Wesfermers, it has been identified that the company mostly follows the
strong structural system, where the managers play an important role for providing the safety and
security to the individuals in the workplace (Thewest.com.au, 2018). Therefore, by maintaining
the strong business hierarchy, the company follows bureaucracy. Wesfarmers has made the
strong commitment towards ensuring the board composition. Based on the mixed experience,

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skills and diversity, the decision making process in the organization gets influenced. In order to
describe the combination skills in the workplace, the Board Skills matrix has been introduced for
highlighting the arguments between the external advisors and the management team. Based on
the judgemental views from the directors, development of corporate governance standards are
being maintained (Sustainability.wesfarmers.com.au, 2018). By continuing this, it can be said
that in case of determining the criteria of achievement, the major responsibility of the board and
the management is to effectively approve the strategic direction and guide as well as monitor the
business operations of the company. Therefore, modernization theory is being implemented in
the organizational hierarchy. In order to avoid the risk of the company, the annual basis
framework is being developed. However, the organizational behaviour of Wesfarmers, it has
been identified that the company has developed various strategies in case of dealing with the
behavioural challenges (Taksa & Groutsis, 2017). It is true that based on the analysis, the
company need to focus on managing its organizational behaviour so that the commitment
towards employment standard can be properly maintained.
§ Ethics and Diversity
Wesfarmers is committed towards delivering thee satisfactory returns to the stakeholders
by maintaining the exceptional management and financial discipline. Due to its diversified
business portfolio, the company has developed its business model based on the core values.
Diversity is being considered as the important part in Wesfarmers management
(Sustainability.wesfarmers.com.au, 2019). In case of Wesfarmers diversity has become the
sensitive issue that has strong impact on the managerial performance in the managerial
performance of the company. Analysing the unethical practices in Wesfarmers, it has been
identified that forced labour, unauthorised subcontracting and bribery have become the common

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challenges in the company. After the completion of the audit in near about 3888 factories in all
over the world, it has been identified that retailers face huge pressure due to the high ethical
scandals in the company, which has also impacted on the food supply chain of the company. By
continuing this, it can be said that due to excessive demand for the labours in all over the world,
the labour crisis situation has driven the organization for involving in such unethical practices
(Quik, 2016). On the other hand, it cannot be denied that in case of ensuring the employment
standard in the workplace, Group wide ethical sourcing policy has been developed by the
company by following the minimum standard of expectation (Campbell, 2017). In order to
improve the supply chain policy and avoid the current challenges the company has focused on
managing the current challenges. By continuing this, it can be said that the company aims to
develop the diversified internal policy so that the gender balance can be properly developed in
the organization. In order to represent the indigenous popular to the world in proper manner,
implementing the diversity policy the company has extended values of individuals. In the
sustainability report, the company has assured its commitment towards the diversified
organizational culture. Total numbers of 4003 audits have been arranged by the company for
assuring if the human rights standards are properly being implemented or not
(Wesfarmers.com.au, 2019). In order to maintain the diversified culture ion the workplace, 5228
numbers of indigenous employees have been appointed by Wesfermers. Wesfermers believes
that diversity can help the company to satisfy the needs of all types of customers. On the other
hand, it is true that by implementing the LGBTI strategy in the workplace, the company has tried
to shed light in case of ensuring community engagement towards the development process
(Sustainability.wesfarmers.com.au, 2019).

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§ Conclusion
In this study, it can be concluded that the organizational structure brings strong impact in
the trade process. Analysing the organizational culture and structure of the company it has been
identified that the company has identified strong managerial practices. By following the strong
management practices the company aims to provide satisfactory performance in the global
market. However, in the analysis, it has also been identified that due to unethical practices in the
workplace, the negative impact on organizational culture has driven the dissatisfaction among
employees. In order to deal with the situation, the company has adopted the ethical policies so
that the situation can be easily handled. As per my understanding, the community engagement
policy which has been adopted by the company can bring the strong impact in its ethical and
diversity practices. On the other hand, analysing the organizational structure and governance of
the company, I can say that due to proper management function, Wesfermers can be able to
maintain its growth consistency in the competitive business environment.

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Reference list and bibliography
Alvesson, M., & Sveningsson, S. (2015). Changing organizational culture: Cultural change
work in progress. Routledge.
Campbell, J. (2017). Insights from the company monitor: Wesfarmers. Equity, 31(8), 16.
Daniel, E. C. (2018). Exploring the Tensions in Organizational Theories. European Scientific
Journal, ESJ, 14(10), 373.
Driskill, G. W. (2018). Organizational culture in action: A cultural analysis workbook.
Routledge.
Eisenhardt, K. M., & Bhatia, M. M. (2017). Organizational complexity and computation. The
Blackwell companion to organizations, 442-466.
Miner, J. B. (2015). Organizational behavior 1: Essential theories of motivation and leadership.
Routledge.
Morgan, G. (2016). Commentary: Beyond Morgan’s eight metaphors. Human relations, 69(4),
1029-1042.
Nilsen, P. (2015). Making sense of implementation theories, models and
frameworks. Implementation science, 10(1), 53.
Quik, A. (2016). Examination of the moderating effect of country cultural dimensions on the
relation between board gender diversity and firm financial performance.

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Sustainability.wesfarmers.com.au (2019). Retrieved from:
https://sustainability.wesfarmers.com.au/our-principles/people/diversity/ [Accessed on
30th March, 2019]
Taksa, L., & Groutsis, D. (2017). Swings and Roundabouts: Reconsidering Equal Employment
Opportunity, Affirmative Action and Diversity Management in Australia from a
Historical Perspective. In Management and Diversity: Thematic Approaches (pp. 255-
282). Emerald Publishing Limited.
Thewest.com.au (2019). Retrieved from: https://thewest.com.au/business/finance/ethical-focus-
for-wesfarmers-ng-ya-130887 [Accessed on 30th March, 2019]
Wesfarmers.com.au (2019). Retrieved from: https://www.wesfarmers.com.au/ [Accessed on 30th
March, 2019]
Winnubst, J. (2017). Organizational structure, social support, and burnout. In Professional
burnout (pp. 151-162). Routledge.