Structures, Cultures and the efficiency of the working environment

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BUSINESS AND PROJECT MANAGEMENT

Structures, Cultures and theefcienc !" the #!r$in%

en&ir!n'entA re(!rt "!r

Da&id Underhill

B

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Table of Contents

1 Introduction..................................................................................................................................... 2

2 Organisational Structures...............................................................................................................2

2.1 Introduction to case study business.......................................................................................2

2.2 Traditional (Hierarchical) Structure.........................................................................................3

2.3 ltra I!"s Traditional Structure...............................................................................................4

2.4 #lternati$e structures.............................................................................................................%

3 &ission and 'ulture........................................................................................................................

3.1 Organisational 'ulture...........................................................................................................

3.2 ltra I!"s &ission.................................................................................................................10

4 Teas and *or+ing ,elationshi-s................................................................................................11

% eadershi-....................................................................................................................................12

'onclusions..................................................................................................................................14

ibliogra-hy..................................................................................................................................1

Structures 'ultures and the eiciency o the or+ing en$ironentusiness and ro5ect &anageent ,e-ort by #ndre Hobbs 6 7ear 1 6 H8' 9ngineering (9lectronic

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1 Introduction

This re(!rt is *ein% #ritten t! in&esti%ate the &ari!us as(ects !" lar%e

!r%anisati!ns and c!'(anies that a+ect the efcienc and (r!ducti&it in the

#!r$in% en&ir!n'ent B analsin% each (r!(ert !" a case stud *usiness, this

re(!rt #ill assess #hat 'a$es the c!'(an '!re efcient and alternati&el,

#hat ha'(ers the c!'(an-s %r!#th In (articular, this re(!rt #ill l!!$ int! "!ur

'ain as(ects !" a c!'(rehensi&e c!'(an-s .s$elet!n/ and see h!# the

c!'(are t! a (articular case stud *e"!re c!nsiderin% the ad&anta%es and

disad&anta%es !" each as(ect 0irstl, this re(!rt #ill l!!$ int! di+erent t(es !"

!r%anisati!nal structures, the hierarch !" (!#er and res(!nsi*ilit and h!#

these 'i%ht a+ect a c!'(an-s 1nancial, s!cial and c!''ercial (er"!r'ance

The re(!rt #ill als! in&esti%ate the cultural, re%i!nal and s!cial as(ects !" thecase stud *usiness, includin% the &alues, ethics and 'issi!n state'ents !" the

c!'(an, and then e2a'ine the e+ects these as(ects ha&e !n the *usiness

0urther'!re, the re(!rt shall e2(l!re the e+ects !" the in3h!use en&ir!n'ent and

the i'(!rtance !" %!!d #!r$in% relati!nshi(s and h!# that a+ects indi&idual

sta+ 'e'*ers and the tea's in a %eneric #a and als! in the case stud

*usiness 0inall, this re(!rt #ill e2a'ine di+erent leadershi( stles and

re"erence se&eral di+erent the!ries (recludin% t! such *e"!re analsin% the

e+ect that these leadershi( stles 'i%ht ha&e !n an !rth!d!2 c!'(an

The case stud su*4ect thr!u%h!ut this re(!rt #ill *e Ultra Electr!nics ID A s'all

c!'(an *ased in 5e'!uth that is (art !" the lar%er Ultra Electr!nics P6C

"a'il

2 Organisational Structures

2.1 Introduction to case study business


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Ultra Electr!nics ID is a sec!ndar sect!r *usiness #!r$in% #ithin the Ultra

Electr!nics %r!u( It is a relati&el s'all *usiness #ithin the %r!u( #ith

a((r!2i'atel 788 e'(l!ees #!rld#ide and !(erates in the securit industr

desi%nin% and 'anu"acturin% securit card (rinters al!n% #ith (r!&idin% !ther

securit ser&ices Ultra ID !(erates #ith a )ierarchical 9traditi!nal: structure

e&en th!u%h it is such a s'all si;e This is *ecause !" its (art in the Ultra

.0a'il/ The CEO and B!ard !" Direct!rs sit at the t!( !" the structure "!r each

and e&er c!'(an in the Ultra %r!u( The ne2t tier d!#n is the Di&isi!nal

direct!rs This is si'(l due t! Ultra %r!u(-s !&erall structure Ultra %r!u(

c!ntains a((r!2i'atel Mar$etin%, Purchasin%

and Technical Su((!rt Ultra ID-s structure #ithin Ultra %r!u( can *e seen *el!#

in 0i%ure 7


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2.2 Traditional (Hierarchical) Structure

N!r'all, a hierarchical structure (r!&ides the '!st de1ned, tier3*ased

!r%anisati!nal structure #hich all!#s "!r clear lines !" c!''unicati!n and

!*&i!us career (r!%ressi!n (aths Clear lines !" c!''unicati!n are i'(!rtant

#ithin a c!'(an "!r se&eral reas!ns 0irstl, the (r!&ide a s!lid #el"are and

health > sa"et res(!nsi*ilit chain 5hen (r!*le's !ccur, it is clear t!

e'(l!ees #h! the can %! t! !r, i" the #ish t! ta$e it "urther, #h! the ne2t

le&el !" res(!nsi*ilit lies #ith It als! hel(s t! de1ne (r!4ect structure, IE #h!

the (r!4ect 'ana%er is, #hich tea's are in&!l&ed and #h! the res(ecti&e leaders

!" th!se tea's are Career (r!%ressi!n is an i'(!rtant ele'ent in an health

en%ineerin% tea' Alth!u%h this is 'ainl rele&ant in 'ediu'3lar%e c!'(anies,

all en%ineers 9and (e!(le "!r that 'atter: #!r$ '!re efcientl #hen #!r$in%

t!#ards a %!al T! '!st (e!(le that %!al is n!t (ri'aril their c!'(an-s success

*ut rather their !#n success 5hether ri%ht !r #r!n%, success is %enerall

'easured * inc!'e and res(!nsi*ilit s! naturall, $ee(in% clear lines !"

(r!%ressi!n !(en #ithin a c!'(an sti'ulates *etter #!r$in% efcienc "r!' all

'e'*ers !" the tea' as the are #!r$in% t! *etter the'sel&es as #ell as the

c!'(an


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:igure.1 ltra 9lectronics :aily Structure (ltra 9lectronics 2014)


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S! this structure all!#s "!r the *est ."!r'al/ c!''unicati!n 'atri2, !utlines

#hich tas$s are *ein% carried !ut * #hich tea', sti'ulates c!''unicati!n lines

in the ri%ht directi!ns and clearl de1nes and illustrates #hat e'(l!ees can

achie&e and #here the c!uld (r!%ress t! !n their career (ath This structure is

n!r'all seen in 'ediu' 3 lar%e c!'(anies as (articularl s'all c!'(anies #ill

stru%%le t! "!r' such structure #hile the ha&e such a l!# nu'*er !"

e'(l!ees


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The disad&anta%es !" a hierarchical structure are three "!ld= Sl!# s(eed !"

c!''unicati!n, alienati!n *et#een 'ana%ers and tea' 'e'*ers, and #asted

ti'e s(ent !n e2tra le&els !" c!''unicati!n A structure li$e this tends t! (ut

di&isi!nalre%i!nal 'ana%ers in %!!d c!ntact #ith the *!ard and CEO and the

technical 'ana%ers in %!!d c!ntact #ith the tea' 'e'*ers actuall #!r$in% !n

the c!'(an-s (r!4ects *ut e2cludes c!''unicati!n, !r e&en c!ntact, *et#een

the t#! e2tre'es This 'eans t!( d!#n c!''unicati!ns 9and !"ten c!'(an

strate% and 'issi!n: are 1ltered thr!u%h the le&els sl!#l and dis4!intedl This

can lead t! a reduced tea' s(irit and lac$ !" %!als !n the !(erati!nal le&el

#here it reall 'atters In an atte'(t t! c!unteract c!''unicati!n (r!*le's,

direct!rs and re%i!nal 'ana%ers !"ten !&er3c!'(ensate * schedulin% 'eetin%s

t! include as 'an (e!(le as (!ssi*le "!r !(erati!nal ann!unce'ents !r strate%

chan%es This can lead t! a l!t !" ti'e s(ent in 'eetin%s and n!t a l!t !" ti'e

actuall desi%nin% (r!ducts and achie&in% the %!als that direct!rs are s! $een t!

c!''unicate t! the tea' 'e'*ers

2.3 Ultra I!s Traditional Structure

As (re&i!usl stated, Ultra ID has a )ierarchical structure as it is a 'ediu' si;ed

c!'(an *ac$ed u( * a &er lar%e %l!*al "a'il, Ultra Electr!nics Ultra ID

su+ers "r!' 'an !" the disad&anta%es descri*ed a*!&e includin% *rea$d!#n !"

c!''unicati!ns and c!''unicati!n s(eed This is e2acer*ated * the t!(

."a'il/ structure !" the c!'(an as direct!rs and re%i!nal 'ana%ers are

res(!nsi*le "!r 'an Ultra c!'(anies and there"!re are n!t l!cated l!call This

creates a ri"t *et#een the en%ineers desi%nin% the (r!ducts and the direct!rs

creatin% the strate%ies Alth!u%h hierarchical structures n!r'all (r!&ide clear

lines !" career (r!%ressi!n, in Ultra IDs case, there is actuall an issue !" lac$in%

career (r!%ressi!n (aths This is (artl d!#n t! the s(littin% !" Ultra .Di&isi!nal/

and l!cal Ultra ID en%ineerin% *ut als! due t! the nature !" Ultra-s *usiness and

the (r!ducts the desi%n The desi%n #!r$ Ultra carries !ut s(lits their alread

s'all en%ineerin% de(art'ent 9!" a*!ut 8 en%ineers: int! s'aller tea's

9)ard#are, S!"t#are, Mechanical, A((licati!ns, Technical Su((!rt, and Pr!cess

Mana%e'ent: Each tea' is %enerall 'ade u( !" 3 'e'*ers and a tea'

leader


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This naturall li'its career (r!%ressi!n t! !nl #hen a tea' leader lea&es !r is

(r!'!ted int! 'ana%e'ent This has a ne%ati&e e+ect !n the !&erall

de(art'ent '!ral and dri&e "!r hi%her efcienc as it re'!&es an .i''ediate/

%!al(!sts inde1nitel

2." #lternati$e structures

The '!st #idel acce(ted alternati&e !r%anisati!nal structures are the 0lat

structure and the Matri2 structure

0lat !r%anisati!nal structures are %enerall "!und in s'aller c!'(anies, !r

c!'(anies that ha&e %r!#n ra(idl #ith!ut ti'e t! !r%anise a 'iddle

'ana%e'ent and strea'line (r!ducti!n (r!cesses A at !r%anisati!nal

structure is n!r'all 'ade u( !" 4ust !ne !r t#! e2ecuti&es and a hi%hl trained

!(erati!nal tea' The ad&anta%es !" a at !r%anisati!nal structure is that the

!(erati!nal tea' ha&e the !((!rtunities t! 'ana%e the'sel&es and are directl

in&!l&ed in the decisi!n 'a$in% (r!cess This is %!!d "!r (r!ducti&it as the sta+

#ith s(ecialised $n!#led%e and e2(erience are (erha(s the *est eFui((ed t!

'a$e 1nancial and *usiness decisi!ns A at structure als! all!#s "!r "ast

c!''unicati!n !# as there is n! 1lterin% d!#n "r!' the t!( thr!u%h e2ecuti&es

and 'iddle 'ana%e'ent in "!r'al dra#n !ut 'eetin%s All the !(erati!nal sta+

are directl in&!l&ed #ith the entire *usiness ha((enin%s and can c!''unicate

instantl and 'a$e the ne2t decisi!n The (!tential disad&anta%es !" a at

structure are the lac$ !" c!ntr!l that is n!r'all e2erted * 'iddle 'ana%e'ent

The sta+ !n the %r!und le&el trin% t! %et the #!r$ d!ne can *ec!'e !&erl!aded

#ith hi%h end *usiness and (r!4ect 'ana%e'ent tas$s lea&in% the' n!t en!u%h

ti'e t! c!'(lete da t! da !(erati!ns

Matri2 structured !r%anisati!ns ha&e !(erati!nal sta+ #!r$in% as (art !" '!re

than !ne tea' It is n!r'all an e2(ansi!n !n traditi!nal structure #ith the

additi!n !" (r!4ect tea's, #hich *rin% t!%ether 'e'*ers !" di+erent disci(lines

t! #!r$ !n a (articular (r!duct !r (r!4ect al!n%side their n!r'al duties This can

!"ten lead t! each tea' 'e'*er ha&in% '!re than !ne 'ana%er and (!tentiall

chan%in% (r!4ect tea's and 'ana%ers e&er s! !"ten


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This all!#s "!r uidit in a *usiness #hich sti'ulates e2cellent c!''unicati!n

!# and all!#s each 'e'*er !" sta+ t! utilise their s$ills in 'ulti(le areas rather

than *ein% .*!2ed/ t! a (articular 4!* N!t !nl d!es this hel( the c!'(an, "r!'

the access t! a lar%er ran%e !" s$ills, *ut it als! increases 4!* satis"acti!n "!r

(!tentiall e&er 'e'*er !" the tea' #hich increases '!rale and there"!re

(r!ducti&it This inter3'i2in% als! enc!ura%es the sharin% !" ideas and res!urces

*et#een de(art'ents leadin% t! '!re inn!&ati!n and a *etter #!r$ ethic #ith

each 'e'*er !" the tea' ha&in% a %reater understandin% and a((reciati!n !"

hisher c!llea%ues disci(line and dail challen%es A "urther ad&anta%e !" a

Matri2 !r%anisati!nal structure is the ti'e 9and there"!re '!ne: sa&ed #ith the

a*sence !" e2cessi&e tea' and (r!4ect 'eetin%s The increased inter3'i2in%,

di&ersit and c!''unicati!n 'eans there is n! need "!r as 'an (r!4ect

'eetin%s *et#een tea's !r disci(lines The !*&i!us disad&anta%es !" the

'atri2 structure are the c!'(le2ities !" 'i2in% these tea's t!%ether and

c!!rdinatin% the ti'e s(ent "!r each 'e'*er *et#een se(arate tas$s !r

(r!4ects Ju%%lin% se(arate (r!4ects and (r!4ect 'ana%ers can lead t! tea'

'e'*ers c!'in% under hea& #!r$l!ads and ha&in% t! !&erl 'icr!3'ana%e

the'sel&es t! !r%anise their ti'e e+ecti&el #hich ir!nicall leads t! less ti'e t!

c!'(lete their "uncti!nal #!r$ 9Reill, 87:

3 %ission and Culture

3.1 Organisational Culture

The !r%anisati!nal culture !" a c!'(an is re(resented * the *eha&i!urs !" the

sta+ #!r$in% there and the reas!ns *ehind these, !"ten re(etiti&e, *eha&i!urs

The #!rd .Culture/ !"ten c!&ers a c!'(an-s 'issi!n, ha*its, &alues,

c!''unicati!n sste', and strate%

Ra&asi and Schult; 988: stated that .!r%anisati!nal culture is a set !" shared

'ental assu'(ti!ns that %uide inter(retati!n and acti!n in !r%anisati!ns *de1nin% a((r!(riate *eha&i!ur "!r &ari!us situati!ns/

The culture !" Ultra Electr!nics is under(inned * three 'ain c!'(!nents=

C!''unicati!n? Guidin% Beha&i!urs? and the (hsical #!r$in% en&ir!n'ent


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Structures, Cultures and the efficiency of the working environment

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