Assignment Help on Building Quality Organization
Woolworths Ltd is the leading retail outlet and an outright household name in Australia and New Zealand. It is also the largest and extensive retail company in both countries based on sales volume and market capitalization. Founded in December 1924 with a nominal capital of a paltry $ 25,000, the company has continued to register a steady growth and strategic expansions over the years. This has seen the organization expand its retail outlets and exert its presence across the two countries. The company specializes majorly on takeaway liquor, hotel operation, food and grocery retails, gaming poker operation, and retailing on various household products. The massive expansion has seen the organization operate with approximately 195,000 employees within its ranks (Woolworthslimited.com.au). Avail Best Assignment Service without spending too much money for your Quality Organization Assignment Help
An organization is an entity that provides a common podium for individual employees to work for a common goal. Each organization usually has its own unique ways of working as entrenched in its structure and culture. An organizational structure is a form of departmentalization that provides the framework through which decision-making process takes place. It provides a framework around which a group of employees is organized, while also providing the foundations that maintain the coalition operational (Schultz, J. Berkowitz, B. and Loewenstein, M., 2013). It also highlights the ordinary reporting relationship and the chain of command. As such, Woolworths group has effectively embraced the use of functional departmentalization to achieve its goals.
There are three main elements that are always inherent in the basic ideas of an organizational structure. These elements include:
Formalization: This refers to the degree to which jobs existing within the organization are standardized and the extent to which employee behavior is majorly guided by rules and procedures (Gardea, 2005). Formalization within Woolworths is fostered through high level of division of labor. This has been reinforced by the high degree of delegation of authority, specialization, departmentalization and span of control. Through formalization the organization is able to:
- Reduce its operating costs
- Standardized activities lower the variability, conflict and ambiguity in the organization
- Reduces discretion as decisions made on the basis of standard rules and procedures
- Fosters coordination as all activities are defined and specified.
Complexity: This refers to the difference that exists between jobs and functional units. It highlights the extent of differentiation that exists within the organization. A variety of jobs and functional units create more complexity within the organization and its management may be difficult. Complexity of activities within the organization usually results in three types of differentiation namely spatial differentiation, vertical differentiation and horizontal differentiation.
Centralization and decentralization: This is mainly pegged on the decision-making process and the level at which they are made. Centralization is where top echelons make all the decisions concerning the organization and middle and lower level employees simply implement them. On the other hand, decentralization is where decision making is delegated and are made at all levels of the organization. The Woolworths’ functional structure allows for decentralization of decision-making process to the functional and geographical units, while still remaining responsible for the top management (Peoplelearn.homestead.com).
Other elements of organizational structure include:
Work specialization: This element highlights the extent to which standardized tasks in an organization are distributed into separate jobs that can be done by a group. The tasks are broken down into steps, which are then completed by different specialized people.
Departmentalization: It provides the basis by which jobs are grouped together into common tasks that can be coordinated. There are generally five common forms of departmentalization such as functional, product, geographical, process, and customer departmentalization. Woolworths group’s chosen functional departmentalization has proved effective in delivering its set objectives.
Chain of command: This is the unbroken line of authority that extends from the top level of the organization to the bottom level and stipulates the reporting relationship between them. Attached to this theory are three complimentary concepts:
Authority: The rights bestowed in a managerial position to give orders and expect them to be obeyed by others.
Unity of command: It highlights the reporting relationship that exists within the organization. The principle of unity of command stipulates that a person should only have one superior to whom he or she reports or answerable to.
Responsibility: This is the obligation that requires each individual within the organization to perform the assigned duties.
Span of control: This element lay down the number of employees one manager can efficiently and effectively manage. Span of control can either be narrow or wider span depending on the manager and the organizational behavior. In general, the principle of span of control determines the number of levels and managers the organization has (Gardea, 2005).
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