In the extreme competitive business environment, managers have to play a significant role for achieving all the aims and objectives. Effective utilization of managers is critical for maintaining both internal and external environment of the organizations. Management focuses on performing several interlocking functions of developing corporate policy, planning, organizing, controlling and directing the organizational resources so that it can able to create maximum impact on the business development perspective (Kulik and Li 2015). Managers play a crucial role in realizing planned aims and objectives of the business in an effective manner. In this study, the focus would be three types of organizational structure including tall, flat and matrix structure present in the business environment. The study will also look to assess the benefits and disadvantages of each organizational structure. The study will also aim to evaluate the concept of contemporary management with the explanation of two different types of leadership theory including transformational and behavioral theory. It will also look to assess pros and cons of the selected leadership theory. Thereafter, the study will provide in-depth information about the strategic management concept with suitable examples. Finally, it will focus on assessing three strategic objective of Deliveroo for achieving growth in the market.
Organizational structure defines the way business activities such as coordination, allocation and supervision are performed in workplace. It can also be regarded as the viewing perspective through which employees look at their organization and its overall environment. Organizational structure reflects the way responsibilities are allocated among the individual for keeping all the employees satisfied towards their roles and responsibilities (Guadalupe, Li and Wulf 2013). Proper utilization of organizational structure is essential for fulfilling all the roles and responsibilities at the workplace. For that reason, managers always focus on selecting the best-suited structure for creating maximum impact on the market. Different types of structure is present that businesses use for performing all the responsibilities. Out of which tall, flat and matrix structure is the most popular among the organizations. Tall organizational structure reflects many levels of hierarchy, as it allow organizations to keep many managers. On the contrary, flat or horizontal organizational structure reflects fewer level of hierarchy. Therefore, it does not allow organizations to keep middle management within the workplace. Here executives are directly under the supervision of the top management. Finally, matrix organizational structure focuses on developing relationship in terms of matrix or grids. For that reason, matrix structure does not follow conventional hierarchy at the workplace (Neubert, Hunter and Tolentino 2014).
Tall organizational structure provides greater opportunity to the executive level of employees to have a steady growth in the professional career. Therefore, it allows organizations to keep employees motivated towards their roles and responsibilities. It also eliminates any possibility of confusion arises at the workplace regarding the roles and responsibilities. On the contrary, greater hierarchy often slows up the decision-making process of the organization (Doroshenko et al. 2015). For that reason, organizations often face massive challenges in dealing with different types of crisis. It also encourage employees to develop own perception about the thought process of the top management, which is not likely to create positive impact in the overall business procedure.
Flat structure urges employees to take more responsibilities of the operational procedure. It also removes excessive layers of management that enhances the speed of communication and coordination among the employees. It also allows management to initiate an easier decision-making process for handling business crisis situations. On the other hand, employees often seek for effective guidance from the senior management. As a result, it creates more confusion regarding role of the employees. It also induces employees to perform job beyond their specialties that can have massive adverse impact on the motivational level. It also limits the career growth options for the executive level of employees in a major way.
Matrix structure allows employees to remain in contact with many people within the organization. Therefore, it allows employees to achieve rapid growth in professional career. It allows executive level of employees to work autonomously. Hence, it increases the self-management skills of the employees in a major way. On the contrary, matrix structure increases the complexity at the workplace. It often creates long chain of command that can actually reduce the effectiveness of the operational procedure (Fan, Wong and Zhang 2013). Matrix organizational structure is often considered as costly, as it increases manager to worker ratio in a significant manner.
Contemporary management reflects to the new, current or recent approaches initiated in the field of management. Present globalize business environment has encouraged management to initiate several innovative approaches for maximizing the impact on the market (Colbert et al. 2015). Over the years, several theories including situational, contingency and system approaches have been developed on contemporary management aspect. It has completely revolutionized the way businesses are conducted in the global market. Contingency approach illustrates that all the organizations are different. Therefore, it faces different situations that require completely distinct way of managing. It reflects that the best way of managing depends on the nature of the business environment, which organization must have to relate in an effective manner. On the other hand, system approach has highlighted that everything happens in the organizational structure is interdependent or inter-related with each other. For that reason, organizations will have to identify the dependency among all the factors in an effective way (Djajadiningrat et al. 2014). Finally, situational approach highlighted the fact that different types of situation requires different types of leadership. Therefore, leaders of the organizations need to be flexible with the developed strategies for maximizing the impact on the business process.
Leadership reflects the actions initiated by the top people of the organizations for fulfilling business goals. Effective utilization of leadership style is necessary for maximizing the utility of all the available resources (Mason, Griffin and Parker 2014). Over the years, several types of leadership theories have been developed for signifying the importance of initiating best-suited leadership approach in the organization. Behavioral and transformational theory is among the most popular leadership concept that created major impact on the business processes.
Behavioral theory of leadership focuses on assessing the behavioral pattern of the leadership and its impact on the overall business procedure. Behavioral theory has identified different types of behavioral pattern of the leaders including task oriented leader, people oriented leader and goal oriented leader (Piccolo and Buengeler 2013). Each types of leadership have created different types of impact on the motivational and performance level of the employees. One of the prime strength of behavioral theory is that it is highlighted that leadership traits can be learned through experience and personal development. Secondly, behavioral theory has influenced leaders to focus on innovative approach for the development of the organization. However, lack of adaptability is among the prime challenges of behavioral approach, as many leaders fail to assess best way to handle a particular situation.
Transformational leadership reflects a leadership style where a leader works with all the subordinates to develop vision for growth and assess required changes have to be done on the business procedure. It helps to increase the morale, motivational and job performance level of the employees (Kark and Shamir 2013). For that reason, transformational leadership allows organizations to develop healthy work environment, which eventually help in countering all the future challenges in an effective manner. However, transformational leadership might fails into the trap of relying too much on the passion and emotion. It might induce managers to overlook the real situation, which can create massive impact on the business procedure.
Strategic management focuses on continues planning, monitoring and analysis procedure for fulfilling all the organizational goals and objectives. Strategic management provides specific direction to the organization’s goals and objectives (Hill, Jones and Schilling 2014). In the present competitive businesses structure, utilization of effective and innovative strategies has become crucial for achieving continues growth in the market. For that reason, almost all the top organizations like Pepsi, Wal-Mart, Apple, Samsung and others have developed a separate department for maximizing the impact on the business. For instance, revolutionary strategies of Apple in developing iPod and iPad has provided new dimension to the organizations business procedure (Cameron and Green 2015). On the other hand, Google has also invested massive amount on the R&D department to provide something new to the customers. In fact, increasing level of competition has also influenced small restaurants and hotels to use innovative technologies like mobile app order placement, home delivery and free Wi-Fi so that it can able to create maximum impact on the business procedure. Over the years, marketing strategies of the organizations have changed in a significant manner (Eden and Ackermann 2013). For instance, all the business entities have grabbed the opportunity of utilizing social media platform to reach to its customers in an effective manner.
Deliveroo is an online food delivery company that operates in around 84 cities in UK and Belgium, Netherlands, Hong Kong, Singapore and Australia. Delliveroo was established in 2013 and has achieved immense success in the market. Presently, it has over 13,000 employees working in the above mentioned countries (deliveroo.co.uk 2017). Therefore, three strategic objectives of Deliveroo are as follows:
It reflects a strategic planning tool for helping senior management of the organizations to fulfill all the business objectives in an appropriate manner (Thijsen, Tong and van Leer 2014). Ansoff matrix highlights four factors that management of Deliveroo will have to consider at the time of developing business strategies.
In order to increase the acceptance among the existing market, Deliveroo will have to focus on assessing present promotional and distributional strategy. It will also have to focus on timely delivery of the products for increasing the satisfaction level in a major way.
Deliveroo will have to focus on expanding its reach in the global market with the superior quality delivery services. Deliveroo will also have to focus on assessing the present pricing structure for maximizing the market penetration aspects. It will also have to make necessary changes in the business process for adjusting with the new county culture (Pernot and Roodhooft 2014).
As an online food delivery company, Deliveroo will have to focus on developing strong relationship all the customers for creating positive impact on the loyalty level. Therefore, it will have to focus on providing some additional benefits or offers to the regular customers as well.
Deliveroo will also have to focus on making few necessary adjustments in the delivery procedure based on the customers’ age, religion and gender. It will help the organization to mix with different cultures of the countries in an effective manner.
Conclusion:
The above analysis has emphasizes the fact that management is an extremely important part of the organization. Effective use of management aspect can allow organizations to achieve competitive advantage in the market. On the contrary, improper use of management strategies can cause organizations to disappear from the market. For that reason, it is essential to select best personnel for the leadership roles so that all the activities can be performed in an effective manner. The study has also highlighted the fact that there is no unique way of handling leadership aspect. Hence, leaders of the organizations will have to be extremely flexible in the developed rules and strategies. Otherwise, organizations might fail to handle any crisis in the business process. Thus, all the aspect of management needs to be handled in an effective manner for fulfilling business aims and objectives.
References:
Cameron, E. and Green, M., 2015. Making sense of change management: a complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Colbert, S.D., Green, B., Brennan, P.A. and Mercer, N., 2015. Contemporary management of cleft lip and palate in the United Kingdom. Have we reached the turning point?. British Journal of Oral and Maxillofacial Surgery, 53(7), pp.594-598.
deliveroo.co.uk, 2017. Deliveroo. [online] Deliveroo.co.uk. Available at: <https://deliveroo.co.uk> [Accessed 13 Apr. 2017].
Djajadiningrat, R.S., Graafland, N.M., van Werkhoven, E., Meinhardt, W., Bex, A., van der Poel, H.G., van Boven, H.H., Olmos, R.A.V. and Horenblas, S., 2014. Contemporary management of regional nodes in penile cancer—improvement of survival?. The Journal of urology, 191(1), pp.68-73.
Doroshenko, A.Y., Somina, V.I., Yarmolenko, V.I., Afanasiev, V.I. and Kurbatov, L.V., 2015. Organizational structure design of controlling investment and innovation processes in the subjects of small entrepreneurship. Journal of Applied Engineering Science, 13(4), pp.251-256.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.
Fan, J.P., Wong, T.J. and Zhang, T., 2013. Institutions and organizational structure: The case of state-owned corporate pyramids. Journal of Law, Economics, and Organization, 29(6), pp.1217-1252.
Guadalupe, M., Li, H. and Wulf, J., 2013. Who lives in the C-suite? Organizational structure and the division of labor in top management. Management Science, 60(4), pp.824-844.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Kark, R. and Shamir, B., 2013. The dual effect of transformational leadership: Priming relational and collective selves and further effects on followers. In Transformational and Charismatic Leadership: The Road Ahead 10th Anniversary Edition (pp. 77-101). Emerald Group Publishing Limited.
Kulik, C.T. and Li, Y., 2015. The fork in the road: Diversity management and organizational justice.
Mason, C., Griffin, M. and Parker, S., 2014. Transformational leadership development: Connecting psychological and behavioral change. Leadership & Organization Development Journal, 35(3), pp.174-194.
Neubert, M.J., Hunter, E.M. and Tolentino, R., 2014, January. The influence of servant leadership and organizational structure on employee and patient outcomes. In Academy of Management Proceedings (Vol. 2014, No. 1, p. 17320). Academy of Management.
Pernot, E. and Roodhooft, F., 2014. The impact of inter-organizational management control systems on performance: A retrospective case study of an automotive supplier relationship. International Journal of Production Economics, 158, pp.156-170.
Piccolo, R.F. and Buengeler, C.K., 2013. Behavioral approach to leadership. Oxford University Press.
Thijsen, T., Tong, T. and van Leer, J., 2014. Ansoff Model. Marketing.
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