In the UK, ASDA is considered one of the biggest supermarket chains.It sells all products, from food, general merchandise, clothing, etc. Tesco, Sainsbury and Morrison are the other retailers in the UK.The organization was established in 1949, and since then, it has come a long way. The employee count of 175000 makes it the third biggest retail chain in the UK.ASDA organizational structure went under major changes after its acquisition by Wal-Mart in 1999.However, the organization succeeded due to its healthy relationship between employers and employees and several good practices endorsed by its human resource.The present assignment on ASDA organizational structure will concentrate on the company’s structure and its adopted culture. The assignment will compare ASDA and British Airways on different parameters. The ASDA organizational structure assignment will also discuss different theories applied to the organization to manage its daily practices. The significance of team and teamwork will also be discussed along with the application of technology.
There is a clear difference between ASDA and British Airlines regarding their organizational structure and culture.
• ASDA sticks to a hierarchical organizational structure, whereas British Airlines sticks to its flat organizational structure.
• There are different organizational layers at ASDA, whereas at British Airlines, there are fewer layers.
• It is difficult to manage communication at ASDA, whereas managing communication is easier at British Airlines.
• At ASDA, decisions are taken by the senior management, whereas at British Airlines, decisions are made with employees’ consent.
• The manager motivates the employees at ASDA, whereas the employees get motivation from their job responsibilities at British Airlines.
• The decision-making process is quick at ASDA, whereas the involvement of employees delays the decision-making at British Airlines.
• At ASDA, promotions are made yearly, which can demotivate the employees, whereas at British Airlines, promotions areperformance-based.
The CEOs have invested much time in changing the organization’s culture to enhance its performance. The organization handled its employees with care and respect to make them feel confident and secure. But the organization had to face some unwanted changes, and one of them was the acquisition.Yet, the organization made sure that it remains transparent with its activities so that its employees remain loyal and continue maintaining their faith.In this ASDA organizational structure assignment, the culture assisted ASDA in making an undisturbed change during the acquisition process with Wal-Mart.
The structural difference between the two organizations leads to different leadership styles.As ASDA organizational structure is hierarchical, it observes an autocratic leadership style where decisions are made by top management. In contrast, a participative leadership style is followed at British Airlines, where decisions are taken along with the opinion of the employees.
The leaders at ASDA have transformational nature. The competitive environment requires transformational leaders who can make changes and implement them quickly. But the risk of employees trusting the leaders while making and implementing the changes is huge.It is found in this ASDA organizational structure assignment that the transparent nature of the management at ASDA has made its decision-making a great success.The changes are implemented in the company without any complexity as employees remain updated with the decisions made in the organization.
In contrast, in the last few years, British Airlines has suffered huge losses.The CEO, Willie Walsh, had adopted transactional leadership when the organization suffered losses.The rigidity in the rules and regulations he enforced disappointed the employees, who were instructed to obey them. Any violation or deviation from the rules was punishable.No further changes were employed in this ASDA organizational structure assignment, and the structure was organized. The rigidity of the CEO helped the organization to get through the economic crisis, and it was one of the main reasons the organization performed well.
What changes can be adopted at ASDA? The influence of leadership style on employee motivation while implementing the changes.
During the acquisition of the ASDA by Wal-Mart, the former had to face several issues. The main issue was linked to the cultural differences between the two organizations. ASDA is a UK-based organization, whereas Wal-Mart is US based. The latter strongly believed in secrecy in its decision-making and did not support employees or trade unions. In contrast, the employees at ASDA had an employee union as an informal body.It is found in this ASDA organizational structure assignment that the dissimilarity between both perspectives led to a reduction in productivity and higher turnover rates that affected its position in the country, and it lost its top position.
Hence, the organization must ensure that its actions do not impact the organizational behavior towards its employees. Therefore, the traditional approach of the organization requires to be changed. The organizations now understand that adopting Taylor’s scientific approach will not motivate the employees; instead, the organization must make the employees participate in decision-making.In this way, the employees feel responsible for the activities performed by the organization and get motivated to work hard to achieve the organization’s goals.
As per the above discussion, the organization has to change its leadership style from autocratic to consultative democratic.It is found in this ASDA organizational structure assignment that with this leadership, the organization can acquire feedback from the employees or take their opinions by creating an employee forum. Therefore, the change will benefit the organization by opening more alternatives to select from and motivating the employees to work dedicatedly. Furthermore, the leadership style can be used to analyze the performance of the employees in case the organization face challenges in determining the performance based on other matrices. Therefore, the leadership style can benefit both employees and the organization, the former can develop employability skills, and the latter can enhance productivity.
Looking at the diagram, it is evident that psychological needs are placed below, and self-actualization needs are at the top. As the person progresses, his needs increase, and he climbs the pyramid step by step.Due to its hierarchical organizational structure, Maslow’s theory aptly applies to it.In this ASDA organizational structure assignment, the lower salary grade employees are at, the lower level, and their basic needs are expected to be addressed first.The growth of the employees leads to promotion and addition in salary which helps to address the other needs of the employees.
Vroom’s expectancy model:The simple performance analysis and transparent nature followed at ASDA are linked with Vroom’s expectancy model. As per the model, an employee considers the performance evaluation process trustful when he can get adequate benefits for his efforts.It is found in this ASDA organizational structure assignment that the effort put in by the employee will benefit the organization and will generate straight benefits for the employee.During the performance evaluation process, ASDA applies the same approach. The performance of the employees is evaluated basis of the target allocated for them to achieve before the beginning of any project, and the rewards are endowed basis of the rating calculated on the performance.
As per the discussion, it is found in this ASDA organizational structure assignment that Maslow’s hierarchy of needs is suitable for an organization like ASDA. The disbursement of pay as per different parameters, along with other rewards related to the position, assists the organization in becoming more organized and transparent in its approach. Accepting this approachis easily acceptable and helps in untroubled business operations.
The notion behind Hertzberg’s theory is motivating every organization for its implementation. Several organizations have stopped following the traditional organizational behavior approach after recognizing the value of other factors needed to encourage employees.
According to the theory, an employee is encouraged to work due to his responsibilities, recognition and power sharing.It is found in this ASDA organizational structure assignment that these factors motivate the employees to work better. In contrast, an employee gets demotivated if he is not given a salary on time and there is nobonusorrewards, referred to as hygiene factors.These factors do not motivate the employees, but their absence can demotivate them.
The organization was previously working according to the classical models and approach, but soon it discovered that the performance of nearly all employees was declining.It is found in this ASDA organizational structure assignment that after the acquisition of ASDA by Wal-Mart, many of its senior and experienced employees resigned from the organization.Hence, it becomes vital for ASDA to make necessary changes in its practices to provide the employees equal respect and the power to be part of the decision-making process.However, the company has employed skilled managers who daily converse with employees and help them with their work, but the managers need to ask for suggestions and feedback. These suggestions or feedback can be related to the required changes in the organization.Therefore, it is found in this ASDA organizational structure assignment that the approach will help develop better relationships between the employee and the manager and provide better results.
ASDA has two types of groups, formal and informal group. In this section of the ASDA organizational structure assignment, we will discuss both groups in detail.
Formal group: The managers form this group comprising individuals with the same skill set to perform a specific task.The managers manage the teams and are well-organized.The vital team member is the developing manager, who is responsible for setting up goals, establishing interactions, guiding communication among employees, maintaining a peaceful environment, motivating the employees, ensuring no conflicts and analyzing the performance of each team member.It is found in this ASDA organizational structure assignment that in such an environment, the team members achieve synergy, which is advantageous for the organization.
Informal group: The employees informally form these groups for personal gains. Almost all employees in the UK are part of trade unions. The unions act as a governing body and provide strength to the employees. Sometimes, the organization’s and employees’ views are not identical. In such situations, the union helps the employees by ascertaining that the organization takes a step advantageous for both parties. But, the acquisition changed scenarios; trade unions were not getting support, and the organization’s approach became secretive.It is found in this ASDA organizational structure assignment that vital information was not shared with the employees, which led to increased conflicts. As a result, the employees felt unsafe, which increased the turnover rate after the acquisition.
Certain factors affect the functioning of the formal teamscreated at ASDA, which are addressed in this ASDA organizational structure assignment.
Leadership:Leadership has a vital role in the organization. The job of a manager at ASDA is not restricted to allocating tasks to the team and its members; instead, he has to ensure the effective working of the team. The manager defines the goals of each member, and he instills common interests within all employees.Initiating communication and resolving conflicts are the main of the manager’s primary responsibilities. The ASDA team’s success lies in the proximate relationship between managers and employees.
Diversity: ASDA has stores all around the UK, and the organization has diverse people working for it. The team members differ in gender, age, religion, caste, etc. But the notion of diversity brings all the employees in the team come together and work together for the organization. In addition, diversity helps the organization deal with different types of customers.
Transparency: ASDA has always maintained transparency in its activities.Managers appreciate and credit the work done by the team members, which boosts their confidence.In addition, the team meetings and the work reports help the managers know the work’s status.
In the modern world, adopting innovative technologies have become vital for the functioning of an organization. Like other stores, ASDA has also started selling online to remain competitive. One of the common technologiesused in stores is RFID.ASDA does not take payment through checks, and it accepts only cards. The free home delivery option is another advantage for the organization.It is found in this ASDA organizational structure assignment that the organization uses messengers, emails and other means to maintain communication within the organization. The managers can hold virtual meetings, which saves money and effort.
As per the discussion made in this ASDA organizational structure assignment, ASDA is one of the successful and largest supermarkets in the UK. The organizational structure of ASDA and British Airlines has helped the organization achieve its goals. The human resource team of the organizations have played a vital role in establishing and maintaining a healthy relationship between managers and employees. Both organizations have different cultures and approaches but still manage to get persistent success. It is found in this ASDA organizational structure assignment that the transparent nature and employee involvement in the decision-making process have resulted in the smooth functioning of the business.
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