McKinsey 7s Model, Hofstede's Theory of National Cultural Dimensions - Coursework Example

Management By Professor Class University City Date of submission Organizational Culture Introduction Viewed as the most leadership challenge, organizational culture poses dilemma due to presently less agreement on its concept, meaning, observation, and measuring techniques. Issues on its relationship with theories from traditional industrial and organizational psychology sectors are also not clear. Organization culture definition Every organization manifests its cultural levels in various ways associated with observable artifacts, values, and the underlying assumptions. The artifact is simply the physical layout of the organization such as the dress code and manner of communication among the workers, but it brings with the decipher problem. Once the creation of an organizational culture, it brings with it various challenges. Culture creation may occur because of modeling by leader figures permitting the group members to identify with them through the internalization of their values and assumptions. However, this has led to the creation of shared assumptions because of joint learning. McKinsey 7s model The model analyses organizational design using the seven internal elements divided into two including soft and hard elements. The hard elements such as strategy, structure, and systems are easier to identify and manage compared with the soft elements like shared values, staff, skills, and style. Although the soft elements are hard to manage, they form organizational foundation and are likely to create a sustainable competitive advantage. These elements assist in ensuring effective organizational alignment for the achievement of the desired results. About its application, Apple Inc. might use the strategy to develop a marketing plan that would assist to achieve a sustainable competitive advantage and compete successfully in the market. Structure element presents organizational divisions and units. Its application ensures organizational accountability. Apple Inc. conducts several processes and procedures that require systems to control daily activities and decision-making process (Ybema, Yanow & Sabelis, 2011, 99). The market is very competitive that the company has to employ workers with the desired skills, capabilities, and competencies. The staff relates to the type and number of employees the organization has. To be effective, Apple Inc. would have to recruit, train, motivate, and reward them. The style is the manner in which top managers manage, interact, act, and symbolize their values. Shared values are crucial and represent the norms and standards guiding the behaviour and actions of the employees. Hofstede's theory of national cultural dimensions According to the theory, there is no universal management method since every country has different origin and meaning of management. Besides, it is not easy to isolate management from other societal process. The model of cultural dimensions is a framework describing five value perspectives and national cultures. The power distance relates to the level of inequality that is acceptable to people that countries like Australia could use to reduce the increasing salary gaps. Individualism versus collectivism is the extent that people feel that they require to be cared for or cared by other members of the society. Australians need to apply the concept to ensure care programmes prevail within the city. Masculinity and femininity is the extent in which the culture favours a particular gender. It is crucial to treat all genders equally. Uncertainty avoidance element is important as it determines to which the citizens prefer structured over unstructured situations. The Austrians need to embrace both long-term and short-term orientations as a method of enabling a society. Conclusion Organizational culture is crucial while aligning business activities to meet the desired objectives. Therefore, it is crucial to define it effectively. McKinsey 7s model and its elements are important to ensure the success of the organization. To manage the people effectively, the state should consider Hofstede's theory and its components. Leadership and Management Introduction There are quite a few differences between leadership and management. To ensure effective organizational performance, it is crucial to understand them. Moreover, there are different types leaderships as well. Difference between managers and leaders The managers have employees while the leaders Work hard to win followers. Managers tend to react to the changes majorly created by the leaders. The managers have the responsibilities of forwarding good ideas, communicate with others, and giving direction to others while the leaders implement the forwarded ideas, apply persuasion to reach followers, and create teams respectively. Although the leaders try to be heroes within any organization, the leaders, on the other hand, try to make heroes of everyone around them. The managers take the credit while leaders take responsibility. The managers are focused organizational personnel while the leaders tend to create a shared focus. The managers exercise power over other people while the leaders tend to develop power through an integration process with the people (Lencioni, 2005, 78). The leaders are reactive depending on the issue in question whether failure or success of the employees while the leaders are reactive since they anticipate the changes and prepare adequately in advance. Proactive leaders have calm demeanor. Styles of leadership Democratic leadership The method requires a democratic leader who makes decisions by consulting others while still maintain control over the group. Hence, the leader allows the team members to decide on the methods of handling the task and accord responsibility to each person. The leader should encourage integrative participation process without losing sight that have the leadership responsibility. There is need to value group discussions and considering input from each person. The leader has to motivate team members through empowering them, joining them in the analysis of the problem, and making decision. Advantages The process enhances friendliness; better implementation methods improve personal growth, and motivation. Under democratic leadership, the exchange of the ideas between the team members and the leader improves the level of satisfaction and morale. The method also recognizes human values, which tend to develop positive value and decreases cases of resistance to change. There is reduction of absenteeism and labour turnover and enhanced quality of decision made. Disadvantages Since it integrates the views of all involved parties, it is slow in the decision-making process and initial production is low. The method could be less effective if the subordinate participation is namesake. Autocratic leadership The method is authoritative or leader centered. Moreover, it involves centralization of the authority in the leader; hence, the leaders makes all the decisions, designs the responsibility of each team player, and exercises full powers over them. It is the responsibility of each subordinate to follow the directions and order to the latter. Advantages The style permits quick decision-making, provide motivation and satisfaction to the leaders exercising the authority, and can yield better results where speed is required. The decisions made are clear and necessary for less educated team members with less understanding and capacity to make quality decisions. Disadvantages The method contributes to frustrations, inadequate moral, and conflict among the involved parties. The team players shirk both the responsibility and initiative. Considering centralization of the authority, the leader might please the favourites by offering them less laborious nature thus enhancing partiality. Laissez-faire Leadership The method is individual centred in which the leaders take little interest in the leadership roles. It leaves the subordinates to operate on their own. Besides, in the method, the leaders give their subordinates complete freedom to make decisions; therefore, it assists the subordinates to determine their objective. The leaders provide resources for the subordinates to perform their work effectively and advise them. Advantages There is the development of self-confidence among the subordinates and enhanced level of motivation. It is crucial in the development and extension of the business. Disadvantages It is difficult to establish cooperation since team members have freedom. By offering freedom to others, the leadership position loses its importance and impact on the organizational performance. The method is mainly appropriate for the highly educated people who understand what they are doing. Conclusion There are different types of leadership that organizations need to consider depending on their overall objectives. Besides, the level of education of the subordinate determines the type of leadership used. Teamwork Introduction Involving other organizational members play an important role in determining organizational performance. To some extent, it might contribute to poor organization if the organization fails to consider the underlying factors. Improving organizational performance through teamwork Every successful organization seeks to enhance the performance in each segment of work. These areas include understanding the requirements of the customers and improving organizational performance that meets their needs more effectively. It is crucial to understand also the underlying processes to cut out the wastes and inefficiency, and improving teamwork. Getting the employees involved in the management process helps to improve performance, morale, and development of the individuals. Organization involving people enjoys several benefits. However, the process requires real commitment of the organization, management, and employees for the success. Organizational activities require interactions and communication among those involved. In addition, any good activity relies on the ability of cross-functional team as a means of creating a shared understanding of the responsibility, involved processes, and tasks of the members (Tjosvold & Leung, 2004, 162). To operate effectively with the teams, it is the responsibility of the organizations to understand methods of making, utilizing, and keeping the involved parties. Teams are crucial part of the methods in which organizations undertake their businesses since in most cases the managements tend to improve organizational performance through applying positive synergy delivered by the teams. Carrying out most of the responsibilities require numerous skills, judgment, and experience. In comparison, the teams often outperform the individuals. Developing team using Belbin's theories According to the theory, it is crucial that individuals understand their roles within the team to allow them develop their strengths and have mechanisms of managing their weaknesses to improve their level of contribution to the team. Therefore, team leaders and developers often use the theory in creating balanced teams. In cases where team members have similar behaviours, there is a possibility of having unbalanced team. The theory helps to ensure the coverage of necessary team roles and weaknesses or undesired behaviours are addressed. The major challenge of most strategies is maintaining a consistent approach. While using the theory, leaders have to be aware of the behavior of individuals through assembling their profiles and build awareness of their contributions and team balance. The next stage is building team architect, which aims to address the other components required for building the framework, which support the performance of teams. The Belbin Toolbox addresses the need to maintain and continue developing the capacity of the team, which is an operational approach to assist leaders aiming to enhance performance. The toolbox on the theory provides development actions linked and consistent in what the team advocates for. Belbin’s team role can be categorized into three main groups including thinking oriented, action oriented, and people oriented. In any high performing team, there is balancing of these roles and focusing on each element in isolation or favoring one for another, might not be sufficient. Therefore, effective interpersonal understanding and interaction are important in ensuring that these elements translate into productivity. Tuckman's theory of team development According to the theory, team formation is a process that takes time, and members often undergo recognizable stages as they change from being collected strangers to united team with a common goal. These stages include storming, forming, performing and norming, In the formation stage, what drives individual behavior is the desire to be accepted by team members and avoid any controversy that might result in conflict. Moreover, individual avoid issues and feelings but focus on the team goals. During the storming phase, the team members remain nice to one another as long as the management addresses important issues. Although patients might break earlier leading to confrontation, there is need to find solutions of addressing them before they cause damages. Norming involves setting the rules and clear responsibility of every team member. At the performing stage, all group members know one another and perform their roles to reach organizational objectives. Conclusion There are several theories and models used in developing the teams. Hence, poor formation might result in disorientation of organizational activities. PESTLE analysis Introduction There are several factors affecting business operations. PESTEL involves external factors influencing business. These factors include political, economic, social, technology, legal, and environment factors. Political factors This involves government’s intervention in business activities operating within a given state. These involvements affect businesses in so many ways. They include laws and regulations relating employment, quality of the produced products, tax laws, and trade restrictions. Businesses have no control over these activities. As a result, there is need for the state involvement to control and stabilize them. Other factors influencing business operations politically are geographical uncertainties and terrorism. Economic factors This is the major factor of consumers’ purchasing power as it determines the amount of disposable income available for the customers. Economics factors influencing the sales include employment rates, interest charged on loans, exchange rates, and amounts of disposable income. Economic development determines the rate of employment of the people (Lange, 2010, 125). With employment and proper salaries and wages, there is an increment for income available for disposal. Inflation rates causes increase in the prices of commodities, as a result leading to a decline in the purchasing power of the consumers. Social factors Social and cultural beliefs of the consumers affect the tastes and preference for any product in the market. Populations’ trends, moral principles, and consumer spending habits are some of the factors requiring consideration by the organizations. Technological factors These factors involve innovation in technology that might affect organizational operations and favorability in the market. The factors also involve automation, research and development, and the level of technological awareness within the market. Legal factors This element focuses on compliant with outlined laws and regulations controlling business operations. Legal factors, in this case, refer to all aspects of state laws and policies that influence or rather control business practices in a country. The primary aspects of government legislation are taxation and issuance of certificates of operation. The purpose of legal actions implemented by a government is to check and balance all business activities within the state. Regulations like Consumer Protection and Employment Laws can seriously influence the sales of products. Environmental factors Organizations are struggling to comply with environmental regulations and encourage consumers to return faulty and outdated products in a bid to ensure reduction of pollution cause by their electronic wastes. Many consumers are also demanding the purchase of products, which are environmentally friendly. PESTEL analysis for Morrisons PLC Political force The government announced laws concerning environmental protection like the methods of waste disposal. The regulations by the EPA (Environmental Protection Agency) increases organizational management cost for the waste food. Governmental and other agencies like The European Food Authority also set the standards for nutrients to control the level of fats with the UK Competition Commission and Office of Fair Trading monitoring closely the operations of the supermarket. Economic force The UK food industry is often under less influence of the seasonal prevalence except those moments when the sales are high like Christmas. Other factor that might influence the operations of the retail is the unpredictable economic growth. However, the sales from the retail declined over the last three years due to slow restoration of the economy. Social influences The aging population has an important influence on Morrisons. The retail has to provide products that meet the demand of the aged and friendly environment for the mature customers. Moreover, age also impact the future employment status. Busy lifestyle also contributes to requirement of late business opening with many customers becoming concerned with ethical purchase. With UK increasingly becoming a multi-cultural society, the retail is forced to stalk food and groceries from different cultures. Technological Influences The retail has specialized equipment and trucks that guarantees exclusive tastes and quality which makes it necessary to have trained personnel. The retail uses E-commerce as its marketing and distribution channel like the major competitor, Tesco. It also uses EFTPOS technology, which ensures quick serving of customers and automation leading to reduction in the human effort. Organizational internal and external communication method increased due to the application internet, extranet, and internet services. Environment The retail is shifting to environmental friendliness and ethical issues influencing its performance. Customers are looking for products that have minimum impact of the environment. The greenness concept is becoming vogue as friendly activities are emerging. Legal influence The retail is working with the local councils and authorities to provide employment possibilities. Moreover, it has its own policy for energy saving and assist the government in controlling pollution. As a PLC, it follows the legal basis for the business through complying with Joint Stock Companies Act of 1862. Conclusion External factors presented by the PESTEL elements affect business in several ways. To operate effectively, Marrison PLC needs to consider all these factors. References Lange, J. S. 2010. Human resource management in Indonesia: Important issues to know before establishing a subsidiary in Indonesia. Hamburg: Diplomica Verlag. Lencioni, P. 2005. Overcoming the five dysfunctions of a team: A field guide for leaders, managers, and facilitators. San Francisco: Jossey-Bass. Tjosvold, D., & Leung, K. 2004. Leading in high growth Asia: Managing relationship for teamwork and change. River Edge] New Jersey: World Scientific. Ybema, S., Yanow, D., & Sabelis, I. 2011. Organizational culture. Cheltenham: Edward Elgar. Read More