C & C Grocerys Organisational Structure - Case Study Example

C & C Grocery’s Organisational Structure Name Course Name and Code Instructor’s Name Date Introduction Organisations across the world operate based on principles championed by the founders of the organisation. Some organisations have maintained the principles while other organisations evolve. Both types of organisations face different challenges and the organisation that would be successful is the one that introduces new measures to counter these problems. The aim of this paper is to analyse and discuss the C & C Grocery store. The paper analyses organisation structure of C & C Grocery, analysing information available from stakeholders and formulating recommendations that can drive the organisation to become more successful. Organizational Structure at C & C Grocery Stores Organisational structure can be defined as a group of activities such as coordination, task allocation, supervision that are aimed towards achieving organisational goals and objectives (Langer, Alfirevic, and Pavicic, 2005). It may also be viewed as the means in which individuals views and organisation and the environment of the organisation. The structure of an organisation can be formal, informal or a structure that is made of both formal and informal (Zheng, Yang and McLean, 2010). Formal structures are usually formed to meet the requiremen6ts of the organisation and usually come in the form of organisational charts (Armbruster et al., 2008). This is depicted from the case study that illustrates how activities are accomplished within C & C Grocery. The C & C Grocery structure has a leader who is the founder of the organisation, and this leader directs and dictates the direction in which the grocery follows (Oldham and Hackman, 2010). Formal structures are also important in ensuring disciplines and efficiency is cultivated in an organisation. Apart from formal structure, organisations sometimes utilise informal structures in creating an environment that is conducive to the employees (Sengupta and Bhattacharya, 2006). For example, C & C Grocery originally was based on informal approach towards the customers; an aspect referred to as “serve the customer”, and was adopted by Doug. Doug originally had a personality that encouraged serving customers effectively, an aspect which contributed to increase of stores from a single on in 1947, and 20 years later the organisation had more than 200 stores. However, because of increase of stores and formality requirement, the model of “serve the customer” changed because of environmental, economic and social factors. C & C Grocery has numerous branches that should operate effectively and efficiently requiring a structure that is applicable to the organisation. Analysing the C & C Grocery can be viewed from the angle of contingency effectives approach in determining which parts or sections of an organisation a manager’s considers to be important. The current structure employed by C & C Grocery employs is the internal process approach (Sengupta and Bhattacharya, 2006). The philosophy utilised by internal process approach is that of assessing effectiveness and looking at internal activities of an organisation to determine internal efficiency and health. In the case study, this is illustrated by responsibilities and roles that are played by each employee (Zheng, Yang and McLean, 2010). For example, all the people were concerned with internal aspects of the organisation but did not consider the environmental factors. C & C Grocery were focused in operational details and ensuring each employee fulfils the roles and responsibility dictated. This close supervision on operations was never done well since they measured the wrong internal processes and hence the result was ineffective in determining the health of the organisation. Rather C & C Grocery should have focused on interaction between organisational parts, decentralisation of decision making, communication, team work and positive working climate Evolution of C & C’s Structure C & C Grocery store has a long history starting from when the first store was opened by the brothers. The store started in 1947 and after fifty years the organisation has more than 200 stores spread across the country. Originally, the structure of C & C Grocery was simple since the brothers operated the business and utilised their own personality to ensure the organisation becomes successful. Because of business expanding, the organisation employed specialists and other employees to ensure the organisation continues to operate successfully (Armbruster et al., 2008). However, the management of the organisation did not place into consideration components that determine whether an organisation is successful or not. The management consideration operation part of the business and did not address the concerns of external environment and also the employees (Watson and Gallagher, 2005). Impacts of the design changes recommended by the consultants C & C Grocery employed consultants who presented some of the problems within the organisation and measures in which it can be employed to correct problems in the organisation (Ivanov, Sokolov and Kaeschel, 2010). Some of the solutions presented by the organisation include encouraging change, diversification of business, cooperation between and among employees and restructuring positions and responsibilities of some employees especially in managerial level (Zheng, Yang and McLean, 2010). The changes are conducive for ensuring the organisation operates for longer and also ensuring organisation can compete effectively. A major benefit of these changes is ensuring the employees work together to achieve organisational goals. Restructuring on how the organisation operates provides an even ground in which ideas can be exchanged and ensure the business operates optimally. For example, the store having a single and specific manager to direct and assist the store means that decisions can be made unanimously (Armbruster et al., 2008). Moreover, having a specific manager for each store means communication and sharing of information is effectively and problems reported by the consultants would cease to exist. This is different from the original arrangements in which no single manager was responsible for the store but more than one meaning conflicts may occur. The C & C Grocery consultants adapted a functional type of structure and to some extent a divisional approach. Functional structure can be defined as a structure that performs specific tasks and specific people with specific qualities should be allocated tasks. For example, C & C Grocery has grocery, meat and produce sections (Zheng, Yang and McLean, 2010). The meat section requires individuals with experience and understanding of meat requirement. Even though the approach leads to efficiency, communication and operations matters may rise if the structure is not brought to work together. In the case of C & C Grocery, this component is evident because different employees within a single store may have different perspectives according to an issue. For example, the consultants stated that misunderstandings were common issues as illustrated by the coke drink promotion. Even though these two employees work within the same environment but different responsibilities, lack of effective communication contributed to the misunderstanding. Therefore, C & C Grocery should maximise on functional structure but should ensure an understanding exist among different sectors in the organisation. This requirement is evident in the new structure that the organisation have take giving responsibility to a single manager to supervise the store and also become the link person between the store and organisation management. Apart from functional structure, C & C Grocery employs a divisional structure because of the different regions namely Southern, Southeast and Northeast. These three divisions with approximately seventy stores are managed by a vice president answerable to the president. Accordingly, each operation within the store is managed and control in a manner in which hierarchy is in place. Even the management and the organisation have embraced a new structure as advised by the consultants; some areas of corrections should be made (Zheng, Yang and McLean, 2010). The structure developed by the consultants is based on operations alone rather than introducing the aspect of management. An effective organisation requires both the management to be effective and operations and therefore the consultants should have factored into consideration the requirements of human resource (Dugdale and Lyne, 2010). An effective organisation views employees as assets and therefore the consultants should have factor the aspect of human resource in the framework. Another component that the organisation has introduced to ensure that the organisation operates optimally is redesigning the store. The store design has remained the same for many years and each new store embraces the same design (Sorensen and Stanton, 2013). The organisation should formulate a design that is applicable to the modern times and also the design must not be the same because of the society in which the store is located (Watson and Gallagher, 2005). Design of the store is irrelevant to some extent, but what is important is brand and service. C & C Grocery is a store brand and many consumers are associated with it and thus designing of the store should not be the same but the content is only what matters most. The consultants also introduced the issue of diversification to ensure the organisation sustains and can overcome competition from larger and discount oriented stores (Armbruster et al., 2008). Diversification through introducing of new products to the store will ensure different consumers visit the store resulting in profitability and also create mechanisms that can be used in fighting competitors. C & C Grocery did not consider competition initially and therefore introducing stores as pharmaceuticals and alcohol section may increase and diversify business to make the organisation become successful. Utilising this strategy would ensure the organisation operate in the 21st century effectively. 21st century is a business environment that is competitive and also encourages globalisation. For example, increase in discount stores within C & C Grocery regions indicates that the business should introduce a model that can be sustainable in the 21st century. Therefore it is important for the organisation to embrace a new business model that allows offering of quality products and services to counter the competitors’ products. Recommendations to the management The advice from the consultants is important in driving the business to success. However, clarification and addition information should be introduced to make the organisational to become successful. Some of the recommendations include: The management should create a new department that addresses the human resource requirements. Human resource department is important because it will allow training and development of employees (Zheng, Yang and McLean, 2010). Internal and external environment of numerous businesses keep changing and thus informed employees assist an organisation to counter changes. C & C Grocery should set up an effective department that has a clear policy to assist the employees to operate effectively. The policy should also contain information to motivate the employees. Motivation can be achieved different and thus the management should choose appropriate motivational strategy to make the employees become grateful with the organisation. C & C Grocery has an updated information technology system but it is not fully operational. The management should optimise this technology to ensure it benefits with globalisation and other channels of communication associated with information technology (Armbruster et al., 2008). Many organisations are marketing their products through social medium and other channels associated with information technology. This approach is simple and cheaper compared to traditional methods and thus can make the organisation more profitable. C & C Grocery should also combine information technology with logistics to deliver the products to the homes of customers (Watson and Gallagher, 2005). This means that the customers can call the store and request for delivery and all process can be completed easily by the use of information technology (Sengupta and Bhattacharya, 2006). This approach creates a new challenge in which consumers can appreciate the products. In addition, since the business has been in existence for many years, some people may have aged and would not be able to travel to the stores and home delivery can be very conducive for such consumers. Conclusion C & C Grocery started its operations in 1947 and has been expanding to more than two hundred stores across three regions. The business started with the aspect “serve the customer” but the structure later changed embracing strategies that may guide the organisation to success. However, competition and lack of change has contributed to the business facing numerous challenges and can be mitigated through maximising on the information presented by the consultants. In addition, the organisation can benefit immensely through introducing human resource department and maximisation of information technology to make the organisation profitable and appealing to consumers. References Armbruster, H., Bikfalvi, A., Kinkel, S., and Lay, G. 2008. Organizational innovation: The challenge of measuring non-technical innovation in large-scale surveys. Technovation, vol. 28, no. 10, pp. 644-657 Dugdale, D., and Lyne, S. 2010. Budgeting Practice and Organisational Structure. 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London: CIPD Publishing Zheng, W., Yang, B., and McLean, G. 2010. Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research, col. 63, no. 7, pp. 763-771 Read More