Introduction to Organisations and Management Assignment

Introduction to Organisations and Management - Assignment Example The team building effort and work of both the organisations have been cited by mentioning the important features that played a significant part in those aspects. The management and leadership approach of these companies are explained in detail. The paper also contains the details of organisational culture of both the organisations. 2.0 External Environment and Organisational Structure Critical Comment Organisational structure and organisational design assist an organisation to organize the people and task in order to meet the goals and objectives of an organisation. Theories The hierarchical structure is pyramid in its form. In the hierarchical structure, president is placed at the top followed by ‘vice president’ or ‘senior managers’ and below this level there are a number of management layers and maximum employees are placed at the bottom level of the pyramid. Each of these people has several people reporting to them. The number of people increases at each level down the structure. The jobs in the hierarchical structure are categorised by function into various departments in the organisation (Reference for Business, 2011). Source: (Tutor 2u, n.d.). Network structure refers to â€Å"the arrangement of the differentiated elements that can be recognised as the patterned flows of information in a communication network†. The virtual organisation utilises electronic mail in order to share information as well as coordinate their work. The use of email permits the workers to maintain their identity without a shared physical setting and facilitates existence of a group without evident participants (Ahuja & Carley, 2001). Contrast The organisational structure of Watsons Engine Components is out of fashion and possesses hierarchical structure. Though hierarchical structure provides advantages in an organisation, Watsons Engine Components faced problem in their organisational structure due to various reasons. The communication which took place in each department was not effective and rivalry arose in the organisation as each department took decision based on their own interest rather than the interest of the whole organisation. The increased bureaucracy created an obstruction towards their endeavour of organisational change; and while responding to the clients, maximum time was required. Since there were a numbers of layers in the hierarchy, it entailed the company to increase its cost (Know How, n.d.). H & M Consulting is an organisation with network based organisational structure since a group of people interact by means of interdependent task for the attainment of common goals. The virtual organisation is geographically distributed as the members in the organisation work for common interests and goals. As it is a virtual organisation, it involves high level of informal communication. Due to deficient formal rules, procedures, clear reporting relationships and norms, there is a requirement of more extensive inform al communication (Ahuja & Carley, 2001). External Environment PESTEL Analysis Comment Critically Various factors are present in the external environment that influences managers to take decision. The analysis of various factors can be done by using the PESTEL model. Theory The model of PESTEL analysis involves political, economic, social, technological, environment and legal. Political factors denote the