Restaurant business in Uk are proving to be very popular both with UK nationals and foreign visitors to the UK. A large number of foreign restaurants have opened in the UK in the last few years to take advantage of the growth in the UK economy and its population. Being an assistant manager in Smith's restaurant which is in a consideration of being expanded and developed as a chain of restaurant across the Uk, I have to advice MR Smith regarding the new employee working condition, organizational structure, culture, leadership style, teamwork in light of the recent developments. The owner and Manager, Mr Smith is himself a foreigner who has lived in the UK for many years. At present the Restaurant has a central location in London and it is popular for its European and International cuisine. The restaurant currently has a typical hierarchical structure. Mr Smith the founder and owner is also the Managing Director. He has a direct control over management and operational issues such as the hiring of staff, marketing and sales promotion. He does not believe in consulting with staff when it comes to making important decisions. Mangers according to him should make the decisions and the subordinates should and must obey such decisions. As one of the longest serving employees, Mr Smith values my opinion and he has called me to discuss the recent changes in employee working conditions, and the increased levels of absenteeism and lateness. In this report most of my discussion will be centred on the expansion of the restaurant in the UK. First I will discuss about organizational structure and culture, theory and management approaches and style of leadership. In the second part I will focus on group nature, group behavior, factors lead to valuable team work, and shock of technology. In the third part I will make an assessment on the impact of growth of a business, the environmental factors and decentralization of power and authority.
Organization structure is the formal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organizational goal.
Organizational culture is a system of shared meaning and beliefs within an organization that determines, in large degree, how employees act.
Different organizational structure types which are used in the UK restaurant industry.
- Pre-bureaucratic structures:
- Functional structure
- Matrix structure
There is a lake of the standardization of tasks in the pre bureaucratic(entrepreneurial)structure.this strucure is best used to solve simple tasks and is most common in smaller organization.
One to one conversation and and most of communiocaation is maked by the stretegic leader.
In the functional structure the employees performe a specialized set of task in the functiional devision of labour.for example a engeering department would be the special staff with software engineer.the functional organizatios as a whole are the best suited as producer of standardised goods and services at the low cost and large scale
The both function and product base group of workers are in the ctegory of the matrix strucure.A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms.
In Smith restaurant they follow the pre bureaucratic structure (entrepreneurial structure) because Smith has his own control over the restaurant business. He applies the power culture. There have rules and little bureaucracy in the power culture. The smith's restaurants operational issues like marketing and sales promotion and hiring of the new staff operate owner himself. he does not like to discuss any matter with workers.
P2) In organizational behavior the matching individuals needs is a crucial part of success for any company. The match between people and the organizations for which they work is determined by the kind of organizational culture that exists. The degree to which an organization's values match the values of an individual who works for the company determines whether a person is a good match for a particular organization. The collective rules by which an organization operates define its culture. If we observe the Mr. Smith restaurant then we can see the Mr. Smith have all the powers in his control. So in that atmosphere no any body can work in that organization. In the organization every person has different moods and different minds, so no anybody bear the wrong action against him. But in this case the Mr. Smith has all the power himself. Mr. Smith is not doing well in his business because his leadership style is not good. Because of his staff thinks any changes in the organization are made without their consent and these results in conflict between owner and staffs.
This may seem a far way from your everyday business or organization closer to home, but surprisingly the variations between places and countries are very similar to that of organizations. Every business has their own specific way of doing things, has developed norms and procedures over time and has a different atmosphere and feeling. These differences, similar to that of countries, have developed through many influences both internal and external.
P3) Factors that influence the individual behavior in and the Mr. smith restaurant's employees are well described as under:
The people different from each other is obvious although in study individual differ to be study variance in the organizations, how are people different. It is also study central tendency how can a person be described within person average.
Attitudes in the organization
Attitude in the organization is different person to person, because every person has different feelings and perceptions in the minds of every people.
Motivation is the most important. Work motivation refers to the psychological forces within a person that determine the direction of the person's behavior, level of effort, and level of performance in an organization in the face of obstacles. Motivation is distinct from performance.
There have much need in the organizations to corporate and coordinate and do their best efforts on the part of a group of persons work together for the interests of a common cause. if their is a positive teamwork in the organization the organization move progressively towards the achievement of its main goals.
Psychological factors are the moods, needs and expectation of persons that they will contribute in the organizations. An individual's perception about the terms and conditions of a reciprocal exchange with another part.
The factors that influences Mr. Smith employees are : flexible working hours, age group, payment scale, reluctant recruitment etc. If we want to be a successful employee then we have to be happiest employee. If we have any dedicated individual in any organization then we can compete with any other organization.
Here we are mentioned some modern principles for organizational change management and effective for the employees training and development. These ideas will not appeal to old style paternalistic X Theory organizations and cultures, unless they want to change for the better. These principles are for forward thinking emotionally mature organizations, who value integrity above results, and people above profit.
Corporate Responsibility, Fair Trade, Sustainability, etc these are not just fancy words they are increasingly and ever more transparently becoming the criteria against which modern successful organizations are assessed by customers, employees, and the world at large. This is not to say that results and profit don't matter, of course they do. The point is that when you value integrity and people, results and profit come quite naturally.
Knowledge based on experience through case studies. Analyzes successes and failure.
No concrete principles. Of limited value for developing management theory.
Group Behavior Approach:
Importance on people as groups and their behavior. Study of Social and Organizational Behavior of the people in groups. Generally differs with management concepts, theories and techniques. Closer integration with organization structure is needed.
Cooperative social systems approach:
Concept includes any cooperative group with a purpose and is concerned with both interpersonal and group behavioral aspects.
This approach overlooks the managerial concepts and is too broad a field for the study of management
Interpersonal behavior approach:
Concentrates on interpersonal behavior, leadership, motivation and human relation.
This approach too like the earlier ones ignores managerial concepts such as planning, organizing and controlling.
According to this approach, unlike the earlier ones management concepts such as planning organizing and controlling are given due importance. Interaction with the external environment is also considered.
The 14 Management Principles from Henri Fayol (1841-1925) are:
- Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.
- Authority. The right to issue commands, along with which must go the balanced responsibility for its function.
- Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.
- Unity of Command. Each worker should have only one boss with no other conflicting lines of command.
- Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.
- Subordination of individual interest(to the general interest). Management must see that the goals of the firms are always paramount.
- Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
- Centralization(or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel.
- Scalar chain(Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels.
- Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.
- Equity. In running a business a 'combination of kindliness and justice' is needed. Treating employees well is important to achieve equity.
- Stability of Tenure of Personnel. Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.
- Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of 'personal vanity' on the part of many managers.
- Esprit de Corps. Management must foster the morale of its employees. He further suggests that: "real talent is needed to coordinate effort, encourage keenness, use each person's abilities, and reward each one's merit without arousing possible jealousies and disturbing harmonious relations."
For Mr Smith's Restaurants Fayal's 14 principals of management can be used and this theory can lead to success because it's a well practice theory in recent management system and it is applicable to any sort of businesses easily.
P6) Discuss different leadership style that Mr. Smith may adopt in his new business and effectiveness of these leadership approaches.
Leadership is that what is happening in the organization. in other words a group towards the achievement of goals is plays a role of leadership.
The leadership styles are several that can be identified within each of the following management techniques as under:
There are three main leadership styles which are written as under:
- Lazier fair
The leaders tend to make unilateral decisions, limit worker knowledge and dictate work methods
Towards the goals and give sometime feed back that would be disciplinary.
The democratic are those leaders who leaders tend to involve the group in decision making, let the group determine work methods, make overall goals and use opportunity as feedback for helpful coaching.
Laissez faire managers:
Laisser fair managers give the employees complete opportunity. They provide them necessary materials to answer questions and keep away from giving feedback.
This style is ineffective.
Mr. Smith in his business follows the autocratic leadership style. However the satisfaction levels tend to be higher in the democratically led group. For his business he has to need the democratic leadership style. Because his business is growing rapidly in the UK.in this case he should allow his staffs to participate in the decision making process.
P7) Explain different motivational theories and their application within the new business.
Motivation is to satisfy the individual needs and to reach the organizational goals by inserting the willingness to exert high levels of efforts. A person's motivation is not directly measurable, but must be inferred from behavior.
Different motivational theories and their application in the new business are elaborated as under:
Maslow's Need Theory:
One is the most widely used need theory is hierarchy of need theory which has been described by Abraham Maslow. Maslow saw human needs in the form of hierarchy ascending from the lowest to the highest and concluded that, when one set of need is satisfied this kind of need ceases to be a motivator. The main parts of this theory are described as under:
- physiological needs:
- safety needs:
- belongingness needs:
- esteem needs:
- self actualization needs:
Five need categories suggests the constitute a hierarchy. First the individual in the any organization motivated to satisfy the physiological needs. The individual as long as remain unsatisfied they motivated to fulfill them. When these needs are fulfilled then individual moves up the hierarchy and become concerned with security needs. This process continued even that individual reaches the next level self actualization level. For the new business these needs are very important and the business remains profitable when its work force main needs are fulfilled.
McGregor's Theory X and Theory y:
Douglas McGregor developed this theory. He described two distinct way of working in the organization.
- Theory x:
- Theory y:
In the assumption of this theory the employees are dislike working, are lazy and avoid taking the despicability and coerced to perform.
He described in this theory that employees are creative and take the responsibility of the working conditions.
- Existence Needs
- Relatedness Needs
- Growth Needs
- The composition of a work group has a strong bearing on the group's ultimate success, so careful
- Consideration should be made in making group assignments
- Group performance stops rising and even possibly declines as group size increases.
- Job Satisfaction
- Deviation in the Workplace
- Personnel Selection
For the new business or currently running business Maslow's theory need for hierarchy is more useful.Maslow has a broad applicability in the business world.
P8) Assess the relationship between motivation theory and the practice of management.
The motivation identifies the basic needs of the employees to satisfy them at the work place. it is true that employees wants to fulfill the basic needs when they start their job. The both terms practice of management and motivation theory has a positive relation with each other.
There are two main motivation theories are Maslow hierarchy of needs and Alderfer's ERG(existence,reletedeness,growth) theory.
According to McGregor's theory y that the workers do not like work and the responsibility of the work. in the Maslow point of view that the workers basic needs(wages,rewards,salary) if the company fulfill they will be motivated
The practice of management has always reflected the times and social conditions, so many organizations are responding to technology break through and developing Web-based operations. These new business models reflect today's reality: information can be shared and exchanged instantaneously anywhere on the planet.
In the Mr. Smith restaurant there is some weaknesses about the using of power. Because MR Smith could not create the suitable atmosphere for the workers.
P9) describe the nature of groups and group behavior within organizations.
The nature of groups and group behavior within organizations:
The nature of the groups situation is in which groups are superior to individuals. it occur when problem solving can be handled by a division of labors. Groups' helps organizations to accomplish important tasks. They help to maintain high quality of workforce by satisfying members need.
In the group they got the synergy which is effective for the organization.
Members may be attracted to a group for a number of reasons. Which are like the activities of the group, the goals and purpose of the group because the groups satisfy an individual need for affiliation. There are some features of the groups are as written as under.
In puts of the work groups:
Work Group Processes
Positive synergy: is the force that results when the combined gains from group interaction.
Negative synergy: is the force that results when group process losses are greater than any gains achieved from combining the forces of group members.
Work group types:
A formal group: are those groups which are officially combined to planned and created by organizations for specific purpose.
Informal groups: are those groups which natural social formations that appear in the work environment.
P10) Investigate the factors that will lead to effective teamwork within the new business and the influences that threaten success of teamwork.
When groups are able to achieve the organizational goals efficiently and effectively together there have teamwork.
There are five factors which are lead to effective teamwork with in the new business:
General, satisfied employees are more likely to remain in a position and to avoid absences than are dissatisfied employees.
Workplace deviance occurs when an employee voluntarily pursues a course of action that threatens the well-being of the individual or the organization. Examples include stealing, hostile behavior towards coworkers, and withholding effort. Stealing and withholding effort are categorized as organizational deviance, whereas hostile and rude behavior toward coworkers is categorized as interpersonal deviance.
that extraverted individuals are more satisfied in the workplace, because work gives them an opportunity to experience an optimal level of arousal, whereas introverted individuals are less satisfied in the workplace due to too much stimulation.
Leadership abilities are often essential in the workplace, especially for individuals who aspire to move up into the ranks of management
Leadership abilities are often essential in the workplace, especially for individuals who aspire to move up into the ranks of management
The influences of the new business which threaten success of teamwork is that an organization by naturedly is composed of individuals. Understanding the individual behavior is an essential prerequisite to the exploration of how individuals work in groups and the organization itself behaves. Organizations sometimes forget this point in the struggle for corporate survival.
The impact of the latest technology on the team functioning within new business:
The technology has a great impact in the new or running business. Because technology is a difference between the success and failure of the business in new era. Same situation is in the MR Smith's new busyness' Smith working well when they will equip the latest technology sources and latest information and technology. This will enable to his working team to control, plan and direct the activities of the chain of the MR Smith's restaurant. for the coming of the new technology they will manage their separate marketing HR,sales,ICT,accounting and finance and purchasing departments.
That will be a positive effect on the MR Smith's new business.