Organizational Theories And Managerial Implications In Wesfarmers
Wesfarmers: Company Overview
In order to identify the structural pattern and problem solving abilities of an organization, the effective implications of organizational theories are important (Alvesson & Sveningsson, 2015). Understanding the theoretical implications in the workplace, rate of profitability can be maximized. By continuing this it can be said that ethical practices, the organizational values can be analysed. The purpose of this study to develop an effective organizational framework based on the politics, dynamics of business environment and organizational behaviour. The study is to shed light on the managerial functions in Wesfarmers and the implications strategies for bringing the changes in the workplace. By critically examining the ethical practices in the organization, social environment of the company has been analysed.
Wesfarmers Limited is the Australian conglomerate, which was introduced in the year 2914 with the retail, fertilisers, industrial safety and coal mining products. The company was developed for cooperating the Australian farmers. With the diversified portfolio, the company has established its strong image in the market. In the year 2017, the net income of the company reached a$2.87 billion (Wesfarmers.com.au, 2019). By contributing in different business operations, Wesfermers has brought various business improvements in its managerial operations. I have done my internship as the marketing executive in the company. Understanding the business operations as well as its popularity in the market, I want develop my career graph by being an active part in this organization in future.
In order to conduct the research, descriptive research design will be followed. Using the descriptive research design, it will be easier for understanding the interrelationship between managerial activities and the organizational behaviour. In order to conduct the research, positivism research philosophy will be chosen. By choosing the positivism research philosophy, it will be easier for reaching at the knowledge based scientific approach. Hence, it can be said that using the positivism research philosophy, it will be easier for me to do the situational analysis, in proper manner. In order to develop the research framework, secondary data collection method will be chosen. Using the qualitative data analysis method, the information will described. In order to collect the secondary information, different case study based on the organizational behaviour and managerial initiatives will be reviewed.
In the eight Metaphors of organization, Gereth Morgan introduced the metaphors such as machine, Organism, Brains, Cultural system, political systems, psychic prisons and instruments of domination (Driskill, 2018). Analysing the vision of the company it has been identified that Wesfermers wants to deliver the satisfactory return to the stakeholders. By continuing this it can be said that based on the analysis of the company culture, it cannot be denied that the company aims to introduce an effective business practice in which the core values such as integrity, openness, accountability and boldness can be maintained (Miner, 2015). This can be said that it follows the cultural system metaphor among the Gereth Morgan eight Metaphors (Morgan, 2016). Analysing the value of Wesfarmers, it has been identified that the company has focused on strengthening its existing business through satisfying the customer needs and operating excellence. By continuing this, it can be said that Wesfermers also aims to secure its growth opportunities by introducing the entrepreneurial initiatives (Wesfarmers.com.au, 2019). In order to achieve the primary vision, Wesfarmers focus on delivering the standard management and financial discipline so that diversified business portfolio can be properly maintained. Therefore, the values of Wesfarmers has followed the brains metaphors as the values of the company has not only focused on improving the customer satisfaction but also it aims to improve its business operations so that the company can gain benefits.
Research Design and Framework
Analysing the corporate and governance culture in Wesfarmers, it has been identified that the company has develop a successful corporate governance arrangements. The management operations in the organization are being done day by day basis. By following the autonomous business operations, the company focuses on reinforcing its group culture in the workplace (Wesfarmers.com.au, 2019). In order to run the business, the company provide freedom to the individuals. Therefore, this can be said that the corporate culture in Wesfarmers has been developed based on the in individuals’ contribution in the decision making process. Analysing the corporate culture in this company, it can be said that Wesfarmers corporate culture follow the cultural systems metaphor. As here the company tries to maintain the proper culture by involving the individuals in decision making process.
In the words of Nilsen (2015), depending on different approaches followed by the organizations, the organizational theories are being developed. By continuing this it can be said that based on the rational system perspectives, contingency theory, division of labour and bureaucratic theory have been developed. Organizational approaches are being considered as the social unit in which the people are being structured as the important part of the company. Wesfarmers commits to maintain the supportive and understanding organizational behaviour in the workplace (Wesfarmers.com.au, 2019). In case of division of labour theory, the tole of the labour has been highlighted. In order to increase the trade output, the contribution of labour class cannot be denied. As per the theory, the labour efficiency is being measured based on the occupational specialization, machines against the human labour and the avoiding the changes. In case of bringing technological improvement without compromising with the rate of productivity, the role of division labour is very important. In case of modernization theory, the cessation of traditional methods for pursuing the contemporary effective method of organization is being highlighted. In such cases, the main motive of the organization is to maximize the rate of profitability. Based on the rational system perspective, based on the two significant part such as formalization and specific goal, the specific task is being done. In such cases the workforce is being divided between manager and the labour (Daniel, 2018). As per the organizational practices the incentive structure is being considered as the effective motivational process. In this types of management practices, time is being strictly followed for maintaining the performance standard. Based on the organizational practices, Weber developed the bureaucracy theory. As per this theory, management efficiency has been developed based on the specialization and training process. In order to sustain in the modern business environment, the management rules are being developed based on the written process. In order to maintain the strong organizational culture and satisfactory business performance, the legal policies are being implemented in strict manner (Eisenhardt & Bhatia, 2017). By following the strong office hierarchy, the ethical practices are being maintained in the workplace.
Analysis of Organizational Theories
In case of Wesfarmers, mixed organizational practices are being highlighted. Analysing the structural system in Wesfermers, it has been identified that the company mostly follows the strong structural system, where the managers play an important role for providing the safety and security to the individuals in the workplace (Thewest.com.au, 2018). Therefore, by maintaining the strong business hierarchy, the company follows bureaucracy. Wesfarmers has made the strong commitment towards ensuring the board composition. Based on the mixed experience, skills and diversity, the decision making process in the organization gets influenced. In order to describe the combination skills in the workplace, the Board Skills matrix has been introduced for highlighting the arguments between the external advisors and the management team. Based on the judgemental views from the directors, development of corporate governance standards are being maintained (Sustainability.wesfarmers.com.au, 2018). By continuing this, it can be said that in case of determining the criteria of achievement, the major responsibility of the board and the management is to effectively approve the strategic direction and guide as well as monitor the business operations of the company. Therefore, modernization theory is being implemented in the organizational hierarchy. In order to avoid the risk of the company, the annual basis framework is being developed. However, the organizational behaviour of Wesfarmers, it has been identified that the company has developed various strategies in case of dealing with the behavioural challenges (Taksa & Groutsis, 2017). It is true that based on the analysis, the company need to focus on managing its organizational behaviour so that the commitment towards employment standard can be properly maintained.
Wesfarmers is committed towards delivering thee satisfactory returns to the stakeholders by maintaining the exceptional management and financial discipline. Due to its diversified business portfolio, the company has developed its business model based on the core values. Diversity is being considered as the important part in Wesfarmers management (Sustainability.wesfarmers.com.au, 2019). In case of Wesfarmers diversity has become the sensitive issue that has strong impact on the managerial performance in the managerial performance of the company. Analysing the unethical practices in Wesfarmers, it has been identified that forced labour, unauthorised subcontracting and bribery have become the common challenges in the company. After the completion of the audit in near about 3888 factories in all over the world, it has been identified that retailers face huge pressure due to the high ethical scandals in the company, which has also impacted on the food supply chain of the company. By continuing this, it can be said that due to excessive demand for the labours in all over the world, the labour crisis situation has driven the organization for involving in such unethical practices (Quik, 2016). On the other hand, it cannot be denied that in case of ensuring the employment standard in the workplace, Group wide ethical sourcing policy has been developed by the company by following the minimum standard of expectation (Campbell, 2017). In order to improve the supply chain policy and avoid the current challenges the company has focused on managing the current challenges. By continuing this, it can be said that the company aims to develop the diversified internal policy so that the gender balance can be properly developed in the organization. In order to represent the indigenous popular to the world in proper manner, implementing the diversity policy the company has extended values of individuals. In the sustainability report, the company has assured its commitment towards the diversified organizational culture. Total numbers of 4003 audits have been arranged by the company for assuring if the human rights standards are properly being implemented or not (Wesfarmers.com.au, 2019). In order to maintain the diversified culture ion the workplace, 5228 numbers of indigenous employees have been appointed by Wesfermers. Wesfermers believes that diversity can help the company to satisfy the needs of all types of customers. On the other hand, it is true that by implementing the LGBTI strategy in the workplace, the company has tried to shed light in case of ensuring community engagement towards the development process (Sustainability.wesfarmers.com.au, 2019).
Conclusion
In this study, it can be concluded that the organizational structure brings strong impact in the trade process. Analysing the organizational culture and structure of the company it has been identified that the company has identified strong managerial practices. By following the strong management practices the company aims to provide satisfactory performance in the global market. However, in the analysis, it has also been identified that due to unethical practices in the workplace, the negative impact on organizational culture has driven the dissatisfaction among employees. In order to deal with the situation, the company has adopted the ethical policies so that the situation can be easily handled. As per my understanding, the community engagement policy which has been adopted by the company can bring the strong impact in its ethical and diversity practices. On the other hand, analysing the organizational structure and governance of the company, I can say that due to proper management function, Wesfermers can be able to maintain its growth consistency in the competitive business environment.
Reference list and bibliography
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