6.1 Learning Outcomes:
- Explain why managers need to align organizational culture, structure, and HR practices to support strategy.
- Explain how to characterize an organization’s culture.
- Describe the process of culture change in an organization.
- Identify the major features of an organization and explain how they are expressed in an organization chart.
- Describe the eight types of organizational structure.
6.2 Action Required:
Tim Lew founded the PentaValley car-hire business six years ago. He started out as a sole trader with just three vehicles. His business now employs 33 people and it has a fleet of 2000 vehicles. Tim is chief executive. He has four fellow directors. They are in charge of finance, vehicle repairs, marketing and administration. The latter role includes dealing with all staffing matters. The finance director has three accounting assistants. The director in charge of vehicle repairs has two supervisors who report to him – one for the day and one for the night shift. They each have six mechanics working under them. The marketing department contains four people – one sales manager and three junior sales assistants. Administration has six office staff who take all the bookings and are responsible to an office supervisor who is under the direct control of the director.
This type of structure has served the business well, but Tim is concerned about the impact of further expansion on the organization. In particular, he is planning two developments – one would involve renting trucks to other businesses and the other would be setting up a new office in another country.
6.3 Test your Knowledge (Question):
- Sketch the current organizational structure of Penta Valley Cars Ltd. Include all staff on your chart.
- Do you think the current structure is appropriate for the business? Give reasons for your answer
- Answer the question available in the “Test your Knowledge” section.
- Post your answer in the discussion board using the discussion link below
(Week 6: Interactive Learning Discussion)