In this essay, the definition of organizational culture will be depicted along with the factors determining the Organizational culture of Woolworths. Woolworths possess a positive organizational culture with their principle to treat people with dignity and respect. Moreover, the procedure through which the organization culture affect the personality, the challenges the organization face will be carried out. Lastly, some of the recommendation that Woolworths should consider will also discuss.
Martin (2014) defines that the term organizational culture resembles the shared values and assumption of an organization that also represents the general behavioral approach of the employee towards the organization. Moreover, some factors determine the organizational culture- symbols, rituals, story, control and power link (Alvesson 2012). Liliana et al. (2015) depicts that the symbol signifies the leadership principles that an organization possesses. Moreover, rituals highlight whether the organizational culture enhances the perception and working ability of the employee. Martin (2014) depicts that organization’s story symbolizes the nature of the business that is whether the policies, procedures and work environment is effective to promote the organizational culture. In addition to that, control and power link resembles the scenario, where the efficiency of the organization to communicate with the client is measured, and the recruiting and selecting the right types of employees is executed respectively.
It is further analyzed by Liliana et al. (2015) that organizational cultures help in greater job satisfaction, employee-and-customer engagement and results in superior job performance. Woolworths have some priorities that are Building a customer and store-led culture and team by generating sustainable sales momentum in the supply of food (Woolworthsgroup.com.au 2016). The concerned organization also renews their store’s programs and fixes their basic operations on core customer offer so that better products and services can be provided to the organization. In this way, they can create a future that can fulfill all the customers demand.
Janicijevic (2013) mentioned that following all the legal obligations and accomplishing all the business proceedings ethically, makes the employee associated with the organization for a longer time. Thus, they place the customer on the priority list and listens to their demands along with treating their employee equally irrespective of their different races. This resembles that they also value diversification among their employee, follow all the legal obligations of work, health and safety policy, fair pay systems, and do not discriminate against them.
The challenge that the organization faces is the confliction among the working personnel as it is not possible every time to include employee while planning some policies for better organization’s culture (Cummings and Worley 2014). Moreover, Harper (2015) highlight that the too many structural layers diminish the effectiveness of the communication of the employee with the managing authorities. However, it is recommended that this adversity can be overcome by the including all the employees in the decision-making process by conducting regular meeting and conferences. If possible, it is better to provide a glimpse of the upcoming organizational policies to the employees. Auh et al. (2014) portray that this regular meeting not only helps Woolworths to provide importance to all their employees but it will also reduce the conflicts among the working personnel along with the better communication between the managers and the employees.
Thus, it can be concluded that employees are the key stakeholder to carry out the organizational culture and they are the people, who are intended to serve their best in meeting the customer’s demand. Thus, behaving well with them and provide them values for their effort is a crucial obligation. A problem with conflicts and poor communication among the managing authorities and employee can be overcome by hosting regular meetings for discussing activities related to organizations culture and procedure.
Organization Structure and Strategy
In this section, the concept of organization structure and strategy along with its importance will be discussed. Application of six elements of the organizational structure will also be illustrated which will be followed by the divisional and functional structure of the Woolworths. Challenges in implementing the organization structure, its associated recommendation will also be discussed in this essay.
Rothaermel (2015) highlight that a business structure is nothing but a formal layout of the hierarchy of the organization whiles the business strategy signifies a practical plan for achieving an organization's mission. The relationship between these two aspects is that in order to accomplish the organization’s layout, effective strategies have to be implemented (Ashkenas et al. 2015). The importance of the organizational structure has evaluated the effectiveness of the decision-making, way of communication and the performance of the employee.
The six key elements of the organization structure are- work specialization, departmentalization, chain of command, a span of control, centralization/decentralization and formalization (Williams 2013). In Woolworths, the work is divided into different stakeholders like suppliers provide the products that are stored in their retail stores, the employee sell these products to the customers and the managing authorities evaluate the entire process. The departmentalization for Woolworths comprises of the following elements:
In addition to that, product departmentalization resembles the how each manager is responsible for an area within Woolworths and is illustrated in the diagram below:
In context with the geographic organizational structure, the geographic regions structure of the company is represented according to the geographic regions where Woolworths is operating current and is represented below:
Moreover, in the context of the chain of command, Woolworths applied three concepts of authority that are to tell people what to do in order to obtain organizational culture along with the obligation to perform any assigned duties. Ashkenas et al. (2015) highlight that regarding span of control, higher product quality is emphasized more and thus stricter rules have to be implemented. Woolworth’s follows the decentralization approach, which resembles that lower-level managers are capable and experienced at making decisions. They can directly communicate with their higher authority. Lastly, Daft (2012) depict that recruitment of effective employee signifies the Woolworth’s approach towards formalization that is carried out in several steps like a screening of their applications, hosting of interviews and then assessments like situational tests. The challenge in this case, Woolworths face is the communication among the regional vice presidents of Woolworths that is recommended can be overcome by regular meetings and using of advanced technology like video conferencing so that updates in organizational functionalities can be discussed properly (Liliana et al. 2015).
Thus, it can be concluded that Woolworths has their key performing centers in Australia but is intended to grow to other locations like New Zealand and India. The problem in arranging the organizational structure is the communication between all the managing authorities that can be overcome by regular contacts and implanting the concept of knowledge sharing.
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Janicijevic, N., 2013. The mutual impact of organizational culture and structure. Ekonomski Anali/Economic Annals, 58(198), pp.35-60.
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Williams, C., 2013. Principles of management. South-Western/Cengage Learning.
Woolworthsgroup.com.au., 2016. Strategy and objectives - Woolworths Group. [online] Available at: