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Table of Contents ............................................. .................................................... ............................. 2 Introduction ...................... Abstracts.......................... Abstracts................................................. ................................................ ......................... 2
The Great Man Theories ............................................................3 The Trait Theories...................................................................3 The Contingency Theories ..........................................................3 The Situational Theories............................................................4 The Behavioural Theories...........................................................4 The Management Theories..........................................................4 The impact of managerial style on organisational effectiveness ...................5 Motivational theory ..................................................................5 The Theories of Job Satisfaction ....................................................6 Motivational theory and implications ..................... ................................... .........................7 ...........7
Organi"ational Beha#ior
Theories relating to work relationships relationships and interactions..........................8
The simple structure.................................................................8 The bureaucracy structure ..........................................................9
Fahad Umar Abstract: The aer contains a detail anal!sis of organi"ational beha#ior discussing issues facing cutting age organi"ations on leadershi beha#ior$ organi"ational e%ecti#eness$ organi"ational structures and human resource resour ce management& The aer further anal!"ed the structur structure e and culture of Coca'Cola Coman! (ith emhasis on issues relating to ric)s and uncertainties in the coman!*s decision ma)ing& +ecommendations are laid based on the stud! to address the coman!*s issues and align decision'ma)ing (ith the coman!*s structure& structure&
The Matri Structure ..............................................................10 Stratford Collage Of Business and Management UK
The importance of organisational culture theory in developing organisational effectiveness........................................................................10 !nalysis of how organisation can facilitate innovation and creativity"..........12 The importance of learning in an organisation ...................................14
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#ffectiveness #ffectiveness of teamwork .........................................................15 .........................................................15 Team development"................................................................15 #ffect of management change in an organisation ................................16 The culture and structure of Coca$Cola Company ...............................17 !pproaches !pproaches to organisational decision$making..................................20 Management approach to risks and uncertainty decision$making ..............20 %rganisational decision in Coca$Cola Company.................................22 Conclusion and recommendations ................................................22 &eference ...................... .............................................. .................................................. ............................. ... 23
Introduction
According to Fombrun (1984) Leadership can simply be defined as a complex process of leading people toward attaining some certain predefines goals and obecti!es" #hroughout human history people had always being stri!e for leadership position" $uring the twentieth century% people became more interested in leadership position" &n the early beginning% leadership theories were based on 'ualities that differentiate leaders from followers while successi!e theories were based on !ariables% which include sills le!el and situational factors" #hese theories are classified into eight different categories some of which will be e!aluated"
The Great Man Theories
#he phrase *reat +an, is being used during the time when leadership position can only be attain by male especially military leaders" #his theory belie!es that leaders are born with their internal re'uired leading 'ualities not created% 'ualities includes charism charisma% a% intelli intelligen gence% ce% sills% sills% confid confidenc encee etc" #he #he theory theory also assume assumess that that those those 'ualities can be inherit which is why a people use the common phrase -born to lead. signifying that leaders are born not made" *reat +an theories usually portray leaders
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as mythic and heroic" /owe!er% the theory also belie!es leaders are destined to rise and proclaim the leadership position whene!er the time comes"
The Trait Theories
#he trait theories is similar to the great man theories% the theory also belie!es that people inherits some certain leadership 'ualities but it,s the traits that shaped these inherited 'ualities and shaped them into a better suited leaders" #his theories identifies some common leadership 'ualities shared by !arious leaders% 'ualities includes self0 confidence% courage and extra!ersion% which could be lined to some great leaders" /owe!er% these 'ualities mentioned abo!e could potentially be found in people and yet they could be disco!ered not to be seeing for any leadership positions"
The Contingency Theories
ontingency theories laid more emphasis on some precise en!ironmental !ariables that are consider to be determinates of leadership style suited for the situation" #he theories suggest that there should be no general leadership style suited for all situations but rather the success of leadership style depends upon the number of precise situation be it in 'uality of followers or state of en!ironment"
The Situational Theories
2ituational leadership theory suggested that leaders mae the best decisions based on situational !ariables" #he theory also suggested that implementing !arious types of leadership styles would be more suitable maing different decisions" For instance% a situation where the leaders happens to be the most educated and experienced in the decision maing council% authoritarian leadership style might be the best practice or in
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Organi"ational Beha#iour a situation where the council members are also educated and experience as the leader% democratic leadership style might also be the best practice"
The Behavioural Theories
3eha!ioural leadership theory is the opposite of *reat +an #heory% the theory is laid upon the belief of made leaders" #hat leaders are made not born" As from the name beha!ioural% the theory emphasied more on the leaders actions not mental or internal 'ualities" #his theory strongly suggested that anyone could learn to be a leader through some certain obser!ations and studies"
The Management Theories
#his is also nown as the transactional theories% laying more emphasis on the importance roles of organisation% performance and super!ision" #he managerial theories recommended a leadership style based on rewards for the good and punishments for the bad% this form of leadership style is mostly adopted in business organisations where employee id being rewarded for good performance and penalied for failing"
The impact of managerial style on organisational effectiveness
As asserted by 3ratton and *old (1999) se!eral leadership theories ha!e been considered in creating more effecti!e organisation o!er the time" 2ome researchers suggested that employee can be moti!ated only if their personal matters are pleased while other researches argue that employee can be moti!ated through creation of strong relationship bond between the employer and employee" 5arious theories ha!e made a serious impact in increasing employee performance in many global organisations"
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+anagerial theories ha!e pro!en to be !ery effecti!e in impro!ing organisational performance o!er the years6 the theories include many features that are to be considered and followed in managing organisation" Features such as employee specialiation that has to be considered before tas is being assert to the employee% secondly is the employee,s capability as to his desire to wor and the which of the wor best suited the employee" 2o also positi!e feedbac to employee can ser!e as a moti!ation% which will prompt the employee to perform better with positi!e frame of mind" Furthermore% salary is considered to be one of the maor moti!ations for employee" 2alary on time will ensure ob deli!erance on time6 this will impact the organisation as a whole by bringing its operations up to speed"
Motivational theory
#he word moti!ation is deri!ed from a latin word -moti!us. meaning a mo!ing cause which signify to the process of acti!ating the psychological moti!e of an indi!idual" 5arious theories are being put & place for studying indi!idual7team moti!ation% some of which include theories of +aslow (194) and /ertberg,s (199) both theories are based on psychological need while 5room,s (19:4) based his idea of moti!ation on a process theory of intrinsic and extrinsic moti!ation" #hese researchers ha!e made a huge contribution in e!aluating the moti!ational theories and its impact on ob satisfaction and employee retention"
The Theories of Job Satisfaction
;ob moti!ation can simply be define as a psychological dri!e that indicate the beha!ioural direction of employee in an organisation% which are measured by three factors% le!el of effort% le!el of persistence and direction of beha!iour"
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Organi"ational Beha#iour #he beha!ioural direction of employee is measured by the degree an employee chooses to perform on the slated tas assigned within the organisation6 the degree of performance of an employee on a gi!en assign tas measured the le!el of effort and when an employee faced a challenge or an obstacles what determines his persistence is whether the employee ga!e up or continue" +oti!ation is a significant factor that enhances the le!el of persistence of an employee" +oti!ated employee are highly needed in organisation% in a highly competiti!e global maretplace moti!ated employee are more producti!e and will contribute to the effecti!eness of the organisation" #hese are some of the reasons why effecti!e managers are expected to identify what moti!ate their employees within the context of their !arious tas"
Motivational theory and implications
For effecti!e managers% impro!ing organisation,s employee performance is !ery much significant to the de!elopment and impro!ement of the organisation" #his can be expressed as
Ability &n impro!ing employee performance as well as the organisational performance% a pleasing woring en!ironment is needed to be created% which will support and encourage employee to wor consistently toward achie!ing organisational goals and obecti!es% this will also increase the le!el of their competence" ?!er the years researchers ha!e in!ested a lot of time extensi!ely de!eloping theories as to what moti!ate or demoti!ate employee% most of which shows that the ey factors that persuade employee moti!ation are two% which are indi!idual and complex" +ore
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also the concept has been categoried into intrinsic moti!ation and extrinsic moti!ation" #he intrinsic moti!ation is nown to be internal self0granted moti!ation% an employee sense of satisfaction7achie!ement by engaging in acti!ity he7she enoy" @xample is% if learning new things is the inner dri!e of an employee then% engaging in a creati!e% de!eloping or sills tass might be a moti!e force for the employee" ompleting these interested tas will brings a feelings of profound inner ob satisfaction to the employee% especially if the rele!ant tass are in contrast to learning new things" ?n the contrary% extrinsic moti!ations are considered to be external moti!ators" #hese include salary% praise% promotion% bonuses% security% other incenti!es% punishment and withdrawal of pri!ileges to mention few" #hese moti!ators are usually being determined at the top management le!el of an organisation liewise the moti!ation impact is relati!ely low and reciprocal"
Theories relating to work relationships and interactions
#heories as to wor relationship and interactions firstly ha!e to do with organisational culture on !alue chain and strategy" ?rganisational culture signifies to the total beha!iour of an organisation toward the employee and the relationship between employee and employee" /owe!er% !alue chain is the total process of inflow of goods7ser!ices into and out of the organisation to the final consumer" +anagers use the !alue chain framewor to analye and plan the strategy to be implemented in managing resources" 2trategies is usually based on resource allocation% which if an organisation is cultural oriented managers do in!ol!e employee in de!eloping strategy% this will gi!es manager !ariety of choices to base the strategy on"
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Organi"ational Beha#iour
Characteristics of different organisational structures
odmann (BCC4) ?rganisational structure refers to the formal formation% grouping or coordination of tas" &n structuring tas managers consider the following six factors% which include wor specialiation% formaliation% span of control% chain of command% centraliation and decentraliation" #he three basic structures that most organisations are using are the simple structure% bureaucracy and matrix structure"
The simple structure
3ased on the upper mentioned six determinates of organisational structure% a simple structure can be characterised with wide span of control% low le!el of departmentaliation% low le!el of formaliation and centralied authority single person mostly" #his structure is mostly common to small businesses with two7three !ertical le!els% loose amount of employee with total le!el of authority centralied to single indi!idual" 2ome other ey characteristics of this structure is that% the structure is simple% the structure is fast% the structure is flexible and the structure is relati!ely inexpensi!e to implement with clear accountability" /owe!er% as the organisation grow bigger this structure is not ad!isable to implemented because% decision0maing will e!entually be slow down due to low le!el of formaliation and single centralied authority"
The bureaucracy structure
2tandardiation is the main characteristic this structure is built upon" #he structure is characteried by high le!el of standardiation% highly routine tass% operations re'uired specialiation% high le!el of formaliation% limited spans of control% authority
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is also centralied% decision maing re'uired to follow strict chain of commands and lastly tass are grouped into fully functional departments" #he structure is highly efficient by putting specialise personnel together in the same departments and highly standardied7formalied operations centralied the decision0maing" /owe!er% this structure can as well promote conflict which could result functional department to put more attention in achie!ing their !arious goals rather that the organisational goals as a whole" ?ther obstacle that the structure might encounter is in its explicit concern in formalities% in this regards there is no room for modification% the structure is only efficient in as long as it,s confront familiar dimensions of processes and problems"
T'e (atr)* +tr,ct,re #his structure is mostly found in ad!ertising agencies% research agencies% consulting firms% uni!ersities% entertainment industries% and go!ernment agencies to mention few" #he structure is characteried by merging two structures of departmentaliation such as product and functional" &t,s similar to bureaucracy in a way by combining specialists simultaneously to gi!e a!enue for sharing of ideas across products" #he structure pro!ide employee with clear assigned responsibilities by breaing units of concept" e!ertheless% high challenge in coordination,s is liely to occur due to di!erse functional operations"
The importance of organisational culture theory in developing organisational effectiveness
+any scholars ha!e de!eloped an organised cultural framewor for organisational effecti!eness% but minute consensus has being made as regards to a general theory" According to $olan and *rarcia (BCCB) #he fact that culture is di!ers and complicated phenomenon !arying from practices% beliefs% assumptions and perceptions on whether
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Organi"ational Beha#iour culture of an organisation can be measured in a relati!e sense" Furthermore% research on the relationship relating culture and effecti!eness of an organisation is also minute due to high le!el of misunderstanding on measures of organisational effecti!eness among scholars" /owe!er% in the early 8C,s $eal and Dennedy (198B) made a significant research on strategic importance of culture in an organisation and its significant impact on organisational efficiency% which was letter expanded on the importance of organisational adaptability to en!ironment as well as culture" #his intensi!e chain of research from E:4 organisations de!eloped an explicit theory of culture and organisational effecti!eness with a !alid measurement method by $enison and +ishra (199)" #he theory recommended four cultural traits that are related to criteria for organisational effecti!eness% these are consistency% in!ol!ement% adaptability and mission" Further studies shows that traits of consistency and mission are best used in predicting profitability% so also trails of adaptability and in!ol!ement are best used in predicting inno!ation whereas trails of mission and adaptability are being used in predicting sales growth" e!ertheless% importance of organisational culture in de!eloping organisational effecti!eness can be laid on the four criteria mentions abo!e" +ission" @ffecti!e organisations possess clear unambiguous mission statements that define the organisational sense of purpose liewise the direction that also defines the strategic goals and obecti!es" #his expresses the !ision of how the organisation is anticipated to be in future and any change in the underlying mission will simultaneously result to a change in other phases of organisational culture"
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&n!ol!ement" An effecti!e organisation engage in in!esting on human capital de!elopment at all le!els at the same time empowering its people% secondly an effecti!e organisation is nown to be built on a solid foundation with an explicit guiding rules and regulation" #he managers% employee and the executi!es are expected to be dedicated to their !arious assign tass with the mindset of owning a portion of the organisation and when it comes to decision maing people at all le!el are expected to get in!ol!e in a way% this will mae e!eryone feel their wor is important and will mae an impact in achie!ing the organisational goal" onsistency" An organisation with strong effecti!e cultures of well coordination% well integrated and highly consistent has a high tendency of being effecti!e" 3eha!iour is embedded in a set of core principles% and a silled way of negotiation between leaders and followers e!en when they posses different point of !iew" #his consistency is considered to be !ery powerful foundation of stability and organisational internal integration as a result of a shared degree of common mindset and high le!el of conformity" Adaptability" /ighly integrated organisations are usually the once that resist change be its internal or external" ?rganisation adaptability is often dri!en by the organisation,s customers% taing rics and learning from self0mistae with high potential and experience of adapting and creating change" ?rganisations of this nature are now to be in a continuous change of system% reason behind this is to impro!e the organisation,s total abilities to support and pro!ide their customer,s !alues"
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Organi"ational Beha#iour !nalysis of how organisation can facilitate innovation and creativity"
As suggested by 3urns and 2taler (19:1) &nno!ation is something that maes companies great% not ust about the inno!ations but how corporate comfortably accepts and welcomes new ideas and rics" $i!ersity of employee could facilitate inno!ations due to different ideas shared among people with di!erse experience% sill sets and mind0sets" A di!erse employee collection is considered to be a fuel for organisational inno!ation and a ey to employee,s ability to adapt different categories of people" ?rganisational willingness to consume certain amount of calculated riss is another factor that will facilitate inno!ation in the organisation" ?rganisations decision maers should be willing to accept some risy !entures in order to promote inno!ations and maintain balance" +ost times inno!ation arise surprisingly usually when an organisation is being challenged with issues such as competiti!e pressure% new go!ernmental policies% budget challenges% leadership change to mention few" haracteristics of organisations that promote creati!ity and inno!ation 1" *rowth focussed this in!ol!es organisation with high long0term goals and obecti!e but determine to achie!e in short term with a!ailable limited resources" B" /igh 2ensing organisations that ha!e high sensing abilities as to opportunities and threats% such organisations usually carry out <@2#L analysis on fre'uent basis" " ommitted to technology organisations that are committed to de!eloping their technology and long0term commitment to new de!elopment in technology" 4" &nno!ation process awareness organisations that are fully aware of processes in!ol!e in inno!ation and gi!es indi!iduals chance to bring their ideas to table"
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According to ;oseph 5 creati!ity is mainly going beyond boundaries in de!eloping ideas% be it is technological% economical% social norms% nowledge% existing practices or beliefs" reati!ity is being used to add !alues to the organisation% be it in it social% economical% aesthetic or psychological" reati!ity is the main factor for inno!ation% and facilitating this factor means that the organisation create an atmosphere fa!ourable for employees to be able to transform their ideas into practice% used their nowledge to generate new ideas% analyse a!ailable options and mae decision on how to implement those ideas"
The importance of learning in an organisation
According to 3ratton and *old (1999) #he primary reason for organisation pro!iding learning to their employee is to ensure employee,s full capability in carrying out their assign tass within and outside the organisation% some trainings are mandatory relati!e to health and safety organisational issues which the organisation will e!entually benefit from in one way or the other by ha!ing a more highly silled and nowledgeable employees" ?rganisations that are de!oted in bringing a positi!e change by impro!ing profitability% efficiency and producti!ity ha!e to go beyond such mandatory trainings and consider rele!ant learning and de!elopment acti!ities that will help employee in maximiing his7her potentials there by pro!iding the organisation with a more !aluable input" 2upporting learning and de!elopment could be strong competiti!e ad!antage for the organisation6 this stands out their employee in terms of sills and nowledge" #his issue raised a strong argument as to organisations should in!est on
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Organi"ational Beha#iour de!eloping their employee so as to gain the benefit of ha!ing a more efficient employees and distinguish themsel!es from competitors" /owe!er% pro!iding learning and de!elopment training to employees alone do not guaranty the impro!ement of the organisation% !arious factors are expected to be considered in supporting employee learning and de!elopment" Factors such as the content and medium of deli!erance% is it in line within the context of organisational !aluesG And what positi!e impact will it ha!e on the organisation as a whole" #hese 'uestions ha!e to be addressed properly and fully before engaging employees" +any scholar argue that learning and de!elopment programs are only effecti!e if it,s con!ey in practical approach and transferred bac to organisation" Furthermore% many organisations are ac'uainted with the importance of rendering learning and de!elopments through an accredited certify body"
#ffectiveness of teamwork
An organisation comprised of people sharing common mission combined in a structured and organied conduct with the aim of achie!ing some certain pre0define goals and obecti!es" For a team to be effecti!e% members are expected to possess 'ualities as asserted by Hilins (198) some of which include 1" B" " 4" " :"
+embers should fully understand their !arious positions within the team" +embers should be committed to their assign tas" At any gi!en time% it,s team leader that gi!e a directi!es on direction" +embers should wor to achie!e the team success not for indi!idual success" #hey should support and be concern with each other,s wellbeing" +ember should put in their best to success"
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e!ertheless% the success of a team lies beyond the dimension of the members but in the extra0dimension of team dynamic% which is team formation" &ntensi!e research has been made on the subect -#eam de!elopment. which will be discussed below"
Team development"
#eam begins when group of people with different 'ualities are brought together to achie!e a specific tas together% in which case most of which are not familiar with each other" All team members are expected to declare wor practise and abilities at the same time prescribe a rule on how the team will operate by the leader% who is the person that brought the team together" #his is regarded as the forming stage% a sniffing stage when animals meet strange animals" After the forming stage% the team mo!e forward toward being an interdependent instead of depending on leader% this in now as the storming stage where e!ery team member open up their hidden irritations and obections which will e!entually bring the team into an open conflict% this is !ery necessary for a team to be effecti!e" #he next stage of team de!elopment is to use the storming stage in de!eloping crisis remedy at the same time mo!ing the team to be more producti!e" Furthermore% for a team to be fully effecti!e% its norms ha!e to be clear and accepted by each and e!ery member which is the next stage of the team de!elopment% this will prompt team members to feel secured with each other and commit to woring together in achie!ing team mission" Following these stages% it is achie!able to build and sustain an effecti!e team" e!ertheless% effecti!e managers are expected to be able to structure and sustain a team where each and e!ery member is committed to the success of the team"
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Organi"ational Beha#iour #ffect of management change in an organisation
According to $olan and *rarcia (BCCB) +anagement change is a systematic ad!ance method that enable employee of an organisation to transit from their present state to a desired future state" &n the absence of ade'uate management change in an organisation% the organisation is exposed to high rics of falling in implementing new business strategies% operating models% or newly impro!es cost efficient operations" For an effecti!e management change both formal and informal in!ol!ement of all parties% this is to ensure that leaders dri!e employee all through the transition to adapt to the new changes and at the same time enlighten them on the benefits that come along with the changes" #echni'ues and tools for management change are becoming more sophisticated and pre!alent so also the rate of special silled professionals is increasing" #he success of management change is measured by some attributes% which includes employee focus% systemic% formal and informal pedals and performance management" For a management change to be effecti!e% the change should not alter employee beha!iour in the organisation% secondly is that the change should be systemic in such a way that new barriers are totally understood before implemented" ext it,s the formal and informal pedals% pre0defined opportunities for worers that will help in shaping the transformation through peer0to0peer and informal networs% this will significantly add !alue and balance the integrated change" /owe!er% it is also necessary to dri!e management change in formal organisational processes such as reward management% recruitment processes and performance management to mention few" #he impact of change in an organisation is that the tempo of change will continue to increase6 this is a great re'uirement for an organisation to perform in a sustainable manner and organisations of this nature ha!e the propensity of capitaliing on future
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opportunities" /owe!er% organisations that constantly oppose change are usually being exposed to increase cost and slow transitions"
The culture and structure of Coca$Cola Company
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(http77www"iarm"co"il7articledetails7B:B) #he oca0ola ompany is the world largest multinational be!erage company at the same time the world number one producers and mareters of soft be!erages drins and the company with the most !aluable and recognised brand globally" #his success of the company rotates around fi!e ey factors% which includes recognised brand% 'uality% mareting% a!ailability and inno!ation" #he company is structured on a global le!el with flexible adustment features so as to comply with its regional marets sensiti!ity" #he structure is not only based on its internal factors but it also includes external factors that include their bottling subordinates" #he company produces syrups and concentrates which are being sold to the authorised bottling companies that ha!e the mandate to produce% maret and distribute products to the final consumers% this process is nown and ?A0?LA 2I2#@+" #he external relationship with its bottling subordinates is one of the company,s ey strength% the oca0ola company wor hand in hand with the bottling companies to ensure compliance with product re'uirements% 'uality and ser!ices" ?rganisations may be structured on its function% product or process" #he function reflect on its distinct specialism be it in production% mareting% finance or distribution while the product reflect directly on it product and the process could be in its
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Organi"ational Beha#iour manufacturing% pacing% storing or deli!ering" /owe!er% organisational structure is usually design in order to meets its aims" &n this regards a structure should be design to accommodate different ideas sharing within the organisation and flexible decision0 maing and a proper management control" A multinational global organisation lie the oca0ola ompany has a flexible structure that not only focused on product% mareting% distribution of finance but also profoundly encourages team wor in each of their inno!ations" &n e!ery product de!elopment example oca0ola Jero% the company assemble an employee team of different specialities to analyse all the possibilities" &n such teams% mareting specialists is expected to shed light on the result of his7her maret research in regards to the new product% food technologies to clarify the changes and how feasible the new product is while the financial expert is to gi!e report on the financial implications as regards to the new product" Aside from structure% an organisation is expected to ha!e culture" An organisational culture describes the norms and !alues of the organisation in its dealings with both internal and external subordinates" #he oca0ola ompany also based its culture on enhancing and empowering its employee% this is so because the company consider employee as its most !aluable asset" +oti!ated employee are often the engine dri!e in mo!ing an organisation forward% the oca0ola ompany often organise its employee into teams in carrying out there operations" #his maes the employee feel !aluable within the team by contributing different ideas on proposed operations at the same time by being inno!ati!e" #he company by this strategy create a friendly and inno!ati!e culture% which made it possible for the company to depend on its worforce in maintaining it brand
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reputation globally" Furthermore% trust is being established as part of its culture" #his is !ery important in e!ery relationship% as regards to the oca0ola ompany" ustomers put their trust on the company to pro!ide good 'uality product and high le!el of attention to customer,s needs% bottling subordinates trust the company to operate in the best interests of oca0ola 2ystem and so also the employee,s trust their !oice will be heard and their !arious contributions are being !alued" An open free communications is belief to be a means to sustain culture% based on that the oca0ola ompany pro!ide a good number of communication channels thus6 monthly leadership team meetings and worers team brief sessions% departmental team meetings holding on weely basis% each region ha!e a consultati!e group with one @uropean council representati!e and lastly% fre'uent sur!eys are being sent out to monitor employee,s complains or suggestions"
!pproaches to organisational decision$making
According to orneilssen (BCC8) $ecision0maing is a significant factor in e!ery good and successful organisation% the 'uestion still remain on how can good decision be madeG, one portion of the answer is rele!ant information and good interpretation of the information" onsulting an expertise could also be a good ad!antage so also ability to admit wrong" #here exist !arious logical aids and approaches to decision0 maing% which of these is the bestG #he 'uestions is not as simple as it sounds% there are many references that made a situational suggestions on decision0maing but still there has not been clear agreed best approach in this regards" 5ersion0led approach in this approach decision is
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Organi"ational Beha#iour precisely depends on the person with the !ision% and if for instance something went wrong he7she lea!es the organisation that decision is liely to be abandon"
Management approach to risks and uncertainty decision$making
#he management of an organisation are often challenged with situations of uncertainty and ris" $ecision0maing being a process to reduce or eliminate the tendency of rics and uncertainties occurring% with that being noted% its clear that decision managers are the dri!ing force in eliminating the extent to which an organisation faces rics and uncertainty" Kics and uncertainties both play a significant role in decision0maing but its important to note out the difference% in decision0maing uncertainty 'uite simple effect by slowing decision" sually when managers are confronted with such uncertain circumstances% they hold their decisions and put some measures to reduce the uncertainty le!el before maing a final decision% which clearly delayed the
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decision0maing" Kis on the other hand% is another form of uncertainty that in!ol!e loosing at different le!el depending on the result yield by the decision" +anagement approach to decision0maing with rics and uncertainty should in!ol!e some parameter to identify and measure the le!el of rics in!ol!es% this will allow the organisation to now the exact business ric in!ol!e in the decision0maing" 3usiness rics includes operational ris% legal rics% financial rics and strategic rics" After the management ha!e identify the type of rics in!ol!e% its expected of the organisation to 'uantify the le!el of the ric" &n this stage organisation should mae certain of the cost to be encounter if the ris pre!ail% this could be mathematical in some cases of financial rics" A general formula that is being used in calculating ris is as follows Kis = ((probability of ric outcomes) > anticipated lost as result of outcomes)" &n management decision0maing it is highly re'uired of the organisation or the management rather to be able to manage% transfer and contain rics% this will define the potential of the management in handling and containing rics"
%rganisational decision in Coca$Cola Company
As studied by #aylor (BCCC) oca0ola ompany organisation decision has to do with the board members" #he members of the board are being elected by the company,s shareholders to assume responsibility of protecting their interest and to ensure the success of the company" #he board members ser!e fundamentally as the ultimate business decision0maing board of the company% only for those decisions that needed the consultation of shareholders" #he board are positioned to o!ersees senior officers of the company and are being expected to guide and ad!ice them in safeguarding
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Organi"ational Beha#iour company,s asset% maintaining absolute control with proper go!ernance and following rule% regulations and laws" Furthermore% in maing decision the board member are expected to consider e!ery single factual details and possible circumstances before proceeding into conclusion" ?ne of the main responsibilities of a director on decisions is to exercise their absolute udgment and to act in accordance to what they reasonably belie!e to be of best interest of the company as well as the shareholders" #he corporate le!el of the company in!ol!es fi!e hierarchic le!els% the team consist of eight operating directors form !arious di!isions% and this made it possible for the board to get wide range of suggestions on decisions"
Conclusion and recommendations
#he oca0ola ompany has an organised structure that foster employee in!ol!ement in all its aspect except for decision maing which is considered to be a relati!ely inade'uate decision0maing practice in a global company of that nature" #he company,s decision maing practice does not match with any of the company,s practices% the company operate on a decentralied practices only for the decision0 maing" #he company can impro!e its decision0maing practises firstly by fre'uent switch of directors to handle rele!ant tass% this will enable them to thin outside the box in gi!en suggestions to the board on decisions" 2econdly% the company should operate decision open door policy by in!ol!ing !oluntarily employees in suggesting to their !arious line directors on their ideas on how to go about sol!ing a proposed problem and also to propose on possible problems that are about to erupt" #his will gi!e
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ORGAN!ATONA" #$%A&OR
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decision0maing board the ability to widen their possibilities on solutions and to tacle small problems before growing bigger"
&eference
Bratton and 4old 532226 7Human Resource Management Theory and Practice Sage ublications 9td$ 9ondon Brian ordmann 5,00.6 7Organizational Structure htt:;;(((&stud!mode&com;essa! Burns T& and Stal)er 53236 7The management of Innovation Ta#i Stoc)$ 9ondon ile!$ e( !or)& ?sraeli Association of +ic) Managers 7Creating an e$ective organisational structure: % case study of Coca"Cola
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Organi"ational Beha#iour Com&any +etrie#e Ma! ,0$ ,03. htt:;;(((&iarm&co&il;Articleil)ins O& 5328-6 7'(cient Culture: ')&loring the Relationshi& bet!een Culture and Organizational Performance Administrati#e Science =ournal
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