Investigating Business: Sainsbury PLC and John Lewis
The organizational structure to a large determines the extent to which the same given organization meets its operational objectives. It is the organization structure that determines the entire internal hierarchy as well as interpersonal relations within the organization and thereby providing the foundation onto which all other activities are established. This paper thus highlights some of the key functions of organizational structures with a case reference to Sainsbury PLC and John Lewis Partnership LTD. The two companies implement a similar organizational structure; matrix organization structure, which is often perceived to be a blend of both divisional and functional structures.
The major function of organizational structure as at Sainsbury PLC and John Lewis Partnership is that it has helped determine the character of the two organizations. Character refers to the behavior of the employees towards their stakeholders as well as their devotion and dedication towards meeting organizational goals (Nadler, 2002). The organization thus determines the source of authority and flow of command in the organization as well as directing the same flow of command. For instance, at Sainsbury PLC, the operating board under the stewardship of Mike Coupe is charged with mandate to delegate, supervise and see to it that each employee works towards the organization’s business. On the other hand, at Lewis Partnership, the founder, John Spedan Lewis, was so keen to establish a governance system that greatly emphasizes on self-responsibility. Despite the presence of divisional and departmental leaders, the employees are required to carry out a self-evaluation to ensure that they best contribute to the goals of the firm.
The organizational structure also determines the decision making organs in the organization. Sainsbury PLC is managed and run by a management board led by David Tyler. As stipulated in the organization structure, the board is therefore the major decision making organ whose main functions are to create long-term and sustainable value for the company’s shareholders. While the board has the powers to ratify and implement policies, decisions are always reached after consultations with all divisional heads (Neely, 2007). John Lewis Partnership is managed by a senior manager, Lauren Anderson. She therefore oversees all the day to day operational activities of al affiliate business of the company. The organization structure thus places her at the top most level when it comes to decision making and policy implementation. For instance, no policy can be implemented at the organization if not approved by her. The structure, as implemented removes any confusion or disorganization.
A number of changes have been implemented in the organization structures of the two organizations. When John Lewis Partnership was established, John Spedan Lewis single handedly managed the organization. He was therefore the chief executive officer, the executive manager and the founder. However, as time went by and business expanded, a number of managerial organs have been introduced in the organization as required by the matrix organization structure. Each department has its own manager and the hierarchy continues up to the senior manager. Sainsbury PLC has also seen similar changes. Given the fact that the organization has several affiliate businesses across the United Kingdom, central management has been implemented. In this case, all divisional managers are fully responsible for the performance of the business under their jurisdiction and are subsequently answerable to the senior manager. This has enhanced efficient management at the organization (Martocchio, 2008).
Another evident change at Sainsbury PLC and John Lewis Partnership that might have occurred in their respective organizational structures is the expansion of the initial structures to accommodate more staff and employees. The organization structure has thus made it possible for the two organizations to expand their businesses in the whole of the United Kingdom markets. More often than not, organizations meet numerous managerial challenges in cases where the organization structure is not flexible enough to accommodate new additions. As aforementioned, the two organizations operate on a matrix organization structure (Mills, 2007). The advantage with this structure is that it can easily be modified or adjusted to accommodate more functional and divisional managers. For instance, whenever the two firms opened an affiliate business in a different location, then the structure could be expanded in such a manner that an additional manager is added on the existing list with powers similar to other existing divisional managers. Similar, arrangements must be done to introduce other functional manager under the divisional manager. In this case, the two companies, Sainsbury PLC and John Lewis Partnership have successfully opened up numerous stores in the United Kingdom and found no hardship in integrating the management of such new businesses into the existing organizational structure.
An organization structures is undoubtedly the backbone of any organization. The choice and implementation of an organization structure will definitely determine the success of the firm. In fact, it is the structure that governs the interpersonal relations between employees as well as allocates duty and responsibility to the various stakeholders. The two firms referenced in this paper, Sainsbury PLC and John Lewis Partnership, started as single enterprises and have expanded into large organizations on the major reason that their organization structures are accommodative of such expansions.
Source: http://www.j-sainsbury.co.uk
References
Martocchio, J. J. (2008). Research in personnel and human resources management: Volume 27. Amsterdam: Elsevier JAI.
Mills, A. J. (2007). Organizational behaviour in a global context. Peterborough, Ont: Broadview Press.
Neely, A. D. (2007). Business performance measurement: Unifying theories and integrating practice. Cambridge: Cambridge University Press.
