In report, we have discussed the managerial and organizational structure of Abraham’s Grocery stores. As per case study, there is huge organizational coordination and communication issue between departments. There are administrative management approaches selected or advice by the management councillor of the company. The efficiency and effectiveness needed to the organization to improve their managerial structure. This case study is related to Abraham’s grocery store which is started in year 1967 by Abraham siblings Bill and Doris. This grocery store mainly deals with good quality of meats and other produce. In the financial year 2007, Abraham’s stores has been expanded their business with 200 stores and appointed 4 regional manager who are responsible for 50 stores individually (Samson & Daft, 2015). But with the expansion of business stores controlling the quality of the product is becomes difficult. The major issue faced by the organization is related to their lack of control on operational activities and turnover of the company.
As per case study of Abraham’s grocery, there are mostly four managerial functions planning controlling, coordinating and communication etc. The business advisor of Abraham’s grocery suggested that proper planning for segmentation of department required so that company can find out the proper solution for their products quality control and also expand their business by providing same quality of goods to their customers which is affecting the turnover of the company (Daft & Marcic, 2016). There are mainly four main managerial functions needed by the company to improve their business activities are proper planning to run their business operation, quality control activities, proper coordination between all the departments runs the operational activities in the company and effective communication system which necessary at first. How these managerial functions works in Abraham’s Grocery stores are following in nature:
Planning for proper administrative structure: according to the case study, planning of creating a proper administrative structure for the organization is necessary as we have study that company has been enhances their business with 200 stores in 2007, but due to these many stores and lack of proper managerial planning was not able to maintain their products quality. If company will plan the proper organizational structure for their business operation and maintain the business hierarchy properly will help the organization to grow in future with better profitability (Daft & Marcic, 2016). As per the planning the appointed consultant of the company has been recommended that if Abraham’s grocery store follow the hierarchy structure which will be like Chief executive officers Abraham and sister Doris will be considered as higher level hierarchy and under them there will 4 regional managers who are responsible for 4 districts each individually. In district there will be one district store supervisor, one district meat manager specialist and one district produce manager specialist to run their business operations properly.
The company owners can also go with the planning for selecting an organizational approach which can be vertical functional structure, divisional structure and matrix structure which can properly represent the proper line of authority and relationship between every segment of the department. Whereas now the organizational structure followed by the grocery store chain is Chief executive officer of the company, 4 Regional managers under them there will 4 districts individually and each district will have district store manager assisting grocery department manager or store manager, on the other hand, district meat manager specialist will handle the overall department by assisting meat department manager. And last but not the least, district produce manager specialist will help the produce department manager under them which makes the complex managerial scenario in the organization and hamper the work scenario.
Controlling the quality of products supplied by the company: As per the study and consultant recommendation, if company will be in process to enhance their organizational structure which can be directly helpful for them to work with their quality of goods and services they are providing to their customers (Taylor, 2016). There are several processes which can be only manageable in the organization if company is working well with their organizational structure. This organization is started declining in the market due to their lack in quality in the provided goods. The control in quality of goods required all the administrative changes by which process quality checks will be easier for the higher management.
Coordination between departments and hierarchy: As we can see that there are proper coordination between all the departments are really necessary. As it is a grocery supply store requires proper coordination between department in different regions and districts to maintain their customer base (Taylor, 2016). The entire data base of the company can be shared by the all stores for providing the basic details about the customers. If there will be problematic scenario in between these departments will be decline the overall business operations of the company.
Proper communication within organizational structure: There are proper coordination needed between different departments of the company, so that they can easily discuss the changes going on in the organization and also possible changes needed to manage the quality of goods and products sell by the company in different districts (Taylor, 2016). It is also advised to the chief of the company that proper communication can make the better coordination and strength within an organization. The company should connect their all department and sub department through electronic portal or medium for better communication and less confusion towards changes in the organization.
Management Approach Selected by the Abraham’s Grocery Store
As per the study, if company will select the administrative management approach will be helpful for the organization to manage their organizational structure and other scenario accordingly. According to the case study, if the company has been focusing on their managerial structure and hierarchy, this will be supportive to them to control their miscommunication, conversation gaps and other activities because of which they are lacking with their business operations and customer oriented services. As we have seen that company was really gone through a difficult organizational structure which is mainly Chief executive officer of the company, 4 Regional managers under them there will 4 districts individually and each district will have district store manager assisting grocery department manager or store manager, on the other hand, district meat manager specialist will handle the overall department by assisting meat department manager (Samson & Daft, 2015). And last but not the least; district produce manager specialist will help the produce department manager under them which makes the complex managerial scenario in the organization.
This matrix structure is complex and really lengthy in terms of monitored by the higher level management. If company will go with the new organizational structure which comes under administrative management approach will be helpful for the company to enhance their business activities. The new organizational structure which needs to be approved by the higher authority should be Chief executive officers Abraham and Sister Doris will be considered as higher level hierarchy and under them there will 4 regional managers who are responsible for 4 districts each individually (Samson & Daft, 2015). In district there will be one district store supervisor, one district meat manager specialist and one district produce manager specialist to run their business operations efficiently.
The Role of Efficiency and Effectiveness in Managing the Enterprise towards Improvement
According to the study, we have found that, as company is started from a small grocery store and expanded their business in different districts with 200 stores with huge amount of customer base. We can see that company’s strategies are good enough to enhance their business growth in future but due to improper organizational structure and lack of proper managerial guidelines, company has been from quality control issue, which can be reduces by proper planning of organizational structure and implementation. Every department of the organization is responsible for their part of activities. The best team work and effort will be fruitful for the company in terms of better operational efforts. Abraham’s grocery store has been already proven that fact that best efficiency and effectiveness will be supportive for the organizational improvement in future. As company is using proper planning to manage their organizational structure and controlling their quality of goods and services provided to the customers and proper coordination and communication will be effective in terms of handling the chain system business operations.
As per the case study discussion, The Company has been recommended to form a proper organizational structure which can manage their business activities effectively. On the other hand, the better managerial control will be supportive to the organization for the improvement of their turnover and quality control.
The overall case study report has been concluded on the points that initially company Abraham’s grocery store has been faced many issue which are related to organizational structure, coordination between teams and miscommunication and quality checkups issue. For that company has been gone through a proper advisor who has been suggested a proper administrative changes in the company which will be helpful in the perspective of turnover growth and managerial effectiveness. It is also suggested that every hierarchy of people will be responsible for their list of duties and need to report their next higher management in case any issue they face or suggestion for growth.
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