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ORGANISATIONAL STRUCTURE

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Josh Gacutan

on 16 September 2014

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Transcript of ORGANISATIONAL STRUCTURE

Public Company
Industry: Property Development Shopping centre management
Founded 1960
Founders: Frank Lowy and John Saunders
Areas served: Australia, Brazil, New Zealand, United Kingdom and United States
Employees 4000 staff worldwide (2010)

Source:
http://en.wikipedia.org/wikiWestfield_Group
Westfield Group
Major source of income is from retail therefore Westfield:
Handles all aspects of managing a retail property
Designing
Constructing shopping centres
Leasing retail space
Profit maximisation is key to Westfield's success.
Management Role

Source:
Stephen P. Robbins, 2012. Fundamentals of Management: Essential Concepts and Applications (8th Edition). 8 Edition. Prentice Hall, pp129-153.

Asset Management
Development Design and Construction
The leasing and national shop openings division
The Property and Facilities Management division
The Centre Management and Customer Service division
The Marketing Division focuses on:
The Sales Division
Westfield.com


Source:
Stephen P. Robbins, 2012. Fundamentals of Management: Essential Concepts and Applications (8th Edition). 8 Edition. Prentice Hall, pp129-153.

Business Support
Human Resources, IT, Research, Legal and Finance divisions provide specialized functional support for the Westfield Group.
Corporate Affairs
Retailer Relations
Business Development Team
The business improvement Group


Source:
Stephen P. Robbins, 2012. Fundamentals of Management: Essential Concepts and Applications (8th Edition). 8 Edition. Prentice Hall, pp129-153.

Case Study Q.4:
How could Westfield use its organisational design to encourage a learning organisation?
Learning organisation: one which has developed the capacity to continuously
learn, adapt and change.

Source:
Garvin, D. (2008). Is Yours a Learning Organisation, from Harvard Business Review, Volume 86, pp. 109-116.
Source:
Stephen P. Robbins, 2012. Fundamentals of Management: Essential Concepts and Applications (8th Edition). 8 Edition. Prentice Hall, pp129-153.

Organisational structure

1.

Asset Management:

The asset management divisions all directly contribute to managing and generating revenue from the groups retail properties.

2.

Business Support:
The business support divisions provide the resources and information needed to execute and improve the group's business operations

Agenda
17th September, 2014
ORGANISATIONAL STRUCTURE
& DESIGN
Case Study Q.3:
How has Westfield's strategy and environment influenced its structure?
Retail Industry
Retail is dynamic:
Providing a wide range of complementary products and services in each Westfield
Continuously evolving the mix of retailers that is available in each property

Source:
Stephen P. Robbins, 2012. Fundamentals of Management: Essential Concepts and Applications (8th Edition). 8 Edition. Prentice Hall, pp129-153.

Introduction
Henry Fayol and Max Weber

Guidelines for the structuring of firms

The Six Principles:

1. Work Specialisation
2. Departmentalisation
3. Authority, Responsibility and Power
4. Span of Control
5. Centralisation v Decentralisation
6. Formalisation

Formalisation
Definition: how standardised an organisation’s jobs are and the extent to which employee behavior is guided by rules and procedures.

Westfield’s volatile environment is reflected in the changing nature of jobs






Discussion Q.2:


Of the 6 principles of design, which one do you think Westfield will need to change their approach to as the world becomes increasingly dependent on technology?





Discussion Q.1:
Google or Initech? Why?


Westfield’s operational strategy:

“Our strategy is to develop and own superior retail destinations in major cities by integrating food, fashion, leisure and entertainment using technology to better connect retailers with consumers.”


Case Study Q.1:
Which principles of Organisational design has Westfield used to develop it’s organisation structure?

How has it used these principles to design the organisation?
Departmentalisation
Definition: how jobs are grouped together; functional, product, customer, geographic or process.

Westfield's departments classified under geographic, functional and customer



Work Specialisation

Definition: dividing work activities into separate tasks.

Westfield is a changing environment

Tasks are being replaced by new ones constantly



Authority, Responsibility and Power
Definition: getting work done within the organisation. This is often referred to as a chain of command.

Upper managers outline a goal, lower managers coordinate team members to achieve it



Centralisation v Decentralisation
Definition: the number of employees managers can efficiently and effectively manage.

X<6 most effective

Westfield goes against theory, but relishes opportunities regarding cost minimisation







Span of Control
Definition: involvement in decision making for upper managers (centralisation) and lower managers (decentralisation).

Westfield = Decentralised




Westfield’s organisational structure
Adaptive

Volatile

Socially oriented

Influenced by wider community and trends





1. Question: Google or Initech?

2. Westfield Group Overview

3. Question: Technology and Design Change

4. Westfield’s Organisational Structure

5. Westfield’s Strategy, environment and structure

6. Westfield and Learning Organisations

7. Question: The future of Westfield
Organisational design

Information sharing

Organisational culture

Leadership

Discussion Q.3:


Do you think Westfield will continue to be succesful in the
future?





Sources:
“The move to the online world for the retail within Westfield group could occur in future years.” Source: (Stephen, 2012)

YouTube, (2014). Westfield Labs Vision Video. [online] Available at: [Accessed 13 Sep. 2014].
Future?
1. Online shopping
2. Westfield Labs






Master Reference List
Dick, H and Merrett, D. (2007). The Internationalisation Strategies of Small-Country Firms: The Australian Experience of Globalisation. 1st ed. Sydney: Edward Elgar Publishing, p.310.

Garvin, D. (2008). Is Yours a Learning Organisation, from Harvard Business Review, Volume 86, pp. 109-116.

Mobilemarketingmagazine.com, (2014). [online] Available at: http://mobilemarketingmagazine.com/wpcontent/uploads/2014/05/westfield_labs_horizontal_logo_final-1.2_AT61.jpg [Accessed 13 Sep. 2014].

O’Reegan, N., Nandakumar, M. and Ghobadian, A. (2010). Business-level strategy and performance: The moderating effects of environment and structure. Management Decision, 48(6), P.908.

Lowly, P. and Lowly, S. (2014). Westfield Group – Co-Chief Executives’ Review. [online] Westfield.interactiveinverstorreports.com. Available at: http://westfield.interactiveinvestorreports.com/co-chief-executives-review [Accessed 14 Sep. 2014].

Stephen P. Robbins, 2012. Fundamentals of Management: Essential Concepts and Applications (8th Edition). 8 Edition. Prentice Hall, pp129-153.

YouTube, (2014). Google interns' first week. [online] Available at: [Accessed 12 Sep. 2014].

YouTube, (2014). Office Space TPS Reports.Zonar. [online] Available at: [Accessed 12 Sep. 2014].

YouTube, (2014). Westfield Labs Vision Video. [online] Available at: [Accessed 13 Sep. 2014].

Westlondon.com, (2014). [online] Available at: http://www.westlondon.com/wp-content/uploads/2014/03/westfield-logo.jpg [Accessed 13 Sep. 2014].

Wikipedia, (2014). Westfield Group. [online] Available at: http://en.wikipedia.org/wiki/Westfield_Group [Accessed 12 Sep. 2014].
Frank Lowly AC, Westfield Chairman


External environment:

Socio-economic
Geographic/Cultural
Changing trends and preferences


Westfield Labs - a new division (Westfield.com)

Created in response to environmental influence
Full transcript