Organizational Structure and Leadership

Organizations can be any group or institute or community which works to fulfill the common goal set by the top leaders of the organization. Organizations can be classified into various types based on the kind of work they and the stakeholders involved in business. The various types of organizations are:
Private organizations: These organizations are run by private individuals’ i.e. regular citizens of a country whose sole motive is to gain maximum profits.
Public organizations: These organizations work for the welfare of the public like education, construction of roads, military, etc. Thus, the main motive of public organizations is to perform governmental services.
Government Organizations:  These are organizations which are run by the government. The main motive of these organizations is to look after the welfare of the people. Profit making is generally low or negative in this sector, whereas most of the investment is for raising the standard of living and providing better health facilities to the general masses.
Non-governmental Organizations: These organizations are not formed by the government and nor are profit making organizations. These organizations are run by volunteers mostly for social purpose to help the poor and needy and the funds are raised through charity or by voluntary participation of other organizations or government.
Partnership: When two or more people come together to share the profit and losses together, the organization can be termed as partnership. The main motive of any partnership is to amplify their profit margin.
Cooperatives: Cooperatives are companies in which many people come together to have social, economic, and cultural benefits. The main motive of co-operatives is not always profit making. In co-operatives even customers, employees or residents can be part of the organization.
Leadership
For better understanding I am taking example of Harrods. Harrods is the one of the most popular retail departmental store. It is situated in London on the Brampton Road. There has been a great role that is played by leadership in an organization. There are majorly two types of leadership styles that are followed by the leaders:
  • Autocratic leadership
  • Democratic leadership
Autocratic Ruler is the one who makes his decisions himself and guide the team by giving instructions on what has to be done. On the other hand, a democratic leader takes his entire team into making the decisions. He asks the ideas, views, suggestions and the areas that the entire team can input his efforts in. Based on the situations and the conditions, both the leadership’s styles have been successful. Both styles have their place, depending on circumstances. For example there may be situations, where there is involvement of quick decision making or taking of instant actions, there the autocratic style of leadership is the correct application. On the other hand in the situations where there is requirement of team work and new, innovative and creative ideas, there democratic leadership is quite essential. In Harrods’ leadership objective is for creating a healthy and safe working culture which is created with the help of democratic leadership. The company focuses on the ideas, views, and suggestions given by all its employees. It applies them accordingly. These way employees feel that they are part of company decision making. Trust and respect are the major elements and parts of Harrods’ program for employee engagement.
Harrods’ Motto “Things for All People, Everywhere”
HRM could be defined as a function in an organization for enhancing the performance, efficiency, productivity and effectiveness of all employees. This department works as a strategic partner with the business functions and decision making of the company.  It does the efficient management of the employees so that the goals and objectives of the employees are mapped and aligned with that of the company. The basic components of an organization are people, place and purpose. HR helps in framing the various policies, systems, processes and guidelines that are designed suiting the requirements of the organization. The significance of Human Resource Management was realized in the 1980.
HR planning helps in designing the effective processes, policies, functions and the procedures for the company. It helps in the identification of the present and future needs of the company by making a forecast on the basis of past performance.

Impact of Polices on the European Union on Harrods

European Union plays an important role in influencing the business in most of the companies in UK including Sainsbury. Some of the policies are discussed below.
Freedom of movement of goods and services: The movement of goods and service was made free according to the EU since 1957 when the Treaty of Rome was signed. Reducing the barriers has resulted in increase of market and provides Sainsbury a larger market to target and also reduces the price which helps in increasing the purchasing power of consumer.
Freedom of movement of capital and labor: Another important benefit provided by EU is the freedom of movement of capital and labor. Thus, labor can move freely where job opportunities are more. Hence Sainsbury can offer new job opportunities to wider range of people and will have more diversified workforce to operate with which is important when the company operates in different parts of the world. Freedom of movement of capital also helps Sainsbury to invest wherever they wish to and open new stores wherever they like without any discrimination.
Sovereignty implications of Single Market: Another important policy is the existence of Single Market among EU member States. Thus, it provide Sainsbury to come out of Oligopoly type of market structure that prevails in UK retail sector and gives them wide market to operate. Single market eliminates the way differences exist in the functioning of market in different countries. It helps in standardizing the quality of product, strengthens competition, protect the consumer, etc.