4HR018-Organisation Structures for Effective Podar World

College
Management

JAM
Chain of Restaurants

●UID NO.

●- 1827160
●- 1818533
●- 1825762
 INTRODUCTION TO JAM

Pure Veg Quick Service

Founded in 2012
Restaurant Restaurant

Mission
Vision Values
Captivate our
To be one of the -To make high
patrons with the
top chain of quality food.
best taste but
also make use of restaurants -Create a
the freshest having its hygienic
available presence environment.
ingredients in worldwide,
serving high -Respect all
ultra modern
quality and stakeholders.
kitchens.
hygienic food.
 Network Structure (Current)

Features:
Drawbacks:
● Specialization is High
● Coordination problems
● Span of control is Narrow
● Loss of control among the employees
● Chain of command is Short
● Loose of Contractors due to lack of loyalty
● High centralization
● Lack of Secrecy
● Low Formalisation
● Sacrificing of Profits
● Decision making is fast

Marsden, Peter V. & Lin, Nan. (1982)

 Matrix Structure (Suggested)

Features Advantages

● Specialisation is High ● Clear articulation of project objectives

● Span of control is Narrow
● Chain of command is short
● High Departmentalisation
● Low centralisation
● More Hierarchies
● Faster communication
● Fast decision making
● Lower formalization
● Higher motivation
● Higher Specialization

Anon (2013) Matrix Structure.

 Suggested Approach: Henri Fayol’s 14 Scientific Management Approach (1916)
Authority & Responsibility- When a
manager of a particular region has delegated a
certain target to an employee of JAM group of
restaurant , then he/she has been given the
authority to do so. Responsibility is when the
manager taken into account the progress of what
the employee has made at frequent intervals.
Remuneration- JAM chain of
restaurants , workers rate of pay depends
on multiple factors like work efficiency,
no. of holidays taken, no of customers
they serve,for instance- Piece Rate Wages
Division Of Work-If an employee of
JAM is specialised at cooking or is a
chef, then he/she won’t be asked to wait
on a table or have a managerial job. They
will be asked only to cook ,as it is their
area of specialization.
Initiative- When the employees are
allowed to express their opinion, more
new and creative ideas can be found out,
directly helping JAM chain of
restaurants to grow and expand
Uzuegbu, C. P & Nnadozie, C. O (n.d.)
 Denison, Daniel R. (1997)

Organizational Effectiveness (Suggested)

Achievement of Growth - Aiming to open
Objectives- Pure stores nationwide &
-Influence-
Vegetarian Quick world wide within the
Service Restaurant Personalised
next five years.
discounts,
Efficiency- Great chefs promotionals emails
and the most efficient and newsletters Competitive Advantage-
waiters, who would Product Bundling and
-External
work in ultra modern Competitive Pricing.
kitchens Benchmarking-
Strategic Market
Sustainability- The Survey, Reputation - tries to maintain
fresh food which would
Customisation of its standards and has aims for
be leftover at the end
being the most reputed chain
of the day would be Products
of restaurant for hygenic and
distributed to the poor
tasty food .
people
Suggested: European Based Theory - Tryst Murray
(1993)
• Bottom-Up Approach
• High involvement of stakeholders
• Increase in the level of creativity
• Level of efficiency Increases
• They work toward the vision, mission & and goals and try to achieve it.
• JAM would be able to achieve high level of customer satisfaction
• Goes well with the Matrix Structure & follows Person Culture
• Scope for better teamwork.
(Robert M. Grant,1991)
 Suggested: GREINER’S GROWTH MODEL (1999)

Direction- Top Level

management will direct
Delegation- State
Creativity- Being the the middle management
managers will report to
quick service restaurant will take the other
the head offices.
decision-Umbrella
Structure

Collaboration- Fringe
Coordination- High
benefits & Bonuses Growth- Merge with the
Formalisation &
could be provided to sunrise restaurants,
Communication
enhance teamwork & according to each
networks are more
encourage team region.
flexible.
performance.
Economical- There are increasing
CONCLUSION
taxes for the restaurant that is the
SGST-2.5% & CGST-2.5%. -Due to change in the demand
(Chaturvedi, 2018) and supply over the years JAM
may have to change its
Legal- They have to maintain a structure in next 3-4 years.
certain level of wage rate for ex-
Unskilled - Rs.400 per day, -If they use matrix structure it
Semi Skilled- Rs 441 per day, will help JAM to expand its
Skilled- Rs 485 per day. chain, and also enter a new
(delhi.gov, 2018) market all together.
Political- Several vegetable
-Mcdonalds also transformed
strikes which take place and
affect the restaurants, like the
its structure to Matrix Structure
prices may increase, or the which helped them a lot to
supply of the vegetables can be grow. (Mcdonalds.com, 2018)
stopped. (Sally, Krar and
Bhosale, 2018)
CONCLUSION CONTD…..

- As the current structure wasn't working out for JAM, they have changed to Matrix structure to function in a better
way.
- Suggested that Henry Fayol’s 14 scientific management approach will help in Division of work, helps in employee
initiative, Remuneration of employees and will keep balance of Authority & Responsibility.
- Organizational effectiveness gives a better idea on how the organization needs work to achieve organizational
effectiveness.
- The European based theory helps the organization to be creative, it increases the level of efficiency, works on the
Vision, mission, goal & objective and Goes well with the Matrix Structure & follows Person Culture.
- GREINER’S GROWTH MODEL (1999) states the factors that need to be taken to grow.
STATS:
- The Number of vegans has raised up by 360 per cent in the last decade.
- A trend driven by the young, fifth of 16-24 years are vegans.
- Vegetarian outlets and restaurants estimated INR 1,01,475 crore in 2016, and is
projected to grow by 15 per cent to reach INR 2,04,180 crore by the end of
2021.
- Global food and beverage launches with a vegetarian claim rose 60 percent
from 2011 to 2015.(Sharma Charu, 2017)
BIBLIOGRAPHY

BOOKS

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Available from: https://doaj.org/article/a0a40b5dc98f4a7584b27b2a13404f99. [Accessed 10 Oct. 2018]
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Oct. 2018].
WEBSITE

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[Accessed 25 Oct. 2018].
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