Organizational structure- Example of Asda supermarket

Business organizations are set up in order to fulfill the requirements of its various stakeholders. Some of the key stakeholders for the business organizations include customers, shareholder, management, employees and governing bodies. It is important to understand how organization divisions need to set up to meet business objectives. These divisions would ensure focus on the various organizational objectives. An organizational structure defines how various functions in the organization are set up so that overall business functioning can be aligned. In order to understand we would take the Asda organizational structure chart. The organizational structure of Asda supermarket can be given as under which is mainly a mixture of hierarchical and functional organizational structures.

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Asda Organisational structure

Unit 3 Organizational behavior with Asda Organisational structure

HND business management coursework is divided into various units wherein students are given theoretical and practical knowledge on various business-related aspects. Unit 3 OB deals with the way organizational structure plays an important role in order to decide the organizational success in the present age. Also, the relationship between organizational structure and culture is explained in detail in this unit. HND Assignments offer high-quality assignments for Unit 3 Organisational behavior for Asda.

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Organizational behavior is concerned with the study of organizations and the individuals in the organization on a generic basis. The different implications organizational behavior leads to the impact of organizational culture and structure on the performance of an organization. The structure of an organization comprises of the sector in which the organization operates and the size. The physical resources utilized by the company and the number of people employed by the organization form the size of the organization. Since there are different structures depending on the nature of business as well as the sector of operation, organizational structures are classified into divisional and functional organizational structures (Eldridge & Crombie, 2013). The functional organizational structure is dependent on the variation in the theoretical perspectives associated with technology. The functional organizational structure is intended for organizations which deal with products involving superior technological expertise for production. Divisional organizational structure intends to divide the organization into smaller operational units which are supported by necessary resources. Employees are responsible to report to a hierarchy of authority (Fernández et al., 2012). This report highlights the relation between organizational structure and culture and the organizations considered for the report are Asda and British Airways. Asda is counted among the top banking services firm in the United Kingdom while BRITISH AIRWAYS stands as a competitive health service provider. The latter also possesses a formidable brand image on the domestic platform.



Organizational structure is an imperative facet of every organization and comprises of major aspects of the organization. While some researchers point out that organizational structure is an outline of the classification of authority and the resultant organizational hierarchy, the contribution of external as well as the internal environment cannot be neglected. The organizational structure primarily determines the chain of command and hence the facet of leadership is essential in evaluating the nature of the organizational structure. Since Asda and BRITISH AIRWAYS are organizations with global outreach, they impose stringent rules and regulations alongside the implementation of formal organizational structures.

Asda ensures transparency in its chain of command and hence the line of command and execution is maintained perfectly. The different levels of command allow refined prospects for decision making in Asda. The structure implies a decentralized approach in which many people in the organization have to report to multiple persons. The organizational structure of Asda is characterized by the flexible work environment and sharing of values and beliefs (Goldman & Bounds, 2015). This factor also complements the geographic expansion of the company and the integration of apt structure according to the location. On the contrary, BRITISH AIRWAYS implements a higher degree of formality in the structure through strict official standards. The humongous size of the organization and its operations are responsible for the official standards in the organizational structure. Hence BRITISH AIRWAYS aims at integrating dynamism in the decision making processes through senior managers and field staff. Therefore, the organization has turned to the use of smaller groups which could work in unison with senior management to complete tasks in exceptional cases (Bowditch, Buono & Stewart 2007).

The organizational cultures of both organizations are also distinct. The culture of Asda is inclined towards empowering employees so that they can provide services to customers effectively and protect the interests of various stakeholders. BRITISH AIRWAYS follows a strict organizational culture in order to ensure fair transactions, maintenance of standards and capitalizing on successful ventures (Neergaard & Pedersen, 2015). While Asda empowers employees to serve customers in a competent manner, BRITISH AIRWAYS enforces rules and standards for acquiring precision in the service provided to customers. The differences in organizational structure and cultures are reflected in the performance of the organizations in their respective sectors.


Organizations and their performance are equally dependent on amiable coordination between organizational culture and structure. The different impacts of the relationship between organizational culture and structure on organizational performance can be illustrated in the context of distinct facets. The evaluation of the impact of organizational culture and structure on performance is dependent on factors such as employee empowerment, the individual attitude of staff and the diversity in the workforce. The behavior of employees is subject to the effect of an organizational structure since they acquire the inherent traits of the industry. Integration of provisions for employee empowerment is a responsible practice on behalf of Asda. The organization provides authority to managers operating on lower levels of the organization which results in comprehensive management and customer satisfaction (Chan 2002). The motive of Asda is to facilitate excellent services to customers for retaining market share. The organizational structure is designed to respond to every demand of customers through a flexible interface which facilitates easier communication and improved ways to resolve issues of customers. The impact of culture on organizational performance is also predominantly noted as stronger organizational cultures guarantee higher levels of performance in an organization (Van Vuuren & Wörgötter, 2013). The competition in the market for Asda is intense and hence customer management is executed through the implementation of a culture dedicated to the improvement of proficiency of employees and the services for customers. Selection of an appropriate culture is a mandatory process for every organization and it has to be done meticulously according to the requirements and resources of the organization. It has been found that the organizational culture of Asda is directed towards the improvement of efficiency and timely completion of tasks. Furthermore, the flexibility in Asda’s organizational culture allows optimum facilities for adapting to changing business environments.



The need for leadership for an organization is predominantly observed in activities which require coordination of employees under a single manager. Organizations have to adopt competent leadership styles according to the structure of the organization. In the case of Asda, the leaders are inclined towards improving the market share of the organization through the fulfillment of customer requisites. The key responsibility of leaders at Asda is to identify the trivial aspects which can affect the organization (Gagné & Deci 2005). The commitment of the organization to customers requires it to follow a relationship-oriented leadership style in order to ensure the commitment of employees to the organization. The other notable characteristics of leadership style followed at Asda include recognition for employees from different levels and the fairness in the practices of the organization (Goldman & Bounds, 2015). Leaders at Asda are particular about the care of employees and furthermore, they feel appreciated by working as a manager for Asda (, 2016). On the other hand, BRITISH AIRWAYS has deviated from the conventional leadership styles to adopt a supportive one. The traditional leadership style implemented by BRITISH AIRWAYS was characterized by strict regulations, lack of recognition for employees and concentrated authority (British, 2016). However, improvements have led to the adoption of supportive leaders, who encourage the participation of employees in decision-making procedures, training, and provision of opportunities for career development. Such type of leadership style assists in promoting awareness among employees pertaining to the objectives of the organization and help employees in leveraging their expertise to improve the performance of the organization.


Organizational theory and management practices are prominent aspects of every business. Generally, individuals tend to adopt theories to succeed on the professional front. However many individuals have to give up some their personal values in order to practice the theories and achieve success in professional circle. For example, the implementation of organizational theory in the financial sector indicates setting specific targets to be achieved. Similarly, an individual working in the domain of human resources would have to formulate decisions which would determine the schedule of a working day for other employees of the organization. The negative implications of adopting organizational theories in business practice include lack of attention for other domains of the business. Similarly, management theories are also known for disparities with actual practice and coordination with the personal values of employees. The instances when managers have to follow new regulations according to management theory despite their hesitation to give up their personal values and principles (Foster et al., 2015). Execution of organizational theories and management practices requires close interactions between employee and employer. This would ensure the contributions from both parties towards each other i.e. the treatment of employees at work and the level of interest of employees for the work of the organization (Greenberg & Baron 2003). Asda follows administrative theory which facilitates a comprehensive outline of the practices to be followed at the organization and directions for managers to supervise the operations (, 2016). The superior levels of management can find solutions for improvement of their job specifications and prepare strategies for achieving objectives specifically for the organization.


The general approaches adopted for managerial practices include the human relations approach, systems approach, social systems approach, and contingency approach. The human relations approach is directed towards the employees, which helps in formulating innovative tactics for motivating them and enhance the participation of employees in organizational activities. The systems approach is concerned with the internal and external environment and is associated with technical aspects of an organization. The social systems approach is related to the understanding of the individual as well as group behavior. Contingency approach is concerned with the implementation of activities which can be executed as remedial measures for activities outside the organization. Asda adopts a prolific approach to developing the expertise of employees through participative interactions (Fernández et al., 2012). The approach is primarily aligned with three profound tasks for the organization. First of all, the organization has to define existent problems and present apt solutions for them. Then the organization has to prompt employees to identify the consumer base they are serving. Employees are motivated to engage in discussions and collective activities. On the other hand, BRITISH AIRWAYS follows a highly stringent management approach which is characterized by several distinct aspects. The facets include assignment of clear objectives, planning and period for execution. Evaluation of project progress alongside a comparison of outcomes with desired results and consistent reporting and modifications in processes are also prime aspects of the managerial approach followed by BRITISH AIRWAYS (British, 2016).


This section of the report is concerned with the impact of leadership styles on motivation and the implications of different motivation theories.


The distinct leadership styles which impact organizational performance in event of organizational change are illustrated in context of two different situations in this section. The first situation pertains to the assignment of ambiguous responsibilities to employees of the organization. In such situations, the organization needs to adopt transactional leadership. This type of leadership includes assignment of leaders who can direct employees and explain the responsibilities carefully to employees through the structuring of tasks. The ordered presentation of tasks helps employees to be clear about the objectives and their course of action for completing the objectives (Jones 2010).

The second situation is related to the implementation of new strategies for the objective of organizational growth. These scenarios require a charismatic leader who can motivate employees according to achievement. Such leadership style allows clarification of the vision of the organization which helps in attaining organizational growth.


Motivational theories for improvement of employee performance include the Maslow’s hierarchy of needs, Vroom’s expectancy theory, and Herzberg’s two-factor theory. Maslow’s hierarchy of needs is concerned with the satisfaction of the needs of an employee in a specific order. The hierarchy specifies that the physiological needs of an employee are the foremost requirements to be fulfilled (Eldridge & Crombie, 2013). Thereafter the different needs of safety, recognition, self-esteem, and self-actualization are included in the hierarchy for the motivation of employees. The lower-level employees are satisfied with physiological needs such as monetary incentives while middle-level employees are concerned with the satisfaction of the needs of safety and recognition. The higher-level employees can be satisfied with self-actualization.

Herzberg’s two-factor theory comprises of hygiene and motivation factors. Hygiene is a formidable aspect of the work environment which decides the attitude of an employee towards the organization. The motivation factors include personal development, recognition, and accomplishment of objectives. In the case of Asda, there are no concerns about hygiene factors. However, the motivation factors such as personal growth need to be considered by the organization to improve performance of the organization. Personal growth can be ensured through the implementation of performance appraisals and assigning tough objectives for employees.

Vroom’s expectancy theory states that employee motivation is dependent on the employee’s perception of the assigned task and the probable outcomes (Fernández et al., 2012). The nature of objectives, as well as the availability of resources, has a considerable impact on the motivation of the employee. If the employees feel that they won’t be able to complete the task within the given timeframe and the resources assigned for the purpose, then they would not attempt the tasks which mean the decline in organizational productivity (Locke & Latham 2004).


Managers can interpret different motivation theories in the context of their industry and develop appropriate strategies to motivate employees. Managers have to determine the nature of situations in which rewards have to be provided for motivation. This helps in the estimation of the type of rewards to be given to employees for motivation such as monetary or non-monetary rewards. Furthermore, managers can evaluate the planning and distribution of resources and design performance-oriented rewards. Integration of distinct theories can be studied and applied in the assignment of duties, evaluation of processes and conduct performance appraisals. For example, managers can utilize the factor of expectancy from Vroom’s Expectancy theory to allocate sufficient resources to employees (Foster et al., 2015). Maslow’s hierarchy of needs is also helpful in framing fair reward systems according to the hierarchical level of employees. The implementation of motivation theories helps an organization, managers, and employees to resolve any biased practices in the organization.


Employees are associated with an organization to attain benefits such as monetary and tangible as well as intangible benefits. The incentives provided to employees are dependent on certain factors such as qualification, skill, and age of the employees. The behavior of employees is a crucial aspect for every organization as its impact is observed directly in the performance of the organization. The factors which modify employee behavior are job security, respect or recognition, monetary incentives, and the workplace environment. The behavior of an employee is primarily affected by the monetary incentives paid to the employee. There is no other incentive which could come as close as money in motivating employees to work better for the organization. Job security is also a prominent factor which affects the attitude of employees towards an organization. Job security assures employees that they would be retained in their positions despite any inadvertent circumstances (Goldman & Bounds, 2015). This accounts for a higher degree of job security which subsequently prompts employees to increase their efficiency as well as performance. The employees of Asda have to deal with a lot of technical issues in their work. This requires them to possess adequate proportions of technical expertise in the concerned fields. If the senior management of the organization recognizes the efforts of employees in their respective domains then employees can judge the value placed on them which prompts them to perform better and gain respect. The conditions of the workplace also have a formidable impact on the psyche of employees. Asda ensures hygienic work conditions for all employees so that employees feel comfortable working and serving customers.


This section of the report deals with the identification of traits in groups and the respective behavior patterns. Furthermore, the section emphasizes factors which are responsible for developing teamwork and the impact of technology on teamwork.


The dynamics of group behavior are characterized by the interactions between different individuals. Groups are formed as a result of interactions and hence they are classified into formal and informal types depending on the nature of interaction and purpose of the group. Formal groups are defined by the organization and are intended to achieve objectives specified for the organization. Informal groups are formed in an organization due to the interactions between employees and can be associated with friendly associations within the group (Neergaard & Pedersen, 2015). Informal groups have a considerable impact on employee behavior in an organization. The stages of group activities are crucial for deciding group behavior. The stages are formation, storming sessions, the establishment of norms, performance and adjourning.


Organization effectiveness is reflected in the proficiency of employees working in a team. Effectiveness of teams is determined through evaluation of factors such as internal and external environmental factors. The promoters of teamwork in an organization include the establishment of clear objectives, shared leadership, and transparency in communication. Shared leadership indicates allotment of temporary authority to team members in the context of decision making (Goldman & Bounds, 2015). This prospect allows convenient obligation to norms of the group and generates desired outcomes. A clear objective enables employees to specify their course of action in advance and transparent communication inhibits the scope for internal conflicts within the team.

The factors which inhibit the effectiveness in teams of an organization include ambiguous responsibilities, group cohesiveness and social loafing. Social loafing is experienced in case of employees who refrain from working towards the accomplishment of objectives. Unclear roles also prevent the improvement of team productivity since team members are discouraged due to the inability to apprehend the objectives and complete them. Group cohesiveness is a detrimental factor for teamwork since excessive cohesiveness in a group can lead to team members leveraging organizational objectives to keep the group intact.


Technology has facilitated more than the man could have ever imagined. The rewards of technology have provided convenience as well as possible means to improve communication. In the case of Asda, the impact of technology is clearly observable since it has to cater to a larger consumer base spread across the whole United Kingdom. The implementation of virtual teams has enabled Asda to continue activities despite the restraints of time and distance. This technological facility has enabled favorable teamwork through the improvement of co-operation, trust, team structure, leadership, etc. Therefore Asda should understand the implications of teamwork and structure of teams with respect to the implications of technology (Fernández et al., 2012). The impact of technology varies from team to team and also depends on the services of an organization. However, studies have reported that the functions of a team gradually improve in case of virtual teams which leads to participative activities, an association of members and information sharing. Hence technology can be trusted as a promising addition to the organizational framework for improving productivity. Use of technology in an organization can increase the efficiency of employees and subsequently it will be reflected in the performance of the organization. Asda must focus on using technology to mitigate the distance between different geographical domains in which the organization operates.


Organizational Behavior holds the key to organizational effectiveness and the massive amount of literature associated with the concepts of organizational culture and structure is a profound example of the complexity of the discipline. In the above report, the comparisons of organizational structure and cultures of Asda and BRITISH AIRWAYS are presented alongside an understanding of employee motivation and the impact of several factors on organizational productivity.


Bowditch, J.L., Buono, A.F. and Stewart, M.M., 2007. A primer on organizational behavior. Wiley.

Büchs, M., Saunders, C., Wallbridge, R., Smith, G. and Bardsley, N., 2015. Identifying and explaining framing strategies of low carbon lifestyle movement organizations. Global Environmental Change35, pp.307-315.

Chan, Y.E., 2002. Why haven’t we mastered alignment? The importance of the informal organization structure. MIS Quarterly Executive1(2), pp.97-112.

Dixon-Woods, M., Baker, R., Charles, K., Dawson, J., Jerzembek, G., Martin, G., McCarthy, I., McKee, L., Minion, J., Ozieranski, P. and Willars, J., 2013. Culture and behavior in the English National Health Service: an overview of lessons from a large multimethod study. BMJ quality & safety, pp.bmjqs-2013.

Eldridge, J.E.T. and Crombie, A.D., 2013. Sociology of organizations. Routledge.

Fernández-Muñiz, B., Montes-Peón, J.M. and Vázquez-Ordás, C.J., 2012. Safety climate in OHSAS 18001-certified organizations: Antecedents and consequences of safety behaviour. Accident Analysis & Prevention45, pp.745-758.

Foster, L.A., Wiewiora, A., Chang, A. and Tywoniak, S., 2015, December. How does Complex Adaptive System theory inform Innovation in Complex Project-Based Organisations? In ISPIM Innovation Symposium (p. 1). The International Society for Professional Innovation Management (ISPIM).

Gagné, M. and Deci, E.L., 2005. Self‐determination theory and work motivation. Journal of Organizational Behavior26(4), pp.331-362.

Goldman, G. and Bounds, M., 2015. Ethical Conduct in Business Organisations: The Opinion of Management Students in Gauteng. Entrepreneurial Business and Economics Review3(1), pp.9-27.

Greenberg, J. and Baron, R.A., 2003. Behavior in organizations: Understanding and managing the human side of work. Pearson College Division. (2016). Barclays | 325 years of banking expertise. [Online] Available at: [Accessed 22 Jun. 2016].

Jones, G.R., 2010. Organizational theory, design, and change. Upper Saddle River: Pearson.

Klöckner, C.A., 2015. Promoting Pro-Environmental Behaviour in Groups and Organisations. In The Psychology of Pro-Environmental Communication (pp. 179-196). Palgrave Macmillan UK.

Locke, E.A. and Latham, G.P., 2004. What should we do about motivation theory? Six recommendations for the twenty-first century. Academy of management review29(3), pp.388-403.

Neergaard, P. and Pedersen, E.R., 2015. Corporate Social Behaviour 6.Business, Capitalism and Corporate Citizenship: A Collection of Seminal Essays, p.54.

British (2016). About the National Health Service (BRITISH AIRWAYS) in England – BRITISH AIRWAYS Choices. [Online] Available at: http://www.British AIRWAYSEngland/the British Airways/about/Pages/overview.aspx [Accessed 22 Jun. 2016].

Van Vuuren, J., and Wörgötter, N., 2013. Market driving behavior in organizations: Antecedents and outcomes. South African Journal of Economic and Management Sciences16(2), pp.115-141.



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