Friday, December 6, 2019

Kudler Fine Foods free essay sample

Organizational Behavior University of Phoenix Kudler Fine Foods is a local upscale specialty food store in the San Diego metropolitan area. The company has locations at La Jolla, Del Mar, and Encinitas. Kathy Kudler is the founder and President of the company. The organizational behavior aspects of Kudler Fine Foods will be examined and explored specifically in regard to its apparent organizational culture, organizational structure, impact of leadership, and causal agents that could effect organizational change. Apparent Culture at Kudler Fine Foods â€Å"Organizational culture is a system of shared values, assumptions, beliefs, and norms that unite the members of an organization† (Gomez-Mejia Balkin, 2002, chap. 5, p. 108). An organization’s culture can be described in three levels – visible culture, espoused values, and core beliefs (Gomez-Mejia Balkin, 2002). Kudlers organizational culture will be examined in terms of these three levels. The first level consists of visible culture. That is, what an observer can hear, feel, or see (Gomez-Mejia Balkin, 2002). At Kudler Fine Foods the organization requires that its employees should be clean, well groomed, and wear appropriate clothes, including uniforms (Kudler Fine Foods, N. D. ). A neat and clean appearance is the primary manner in which the visible culture of Kudler Fine Foods is expressed. No less important is the appearance of Kudlers stores, which are designed in such a way that conveys the sophistication of its specialized products aimed at a discerning consumer populace. The second level consists of espoused values which â€Å"are not readily observed but instead are the way managers and employees explain and justify their actions and decisions† (Gomez-Mejia Balkin, 2002, chap. 5, p. 109). At Kudler Fine Foods this second level of organizational culture is expressed by managements belief that the conditions, wages, and benefits offered to employees are competitive with those offered by other employers in the area. The organization also encourages its employees if they have concerns about conditions or compensation to express these openly and directly to their supervisors or store manager. The last level is core beliefs which are organizational attitudes that â€Å"are widely shared, that operate unconsciously, and that are considered nonnegotiable† (Gomez-Mejia Balkin, 2002, chap. 5, p. 109). Kudler Fine Foods core beliefs are that customers are very important and employees should be courteous, friendly, prompt, and helpful. Employees are expected to dress appropriately and are encouraged to express opinions and concerns openly. The organizations basic assumption is that creativity and innovation are critical for success. Employees are given freedom and responsibility and managers are expected to delegate important tasks to subordinates. Employees are encouraged to work together and communication is the key to success. Organizational Structure of Kudler Fine Foods â€Å"Organization structure is a formal system of relationships that determines lines of authority (who reports to whom) and the tasks assigned to individuals and units (who does what task and with which department). The vertical dimension of organization structure indicates who has the authority to make decisions and who is expected to supervise which subordinates. The horizontal dimension is the basis for dividing work into specific jobs and tasks and assigning jobs into units such as departments or teams† (Gomez-Mejia Balkin, 2002, chap. 10, p. 232). There are several elements of the vertical dimension which include the unity of command, authority, responsibility, and accountability, span of control, centralization and decentralization, and formalization (Gomez-Mejia Balkin, 2002). The three approaches of the horizontal dimension are functional, divisional, and matrix (Gomez-Mejia Balkin, 2002) . Every organization whether it is big or small has some form of organizational structure because without it a company would be unable to operate effectively. Kudler Fine Foods is a small company that operates in three different locations. Each location has a store manager and the structure of the stores is divided into departments. Four department managers oversee their corresponding department assistants and floor associates. The primary organizational structure trait at Kudler Fine Foods is the horizontal dimension. The daily work of Kudler Fine Foods is clearly divided by the tasks performed and those tasks are then subdivided into appropriate task-related departments. The President, Kathy Kudler, is the final decision maker, however she does allow her staff to make some major decisions within their designated store locations and departments. Because Kudler offers a variety of products and services to their customers, Kathy Kudler demonstrates the divisional approach of the horizontal dimension throughout her organization. The departments are separated into sections and those who specialize in that particular area are placed in the appropriate department. The Influence of Leadership at Kudler Fine Foods The leadership style at Kudler is autocratic with most of the decisions made by the President, Kathy Kudler. The President has developed the vertical dimension of the organization to a point where she personally makes most of the decisions up and down the chain of command. This is shown in the 2003 strategic plan where the risk assessment and mitigation strategy indicates that the founders health is one of highest risks to the corporation (Kudler Fine Foods, N. D. ). The lack of a unified purchasing system and Kathy Kudlers control over every purchase is additional proof of the autocratic style of leadership. Kathy Kudler has an emotional tie to the power structure at the store. This is evidenced by the manner in which legal decisions are made for the corporation. Ms. Kudler has the final say on every incident as to whether it will go to her lawyer or not. The store managers have some authority in determining the severity of the incident, however there is a flexible informal decision line that is blurry. The result is that Ms. Kudler makes most of the legal decisions. In addition, the attorney for the company is Kathy Kudlers sister-in-law who specializes in tax accounting. The personal tie and close association with a decision maker who does not specialize in the type of law needed by the corporation shows the Presidents tendency to keep decisions about the company personal. The vertical silo of authority at Kudler Fine Foods has worked well for the company while it has remained small. The last store to be brought online is the most underperforming store which could be a symptom of Kathy Kudler reaching the limit of her span of control (Gomez-Mejia Balkin, 2002). Furthermore, the comment in the strategic plan that highly paid employees are compensated by allowing them to take home excess food and how staff leaving have a direct effect on productivity shows an unstable workforce (Kudler Fine Foods, N. D. ). The communications from the support staff show an openness to approach Kathy Kudler with questions, ideas, and concerns. The communications between employees also show a willingness to solicit ideas for problem solving. This style of management and problem solving engages the employees in decision-making, but does not give them the authority to make decisions. This suggests a relationship-oriented leadership style. Ms. Kudlers main relation to line staff at each store is in hiring and firing. The relational disconnect between decision makers and line staff is probably a source of tension at Kudler Fine Foods. Potential Change Events at Kudler Fine Foods There are numerous internal and external factors driving change at Kudler Fine Foods. Many of the risks to Kudler Fine Foods are outlined in the 2003 strategic plan. The strategic plan shows that the threat of competition from existing or new entry stores has not yet been a major factor in the company’s development and the ability to obtain supplies is not a major risk to the corporation. The local economy surrounding some of the stores has caused difficulty with sales and retaining qualified staff. The threat of environmental cataclysm remains a possibility, but it is a threat to competitors as well (Kudler Fine Foods, N. D. ). Therefore, the external factors’ driving the growth of the organization is the economy and human capital. Within Kudler Fine Foods, there are many internal driving factors for change. The first is the analysis that the intern has completed. The suggestions made from this internal audit will be given directly to the owner of the corporation. The second is solving the staffing situation. The ecognized problem with retaining and hiring qualified staff is a critical issue for the organization. The ability to solve this problem is going to create change in the way that business is done at Kudler Fine Foods. The next motivating factor for change is continued growth. The problem with not having a unified purchasing system and a centralized power structure is going to drive a more structured power scheme within Kudler Fine Foods. This is going to move som e of the decision-making away from the center and may result in a team-based focus. Using Fiedler’s contingency-based model in conjunction with Ms. Kudlers relationship oriented leadership style would be one of the best possible solutions for Kudler Fine Foods continued growth. Conclusion Kudler Fine Foods is a small business that specializes in a niche product and geographical market. Because of the relatively small scope of Kudler Fine Foods operations, an intimate, extremely vertical control can be exerted by Kathy Kudler, who is, essentially, the only member of senior management. However, the future growth of her company may very well necessitate the implementation of a more team-based approach to daily operational management decisions as well as a more consultative manner in which to make strategic decisions. In order for Kudler Fine Foods to expand more efficiently, Ms. Kudler will need to adopt a more detached managerial tact.

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