Franchisor's Decentralised Structure

ANSWER 3A

Profit maximization, Growth and Expansions are the one of the main objectives of every organisation. In order to achieve that goal, Employees should be clear about their roles and responsibilities. In that case the structure of the organisation plays very important role. An organisational structure is a logical arrangement of tasks, duties, and roles and responsibilities with the aim to achieve the predetermined objectives of the organisation. It is broadly categorised into centralised structure and decentralised structure. In centralised structure, it is only the TOP management who takes the decision and that is passed on to their subordinates. In decentralised structure, the respective department are given autonomy to make their

These small franchisees will have their one or more outlets.

As shown in the above image. The key aspect on the Franchisor’s part are approach to market, systems & processes, training & support, and expansion through franchisees. Same as the key elements on franchisees are capital, Labour/ Employees, Commitment to follow system, and Risk/ Reward of owning a business.

So, there are various reasons why Employees loyalty is seen less in this Business Model:

• NO Direct Hold on the Employee: - The franchisor doesn’t have a direct control over the Employee of the franchisee. Many times the franchisee fails to convey the organisation’s vision, values and ethics to the employees who are face to the customers. I.e. the behaviour of the cashier at Mc Donald will create an image about the company.

• Less Skilled Workers: - Generally, The Employees are not very skilled and since the franchisor doesn’t have a direct hold on them. It is very difficult to retain them, train them and motivate them.

• Less Salary: - when the employees have less pay, for a small hike also they quickly shift their

It is company’s organisation culture that makes it a good place to work. If we want to influence employee’s behaviours and attitudes, we can do it by proper flow of communication from the top to the bottom. This totally, depends upon the leader’s vision and their communication to with subordinates. Leaders who are successful in motivating their subordinates to accomplish the vision and objectives set by the organisation are the trend setters.

Organisation’s values, beliefs and behavioural norms are reflected in its culture. The organisation is a set of employees. Every employee’s behaviour influences the organizational outcome, Whereas Leadership implies the Authority. It is based on objective and subjective factors such as managerial ability and personal qualities of the leader. Leadership behaviour of a manager is closely related to work satisfaction of the employees.

The core value of the organisation starts with its leadership. Subordinates will follow these values and behaviours of the leaders. A strong organisational culture emerges when a strong unified behaviour, values and beliefs have been developed by the leaders. Leaders have to appreciate their duty in maintaining organisational behaviours. In this way, a dynamic Leader becomes successful in reducing conflicts and in creating healthy environment for