Organizational Structure and Culture of Rolls Royce
Rolls Royce is a technology and global leader. They employ 35,200
people and operate in 48 countries.
Headquarter is based in England UK. Large manufacturing plants are
located in American, Singapore and China. A hierarchical
structure is used to manage the company. As a giant company, they
choose hierarchical structure to manage the company. It is a
traditional and effective structure for Rolls Royce to supervise and
develop the business. The Group managed by detailed systems and
procedures due to the large turnover. Their annual turnover is Â£5645
million. And the group enjoys 25 percentage of the engine market in
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HR staff responsible recruits and select people. Divide of
labour and specialization can be applied so that it increase the
working efficient and reduce operation cost. Clear lines of
responsibility and control functions are clear.
Disadvantage of hierarchical
Too many layers in the group, it is difficult and time consuming to
communicate between employees. Decision making are not quick enough to
react to the market.
A role culture is adopted in Rolls Royce Group.
Role culture is typically for a large organisation like Rolls Royce.
It defined job roles clear to all the employees in the Rolls Royce
group to carry out. A number of functions are divided in the group
such as: HR function, research and develop function, financial
function etc. and the role culture in Rolls Royce are emphasis on
rules, routine and procedure and job tends to be more important than
It reliance on rules and procedures.
The Company requires the directors to prepare financial statements for
each financial year, which give a true and fair view of profile and
loss in their divisions. The directors are responsible for preparing
the annual report and the directorsÂ’ Remuneration report.
Tasks are clearly defined
They set up task clearly in order to fulfil quality of the engines.
Rolls-Royce establish working processes which ensure that they
understand our customersÂ’ needs and that then design, produce, deliver
and support their products and services to customers.
The product department’s task is to
- Halve the rate of customer incidents every 3 years.
- Halve the production cost from all business processes every 3
- Ten times ensure the products are not defected before delivery.
- Increase the productivity and enhance the quality.
A clear chain of command
The chairman gives a new issue to the executive director to improve
the efficiency of the engine. It is not only to improve the quality
of the engine but also not to damage the environment. And the
executive manager set a target for the R&D department to development a
new engine for civil planes by the end of 2009. They invested over £3
billion on research and development. The engine needs to save 20% of
petrol. And it is reliable, safe, efficient, and affordable for the
customers. Also, it is vital to reduce the emissions and noisy by 30%
by the existed engines.
Advantage of role culture
As a leading engine company, maintain a low engine risk is vital. So
employees follow rule and produces can reduce the change of make
mistakes and produce high quality of engine. Everyone in the group
has it own job role, staff know they have to do clear without conflict
between colleagues and they won’t shift the possibility to others. It
increases the working efficient and productivity.
Disadvantage of role culture
As the job role is more important employee. Employee tends to be less
moral and less job satisfaction as the...