Effectiveness Of Camilleri Group Organizational Structure Essay

The purpose of this assignment is to measure the effectivity of Camilleri Group organisational construction. The first portion of the assignment gives a brief overview of Camilleri Group of Companies as a concern organisation including its history, the trade names it represents, size and current market placement.

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In the 2nd portion the development of organisation theory is analyzed and a walk through of its development by explicating how it was influenced from scientific ( Taylor ), administrative ( Fayol ) and bureaucratic ( Weber ) direction. Mention is invariably made on how Camilleri Group is formed today utilizing the current apparatus as a practical.

In the 3rd portion the assignment will besides discourse the current direction matrix construction and its influence on the organisational procedures and ends. Then the assignment will besides discourse the assorted situational factors that influence the squad development. This assignment is non based merely on the theory but on personal experience in the company, questionnaires and self involved research.


Camilleri Group of Companies ‘ origin day of the months back to 1843 when Mr. Calcedonio Camilleri “ opened a little store at 50 Merchants Street, Valletta ” as stated in the company web site ( hypertext transfer protocol: //www.camillerigroup.com/history.htm ). It goes on by stating that “ He was the first to import English and Gallic confectionery. It was merely a popular local sweetshop in Malta ” and “ It appears that the Valletta people and the Maltese in general, appreciated what Calcedonio Camilleri represented to them. His family name ‘Camilleri ‘ and the word ‘Confectionery ‘ became synonymous ”. The household concern kept being sold to the consecutive coevalss until in the recent history ( 1980 ) it was purchased by the current coevals of brothers. In 1981 a limited liability company with the name C. Camilleri and Sons Ltd was formed and at the clip used to use 5 workers.

In 1983 the company diversified and ventured in the Catering sector. From so onwards the group ne’er looked back and established itself in assorted other sectors both locally and abroad. Harmonizing to superbrandsmalta.com today “ C. Camilleri & A ; Sons Catering is one of the taking caterers on the island. Although the company started operation in 1983, a purpose-made mill to EU specifications was opened in 2003 ”. The other companies within the group are “ Camilleri Establishments owns the popular BHS, including Tammy and recently Burton ‘s franchise while Camilleri Trading owns the Mothercare franchise, both of which are good patronised ”. In Malta “ The Camilleri Group is one of the few companies to be involved in sweeping and retail, distribution, industry and service. ” ( hypertext transfer protocol:

//www.superbrandsmalta.com/pdf_sito/camilleri_group.pdf, Pg 30-31 ).

Other trade names worth adverting which are locally represented by Camilleri Group are Goldenpoint, Perugina, Motta, Ritter Sport and Bristow ‘s of Devon. In 2004 the Group moved to centralised premises which included back office and warehouses in a local industrial country in Qormi. The two big franchises represented by Camilleri group ( i.e. BHS and Mothercare ) operate over 3000 M2 of store country in three of the most popular local commercial Centres. An extra Bhs mercantile establishment in Libya operates 3500 M2 of store country. Camilleri Group employs 280 workers divided between all seven companies both locally and in the North African market, all of which operate under separate economic entities but with a common Board of Directors and a incorporate Senior Executive direction squad. Bing a household concern all the managers are besides the stockholders for every company.

Organizational Structure

“ Organization Structure is defined as

( 1 ) the set of formal undertakings assigned to persons and sections ;

( 2 ) formal relationships, including line of authorization, determination duty, figure of hierarchal degrees, and span of directors ‘ control ; and

( 3 ) the design of systems to guarantee effectual coordination of employees across sections. ” ( Daft ( 2003 ), Pg 313 )

The history of Camilleri group suggests that the organisation construction has been influenced from the fact that it is a household concern where civilization and tradition are values which are really much treasured by the managers. As a cogent evidence one will detect that a figure of employees are recruited through familiarities and most of them go on to be Valletta co-habitants, which is the location where the roots of the household come from. Directors are non merely scheme shapers, but they tend to take part hands-on in the existent operations of the organisation. It is non a rare position to see a manager transporting a tray of nutrient and manus it to clients.

Due to the history and likely the household nature of the concern, managers tend to be genitive on the company and have small trust in their employees as they ever feel the demand to hold full control. A typical illustration would be the chief door key of the office premises. It is an unwritten regulation that merely a Camilleri can hold the key of the office and they must be the first individual to open in the forenoon and the last individual to shut in the eventide. Based on such grounds one can subtract that the managers come from the traditional school of idea which resulted in an extended usage of the Classical and scientific direction theories. As a practical illustration, upon opening the new catering premises in 2003 the chief focal point in the design ( and justly so ) was on employee productiveness and efficiency.

The production countries ‘ design and layout are a clear influence of Scientific Management from Frederick Taylor and Henry Ford ‘s instructions. Frederick Taylor is considered as the male parent of Scientific Management as he ever sought “ The One Best Manner ” to execute a undertaking. The industry procedure was broken down into little parts of standardised occupations and every one of these occupations had its ain set of regulations. Every occupation resulted in a separate but interrelated room with its specific equipment. Such layout was built around the construct of the assembly line. Tolliday ( 1992 ) noted that Ford ‘s success was based on Ford ‘s construct of suiting everything together and this seems to hold been the construct which influenced Camilleri group. Such constructs maintain on re-emerging whenever new lines of concern were introduced during the old ages. Scientific direction in rule focal points chiefly on the employee, nevertheless it does non take in consideration the employee human and societal demands.

Henry Fayol ‘s Administrative Management

Administrative direction focuses chiefly on organisational direction whereby it deals with organisational planning, leading and control. Henry Fayol ( considered as the laminitis ) tries to accomplish this by seting a focal point on the directors ‘ functions. Camilleri group ( like many other organisations ) have besides followed portion of Fayol ‘s 14 rules of direction, nevertheless it must be stated that Fayol himself had admitted that the 14 rules were by no agencies exhaustive, and wished for them to be interpreted in a flexible mode. Rodrigues suggests that ‘many modern organisations do non use all 14 modern-day rules, and that many organisations apply some rules more intensively than others ‘ ( Rodrigues 2001, 885-6 ). This was exactly the instance for Camilleri Group and in fact non all of Fayol ‘s constructs have been utilized, but merely those listed hereunder were considered as relevant for the organisation:

– Division of Labour – Employees are specialised for the occupation roles they cover and there is flexibleness within disposal to put people in the section where they can execute at their best. A typical illustration would be the recent instance of an Accounts Clerk who was analyzing for an IT sheepskin and was relocated in the IT section. Camilleri Group ‘s CEO stated “ We are giving this employee the chance to better his public presentation and by making so we are carry throughing the company ‘s end of puting the right people in the right sections ”.

– Discipline – is really good defined by utilizing standard clear processs which are communicated to every employee upon enlisting

– Subordination of persons to the common good – The person ‘s precedences must clearly be the organisational aims and non the personal aims. It is communicated to all employees that whatever is done within the organisation must bear the implicit in statement “ for the benefit of the organisation ”.

Remuneration – Wages are adjusted based on public presentation but besides harmonizing to surveies and studies conducted by independent companies who set up what the national norm rewards are harmonizing to the place occupied and makings. Additionally on an one-year footing inducements in the signifier of fillips are given to employees provided they meet pre established marks.

– Centralization – Centralization of authorization is distributed from chief Head office.

– Order – All the organisation ‘s norms, criterions and regulations are clearly communicated through a common companywide usher book which contains guidelines each employee must follow for efficient working of an organisation.

– Equity – Classs and places are predefined when it comes to remuneration. All employees are treated every bit and Camilleri Group has an outstanding illustration as it offers the same conditions of work to all regardless of age and gender. In order to take by illustration, even the boies and girls of company managers are offered equal conditions as any other employees. Administrative Management in rule focal points on the Manager but it loses focal point on the concern unit as portion of a whole organisation.

Max Weber Bureaucratic Theories

Bureaucracy has been defined as “ The of import determinations are made at the top, while at the underside standardised processs are used to exert control ” by ( Huczynski and Buchanan, 2001 ) while Collins lexicon of Sociology defines bureaucratism as “ A type of organisation which disposal is based upon impersonal, written regulations and a hierarchy of offices. Domination based upon written regulations, enlisting based upon making and offices that are impersonal and clearly distinguished from officeholders. ” ( Jary and Jary,2000 ). Within Camilleri Group such features do be and hereunder it is explained how they are applied in pattern:

Specialization: Weber sees bureaucratism as holding a fixed country of work for each employee. In this context every employee has a different, specialised occupation to make, such as inputting bills, refilling mercantile establishments or direction. Each member of staff gets a formal and defined occupation function and responsibilities to be covered upon enlisting.

Bureaucracy: The typical pyramid of direction is used as a perpendicular concatenation of bid.

Hierarchy: Camilleri Group has a traditional hierarchy, where top direction establishes scheme and overall concern way, whilst lower direction and employees are responsible for operations.

Regulation – Camilleri Group is rather rigorous on regulations and ordinances. There are clearly defined boundaries in the Staff Handbook which goes in all inside informations such as Internet use, frock codifications, seasonableness etc..

Impersonality – All workers are treated uniformly… i.e. even manager ‘s relations and household members have to stay to all the company ‘s ordinances.

Career construction – there are clearly defined calling waies for all new recruits.

All of the above mentioned theories autumn under the umbrella of Classical direction. Many theoreticians have criticised the classical attacks with George Ritzer ( Professor of Sociology ) utilizing the term “ McDonaldization ”. Ritzer defined McDonaldization as “ … the procedure by which the rules of the fast-food eating house are coming to rule more and more sectors of American society every bit good as the remainder of the universe. ” Ritzer calls the McDonaldized society a system of “ Fe coops ” ( a term created by Weber himself to depict bureaucratism ). Although many theoreticians have criticised Classical direction, it is a fact that most of its instructions are still being used in today ‘s concern universe. There seems to be a inclination that the more stable companies such as Camilleri Group tend to use Fayol ‘s and Weber ‘s work in direction today. Another ground might be that Fayol ‘s five rules of direction are really generic in nature.

Management Structure

CG construction direction construction is nevertheless based on matrix direction which is the entire antonym to Fayol ‘s Administrative rule of direction theory which states “ Unity of Command ” implying that authorization is coming from one cardinal point. The trade names for CG are the fulcrum of its gross and hence the scheme was to utilize the matrix scheme, which by Daft ‘s definition is a “ construction that uses functional and divisional ironss of bid at the same time in the same portion of the organisation ”. Camilleri Group must hold shifted to this construction because they realised that “ Organizational construction is the model within which trade names are managed successfully or otherwise ” ( Philippa Hankinson, 1999 ( pp. 402 – 415 ). In fact during that twelvemonth ‘s one-year staff dinner, the CEO of Camilleri Group in his address had stated “ We have shifted from the old tall construction which had excessively many hierarchal degrees to a more modern matrix construction which will assist develop more synergism between the assorted trade names and the functional units through the sharing of resources. ”

To better understand the Matrix mechanism and how it applied to Camilleri the word picture on Appendix A is to be explained hereunder:

There exist two lines of authorization, one is functional ( on a horizontal degree in yellow ) and the other is trade names ( on the perpendicular degree in bluish ). The trade name director coordinates the functional demands with the functional director in charge, who in bend allocates staff to the trade name. The chief advantage of this construction are ( utilizing this illustration ) :

Functional units would hold expertness available for all trade names through less staff ( i.e. no demand to hold a member of staff trained per trade name )

Adaptability to altering environment – as an illustration, if a new trade name is introduced, the IT integrating will be easier and less expensive

Standardisation – can be achieved easier if the same individuals are making the same occupations across the trade names.

For Camilleri Group the new matrix construction resulted in a more efficient departmentalization and a cost film editing exercising at the same time.

The chief disadvantages of this construction is holding double foremans ( one from the perpendicular and one from the horizontal concatenation ) which consequences in

more meetings ( more clip wasted ),

reduces the chances for publicity and higher position

equivocal state of affairss due to the possibility of struggles between an employee ‘s two line directors

Camilleri Group creates an extra disadvantage to this scenario since every one of its managers is assigned to take attention of a trade name and in many times there is the perceptual experience that if functional unit staff is making work for Brand A it automatically implies that he is non making work for Brand B. In fact frequently employees ( while put to deathing undertakings requested by one of their directors ) find themselves in equivocal state of affairss where they are told off by another member of top direction because “ you are giving more precedence to them ( non to us ) ”. This is more apparent when a functional unit caput or a trade name director is really a Director ( who in certain instances occupies a double function ). Therefore a state of affairs might originate where a trade name director ( who is ranked as a senior director ) on the perpendicular axes might conflict with a functional support unit director whose function is theoretically on his same authorization degree on the horizontal axis, but is in fact his ain manager.

“ The complexness of today ‘s environment and uncertainness about the hereafter overwhelm many directors and take them to concentrate on operational issues and short-run consequences instead than long-run ends and programs ”. ( Daft:2003, P211 ). To determine the cogency of this statement with Camilleri Group, a questionnaire ( Appendix B ) was distributed among senior directors ( excepting those who are besides managers to avoid struggle of involvement ), to measure the degree of consciousness of organisational ends, vision, scheme and mission statements. This would assist us measure the effectivity of the current mission statement and how it has been communicated. It must be mentioned that all the eight senior directors responded to the questionnaire. The replies to the questionnaire were as follows:

Question No

100 % of participants were cognizant of their trade name ‘ s mission statement ( where applicable )

100 % of trade name directors ‘ staff were cognizant of the trade name ‘ s mission statement

50 % of respondents believe a mission statement ( Appendix C ) has an impact on staff public presentation

0 % of respondents were cognizant of the organisation ‘s corporate mission statement

100 % of respondents agreed with the current matrix construction

This most important statistic in this study is the fact that no senior director was cognizant of the being of a corporate mission statement. One may inquire oneself how effectual the matrix construction in this context is. Even though it has been stated that it is aimed to increase communicating between trade names and functional units, nevertheless it is apparent that it does non turn to the communicating spread that exists between CEO/directors and senior directors. This could besides be a direct consequence due to the fact that Camilleri Group lacks an HR and a selling section.

The organisation shifts the HR duties on the trade name directors, therefore making a slightly equivocal state of affairs where an employee could potentially be managed by two matrix directors, therefore doing it ill-defined which communicating waies are to be followed in HR affairs. The study besides demonstrates Camilleri Group senior directors are in understanding that “ A clear thoughtful mission statement provides employees with a shared sense of intent, way and chance ” ( Kottler and Keller, 2009 P 82 ), as they are all cognizant of the trade name ‘s mission statement and are punctually communicated to their staff. In the questionnaire, one peculiar director was besides proactive and went on to propose a possible corporate mission statement to be used by the organisation.

Contingency Theory

The classical direction theories all recommended a individual solution to direction jobs. Contingency theory is a new modern-day theory position which in contrast to the traditional thought of Taylor, Weber and Fayol and states that “ there is no 1 best manner ” to pull off an organisation. What works for a peculiar organisation is non needfully relevant for another one. In today ‘s extremely dynamic and competitory environment one should hold a eventuality program in topographic point to undertake new challenges presented by the market. Directors should to the full aware of such eventualities and be able to place the cardinal direction pattern and have to ability to implement the right eventuality program for any changing fortunes. A good director “ diagnoses the features of the persons and groups involved in the organisational construction, and his ain leading manner, before make up one’s minding on a solution. ” ( Gibson:2008,6 )

Camilleri Group is surely missing in the country of ‘fit ‘ when covering with construction and ends. In today ‘s disputing times the organisational construction is mechanistic. Currently Camilleri Group fits the description of a big company ( by local criterions ) with a centralized determination doing procedure. The ‘family ‘ and ‘tradition ‘ civilization coupled with the communicating spread jobs might in the future create jobs in such a dynamic concern environment. Top direction has older coevals hands-on people who are accustomed to the accomplishments learnt in past old ages, which gives them a false feeling that they know precisely the accomplishments of today ‘s employee. However times change and with it this brings new outlook. The centralization of decision-making could make jobs in times where these individuals in top direction would take determinations based on their personal experience when in world they would n’t cognize what ‘s truly traveling on at land degree of the company and in the external environment that is viing against them.

Fresh blood demands to be assorted with experience at top degree direction in order to give room for invention. Flexibility must crush traditional positions and employees must be given infinite to be more originative instead than suiting in a construction where “ we do it this manner because that is how it has ever been done ” civilization. Due to this ‘traditional ‘ civilization, advanced tools such as engineering are barely of all time involved and modern-day tools like company web sites and on-line selling are neglected. The construction needs to be modified to let the new strain of invention, nevertheless being a household tally concern it is understood that this can merely go on of course with the retirement of a top degree member who would be replaced by a member of the newer coevals.

Decision and Recommendations

One may inquire oneself how important is it to hold an effectual organisational construction but no clear communicating procedure in the organisation. Paradoxically, Camilleri group senior directors have shown satisfaction at the construction but at the same clip are incognizant of the organisational mission statement. The conceptual direction construction entirely is non plenty for the success of an organisation, you need good directors who can back up it and in the instance of Camilleri Group you need all the appropriate functional units. My concluding recommendation is the add-on of a human resources section and a selling section with a clear selling program which would reflect the vision and ends of the organisation.


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