Importance of Organisational Structure

This assignment is a precursor to Assessment Item 2. In Assessment Item 2 you will choose an organisation and a contextual factor from those provided in a list; you must explore the assigned contextual factor in relation to the speci?c organisation.

In the present business there are many challenges that are faced by the organisations. In order to bring smoothness in the work process company needs to have effective organisational structure. Apart from this companies also need to understand the environment they are facing and the impact that the internal and external forces have on the business of the firm (Wheelen & Hunger, 2011). Due to many reasons, several types of risks are confronting the business of the organisations in different industries. Victorian Taxi is one of the biggest car hire company in Australia. Victorian taxi is also taking so many decisions so as to enhance the organisational performance. There are many functions within the organisation that is assisting it in achieving the strategies (Robertson, 2013). This essay highlights the structure that company is following as well as the internal and external environment forces that are impacting the business of the organisation. It also reflects about the risks that are confronting the business of the organisation as well as business decisions they are making for enhancing the performance of the organisation. In the later part of the essay, important functions that will help the company in achieving its strategy have also been highlighted.

Every organisation has a specific type of organisational structure (Beavis & Moodie, 2014). They developed it as per the requirement of the firm so as to bring smoothness to the firm. It helps in making the decision making process faster and helps in transferring of the information smoothly within the organisation.  Organisational structure of Victorian Taxi is divisional where the structure is defined at different levels. At the top of the association there are executives comprising chairman, vice chairman and CEO (VTA, 2018). Below them lie permit holders and taxi licence owners. All the members of the association elect representatives based on the regions to the council. This council provides discussion of practices and issues. They also make policies for the VTA. The council members also elect the executive council that functions as a board and manages the affairs of VTA.

Many internal and external forces that are present around the company and have a higher impact on the business of the association (Rose & Hensher, 2014). This association needs to evaluate all the forces that are influencing their business so as to make sure that they have do pose any negative effect on the operations of the firm. Increasing employee demands have been one of the biggest issues for the association. As the decisions are made by the council members hence the interest of workers are given higher priority. In the competitive market it becomes difficult for the company to fulfil all these demands so as to maintain higher employee satisfaction. Apart from this Victorian association has been slow in terms of decision making especially when it’s about the changing business context. This company has not been investing in the innovation on a large amount. This has pulled the company in innovation race.

Internal and External Environment Influence on Victorian Taxi

There are many external forces that are impacting the business of the association. One of the most significant impacts on the association is of politics. Since the political condition and policies made by the government regarding the car hire services have changed hence it has become difficult for the companies to expand its business (Allsop, 2014). The environmental concern of the Australian government regarding the carbon emission has disrupted the business of Victorian taxi heavily.

On the other hand the economic concerns of the Australia due to the changing global economic condition has forced the company to make sure that they make cost planning in a better way. The rising inflation in Australia has burdened both the Taxi owners as well as the consumers. This is due to the fact that the Victorian Taxi cannot increase the cost at higher levels in the rising competition.

Social demographics of the Australia have changed over the years and this has also resulted in the change of demands (Boyle & Peterson, 2015). Such changes have higher impact on the operations of the firm as the people within the country are demanding for the highly fast services as well as the technologically advanced services. In the last few decades the taxi and car hire industry is highly impacted by the changes in the technology. App based services have become the trend in the market. Company also needs to upgrade the technology at regular basis so as to remain in the competition. They have to think about the new generation vehicles to be running on alternative fuels for their operations as they produce less air pollution. Environment is another important force that has higher impact on the business of the Victorian taxi. Australian government has been highly strict aver the issue of carbon emission. This company needs to look towards the new powered engine that does less carbon mono-oxide emission.

Along with all these there are many risks that are confronting the business of the organisation in their future. These risks have to be properly evaluated so as to maintain the smoothness in their operations in the coming years.             First and foremost risk that is posing around the company is of competition. This has become the threat for the organisation as the competition has become cut throat. In the longer run it is to be understood that there are larger firms that are coming into the business of Taxi industry (Lucas and Currie, 2012). This has reduced the chances of Victorian Taxi growth as well as has lowered down the profit margins of the cited firm. Another major risk that is posing to the business is that due to increasing inflation within the nation people have started to prefer metro over the taxi service. This type of competition is an alarming situation for the company as their profits margins are narrowing down (Victorian council of social services, 2011). Third major risk that is associated with them is of changing technology at a faster rate. There are many innovations that are going on in the industry. This has forced the association to put heavily on the research so that future needs of the industry can be understood and they can make changes accordingly. In the increasing inflation innovation has affected the company in both positive and negative manner.

Challenges and Risks Confronting Victorian Taxi

In order to ensure that organisational performance increases Victorian Taxi has taken many decisions (Correy, Bourke-O’Neil, Agosta, Fetherstonhaugh, Hughes & McDonald, 2011). One of the most important decisions that they have taken for improving the performance of the firm is that they have made a training program for their workers which will help in increasing the productivity of their workers. They have also introduced new marketing strategies so that can enhance their performance in the market. In order to enhance their performance company has adopted many technologies in their operations especially in the booking system of the taxi. Company has pumped cash into the innovation which will empower the organisation in making edge in the industry.

There are several important functions within an organisation. All these functions have to work in collaboration so as to make sure that they achieve their strategies on time. First is the marketing department. This department helps to ensure that the image of the services of the company remains high and hence helps in maintaining the faith of the clients in the company (Rosier & McDonald, 2011). Second are the administrative departments. This department has the role of making strategies according to which other department functions. This department assure that all the stakeholders can get satisfied. Other than this there is research department which has the role of making research towards the demands of the employees, consumers, understanding the trends within the industry. All this would help them in making their future plans which is necessary for achieving the strategies made by them. Human resource management act as one of the most essential function within the organisation (Rose & Hensher, 2013). This is due to the fact that it has the role of managing one of the most valuable resources of the company i.e. their human resource. They provide them with the training that would help their employees in maintaining their standards as per the industry requirements. This will help the firm in achieving the strategies they have made for themselves as the employee can help the firm in achieving all these strategies in a better manner. Their finance department have a very crucial role in achieving the task this is due to the fact that they make all the arrangements of financial resources so that they can achieve the strategies smoothly.  Without the proper utilisation of financial resources no company can achieve its strategies within their limits. All these departments within the organisation have to work as a unit so that no conflicts remain within the association and act as a barrier.

In the concluding remark it can be illustrated that for associations like Victorian Taxi it is essential that their structure remains more clear where everyone understands each other’s responsibility. They also need to note the pattern in which external and internal forces impacts the business of the firm. Victorian taxi needs to evaluate the risks that are confronting their business by taking decisions that helps in improving their performance. Apart from this they also needs to understand the ways in which their different organisational functions work so as to achieve their made strategies.

References

Allsop, R. (2014). Shock of the new: How government holds back technological change.  Review-Institute of Public Affairs, 66(2), 14.

Beavis, M. J., & Moodie, M. (2014). Incidental physical activity in Melbourne, Australia: health and economic impacts of mode of transport and suburban location. Health Promotion Journal of Australia, 25(3), 174-181.

Boyle, P., & Peterson, C. (2015). Taxi drivers rally against Uber. Green Left Weekly, (1069), 4.

Correy, A., Bourke-O’Neil, M., Agosta, Y., Fetherstonhaugh, J., Hughes, T., & McDonald, L. (2011). Transforming Victoria’s taxi industry. Planning News, 37(10), 26.

Robertson, S. (2013). Campus, City, Networks and Nation: Student?Migrant Activism as Socio?spatial Experience in Melbourne, Australia. International Journal of Urban and Regional Research, 37(3), 972-988.

Lucas, K. and Currie, G., 2012. Developing socially inclusive transportation policy: transferring the United Kingdom policy approach to the State of Victoria?. Transportation, 39(1), pp.151-173.

Rose, J. M., & Hensher, D. A. (2014). Demand for taxi services: new elasticity evidence. Transportation, 41(4), 717-743.

Rosier, K., & McDonald, M. (2011). The relationship between transport and disadvantage in Australia. Retrieved from: https://aifs.gov.au/cfca/publications/relationship-between-transport-and-disadvantage-austr

Victorian council of social services. (2011) Victorian taxi industry inquiry. [Online]. Retrieved from: https://vcoss.org.au/documents/VCOSS%20docs/Submissions/2011/VCOSS_Taxi_Inquiry_Submission.pdf

VTA. (2018) VTA structure. Retrieved from: https://www.victaxi.com.au/about-us/vta-structure.html

Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy. Pearson Education India.