So far in this subject we’ve established that agribusinesses operate within certain geographical, climatic, social, political and economic opportunities and constraints. Yet agribusinesses thrive and survive because the owners and managers of those businesses are passionate about their ‘why’ and motivated to achieve their goals because they have a purpose.
We have also learned about the different structures of business and the implications of those different structures on the complexity of their ongoing management, how income is taxed and how that structure might influence who you do business with.
The final part of this introductory lecture is how we bring all of these things together to actually make the business function; how we organise the ‘who’, ‘what’, ‘where’ and ‘how’ of making the business ‘tick’.
We also need to introduce the ‘when’ into our agribusiness model at this point, because if we don’t set targets and timelines in things, particularly in agricultural production when timing is so critical, we will never achieve our goals.
The following video focuses on how organisational design is built from the perspective of the business goals and purpose. It starts by identifying the ‘strategies’ that will help businesses achieve their defined goals and, from that, how the business needs to be organised structurally, to achieve that. Relevant to the Human Resources Unity you’re also doing this term, is the central importance of defining roles and responsibilities for every staff member, and how the business is structured hierarchically in terms of decision-making and power. The culture of the business is also critical, and this is usefully seen as an outcome of how the organisation works and its alignment with its core values, goal and purpose – it’s ‘why’.
Organisational Design | 5 mins | Watch the first 3 minutes.
The second video is a shorter animation explaining the importance of organisational structure as a key method of managing communications and clarity of direction of purpose across an organisation. It focuses on setting out clarity of expectations of staff members.
What is Organisation Design | 1:50 mins
In your Portfolios, reflect back on the two family farms we looked at earlier – the Salatins in the USA and the Dunbabins in Tasmania. I realise you don’t have all of the details, but what do you think the organisational structure of these two family businesses would be based on what you do know of their business purpose and goals and the values they hold dear.
Alternatively, you can briefly describe the organisational design of a company or family business you are aware of.
Jot down a few notes on:
Click here for the quiz to assess your understanding of this unit.