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Taronga Zoo
Operations
Audit
Matthew Pearce
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Executive Summary
This is an audit report reviewing organisational practices of Sydney tourism centre Taronga
Zoo referred to as ‘TZ’. TZ is a State Government Agency reporting to the Office of
Environment and Heritage. TZ can be classed as a major tourism organisation, while also a
central conservation institution both locally and internationally.
The objective of this report was to determine the reasons why TZ has experienced stagnation
in growth figures over the last six years and offer proposals as to whether changes could be
made to the current organisational structure to improve efficiency and effectiveness of
operations. The review also looked to identify challenges and opportunities for TZ into the
future.
Data was collected via a pool of 20 questionnaires from differing levels of staff. The initial
data was analysed and relevant themes were further explored via interviews. A thematic
analysis was completed post each interview to further examine the commonality of findings.
Questionnaire results displayed some salient points linked to management styles, rules and
procedural frustrations, and overall communications and integrations across differing
departments. Across the whole organisation there seemed to be a lack of understanding of
wider organisational impacts linked to change.
The interviews were used to inform further reviews of the company. From the data analysed
the following topics are discussed in line with theoretical implications:
• Institutional Bureaucracy
• Applications of Critical Management
• Organisational Dynamic Capabilities
The themes identified were negative effects of bureaucracy calling for recommendations of:
• Introducing 360 Degree Meetings
• Undertaking a full organisation wide operations audit
• Streamlining TZ Processes and Procedures
• Encouraging greater interaction between the various tiers of TZ
• Implementing a learning through mentoring programme
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Table of Contents	
1.	 Introduction and Organisation Background	....................................................................................	4	
2.	 Methodology	...................................................................................................................................	5	
3.	 Data Analysis	..................................................................................................................................	7	
3.1.	 Employee survey	..........................................................................................................................	7	
3.2.	 Management Interview	................................................................................................................	8	
4.	 Findings and Theoretical Application	.............................................................................................	9	
4.1.	 Institutional Bureaucracy	.......................................................................................................	10	
4.2.	 Applications of Critical Management	....................................................................................	12	
4.3.	 Organisational Dynamic Capabilities	.....................................................................................	14	
5.	 Conclusion	....................................................................................................................................	17	
6.	 Reference List	...............................................................................................................................	18	
7.	 Appendices	....................................................................................................................................	20	
7.1.	 Appendix A: TZ 2012/13 Annual report	................................................................................	20	
7.2.	 Appendix B: Graphs	..............................................................................................................	25	
7.3.	 Appendix C: Questionnaire Table Analysis	...........................................................................	29	
7.4.	 Appendix D: Interview Questions	..........................................................................................	33	
7.5.	 Appendix E: Interview Analysis	............................................................................................	35
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1. Introduction and Organisation Background
TZ is a State Government Agency reporting to Office of Environment and Heritage and the
associated minister. TZ is a major tourism centre, while also maintaining a central
conservation role within the state government and internationally.
Operating out of two major state sites, TZ is organised into six central divisions each
covering Commercial Services, Marketing and Fundraising, Capital Works and
Infrastructure, Life Sciences, Research and Conservation, People and Learning and Second
Site Management. Each division has a general manager who is also a member of the seven-
person senior leadership team including the organisation’s chief executive officer. This board
in turn reports to a central trust governance board responsible to the Minster for Environment
and Heritage.
Established in 1916, TZ is a highly specialised organisation within a niche market in the
highly competitive Australian tourism industry. Expert employees have very little flexibility
with regards to movement within the industry and tend to be long term employed. Over the
last six years TZ has had a somewhat disjointed performance record within the industry. In
the 2012/13 financial year it completed its 12-year $221m redevelopment project (See
Appendix A). However, TZ has experienced challenges to its overall performance within the
tourism industry:
• A stagnation of visitor numbers over the last six-year period with only 6.9% growth in
the period of 2006-2013 (Appendix A: 2012/13 Annual Report).
• Shrinking revenue base over the same period resulting in much less capital
expenditure and upgrades to its facilities and support for its central conservation
mission (Appendix A: 2012/13 Annual Report).
The objective of this report is to determine the reasons for this stagnation in growth figures
both in visitations and financials over the last six years and whether changes can be made to
the current organisational structure to improve efficiency and effectiveness of operations.
Whereby our goal is to analyse the underlying challenges and opportunities for TZ into the
future.
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2. Methodology
In order to get a complete and representative picture of the organisation’s management and
operational structure, this study has used primary data collected through both a quantitative
questionnaire and a qualitative interview. The report has focused on one department directly
responsible for Research and Conservation as quoted in the introduction. This department
consisted of one General Manager and 55 employees.
The questionnaire was the basis of our primary research and consisted of 31 questions given
to all the employees within the work group. The employee survey was built around four
broad areas:
1. Organisational Communication
2. Organisational Leadership
3. Organisational Dynamics
4. Organisational Structure
Of the 55 possible respondents, 20 completed the survey, which is a response rate of 36 per
cent. The results from the questionnaire were analysed and common response pattern
identified
The group conducted a series of four (4) interviews with the General Manager (GM). This
was based on the findings from the quantitative research and in-depth questions were
designed (Appendix B: Questionnaire Summary Graphs) and focused on:
• The core competencies and capabilities of the organisation.
• The major management challenges and opportunities facing the organisation over the
next five years.
• The initiatives being put in place to address these challenges and
• Opportunities and an assessment of how effective they are
A complete analysis was developed post interview to further examine the commonality of
findings
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To provide meaningful advice to TZ, data collected from the surveys and interview were
further combined with relevant academic literature using the triangulation method (figure 1)
thereby providing TZ with a comprehensive report and recommendations:
	
Figure	1:	Triangulation	method	
Analysis
Analysis of the research will form the
core of the reports findings and
subsequent recommendations.
The primary function of the analysis is to
identify the key issues to be discussed in
the evaluation from which
recommendations can be drawn.
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3. Data Analysis
3.1. Employee survey
Regarding the organisational communication, the most common communication form was
face to face, followed by emails and then meetings, which are also stated as the top three
most effective forms. 85% of the respondents agreed that the mission statement is
communicated effectively to them, however only 65% felt that the organisation achieved its
mission of this 70% felt they were connected to the mission and there was no conflict
between the stated mission and operations. This indicates that the mission of TZ is clearly
communicated to the employees, although there is lower agreement as to whether it achieves
its stated mission.
The data collected from the survey gave indications of an effective leadership style on the
meso level. All participants rated their leader as either ‘very approachable’ or ‘approachable’
(90% and 10%). Also, they trust their manager’s judgement capability and evaluate
managers’ communication as effective (90%). It was shown that 65% think that the
organisation always listens to employee’s suggestions when making decisions. 60% of the
respondents described the communication as effective. The results from the survey showed
that the organisation relies on KPIs. This indicates that it is an outcome driven organisation
(Appendix B). Overall the data collected from the survey shows that the leadership within the
division is effective, although it is mixed thoughts about how much the organisation is
listening to the employees when making decisions.
There is a good cooperation between the different departments, they are generally very open
to share information with each other and there is a low level of competition between them.
Regarding the cooperation between departments, 80% claimed that there is high cooperation
on a meso level (Appendix B).
The organisational structure can be described as predominantly top down and formal (60%).
This is further enhanced by the fact that most respondents felt the organisation was structured
either by function (65%) or service (25%). When asked if their teams worked well together,
65% of participants felt the team worked well together (see Appendix B). To sum up, the
organisational culture can be described as mixed. Formal lines of control prevent complete
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organisational collaboration; smaller teams themselves are also mixed as to whether there are
good working relationships between employees.
Even though the organisation has just finished 10-year development plan, 40% of the
respondents didn’t feel like there was any change emerging within the organisation. This lack
of understanding brings us to one of our core findings within the questionnaire. Large
portions of the respondent’s feel they do not have enough resources to complete their duties
according to expectations. This suggests varied organisational trust. Through the initial
research we have discovered that there may be a conflict between the tourism and
conservation purpose of the organisation following recent changes.
	
3.2. Management Interview
Through the interview, important findings from the survey become stronger as it was
confirmed and supported by the GM. The interview proved that the employees communicate
very well with their manager but the communication to employees from the top tier of the
organisation is disjointed and one directional. However, the GM admits that there are times
he has to put his own work on hold in order to mediate friction that has occurred amongst
employees (Appendix E).
Although the interviewee gave evidence of an organisation with positive characteristics, he
did note the following challenges:
• He finds weakness within his micro level managers and their soft management skills
• Procedures and processes within TZ are convoluted and constricting and need
streamlining
• There is very little room for personal growth for all employees
• Lower level employees don’t feel like they are a vital component within the
organisation
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4. Findings and Theoretical Application
The organisation of TZ is a top down hierarchal structure, where teams are designed by
function of service. Figure 2 illustrates a high level view of the organisational chart of TZ.
Information is channelled from the Board at the top and filtered through each level until it
reaches the employees (k) at the bottom of the chart as need to know information.
Figure 2: TZ Organisational Flow Chart
A hierarchal structure provides the board with a complete picture of the organisation’s flow
(Frew, 2009) and enforcers’ stability and formality through routine (Reihlen, 1996). Through
clear ‘decision-making chains, rules and responsibilities,’ (Lee 2013, p. 191) the hierarchy
structure is theorised to ensure efficiency within an organisation. The formalised top-down
structure acts as a vertical information channel that, ‘allows efficient information processing,’
(Reihlen, 1996, p. 6) within departments. The departments, which are controlled by a
supervisor, allow accountability for individual action and limit the damage a single individual
can do to the organisation by buffering communication channels with external entities that
management usually engage (Romme, 1995). This structure creates a highly specialised job
role for the individual staff member, as they require specific skill sets and knowledge that are
not readily transferable between departments. These buffers defend the organisation from
internal dissent (Lee 2013) through frameworks that reinforce routine, consistency and
stability to satisfy an organisational need (Romme, 1995). However this tight organisational
structure has created a bureaucratic environment where employees feel the rules and
regulations are restrictive (Appendix C).
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4.1. Institutional Bureaucracy
Rules and regulations that create a sense of restriction amongst employees are best explained
by Dacin, Munir and Tracy’s (2010) view on institutional theory. Institutional theory is the
most common business perspective used to help explain and understand organisational
culture and beliefs confined within the stability of hierarchies.
TZ’s hierarchical structure causes information within the organisation to be modified to
degrees of abstraction for upper management and lower tiered employees (Appendix C).
Information separation at different tiers of the hierarchy makes decision making within the
organisation bureaucratic (Reihlen, 1996). Hodgson (2004) describes bureaucracy as paper-
driven, inflexible and inefficient, which, is the stereotypical structure of government
organisations.
TZ’s mimicking of government processes and procedures is not suited to their overall
strategic mission of conservation (Appendix C). TZ’s current bureaucratic process not only
wastes time and resources, but also decreases the productivity of the organisation (Ludwig &
Pemberton, 2011). There are many examples in TZ where bureaucracy has limited its ability
to perform at an optimum level. We can summarise these into 4 areas:
1. Tender Process - As it stands the tender process is both inefficient and expensive
sometimes costing TZ ten times more than its private competitors to develop new
attractions.
2. Complicated Internal Procedures - These are slow paper-driven procedures that need to
be followed to perform simple tasks. For example if an employee needed use their own
car to go the local hardware store for material they need to apply through two levels of
approvals from their supervisor and leadership team member (Appendix E). Additionally
any maintenance applications within the park need to first be applied to online then be
passed through the two department heads of capital works and site management before
work is finally conducted.
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3. Convoluted Policy Structure - As it stands TZ has 45 policy and procedures, one Code
of Conduct and a separate set of OH & S rules. This makes operating within the
organisation complicated and inefficient.
4. Loss of Phronesis - As a side effect of the complicated internal procedures and
convoluted policy structures there is a loss of phronesis with in TZ’s bureaucratic
organisation. Most employees of TZ have been with the organisation for an average of 5-
10 years acquiring high amounts of Phronesis. However, this knowledge and wisdom is
not transferred up the tiers as input for upper managerial decisions.
Recommendations
• Streamline TZ Processes
It is recommended that TZ management should look at consolidating their procedures and
streamlining their processes into one overriding operations manual. As it stands TZ’s
institutional top down bureaucratic processes limits the ability for employees especially on
the lower tiers of the organisation to operate efficiently.
It is not our recommendation to completely change TZ’s hierarchal structure. The day-to-day
operations at TZ, requires a top-down hierarchical approach, to enforce safety protocol,
stability and formality (Reihlen, 1996). However, in regards to decision making TZ
management need to create a communications channel that allows a bottom up approach.
Employees, feel ‘TZ management should look at consolidating their procedures and stream
lining their processes’ (Appendix C). In order to streamline process, TZ first needs to
consider resource reorganisation that is; flat-lining tier approvals for smaller activities, which
will allow for strategic flexibility (Ludwig and Pemberton, 2011).
• 360 Degree Group Meetings
TZ needs to consider implementing aspects of neo-institutional theory, which explores
employee phronesis (Dacin et al., 2010). Spelthann & Haunschild (2011) identify that
phronesis is not transferable into documents but best communicated through Fieldman’s
(1976) contingency theory of socialisation. Fieldman’s (1976) theory describes social
encounters with other employees as ‘the main source of creativity, inspiration and working
morale’ (Spelthann & Haunschild, 2011, p. 105). 360-degree group meetings involve
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feedback from multiple stakeholders including immediate colleagues, supervisors, senior
management as well as members of other departments (Luthans et al., 2003). This currently is
a common practice at the management level in TZ through ‘Work-In-Progress’ meetings
(Appendix E). 360-degree meetings is an effective tool to create a relaxed social environment
in which employees can share their knowledge, wisdom, thoughts. Furthermore, 360-degree
meetings create the communication avenues for lower tiered employees to engage upper
management directly (Luthans et al., 2003).
4.2. Applications of Critical Management
Critical Management Studies (CMS) seeks to challenge traditional assumptions of power,
accountability, hegemony and ideology within the workplace. According to Fournier and
Grey (2000) management needs to start to view an organisation through the lens
epistemology studies and as such needs to constantly revaluate and critically examine what is
considered good operations and practice. In TZ’s case this revolves around upper
management’s lack of engagement and support of their lower tiered employees.
Because TZ is a government organisation it does run the risk of being labelled a controlling
environment causing disempowered and undervalued feeling amongst employees. In fact,
according to the questionnaire results (Appendix B) TZ is currently experiencing a high level
of dissatisfaction amongst its employees, with 40% responding that management does not
support and promote their development and organisational learning. In addition 30% of
respondents felt they were unable to achieve the mission of the organisation due to lack of
resources. Interviews with management identified further a lack of connectivity between
upper levels of power, contributing to a large impact in employee dissatisfaction. Interview
with the GM also confirmed that there is a lack of learning within the lower supervisor roles.
It was identified that central decisions are often made at the board level and are
communicated down to the lower tiers without any significant employee input, reflexivity
and questioning. As such the application of CMS questions TZ’s management alignment
between, ‘knowledge, truth and efficiency’ (Fournier & Grey 2000, p. 17) and whether this is
challenged. Survey results from employees in TZ concluded that there was a mixed view on
whether individuals in the lower level of the hierarchy play a significant part in the overall
decision-making process (Appendix C). Additionally ideas generated by lower tiered
employees, who are the face of the organisation, must flow through four layers of
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management before they reach decision-making authorities (Appendix E). Danneel’s (2008)
identified that communication that moves through multiple channels is damaging to the
organisation and results in high power distance and reduces employees commitment to the
work they carry out within the organisation, known as low mutual influence (Feldman, 1976).
Consequently employees feel they have no avenue to raise their concerns or ideas to the
senior management directly (Winterich & Yinlong, 2014) and feel that this does not reflect
due process.
One of the key concerns when using the lens of Critical Management Theory to critique an
organisation is whether or not that organisation takes into consideration the long-term
impacts on not only individuals but also globally. CMS does not take mainstream
management theories and practices at face value (Foster & Wiebe, 2011). As such TZ must
question whether a government model of operations is right for their organisation.
Recommendations
• Training at the lower supervisor levels
Training supervisors at the lower level with soft management skills will remove the current
overload on upper management (Heckman & Kautz 2012). This will allow supervisors to
effectively communicate and manage conflict and issues in a more informal capacity, saving
on more formal processes within upper management.
• Senior management and lower tier interaction
The presence of power distance and the low level of employee mutual distance can be
mitigated by greater interaction between senior management and lower level employees. This
in turn allows senior management to gain more perspective and insight into the everyday
operations and actions of employees consequently decreasing power distance within the
organisation. Because of this increased interaction, future decisions made by top management
will naturally take into account new viewpoints from a wider range of stakeholders
(Winterich & Yinlong, 2014).
• Implement an Operations Audit
The aim of this audit would be to apply CMS practice to the operations and structure of TZ
and whether reflecting a standard government organisation is what is most effective. Thereby
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the goal would be to ‘uncover alternatives that have been effaced (previously) by
management knowledge and practice.’ (Fournier & Grey 2000, p. 18)
4.3. Organisational Dynamic Capabilities
Teece defines Dynamic Capabilities as the firm’s ability to adapt to rapidly changing
business environments (Teece et al., 1997). In the case of TZ, due to the lack of growth
results, it could be considered that TZ are finding it difficult to align or re-align with the
changing business environment in which they are operating. This may be partially due to the
two competing core goals of trying to achieve revenue growth whilst promoting and being
conservationist.
Dynamic Capabilities theory is focused on how companies can maintain their performance to
ensure competitive survival (Katkalo et al., 2010). It can be considered that TZ possesses all
attributes of Valuable, Rare, Imitable, and Non-Substitutable (VRIN) resources within the
various Subject Matter Experts (SMEs) that they employ. The attractiveness of TZ as a
world-renowned institute within conservation should help it maintain its capability standards
and attract top SMEs. It could be viewed that given TZ has such a wealth of SMEs, this
should be valued and understood as a key asset and that some of their less than successful
business results may not be associated with these key assets rather how they balance other
costings or ventures.
Dynamic Capabilities theory suggests that the responsibility of achieving agility is placed at
the senior managers remit and that it is these individuals that need to change their existing
operating models and mindsets to achieve realignment (Teece et al., 1997). Whilst the data
gathered was focused on mid level managers and front line staff, the responses from these
individuals suggested that senior management or the influence of a government entity makes
agility difficult to infiltrate through to day to day operations.
The processes established and enforced by TZ, create a complex and difficult environment,
which impedes any operational innovations. Convoluted procedures, induced by the nature of
TZ being governed by State Government Agency, make any initiatives cost prohibitive and
slow to adopt. Linked to the lack of resource allocation efficiencies, feedback from frontline
staff suggests that they are not empowered to be able to reallocate resources based on
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changing requirements. This inability for the staff to provide guidance on changing demands
can make the company less agile in recognising where resource improvements can be made.
Therefore, the lack of organisational dynamics within TZ can be summed up in key 2 areas:
1. Lack of Critical Assessment Programmes – There is evidence that within TZ that
assessment meetings are used predominantly to justify programmes and their resource
allocation rather than critically assess them (Appendix E). This shows a lack of
Dynamic Capabilities as management too infrequently questions whether they are
using their VRIN resources (i.e. front line employees) at an optimum level.
2. Departmental Connectivity – Additionally the lack of connectivity between the
departments and between the levels of management is further enhancing
organisational disconnect. This in turn leads to a lack of efficiency and effectiveness
in transferring SMEs across different programme thereby allowing top use of
resources.
Recommendations
• 360 Degree Group Meetings
TZ is in this instance missing the link in communication from the frontline staff back to top
management. We recommend for the communication channel to be established, so the
knowledge of SMEs can be used in order to achieve the organisational goals. As with
leadership and communication, 360-degree meetings would provide an effective tool when
looking at organisational dynamics. We suggest additionally to using it for lower
management coordination, that it can be expanded to include employees from other
departments and so create more dialogue and crossover within the greater organisation
(Luthans et al., 2003).
• Streamlining Processes
Although the TZ holds all the positive attributes of a VRIN organisation, it can be considered
that they are failing in utilising this advantage. The hierarchy, lack of empowerment and
convoluted processes and procedures make any efforts for adaptability to evolving market
conditions very difficult.
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• Organisational learning through mentoring
While organisational learning is more of an organic process within organisations, this
predominantly occurs through a strong mentoring programme. It was stated within the
interview notes (Appendix E) most employees within TZ have been with the organisation for
more than two years. Therefore, there is great potential for strong organisation learning
within TZ that needs to be channelled in the right direction.
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5. Conclusion
When seeking to cognise the present practices at TZ we, the group, took an in depth view of
institutional, dynamic capability, social contingency and critical management theory. Due to
TZ being a State Government Agency, it present’s as a true hierarchy structure with
bureaucracy being one of the key frustrations. Thus making for a restrictive workplace heavy
on institutional process resulting in a lack in efficiency. From the feedback taken from
employees and through a critical management lens, organizational dynamic and the resulting
lack of connectivity between departments is additionally playing a large role in employee
dissatisfaction. While TZ at the senior management levels appears to communicate well in
the decision-making process, the power distance between the senior management and the
employees in the lowest hierarchal tier is vast resulting in employees feeling that they have
little to no impact on the overall decision-making process at TZ. This could be regarded as
alarming seeing that the lower tier employees are the frontline of TZ, have a vast arrange of
knowledge not just in their field of expertise, but also in operation experience.
Unless TZ looks at consolidating their procedures and streamlining their processes, TZ could
very well be looking at a continued drop in attendance records and revenue over the coming
years. With a highly competitive experience industry in NSW, including a private zoo being
planned for western Sydney, TZ would benefit by applying more critical management
through:
• Introducing 360 Degree Meetings
• Undertaking an operations audit
• Streamlining TZ Processes and Procedures
• Encouraging greater interaction between the various tiers of TZ
• Implementing a learning through mentoring programme
These changes would need to be introduced slowly due to the hierarchical nature of the
organisation but, if done correctly, TZ can become competitive once again and even emerge a
leader amongst its competitors moving into the future.
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6. Reference List
Dacin, T. M., Munir, K. & Tracey, P. 2010, ‘Formal dining at Cambridge colleges: Linking
ritual performance and institutional maintenance', Academy of Management Journal,
vol. 53, no. 6, pp. 1393-1418.
Danneels, E. 2008, ‘Organizational antecedents of second-order competences’, Strategic
Management Journal, vol.29, no. 5, pp. 519-543.
Downs, C.W. & Adrian, A. D. (2012) Assessing organizational communication: Strategic
communication audits. Guilford Press, UK.
Feldman, C., D. 1976, ‘A contingency Theory of Socialisation', Administrative Science
Quarterly, vol. 21, no. 3 pp. 433-452.
Frew, B. 2009, ‘Neither Hierarchy nor Network: An Argument for Heterarchy', People and
Strategy, vol. 32, no. 1, pp. 11-12.
Foster, M. W. and Wiebe, E. 2011, Praxis Makes Perfect: Recovering The Ethical Promise of
Critical Management Skills, Journal of Business.
Fournier, V. & Grey, C. 2000, ‘At a Critical Moment: Conditions and Prospects for Critical
Management Studies,’ Human Relations, vol. 53, no. 7, pp. 7-32.
Grey, Chris Willmott, Hugh. 2005, Critical Management Studies: A Reader, Oxford
University Press.
Heckman, J. J. & Kautz, T. (2012), ‘Hard evidence on soft skills’ Labour economics, vol. 4,
no. 19, pp. 451-464.
Helfat, D.E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, R., Teece, D., & Winter, S.G.
2007, Dynamic capabilities Understanding strategic change in organizations. Oxford,
Blackwell, London.
Hodgson, E., D. 2004, Project Work: The Legacy of Bureaucratic Control in the Post-
Bureaucratic Organisation, SAGE, London.
Katkalo, V. S., Pitelis, C. N., & Teece, D. J. 2010, ‘Introduction: On the nature and scope of
dynamic capabilities’, Industrial and Corporate Change, vol. 19, no. 4, pp. 1175-
1186.
Lee, H. 2013, ‘Dynamics of Hierarchy and Heterarchy as a Mechanism for Promoting
Innovation and Knowledge Creation', International Journal of Advancements in
Computing Technology, vol. 5, no. 12, pp. 191-196.
Ludwig, G. & Pemberton, J. 2011, ‘A managerial perspective of dynamic capabilities in
emerging markets: the case of the Russian steel industry’, Journal of East European
Management Studies, vol. 16, no. 3, pp. 215-236.
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Luthans, F. & Peterson S.J. 2003 ‘360-degree feedback with systematic coaching: Empirical
analysis suggests a winning combination’ Human Resource Management, vol. 3 no.
42, pp. 243-256.
Mitchell, M. & Eckstein, S. 2009, 'The Influence of Power Distance and Communication on
Mexican Workers', Journal Of Business Communication, vol. 49, no. 2, pp. 169-184.
Reihlen, M. 1996, The Logic of Heterarchies Making Organisations Competitive for
Knowledge-based Competition, University of Cologne, Germany.
Romme, G., Zollo M., & Berends P. 2010, ‘Dynamic capabilities, deliberate learning and
environmental dynamism: a simulation model,’ Industrial and Corporate Change,
vol. 19, no. 4, pp. 1271 – 1299.
Romme, L. & Georges, A. 1996, ‘A note on the hierarchy-team debate', Strategic
Management Journal, vol. 17, pp. 411-417.
Spelthann, V. & Haunschild, A. 2011, ‘Organizational Creativity in Heterarchies: The Case
of VFX productions', Creativity and innovation Management, vol. 20, no. 2, pp. 100-
107.
Teece, D.J., Pisano, G., & Shuen, A. 1997, ‘Dynamic capabilities and strategic Management’,
Strategic Management Journal, vol. 18, no. 7, pp. 509–533.
Winterich, K. & Yinlong, Z. 2014, 'Accepting inequality deters responsibility: How Power
Distance Decreases Charitable Behaviour', Journal Of Consumer Research, vol. 41,
no. 2, pp. 274-293.
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7. Appendices
7.1. Appendix A: TZ 2012/13 Annual report
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7.2. Appendix B: Graphs
	
	
	
	
Has	there	been	any	change	introduced	in	your	organisation	in	
the	last	two	years?
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7.3. Appendix C: Questionnaire Table Analysis
Topic Result/ Analysis Comment
Communication Face to face followed by emails were the
most common forms of communications.
Positive information that could be fed
back to organisation to continue use of
this form of communication
Face to face was viewed as the most
effective.
Positive information that could be fed
back to organisation to continue use of
this form of communication
The effectiveness of emails produced
varied responses as did meetings.
May warrant further investigation
through interviews.
Improvements may be needed or
suggested as to how emails and
meetings are used.
Overall the larger proportion of the
sample viewed communications as
neutrally effective and above.
Positive information that could be fed
back to organisation
Conflict resolution The sample was equally divided on their
thoughts regarding if conflicts are dealt
with and resolved openly.
May warrant further investigation
through interviews
The sample was equally divided on their
thoughts regarding if conflicts are dealt
with in a timely manner.
May warrant further investigation
through interviews
Mission statement The majority of the sample thought the
mission statement was clearly
communicated
Positive information that could be fed
back to organisation
Varying forms of delivery methods
linked to the Mission Statement were
reported across policies, inductions and
regular communications.
Positive information that could be fed
back to organisation
Change within the
last 2 years
The sample responses were mixed
regarding whether there had been
substantial change in the last two years,
Respondents likely focussed on
change that directly impacted them,
rather than holistic or organisational
Matthew	Pearce	
	
30	|	P a g e 	
	
Topic Result/ Analysis Comment
with the majority suggesting there had
been change.
wide change. Particular units within
the precinct have experienced
significant change, being impacted by
collection changes and new projects in
current master-planning.
Organisational
structure
The majority of the sample viewed the
structure as Top Down
The link at the bottom of the table will
help.
Teams are structured mainly by
Functions or Services.
Routine on the precinct requires
specific knowledge and skill sets that
are not readily transferrable between
departments.
Organisational
culture
The sample reported mixed views
regarding whether the organisational
culture is represented in the codes of
practice with a marginal proportion
favouring formal means of
demonstration.
May warrant further investigation
through interviews
Conflict resolution The sample was equally divided on their
thoughts regarding if conflicts are dealt
with and resolved openly.
May warrant further investigation
through interviews.
The sample was equally divided on their
thoughts regarding if conflicts are dealt
with in a timely manner.
May warrant further investigation
through interviews.
Effects of Rules and
Regulations
A large proportion of the sample saw the
rules and regulations as ‘restrictive’
May warrant further investigation
through interviews.
But, this may be expected given the
organisational structure and means by
which individual departments need to
operate and have some form of
consistency across the whole
Matthew	Pearce	
	
31	|	P a g e 	
	
Topic Result/ Analysis Comment
organisation.
Continuous
innovation
The sample produced mixed responses as
to whether continuous innovation is used
in the organisation.
May warrant further investigation
through interviews.
Management style A very large proportion reported
Managers as being very approachable.
Positive information that could be fed
back to organisation
A large proportion saw the leadership as
effective
Positive information that could be fed
back to organisation
The sample provided mixed responses to
whether employees received appropriate
recognition or promotion from
management
May warrant further investigation
through interviews.
The majority of the sample suggested
there was support provided from
management for individual’s success and
development needs
Positive information that could be fed
back to organisation
The majority of the sample reported trust
in management decision making
Positive information that could be fed
back to organisation
The majority of the sample reported
central decision making processes versus
individual empowerment
May warrant further investigation
through interviews.
Individual’s needs
and role in
organisation
The majority of the sample reported they
were satisfied in their jobs.
Positive information that could be fed
back to organisation
There were mixed views reported for
whether individual’s felt they played a
part in the overall decision making
processes.
May warrant further investigation
through interviews.
These viewpoints changed for a ‘team’
level compared to the wider
organisation impact.
The majority of the sample felt they were
a valued asset of the company.
Positive information that could be fed
back to organisation.
Matthew	Pearce	
	
32	|	P a g e 	
	
Topic Result/ Analysis Comment
The greater effect of ‘worth’ was felt
on a team level.
The majority view was that there was an
emphasis placed on individual KPIs
Positive information that could be fed
back to organisation
There was a large percentage of the
sample that reported they felt there were
insufficient resources to enable them to
complete their jobs.
May warrant further investigation
through interviews.
Team work The majority of the sample reported
positive team working.
Positive information that could be fed
back to organisation.
The majority viewpoint was that team
objectives were aligned to the whole
organisation.
Positive information that could be fed
back to organisation.
Responses as to whether there is
competition between differing
departments produced a mixed result with
the majority leaning towards the neutral
weighting or lower.
Positive information that could be fed
back to organisation.
The majority viewpoint was that there are
high levels of co-operations between
departments
Positive information that could be fed
back to organisation.
Matthew	Pearce	
	
33	|	P a g e 	
	
7.4. Appendix D: Interview Questions
Communication
1. Emails have been rated as the second most used means of communication with in the
organization. However, the results show that it is considered the least effective means
of communication. Why do you think employees feel emails are the least effective
means of communicating information? Do you feel there is a better medium / method
of communicating information to your employees?
2. The results have identified that some conflicts within the organization are not handled
in an open or timely manner. Please describe the current organizational process for
handling conflict? 
 

3. Is there cross-functional communication between the various business units within the
organization? How is this communication conducted?
Structure
1. Horizontal team structure is said to allow flexibility with in the team to vary
individual workload under changing task demands. How will introducing a horizontal
team, impact day-to-day operations? Do you see this being successful?
2. There is a perception that hierarchies have lost their relevance in today's turbulent
business context. Do you feel that management have lost sight on the organizations
goals? And do you feel that management decisions need to be made based on input
from the bottom of the hierarchy if not your customers?
3. Do you feel introducing a heterarchical team into your organization will benefit
organizational decision-making and overall employee self-worth?
Matthew	Pearce	
	
34	|	P a g e 	
	
Organizational Dynamics
1. How does the organization support and encourage the employees?
Specifically do you promote the employee who has good performance?
2. When the organization has key decisions which need making, do you consider the
advice or suggestion form employees? Additionally are the employees involved in the
decision-making process?
Matthew	Pearce	
	
35	|	P a g e 	
	
7.5. Appendix E: Interview Analysis
Notes from Interview with Nick Boyle
• Ground staff daily interaction with each other is face to face would be accurate
• Nick is available for general pop ins but most is- meetings and emails- and does set
times to meet individuals if they require
• Nick’s meetings today- 10-11, 11-12, 12-1, 1:30, 2-3, 3:30-4:30- Leadership team,
HR, direct reports (5 supervisors reporting to him), His GM (Life Sciences), and rest
face to face set meetings with employees- open door though if there is something to
talk about.
Levels of Management
1. Board
2. Senior Management Team (6 GM and Director)
3. LS- Leadership Team- Senior Management + Upper Middle Management (Nick is
apart of this)
4. Nick
5. 5 Supervisors (elephant, carnivores, ungulates, Asian primates, African primates)
6. Senior Keepers
7. 55 Keepers, Full/Casual
• They are trying to challenge the senior keepers to support organisation and
supervisors a bit more. Not as supportive as they want them to be.
• ‘Collection Rationalization’- what will be kept and what get rid of- to increase
efficient use of resources- animal welfare, research, tangible conservation, visitor
experience and finance sustainability- That would account for the complaints about
change. Keepers aren’t big fans of this.
• Culture is formal indicative of a government organisation.
• People are a mix of formal and informal personalities. Are mostly Engaged and
intelligent but are also hands on
• Most employees have worked there for over 10 years- stuck in a rut- Supervisors are
younger who have an x-factor- begrudging from older employers to these managers
Matthew	Pearce	
	
36	|	P a g e 	
	
• Safety aspect to regulations- Tender process is very slow, heaps of red tape. 45 policy
and procedures. Code of Conduct. OHS
E.g.- Policy of using your own car for work things. A couple of levels of approval.
Forms to fill out just to go to Bunning’s in your own car.
• Aging exhibits and infrastructure makes it hard to keep everything working- Has to go
through the process of approval for improvements and maintenance- meanwhile the
person who made the original application for repair are still waiting for something to
be done- then blame maintenance.
• Employees are normally critical of upper management and direct supervisors.
Nick’s Opinion on what needs to be improved
• Taronga should look at consolidating their procedures and a steam lined processes.
• His role is hugely administrative- have a lot more to offer than approvals and admin
etc.
• Haven’t put enough time and effort into soft management at the supervisor/ senior
keeper level- i.e. lower level
• Fair point on recognition
• Progression linked to longevity
• Sometimes too big to readily acknowledge achievement
• Quarterly recognition but no value placed on them
• Situation Behaviour Impact SBI is used as their critique style- However these has to
be more positive feedback with critiques.
• Recruitment- making sure they are recruiting people who have skills beyond science
and animals- higher EQ people skills- Change the culture- 21st
Century Expectations
• Spending and efficiency is a huge issue. Need to get much better with financial
management- i.e. common for them to tighten the belt in some areas but are more
proliferate in other areas
E.G. New Tiger Keep- $12 million budget- includes trips abroad, etc.
YET they have to scrimp and save for bins. This causes conflict and a sense of waste
within organisation.
Matthew	Pearce	
	
37	|	P a g e 	
	
• Cost 10x more to build structures at Taronga than in other private zoos. Tender
process improvement? Cost and Charge?
• Conservation organization (with research) vs. Experience- Need to straddle the divide
• Meetings are normally critical rather than praising

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Taronga Zoo- Operations Audit

  • 2. Matthew Pearce 2 | P a g e Executive Summary This is an audit report reviewing organisational practices of Sydney tourism centre Taronga Zoo referred to as ‘TZ’. TZ is a State Government Agency reporting to the Office of Environment and Heritage. TZ can be classed as a major tourism organisation, while also a central conservation institution both locally and internationally. The objective of this report was to determine the reasons why TZ has experienced stagnation in growth figures over the last six years and offer proposals as to whether changes could be made to the current organisational structure to improve efficiency and effectiveness of operations. The review also looked to identify challenges and opportunities for TZ into the future. Data was collected via a pool of 20 questionnaires from differing levels of staff. The initial data was analysed and relevant themes were further explored via interviews. A thematic analysis was completed post each interview to further examine the commonality of findings. Questionnaire results displayed some salient points linked to management styles, rules and procedural frustrations, and overall communications and integrations across differing departments. Across the whole organisation there seemed to be a lack of understanding of wider organisational impacts linked to change. The interviews were used to inform further reviews of the company. From the data analysed the following topics are discussed in line with theoretical implications: • Institutional Bureaucracy • Applications of Critical Management • Organisational Dynamic Capabilities The themes identified were negative effects of bureaucracy calling for recommendations of: • Introducing 360 Degree Meetings • Undertaking a full organisation wide operations audit • Streamlining TZ Processes and Procedures • Encouraging greater interaction between the various tiers of TZ • Implementing a learning through mentoring programme
  • 3. Matthew Pearce 3 | P a g e Table of Contents 1. Introduction and Organisation Background .................................................................................... 4 2. Methodology ................................................................................................................................... 5 3. Data Analysis .................................................................................................................................. 7 3.1. Employee survey .......................................................................................................................... 7 3.2. Management Interview ................................................................................................................ 8 4. Findings and Theoretical Application ............................................................................................. 9 4.1. Institutional Bureaucracy ....................................................................................................... 10 4.2. Applications of Critical Management .................................................................................... 12 4.3. Organisational Dynamic Capabilities ..................................................................................... 14 5. Conclusion .................................................................................................................................... 17 6. Reference List ............................................................................................................................... 18 7. Appendices .................................................................................................................................... 20 7.1. Appendix A: TZ 2012/13 Annual report ................................................................................ 20 7.2. Appendix B: Graphs .............................................................................................................. 25 7.3. Appendix C: Questionnaire Table Analysis ........................................................................... 29 7.4. Appendix D: Interview Questions .......................................................................................... 33 7.5. Appendix E: Interview Analysis ............................................................................................ 35
  • 4. Matthew Pearce 4 | P a g e 1. Introduction and Organisation Background TZ is a State Government Agency reporting to Office of Environment and Heritage and the associated minister. TZ is a major tourism centre, while also maintaining a central conservation role within the state government and internationally. Operating out of two major state sites, TZ is organised into six central divisions each covering Commercial Services, Marketing and Fundraising, Capital Works and Infrastructure, Life Sciences, Research and Conservation, People and Learning and Second Site Management. Each division has a general manager who is also a member of the seven- person senior leadership team including the organisation’s chief executive officer. This board in turn reports to a central trust governance board responsible to the Minster for Environment and Heritage. Established in 1916, TZ is a highly specialised organisation within a niche market in the highly competitive Australian tourism industry. Expert employees have very little flexibility with regards to movement within the industry and tend to be long term employed. Over the last six years TZ has had a somewhat disjointed performance record within the industry. In the 2012/13 financial year it completed its 12-year $221m redevelopment project (See Appendix A). However, TZ has experienced challenges to its overall performance within the tourism industry: • A stagnation of visitor numbers over the last six-year period with only 6.9% growth in the period of 2006-2013 (Appendix A: 2012/13 Annual Report). • Shrinking revenue base over the same period resulting in much less capital expenditure and upgrades to its facilities and support for its central conservation mission (Appendix A: 2012/13 Annual Report). The objective of this report is to determine the reasons for this stagnation in growth figures both in visitations and financials over the last six years and whether changes can be made to the current organisational structure to improve efficiency and effectiveness of operations. Whereby our goal is to analyse the underlying challenges and opportunities for TZ into the future.
  • 5. Matthew Pearce 5 | P a g e 2. Methodology In order to get a complete and representative picture of the organisation’s management and operational structure, this study has used primary data collected through both a quantitative questionnaire and a qualitative interview. The report has focused on one department directly responsible for Research and Conservation as quoted in the introduction. This department consisted of one General Manager and 55 employees. The questionnaire was the basis of our primary research and consisted of 31 questions given to all the employees within the work group. The employee survey was built around four broad areas: 1. Organisational Communication 2. Organisational Leadership 3. Organisational Dynamics 4. Organisational Structure Of the 55 possible respondents, 20 completed the survey, which is a response rate of 36 per cent. The results from the questionnaire were analysed and common response pattern identified The group conducted a series of four (4) interviews with the General Manager (GM). This was based on the findings from the quantitative research and in-depth questions were designed (Appendix B: Questionnaire Summary Graphs) and focused on: • The core competencies and capabilities of the organisation. • The major management challenges and opportunities facing the organisation over the next five years. • The initiatives being put in place to address these challenges and • Opportunities and an assessment of how effective they are A complete analysis was developed post interview to further examine the commonality of findings
  • 6. Matthew Pearce 6 | P a g e To provide meaningful advice to TZ, data collected from the surveys and interview were further combined with relevant academic literature using the triangulation method (figure 1) thereby providing TZ with a comprehensive report and recommendations: Figure 1: Triangulation method Analysis Analysis of the research will form the core of the reports findings and subsequent recommendations. The primary function of the analysis is to identify the key issues to be discussed in the evaluation from which recommendations can be drawn.
  • 7. Matthew Pearce 7 | P a g e 3. Data Analysis 3.1. Employee survey Regarding the organisational communication, the most common communication form was face to face, followed by emails and then meetings, which are also stated as the top three most effective forms. 85% of the respondents agreed that the mission statement is communicated effectively to them, however only 65% felt that the organisation achieved its mission of this 70% felt they were connected to the mission and there was no conflict between the stated mission and operations. This indicates that the mission of TZ is clearly communicated to the employees, although there is lower agreement as to whether it achieves its stated mission. The data collected from the survey gave indications of an effective leadership style on the meso level. All participants rated their leader as either ‘very approachable’ or ‘approachable’ (90% and 10%). Also, they trust their manager’s judgement capability and evaluate managers’ communication as effective (90%). It was shown that 65% think that the organisation always listens to employee’s suggestions when making decisions. 60% of the respondents described the communication as effective. The results from the survey showed that the organisation relies on KPIs. This indicates that it is an outcome driven organisation (Appendix B). Overall the data collected from the survey shows that the leadership within the division is effective, although it is mixed thoughts about how much the organisation is listening to the employees when making decisions. There is a good cooperation between the different departments, they are generally very open to share information with each other and there is a low level of competition between them. Regarding the cooperation between departments, 80% claimed that there is high cooperation on a meso level (Appendix B). The organisational structure can be described as predominantly top down and formal (60%). This is further enhanced by the fact that most respondents felt the organisation was structured either by function (65%) or service (25%). When asked if their teams worked well together, 65% of participants felt the team worked well together (see Appendix B). To sum up, the organisational culture can be described as mixed. Formal lines of control prevent complete
  • 8. Matthew Pearce 8 | P a g e organisational collaboration; smaller teams themselves are also mixed as to whether there are good working relationships between employees. Even though the organisation has just finished 10-year development plan, 40% of the respondents didn’t feel like there was any change emerging within the organisation. This lack of understanding brings us to one of our core findings within the questionnaire. Large portions of the respondent’s feel they do not have enough resources to complete their duties according to expectations. This suggests varied organisational trust. Through the initial research we have discovered that there may be a conflict between the tourism and conservation purpose of the organisation following recent changes. 3.2. Management Interview Through the interview, important findings from the survey become stronger as it was confirmed and supported by the GM. The interview proved that the employees communicate very well with their manager but the communication to employees from the top tier of the organisation is disjointed and one directional. However, the GM admits that there are times he has to put his own work on hold in order to mediate friction that has occurred amongst employees (Appendix E). Although the interviewee gave evidence of an organisation with positive characteristics, he did note the following challenges: • He finds weakness within his micro level managers and their soft management skills • Procedures and processes within TZ are convoluted and constricting and need streamlining • There is very little room for personal growth for all employees • Lower level employees don’t feel like they are a vital component within the organisation
  • 9. Matthew Pearce 9 | P a g e 4. Findings and Theoretical Application The organisation of TZ is a top down hierarchal structure, where teams are designed by function of service. Figure 2 illustrates a high level view of the organisational chart of TZ. Information is channelled from the Board at the top and filtered through each level until it reaches the employees (k) at the bottom of the chart as need to know information. Figure 2: TZ Organisational Flow Chart A hierarchal structure provides the board with a complete picture of the organisation’s flow (Frew, 2009) and enforcers’ stability and formality through routine (Reihlen, 1996). Through clear ‘decision-making chains, rules and responsibilities,’ (Lee 2013, p. 191) the hierarchy structure is theorised to ensure efficiency within an organisation. The formalised top-down structure acts as a vertical information channel that, ‘allows efficient information processing,’ (Reihlen, 1996, p. 6) within departments. The departments, which are controlled by a supervisor, allow accountability for individual action and limit the damage a single individual can do to the organisation by buffering communication channels with external entities that management usually engage (Romme, 1995). This structure creates a highly specialised job role for the individual staff member, as they require specific skill sets and knowledge that are not readily transferable between departments. These buffers defend the organisation from internal dissent (Lee 2013) through frameworks that reinforce routine, consistency and stability to satisfy an organisational need (Romme, 1995). However this tight organisational structure has created a bureaucratic environment where employees feel the rules and regulations are restrictive (Appendix C).
  • 10. Matthew Pearce 10 | P a g e 4.1. Institutional Bureaucracy Rules and regulations that create a sense of restriction amongst employees are best explained by Dacin, Munir and Tracy’s (2010) view on institutional theory. Institutional theory is the most common business perspective used to help explain and understand organisational culture and beliefs confined within the stability of hierarchies. TZ’s hierarchical structure causes information within the organisation to be modified to degrees of abstraction for upper management and lower tiered employees (Appendix C). Information separation at different tiers of the hierarchy makes decision making within the organisation bureaucratic (Reihlen, 1996). Hodgson (2004) describes bureaucracy as paper- driven, inflexible and inefficient, which, is the stereotypical structure of government organisations. TZ’s mimicking of government processes and procedures is not suited to their overall strategic mission of conservation (Appendix C). TZ’s current bureaucratic process not only wastes time and resources, but also decreases the productivity of the organisation (Ludwig & Pemberton, 2011). There are many examples in TZ where bureaucracy has limited its ability to perform at an optimum level. We can summarise these into 4 areas: 1. Tender Process - As it stands the tender process is both inefficient and expensive sometimes costing TZ ten times more than its private competitors to develop new attractions. 2. Complicated Internal Procedures - These are slow paper-driven procedures that need to be followed to perform simple tasks. For example if an employee needed use their own car to go the local hardware store for material they need to apply through two levels of approvals from their supervisor and leadership team member (Appendix E). Additionally any maintenance applications within the park need to first be applied to online then be passed through the two department heads of capital works and site management before work is finally conducted.
  • 11. Matthew Pearce 11 | P a g e 3. Convoluted Policy Structure - As it stands TZ has 45 policy and procedures, one Code of Conduct and a separate set of OH & S rules. This makes operating within the organisation complicated and inefficient. 4. Loss of Phronesis - As a side effect of the complicated internal procedures and convoluted policy structures there is a loss of phronesis with in TZ’s bureaucratic organisation. Most employees of TZ have been with the organisation for an average of 5- 10 years acquiring high amounts of Phronesis. However, this knowledge and wisdom is not transferred up the tiers as input for upper managerial decisions. Recommendations • Streamline TZ Processes It is recommended that TZ management should look at consolidating their procedures and streamlining their processes into one overriding operations manual. As it stands TZ’s institutional top down bureaucratic processes limits the ability for employees especially on the lower tiers of the organisation to operate efficiently. It is not our recommendation to completely change TZ’s hierarchal structure. The day-to-day operations at TZ, requires a top-down hierarchical approach, to enforce safety protocol, stability and formality (Reihlen, 1996). However, in regards to decision making TZ management need to create a communications channel that allows a bottom up approach. Employees, feel ‘TZ management should look at consolidating their procedures and stream lining their processes’ (Appendix C). In order to streamline process, TZ first needs to consider resource reorganisation that is; flat-lining tier approvals for smaller activities, which will allow for strategic flexibility (Ludwig and Pemberton, 2011). • 360 Degree Group Meetings TZ needs to consider implementing aspects of neo-institutional theory, which explores employee phronesis (Dacin et al., 2010). Spelthann & Haunschild (2011) identify that phronesis is not transferable into documents but best communicated through Fieldman’s (1976) contingency theory of socialisation. Fieldman’s (1976) theory describes social encounters with other employees as ‘the main source of creativity, inspiration and working morale’ (Spelthann & Haunschild, 2011, p. 105). 360-degree group meetings involve
  • 12. Matthew Pearce 12 | P a g e feedback from multiple stakeholders including immediate colleagues, supervisors, senior management as well as members of other departments (Luthans et al., 2003). This currently is a common practice at the management level in TZ through ‘Work-In-Progress’ meetings (Appendix E). 360-degree meetings is an effective tool to create a relaxed social environment in which employees can share their knowledge, wisdom, thoughts. Furthermore, 360-degree meetings create the communication avenues for lower tiered employees to engage upper management directly (Luthans et al., 2003). 4.2. Applications of Critical Management Critical Management Studies (CMS) seeks to challenge traditional assumptions of power, accountability, hegemony and ideology within the workplace. According to Fournier and Grey (2000) management needs to start to view an organisation through the lens epistemology studies and as such needs to constantly revaluate and critically examine what is considered good operations and practice. In TZ’s case this revolves around upper management’s lack of engagement and support of their lower tiered employees. Because TZ is a government organisation it does run the risk of being labelled a controlling environment causing disempowered and undervalued feeling amongst employees. In fact, according to the questionnaire results (Appendix B) TZ is currently experiencing a high level of dissatisfaction amongst its employees, with 40% responding that management does not support and promote their development and organisational learning. In addition 30% of respondents felt they were unable to achieve the mission of the organisation due to lack of resources. Interviews with management identified further a lack of connectivity between upper levels of power, contributing to a large impact in employee dissatisfaction. Interview with the GM also confirmed that there is a lack of learning within the lower supervisor roles. It was identified that central decisions are often made at the board level and are communicated down to the lower tiers without any significant employee input, reflexivity and questioning. As such the application of CMS questions TZ’s management alignment between, ‘knowledge, truth and efficiency’ (Fournier & Grey 2000, p. 17) and whether this is challenged. Survey results from employees in TZ concluded that there was a mixed view on whether individuals in the lower level of the hierarchy play a significant part in the overall decision-making process (Appendix C). Additionally ideas generated by lower tiered employees, who are the face of the organisation, must flow through four layers of
  • 13. Matthew Pearce 13 | P a g e management before they reach decision-making authorities (Appendix E). Danneel’s (2008) identified that communication that moves through multiple channels is damaging to the organisation and results in high power distance and reduces employees commitment to the work they carry out within the organisation, known as low mutual influence (Feldman, 1976). Consequently employees feel they have no avenue to raise their concerns or ideas to the senior management directly (Winterich & Yinlong, 2014) and feel that this does not reflect due process. One of the key concerns when using the lens of Critical Management Theory to critique an organisation is whether or not that organisation takes into consideration the long-term impacts on not only individuals but also globally. CMS does not take mainstream management theories and practices at face value (Foster & Wiebe, 2011). As such TZ must question whether a government model of operations is right for their organisation. Recommendations • Training at the lower supervisor levels Training supervisors at the lower level with soft management skills will remove the current overload on upper management (Heckman & Kautz 2012). This will allow supervisors to effectively communicate and manage conflict and issues in a more informal capacity, saving on more formal processes within upper management. • Senior management and lower tier interaction The presence of power distance and the low level of employee mutual distance can be mitigated by greater interaction between senior management and lower level employees. This in turn allows senior management to gain more perspective and insight into the everyday operations and actions of employees consequently decreasing power distance within the organisation. Because of this increased interaction, future decisions made by top management will naturally take into account new viewpoints from a wider range of stakeholders (Winterich & Yinlong, 2014). • Implement an Operations Audit The aim of this audit would be to apply CMS practice to the operations and structure of TZ and whether reflecting a standard government organisation is what is most effective. Thereby
  • 14. Matthew Pearce 14 | P a g e the goal would be to ‘uncover alternatives that have been effaced (previously) by management knowledge and practice.’ (Fournier & Grey 2000, p. 18) 4.3. Organisational Dynamic Capabilities Teece defines Dynamic Capabilities as the firm’s ability to adapt to rapidly changing business environments (Teece et al., 1997). In the case of TZ, due to the lack of growth results, it could be considered that TZ are finding it difficult to align or re-align with the changing business environment in which they are operating. This may be partially due to the two competing core goals of trying to achieve revenue growth whilst promoting and being conservationist. Dynamic Capabilities theory is focused on how companies can maintain their performance to ensure competitive survival (Katkalo et al., 2010). It can be considered that TZ possesses all attributes of Valuable, Rare, Imitable, and Non-Substitutable (VRIN) resources within the various Subject Matter Experts (SMEs) that they employ. The attractiveness of TZ as a world-renowned institute within conservation should help it maintain its capability standards and attract top SMEs. It could be viewed that given TZ has such a wealth of SMEs, this should be valued and understood as a key asset and that some of their less than successful business results may not be associated with these key assets rather how they balance other costings or ventures. Dynamic Capabilities theory suggests that the responsibility of achieving agility is placed at the senior managers remit and that it is these individuals that need to change their existing operating models and mindsets to achieve realignment (Teece et al., 1997). Whilst the data gathered was focused on mid level managers and front line staff, the responses from these individuals suggested that senior management or the influence of a government entity makes agility difficult to infiltrate through to day to day operations. The processes established and enforced by TZ, create a complex and difficult environment, which impedes any operational innovations. Convoluted procedures, induced by the nature of TZ being governed by State Government Agency, make any initiatives cost prohibitive and slow to adopt. Linked to the lack of resource allocation efficiencies, feedback from frontline staff suggests that they are not empowered to be able to reallocate resources based on
  • 15. Matthew Pearce 15 | P a g e changing requirements. This inability for the staff to provide guidance on changing demands can make the company less agile in recognising where resource improvements can be made. Therefore, the lack of organisational dynamics within TZ can be summed up in key 2 areas: 1. Lack of Critical Assessment Programmes – There is evidence that within TZ that assessment meetings are used predominantly to justify programmes and their resource allocation rather than critically assess them (Appendix E). This shows a lack of Dynamic Capabilities as management too infrequently questions whether they are using their VRIN resources (i.e. front line employees) at an optimum level. 2. Departmental Connectivity – Additionally the lack of connectivity between the departments and between the levels of management is further enhancing organisational disconnect. This in turn leads to a lack of efficiency and effectiveness in transferring SMEs across different programme thereby allowing top use of resources. Recommendations • 360 Degree Group Meetings TZ is in this instance missing the link in communication from the frontline staff back to top management. We recommend for the communication channel to be established, so the knowledge of SMEs can be used in order to achieve the organisational goals. As with leadership and communication, 360-degree meetings would provide an effective tool when looking at organisational dynamics. We suggest additionally to using it for lower management coordination, that it can be expanded to include employees from other departments and so create more dialogue and crossover within the greater organisation (Luthans et al., 2003). • Streamlining Processes Although the TZ holds all the positive attributes of a VRIN organisation, it can be considered that they are failing in utilising this advantage. The hierarchy, lack of empowerment and convoluted processes and procedures make any efforts for adaptability to evolving market conditions very difficult.
  • 16. Matthew Pearce 16 | P a g e • Organisational learning through mentoring While organisational learning is more of an organic process within organisations, this predominantly occurs through a strong mentoring programme. It was stated within the interview notes (Appendix E) most employees within TZ have been with the organisation for more than two years. Therefore, there is great potential for strong organisation learning within TZ that needs to be channelled in the right direction.
  • 17. Matthew Pearce 17 | P a g e 5. Conclusion When seeking to cognise the present practices at TZ we, the group, took an in depth view of institutional, dynamic capability, social contingency and critical management theory. Due to TZ being a State Government Agency, it present’s as a true hierarchy structure with bureaucracy being one of the key frustrations. Thus making for a restrictive workplace heavy on institutional process resulting in a lack in efficiency. From the feedback taken from employees and through a critical management lens, organizational dynamic and the resulting lack of connectivity between departments is additionally playing a large role in employee dissatisfaction. While TZ at the senior management levels appears to communicate well in the decision-making process, the power distance between the senior management and the employees in the lowest hierarchal tier is vast resulting in employees feeling that they have little to no impact on the overall decision-making process at TZ. This could be regarded as alarming seeing that the lower tier employees are the frontline of TZ, have a vast arrange of knowledge not just in their field of expertise, but also in operation experience. Unless TZ looks at consolidating their procedures and streamlining their processes, TZ could very well be looking at a continued drop in attendance records and revenue over the coming years. With a highly competitive experience industry in NSW, including a private zoo being planned for western Sydney, TZ would benefit by applying more critical management through: • Introducing 360 Degree Meetings • Undertaking an operations audit • Streamlining TZ Processes and Procedures • Encouraging greater interaction between the various tiers of TZ • Implementing a learning through mentoring programme These changes would need to be introduced slowly due to the hierarchical nature of the organisation but, if done correctly, TZ can become competitive once again and even emerge a leader amongst its competitors moving into the future.
  • 18. Matthew Pearce 18 | P a g e 6. Reference List Dacin, T. M., Munir, K. & Tracey, P. 2010, ‘Formal dining at Cambridge colleges: Linking ritual performance and institutional maintenance', Academy of Management Journal, vol. 53, no. 6, pp. 1393-1418. Danneels, E. 2008, ‘Organizational antecedents of second-order competences’, Strategic Management Journal, vol.29, no. 5, pp. 519-543. Downs, C.W. & Adrian, A. D. (2012) Assessing organizational communication: Strategic communication audits. Guilford Press, UK. Feldman, C., D. 1976, ‘A contingency Theory of Socialisation', Administrative Science Quarterly, vol. 21, no. 3 pp. 433-452. Frew, B. 2009, ‘Neither Hierarchy nor Network: An Argument for Heterarchy', People and Strategy, vol. 32, no. 1, pp. 11-12. Foster, M. W. and Wiebe, E. 2011, Praxis Makes Perfect: Recovering The Ethical Promise of Critical Management Skills, Journal of Business. Fournier, V. & Grey, C. 2000, ‘At a Critical Moment: Conditions and Prospects for Critical Management Studies,’ Human Relations, vol. 53, no. 7, pp. 7-32. Grey, Chris Willmott, Hugh. 2005, Critical Management Studies: A Reader, Oxford University Press. Heckman, J. J. & Kautz, T. (2012), ‘Hard evidence on soft skills’ Labour economics, vol. 4, no. 19, pp. 451-464. Helfat, D.E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, R., Teece, D., & Winter, S.G. 2007, Dynamic capabilities Understanding strategic change in organizations. Oxford, Blackwell, London. Hodgson, E., D. 2004, Project Work: The Legacy of Bureaucratic Control in the Post- Bureaucratic Organisation, SAGE, London. Katkalo, V. S., Pitelis, C. N., & Teece, D. J. 2010, ‘Introduction: On the nature and scope of dynamic capabilities’, Industrial and Corporate Change, vol. 19, no. 4, pp. 1175- 1186. Lee, H. 2013, ‘Dynamics of Hierarchy and Heterarchy as a Mechanism for Promoting Innovation and Knowledge Creation', International Journal of Advancements in Computing Technology, vol. 5, no. 12, pp. 191-196. Ludwig, G. & Pemberton, J. 2011, ‘A managerial perspective of dynamic capabilities in emerging markets: the case of the Russian steel industry’, Journal of East European Management Studies, vol. 16, no. 3, pp. 215-236.
  • 19. Matthew Pearce 19 | P a g e Luthans, F. & Peterson S.J. 2003 ‘360-degree feedback with systematic coaching: Empirical analysis suggests a winning combination’ Human Resource Management, vol. 3 no. 42, pp. 243-256. Mitchell, M. & Eckstein, S. 2009, 'The Influence of Power Distance and Communication on Mexican Workers', Journal Of Business Communication, vol. 49, no. 2, pp. 169-184. Reihlen, M. 1996, The Logic of Heterarchies Making Organisations Competitive for Knowledge-based Competition, University of Cologne, Germany. Romme, G., Zollo M., & Berends P. 2010, ‘Dynamic capabilities, deliberate learning and environmental dynamism: a simulation model,’ Industrial and Corporate Change, vol. 19, no. 4, pp. 1271 – 1299. Romme, L. & Georges, A. 1996, ‘A note on the hierarchy-team debate', Strategic Management Journal, vol. 17, pp. 411-417. Spelthann, V. & Haunschild, A. 2011, ‘Organizational Creativity in Heterarchies: The Case of VFX productions', Creativity and innovation Management, vol. 20, no. 2, pp. 100- 107. Teece, D.J., Pisano, G., & Shuen, A. 1997, ‘Dynamic capabilities and strategic Management’, Strategic Management Journal, vol. 18, no. 7, pp. 509–533. Winterich, K. & Yinlong, Z. 2014, 'Accepting inequality deters responsibility: How Power Distance Decreases Charitable Behaviour', Journal Of Consumer Research, vol. 41, no. 2, pp. 274-293.
  • 20. Matthew Pearce 20 | P a g e 7. Appendices 7.1. Appendix A: TZ 2012/13 Annual report
  • 25. Matthew Pearce 25 | P a g e 7.2. Appendix B: Graphs Has there been any change introduced in your organisation in the last two years?
  • 29. Matthew Pearce 29 | P a g e 7.3. Appendix C: Questionnaire Table Analysis Topic Result/ Analysis Comment Communication Face to face followed by emails were the most common forms of communications. Positive information that could be fed back to organisation to continue use of this form of communication Face to face was viewed as the most effective. Positive information that could be fed back to organisation to continue use of this form of communication The effectiveness of emails produced varied responses as did meetings. May warrant further investigation through interviews. Improvements may be needed or suggested as to how emails and meetings are used. Overall the larger proportion of the sample viewed communications as neutrally effective and above. Positive information that could be fed back to organisation Conflict resolution The sample was equally divided on their thoughts regarding if conflicts are dealt with and resolved openly. May warrant further investigation through interviews The sample was equally divided on their thoughts regarding if conflicts are dealt with in a timely manner. May warrant further investigation through interviews Mission statement The majority of the sample thought the mission statement was clearly communicated Positive information that could be fed back to organisation Varying forms of delivery methods linked to the Mission Statement were reported across policies, inductions and regular communications. Positive information that could be fed back to organisation Change within the last 2 years The sample responses were mixed regarding whether there had been substantial change in the last two years, Respondents likely focussed on change that directly impacted them, rather than holistic or organisational
  • 30. Matthew Pearce 30 | P a g e Topic Result/ Analysis Comment with the majority suggesting there had been change. wide change. Particular units within the precinct have experienced significant change, being impacted by collection changes and new projects in current master-planning. Organisational structure The majority of the sample viewed the structure as Top Down The link at the bottom of the table will help. Teams are structured mainly by Functions or Services. Routine on the precinct requires specific knowledge and skill sets that are not readily transferrable between departments. Organisational culture The sample reported mixed views regarding whether the organisational culture is represented in the codes of practice with a marginal proportion favouring formal means of demonstration. May warrant further investigation through interviews Conflict resolution The sample was equally divided on their thoughts regarding if conflicts are dealt with and resolved openly. May warrant further investigation through interviews. The sample was equally divided on their thoughts regarding if conflicts are dealt with in a timely manner. May warrant further investigation through interviews. Effects of Rules and Regulations A large proportion of the sample saw the rules and regulations as ‘restrictive’ May warrant further investigation through interviews. But, this may be expected given the organisational structure and means by which individual departments need to operate and have some form of consistency across the whole
  • 31. Matthew Pearce 31 | P a g e Topic Result/ Analysis Comment organisation. Continuous innovation The sample produced mixed responses as to whether continuous innovation is used in the organisation. May warrant further investigation through interviews. Management style A very large proportion reported Managers as being very approachable. Positive information that could be fed back to organisation A large proportion saw the leadership as effective Positive information that could be fed back to organisation The sample provided mixed responses to whether employees received appropriate recognition or promotion from management May warrant further investigation through interviews. The majority of the sample suggested there was support provided from management for individual’s success and development needs Positive information that could be fed back to organisation The majority of the sample reported trust in management decision making Positive information that could be fed back to organisation The majority of the sample reported central decision making processes versus individual empowerment May warrant further investigation through interviews. Individual’s needs and role in organisation The majority of the sample reported they were satisfied in their jobs. Positive information that could be fed back to organisation There were mixed views reported for whether individual’s felt they played a part in the overall decision making processes. May warrant further investigation through interviews. These viewpoints changed for a ‘team’ level compared to the wider organisation impact. The majority of the sample felt they were a valued asset of the company. Positive information that could be fed back to organisation.
  • 32. Matthew Pearce 32 | P a g e Topic Result/ Analysis Comment The greater effect of ‘worth’ was felt on a team level. The majority view was that there was an emphasis placed on individual KPIs Positive information that could be fed back to organisation There was a large percentage of the sample that reported they felt there were insufficient resources to enable them to complete their jobs. May warrant further investigation through interviews. Team work The majority of the sample reported positive team working. Positive information that could be fed back to organisation. The majority viewpoint was that team objectives were aligned to the whole organisation. Positive information that could be fed back to organisation. Responses as to whether there is competition between differing departments produced a mixed result with the majority leaning towards the neutral weighting or lower. Positive information that could be fed back to organisation. The majority viewpoint was that there are high levels of co-operations between departments Positive information that could be fed back to organisation.
  • 33. Matthew Pearce 33 | P a g e 7.4. Appendix D: Interview Questions Communication 1. Emails have been rated as the second most used means of communication with in the organization. However, the results show that it is considered the least effective means of communication. Why do you think employees feel emails are the least effective means of communicating information? Do you feel there is a better medium / method of communicating information to your employees? 2. The results have identified that some conflicts within the organization are not handled in an open or timely manner. Please describe the current organizational process for handling conflict? 
 
 3. Is there cross-functional communication between the various business units within the organization? How is this communication conducted? Structure 1. Horizontal team structure is said to allow flexibility with in the team to vary individual workload under changing task demands. How will introducing a horizontal team, impact day-to-day operations? Do you see this being successful? 2. There is a perception that hierarchies have lost their relevance in today's turbulent business context. Do you feel that management have lost sight on the organizations goals? And do you feel that management decisions need to be made based on input from the bottom of the hierarchy if not your customers? 3. Do you feel introducing a heterarchical team into your organization will benefit organizational decision-making and overall employee self-worth?
  • 34. Matthew Pearce 34 | P a g e Organizational Dynamics 1. How does the organization support and encourage the employees? Specifically do you promote the employee who has good performance? 2. When the organization has key decisions which need making, do you consider the advice or suggestion form employees? Additionally are the employees involved in the decision-making process?
  • 35. Matthew Pearce 35 | P a g e 7.5. Appendix E: Interview Analysis Notes from Interview with Nick Boyle • Ground staff daily interaction with each other is face to face would be accurate • Nick is available for general pop ins but most is- meetings and emails- and does set times to meet individuals if they require • Nick’s meetings today- 10-11, 11-12, 12-1, 1:30, 2-3, 3:30-4:30- Leadership team, HR, direct reports (5 supervisors reporting to him), His GM (Life Sciences), and rest face to face set meetings with employees- open door though if there is something to talk about. Levels of Management 1. Board 2. Senior Management Team (6 GM and Director) 3. LS- Leadership Team- Senior Management + Upper Middle Management (Nick is apart of this) 4. Nick 5. 5 Supervisors (elephant, carnivores, ungulates, Asian primates, African primates) 6. Senior Keepers 7. 55 Keepers, Full/Casual • They are trying to challenge the senior keepers to support organisation and supervisors a bit more. Not as supportive as they want them to be. • ‘Collection Rationalization’- what will be kept and what get rid of- to increase efficient use of resources- animal welfare, research, tangible conservation, visitor experience and finance sustainability- That would account for the complaints about change. Keepers aren’t big fans of this. • Culture is formal indicative of a government organisation. • People are a mix of formal and informal personalities. Are mostly Engaged and intelligent but are also hands on • Most employees have worked there for over 10 years- stuck in a rut- Supervisors are younger who have an x-factor- begrudging from older employers to these managers
  • 36. Matthew Pearce 36 | P a g e • Safety aspect to regulations- Tender process is very slow, heaps of red tape. 45 policy and procedures. Code of Conduct. OHS E.g.- Policy of using your own car for work things. A couple of levels of approval. Forms to fill out just to go to Bunning’s in your own car. • Aging exhibits and infrastructure makes it hard to keep everything working- Has to go through the process of approval for improvements and maintenance- meanwhile the person who made the original application for repair are still waiting for something to be done- then blame maintenance. • Employees are normally critical of upper management and direct supervisors. Nick’s Opinion on what needs to be improved • Taronga should look at consolidating their procedures and a steam lined processes. • His role is hugely administrative- have a lot more to offer than approvals and admin etc. • Haven’t put enough time and effort into soft management at the supervisor/ senior keeper level- i.e. lower level • Fair point on recognition • Progression linked to longevity • Sometimes too big to readily acknowledge achievement • Quarterly recognition but no value placed on them • Situation Behaviour Impact SBI is used as their critique style- However these has to be more positive feedback with critiques. • Recruitment- making sure they are recruiting people who have skills beyond science and animals- higher EQ people skills- Change the culture- 21st Century Expectations • Spending and efficiency is a huge issue. Need to get much better with financial management- i.e. common for them to tighten the belt in some areas but are more proliferate in other areas E.G. New Tiger Keep- $12 million budget- includes trips abroad, etc. YET they have to scrimp and save for bins. This causes conflict and a sense of waste within organisation.
  • 37. Matthew Pearce 37 | P a g e • Cost 10x more to build structures at Taronga than in other private zoos. Tender process improvement? Cost and Charge? • Conservation organization (with research) vs. Experience- Need to straddle the divide • Meetings are normally critical rather than praising