Analysis of australian organizations based on the nine dimensions approach

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Title: Analysis of Australian Organizations Based on the Nine
Dimensions Approach
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Course Name
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TABLE OF CONTENTS
1. INTRODUCTION..................................................................................................................................................4
1.1. BACKGROUND OF COMPANIES ....................................................................................................................................4
1.1.1. Dotti:............................................................................................................................................................4
1.1.2. Bamboo House: ...........................................................................................................................................4
1.1.3. Woolworths Supermarket:...........................................................................................................................4
1.2. PURPOSE OF QUESTION ............................................................................................................................................4
1.3. ISSUES IDENTIFICATION .............................................................................................................................................4
1.4. METHODOLOGY.......................................................................................................................................................5
1.5. ASSUMPTIONS AND LIMITATION..................................................................................................................................5
2. ANALYSIS............................................................................................................................................................5
2.1. COMPARISON –DATA COLLECTION FROM RESEARCH .......................................................................................................5
2.1.1. Formalization...............................................................................................................................................5
2.1.2. Specialization...............................................................................................................................................6
2.1.3. Hierarchy .....................................................................................................................................................6
2.1.4. Technology...................................................................................................................................................6
2.1.5. External Environment ..................................................................................................................................7
2.1.6. Culture.........................................................................................................................................................7
2.1.7. Goals............................................................................................................................................................7
2.1.8. Size...............................................................................................................................................................8
2.1.9. Organizational Mindset...............................................................................................................................8
2.2. SUMMARY OF RESULTS AND BAR CHART.......................................................................................................................8
2.2.1. Formalization:..............................................................................................................................................9
2.2.2. Specialization...............................................................................................................................................9
2.2.3. Hierarchy .....................................................................................................................................................9
2.2.4. Technology.................................................................................................................................................10
2.2.5. External Environment ................................................................................................................................10
2.2.6. Culture.......................................................................................................................................................10
2.2.7. Goals..........................................................................................................................................................10
2.2.8. Size.............................................................................................................................................................11
2.2.9. Organizational Mindset.............................................................................................................................11
2.3 MAIN SIMILARITIES .................................................................................................................................................11

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2.3.1. Formalization.............................................................................................................................................11
2.3.2. Specialization.............................................................................................................................................11
2.3.3. Hierarchy ...................................................................................................................................................11
2.3.4. Technology.................................................................................................................................................11
2.3.6. Culture.......................................................................................................................................................12
2.3.7. Goals..........................................................................................................................................................12
2.3.8. Size.............................................................................................................................................................12
2.4. MAIN DIFFERENCES................................................................................................................................................12
2.4.1. Formalization.............................................................................................................................................12
2.4.2. Specialization.............................................................................................................................................12
2.4.3. Hierarchy ...................................................................................................................................................13
2.4.4. Technology.................................................................................................................................................13
2.4.6. Culture.......................................................................................................................................................13
2.4.7. Goals..........................................................................................................................................................13
2.4.8. Size.............................................................................................................................................................13
2.5. DIMENSIONS (FORMALIZATION AND HIERARCHY) AND EFFECTIVENESS..............................................................................14
3. CONCLUSION....................................................................................................................................................14
4. RECOMMENDATION.........................................................................................................................................15
4.1. MORE IN DEPTH ANALYSIS .......................................................................................................................................15
4.2. SIMILARITIES:........................................................................................................................................................15
4.3. LEVELS OF DIFFERENCE ...........................................................................................................................................15
4.4. HIERARCHIES SHOULD BE LESS FORMALIZED:................................................................................................................15

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1. Introduction
A background of the companies, the type of research that will be conducted and some of
the more basic assumptions and scope for the research are presented in the introduction section.
1.1. Background of Companies
1.1.1. Dotti: Dotti is a clothing retail innovation that was born in the 1980’s. It sells clothes both
online and in retail physical store outlets. Power dressing, individual styles, high-street fashion
mixed with international trends are the unique elements of Dotti dressing. Dotti clothing brands
have a strong clothing retail presence.
1.1.2. Bamboo House: Bamboo House is a fine dining Chinese restaurant. The business was
launched in 1984 and its mission is to ensure that people dining for either business or pleasure
both have the best memorable experience in food and ambience (Bamboo House, 2012).
1.1.3. Woolworths Supermarket: Woolworths supermarket that sells fresh food online
(Woolworths, 2013) and in the store is the third business selected. The Woolworths supermarket
is part of Woolworths Limited which is headquartered in Bella Vista, New South Wales. The
company specializes not only in supermarkets but also petrol, liquor and general merchandise
industries.
1.2. Purpose of Question
The research purpose is to compare three organizations based on the nine dimensions of
formalization, specialization, hierarchy, technology, external environment, and culture, goals,
size and organizational mindset. The research will indicate where the organization falls with
respect to each of the dimensions and will make recommendations based on how organizational
effectiveness gets affected by them.
1.3. Issues Identification

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There are some issues that the companies share such as the competition threat that exists
for them. Dotti has competition in the form of other clothing retailers; Bamboo house faces
threats from other Chinese restaurants and fine dining establishments. Woolworths has a much
better target positioning, however brand value has been brought into question because of
corporate social responsibility issues. To face these external threats, the internal environment has
to be geared up, but how efficient the internal environment is becomes the main subject issue for
discussion.
1.4. Methodology
A mixed research approach is use here. The mixed research uses both primary and
secondary data collections. The reason for the mixed approach is that it help collect more direct,
accurate and current data on what the nine dimensions.
1.5. Assumptions and Limitation
The research is limited to only analyzing the dimensions and not the relationships or
overlapping of dimensions. The assumption made is that each of the dimension is unique.
2. Analysis
An analysis of the data is presented here. The data is collected on the companies by
means of primary research and also the needed secondary research. Data is presented in sections.
Section 2.1 presents the data collected, in a comparative context. Section 2.2 presents a bar chart
summary of the ratings, Section 2.3 and 2.4 present the similarities and the differences, and
section 2.5 selects two related dimensions, from which a more detailed analysis can be done of
the organization’s effectiveness. Based on the analysis the research concludes with
recommendations.
2.1. Comparison –Data Collection from Research
The results of the primary research for the three organizations Dotti, Bamboo House,
Woolworths Supermarket are presented here in a comparative context.
2.1.1. Formalization

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Formalization represents the level to which an organization has written rules. In an
interview conducted with three middle-management level employees of the organization
different data were collected. In Dotti, the employee stated that there were formal rules and
procedures, but in times of contingencies when the retail store presents holiday offers and more,
it will be necessary to break protocol. Any organization can have either too many written rules or
too few rules. On a level of 1-10 with 1 standing for 'many written rules' and 10 for 'few rules',
Dotti employee rated 5, the Bamboo House employee rated 7, and Woolworths Supermarket
rated 3. This indicates that Woolworths is more formalized in its practices and procedures.
Bamboo House is comparatively less formalized whereas Dotti ranges somewhere in between,
indicating a balanced approach between too many rules and too little.
2.1.2. Specialization
Specialization represents the segregation of tasks and roles in an organization. On a level
of 1-10 with 1 standing for separate tasks’ and 10 for 'overlapping tasks', In terms of
specialization, the Dotti employee rated 8 indicating that they inclined towards having
overlapping tasks, the Bamboo House employee inclined towards overlapping tasks by rating 9,
and Woolworths inclined towards having well separated tasks by rating 4. Both Dotti and
Bamboo House are less specialized in task structures than Woolworths.
2.1.3. Hierarchy
Hierarchy represents the form of organizational structure. An organizational structure
might be flat with the authority being disseminated in the flat hierarchy or could be a tall
structure. There are matrix and other forms of hierarchies also. In rating on a scale of 1-10 with 1
representing the ‘Tall hierarchy of authority’ and 10 representing the ‘Flat hierarchy of
authority’, Dotti employee rated 8, indicating the authoritative structure was more flatter,
Bamboo House also selected 8 and Woolworths rated 4. A flat hierarchy has a more one to one
control and increased autonomy and Dotti and Bamboo House are similar in how managers
might exercise their authority.
2.1.4. Technology
Technology stands to mean that core emphasis is on either a product or service. In service

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oriented industries such as Bamboo house, the service has to be rated high. However they serve
food which is a product, so they cannot afford to mismanage quality either. On a scale of 1-10
with 1 leaning towards product and 10 leaning towards service, Bamboo House employee rated
5. This shows they are balanced between product and service. Dotti and Woolworths on the other
hand rated a 3 leaning towards the product emphasis more than the service emphasis.
2.1.5. External Environment
The external environment can influence the form of organizational management and
hence the efficiency. In the context of an unstable environment, it will be necessary for
organization to be more contingency adaptable. On a scale of 1-10 with 1 representing that the
external environment is stable and 10 leaning towards unstable factors, Dotti selected 8,
indicating the external environment was highly unstable. Dotti employee stated that this was
because the fashion consumption varies based on demands and this made the clothing industry,
especially for high fashion retailers such as Dotti highly unpredictable. Bamboo house on the
other hand leaned towards a more stable external environment, same as Woolworths with a rating
of 4 and 5 respectively.
2.1.6. Culture
The culture of an organization can either lean towards having clearly defined norms and values,
such as a well defined missions and vision statement or there might be much ambiguity in the
definitions. In the scale of 1-10 with 1 representing ‘Clear norms and values’ and 10 representing
‘Ambiguous norms and values’, Dotti employee rated 2, stating that they had very clear norms
and values. The same rating was also given by Bamboo House and Woolworths. The rating
indicates that the companies have very similar culture of working.
2.1.7. Goals
An organization always should have well defined goals that it progresses towards. The
goals of the organization will include both long terms and short term-more immediate goals. In
the context of Dotti, Bamboo House and Woolworths, the rating lean towards 1 and 2, indicating
that the organizations have very well defined goals.

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2.1.8. Size
The size of the organization can influence how efficient the management and working of
the organization would be. The size of the organization can either be small or large and rating in
the respective scale, Dotti employee and Woolworts employee state that their organization is
more on the larger end. The more large an organization, the more its management and internal
operations might become a challenge. On the other hand Bamboo house rates itself as a smaller
organization
2.1.9. Organizational Mindset
The organizational mindset is either mechanistic system or is an organic system. The
mechanistic system has well formulated rules with organized and systematic differentiation of
tasks and authority. On the other hand in the case of and organic system there is much more
flexibility. In the context of organizational mind set, both Dotti and Bamboo House employees
rate a 7 leaning towards more organic system, and on the other hand Woolworths leans towards a
mechanistic system.
2.2. Summary of Results and Bar Chart

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2.2.1. Formalization:
In the context of Dotti it can be seen that it is in between, when it comes to formalization.
Where the work processes are structured it becomes easier for employee management, similarly
Woolworths leans towards structured rules. On the other hand Bamboo House is less structured
and hence might have lesser number of rules. While this encourages flexibility, too fewer rules
could make the organization inefficient.
With respect to specialization, Dotti has overlapping tasks and so do Bamboo house.
Overlapping tasks would mean the task structures are not well defined. These forms of overlaps
are good for businesses that are growing or are smaller in size. A business such as Woolworths
which is seen more established with more formalization, the specialization level is also high.
2.2.3. Hierarchy
In a taller hierarchy there is lesser autonomy, whereas in a flat hierarchy there are fewer
0 2 4 6 8 10
Formalization
Specialization
Hierarchy
Technology
External Environment
Culture for Company
Goals for Company
Size for Company
Organizational Mindset
Woolworths Supermarket
Bamboo House
Dotti

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levels in between leading to more autonomy in decision making (Griffin, 2015). Dotti and
Bamboo House have more flatter hierarchies and hence there is more freedom in decision
making. Furthermore the flat hierarchy will also lead to increased communication and better
feedback and timely results. However as the organization grows without a chain of command
which often takes a backseat in flat hierarchies there could be much confusion. Woolworths is
more inclined towards a tall hierarchy and hence has a stricter chain of command.
2.2.4. Technology
Being in the restaurant business it is critical that the organization should take charge of
quality for both its tangible and intangible products. Service as such is an intangible product.
Bamboo House gives equal importance to its tangible and intangible products. Dotti retail sells
clothes and accessories and Woolworths supermarket sells food products, and hence both are
more focused on the tangible products. However the intangible product such as service within
their stores must also be considered as this can also affect business success (by affecting
customer retention) as noted in research (Sivadas, & Baker-Prewitt, 2000).
Dotti employee rating of 8 for the instability of the external environment shows that is
how the high fashion clothing industry is at present Bamboo House being in the restaurant
business might have a steady stream of consumers and Woolworths deals with everyday
groceries and other food items, which will never go out of demand and hence the employee has
rated it somewhat in-between stable and unstable external environments. The un-stability is a
certain factor for all businesses as there will be a threat from other businesses.
2.2.6. Culture
The companies indicate that they share a similar culture, one which has well defined and
clear mission and vision.
2.2.7. Goals
In terms of goals again, the companies indicate they have well defined goals.

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2.2.8. Size
Woolworths has a nationwide business and hence is part of a large company. Similarly
Dotti is a famous clothing retailer and it also leans towards large size. On the other hand Bamboo
house is much smaller in size.
The mechanistic mindset is supported only by Woolworths and hence it can be said to be
more rigid. However Dotti and Bamboo house are more flexible.
2.3 Main Similarities
The main similarities as noted in the ratings of the nine dimensions and the summary are
discussed here.
In terms of formalization there are not many similarities. Dotti is balanced and is rated at
5 on a scale of 1-10. Bamboo House is more inclined towards having ‘fewer rules’ while
Woolworths is inclined slightly towards ‘more rules’.
In terms of specialization Dotti and Bamboo House are both similar; they tend to have
less specialized task structures.
2.3.3. Hierarchy
In terms of hierarchy, again Dotti and Bamboo House are rated similarly. They have more
flat structure of authority.
2.3.4. Technology
In terms of technology both Dotti and Woolworths are similar as they are inclined
towards the product more than the service.
In terms of the instability in external environment, Bamboo house and Woolworths both

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report similar ratings, inclined towards more stable to little less stability. Being in the food
industry while the tastes of the consumer might differ, there would be a steady demand for the
products and hence this rating.
2.3.6. Culture
In terms of culture all three organizations rate themselves as having clearly defined norms
and values.
2.3.7. Goals
In terms of goals also, all three organizations are similar in that they have well defined
goals. This will be helpful for the organization’s future.
2.3.8. Size
The size of an organization could influence on the efficiency of its internal strategy
implementations and its external strategies also (Zhu et al, 2008). Woolworths and Dotti are
more similar here in comparison with Bamboo House which is much smaller organization.
In terms of organizational mindset, both Dotti and Bamboo house are organic and hence
understand the realistic nature of individual tasks and also correspond to situations better (Ross,
2011).
2.4. Main Differences
The key differences in dimensions as noted across the organizations are discussed in this
section.
All three of the organizations are slightly different when it comes to rules. Dotti is
balance with neither too many nor too few rules and Bamboo house and Woolworths fall on
either end of the spectrum.

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In terms of specialization Woolworths is very different and it has well defined separation
of tasks and roles. The performance of an organization improves and resources become more
accountable with specialization (Austin, 2003).
2.4.3. Hierarchy
In terms of hierarchy Woolworths is again different as it has a more tall hierarchy. Taller
hierarchies have more defined coupling of management and employee (Rajan, & Wulf, 2006).
2.4.4. Technology
Woolworths and Dotti are differentiated from Bamboo House because they are more
focused on products.
In terms of external environment Dotti is very different compared to Woolworths and
Bamboo House.
2.4.6. Culture
There are no significant differences noted between the organizations with respect to
culture.
2.4.7. Goals
Similarly there are no differences that can be noted with respect to goals, they all have
well defined goals.
2.4.8. Size
Bamboo house is the odd one here in having a smaller size compared to Dotti and
Woolworths.
Woolworths having a mechanistic mindset is the different one compared to the other two.

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2.5. Dimensions (Formalization and Hierarchy) and Effectiveness
In assessing effectiveness of organizations the goal approach dictates that the
organization's output goals must be determined and then how well the organization has achieved
the goals must be checked. "The goal approach measures progress toward the attainment of those
goals" (Daft, 2013, p.73), the indicators are a primary goal; these are called the operating goals.
Indicators are tracked by profitability, market share, perceived growth, product quality and more.
In terms of the dimension of formalization, a balanced approach would be a necessity to achieve
the goals. Even when there are well defined process strategies, organizations have to be prepared
for contingencies. Dotti is much balanced here. In terms of hierarchy as a dimension, a flatter
hierarchy would again help in achieving goals better as there will be constant communication of
goals.
A resource based approach on the other hand will be useful to identify how organizations
successful place and manage resources in order to be successful. "The resource-based approach
looks at the input side of the transformation process" (Daft, 2013, p.75), some of the indicators in
this are the abilities of managers, change management etc. Consider the resource based approach
to analyze he dimensions and effectiveness. The dimension of a higher level of formalization
would enable the resources to become better acquainted with the processes, so here Bamboo
House and Woolworths could be declared to be better. On the other hand in terms of hierarchy,
the flat hierarchy would still be preferred since it helps attuning resources into the organization
better.
The internal process approach focuses on "health and efficiency"(Daft, 2013, p.76).
Indicators include economic efficiency, corporate culture, operational efficiency etc. However
the approach fails at times because "total output and the organization’s relationship with external
environment are not evaluated" (Daft, 2013, p.77). The strategic constituents approach is yet
another approach which "measures effectiveness by focusing on the satisfaction of key
stakeholders" (Daft, 2013, p.77). Each of these approaches in assessing effectiveness might again
yield different variations on the two dimensions of formalization and hierarchy and this research
recommends use of a more integrated approach when determining effectiveness.
3. Conclusion
Measuring the dimensions of organization reveals how Dotti, Bamboo House and
Woolworths each show differences and similarities in their internal environment and the

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perceptions of the external environment. Some dimensions such as formalization and
specialization where Dotti and Bambook House are actually lesser so, would suit them better;
however an organization such as Woolworths will need more formal structures because of its
size. The dimensions reveal how there cannot be one good dimension for all organizations, a
balance is recommended.
4. Recommendation
4.1. More in depth Analysis: A more in depth analysis is recommended, a bar chart based
analysis is at best indicative of where each of the organization stands, a more in-depth analysis
would reveal the actual issues in the standpoints.
4.2. Similarities: While there are similarities between the organizations at some points, it is to be
understood that each level of selection with respect to the dimensions is variable. The
organization Dotti coincides with Bamboo House on some points such as specialization, but is
deviant in other such as size. There are unique internal requirements that each of the organization
has to consider
4.3. Levels of Difference: The levels of differences also have to be considered. While
Woolworths is very dissimilar compared to Dotti in the context of organizational mindset, it has
a much smaller difference when it comes to technology. Once again these are because of unique
internal requirements and also external demands.
4.4. Hierarchies should be less formalized: Tall hierarchies have their advantages same as flat
ones, however when the processes between hierarchies are less formalized communication and
feedback related interactions would be smoother.

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References
Griffin, D. (2015). Tall Vs. Flat Organizational Structure, Chron, Retrieved Jan 25, 2015 at:
http://smallbusiness.chron.com/tall-vs-flat-organizational-structure-283.html
Sivadas, E., & Baker-Prewitt, J. L. (2000). An examination of the relationship between service
quality, customer satisfaction, and store loyalty. International Journal of Retail &
Distribution Management, 28(2), 73-82.
Zhu, Q., Sarkis, J., Lai, K. H., & Geng, Y. (2008). The role of organizational size in the adoption
of green supply chain management practices in China. Corporate Social Responsibility
and Environmental Management, 15(6), 322-337.
Ross, G. (2011). Mechanistic and Organic Organizations, the Social intranet, Retrieved Jan 25,
2015 at: https://www.thoughtfarmer.com/blog/mechanistic-and-organic-organizations/
Austin, J. R. (2003). Transactive memory in organizational groups: the effects of content,
consensus, specialization, and accuracy on group performance. Journal of Applied
Psychology, 88(5), 866.
Rajan, R. G., & Wulf, J. (2006). The flattening firm: Evidence from panel data on the changing
nature of corporate hierarchies. The Review of Economics and Statistics, 88(4), 759-773.
Daft, R. L. (2013). Organization Theory& Design, 11th ed, Vanderbilt University
Bamboo House. (2012). Home, Retrieved Jan 25, 2015 at: http://www.bamboohouse.com.au/
Spencer Outlet. (2015). Dotti, Retrieved Jan 25, 2015 at:
http://www.spenceroutletcentre.com.au/store/womens-fashion/dotti
Woolworths. (2013). The Fresh Food People, Retrieved Jan 25, 2015 at:
http://www.woolworths.com.au/wps/wcm/connect/webSite/Woolworths/

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