Hennes & Mauritz AB (H&M) is a well-known fashion retailing firm that sells fast-fashion clothing for women and youngsters. It is based in Stockholm, Sweden. As of 2013, H&M operates around 2,600 stores in over 55 countries and employed around 116,000 work forces.
Business structure is a critical factor to determine a company 's success or failure. Generally, larger organization has a more complex organizational structure. In the case of H&M, they had adopted matrix structure, one of the traditional organizational structure, into their business. As shown in figure 1, range of functional groups is listed horizontally across the table and on the other is product/task with a manager taking control of each. The functional structure is divided
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There will be a manger who is in charge of the stores’ profitability and the overall cooperation of all functions within the region like making sure every stores sells the same collection of clothing. By using matrix, managements not only organize their work more flexible with lower costs, but also improving communication and coordination across the countries. However, the matrix structure violates the unity of command principle as each employee reports to at least two or more managers. Next, high degree of centralization is exercised in H&M. Centralization is the concentration of authority for making most decisions at the top levels of the organization. In this instance, the head office in Sweden are in charge of establishing the code of ethics, internal policies, and manuals. Important decisions that are strongly related to the company’s profits are also made by the top management. Nonetheless, H&M has a decentralized system. For example, there are 32 production teams that handle …show more content…
To achieve equilibrium, H&M encourages open communication and employee engagement within the company to satisfy both goal and needs. They came up with an “open book principle” granting every employee the right to express their thoughts on work related issues directly with management. They, too, reinforce the Human Resource Management system by having performance appraisal, a method to evaluate job performance. H&M has done it by using the method of providing feedback as they believe in learning through their own mistakes. Besides, to ensure workers’ work-life balance, the company strongly discourage overtime work and endorse flexible working hours. Everyone in the company is given the opportunity to schedule around their personal and working responsibility. The company also provide comprehensive fringe benefits for their worker which includes staff discounts, incentive bonuses, maternity leave and many more. This is because the Human Resources in H&M emphasise more on job satisfaction rather than title or pay structure. Analysis indicates that H&M has incorporated job enlargement into their business whereby they increase task variety by combining two or more task for more experience working. However, the volume of task to be done is too gruelling for employees causing their company to be listed as one of the highest employee turnover and lowest labour morale in 2008. This shows they have poor job
Facts of the Case: In 2008, Samantha Elauf applied for a job at Abercrombie & Fitch, Inc., who as part of their “Look Policy” prohibit the use of caps. Elauf, as part of her religious practice, wore a headscarf to the interview. She was interviewed by assistant manager Heather Cooke, who gave her a score that qualified her to be hired. Cooke, however, was worried that Elauf’s headscarf was against the store’s policy and called her district manager Randall Johnson. She informed Johnson of her belief that Elauf wore her headscarf because of her religion, and Johnson replied that headwear whether it was religious or not violated the “Look Policy” of the store. Elauf with the help of the EEOC sued Abercrombie on the grounds of religious discrimination. The U.S Equal Employment Opportunity Commission (EEOC) is an agency established by the government of the United States that imposes federal laws that make it
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
Abercrombie & Fitch Co., also known as A&F, was founded in 1892 by David Abercrombie and Ezra Fitch. Its headquarter is located in New Albany, Ohio. May be nobody knew that this apparel retailer was from its beginning a kind of elite outfitter of expensive sporting and excursion goods. The company, with more than two hundred subsidiaries around the world, sells casual apparel for men, women, and kids.
Every small or large business requires a structure to grow successfully and in return be profitable. This structure is what defines the way a company and its employees work together to support their common vision. There are different types of organizational structures depending on the type of business (Burke & Litwin, 2002). The main ones that are related to this study are hierarchy, cross-functional and matrix. Costco Wholesale Corporation is the main focus of this research paper. It was founded in Seattle, WA in 1983 but has the headquarters in Issaquah, WA. It was founded by James Sinegal and Jeffery Brotman. Costco operates 698 warehouses in ten countries, Puerto Rico been the recent one. The company also operates an online website as well as receiving revenue from the membership fees. It earns about 3% of its revenue from the e-commerce website, about 2% through membership fees and generates approximately 95% from their in-store sales. It employees about 200,000 full time and part-time staff worldwide. The recent figure of annual revenues $116.2 billion
Organizations are initially structured around tasks, and as the organization continues to grow, the structure within the organization takes on many characteristics. Not all structures are advantageous, especially if they are lacking in some areas. There is a relationship between structure and size of the organization that affect the centralization of the organization. At the highest levels, the personality of the chief executive may amend the organizations' structure. The structure within an organization helps define the roles and responsibilities among the members from each department and work group. The four general types of organization structure are functional, divisional, matrix, and project based. “Organizational structure is the skeleton of an organization” (Feigenbaum, 2013) and how these individuals relate to each another. Structure is a statement of the current affairs, not the ideas, intentions or improvement within an organization. When business leaders develop their initial plans for an organization, he or she looks at how to design a company and takes inventory of all the tasks, functions and goals of the business. The leader then develops groupings and ordering of job positions, departments, and human resources to effectively and efficiently perform these tasks. Technology, size, environment, strategy and goals affect an organizational structure and effects, whether they are categorized as mechanistic or organic.
Macy’s believes that going into this business will strengthen their associates’ selling skills, recruiting new talents, increased direct supervision, and offering higher quality products. It was such a success that Macy’s rolled out this concept to 300 other locations in fall of 2016, and planned on incorporating it to the rest of their stores by the end of 2017. In an attempt to reach out to new markets, Macy’s entered in a joint venture with a Hong Kong retailing company. Macy’s own 65%, while Fung Retailing Limited will own 35% in this online venture in China. This purpose of this venture is for Macy’s to penetrate a foreign market with the help of a host’s country company to avoid running into any problems while conducting business. It
An organization is structured in a certain way based on some factors. Size is a factor because the bigger the organization, the more complex its structure. If the company is small, the design is generally simple. A small company does not have to undergo a formal structure. Larger organizations depend more on authority delegation and formal work responsibility, because a bigger company is harder to manage. Another factor is the lifecycle of the organization. An organization undergoes the...
Organisational Structure, Culture, and Management Style of a Business C2 An Analysis of How the Organisational Structure, Culture And Management Style of the Business Affects its Performance and Operation and Help It to Meet Its Objectives The organisation structure of Wednesbury IKEA The organisation structure in the ‘Appendix section’ belongs to the Wednesbury branch of IKEA. Wednesbury IKEA is a large formal organisation and it is best suited to a hierarchical organisational structure. This is because; there are more employees as it goes downwards from each level.
H&M should focus on its supply chain management, whether direct or indirect suppliers. As to Rana Plaza, H&M should do as follow to have more sustainable suppliers.
H&M Hennes & Mauritz is a Swedish multinational company established in 1947, known for it’s clothing for men, women, teenagers and children. It is expanded to 53 countries and as of 2013 employed around 116,000 people. It is ranked as the second largest global clothing retailer. It generated $18.13 Billion revenue in the year 2013.
An organization structure can be defined as the analytical arrangement of tasks, duties and roles and responsibilities with the aim to achieve the predetermined objectives of an organization. It also helps to coordinate among the individuals in the organization by deciding who will work under whom. This is interpersonal relation between individuals and the jobs assigned to them. Organisation structure can be classified into two categories:
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
Organizations are established in specific ways to obtain different objectives, and the structure of an organization can help or restrain its advance toward accomplishing these goals. Organizations of different sized and types can achieve higher sales and other profit adequately by identifying their requirements with the structure they use to operate.
Organizations must operate within structures that allow them to perform at their best within their given environments. According to theorists T. Burns and G.M Stalker (1961), organizations require structures that will allow them to adapt and react to changes in the environment (Mechanistic vs Organic Structures, 2009). Toyota Company’s corporate structure is spelt out as one where the management team and employees conduct operations and make decisions through a system of checks and balances.