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Standing on a solid foundation would create a better business. Organizational design consist of many different structures depending on what type of business an individual wants to operate. If a business owner wants more of a traditional approach they might use functional organizational structure. However, if a business owner decides on a more contemporary approach they might lean more toward the matrix structure.
Functional Organizational Structure In a functional structure the organization is set up according to its purpose. Functional organizational structure has specialized units such as; department operations, department marketing, research department and department sales. These departments report to a single authority which is known as
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The employees report to their manager. The impact this has on a business it that encourages a democratic leadership style, where the employees communicate with their manager and the manager executes and follows up with their request. This gives the employees a sense of security and brings their expertise to the managers which increases morale within the workplace. The advantage of matrix structure is that it offers a high level of specialization where an employee can develop specialized knowledge as they move up within the hierarchy. In a matrix structure supervisors in different departments are assigned to work on one or more project. This may be a disadvantage because it can create power struggles. The advantage of this structure is that managers can effectively exchange information amongst themselves to create a success …show more content…
Tracy Mullin’s article, Hiring the Very Best, discusses several retailers and their methods of motivation. Some motivated their employees by offering incentives that would keep them coming to work and improve performance. Mullin listed benefits such as; enabling employees to work where and when they want to work, companies offering a better pay rate and healthcare benefits than their competitors, allowing the employees to have creative authority, spending more time with bottom performers and rewarding managers who keep turnover low. Each company discussed in Mullin’s article decreased their rate of employee turnover. The motivational and benefits methods impacted the organizations by turnover and decreasing productivity. This would be a benefit to Best Buy allowing their employees to work in areas of the store where they feel comfortable with their knowledge and expertise would increase productivity and having their off days altered would make the employees morale high because they may be able to adjust their schedule to fit their family life. Costco pays their employees a significant wage which makes the employees feel like the company. The health benefits offered by Costco increase employee pay and create a secure feeling that they can provide medical care for themselves and their families. Trader Joe motivates their employees by not micro-managing and allowing creative authority. Employees take
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
There will be a cluster of different skills working together. This also saves time in inter-departmental communication. A matrix also lets people lower down the organisational chart use their skills. Weaknesses of a Matrix structure It can be expensive if extra help is needed. Staff may be divided in loyalties because they wouldn’t which job is most important.
Its functional structure is organized with many executive vice presidents reporting to the CEO and additional functions representing a major component of the Target value chain such as a store, design, manufacturing, sales and marketing, logistics, and customer service. Each functional unit is supervised by a functional chain of command that focuses on their area of responsibility. This way CEO provides direction and ensures that the activities of the functional managers are coordinated and integrated across Target
Employee motivation is one of the keys to success in any business, especially in a retail sales environment. It is particularly important to understand how employee motivation can be impacted by the strengths and weaknesses of AT&T’s retail sales consultant position (RSC). A series of interviews and surveys were conducted over a two-week period with employees of AT&T in the RSC position as well as retail management positions to determine how the employees really feel about this position as well as internal strengths and weaknesses that contribute to employee motivation. Although there are a lot of positive factors that keep the employees motivated within AT&T, there are some weaknesses that can cause employees to become demotivated.
Another advantage to migrating towards a matrix structure is that it will empower teams to make decisions and work towards breaking the silos that may exist within the organization (Lesson 8, 2016). The disadvantage of this structure is that conflict could arise within each department and crossover to other departments if roles are not clearly defined. Conflict within, and among, these groups may create undue stress that could lead to bigger issues of trust, poor performance, and poor communication (Robbins and Judge,
The Nordstrom department store empire has been one of the leading companies in the fashion market. They generated over 2.5 billion dollars in sales last year, yet they are facing several internal problems. While Nordstrom strives to have the best customer service in the industry, living by the “Nordstrom way” has caused some hardships on the companies’ employees. An in-depth analysis of the sales position at Nordstrom using the job characteristic model reveals that the job design may moderately increase employees intrinsic motivation, but it is lacking in several areas.
Organizational culture is a reflective view of the inner workings of an organization. This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, duties, and communication processes. Organizational structure establishes the manner in which power and roles are coordinated and controlled amongst the varying levels of management. The structure of an organization is dependent upon their goals, objectives, and strategy. Determining organizational structure best suited for an organization is generally found within the six key elements of organizational structure and choosing those to implement those best suited for the organization. The six key elements include:
Looking at IKEA’s organisational structure, the chain of command shows a clear line for messages within functional departments, so therefore; it leads to good communication. For example, looking at the organisational structure of IKEA, there is a clear communication within a human resources department. However, the chain of command is very long from the top to the bottom of the organisation because, there are too many levels of management. This will lead to poor communication. For example, it takes decisions a long time to reach the workers at the bottom of the organisation structure.
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.
The Different Ways Organizations Can Be Structured and Operated There are four major ways a company - organization can be structured and operate. P.C.G (o) Ltd I would dare say that is structured and operates with the functional structure. In order to make it clear and understandable I am analyzing here below the four ways that organizations can structure and operate. We will observe that all four structures have there advantages and disadvantages. In order also to assist you understand better the differences of the four ways that organizations can be structured see in Page 4 & 5 Figures 1,2,3 which are the layout of the organization charts for each structure: 1.
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
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
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.
Most organizations fall under one of three organizational designs: simple structure, bureaucracy and matrix structure. The organizational design of a company suggests who makes executive decisions and how they are enforced. The organizational design is typically decided based on the size of the company and market place.
... and incentives to implement strategy. The importance of structure persists even in the face of the growth of the internet, globalization, and changing demographics of the workforce.