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
The structure of an organization is the sum of total ways in which it divides its labour into distinct tasks and then achieves coordination among them. (Mintzberg, 1979). An organization can be structured in many ways depending on their objectives. An organizational structure consists of activities such as task allocation, coordination and supervision which are directed towards the achievement of organizational aims. (www.wikipedia.org)
There are two main types of motivation when people work for an organization: intrinsic and extrinsic. From those two, various types of motivation can be derived ranging from achievement and competence motivation to fear motivation. Costco utilizes various motivational techniques and we can analyze them from the traditional, human relations, and human resource approach to determine how Costco is different from most retail store of similar size. From the Human Relations approach, Costco has a low turn-over rate even with the use of part-time workers, the insurance enrollment period is lower than that of other retail stores, and the portion of health care premium paid by the company is over 92% From the traditional view, Costco has a higher wage on average, well above that of minimum wage by at least 40%. From the human resources perspective, Costco chooses most of its management position from its internal workforce.
“Structure is the pattern of relationships among positions in the organisations and among members of the organisation. Structure makes possible the application of the process of management and creates a framework of order and command through which the activities of the organisation can be planned, organised, directed and controlled.” (Mullins)
Today organizations are seeking the best employees to compete in the cutthroat market environment. In order to achieve their goals, they must have something to offer to their employees to keep them motivated. Employee motivation can come from management strategies, employee incentives, health, school, adoption assistance, and the more the company can offer the better and more valuable the employee can be. With that being said Best Buy might just have what most employees are looking for. Best Buy is considered to be one of the world’s largest consumer electronics retailers, with that being said more that 125,000 people are employed by Best Buy. This is a company willing to go the extra mile to make their employees satisfied which betters the
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.
Organizational design helps determine which structure best suits the organizations needs by showing the company where its flaws are and allowing the company to adapt and fix its’ deficits. For a big company like Best Buy it seems the best choice for an organizational structure would be a hybrid or matrix structure. The company is so huge and has so many departments, it may take a couple of different strategies and ideas to keep the company running efficiently and profitable. Also, an organizational structure that works in one area may not always be the best for another are. Companies must find organizational structures that are efficient financially but also productively.
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,
What is a challenge to reporting to more than one manager in a matrix organization? What might be a benefit?
Hierarchal structure: This is to PRIMARK company organize all the position on hierarchal structure. Upper level management team take care the low level management but low level management cannot make decision their self they have to get the permission from upper level.
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
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
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.
... 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.
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.