Organizational Structure Essay

1238 words - 5 pages

Organizational Structure Paper

MGT/230

May 19, 2014
University of Phoenix

Organizational Structure
Many corporations around the world makes use and recognizes the effectiveness of using an organizational structure within their organizations. Organizational structure gives a reflection of how an organization positions their jobs and their employees that gives an end result of accomplishing the company’s direction and goals. In larger companies they benefit more due to the multiple task that they present as for smaller companies may not have many task or find it unnecessary for company. Due to this, plans of action need to be set into place so that they can establish and tackle ...view middle of the document...

Wal-Mart is in charge of around 780,000 employees in about 26 different countries besides the United States. (Wal-Mart Stores, Inc., 2014). Organizational structure that Wal-Mart uses is one call a divisional structure. Within the divisional structure it is divided into three subunits; product, geographic, and market structure. The three subunits or sub categories allow Wal-Mart to benefit from the divisional structure by allowing the company to focus on the products they provide, services and the customers.
It is very important to understand each individual structure as a whole when contrasting and comparing to the divisional structure. For those employees that perform a task or duty for the company and is strategically places in a specific department due to that duty or task then that is a functional structure. This structure better fits in to areas such as; accounting, human resources and even quality control. A huge benefit from this particular structure is that it allows the ability to strengthen the skills, encourage the skills and knowledge form all parties. This structure gives the departments a sense of independence. As for a divisional structure it places employees in areas based off of what the organization is producing. This allows for the company to focus on different areas or locations and gives them a chance to adjust to the ever changing market. This also creates a sense of redundancy. The matrix structure is a bit different. It acts as both functional and divisional structures. Matrix structure creates a company or organization for the sole business of certain services or products. There is a disadvantage of using a structure and that is that the company would need to hire both a functional manager and production manager. (Hearst Communications Inc., 2012).
Organizational Functions
The activities that are done in each department in the company can be called organizational functions. Some of the activities in the organizational functions consist of; human resources, operation, finance and marketing. In order to be able to work together to complete the organizations goals they must be managed and controlled by department managers. Within Wal-Mart those activities are common for influencing and determining; resources, ideas, and maintaining open communication with each other. In marketing, they continuously strive to understand and comprehend the customers’ needs and expectations. In the marketing department they strive to accommodate their customers. Wal-Mart’s finance department plays a huge role in preparing annual financial reports and provide detailed backgrounds on the stakeholders financial contributions were spent or used. Human resource also plays a significant role to Wal-Mart’s organizational structure. It allows for the company to place people in the proper areas. Recruitment and selection process is one of the jobs of the human resources department and...

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