Organizational Structure Paper
November 7, 2012
All Businesses must have an organizational structure in order to function efficiently and correctly. Whether the business is big or small, organization is one of the major keys to success. Organizational structures may come in all shapes and sizes. Best Buy Co. is a great example of a large business that has a solid organizational structure and it shows how being organized can take your small mom and pop type business and grow it into the retail giant it is today.
When you first examine the organizational structure of Best Buy Co. it can be a bit confusing. Though the company is ...view middle of the document...
The lines of authority are clearly known and each employee knows their role and is allowed to focus on his/her specific tasks. The different functions of production are divided into their specific departments and they do what needs to be done. The downside to a functional structure would be, if individual departments are too focused on one task, and only that task, they might not have to communicate with other departments, which can lead to headaches in the future if a task is assigned that needs participation from more than one department at a time. A divisional structure takes the different functions and spreads them among the different departments. For example if the business has several different departments making different products, each department would have its own marketing department, as well as sales department and accounting department. The benefits to a divisional structure are that with each product having its own team, the team can better focus on the product. Marketing can be broken down and made better and more efficient for each product, resulting in higher revenues. Also each department could be customized to more efficiently run; A small department may have a smaller team where a larger department could have a team that is two to three times bigger and built better to handle the different situations a bigger department might face. The downside to a divisional structure is many times if a company has four departments, it does not need four marketing teams. The company could hire one really good marketing team and that team could do the marketing for all four departments. A third functional structure would be the Matrix structure. A matrix structure can work in many ways like a functional structure where each employee has a set role but the difference is in a matrix, employees can be assigned to do projects with different managers and employees who may have different functions. The good thing about a matrix structure is that it allows the structure to adapt and make changes as the business feels they are necessary. The downside is once employees start getting shifted from department to department, the companies chain of command can become hazy or unclear. It may be...