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Organizational Structure Paper

1185 words - 5 pages



Organizational Structure Paper
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XMGT/230
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Organizational Structure Paper
According to The Suttle (n.d.) website, Companies use three common types of organizational structure most often. But the type of organizational structure they choose is often based on their goals, reporting priorities and key strategies of upper management. These three types of structure are; Functional Structure, Divisional Structure, and Product Structure. Most structures would fall into the category of a Vertical or Horizontal structure and every company or organization, big or small, will use one form or another of these structures.
The company that I work for (Genuine Parts ...view middle of the document...

While most people are not familiar with Genuine Parts Company, if you were to mention the NAPA auto parts store, they would probably know who your were talking about. However, Genuine Parts Company® is the parent company of the National Automotive Parts Association (NAPA); its auto parts stores are popular among auto mechanics, smaller independent shops, and do-it-yourself (DIY customers) vehicle owners. The company distributes over 422,000 auto replacement parts through its 64 strategically located NAPA distribution centers and approximately 6,100 NAPA auto parts stores nationwide, including about 1,100 company-owned stores. The automotive parts division accounts for about half of the revenues and profits, with the remaining three divisions, namely industrial parts, office products and electrical/ electronic materials accounting for 34%, 13%, and 4% of sales respectively.
Genuine Parts Company® uses a ‘Divisional Structure’ since we are such a large organization and have several smaller companies under the same umbrella corporation. Even though it is a divisional structure, every part of our company functions ‘horizontally’. In this type of organization, for example, each of these companies have a marketing department, a sales department, a production department, and a humane resources department. The benefit of this structure is that the customers’ needs can be taken care of more rapidly and each company has a direct focus on their type of products and the consumers who need them. However, the communication is inhibited or non-existent because the employees in the different companies do not work together or even acknowledge that we are actually all working for the same company at all. Divisional structure is costly because of its size and scope. Small businesses can use a divisional structure on a smaller scale, having different offices in different parts of the city, for example, or assigning different sales teams to handle different geographic areas. As compared to a ‘Functional Structure’ which is more suited to a smaller business model or platform. A functional structure is set up so that each portion of the business is grouped according to its task and purpose (Writings, n.d.).
While our organizational structure is solid, we must always remember that a prosperous business will need to continuously evaluate the kind of organizational structure that it has in place and have the ability to be adaptable and to make modifications in order to keep or increase revenue as well as their customer base. Genuine Parts Company® is a company with multiple redundancies in the management infrastructure and they pride themselves on procedure as well as following business rules. ...

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