Phase 2 Individual Project - Organizational Structure
December 3, 2012
Phase 2 Individual Project-
Organizational Structure
Organizational Structure is necessary to run any company effectively and efficiently. There are six key elements that a company should be following for success and those elements are as follows: I. Specialization of Work * The use of special skills so that one job is not done by an individual but by a group of individuals to complete the tasks. II. Chain of Command * Refers to a continuous line of authority from upper levels to lower levels with clarification on who reports to whom. There are three concepts that are a part of this element and they are as follows: * Authority * Responsibility * Unity of Command III. Span of Control * Very Important Key element as it determines the number of people one manager can manage as well as the number of levels and managers an organization has. IV. Centralization and Decentralization * Centralization is more specific to upper levels making the decisions. Decentralization is geared toward the lower levels making decisions. V. Departmentalization * The basis of job grouping in which every organization has a specific way of classifying and grouping work related activities. There are 5 common forms as follows: * Functional * Geographical * Product * Process * Customer VI. Formalization * How organizations jobs are standardized and employees are guided by rules and procedures.
The organizational structure that I chose to apply to my company, Best Buy is the Distribution of Authority also referred to as Centralization or Decentralization. Most organizations are neither one of these key elements as they use both aspects of it to balance it out. Best Buy is no exception; they are a more centralized structure however, their information cascades from the Board of Directors to Store level employees. Best Buy has a Board of Directors that is elected by the shareholders to
Phase 2 Individual Project-
Organizational Structure
Organizational Structure is necessary to run any company effectively and efficiently. There are six key elements that a company should be following for success and those elements are as follows: I. Specialization of Work * The use of special skills so that one job is not done by an individual but by a group of individuals to complete the tasks. II. Chain of Command * Refers to a continuous line of authority from upper levels to lower levels with clarification on who reports to whom. There are three concepts that are a part of this element and they are as follows: * Authority * Responsibility * Unity of Command III. Span of Control * Very Important Key element as it determines the number of people one manager can manage as well as the number of levels and managers an organization has. IV. Centralization and Decentralization * Centralization is more specific to upper levels making the decisions. Decentralization is geared toward the lower levels making decisions. V. Departmentalization * The basis of job grouping in which every organization has a specific way of classifying and grouping work related activities. There are 5 common forms as follows: * Functional * Geographical * Product * Process * Customer VI. Formalization * How organizations jobs are standardized and employees are guided by rules and procedures.
The organizational structure that I chose to apply to my company, Best Buy is the Distribution of Authority also referred to as Centralization or Decentralization. Most organizations are neither one of these key elements as they use both aspects of it to balance it out. Best Buy is no exception; they are a more centralized structure however, their information cascades from the Board of Directors to Store level employees. Best Buy has a Board of Directors that is elected by the shareholders to
References: http://phx.corporate-ir.net/phoenix.zhtml?c=83192&p=irol-irhome http://www.bestbuy.com http://www.emaytrix.com/mgmt307/section2.php