Organization and Organizational Design (MANAGEMENT 8)

What organizational structure does zara use

Decentralization 

Why is decentralization good for a company like zara

Empowers store managers to make informed real time descisions using shared, anonymized data

What does decentralization do

It increases managers autonomy, decreases information silos, and it encourages collaboration

What is inditex

Zara’s parent company

Why did inditex implement decentralization

To boost brick and mortar appeal and compete with online retailers

Organizational culture can be ….. and …..

Formal organizational culture

codes, mission statement

Informal organizational culture

Work habits, stories

Negative organizational culture examples

Pimco and everlane

What does specialization do 

It divides labor, incresing efficiency, however, it can also increase boredom and turnover. 

Groups in a company can be divided into

Function, product, geography, or customer type

Example of company divided by product

Unilever

Example of a company seperated by product and geography

Pepsi co

Example of a company divided by customers

British airways 

Example of a company divided geographically

coca cola

The new trend of organizational culture

Leaning towards decentralization aided by technology

Wide Span of organization

Flat organization

Narrow Span Of organization 

Tall, hierarchial 

Pros of flat organizational Culture

Reduces bureaucracy, speeds up decisions

Flat organization is preffered in …

Dynamic firms like tesla

Line Structure

Simple, direct authority from top to bottom, common in small firms

Line and Staff Structure 

Adds specialist staff managers to support line managers 

Multidivisional structure

Groups departments into divisions

Matrix Structure

Cross functional teams report to both project and functional managers

Group

2+ people with a shared identity and goal

Team

Small group of people with complementary skills and mutual accountability 

Types of teams

Task force (Temporary), committee (permanent), project teams, product development teams, quality assurance teams, self directed teams

What types of teams have grown with technology

Virtual and cross functional