Organizational Structure Paper Essay Example | Topics and Well Written Essays - 1250 words

Organizational Structure Paper - Essay Example In coming up with the right structure, organizations search for the one that is most effective in categorization of departments and relational coordination, which is essential to achieve optimal production levels. Wal-Mart has a three divisional structure for products. Their business categories are composed of Sam’s Club, Wal-Mart Stores, and International Stores. Approximately 20% of Wal-Mart’s business income is from their international segment, which is responsible for stores and restaurants in thirteen countries, including Sam’s Club and Wal-Mart Stores. By using a divisional structure, they are at an advantage since every division has the ability to focus on its specific objectives and goals, for example customers, service, and products (MacKenzie, 2008). By narrowing their focus, Wal-Mart is enabled to perform with more efficiency as they can locate particular areas that they should adjust or change as needed. Wal-Mart’s Organizational Structure Wal- Mart, as a major retail corporation, consists of stores that are spread all over the US, as well as the world, making them one of the largest retailers in the world. Because of the complexity that this comes with, it is essential that they have a well thought out and strong organizational structure. ... By having it this way, Wal-Mart was able to create a structure that suited their complex business operations and needs. Because of the many stores that Wal-Mart has all over the world, which are heavily dependent on the organization in order to run efficiently and effectively, this organizational structure allows them to improve their decision-making mechanisms by having managers who can deal with local issues and get the input of the overall executive managers (Brunn, 2012). Wal-Mart is also able to satisfy their customers through this structure since the different managers are able to come up with strategies that suit their local market, rather than overall strategies that may not be compatible. The matrix structure is just one of many diverse structures used by organizations. As mentioned, the organizational structure chosen by a specific company is dependent on the complexities of their business, as well as the requirements of managing their competencies. Apart from the matrix st ructure, there is the divisional organizational structure. This structure has its basis on the customer, products, and geographic location, which is unlike the matrix organizational structure that is based on reporting and who employees report (MacKenzie, 2008). These could be shift managers, general managers, and CEOs. In the divisional structure, the functional areas that compose an organization are divided into various divisions. Each of the divisions has resources that allow it to function independently. One example of a company using a divisional structure is GE, which has divisions like turbine division and microwave division, each with independent finance and marketing teams. Another type of structure is the functional structure, in which the organization groups various