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Contemporary Organisational Structure/Designs and EffectivenesS
Table of Contents
1. Introduction
2. About the Company
3. Organizational chart of Starbucks
4. Importance of Matrix organization Structure
5. How the company is using the organization structure to its advantage
6. Disadvantages the structure might cause to compete
7. Recommendations
Introduction
The success of various organizations around the world is many time influenced by the organization design they follow and leaders in these organizations often gives thought on if they should plan to restructure their organizations for better and sustainable structure. In general, two type of organization categories exist for organization design i.e. traditional and contemporary. Traditional design comprises of simple, functional and divisional structure while the contemporary design include team structure, matrix structure, boundaryless structure and learning organization. The advantages that are related to contemporary organization design are as follows. There is more involvement of employees and feeling of empowerment exist in them. This leads to motivating employees at work. Also, the barrier to work in different functional areas is comparatively less which helps in flexibility and resilience in responding to environmental changes. Other factors that help the organization grow better is the culture of fast decision making, highly flexible and responsive for their staff and customers and seeks of talent where ever it is found. The freedom to employees to make decisions give them assistance to cope with the environmental changes easily. (Daft, Murphy and Willmott, 2010)
The report analyzes the organizational structure of Starbucks which is following an contemporary organization design and understand how they have been able to use this as a strategical advantage. It also gives an opportunity to understand the why Starbucks has taken this particular model at local and global level. The merits and demerits are discussed further that has been playing role in the success or failure of the company. Later on, the basis of factors that are analyzed recommendation is made which can help in overcoming the problems related to the organization design and help their business.
About the Company
Starbucks is a world known brand for their coffee offer with high quality and reasonable price. The company have gone through various strategical changes and have been successful in making its impact across major worldwide locations. Currently, the brand has its stores in more than 15000 locations worldwide. The approach of this expansion has been polycentric in nature. The company organizational structure has been a key factor in the leadership in the coffee industry. This has been a key factor because of its influence on management and leadership, the communication with customers and employees, internal and external organization changes, and parameters that are critical to business success. The major reason that can be attributed to the business success is its evolving nature of organization structure which has been able to cater business needs. The structure has been unique which is based on conventional typology of organizational structures. The company structure has grown with the business which has helped in achieving success. This is due to their adapting power of optimizing the process and the quality they deliver in the goods and services.
Organizational chart of Starbucks
The CEO, President, Vice President and Director comprises of the executive team. The senior managers and manager are considered as people manager and the people in lower hierarchy are individual contributors.
At regional level, the flow of orders is in the following manner.
Regional Director District Manager Store Manager Assistant Store Manager Shift Supervior Barista
Importance of Matrix organization Structure
The company has been following a matrix organizational structure, which can be said to be a hybrid mixture of various features from basic structures. The main features of the organizational structure of Starbucks are: functional Structure, Geographic structure, product based divisions and teams.
a. Functional Structure: This feature of organizational structure is grouping...