In: Operations Management
Case Quetion: You are the CEO of a 500- employee organization, which manufactures coats and jackets (winter fleece, dress wool and light rain wear for U.S.market. what organizational structure( functional,product,geographic, customer or hybrid)will you select, and why
1-Explain 4 reason
2-how will you utilize or integrate the matrix structure into you organization design?Explain.(1-point)
1) Organizational structure play important role in the success of any business. It provides many benefits to the management and their employees. As a CEO of a 500-employee organization, then will select Functional structure to my manufacturing organization. The basic reasons are,
1) It will be easy to understand which has some major functions like HR, Finance, Manufacturing, Sales & Marketing, and Research & Design etc.
2) It will provide better coordination among people as they will know to whom they will be report for specific activities.
3) A more specialized sales and marketing will be done in US domestic market as it will be a different sales and market division.
4) An operational speed will be achieved due to division of work and accountability.
2) I will utilize first a division based on various products then formulate a structure where people will utilize both functional as well as divisional structure to get their problem resolution. Even, a particular employee might have to report more than one senior from various departments. For example: A sales manager might have to report to marketing head as well as to HR manager for various assigned tasks on routine basis. Here, I will make specific division like winter products, Rainy days products etc.