Organizational design and hierarchy

Click to edit Master subtitle style

4/7/12

Retail Organization
The organizational structure in retail will vary by the size and type of the business. Most tasks involved with operating a retail business will be the same. However, small or independent retail business may combine many sectors together under one division, while larger stores create various divisions for each particular function along with many layers of management.
4/7/12

For example, the small specialty shop may have all of its employees under one category called Store Operations. A large department store may have a complete staff consisting of a manager, assistant manager and sales associates for its Sporting Goods department, Home and Garden, Bed and Bath, and each additional department. the store grows and the retail business evolves, the dynamics of the organization's structure will change too. Therefore it is paramount to redesign the store's organizational 4/7/12 to support the chart

As

Retailing Structure The following is a brief outline of some of the divisions in a retail organization.
Owner/CEO or President
Store

Operations: Management, Cashier, Sales, Receiving, Loss Prevention Visual Displays, Public Relations, Promotions Planning, Buying,
4/7/12

Marketing:

Merchandising:

Inventory Control

Departmentalization

Functional Product Customer Geographic Matrix

4/7/12

Functional Departmentalization

4/7/12

Functional Departmentalization
Advantages creates highly skilled specialists Disadvantages cross-department coordination can be difficult may lead to slower decision making produces managers with narrow experiences

lowers costs through reduced duplication communication and coordination problems are lessened

4/7/12

Product Departmentalization
Easy Food Market/FMCG

Cheese

Milk

Ice cream

4/7/12

Product Departmentalization
Advantages managers specialize but have broader experience easier to assess work-unit performance decision making is faster Disadvantages duplication often increases costs

difficult to coordinate across departments

4/7/12

Customer Departmentalization
American Express

Cards

Travel

Financial Services

Business Services

4/7/12

Customer Departmentalization
Advantages focuses on customer needs products and services tailored to specific customers Disadvantages duplication of resources difficult to achieve coordination across departments decisions that please the company but may hurt the company

4/7/12

Geographic Departmentalization
Coca-Cola Enterprises

Central North America

Eastern North America

Western North America

Europe

4/7/12

Geographic Departmentalization
Advantages responsive to demand of different markets Disadvantages duplication of resources

reduce costs by locating resources close to customers

difficult to coordinate across departments

4/7/12

Matrix Departmentalization
A hybrid structure in which two or more forms of departmentalization are used together

most common forms combine product and functional report to two bosses interaction between
4/7/12

employees increased

cross-functional interaction

significant

Matrix Departmentalization
Advantages efficiently manage large, complex tasks effectively manage large, complex tasks Disadvantages requires high levels of coordination increased conflict levels

requires high level of management skills

4/7/12

organization hierarchy
The

vertical layers of ranks of personnel within an organization, each layer subordinate to the one above it. Organization hierarchy is often shown in the form of an organization chart. extended hierarchy is typical of a bureaucracy, but during the later 20th and early 21st centuries the layers of hierarchical positions within large organizations have often been reduced as part of downsizing exercises. These result in the shallow or nonexistent 4/7/12

An

4/7/12

 C:\Users\brishti\Desktop\strategy\ORG

CHAR

4/7/12

4/7/12

 C:\Users\brishti\Desktop\strategy\Organisat

xls

4/7/12

Monarch Innovative Technologies

4/7/12

21

CMD

President

Executive VicePresident Product Developm ent

Software Dev. & Q.A.

Business Development

Finance & Accounts

Corporate Services
Administrati on People Process

Operations & SCM

Import & Purchase

Legal System Admin Secretaria l

Monarch Innovative Technologies

4/7/12

22

Shoppers stop

4/7/12

Pantaloon

4/7/12