Organizational Structure

Read Complete Research Material


Organizational Structure

Organizational Structure


Organizational structures refer to formal and informal approaches through which employees, jobs, and various organizational resources construct and synchronize. Although, organizational structures sound like a singul feature, it consist of various dimensions, as there are several methods the employees within an organization and the job tasks that are carried out can be structured. In addition, the most common features of the organizational structure incorporate formalization, centralization, and complexity.


Organizational Structure

Wal-Mart Stores, Inc. has a divisional structure such as Wal-Mart Realty, Wal-Mart International, Wal-Mart Specialty Stores, Sam's. This structure develops through separate, semi-autonomous units or divisions. Furthermore, an organization may have various divisions and every division develops its own objectives. It is the responsibility of the manager to look after his division and for the performance of that division. Therefore, managers try to focus on productivity as they know that they are responsible.

Dimitri has an organizational structure which is Mechanistic. This structure can be explained as tall, narrow, with narrow span of control, highly centralized, and highly formalized. Furthermore, mechanistic structure is appropriate for an organization which has an extremely stable environment with routine technology (Mintzberg, 2002).

Action has an organizational structure which is Organic. This structure can be explained as flat, with wide span of control, some authority levels, low level of specialization, low level of formalization and decentralization. Organic structure works best for those organizations which have unstable environments and less routine technology.

Organizational Functions


Wal-Mart has been hiring new employees into its marketing department. The CMO of the company John Fleming has a budget of $ billion, who plans to add workforce in the marketing department. The new spree of hiring will result in significant changes, in the organizational structure. Furthermore, these changes will be in the form of new departments which will consist of brand management, category marketing group, and an insight customer strategy group. In addition, the CMO plans to hire 30 percent of the marketing team which has 200 team members. This will consist of 60 additional team members. The SVP of marketing will oversee the development of the new marketing departments. Wal-Mart tries to keep its headcount down at headquarters, but increasing pressures from shareholders due to frustration about increasing stock prices of Target's directs the company to focus on improving marketing to its customers.

Theoretically, the marketing department must be established and work independently of the other departments of Wal-Mart, while maintaining the logical relationship of internal communication, open and fluid, which achieves the best performance, and achievement of concrete company goals. The function of marketing is essential to the economic performance of the Wal-Mart since it will take to study the market, the psychology of customers and prospects, niche market, the situation of supply and demand and economic flows and social and industrial trends affecting directly or indirectly to the marketing of its products and / or services. This is where marketing and sales departments work together to advise the business on how to present and guide the business case for selling the ...
Related Ads