Compendium 5th Edition

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HRuday Monthly | OCTOBER 2021

MUIDNEPMOC RH
Edition 5
RH ABM SMIMN
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5

Organizational
Structure
An organizational structure defines
how job tasks are formally divided,
grouped, and coordinated. An
organization's structure integrates
and connects its various pieces in
order for it to work at its best. The
structure chosen has an impact on
an organization's ability to achieve
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its strategy and objectives.Managers


need to address six key elements
when they design their organization’s
structure: work specialization,
departmentalization, a chain of
command, a span of control,
centralization and decentralization,
and formalization.
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5
Google's
organizational
structure
Google, known for its gigantic
infrastructure and classy work
life, tops the list of most job
aspirants. The company provides
the latest tools and technology to
its employees and a friendly
work culture. But how is it able
to manage all of this and able to
provide the best services to its
employees? It is because of its
well sorted organisational
structure.

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RH ABM SMIMN
MUIDNEPMOC RH
Edition 5 Google has a cross-functional
organizational structure, which is
technically a matrix corporate
structure with a considerable degree
of flatness. This flatness is a defining
structural feature that supports the
company’s growth and
competitiveness.

The main characteristics of Google’s

corporate structure are as follows

Function-based definition

Product-based definition

Flatness
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RH ABM SMIMN
MUIDNEPMOC RH
Edition 5 Google’s corporate structure uses
function as a basis for grouping
employees. For example, the
company has a Sales Operations
group, an Engineering & Design
group, and a Product Management
group, among others. The business
also uses products as a basis for
grouping employees. For instance,
the company groups employees for
developing Pixel devices. Google LLC
also maintains groups for other
products. In addition, the company’s
corporate structure has considerable
flatness. A flat organizational
structure means that Google’s
employees, teams or groups can
bypass middle management and
communicate directly with higher
management. Based on the flatness
of the corporate structure,
employees can meet and share
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information across teams.


RH ABM SMIMN
MUIDNEPMOC RH
Edition 5
Walmart's
organizational
structure

Walmart the American multinational


retail corporation that operates a
chain of hypermarkets is able to
efficiently run its operations because
of its hierarchical functional
organizational structure. This
structure has two features: hierarchy
and function-based definition. The
hierarchy feature pertains to the
vertical lines of command and
authority throughout the
organizational structure.

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.
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5 For example, except for the CEO,
every employee has a direct superior.
Directives and mandates coming from
the top levels of the company’s
management are implemented through
middle managers down to the rank-
and-file employees in Walmart stores.
On the other hand, the function-
based definition feature of the
company’s corporate structure
involves groups of employees fulfilling
certain functions. For example,
Walmart has a department for the
function of human resource
management. The company also has a
department for the function of
information technology, and another
department for the function of
marketing. These are just some of the
numerous function-based departments
in Walmart’s organizational structure.
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The main effect of Walmart’s


hierarchical functional organizational
structure is the ability of corporate
managers to easily influence the
entire organization. .
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5

For example, new policies and


strategies developed at the
company’s corporate headquarters
are directly passed on to regional
managers down to the store
managers. In this way, effective
monitoring and control are achieved
through Walmart’s hierarchical
functional organizational structure.
However, a downside of this
corporate structure is that it has
minimal support for organizational
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flexibility. The lower levels of the


organizational structure cannot easily
adjust business practices because of
the lengthy communications and
approval process involving the middle
managers and corporate managers at
Walmart’s headquarters.
.
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5
Wipro's
organizational
structure
To achieve its strategic aims and
deliver on its corporate vision, any
corporation needs well-structured
machinery and hence Wipro has a
post-bureaucratic organisational
structure, with an open, informal
work atmosphere and flexible
management techniques.
Wipro is a massive company with a
complicated structure. It has a bit of
a top-heavy feel to it. Horizontal
(service lines that focus on
technology and delivery), vertical
(business units that focus on domains
and clients), and support services
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make up the core technology business


(IT, HR, etc). There are also other
investment groups that are only
weakly related to horizontal or
vertical units. The CTO office focuses
on emerging technology and
collaborates with individual units as
needed.
.
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5
In most cases, reporting lines are
complicated. It's possible that you'll
work for one manager and be evaluated
by another. They usually work
together. However, there are certain
gaps when there are more people.

Hierarchical structure of the


organization

Project engineer-technical, associate


consultant- technical

senior project engineer-technical,


consultant -technical

team lead- technical


From here it splits into technical or


management ,

manager- non technical , architect-


technical

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sr.manager -non tech, sr.architect -


technical

delivery manager -non tech,sr.delivery


manager-non tech, lead architect-
technical

general manager
.
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5
Starbuck's
organizational
structure

To facilitate business development in


the global coffee industry and to live
up to its tagline the It's Starbucks.
Brewed for those who love Coffee.
You're a sip away from GOLD,
Starbucks Corporation has designed
an efficient organizational structure. It
has a matrix organizational
structure, which is a hybrid mixture
of different features from the basic
types of organizational structure. In
this case, the structural design
involves intersections among various
components of the business. For
example, the company’s product-
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based divisions intersect with


functional groups and geographic
divisions, which in turn intersect with
other parts of the organization. The
following are the main features of
Starbucks Coffee’s corporate
structure:
.
RH ABM SMIMN Functional hierarchy : The

MUIDNEPMOC RH
Edition 5
functional hierarchy feature of
Starbucks Coffee’s organizational
structure refers to grouping based on
business function. For example, the
company has an HR department, a
finance department and a marketing
department. These departments are
most pronounced at the top levels of
Starbucks’s corporate structure, such
as at the corporate headquarters.
This characteristic is hierarchical.

Geographic divisions :Starbucks


Coffee’s corporate structure involves
geographic divisions, which are based
on physical location of operations.
The company has three regional
divisions for the global market: (1)
Americas, (2) China and Asia-Pacific,
(3) Europe, Middle East, and Africa.
Also, in the U.S. market, Starbucks
Coffee’s organizational structure
involves further geographic divisions:
(a) Western, (b) Northwest, (c)
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Southeast, and (d) Northeast. Each


geographic division has a senior
executive. In this way, each local
manager reports to at least two
superiors: the geographic head (e.g.
President of Europe, Middle East, and
Africa Operations) and the functional
head (e.g. Corporate HR Manager).
.
RH ABM SMIMN

MUIDNEPMOC RH
Edition 5
Product-based divisions : Starbucks
has product-based divisions in its
organizational structure. These
divisions address product lines. For
example, the company has a division
for coffee and related products,
another division for baked goods, and
another division for merchandise like
mugs. This feature of the corporate
structure enables Starbucks to focus
on product development.

Teams : Teams are used in different


parts of Starbucks Coffee’s
organizational structure. However,
teams are most visible at the lowest
organizational levels, particularly at
the coffeehouses. For example, in
each café, the company has teams
organized to deliver goods and service
to customers. This feature of
Starbucks’s corporate structure
enables the business to provide
effective and efficient service to
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consumers. Team effectiveness is a


major determinant of the financial
performance of franchised locations
and company-owned coffeehouses
.
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5
Samsung's
organizational
structure

Samsung with its aim to promote


technological innovation
throughout the enterprise has
designed its organizational structure
by keeping technological innovation
at the heart of the company’s
strategies. Samsung has a product-
type divisional organizational
structure. This structure uses
product categorization as the basis
for determining which resources and
business operations belong to certain
divisions. The entire corporate
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structure is unified via Samsung’s


headquarters, which are located in
Seoul.
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5 Samsung’s corporate
structure has the
following main
characteristics:

P r o d u c t - t y p e d i v

isions : Samsung’s
organizational structure’s main
characteristic is its product-type
divisions. Each division is a group of
resources and operations that
represent a product category, such as
resources and operations for the
production, distribution, and sale of
consumer electronics. The product-
type divisions in Samsung
organizational structure is: Consumer
Electronics, Device Solutions. IT &
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Mobile Communications.
RH ABM SMIMN
MUIDNEPMOC RH
Edition 5

Centralized corporate hierarchy :


Samsung’s corporate structure
involves a hierarchical model, despite
its product-type divisions. The
corporate headquarters are the most
notable manifestation of this
hierarchy, which is part of an
organizational design for ensuring
that the conglomerate’s operations
are unified and effectively directed
towards growth and operational
effectiveness.

Geographical groupings : Samsung


uses geographical groupings or
divisions as a minor characteristic of
its corporate structure. In the
company’s organizational chart, these
geographical divisions are generally
under the product-type divisions. For
example, Samsung Electronics North
America is a geographical division
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within Samsung Electronics, which is


a product-type division. Through this
characteristic of the organizational
structure, the company implements
region-specific strategies, such as
strategies intended for the North
American market for Device
Solutions.
.

RH ABM SMIMN
MUIDNEPMOC RH
Edition 5

A good organisational structure


makes it easier to achieve goals by
ensuring that all operations are
properly coordinated.It features a
built-in system of "checks and
balances" to ensure that progress
toward achieving objectives is
examined along the route, allowing
for any necessary adjustments and
new decisions to be made.

.
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