Learning Activity- Organizational Structure

Preface:

A leader's job is to create the direction for the company to move forward. The leader does this in steps. Here are the steps of the process: First the leader designs the Vision and Mission of the company. Second, the leader must establish an organizational structure which promotes the vision, mission and empowers employees to keep the forward movement in the organization.

In creating the structure various factors must be considered.

- First and foremost is the purpose of the company or organization. What type of structure will best accomplish that goal? Certainly a company like UPS needs a somewhat rigid structure that has as its goal to get correct parcels to the right customers in the fastest way possible. A variance in procedures or ways of accomplishing this task would never work. A tight, delineated structure is imperative in this instance.

- Along with the purpose the leader must look at the vision of the organization. Where does the leader want the organization to go? How best can the structure provide for the future? Will the vision call for expansion into other countries or simply call for product development changes? Do you plan a structure that can easily grow in size without harming its integrity or one whose focus is the best way to make new products? The correct Vision must be built into the organization structure.

- The people who make up the organization need their jobs and their decision making authority considered. The authority must flow and make the organization respond favorably to the decisions and changes that are needed to move the organization toward the vision while making sure the stability continues to keep essential tasks on track. This is tricky because the leader's job here is not to tell the managers what procedures to use or make but rather to set up a structure with authority to make it possible for them to make those decisions and establish the necessary procedures.

- The structure must be people centric. It must focus on how people will best work together to get their jobs done and still focus on the vision and the necessary change that is inevitable to keep the business alive in the 21st century. Change is the operative word.

- Budget considerations for now and into the future must be considered.

- Finally, external environmental factors like sustainability and knowledge management may also be considered in developing the structure. These factors would be considered on a case-by-case basis.

Now it is your turn to try your hand at creating a structure to fit an organization. Consider these facts:

Richard Purvis has created the Jordan Shoe Company. It is known for its specialty tennis shoes at moderate prices. The company is making fun shoes for young children, mostly girls. Catering to the age group 1 thru 12, the shoes are very popular in Colorado. The shoes are growing in popularity and Richard is considering expanding to other states. Business has grown steadily in the last seven years and the future looks bright. If Richard expands the company he would have to set up two other plants in other states. If he does this he will have to reorganize the Colorado plant. The staff has always gotten along because Richard has always been able to keep things on an even keel with his personality and his concern for personnel welfare. He would have to find someone to take his place to run the Colorado plant. He wants to set in place a structure that will continue to grow the business while still maintaining its quality, reputation, and the happiness of his employees.

Some additional facts that may help in your considerations. Purvis currently employs a plant manager, two salesmen, an office manager, two office workers, a bookkeeper and 12 factory workers. The salesmen want to move into marketing and to add new sales personnel. The cost of expansion could be done effictively if the current profit levels are maintained and that can only be done if the Colorado plant continues to run smoothly.

PART ONE - Create a Vision and Mission statement for Purvis

PART TWO - Create an organization structure that will carry the organization forward.