organizational design refers to the way in which a company functions. A divisional structure is made up of separate units or divisions. The most effective way to organize a company depends mostly on the company’s specific needs, functions, and goals. Within one corporation there may be many different divisions and each division has its own goals to accomplish. A manager oversees their division and is completely responsible for the success or failure of the division. This gets managers to focus more on results knowing that they will be held accountable for them. Some of the most common types of organizational design are functional, matrix, product or divisional, customer, and geographic. Each of these is characterized by one primary organizing factor such as location, the nature of the work, or the types of skills a team has. Organizational design can be determined by characteristics such as the nature of the business, workforce culture, and company size. In Wal-Mart’s case, its organizational structure is horizontal. horizontal organizational structure is a form of managing workers in which decision-making is spread among workers along horizontal lines. This type of management works in a way where collaborative model improves morale, productivity and creativity. It is a method often used in organizations that are heavily focused on product development or core business processes. Cross-functional work teams, where workers with expertise in different areas work together on one project, are also a common feature of a horizontal organizational structure (Garcia, 2005).
The term Organizational Behavior (OB) refers to the way in which people behave in an organization, and how that behavior affects your organization, either positively or negatively. A formal definition is as follows, "Organizational Behavior is a field of study that investigates the impact individuals, groups, and structure have on behavior within organizations for the purpose of applying such ...
In large companies, such as Wal-Mart, organizational structure is the key to keeping the company in order and running smoothly. The organizational design process consists of several key elements so that the company is able to reach its goals. The most important points in Wal-Mart’s organizational structure include analyzing the situation, planning for strategy, gearing operations towards following that strategy, and implementing the changes. When properly executed, the organizational design process should give its employees the tools and direction they need to put the organization’s strategies into action. The best organizational design solutions will always align the company’s actions with its goals.
Garcia, A. (2005).
Types of organizational designs. Retrieved from http://www.emaytrix.com/mgmt307/section3.php