Do You Have a Well Designed Organization Essay Example

banking services, consumer electronics, food and drug stores, general merchandise, hospices, hardware, mail and package delivery, toys and sporting goods. For more information on the authors' research, refer to the Harvard Business School case studies titled "Management Levels at Staples" (A, B, C, D, E, and F) available at derivativeness.org.laity.There are many lessons that can be learned from our research on large corporations and how they execute strategy. According to our findings, 10 out of the 25 largest employers in the world are multiuse enterprises, with national or international foothill managers. Additionally, six out of the 25 best employers in the United States, as noted by Fortune magazine, fall into this category.

In 2007, the top 10 U.S. Eluting retailers generated over $717 billion in sales and employed 3.45 million people, as reported by Chain Store Guide. Among the Fortune 100 companies, 20% are considered to be multiuse enterprises to some extent. While multiuse enterprises are more common in developed countries, they are gradually emerging in developing nations as their economies become more services-oriented.

Despite its prevalence in the business world, the structure of the multiuse enterprise has not received much attention from academics and consultants over the years. This structure faces four distinct problems, including issues related to specialization, ordination mechanisms, decision rights, and organizational boundaries. However, with careful implementation of five organizational-design principles, a multiuse enterprise can effectively execute its strategy and operate like a well-oiled machine.Instead, multiuse enterprises struggle to maintain consistency in their large, multidimensional organizational structure. These companies, such as DuPont and General Motors in the sass, are comprised of numerous branches, service centers, hotels, and stores. To unify these diverse units

that specialize in different products, services, and technologies, managers must pay close attention to implementation. Unfortunately, most books on organization only focus on the multifunction aspect and do not discuss the challenges of a highly dispersed field organization like multiuse enterprises. However, disregarding the importance of this managerial practice would be a mistake. Since these companies strive to offer customers a consistent experience across their entire brand hierarchy and centralized power structure, employees must adopt common operating practices, serve customers in a similar manner, and present a uniform image reminiscent of Max Weber's traditional bureaucracy from the early sass.

Flawless execution and diffusion of The Theory of Social and 108 Harvard Business Review communication, control, and deployment processes are necessary for multiuse organizations to consistently deliver high levels of service. These organizations must also balance customization and standardization, taking into account the unique characteristics of local and regional markets. For example, in some cities, Wall-Mart, Cost, and Target may compete equally, while in others one may dominate. Adopting a uniform pricing policy for all locations can result in loss of market share in some areas while foregoing profits in others. Marketing and merchandising programs must be customized to address consumer demographics and tastes that vary from place to place. Additionally, different labor practices may be required due to variations in employee availability, skill sets, and wage levels across regions. Multiuse corporations face challenges in determining the appropriate level of customization allowed by corporate headquarters, balancing local responsiveness with global uniformity, and determining the responsibility for differentiation at the store, district, or regional level. Lastly, the sharp division of responsibilities between corporate headquarters and field organization

often causes problems.

The primary focus of strategy decisions, such as reducing positioning and advertising and determining annual budgets and performance targets, lies with executives at headquarters. On the other hand, field managers are responsible for decisions regarding implementation, such as rolling out initiatives, reinforcing desired employee behaviors, and delivering revenue increases. However, the physical and psychological differences between these two groups present several challenges. Can headquarters create new products, programs, and policies that align with the capabilities of field units? How should the company effectively communicate information about new initiatives to a large workforce without distortion or oversight? Additionally, how can the organization identify problems in distant locations after launching initiatives? Field managers in multiuse enterprises often prove difficult to classify as they don't fit the mold of traditional general managers or typical middle managers. They handle general management tasks but lack control over essential factors such as marketing dollars and pricing flexibility that determine the success of their unit. Defining the responsibilities of field managers and determining how they will exert influence is a complex task.Additionally, a multiuse enterprise resembles a Russian nesting doll, as the responsibilities of one level are incorporated into those of the level immediately above. This may create difficulties in distinguishing between jobs from one level to another, leading to confusion and impacting performance. The challenges faced by field managers in such organizations are a result of breakdowns in coordination, communication, and control, particularly in large organizations with diffuse responsibilities and unclear levels of accountability.

If these problems are not resolved for extended periods, they can have significant operational and financial consequences. To prevent this, multiuse enterprises attempt to define

the roles of field managers and distribute responsibilities in a unique manner. Field managers work together on the same issues, taking on some responsibilities, sharing others, and dispersing tasks across levels. In contrast to the traditional bureaucracy, multiuse enterprises create a set of general management jobs with overlapping responsibilities instead of specialized roles.

Collectively, these managers form a layered network to address all problems that can affect strategy implementation. Interestingly, the companies studied employ similar structures despite significant variations in the size of their base units.Various organizations have established a common hierarchy consisting of four levels: store managers, district managers, regional vice presidents, and division presidents or senior vice presidents. At the highest level of these organizations, there is a senior executive who is typically a member of the corporate management team and has significant strategic responsibilities.

In this article, we will not discuss the job of the senior executive as it is similar to that of other senior executives. The structure of a multiuse enterprise is comparable to a Russian nesting doll, where the profit and loss (P&L) of each level are encompassed within those of the level above it. This can sometimes make it difficult to distinguish between jobs at different levels.

Since the success of multiuse organizations heavily relies on tailoring jobs, we will begin by describing the work of field managers. Store managers, also known as branch managers or restaurant managers depending on the industry, are responsible for managing the operations of their respective stores. They work within specific guidelines set by corporate headquarters, including store layout, product selection, pricing policies, and inventory levels. While store managers are evaluated based on financial targets and

various operational, customer-service, and multidimensionality goals, they have limited control over setting these targets.

Store managers have control over the selection, assignment, training, and motivation of frontline employees, as well as the timing, oversight, and follow-through of key activities. They may also have some flexibility in modifying merchandise displays, ordering local goods (typically no more than 15% of inventory), and pricing markdowns. However, their control is limited in terms of what they must do, but they have considerable discretion in how to assign, sequence, and complete tasks. Their focus is more tactical than strategic.

According to a store manager at Staples, each day is filled with small tasks to accomplish. The manager arrives at 6 am to turn off the alarm, count the money in the safe, prepare cash registers, check cleanliness, and create the agenda for the day's tasks. After reviewing voice mail with messages often from district managers about store performance, the manager checks the company intranet for messages. They pay special attention to the Management Action Planning (MAP) system run by Staples' U.S. Tore operations. MAP provides information on new corporate initiatives, deadlines for display changes, new promotional programs, and associated store-level tasks.

Home Depot has a position called the Merchandise Action Planner, who communicates detailed information about the store's merchandising presentations for the month. These systems provide extensive to-do lists. Store managers then spend several hours directing work flows and ensuring that employees properly attend to customers, a role referred to as "manager on duty" at Staples and "client sales lead" at Victoria's Secret. Throughout the day, managers interact with customers and coach associates on various tasks such as selling, managing inventory,

and restocking. They also handle unexpected issues like delayed deliveries, product shortages, dissatisfied customers, and broken fixtures, requiring them to quickly shift their focus. According to one store manager, "many things can happen, and sometimes they happen all at once." The impact that store managers have on a company's profit and loss (P) statement comes from prioritizing customer service, improving the store environment, keeping employees engaged, and assigning them tasks based on their skills. J.C. Penney discovered from customer surveys that small details like clean dressing rooms significantly affect sales. Staples' store managers believe that motivating employees is crucial for success, especially when introducing new initiatives. One manager explained, "My job is to get my managers and associates excited. People are never going to believe in a program unless you make them believe in it."The text discusses problems that store managers may encounter. Firstly, some managers fail to delegate effectively and end up continually performing routine tasks themselves, which hinders organizational growth. Secondly, some managers make the mistake of treating all employees equally, while smart managers tailor schedules and roles based on individual needs, strengths, and weaknesses. Lastly, managers may face difficulties if they don't plan for unexpected disruptions such as absences and delayed deliveries. District managers focus on consistent execution, performance improvement, and developing talent across all stores through regular visits.

District managers are responsible for opening new stores and implementing new initiatives. They have more authority than store managers when it comes to budget making, real estate decisions, and local advertising. Some district managers also oversee specialized stores within retail stores, such as pharmacies, and assist headquarters in designing merchandising and service strategies.

When district managers contact store managers, they request performance updates and suggest corrective measures if needed. They address operational issues by intervening locally or collaborating with headquarters staff. Due to their knowledge of the organization, connections at headquarters, and experience, district managers serve as "connectors", connecting store managers with people who can quickly resolve problems or bringing the issues to the attention of senior executives. They also relay important information from headquarters regarding upcoming promotions, potential delivery issues, and system failures. Additionally, they conduct audits to ensure stores are compliant with company policies and procedures. The main challenge for district managers is finding a balance between monitoring and coaching, similarly to their counterparts in other industries.

Nines, Staples' district managers focus a significant portion of their in-store time on conducting audits in Eluting firms. They zero in on minor infractions by observing and evaluating the efforts of managers, assistant managers, association developing people, content dates, and customers. They often instruct store managers on what changes to make without providing a rationale, instead preferring to "check the building's pulse." While this approach may be quicker, it fails to have a lasting impact on individual managers. In contrast, experienced district managers engage in detailed conversations with assistant managers to understand their needs, strengths, weaknesses, and contingencies. They also ensure that associates in each aisle are attending to customers properly and refuse to entertain outperforming other tasks. Failing to build store-level management encase in approach.

According to our research, it has been observed that when it comes to informing customers about items that are out-of-stock, effective district managers ensure that the store is well-stocked. It is important for managers

to strike a balance between emphasizing compliance and allowing for flexibility in pricing. Additionally, it is crucial for managers to focus on individual strengths during audits, rather than solely relying on direction and highlighting weaknesses. Noticing a shortage of binders during the busy back-to-school season in another store, for example, reveals the need for better control and coaching by vice presidents. At Staples, managers focus on specific markets, key competencies, or trends, while growth opportunities and systemic store walks depend on each district's issues. These factors are crucial in determining a manager's style. In contrast, at Victoria's Secret, managers follow a prepared checklist to ensure regional preparedness and establish connections between stores and conferences. Panky goals play a significant role in this process.

Typically, regional human Failing to recognize patterns and District managers possess authority in sales and marketing, finance, and loss-reversion departments. They prioritize local issues rather than district labor pools, considering the real estate function reinforcing corporate priorities. At Staples, a district pool consists of 14 store managers and 28 assistant managers who maintain direct lines of reporting with headquarters departments.

In filtering information, most vice presidents spend three days with field store teams and the rest at headquarters or on new projects. They move employees around to improve performance or respond to sudden needs while distinguishing their jobs from those working on task forces or marketing programs. Regional vice presidents at Staples assign an assistant manager to a store manager who performs well operationally but lacks excellence in customer service.

During their assignments, district managers are responsible for providing feedback to headquarters on proposed initiatives, converting broad programs into detailed action plans, and

ensuring alignment in the region and headquarters, as well as troubleshooting. They play a crucial role in developing assistant managers and deterring issues. A region at Staples typically consists of 80 to 100 stores, which are located in a major city like New York or a larger area such as the Carolinas. Acting as coaches, they prefer using questions rather than directives to teach their teams. Regional vice presidents are highly attuned to the unique needs of their markets and act as guardians for them. They also have a say in decision-making processes within the company and identify best practices. Some companies, like Borders, have started assigning regional vice presidents more responsibility while reducing the authority of headquarters managers. These regional vice presidents also take photographs of the most attractive window displays in district stores and share them with their departments.