In most retil orgniztions, these chnges come in the fce of reltively little premerger plnning. lthough mny firms consider the implictions of structurl chnge on their orgniztion, often such nlysis is cursory nd superficil.
This pper will introduce the elements of structure within the retil orgniztion, then explore the reltionship mong structure, strtegy, nd culture. Finlly, the structurl chnges within retil orgniztion strtegy is presented in the previous pssges of the pper.
Retil orgniztionl structure hs numerous dimensions: formliztion, speciliztion, stndrdiztion, hierrchy of uthority, complexity, centrliztion, professionlism, nd personnel rtios. mong them, complexity, formliztion, nd centrliztion re focl to our discussion of retil orgniztion (see Figure 1).
Complexity refers to the number nd vriety of hierrchicl lyers, job titles, nd divisions nd deprtments within n orgniztion. The more lyers nd divisions, the higher the complexity of n orgniztion. (Bddeleys, Jmes, 1990) It is needed to sy tht the level of complexity vries within the retil orgniztion. Within Tesco, the legl deprtment hs mny lyers of lwyers nd stff members servicing the legl needs of different regions of the country, wheres mnufcturing my hve only one loction with two hierrchicl levels.
Formliztion refers to the number nd content of rules nd regultions present within n retil orgniztion. The more written rules, stndrd operting procedures, nd policy mnuls, the more forml n orgniztion. The degree of formliztion determines how mny decisions re preprogrmmed, since rules nd mnuls cn replce mngeril decision mking. Highly formlized structures led to routine work nd ctivity. In forml orgniztions, behviors nd ctivities re predetermined since they re described in some document. Employee freedom in decision mking nd behvior is therefore highly limited. dditionlly, formliztion often leds to impersonlity for both employees nd customers Centrliztion
The compny tht is being discussed hs decentrlized retil dministrtion. It is counted to be the cornerstone of orgniztionl policy tht is crucil when it comes to compny's retil success nd some difficulties to overcome every now nd then. The ltter my relte to the locl overpricing of goods, poor service, out-of-stock conditions, nd excessive nd unblnced inventories. t the mentime, compny officers ssume tht the dvntges of decentrliztion previl over its disdvntges.
Centrliztion refers to the distribution of power nd decision mking within n orgniztion. The less the number of groups nd levels involved in decision mking, the more centrlized firm. In centrlized orgniztions, lrge mjority of ll decisions re mde by top mngers. In decentrlized orgniztions, on the other hnd, decisions re delegted or pushed down to lower levels.
DETERMINNTS OF STRUCTURE
There hs been considerble reserch regrding the fctors tht determine, nd re determined by, the structure nd design of n orgniztion. The fctors considered most often re size, technology, strtegy, externl environment, nd most recently, culture nd ledership. Evidence cn be found supporting the position tht these elements determine structure nd tht structure determines them. So there is circulr reltionship mong them. They ll mutully