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Organizational Design and Culture - Essay Example
Finance & Accounting
Pages 7 (1757 words)
Organization Design and Culture Question 1 Organization design or organizational structure can be defined as the coordination of both the individual and group work within an organization. Individual work should be managed and coordinated in order to achieve the organizational future objectives and goals…
Earlier Home Depot was following decentralized organizational process. Due to increasing competition within the market place the organization decided to bring change in the organizational design. They transformed to centralization process in order to concentrate the decision making authority at the higher levels within the organization. Maintain appropriate balance between the centralization and decentralization process is huge challenge for several leading global organizations. Home Depot is one of the global retail giant. The organization has more than 2000 retail stores across the globe (Griffin, 2007). This centralization process allows the store managers to undertake several decisions independently and autonomously. Therefore, it can be stated that each retail outlet of Home Depot has entrepreneurial work culture. This process helped to save lot of money and increase business productivity. This centralization process helps the company to reduce operational cost as the company negotiates effective discounts from the existing suppliers. Home Depot follows flatter organizational hierarchy. The organizational hierarchy of Home Depot consists of few layers. Flatter organizational hierarchy helps an organization to provide its employees huge level of self actualization and greater satisfaction needs. ...