The set of variables are grouped into transformational and transactional factors (Falletta, 2005). This paper focuses on the seven transactional variables, such as structure, tasks and skills, management practices, systems and policies, work unit climate, motivation and individual needs and goals.
Burke-Litwin Model defines the organizational structure as an arrangement of functions and people into specific areas and levels of responsibility, decision-making authority, communication and relationships (Falletta, 2005). Such structure shall support the organization's mission, goals and strategy in order to achieve competitive advantage for the firm (Porter, 1985).
PetMed Express can be considered as a mechanistic organization that follows the functional departmentalization structure. The company has highly specialized departments with high formalization and a clear chain of command. The company's structure supports its cost leadership strategy by increasing consistency and reducing cost through centralization and management control (McShane, 2001).
The company currently has 248 full time employees distributed into four departments of customer care, warehouse, pharmacy and corporate departments. ...