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Management - Essay Example

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A. D. Chandler carried out research on the relationship between environment, organizational culture, strategy, and the structure of the organization. He defined strategy as the long-term goals a company sets and structure as the framework through which strategy can be…
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Management

One of the organizations that he studied was the Sears. Chandler proposed that Sears and the other three companies that he researched upon had grown and diversified by adopting the multi-divisional form of organizational structure. The multi-divisional form of organizational structure, or the M-form, is a corporate group of semi-independent products or geographic groups whose activities are supervised by headquarters that charts out management strategies and synchronizes interdependencies. Sears started opening retail stores in the 1920s and opened many stores in Chicago, Indiana and Englewood, with its main headquarters at Homan Avenue in Chicago coordinating the company strategy. Up till the 1950s, the company had opened many urban department stores and had diversified itself by adding companies like Allstate Insurance Company. However, the M-form is not the only organizational structure; other organizational structures include functional, geographic, hybrid, matrix, form/product and user/market. The functional structure is concerned with the specialized management of its parts where the geographical structure distributes parts in different places. The product organizational structure deals with the material people are dealing with, while the market structure works on the basis of market segmentation. The hybrid structure combines two structures, but the matrix organizational structure entails a repeating substructure within each department under one roof (SUNRISE Information Services, 2010).
2. Organizational culture refers to the beliefs, cultural values and professional and ethical codes of conduct that craft what the business stands for. It is reflected in many forms within the organization such as the language and traditions of the employees, goal of the business, in group dynamics and the values that are tied to it, the working environment etc. CEOs have emphasized on organizational ... Read More
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