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Elements of an Effective Organizational Design - Assignment Example

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This paper "Elements of an Effective Organizational Design" discusses the Coca Cola as a company with effective organizational design, high specialization and a small span of control; Wal-Mart can benefit from organizational restructuring because of the weaknesses of its divisional structure.
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Elements of an Effective Organizational Design
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Download file to see previous pages The new insights gained in the organizational theory and design class will be discussed. The paper will close with a discussion on the elements associated with an effective organizational design and examples of organizations that have effective organizational designs. Coca Cola Company is an organization that I think has an effective organizational design. Several things make Coca Cola Company effective. Work in the organization is highly specialized so that individuals know what they are supposed to do. This avoids duplication of duties and enhances employee performance because everyone is assigned the role for which they have expertise. Coca Cola Company is departmentalized into five departments namely, human capital, finance, industrial relations, sales and marketing, and production. Departmentalization helps the organization to group jobs in order to increase their productivity by pooling and maximizing on the expertise of different employees. Coca Cola’s manager’s span of control goes to as low as between three and five employees. This helps in the effective management of employees and resources (Galbraith 3). Decision making in Coca Cola is centralized in some aspects and decentralized in others. Decentralized decision-making helps the organization make quick decisions that address the felt needs of the consumer at the grassroots. Centralized decision-making helps the company to make decisions that affect the organization’s operations on a wide scale. Coca Cola’s has low formalization and as such allows employees at the grassroots to modify operations in order to suit the unique needs of the consumer. The clarity of Coca Cola’s chain of command is another thing that enhances its effectiveness (Puranam 14). ...Download file to see next pagesRead More
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