Corporate Structure in Chipotle - Case Study Example

Chipotle has a centralized organizational structure. Decision making is done at the top management level with very less delegation of power and authority to regional directors and managers. This has made communication between departments very difficult as there are no integrating mechanisms between the departments. Due to the centralized structure rules and regulations are followed to the latter. There are no adjustments in the running of the business as decision making is done by the top management.

Socialization is an important thing to chipotle as it needs to identify with the residents of the business area. This will help the company to understand the market better, as well as the customer, needs.Chipotle has a mechanistic structure. This is because Chipotle decision making is left to the top management and communication is vertical. The reporting relationship is well defined and every employee specializes in one task.There is a lack of cohesion between the corporate and the operations departments.

The current structure of Chipotle creates a gap between the operations employees and the corporate employees. Creating integrating roles between departments and bringing together cross-functional teams to work on developing specific problems within the company will help in resolving the flaw in communication.The current corporate structure is very lean with little overlap in functional areas causing disruption in the event of staffing changes. This can be resolved by cross-training of individuals across different units.

The company should implement an internal entrepreneurship program to encourage corporate employees to demonstrate the type of people-development that the Restaurateurs are known for.