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Organization Design 4370 - Essay Example

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With expansions, the company employees, product lines and geographical coverage get to increase. These will require that the organization increase its hierarchy to ensure effective…
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Organization Design Organizations have to redesign their structure when increasing their operations across the globe. With expansions, the company employees, product lines and geographical coverage get to increase. These will require that the organization increase its hierarchy to ensure effective communication and monitoring of work (Daft 124). With expended geography and increased customer products, Chipotle must take caution to ensure that they retain their identity and standardize their operations. This will make it develop a brand and identity across the market.
Chipotle currently experience communication problem as well as problems in the power distribution. In a large organization like Chipotle, the communication channels need to be clear to avoid other informal channels that can cause anxiety and rumors across the organization. Communication should follow the line of command with immediate supervisors giving information to their subordinates. However, the hierarchy should be one that promotes faster transmission of information and ensures that each individual is attended to as appropriate (Daft 125). The 10 levels might therefore delay the dissemination of data and impede the realization of the business goals.
Moreover, with the wide geographical coverage, the customers that are served by Chipotle have diverse cultural beliefs and practices. This implies that the business must recognize the different tastes and preferences and monitor closely variations in demands. In developing their products, differentiations must be made without losing the identity of their products (Daft 125). Moreover, before engaging the developments of the new products, Chipotle will have to conduct a market research and get the approval of the head office. This will result in increment in the quantity of sales and customer loyalty.
In addition, the latitude in making decisions should also be well defined by the company. Chipotle management have to determine which decisions to be made by the regional managers and those to be made by the centralized management. Decisions that affect the regional stores only should be made by the regional managers while the decisions that affect more than one regional outlets should be left for the centralized managers. However, the central management should authorize some of the decisions that are left on the regional managers to ensure that they in line with the company vision and mission.
On top, Chipotle will face the risk of integrating their processes and operations. The company has to ensure that the different regional outlets and departments cooperate and work together to promote the general good of the organization. This can be achieved by introducing cross-functional teams to work together and develop solutions to the business problems. Besides, integration of the company’s functions can be achieved by creating integrating roles that brings together the various members of different regional geographies, outlets, and departments (Daft 127). The interaction of the staff from the diverse segments will further promote a common corporate culture and values. Furthermore, liaison function could also be used to help reduce the problems of integration. The restaurateurs can thus be used to link the different company segment.
Effective operation of the business and realization of the business goals depend largely on the corporate design. If not properly designed, the business might end up recording performance that is below par and fail to maximize the return on their investment. Chipotle must therefore ensure its organization design is flexible in making their decisions and executing daily operations.
Work Cited
Daft, Richard L.. Organization Theory and Design. 4th ed. St. Paul: West Pub. Co., 1992. Print. Read More
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