Reference no: EM133736018
Fabulous Footwear Case Study
The structure of an organization is a crucial aspect of the company. It is meant to specify official prescribed titles, reporting authorities /formats within hierarchical levels, and the designation of control. Organizational structure guarantees the gathering of people into sections based on their assigned responsibilities; these are mainly exhibited in the organization chart. The purpose of an organizational structure is to establish the design of a system that enforces operational interaction, management, and incorporation of a coercive departmental effort across the organization. The organizational structure involves three significant aspects:
It assigns official ranks and reporting relationships.
Identifies the classification of persons into different departments.
It supplies tools for connecting and organizing structural components into a reasonable entirety (Daft, 2020).
Piezunka & Schilke (2023) viewed organizational structure as a tool for decision-making and summation of votes. While Iranmanesh et al., (2021). defines organizational structure as a display of authority, obligation, reward distribution, task allocation, and chain of command, which should be precisely followed for communication purposes.
Fabulous Footwear Organizational Structure
Fabulous Footwear has a divisional organizational structure in which employees are grouped into several departments or segments based on the company's products. Top management makes most of the decisions regarding shoe design. The styling manager, M. T. Lawson, works closely with his designer, John Flynn when designing a new shoe sample. They usually get their ideas by reading fashion and trade publications, replicating superior designers' models, and personalizing them to fit their business. It takes about two weeks to a month for a design to be agreed upon. In this organizational structure, every product approval comes from the president, which can be very tasking because they oversee every other department. Their time constraint can result in delays in the approval of shoe design, hasty decision-making, and errors that might eventually cost the business (Daft, 2020). According to Islami et al. (2021), the divisional structure depends on the basis of the product sold for arranging divisions at different rankings. Sections align with the markets supplied and are prescribed control over the operational responsibility that the markets need to service their customers.