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Organizational Structure And Effectiveness - PDF

   

Added on  2021-05-31

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Leadership ManagementProfessional Development
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Organizational Structure And Effectiveness 1MATRIX ORGANIZATIONAL STRUCTURE IN THE STARBUCKS COMPANYStudent’s by (Name)Professor’s (Name)College CourseDate
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Organizational Structure And Effectiveness 2MATRIX ORGANIZATIONAL STRUCTURE IN THE STARBUCKSCOMPANYThe matrix organizational structure refers to where specialists from various functionalareas are assigned areas to work on, after which they return to their areas after the completionof the work. Therefore, the workers have dual reporting relationships which make thestructure different from the traditional hierarchy (Marques et al., 2015, p. 302). One of theAustralian companies that use matrix organizational structure is the Starbucks CoffeeCompany. It is a multinational organization, which is the largest coffeehouse in the globe.The company’s stable leadership has been enabled by using the structure that best suits thecompany. Notably, an organizational structure is the determinant of the managerial andleadership styles to be used, the communication model, change and other factors that arecritical to the organization. The Starbucks Company has changed over years to ensure thatthe business structure used is the one that meets the needs of the current market. In fact,matrix organizational model is unique to Starbucks though it is featured in the conventionaltypology of business structures. One of the notable things is that Starbucks has not developedbecause of using the matrix structure but has progressed due to using a structure that meetsthe demands of the organization’s needs (Snell et al. 2017). This has enabled the companynot only optimize processes but also provide quality goods and services to its customers. The matrix organizational structure in Starbucks has several features. One is thefunctional structure which refers to a grouping of workers based on their function in thebusiness. Some of the groups formed are the HR, finance and marketing departments. Thesegroups operate in the topmost positions in the organization, for example, the corporation'sheadquarters (Kotabe and Helsen 2014). For instance, the human resource departmentdevelops policies to be used in all cafes of the company. The role of the functionaldepartment in the company is therefore to monitor top-down activities. The other matrix
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Organizational Structure And Effectiveness 3team is on geographic divisions, which deals with the regions that the corporate serves. Assaid before, Starbucks Company is a global organization with three markets that is China andthe Asia Pacific, the Americas and Europe, Middle East, Russia, and Africa. For easierperformance, the market is further divided into Western, Northwest, Southeast and Northeastblocks. Every locational sector has a senior leader, called the vice president who reports toother seniors that is the geographical and functional heads. One of the benefits of this divisionis that it helps the managers relate closely so as to meet the needs of the different regions. The other matrix aspect of the company is the product based section, which addressesproduct lines aspects. For example, there is the sector that handles the population needingcoffee and the related goods, the other one serves populations requiring baked goods whileothers need the merchandise for example mugs. Therefore, the feature helps the organizationserve its market with product lines because what may be demanded by one population maynot be required by the other. Therefore the structure has enabled the organization to providegoods and services based on the goods lines. The final aspect of matrix organization in thecompany is a team (Acharya and Mishra 2017). They are developed in different parts of theorganization but are most evident in the least organizational levels that are the Starbuckscafes. Every café has groups that work together to ensure that customers' needs are met.These have aided the organization is providing efficient and effective services to consumers.From the explained structures in the organization, it is clear that Starbucks Company uses thematrix structure, where functional, geographical, product based and teams cooperate inserving the customers.Benefits of Using Matrix Structure in Starbucks Corporate By using the matrix organizational structure, the company has attained severalbenefits that have enabled it to compete successfully in the global market. One is on resourcecoordination where leaders focus in the areas they are good at (Kerzner 2017). This is to say
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