A Critical Organizational Analysis of Zara: Structure and Design

This essay provides a critical organizational analysis of Zara, examining its structure, culture, and design. The introduction defines organizational analysis and introduces Zara as a global retailer. The main body explores theoretical perspectives like symbolic interactionism and functionalism, followed by a summary table outlining key themes such as structure, identity, culture, learning, aesthetics, power, and gender. A literature review discusses organizational structure and its impact on business success. The critical evaluation assesses Zara's organizational structure, emphasizing the importance of clear hierarchies, communication, and employee morale. The essay concludes by summarizing the key findings and the importance of effective organizational design for Zara's continued success in the retail industry. The essay highlights the need for Zara to analyze its structure and adapt to be effective.

CRITICAL
ORGANISATIONAL
ANALYSIS OF
ORGANISATION

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Theoretical perspective...........................................................................................................1
Summary table........................................................................................................................2
Literature review....................................................................................................................5
Critical evaluation..................................................................................................................6
CONCLUSION................................................................................................................................8
REFERNCES.................................................................................................................................10

INTRODUCTION
Organisation analysis can be define as process of appraising growth of workforce,
business environment, overall development, structure, etc. This will also helps in identifying
performance of organisation, areas of problem, opportunities and make strategies so that overall
productivity can be enhanced. Zara is Spanish retailer brand situated in Galicia which deals in
shoes, clothing, beauty products, perfumes, accessories, etc. at international level. It was
established in 1975 as Zorba and manages upto 20 collection of clothing in a year and operates in
different 202 markets with more than 10,000 stores worldwide (INDITEX, 2019). In this essay
different themes will be considered for organisational analysis and selection of one which has
greatest importance in organisation. At last, Critical evaluation will be done on behaviour of
company in relation to selected factor and its application.
MAIN BODY
Theoretical perspective
Theoretical perspective can be define as set of assumptions informing about reality of
questions asked and results that can be concluded. It can be look as a lens by which individual
focus on what they see and field of sociology is theoretical perspective based on different social
systems assumptions. It is important for research as it serves thoughts and ideas to make it clears
to others as well. Some of the major theoretical perspective are as follows:
Symbolic Theoretical Perspective: It is also known as symbolic interactionism theory
which is micro – level theory focuses on individuals relationships with each other. The founder
of this theory George Herbert Mead (1863–1931) states that human being interact with
meaningful things and same comes from others and society. Researcher who apply symbolic
theoretical perspective is more interested in pattern of interaction between different individuals.
The main focus of this theory is on building society for interaction and recognise patterns of
culture. Such theory uses more of qualitative research methods like in – depth interviews or
observation as they are effective in understanding symbolic subjects.
Constructivism is extension theory of symbolic theoretical perspective which states that
reality need to be cognitively construct to be. Individuals tends to develop social constructs
which are based on interactions with others. This approach focus on generating meaning from
social interaction of everyday which is social construct. The words that are used to interact have
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certain meaning for sender in communication and thus need to be understand in same sense by
receiver. This approach is applied to define and understand what is deviant in a society.
Deviances can be defined in different ways which is acceptable in the society in which
individuals lives and community from which they belong. There are many criticism of this
perspective as well like this leads to scrutinised because remaining objectives are difficult to
understand. Other is that it narrows focus on interaction which leads to use of symbols limited
and thus hinder the quality of communication. This have impact on writing as well as this theory
will suggest that interview and observation will be used for conducting research.
Another theoretical perspective is contemporary which is also known as functionalist
perspective which states that each factor in society is dependent on each other and also
contributes in functioning of society. The government or state provides educational related
services of children in the community and in return families and individuals pays taxes. In this
case families are dependent on school that they help children to get educated and have higher
living standards. It was developed by Hebert Spence (1820–1903) who believes that there is
similarities in human body and society. As all organs makes human body work together same in
case of society, various factors work together so that society functions well. Such factors of
society are institutions like government, family, religion, healthcare, economy and education.
It is also called structural – functional theory which stated that society is complex system but
interconnected where each factor works collectively as a function. Metaphor used for this is
human body where each organ work together so that whole body can functions effectively. This
has implications in writing that each and every factor needs to be analyse so that collective
functions can be understood in an organisation.
Summary table
Themes Meaning
Structure and Design Organisation structure is system which defines hierarchy level
in relation to roles, supervision, functions, responsibilities, etc.
it also defines flow of information among level of organisation
so that roles and responsibilities are clear so that efficiency can
be increased. There are two types of organisational structure
from which ZARA can choose and effectively adopt in
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company. They are centralised and de – centralised structure
which have its own advantages and disadvantages.
Organisational design includes actions to define, design and re
– structuring structure of organisation. Its main focus is to
identify defects or dysfunctionality that are present in systems,
work culture, structure and processes. ZARA need to analyse
elements of organisational design and then adopt suitable one.
Some are chain of command, span of control, centralised, de –
centralised, specialisation, etc.
Identity Organisational identity is set of statement that members of
organisation perceives in terms of distinctive, central and
enduring. Thus this reveals three criteria, are as follows:
Centrality: This implies that statement must include important
and essential features which defines characters having
significance to organisation.
Distinctiveness: this includes that identity statement of
organisation should distinguish it from other companies.
Durability: It lay emphasis on enduring nature of identity of
organisation which implies that change process is complex and
difficult to implement as it will lead to loss in organisational
identity.
This will help ZARA to put attention on specific and
quantifiable solutions so that major business issues can be
solved.
Culture Organisational culture can be define as values, assumptions and
beliefs that contributes in framing unique and psychological
working environment of organisation. It also influence
employee's behaviour, interactions, expectations and working
inside and outside the business. These are based on customs,
attitude and beliefs that are developed over – time in all the
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employees. There are different type of culture which have their
own strengths and weaknesses. Some of them are Personal,
Market, Adaptive, Power, Role, Task culture that prevails in
organisation. It is important that ZARA need to analyse beliefs
and attitude of workforce so that culture can be defined clearly.
As this will help in creating mission and vision of the company
and strategies to be effective in retail industry.
Organisational Learning,
Tacit Knowledge and
Knowledge Management
Organisational Learning is the process by which knowledge is
transferred in an organisation so that experience can be
enhanced. It is based on applying knowledge for specific
purpose so that process and results can be understood to gain
knowledge.
Tacit Knowledge is that part of learning which is acquired with
the help of experience and can not be easily transferred. This
occurs in subjective, judgement, inspiration, and intuition
which helps expertise in ZARA to have problem solving skills.
Knowledge Management is systematic planning of knowledge
in order to create value and make strategies requirements. It
includes processes, systems, initiatives and strategies that are
carried out in ZARA.
Aesthetics, Performance and
Narrative
Aesthetics states knowledge of sensory and by felt of objects
which helps researcher to find solutions of that problems which
can be defined in subjective and comprehensive way.
Performance means resultant outcomes of operations of ZARA
which are measures in relation with organisational goals and
objectives.
Narrative in an organisation is the value which extends to
telling stories in annual newsletters and reports. This will helps
ZARA in making its brand image clear and appealing.
Power and Control Power in organisations can be defined as ability to influence
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employees so that they can be motivated by managers of
ZARA to achieve organisational objectives.
Control is refers to establish and maintain authority over
functions and employees of organisation. This requires systems
to be installed in big enterprise like ZARA to be effective in
control process.
Gender Gender is term that defines characteristics which differentiate
male and female in an organisation. In context of ZARA it is
study that will identify biological differences which affects
human development.
Literature review
According to Lucy friend, organisation structure can be defined as hierarchy Of an organisation
which identify a job, function and reporting system. Organisational structure is developed so
that it established is how to operate and assist in achieving organisational goals. There are
different types of organisational structure which are adapted in order to achieve
organisational objectives. Divisional organisations of structure is applicable in these
companies well Best business units are distinctive. On the other hand geography to structure
provides type of key for company so that they can operate on different national and
international locations. Another is functional organisation shorter which is totally based on
job duties, Matrix structure on the other hand service in that organisation where two or more
supervisors are allotted for each job. There are different benefits of maintaining effective
organisational structure as it provides hierarchy so that reporting can be done to centralise
group of management. Another is an organisation software is designed in affective manner
then develop such a job description which Empowers employed to work in direction of
Growth and development for the company. It also allows scope for growth as it includes
Hierarchy level which have layers of management, division and functional areas. This
allows the business to recognise expansion strategies and have growth in sustainability
(What Is the Meaning of Organizational Structure?. 2019.).
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According to Kevin J. Ryan, organisations of the Company fine always scope for me here in an
organisation and its authority and accountability along with the relationship and external
environment of the business. On a broad basis it outlined arrangements of jobs within an
organisation that also shows operational and reporting relationships. It should be planned
and implemented for the purpose of achieving organisational goals in effective manner.
Designing and implementing suitable organisational structure will allows companies to
recognise and solve organisation issues for long – term success. There are many chances that
organisational structure is not effective when it hinders the in designing and behaviour of
employees so that they can work collectively in direction of achieving organisational
objectives. In order to bring changes in companies, business re – design and re – structure
organisational structure which creates challenges and it is lengthy process so that changes
can be introduced. Organisations need to analyse need of structure like it want centralised,
rigid, complex, flexible, de – centralised, etc. and plan their structure accordingly. There is
no effective theory or concept that can be applied and organisation can bring success by
implementing structure so that objectives can be achieved. Organisations need to operate in
different strategies, opportunities and products which have equal importance in organisation
design and structure. After recognising these elements, organisational structure is planned
and implemented so that scope of growth is identifies and expansion can be done.
In case of ZARA it is important that organisational design need to analyse objectives, tasks,
division of work, centralised or decentralised, span of control, etc. Thus it can be concluded
that effectiveness of company is influenced by organisational structure and thus it need to be
effective. In order to be effective ZARA needs to be planned systems and activities,
direction, organised and control objectives. Company’s needs to analyse division of work
among employees so that processes will be coordinated and objectives are achieved.
Critical evaluation
Organisational structure is system which helps in describing hierarchical level in the organisation
based on responsibilities, functions, rules, supervision, etc. This includes job functions,
project team, reporting structure, rules of employee, department in an organisation. It also
defines flow of information between different departments of the organisation which is
supported by effective communication so that clarity of job is there. It is effective in keeping
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morale high for workforce so that they can work efficiently and overall productivity of the
organisation can be enhanced.
This is based on foundation which are interrelated to activities of the organisation. Demonstrate
rules, hierarchy level and conditions of environment in which business operates. Not to type
of organisational structure:
Centralised structure: in this all decisions as well as processes are planned and defined by the top
management of the company. Employees are concerned only with executing and
implementing the decision so that organisational objectives can be achieved. The play
minimal rule and less participation in the process of framing strategies.
De – Centralised organisation structure: this type is concerned with taking decision making
processes with the suggestion an idea of supervisors as well. This involves lower and middle
level employees before making any decision and strategies that relates to major areas of
business. This also enhances accountability and responsibility of the workforce to provide
equal participation in decision-making.
Zara fashion enterprise has organisation structure which is decentralise which helps company to
drive it success by spreading out is business operations globally. Design, logistics, sales,
production and outsource and control is managed by in the text company. The organisation
is not in favour of the Rigid structure as it believes that flexible approach helps in integrated
and fast form of communication With the help of this structure it communicate between its
global network and different outlets that operates at international level. The advantages of
this type of structure which is followed by Zara is it helps company to serve its customer
better. Another is that that staff feels motivated as they are included in every major decision
of the organisation this also help managers to take a quick decision as you have the party to
do so. Communication is effective in every level of the organisation as they did structure is
not followed between departments as well. When a manager is equipped with responsibility
and authority will lead to enhanced supervision and control actions so that quality can be
maintained in the product of Zara and customer satisfaction level can be increased. All these
advantage lease to achieve organisational objectives as organisational structure supports it's
strategies and plans. On the other hand there are many disadvantages which can hinder the
organisational structure and can become obstacle in the bath of attainment of long-term
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goals. One of the major drawback that decentralisation structure carries is that it creates
difficulties in coordinating activities. It is an expensive Process as while making decisions in
a meeting will be called which will be including supervisors and managers so that they are
participation can be included. Decisions making can take longer time as the responsibilities
are deleted which will get difficulty in finding root cause of the issue.
Organisational structure on Zara is the flow of somebody needs of different functional
departments. It is well organised and effective structure as employees as complete
information about the reporting superior and communication flow is efficient this will help
company to improve the efficiency of overall organisation as work is easier and it will also
helps employee to be productive. In case of Zara there are more than 200 designers who are
concerned about needs of customer, clothing trends so that they can develop their product
that in the text company which on retail stores of Zara manages 70,000 stars all over the
world. It can be seen that there are a few levels of her key which means communication
effective. Is there any complaints by customer about the product workforce can immediately
work actively so that satisfaction level can be enhanced. This will help company to improve
loyalty of customers and getting sustainability the industry (ORGANISATION
STRUCTURES AND CULTURES, 2015).
That it can be concluded from the above discussion that decentralisation organisation shortages
followed and Zara which has its own merits and demerits. Bring effective communication
which help company to make a decision and motivate staff. This enhances customer services
which bring success for the organisation as well. Instead of all this advantages it brings
difficulty in coordinating activities as Roles and responsibilities are delegated. Sometime it
is needed that quick decision can be taken make on the issues that company is facing but due
to distribution of authority it can create problem in finding the route calls and the individual
who is responsible to manage all the activities.
CONCLUSION
It can be concluded from above essay that critical analysis of organisation in terms of
growth, employees and overall productivity so that sustainability can be maintained. There
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are theoretical perspectives which are set of assumptions about social systems to influence
others. There is symbolic theoretical perspective which believes that there is some meaning
in social interaction of individual. Another is contemporary theoretical perspectives which
states that each factor of society works together to make it function. There are different
factors by which it can be evaluated like culture, design, power, narratives, structure, gender,
identity, etc. In this essay organisational structure is selected so that it evaluated on basis of
importance. It is important to create work flow, implement hierarchy level and behaviour of
employees so that organisational objectives can be achieved.
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REFERNCES
Online
INDITEX. 2019. [Online]. Available through: <https://www.inditex.com/en/about-us/our-
brands/zara>
ORGANISATION STRUCTURES AND CULTURES. 2015. [Online]. Available through:
<https://jadehoang1994.wordpress.com/2015/03/18/organisation-structures-and-
cultures/>
What Is the Meaning of Organizational Structure?. 2019. [Online]. Available through:
<https://smallbusiness.chron.com/meaning-organizational-structure-3803.html>
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