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Organization is social arrangement for controlled performance of collective goals

Organizational structure: Consists of activities such as task coordination, allocation and supervision, which are directed towards the employees, get the organizational aims. It can be considered as the glass or outlook through which individuals see their organization and its environment. Some organizations have hierarchal structures.
Work Specialization: A manager gives the task to his employees and makes the subgroups or division of labor, employees will perform better task according to their work experience and skill.
For example Honda Car Company makes the subgroups; they will divide their employees into many categories. 1st worker to design the car 2nd worker to paint the car 3rd worker to put the front and back wheel of the car another person to install the engine of the car and so on.
Advantage In work specialization workers get expert to his work and there will be rare chances of mistake.
Disadvantage By doing the repeated work again and again employees feel bored what they do.
Departmentalization In departmentalization jobs are divided into many levels. There are many types of departmentalization which are given below:
1. Functional departmentalization In this type of departmentalization group of people combine together. They perform common task that use common technology, and material.
For example HR, Finance, etc.
Advantages In functional departmentalization one function is adopted by one department.
Disadvantages There is poor management in functional departmentalization.
Communication problem will arise in functional departmentalization.
2. Product departmentalization This is a type of departmentalization in which products are divided according to the type of product.
For example Nestle company.
Advantages: Work experience will be more improved; many salesmen sell the product again and there work skill is improved in product departmentalization.
In this product department management of other functional activities is passing to manager.
Disadvantages: In product departmentalization administration cost will arise.
Another disadvantage of this departmentalization is that it cut of the department from the other parts of the process. This department may be became very extremely distributed with its individual task in its place performing arts in habits that will profit in generally production process and firms.
3. GEOGRAPHICAL DEPARTMENTALIZATION In this departmentalization grouping actions are performed on the basis of field.
E.g. Coca Cola Company has focused the company’s procedure in twice large
Geographic areas-the northern American sector and the international sector, which can be embraced the Pacific Rim, the European community, northeast Europe, Africa and Latin American groups.
Advantages: It has an advantage to get quick response of different markets.
According to geographic costs are kept low.
If there is geographical departmentalization then employees know the culture and languages of existing place through which they can deal their customers easily.
Disadvantages It has a disadvantage duplication problems will be create in firm cases.
Another disadvantage it has complex to manage across department.
4. Process departmentalization: In this type of departmentalization only one specific work is given to each unit.
5. Customer departmentalization: Departmentalization in which task and jobs are performed according to the needs and wants of customers. E.g. A cross functional team consisting of managers from accounting, finance, and marketing is created to prepare a technology plan.
Chain of command: Order in which power and authority in an organization is wielded and pass on top management to every employee at every level of the organization information flow downward along the chain of command and accountability flows upward. E.g. military is an example of straight chain of command which extend in unbroken line from the top self confidence to in ranks. This is also called line of command.
Span of control: The span of control is a word to make in organization theory, but now used more normally in business management, particularly human resource management span of control to refer the number of subordinates supervisor has.
There are two way of span of control
Tall and narrow
Flat and wide
Tall and narrow: This type of organization size of structure is tall and narrow. In tall organization there is large number of hierarchy level. This implies a narrow span of control.
Advantages: In tall organization employees can easily solve the problems because there is less burden of work.
Disadvantages: In tall organization communication problems will be arising, as decisions take time to ‘filter down’.
In tall organization same task passes through too many levels.
There may arise conflict with each others due to large level of hierarchy.
Flat and wide: This type of organization size of structure is flat and wide. In flat organization there is Small number of hierarchy levels. This implies a wide span of control.
Advantages: More chances for delegation in flat organization.
In flat organization Small number of steps on promotional ladders.
Disadvantages: In flat organization Manager may have more than one of the numbers of employees.
Growth of organization may be limit or hinder in flat organization.
Centralization: Centralization the degree to which authority for making most decision at the top level of the organization. Top level manager take the decision there will no interference of lower level of the organization in centralization. Procedures, policies and records can be standardized transition-wide in centralization.
Decentralization: The degree to which authority for making decision of all hierarchy levels of the organization.
Matrix structure: The type of structure in which an organization hold team of people make the various section of business. When team makes the specific project for any purposes they are guided by a project manager. Often the team will only exist for the time of project and structures are usually deployed to create a new products and services.
Advantages: Authorities and responsibilities can be shared among each others.
There is less conflicts among each others.
Disadvantages: If the project manager creates a project teams a lot of costs can be increased.
Matrix structure is not suitable for small organization.
Organizational culture: It is an idea in the field of management and organizational studies which can be describes the experience, attitudes, beliefs, psychology and value (cultural values and personal) of an organization. The values and norms that are shared by groups and peoples in an organization they control the path of which they can relate with each others and with stakeholders exterior of organization.
There are four types of cultures which can be below.
Power culture
Role culture
Person culture
Task culture
Power culture: Power culture is a culture in which one organization has more authority over another organization. .e.g. state bank has more authority over all the banks of Pakistan. If state bank of Pakistan takes changes in their laws or regulations then the banks all over Pakistan will follow the state bank of Pakistan.
Role culture: Role culture is a culture in which each company divide themselves into many functions and after that they give every employee a specific role. Every employee got specialized in that role which increases organization productivity.
Person culture: Person culture is a culture which emphasize on aim of organization. The target of the organization is to complete their aim. These cultures are found in those organizations which are not profit oriented.
Task culture: Task culture is a culture which is submitted to a team to perform a specific task. The task is performed according to a due date. Task culture has some benefits because an employee feels inspired because he/she is selected in team to perform a task.
Affect of organizational culture The affect of organizational culture depends upon the organization. If an organizational culture will be strong then it will make every employee to work hard or to become more efficient. It includes workers, staff, CEO Etc. some people get bored while doing their job which can affect the organization. By having strong culture it creates the enjoyment in job which leads to do more effort. Organization culture helps the employee to keep them on top; if the workers are satisfied according to the culture of organization then they won’t leave the job, which leads to stay in their own organization. A strong organizational culture attracts more talented people towards itself. So if the organization culture will be strong then it will create positive affect and if it is weak then it will be negative.
Affect of organizational structure the structure of an organization is important to the performance of the organization.
Two basic features of an organization structure are its width i.e. spans of control

How to Succeed by Selling Just One Shoe

Due to nature of its operations, Nordstrom can be categorized as a departmental store. During its set up, Nordstrom was a shoe retailer shop but has over the years grown to stock a variety of products among them clothing, jewelry, handbags, cosmetics, furnishings among others. The latest addition to its chain of stores is the acquisition of restaurants. The fact that Nordstrom has been able to achieve customer loyalty over the years has largely attributed expansion. Even in its expansive nature, Nordstrom still shares a number of similar characteristics with other departmental store retailers. For example, departmental stores deal with durable goods and in this case, Nordstrom stocks jewelry, shoes clothing, and cosmetics among others. Departmental stores also have the characteristics of having a chain of stores where in this case, Nordstrom has stores in both Canada and the United States.
Nordstrom has over the years evolved in business strategies. This has been brought about by its expansion leading to a change of structure in the way the business is operated, for example, centralizing management of stores and adoption of customer self service which has enhanced efficiency. Services were changed from full service to self-service because of the increased number of customers flowing in and out of the stores because sizes of the single stores have grown in size over the years. Change to self-service has helped to increase revenue because customer service is now more efficient. It has also helped greatly in increasing customer freedom, which has in turn led to greater customer satisfaction. The company’s operational cost has also been cut down significantly and thus increased the company’s profits since fewer attendants are needed as opposed to when they ran full service.
A store that is quite similar to Nordstrom is the Neiman Marcus. This store deals with products that are similar to those at Nordstrom and share marketing similarities with Nordstrom. It also has various chain stores within the United States. There are however very many differences between the two stores. One is the nature of goods they deal with. Neiman Marcus largely deals with hardware goods and luxurious jewelry as opposed to Nordstrom, which deals with clothing and shoes. The types of social responsibilities that they engage in are quite different as Neiman Marcus engages in very expensive offers to the society and this has largely affected its profit levels.
Nordstrom has a retailing mix that has largely contributed to its success. The most important one is the effort that the management has put towards attracting and maintaining customers. Nordstrom uses advertising that has fed customers with full information on the type of products that Nordstrom offers. Nordstrom’s advertisements are constantly run in media houses and on the web and therefore customers always have full access to the information on Nordstrom’s products.
Another strategy that Nordstrom has adopted is the analyzing of barriers between its sales channels that were limiting sales opportunities. These barriers included non-alignment of the mail orders the online store and the in-store. It is for this reason that Nordstrom decided to align all these stores so that whatever customers could get on the online store, they could also get the same from the in- stores and from the mail orders.
The company has also refused to hop on the price-promoting bandwagon where they promote regular pricing. The company’s management does not believe in promotions and sales but rather on regular pricing. They strive to achieve customer experience that is “inspirational and upscale” according to Eric Nordstrom.
Another strategy that has seen Nordstrom grow over the years is focusing on the right customers and striving to keep the customers coming. This has been done through keeping in contact with the customers over the years and making follow-ups on the customers. Their sales representatives also make a point of calling their old customers when they bring in new merchandise. According to them, they run the company ‘by heart’. Nordstrom is also known to have a generous exchange policy where they accept back any merchandise that has been purchased from Nordstrom within 30days if the product has not been worn or altered in any way. They also accept to exchange these products.
Another important strategy in Nordstrom retailing mix is the willingness to change according to customers’ needs and evolving with the markets for example, the introduction of the online stores and evolving from full service to self-service. They have also adopted a computerized inventory system that has made it easier for the salespeople to make smarter decisions about what is needed in the stores. The computerized inventory system has helped to sell more items at full price and therefore improved the bottom line.
In the current retail market, Nordstrom faces numerous challenges, the major one being fierce price competition among the major department stores. Most department stores realize that the only way they can win and retain their customers is not only through exemplary customer service but also through introducing and retaining prices that customers consider low and/or fair.
Another challenge that Nordstrom faces is their expansion strategy that has led to opening up of many stores. Management of these stores though centralized is hard work and trying to maintain high levels of customer service at all these stores is also very hard and requires high levels of coordination and supervision by the top management of Nordstrom.
There has been increased competition in the retail market and Nordstrom has been forced to keep their prices relatively low as compared to their competitors. They are also needed to strengthen their value proposition to consumers (Merrick, 2001). Another major problem facing Nordstrom is working with emerging markets. This is because some of the local and custom laws from some countries are not consistent with Nordstrom’s Fair Employment Practice Policy. The laws affect rights to collective bargaining and rights of women to work freely. It is therefore difficult when deciding upon the most appropriate approach to enter into new markets without creating conflict.
Over the recent years, competition for Nordstrom has significantly changed. One of the most significant competitions that Nordstrom faces is the emergence of open air power and lifestyle centers within communities. Consumers are therefore shifting towards these centers, as they are more convenient than the shopping malls where Nordstrom shops are mostly located. There is also a greater tendency of shopping online and this will therefore reduce the one on one customer service that Nordstrom has boasted over the years.

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