ORGANIZATION STRUCTURE
APPLICATION CASE: BEST BUY
Introduction
In an age of rapid change and increasing performance demands, organizations face the challenge of performing well and constantly changing and quickly adapting. There are really six elements that go into designing truly high performance organizations. These elements are often described as the Star Model because if you visualize a pentagonal shape with a five-pointed star, each point depicts the key features of an organization: strategy, structure, rewards, processes, and people. The glue that holds this all together is in the center of the star: the organizational culture. All points on the star are interconnected. This is an important point to understand because this shows that organizational success or effectiveness requires a good alignment or fit among all elements.
Core to achieving high performance is the firm’s strategy. The strategy needs to define the capabilities and competencies that are needed to enhance performance and responsiveness. The right strategy, however, without the right structure to support that strategy can often lead to less than optimal performance or even failure. The challenge for management is to develop an approach to organizing that considers all of the elements and how they fit together to create an organization with the right strategy, competencies, and capabilities to succeed.
Structure is how people are grouped together, who reports to whom, how tasks are assigned, and the nature of the jobs. Because these decisions are basic building blocks, they must be closely articulated with strategy. They largely determine how the organization will behave, what people are needed, and what reward systems will work.
Objective
? To gain ...