Learning Activity #2 Organizational Structure
Learning Activity #2 Organizational Structure<br/>Review the Purvis
fact pattern and identify the structure that Purvis currently has.
Identify the organizational structure. Does the structure fit the purpose of the company? Why or Why not? Explain in detail using the course material as support. Be sure to include in the discussion the idea of the decision making flow.
Select from the course reading three types of organizational structures that would work as well if not better for Purvis once the expansion takes place. Explain the pros and cons of each structure and determine what organizational structure would work best fit for Purvis. Support the reasoning using the course material.
WEEK THREE: The Leader as the Social architectOrganizational StructurePreface:A leader’s job is to create the direction so the company can move forward. Theleader does this in steps. Here are the steps of the process:First, the leader designs the vision and mission for the company andSecond, the leader must establish an organizational structure which promotesthe vision, mission and empowers the employees to keep the forward movementin theorganization.In creating the structure various factors must be considered.•First and foremost is the purpose of the company or organization. What type ofstructure will best accomplish that goal? Certainly a company like UPS needs asomewhat rigid structure that is set up to focus on procedure and time sensitivity.Since UPS has as its goal to get the correct parcels to the right customers in thefastest possible way, variance in procedures or ways of accomplishing the taskswould not work well. A tight delineated structure is imperative.•Along with the purpose the leader must look at the vision of the organization.Where does the leader want the organization to go? How best can the structureprovide for the future? Will the vision call for expansion into other countries orsimply call for product development changes? Does a leader plan a structurethat can easily grow in size without harming its integrity or one that focuses onthe best way to make new products? Also, vision must be built into theorganizational structure.•The people who make up the organization, their jobs and the decision makingauthority should be considered. The authority must flow and make theorganization respond favorably to the decisions and changes that are needed tomove the organization forward toward the vision while making sure stabilitycontinues to keep tasks on track. This is tricky because the leader’s job here isnot to tell the manager what procedures to use or make but rather to set up astructure and authority to make it possible for them to develop those procedures,etc.•The structure should be people centric focuses on how people will best worktogether to get their jobs done while still focusing on the vision and the necessarychange that is inevitable to keep the business alive in the 21stChange is theoperative word.•Budget is a major consideration in the present and in the future.•Finally, environment factors like sustainability and knowledge management willneed to be considered in developing the structure.Learning Activity #1: Creating a Vision and Mission StatementThe following fact pattern has an existing vision and mission statement createdby Richard Purvis of the Jordan Shoe Company before he considered anexpansion.The two statements contain mistakes and are not the best for the currentcompany now that an expansion will take place.
Students are to change the vision and mission statements to help Purvis obtainthe best design for the company’s organizational structure and culture aspossible. Be sure to explain what mistakes you see and how and why youcorrected them to make it better for Purvis using the course material as support.Richard Purvis started the Jordan Shoe Company in Boulder Colorado. Thecompany is known for its great specialty tennis shoes at moderate prices. Thecompany designs and creates fun shoes for young children, mostly girls.Catering to the age group of 1-12 years, the shoes are popular in Colorado. Theshoes have been growing in popularity and Richard is thinking of expanding intoother states. Business has grown steadily in the last seven years and thecompany’s future looks bright. If Richard expands the company he would haveto set up two plants in other states and will have to reorganize the Coloradoplant.The staff has always gotten along well because Richard has been able to keepthings on an even keel with his personality and concern for their each employee’spersonal welfare. Richard would have to find someone to take his place to runthe plant in Colorado. He wants to set in place a structure that will continue togrow the business while ensuring quality, reputation, and the happiness of itsemployees are maintained.Purvis has set up his factory with a horizontal collaborative structure. He hasfour departments; design, the production department, sales and marketing, andadministration. Each department has a manager that acts as a team head.Purvis meets weekly with all the heads together and individually off and onduring the week.Purvis currently employs a plant manager who heads the production department,which has 12 factory workers, two salesmen one of whom is the team head thatalso handles the marketing aspect of the business. The administrative head isthe general manager, and there are two office workers and a bookkeeper.Finally, the design team has three employees one of whom is the head designerwho leads the team.The cost of expansion could be done effectively if the current profit level remainsstable and that can only be done if the Colorado plant continues to run smoothly.The current vision for the company is: to produce the best children’s specialtyshoes.The mission is: to produce quality, stylish shoes that are known for theirdurability, style, and contemporary kid fashion. The “kid” must be in every shoe.Purvis believes strongly that his employees must be free to create the best shoespossible. He wants them to work together happily and with a commitment to thedevelopment of the vision. He also wants them to continue to work together asthey do now and to encourage creativity among them all and not just with thedesign department. He wants to empower them but the shoes have to becompleted and shipped promptly.Learning Activity #2 Organizational StructureReview the Purvis fact pattern and identify the structure that Purvis currently has.•Identify the organizational structure. Does the structure fit the purpose of thecompany? Why or Why not? Explain in detail using the course material as
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