Monday, September 23, 2019

Impact of Changes on Target Companys Structure Assignment

Impact of Changes on Target Companys Structure - Assignment Example Jones postulates that the organizational structures are two in kind, namely: mechanistic structure and organic structure (209). Wei, Liu and Harden postulate that the degree to this subdivision of jobs is the work specialization in the organization (19). Securing and Goldbach refers to the term centralized as â€Å"the concentration of authority and responsibility for decision making in the hands of managers at the top of an organization’s hierarchy† (214). In other words, Kumar and Bhat describe the term centralization in an organization as â€Å"the degree to which decision making is concentrated in a single point† (346). The degree of decision making concentrated in numerous points shows decentralization in an organization (Applebaum & et.al., 2008). The Target Company has a mechanistic organizational structure. It has a high level of specialization which allows it to divide the jobs into significant groups. The work specialization requires that each person should be placed according to his/her qualifications and experience to ensure a maximum level of specialization in their work. Each department has been allotted different work that is not given to the other department in the organization (Ouchi, 1977). The answer to this question is that all stores of the company are centrally controlled through a centrally located center for every region. Target Company has a mechanistic structure that allows it to have a centrally located center that has the highest degree of decision-making power to control all the stores located within its jurisdiction. The answer to this question is that the change in the company structure through the incorporation of a grocer sector in Target Company will positively impact its vertical and horizontal aspects. Previously, the Target Company had a focused company strategy to have 5 self-managed teams (an i.e. horizontal aspect of the company structure). Furthermore, the horizontal aspect of the company structure  included decision making through consensus and voting. Dries and Swinnen argued that vertical and horizontal spillover effects produce improved quality of product and significant growth of small and medium suppliers (1525).  

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