The above case is similar to many MNCs (multinational companies), which open its

Question

The above case is similar to many MNCs (multinational companies), which open its outlets in many countries which could be for similar product lines or may be little different. Let's assume that company (a boutique) has grown in locations and has opened multiple service centres across the country or state. Considering this expansion, a lot of organizational changes would be required to manage the entire operation and employees. If multiple boutiques differ in its services or functions then reorganization would be based on the function or services while keeping the geographic location as a common factor.

As per new re-organizational chart, CEO or owner of the boutique would be the highest ranked position and all the employees would be reporting to CEO either directly or indirectly. The further matrix can be understood as per below organizational chart.

Top level    CEO

second level- VP of functional unit A VP of functional unit B   VP of a functional unit C

3rd level Line managers of the respective units

4th level Deputy managers reporting to respective managers of particular unit

5th level Employees working on the shop floor

This overall structure would be centralized so that any strategic decisions and its ownership can be given to the top decision making authorities.

Explanation / Answer

Imagine your company (a boutique) has grown substantially, and you either have grown in your current location, have added locations, or have added an internet component to your company. You now have multiplied your number of employees, and you need to come up with some reorganization. Discuss how you will structure the company based on its expansion. Provide a graphic depicting the new organizational chart. Will you structure according to function, division or geographic location? Will you have a vertical or horizontal organizational structure? Will the structure be centralized or decentralized?

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