Organizational Function of Management
Organizational Function of Management
Organization follows planning in the hierarchy of the functions of management. This is where financial and physical resources are combined to achieve desired results. Key leadership achieves organization with the help of the following steps: identifying activities, departmental organization, delegation of authority, and establishing responsibility. Organization also involves attracting qualified personnel to the organization, collecting and assigning resources and creating an environment where all major departments and components of an organization can co-exist and achieve optimum success. Of the four functions of management, this is the most tedious and time-consuming. This paper will explore the organizational structure of Best Buy and how well they manage their human resources. The paper will also explain how Best Buy maintains its technological advantage over its competitors. In 1966, Richard M. Shulze and his partner, James Wheeler established Sound of Music, Inc., an audio specialty store in St. Paul, Minnesota. In 1971, Shulze bought out his partner and began to expand the operation. Up until the early eighties, Sound of Music’s product offerings were limited to home and car audio components. A weeklong management seminar in 1981 was an epiphany for Shulze. He realized he needed to expand his product line and target an older and more affluent demographic. This new line of thinking began to bear fruit as the company reported $9.3 million in 1982. In 1983, Sound of Music Inc. officially changed its name to Best Buy Co., Inc. The following year, Shulze implemented the superstore format and captured 42 percent of the local market share. Best buy was taken public the following year, raising $8 million dollars through an initial public offering (IPO). In 1987, the company earned its own listing on the New York Stock Exchange (NYSE). Best Buy’s organizational structure consists of the CEO and Co- Presidents in charge
Organization follows planning in the hierarchy of the functions of management. This is where financial and physical resources are combined to achieve desired results. Key leadership achieves organization with the help of the following steps: identifying activities, departmental organization, delegation of authority, and establishing responsibility. Organization also involves attracting qualified personnel to the organization, collecting and assigning resources and creating an environment where all major departments and components of an organization can co-exist and achieve optimum success. Of the four functions of management, this is the most tedious and time-consuming. This paper will explore the organizational structure of Best Buy and how well they manage their human resources. The paper will also explain how Best Buy maintains its technological advantage over its competitors. In 1966, Richard M. Shulze and his partner, James Wheeler established Sound of Music, Inc., an audio specialty store in St. Paul, Minnesota. In 1971, Shulze bought out his partner and began to expand the operation. Up until the early eighties, Sound of Music’s product offerings were limited to home and car audio components. A weeklong management seminar in 1981 was an epiphany for Shulze. He realized he needed to expand his product line and target an older and more affluent demographic. This new line of thinking began to bear fruit as the company reported $9.3 million in 1982. In 1983, Sound of Music Inc. officially changed its name to Best Buy Co., Inc. The following year, Shulze implemented the superstore format and captured 42 percent of the local market share. Best buy was taken public the following year, raising $8 million dollars through an initial public offering (IPO). In 1987, the company earned its own listing on the New York Stock Exchange (NYSE). Best Buy’s organizational structure consists of the CEO and Co- Presidents in charge