Organizational Structure

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University of Phoenix
MGT 230
Rafael Mendoza
11/28/2012
A company’s organizational structure can determine how effective its management department will be in implementing and executing company decisions. Without a great structure the company may lose its finances, by being inefficient. With that in mind, a company’s organizational structure is geared towards making the company more efficient and successful. UPS like all major organizations has to keep their organizational structure with the times in order to stay productive and successful. I will explore the organizational structure implemented by UPS, and compare it to two other structures. I will evaluate how organizational functions influence UPS’s Organizational structure. Lastly, I will explain how organizational design can help determine which structure is best suited for UPS. After exploring these factors of UPS as an organization, I am sure you will have a deep understanding of why organizational structures are crucial to a company’s success.

UPS is a large global operation that was started by two young friends that wanted to start a messenger service. Things have definitely changed since the company started in 1907. UPS has had to change its organizational structure over time because of the rapid growth in technology and employees. Today UPS implements a centralized organizational structure. In this structure UPS has implemented a centralized management committee, the committee makes all major decisions for all UPS regions. They then send the decision to the regional manager in order to implement the decision. Next each branch’s manager needs to initiate a plan of action in order to implement the decision within their own facility. In contrast, if UPS were to be decentralized the company’s reputation could be at risk. Each regional manager could implement their own ideas of how business is to be conducted. Not conforming to UPS’s policy could cause some branches to be viewed...
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