Organizational Structure Interview

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Organizational Structure Interview

Organizational Structure Interview

Koffee Kake is a small coffee shop located within my community that sells coffee and pastries and had a small lunch menu. The Koffee Kake was opened in 2007, currently employs 14 part time employees and has annual sales of approximately $500,000. This small business was selected because it has grown and thrived over the years even though they must compete with a nationally recognized coffee shop that is located just a few miles away. The Koffee Kake operates in a very informal manner with the official authority coming from one centralized source but the day to day operations being very decentralized. Things such as discipline and schedules come from the head of the organization but decisions for customer service are left up to the individual employees. They are also able to collaborate together to come up with specials for the day and sales promotions. The organizational structure resembles a selective vertical and horizontal decentralized organization “where the power over different decisions is dispersed to various places in the organization” (Mintzberg, Lampel, Quinn, Goshal, 2003.) This organizational structure has been very effective so far in that the employees are empowered to make changes quickly to correct issues with customer service or sales. This can have the negative affect from time to time of their being unclear span of control within the organization, which can lead to struggles for the informal power that exists and this creates tension. The tension is due to their being a conflict between the management and leadership strategies that exists amongst the formal and informal leaders of the organization. The leadership theory that is practiced within the organization is the contingency theory. The leaders adapt the approach to the situation. This has enabled the leaders, who are not management, to be very effective at reacting to changes and problems...
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