April 30, 2013
Organizational structure is the hierarchy of arrangement of authority, communications, rights and duties within an organization. It also determines how information flows between the different levels of management. The structure that a company decides to go with will be based on what the organizations strategies and objectives are. Each type of organization will have a different kind of structure, functions that influence the organization, and design that helps determine the best structure for the company. Based on what type of structure they choose to run the company with, it will be a big factor in determining how successful the company will be. Nike is among one of the most well-known and prosperous companies in the world. They are affiliated with almost, if not, every sport out there today. From football to golf to mixed martial arts, they have managed to almost completely dominate the sports wear and product industry. They have continued to innovate and improve their products beyond their fellow competitors, making them the most desired brand in sports wear today. In a flat or matrix organization, like Nike, it allows departments to make decisions independent of the CEO. Each department also has sub departments that are responsible for any mini tasks within their department. The matrix structure emphasizes teamwork and breaks tasks down into separate teams or departments. This is the best structure for Nike to use compared to a functional or divisional structure because it allows for faster decisions to be made by product managers, where as traditional department heads (functional or divisional) are removed from the frontline therefore taking longer to move forward in the project at hand. Seeing that Nike is in direct competition with companies from all around the world, it is crucial for them to have this type of structure because it...
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