Phase 2 Individual Project - Organizational Structure

Topics: Corporate governance, Chief executive officer, Management occupations Pages: 5 (1123 words) Published: February 25, 2013
December 3, 2012
Phase 2 Individual Project-
Organizational Structure

Organizational Structure is necessary to run any company effectively and efficiently. There are six key elements that a company should be following for success and those elements are as follows: I. Specialization of Work

* The use of special skills so that one job is not done by an individual but by a group of individuals to complete the tasks. II. Chain of Command
* Refers to a continuous line of authority from upper levels to lower levels with clarification on who reports to whom. There are three concepts that are a part of this element and they are as follows: * Authority

* Responsibility
* Unity of Command
III. Span of Control
* Very Important Key element as it determines the number of people one manager can manage as well as the number of levels and managers an organization has. IV. Centralization and Decentralization

* Centralization is more specific to upper levels making the decisions. Decentralization is geared toward the lower levels making decisions. V. Departmentalization
* The basis of job grouping in which every organization has a specific way of classifying and grouping work related activities. There are 5 common forms as follows: * Functional
* Geographical
* Product
* Process
* Customer
VI. Formalization
* How organizations jobs are standardized and employees are guided by rules and procedures.

The organizational structure that I chose to apply to my company, Best Buy is the Distribution of Authority also referred to as Centralization or Decentralization. Most organizations are neither one of these key elements as they use both aspects of it to balance it out. Best Buy is no exception; they are a more centralized structure however, their information cascades from the Board of Directors to Store level employees. Best Buy has a Board of Directors that is elected by the shareholders to oversee their business and affairs. The Board not only counsels the management but advises and oversees the company’s long term interest. Next you have 4 committees under the Board of Directors that consist of the members that focus on specific areas. Then you have the Corporate Officers that the Board has selected, and last but not least is the Store Related Management.

The Board of Directors consists of the following:
* Hatim A. Tyabji
Chairman of the Board
* Lisa M. Caputo
The Travelers Companies, Inc.
* Kathy J Higgins Victor
Centera Corporation
* Ronald James
Center for Ethical Business Cultures
* Hubert Joly
Chief Executive Officer with Best Buy
* Sanjay Khosla
Kraft International Commercial
* G. Mike Mikan
UnitedHealth Group (Former)
* Matthew H. Paul
McDonalds Corporation (Former)
* Gerard Vittecoq
Caterpillar, Inc.

The 4 committees are as follows:
* Audit Committee
* Compensation and Human Resource Committee
* Finance and Investment Policy Committee
* Nominating, Corporate Governance and Public Policy Committee The Corporate Officers are as follows:
* Hubert Joly
* Jim Muehlbauer
Executive Vice President-Finance and CFO
* Shari Ballard
President, International-Enterprise EVP
* Stephen Gillett
Executive Vice President and President-Best Buy Digital and Global Business Services * Christopher KK Gould
Vice President, Treasurer
* Susan S. Grafton
Senior Vice President, Controller and CAO
* Keith Nelsen
Executive Vice President, General Counsel
* Carol Surface
Executive Vice President, Chief Human Resources Officer
* Mike Vitelli
President, United States – Enterprise EVP
There are over 1400 locations, too many to name all the Store related Management. Shareholders|
Board of Directors|
Board Committees|
Corporate Officers|
Store Related Management|

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