Organizational Structure Essay

The reporting structure is a very significant tool in an organization. This structure is a chart that serves as a roadmap of management amounts and positions.

Every business has a string of control and it is organized uniquely, with regards to the organization. The structure associated with an organization, in the event that not constructed correctly may destroy the business just like a building with poor architecture. The blueprints simplify and build a very good foundation by which to increase or build an organization. Chipotle is a Philippine Grill Cafe in the junk food industry that started out with one position in The state of colorado back in 1993. Today it includes just more than 1, 4 hundred locations in america, Canada, Great britain, and France.

The structure of this corporation has had to modify and adapt to the growth from the business as time passes. Like a most of businesses and organizations the vertical organizational structure is comparable with multiple levels of pecking order. At Chipotle, the top from the pyramid is usually fulfilled by the board of directors whom have the supreme responsibility of creating decisions for the whole company (Chipotle Mexican Barbeque grill, Inc. 2010). At the bottom in the pyramid there are the store managers, assistants, switch managers, and employees completing the each day operational tasks that produces the money.

Among these two amounts there are section and local managers seeing over the various locations spread out across America and over and above. It is for this reason the lateral organizational structure of Chipotle is divisional. A divisional structure groupings units around product, clients, or geographic regions. Chipotle’s mission and commitment is to deliver great quality mouth watering food with integrity to its clients no matter where the shoppers are; consequently , the tasks in completing this goal usually do not change from store to store, district to district, or region to region.

All these regions has the same jobs, the same amounts of management within just them, as well as the same managers to report to in the chain of command. Dividing the organization into partitions based on the geographic location makes it possible for every single region to buy their ingredients locally and organically. This kind of divisional structure also permits the company to evaluate and compare the regions. This divisional structure is very different from those of others.

A practical structure can be organized in to departments in line with the business functions. In this composition each department has its own targets and duties, they are unlike that of any other department, hence the tasks in each section are different from the other person. In this kind of structure every department is created with individuals who have the expertise and experience in relation to that department. Every 1, 500 plus Chipotle restaurants are owned by same corporation.

If this was not the case plus some stores were franchised away, then a network structure will need to be produced. A network organization actively seeks ways for tasks to be completed away from the organization by simply outsourcing. A shop that wants to certificate contracts and franchises with all the company can be responsible for delivering and completing the desired goals at the specific location; these business features include administration, employment, product ordering, etc . Chipotle would be cutting a lot of expense and earning profits by adding little in exchange.

This is the major reason an organization will choose a network type of structure. The responsible party intended for the delegate function has the strength to choose whatever way they pleases to complete the duties and desired goals assigned. The divisional composition within Chipotle is synchronised by standardization and a formalization that is certainly in place. Quite simply, each level of management is extremely clear for the activities required by these people because they are usually the same responsibilities repeated again and again. Some obligations may be scheduled daily, weekly, monthly, quarterly, or every year.

Regardless of the routine they do it again like a circuit. This standardization also allows for the organization to compare and contrast studies and activities by district and regionally. The statistics and results of the reports as well as the comparisons give top management information needed to make significant decisions pertaining to the company all together or divisionally.

Each split and each business function within the company has clear techniques, and because regulations are plainly written within just policies the organization’s formal management can easily evaluate the overall performance of both equally. The divisional structure needs great connection skills. Chipotle is also a centralized organization where most decisions are generally created with the top standard of management. Managing is required to speak these decisions, goals, and tasks down to the most likely going level of administration where setup takes place. In the event that these suggestions and jobs were not disseminated correctly poor performance and failure may occur.

This may also arise if the details communicated upwards the string of command is wrong or overlooked. The marketing department depends on information about the regions in which operations occur when making decisions and completing the tasks designated to that function of the organization. Operations has the biggest effect on the organizations decisions; consequently , dividing these kinds of operations in to regions became important if the company grew larger beyond its own area. An organization need to consider the reality that specifies and details itself.

Factors like the business it performs, the size and number of workers it has, and the locations through which it encourages business will certainly determine the sort of structure needed. The success of the company depends on the framework built in the organization. Everyone in the complete organization should clearly understand the positioning they have as well as the responsibilities expected of them. An organizational chart serves exactly that goal.

Chipotle’s divisional structure roadmaps out a wide span of control exactly where fewer levels of reporting can be found. Fortunately this divisional framework has developed into well selected for Chipotle. Clearly Charlie Ells, Owner, Chairman, and co-CEO understands exactly what this individual wants and needs from his organization. This kind of reporting program has provided him a competive advantage.

And, this kind of knowledge \ him to great achievement. Once upon a time he owned a single location in Colorado and after this there are Chipotle locations world wide. Communication is useful when it is planned out correctly.