Running head: ORGANIZATIONAL STRUCTURE PAPER

Organizational Structure Paper

MGT/230

ORGANIZATIONAL STRUCTURE PAPER

Organizational Structure Paper

A successful company is like a well-oiled machine. It is made up of many small
individual components that alone cannot do much, but when assembled together, it can be a
powerful machine. A companys organizational structure must be almost perfectly planned. By
generating an organizational arrangement, a company generates lucidity and liability for all staff.
This gives you an idea about responsibility for any member of staff functioning for the company,
particularly all stages of administration. The value of an organizational structure does not have
depends on the achievement of the employeesin the particular occupation, because a great
structure has its organizational functions and designs to fix problems. There are lots of categories
of managerial designs. Some of these configurations comprise line arrangement, line and staff
structure, and the matrix structure. Each structure is helpful to a particular kind of association,
and like the whole thing, they also have some drawback. No matter how successful a company
is, it all depends on its structure.
Costco is a $42.5 billion corporation that control extensive club provisions in seven
countries. Costco the Wholesale Company functions as a worldwide chain of association
warehouse, chiefly working through the "Costco Wholesale" that holds an excellence in product
name trade in at significantly cheaper prices which are characteristically established at
traditionalist retail or wholesale foundation. Their storehouses are utilized to help smaller sized
businesses trim down expenses in acquiring for resale and on a daily basis industry use. Folks
may also get hold of for their basic daily needs.
This Company depots presents the major and one of the most superior manufactured
goods group assortments to be established for one corporation. Grouping comprise, appliances,
candy, automotive supplies, ,toys, groceries, tires hardware, sporting goods, television, media,

ORGANIZATIONAL STRUCTURE PAPER

costume jewelry, wristwatch, books, cameras, merchandise, health and beauty aids (Hammond
Careers, 2012). Costco is acknowledged for holding crest excellence nationwide, contentment
assured, at prices constantly below conventional retail or wholesale channel (Rils, July).
BUSINESS PLAN:
Basically there are three types of structure on which organizations use to run.
1.

Traditional structure: In this structure the company follows the rules and it has
very brief position of power for special level of administration.

2.

Divisional structure: Under this category each department has their own policies
which are not necessarily valid to all other twigs of the company.

3.

Matrix structure: It is different from all other structures and under this structure
manufactured goods and task structures are mutual. However this is more
complex structure.

Costco has also arranged and divided the resources in groups as follow:

(Costco Wholesale, 2012)

The victory of this company rotates about 5 important keys.

ORGANIZATIONAL STRUCTURE PAPER

1. Exclusive and renowned brand.
2. Its merit
3. Its promotion
4. Worldwide accessibility
5. Enduring modernization.
Vision: Costco vision is to give client the best value they can and treat people right and
with respect.
EMPLOYMENT OBJECTIVES OF COMPANY:
Appoint great natives.
Treat them able-bodied
Give them best occupation
Do exact what they deserve them.
Management objectives of the company:
Constantly encourage within.
Training comes about persistently.
Cultivate our own aptitude.
Mold what you wish for from employ of yours.
OBJECTIVES OF BUSINESS:
Do not attempt too much to too many.
Identify on what stage you contend.
Recognize your clients.
Stay focal point on your trade that is core

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Organizational designlike centralized, hierarchical groups work regarding as well. These

associations declare empowerment, contribution, squad, management, faith, and the like. Then
they take fractional actions while expecting total achievement. They unshackle fraction of their
groups while restraining other parts.
Functional structure: it helps every employee to ponder on particular task. This function
has capability to patent the shape of manipulation. As miscellaneous task go in different section
so in this function customer face difficulty to grab specifically one section. Customer has to
bounce in different sections for particular problem.
Divisional structure: the benefit of this function is that everyone can easily carry its
important task to perform. As in it every department has its own sales and accounting
department. So it works. The only drawback is this function end up with lots of inadequacy as
employ in different units are working on indistinguishable tasks.
Matrix structure: this function gives flexibly to company. This function always helps the
company to meet the demand of the changing world.
Bureaucratic structure: this structure helps in executing compactly focused on course of
action and guiding principle and organizing activities for precise expected results.
Geographical structure: this structure helps the company to handle the regional issues that
rises in very convenient manner.
Product structure: this help to focus in specific product and services. This helps the
administrator to become specialist in their trade. This is more approachable to customers.
Process structure: in this structure the stream of actions are more competently influence
the company.

ORGANIZATIONAL STRUCTURE PAPER

To check out which structure suits the most to our company is inspection of your industry
function. Then utilizing the output of your inspection report you can hold your own
organizational structure. For this, one must have to make out equipped work formula for the
business.Assemble important points regarding title of the jobs, its depiction and working
relationships. Examine your business plan to figure out the most favorable work stream.
Conventionally outward appearance of making separate departments work for a long time and
help in sustainability and if the surroundings of business changes then taking up more flexible
adaptive structure works for the organization. Examine your business plan for structuring
geographic changes, product, and customer. Design your business plan to use all the resources in
best possible way and in minimum cost to get maximum output. Set up planned business entity
to smooth the progress of expansion when company raises its level and begin to grow. Lay down
a time frame for executing the organizational structure and evaluate its worth with the passage of
time to boast your business plan and company.
Costco is like a well-oiled machine; it is made up of many small individual components
that alone cannot do much, but when assembled together, it can be a powerful machine. Costcos
company organizational structure must be almost perfectly planned. They have built an amazing
company where there is function with its structure. By generating an organizational arrangement,
Costco generates lucidity and liability for all staff. This gives you an idea about responsibility for
any member of staff functioning for the company, particularly all stages of administration. There
are lots of categories of managerial designs. Some of these configurations comprise line
arrangement, line and staff structure, and the matrix structure. Each structure is helpful to a
particular kind of association, and like the whole thing, they also have some drawback. No
matter how successful a company is, it all depends on its structure.

ORGANIZATIONAL STRUCTURE PAPER

ORGANIZATIONAL STRUCTURE PAPER

References
Costco Wholesale. (2012, February 11). The Official Board. Retrieved from
http://www.theofficialboard.com/org-chart/costco-wholesale
Hammond Careers. (2012, May). Costco Wholesale Corporation. Retrieved from
http://www.hammondcareers.com/companyresearch/costco.shtml?
&lang=en_us&output=json&session-id=aada3f73aba8780bc172859035f9a234
Rils, J. (July 29, 2011). Costco Coupons. Retrieved from
http://www.forzaminardi.com/wiki/JaneyRilsNewCostcoCouponsCodes