A Case Study on Organizational Structure and Design: Academic Paper

Business Studies

Read the article titled “Hiring the Very Best,” by Tracy Mullin (2005). Based on the article, consider the approaches to organizational structure and design. Analyze the effects and applications of the various organizational structures and levels of authority. Given the benefits and motivations mentioned in the article, share an analysis of the referenced company’s impact […]

Organizational Structure and Design: An Analysis

“Motivation is the art of getting people to do what you want them to do because they want to do it.” With these words, Dwight David could not better explain the significance of motivation, especially in the workplace. Every successful organization has a team of motivated employees that appreciate the corporation’s success. Employee happiness and motivation is a significant factors in company success. Organizational leaders find it hard to motivate employees to perform their duties effectively. Numerous approaches are applied to ensure employees are encouraged depending on the specific leaders’ abilities and company policies. Over the years, professionals have agreed that customary strategies no longer function in the current world. Therefore, the article has illustrated different methods Best Buy and Costco use to propel their employees’ motivation and performance.

According to the article, Best Buy has adopted an approach that allows employees to perform their duties whenever and wherever they want as a motivating factor. Most employees have already supported the new strategy since it reflects their needs. According to Mullin (2005), the best way employers would retain their employees is by learning about their needs and what would drive them to success. The strategy adopted by Best Buy is said to have improved production and reduced turnover in the firm. According to the entity’s managers and executives, the program is working. Costco retailers have opted to fulfill the needs of their employees by filling money into their pockets as a motivating drive. Their employees receive good hourly wages when there is a robust organizational structure and health benefits. Perhaps, this approach is why the retailers have maintained a low turnover.

Organizational structures are divided into centralized and decentralized organizations. The centralized organizational structure framework is unsuitable for large organizations as it dominates authority taking no account of the employee’s thoughts and ideas (Zabojnik, 2002). The best employees are not attracted to these kinds of businesses their creativity is undermined. Besides, they do not get an opportunity in decision-making. Employees’ authority level in these centralized organizations is low; therefore, employees’ emotional attachment to their work is low due to the closed engagement structure. In a decentralized organization structure, the level of authority is equally distributed to every employee. These types of organizations give room to creative working and increase interpersonal and conceptual skills that are key in enhancing teamwork and growth.

Retailers such as Best Buy and Costco use different approaches in their organizational structure to motivate, comfort and give morale to their employees. For instance, Best Buy allows their employees to work whenever from wherever they might choose. This strategy has had a positive impact as the retailers have reported a low turnover besides the positive comments about the program. The approach has also motivated the employees, reducing inconveniences and increasing productivity. Other retailers like Costco pay their employees enough money per hour to cater to their health needs.

Consequently, the approaches have motivated employees to work for the organization, ensuring high production, increased commitment to their jobs, and enhanced quality of work. Employers should always understand that employees must be motivated and work in a conducive environment. This discernment ensures that both the needs of the employee and employer are met, benefiting both parties.







Mullin, T. (2005, October). Organizational structures and hiring the very best. Chain Store Age, 81 (10), 34.

Zabojnik, J. (2002). Centralized and decentralized decision-making in entities that need an organizational structure. Journal of Labor Economics, 20 (1), 1-22.



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Published On: 05-12-2017

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