1. QUESTION 1.1
a) A brief definition of organization structure could be" the framework in which the organization defines how tasks are divided, recourses are deployed , and departments are coordinated". (Daft,2006, p.350).
At IKEA site (IKEA /GB/EN, 2015) in the part of organization there are the titles of the leaders of IKEA and it obvious that IKEA follows a functional differentiation because there are departments of Retail and Expansion, Human Recourses, Range and Supply, Sustainability, Corporate Communications and Ikea industry. Furthermore in the next page of this link, there is a table of the Ikea Group where are mentioned the main departments which are separated on similar skills and jobs such as Production, Range and Supply , …show more content…
From the above I believe that IKEA has a Vertical Function as its Structural design is based on departments with similar skills and tasks.
b) In my opinion the success of the IKEA depends on its brand name and in its products which are affordable and reliable. The functional organizational helps to this direction because there is one design group and all the products have a clear identity. In this type of organizing the decisions and the policy are set by the top management and this is this why all the departments of IKA have the same philosophy and the same service. Last but not least, functional organization helped IKEA in creating economies of scales , which is very important for the company as it is mentioned in its own site "investing in highly automated production and producing large …show more content…
This article from McKinsey Quartely (2015) emphasizes in the danger of taking wrong decisions because of confirmations and overconfidence biases. The first is that people tend to focus on what is compatible with their beliefs, experiences and knowledge whereas the latest is to misjudge their abilities and the capabilities of the business. The three basic stages of control is setting standards, checking on performance and taking corrective actions(Mihiotis,2005, p.124). The decision - making checklist could be potentially be used in every each of the three stages of control. Firstly in the planning , because people tend to repeat solutions that have worked before or to suggest solutions according to their beliefs. The implementation of the checklist could secure that more people have participated in the problem, therefore more suggestions are put forward, and that they have considered possible disadvantages of their proposal and they have examined and other alternatives. Secondly, where the performance is checked, people may not be able to admit that their proposal had drawbacks or they could be looking for information that justify their choices. The use of the suggested check-list with the participation of other people could offer a better control. Finally, when action is required in order to handle the deviations from the plans
a) A brief definition of organization structure could be" the framework in which the organization defines how tasks are divided, recourses are deployed , and departments are coordinated". (Daft,2006, p.350).
At IKEA site (IKEA /GB/EN, 2015) in the part of organization there are the titles of the leaders of IKEA and it obvious that IKEA follows a functional differentiation because there are departments of Retail and Expansion, Human Recourses, Range and Supply, Sustainability, Corporate Communications and Ikea industry. Furthermore in the next page of this link, there is a table of the Ikea Group where are mentioned the main departments which are separated on similar skills and jobs such as Production, Range and Supply , …show more content…
From the above I believe that IKEA has a Vertical Function as its Structural design is based on departments with similar skills and tasks.
b) In my opinion the success of the IKEA depends on its brand name and in its products which are affordable and reliable. The functional organizational helps to this direction because there is one design group and all the products have a clear identity. In this type of organizing the decisions and the policy are set by the top management and this is this why all the departments of IKA have the same philosophy and the same service. Last but not least, functional organization helped IKEA in creating economies of scales , which is very important for the company as it is mentioned in its own site "investing in highly automated production and producing large …show more content…
This article from McKinsey Quartely (2015) emphasizes in the danger of taking wrong decisions because of confirmations and overconfidence biases. The first is that people tend to focus on what is compatible with their beliefs, experiences and knowledge whereas the latest is to misjudge their abilities and the capabilities of the business. The three basic stages of control is setting standards, checking on performance and taking corrective actions(Mihiotis,2005, p.124). The decision - making checklist could be potentially be used in every each of the three stages of control. Firstly in the planning , because people tend to repeat solutions that have worked before or to suggest solutions according to their beliefs. The implementation of the checklist could secure that more people have participated in the problem, therefore more suggestions are put forward, and that they have considered possible disadvantages of their proposal and they have examined and other alternatives. Secondly, where the performance is checked, people may not be able to admit that their proposal had drawbacks or they could be looking for information that justify their choices. The use of the suggested check-list with the participation of other people could offer a better control. Finally, when action is required in order to handle the deviations from the plans