Formal Analysis Of The Organizational Structure Of IKEA

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In general, the organizational structure can be defined as the system used to draw round the chain of command inside the organization (Grant& Jordan, 2015).The organizational structure is draw guide for how the organization functions with a specific end goal to accomplish their objectives and development. The organizational structure can be reflected through the organizational chart. This essay paper will discuss the proposed organizational structure for IKEA on the light of the shifting in the concentration of the strategic to be expanding globally. IKEA is established in 1943, as a design and sells company that focus on furniture, home accessories, and appliances ("IKEA," 2012).
Thesis
IKEA apply the functional organizational structure. The functional organizational structure is a framework whereby the teams are assembled in groups in view of a specific assignments or experience (Spector, 2012).There are several functional departments that the company are structured according to them. Theses functional departments are asset management, retail and expansion, production, range and
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Accordingly, these important features enable IKEA to implement their new strategy by expanding across the world smoothly. Consequently, the hierarchy management will simplify the plan of achieving objectives, and define roles and responsibility for the individuals. Moreover, there are many management levels within the structure which suite IKEA as their chart reflects increasing in employees moving from top to down. Thus, each level is built based on the function which reflects the functional organization. Therefore, this structure draw definite path for effective communication within each function across the organization (Junichiro,

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