The Organizational Structure Of Samsung: A Bureaucratic Organization
A bureaucratic organization is one with rigid and tight rules, procedures and policies. Bureaucracies are very organized with a high degree of formalization and centralization in the way it operates. Organizational structures exist within every department. and everyone understands who is in charge and what his responsibilities are. Decisions are made through a systematic process, and a strict chain of command and control is present at all times.
Samsung is a South Korean multinational conglomerate company founded in the year 1938. It was initially founded as a trading company and later diversified into areas of textiles, insurance, securities and retail. Samsung has grown from a modest trading …show more content…
It is essential for cost minimizing and is preferred especially when highly routine activities produce large volumes of identical products. A bureaucratic organisational structure enables efficient production through formalization and standardized operations. Division of work activities into specific departments is another important feature of bureaucratic structure. This separation also helps in cost-minimizing as employees are only specialized in one area or functional department therefore requiring less overall knowledge and talent to perform it …show more content…
This process allows managers and employees to stick to the areas related to their field of expertise. For instance, employees in the marketing department will focus on reaching marketing targets, while those in the accounting department will focus on maintaining financial data. Samsung is very high on horizontal differentiation. Organization 's work is grouped into many task specialities and there are more vertical reporting levels. The tasks are horizontally broken down into smaller tasks and the work is then carried out in the subunits. It leads to parallel processing of work, gives everyone a chance to deal with the marketplace and the opportunity to work independently. With respect to horizontal differentiation, Samsung utilizes a matrix structure. A matrix is essentially a combination of two or more organisational structures, divisional and functional in this case. Samsung groups it 's employees by both function and the product. This structure can combine the best of both separate organizational structures. The management of Samsung often group employees and use teams of employees to perform specific tasks and activities. The use of a matrix structure allows for specialization. Samsung groups employees based on the main functions of the organisation like finance, manufacturing and IT. Samsung also groups it 's employees based on specific departments or