MULTINATIONAL INTERNET RETAILER 5
Theimportance of organizational structure cannot be understated as faras the growth, profitability and sustainability of any businessentity is concerned. Organizational structures define the manner inwhich activities such as supervision, coordination and taskallocation are directed towards attaining organizational objectives.It may also be seem as the perspective through which differentparties or stakeholders see the organization, as well as itsenvironment. It is noteworthy that business entities are set up in acertain way as to accomplish varying goals, with their structureeither hindering or assisting in the accomplishment of theobjectives. Indeed, business entities irrespective of their size mayincrease their profits through matching their needs with thestructures used in operations. Businesses are always striving toenhance their profit making capacity, a feat that is well achievedthrough seeking ways of reducing costs or increasing their sales.Perhaps one of the most effective ways of doing this in thecontemporary human society is through the use of internet, whichenhances the convenience and ease, while also decreasing their costs.As much as a large number of businesses have gone virtual, theimportance of organizational structure is never diminished.
Ina multinational internet retailer, the most effective organizationalstructure would be the matrix structure, which is a hybrid offunctional and divisional structure. This allows for enhanced speedand specificity in meeting the needs of both employees and customers.Given that this organizational structure also incorporates someaspects of functional structure, in which case every department mayrely on the knowledge and talent pertaining to its workers andessentially support itself (Jennex,2007).Essentially, in a matrix system, every portion in the business entitywould be grouped in line with its purpose, with the departments beingunder a wider and bigger group or department (Farazmand,2002).This allows for enhanced functionality in the long-term as there issynergy between the varied departments even across the globe.
Culturaldiversity is a fundamental building block for business entitiesparticularly given the fact that most of them are supposed to operatein areas where there are people from different parts of the world,varying ages, ethnic affiliations and races. There are varied ways ofencouraging cultural diversity in the workplace. Key among them isbeing deliberate as far as the hiring practices are concerned(Farazmand,2002).Indeed, the development of a diverse workforce would notautomatically take place rather it necessitates intentional anddeliberate conduct. Hiring people of different ages, cultures, racesand ethnic groups would go a long way in enhancing diversity. Inaddition, it is imperative that the company or business entity isseen as acting fairly to all people irrespective of their culturalaffiliations or races. This would primarily involve treating peoplewith respect for the variations that make up their personality. Forinstance, respecting religious schedules and, therefore, ensuringthat no meeting is scheduled at a time when it would clash with thesame (Jennex,2007).
Further,it is imperative that leadership commitment is established anddiversity incorporated in the company policy’s fabric. The leadersin any business entity are the standard bearers for the personnelpractices, a feat that they accomplish through being active as rolemodels and coming up with policies that necessitate equal and fairtreatment for workers on the basis of gender, culture, race or evenethnicity(Farazmand,2002).On the same note, diversity should never be portrayed as a standalonerather it must be incorporated in the rules and regulations of thecompany pertaining to the hiring and promotion of the workers. Thiswould ensure that a meritocratic system is created, where workerswould be hired and promoted on the basis of their performance andmerit rather than their gender, cultural affiliations or skin color(Jennex,2007).
Thereare varied ways in which the success of the adoption of a particularstructure and culture would be evaluated or assessed in a businessentity. Key among them is by examining the turnover rates ofemployees. It is well acknowledged that a proper organizationalstructure would create the impression that the employees are valuedin the long-term, in which case they would most likely have enhancedjob satisfaction (Farazmand,2002).This causes a reduction in the turnover rates in the company. This isalso the case for business entities where diversity is encouraged andvalued, as employees would be most likely to own the organization inthe long-term, thereby having less potential for giving up on it(Jennex,2007).
Onthe same note, the performance of individual employees would beuseful in measuring the effectiveness of the structure and diversity.As earlier noted an appropriate structure and valuing diversity wouldallow employees to own the organization more, in which case theywould be most likely to give their all in the accomplishment of theirduties (Farazmand,2002).These are often tied to the objectives and goals of the businessentity, in which case an increase in the performance and productivityof the employees in both the long-term and short-term would go a longway in enhancing overall and individual productivity.
Farazmand,A. (2002). Modernorganizations: Theory and practice.Westport, Conn: Praeger.
Jennex,M. E. (2007). Knowledgemanagement in modern organizations.Hershey, PA: Idea Group Pub.