The creation of hierarchical systems within corporations and corporate organizations is a key step forward. Organizational frameworks allow the division of labor into specific categories with objectives to be focused on (Cummings & Worley 2014). This makes it possible for the different divisions assigned to them within corporations or company firms to accomplish their objectives and, subsequently, to proceed into the implementation of the tasks of these organizations (Stanford 2013). In addition, the establishment of the systems outlines a consistent monitoring process and a well-organized supervision policy that guarantees that all levels of hierarchy are responsible for the actions they carry out (Knowles 2007). “This paper seeks to provide an understanding of the organization structure of Bata Shoe Company and how it affects the companys operations.
Background of Bata Shoe Company
Bata Shoe Company derives its name from its founder Tomas Bata. Bata established the company in Zlin, the Czech Republic in 1894. The company became the first to roll out mass shoe production in Europe (Moravcikova 2004). Bata Shoe Company is part of the retail and manufacturing industry that serves Europe, Africa, Asia and Latin America. Its current headquarters is in Lausanne, Switzerland. Organized into three business units: Bata Europe, Bata Emerging Market, and Bata Protective; the company estimates to serve approximately one million customers daily, employing more than 30,000 workers and operating up to 5,000 retail stores across the four continents (Knowles 2007). The company owes its success to a proper organizational structure.
The hierarchal diagram below shows the basic organizational structure of Bata Shoe Company
The proprietor of the Company has the mandate of laying down the strategies for carrying out the business of the day for which he calls upon a team for assistance (Cummings & Worley 2014). He or she is the chief administrator of the firm errands of the company and approves of the plans and ideas brought forth by the rest of the employees to step up the quality of services the company provides to its customers (Stanford 2013). Moreover, he appoints the committees that interview, vet, and orient new employees. The proprietor also plays a vital role in giving the company a unique identity. For example, Tomas Bata the founder of the Company named it after himself and introduced the prices ending with nine instead of a whole number; both are unique aspects of Bata Shoe Company (Knowles 2007). The proprietor is the companys representative in business meetings where treaties and agreements are signed on behalf of the enterprise.
The manager is appointed by the company proprietor and plays more of an administrative role contrary to the owner who has some ceremonial duties (Knowles 2007). Together with the rest of the team, the manager is supposed to champion the vision and mission of the company. Also, the manager is charged with drafting a strategic plan for the expansion of the business premises and the application of new business tactics for competition (Cummings & Worley 2014). In consultation with the proprietor, the manager sees to the implementation of these plans. The manager is also the second overall supervisor of the company affairs as well as the second highest rank in reporting.
Since the company has two major domains; manufacturing and retailing, the directors in charge of the two areas have an important role to play (Stanford 2013).The supervisors need to work corporately to understand and blend with the tastes of the customers. Manufacturing supervision entails ensuring efficiency of the manufacturing plants, availability of enough employees and maintaining the quality of products through statistical process control measures (Knowles 2007). Retail supervision encompasses ensuring the customers are impressed with the services and products offered at the stores, forecasting on the market trends such as demands and prices and establishing sales promotion programs.
In the organizational structure, there is a slot for eight employees. These workers constitute the primary administrative outline in the companys outlets (Knowles 2007). They comprise a managing director and heads to the merchandise department, marketing department, product development department, manufacturing department, cost and efficiency department, human resource department and the accounts department. These are concerned with running the day to day activities of the company and interacting with the customers (Cummings & Worley 2014). They are in charge of the management of the business firms they belong to suit the needs of the customers they serve.
Differentiating the Organizational Structures
The organizational structure utilized by the Bata Shoe Company is the hierarchal model (Knowles 2007). The other organizational models in place include the flatter, flat, flatarchies, and the holacratic structures. At this point, it is important to understand the distinctions between the hierarchal organizational structure and the flatter and flat models (Stanford 2013).The differences are based on the size of the companies managed the objectives of the corporations and the work environment each of the businesses hopes to achieve.
To start with for a company that wishes to maintain its status quo, the hierarchal organizational model is ideal. The system ensures information trickles down from top to bottom on how the affairs of the business ought to be run (Cummings & Worley 2014). It acts as an impediment to the intrusion of foreign ideologies that could divert the vision and goals of the company. That has been the case with Bata Shoe Company from its founder Tomas to the grandson Thomas (Moravcikova 2004). The objective of Tomas was to make the company a public investment that would see to the satisfaction of community by getting products that match the money they pay regarding quality and durability. Courtesy of the hierarchal system, this dream has lived to date. On the contrary, the flatter model advocates for a counter communication system which could lead to a compromise of standards and status quo for new ideas that could not be in sync with the initial aims (Stanford 2013). The flat model is founded on the principle of no ranks and chains of command. This model leaves the employees to decide what they can do for the company, how and when. The idea is not appropriate for a large corporation that has a focus like Bata.
However, the relentless application of the hierarchal model has its limitations. The employees are supposed to comply with the demands of the company even at the expense of their passion for applying their skills in the work environment (Cummings & Worley 2014). This kind of restriction is likely to jeopardize the chances of innovation within the company which could be a blow regarding competition within the industry. The flatter organizational model could come in handy as it allows for communication flow from both the employer and the employees (Stanford 2013). In essence, it permits the consideration of the new business ideas and allows the employees to implement the company policies in a manner convenient to them and that which suits the customers (Knowles 2007). Nonetheless, the flat model cannot be applied to large enterprises, and more is that it exhibits some elements of anarchy that do not augur well with a business that has timelines for bringing its goals to fruition.
Effects of Organizational Functions on the Organizational Structure
Organizations have different roles that they need to adhere to in the course of their daily endeavors. These services include marketing, finance, human resources, and operations management (Stanford 2013). Bata markets its products online and even physically through posters and their conspicuous logo. Since the business deals with the handling of money in the form of payment for goods by the customers, payment of employees salaries among others, it is prudent to have a department within the company that deals with finances (Knowles 2007). The workers need motivation and training to keep up with the demands of their duties. For this reason, there needs to be a department to see into the welfare of the employees to enhance worker satisfaction and productivity. Moreover, the company deals in goods that have a broad market scope and the company have established its outlets across various continents (Moravcikova 2004). Therefore the inception of an operations department to oversee the businesss activities and make necessary adjustments that will maintain the companys status in the industry is invaluable. Consequently, the establishment of the various departments to handle different aspects of its functionalities and the necessary cooperation between the departments necessitates a hierarchal organizational model.
Organizational Design and Its Effects on Organizational Structures
Organizational design is a sequential methodology that isolates dysfunctional aspects of workflow, procedures, structures and systems; molds them to suit the prevailing business trends and then establishes strategies for the implementation of the new ideologies (Stanford 2013). Different factors are used in the determination of the organizational structure at work in any given organization. These factors include the geographical scope of the business, the customer base, the market targets, the products and services offered and departmentalization (Cummings & Worley 2014). Additionally, an amalgamation of one or two of the factors breeds the hybrid structure while modification of the reporting channel gives the matrix structure. Bata is a global company that has established its branches in a diverse geographical setting with headquarters and a fully-fledged management in different areas (Knowles 2007). The customer base for the company is broad comprising of people of different culture, age, gender and social status. The company has succeeded in supplying the needs of their customers despite the fact that it has not been considered a pertinent issue to incorporate in the organizational structure.
The market targets include the games and sports industry, industries purchasing working gear for their employees, the poor and the rich altogether (Moravcikova 2004). Bata has furnished its shops with products fit for every person without the need of segregating different teams to attend to particular groups. The application of the hybrid model of organizational structure came as a result of the Second World War (Knowles 2007). Some of the countries in which the company had put up its branches decided to nationalize them. It prompted the overall management to seek collaboration with the governments in the running of the affairs of the company. Besides, the company needs the consent of any country before establishing a branch in that country apart from deliberating with the government on the prevailing trade policies and their impact on the company (Stanford 2013). That notwithstanding, the company still exploits the hierarchal organizational model to run its errands.
Organizational structures are varied, and each company applies one which suits it most. The hierarchal, flatter, flat, flatarchies and the holacratic models have their befitting situations considering the size of the company and its objectives for existence. Bata employs the hierarchal organizational model due to its size and the nature of its goals of giving the best to the society for what they have. In spite of this fact, it includes some adjustments to the system through the granting of autonomy in decision making to some branches far away from the headquarters as well as incorporating their ideas in decision making. Moreover, the company exercises the hybrid model to bring on board the governments in the countries where they carry out trading activities. Considering factors such as the market orientation, the customer base and products and services it offers, Bata Company still believes in departmentalization as an ideal way of setting up its organizational structure. It has indeed seen the company maintain its reputation and focus in the business industry. Many people in the four continents where the corporation is found associate shoes with Bata. That was the dream of the founder.
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