Organizational structure preface
Course:- Management Theories
Reference No.:- EM13944173

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Organizational Structure Preface:

A leader's job is to create a direction for the company to move forward. After setting the vision and mission for the company the leader must establish an organizational structure that promotes the vision. Various factors must be looked at in creating the structure. First and foremost is the purpose of the company or organization. What type of structure will best accomplish that goal?

Certainly a company like UPS needs a somewhat rigid structure that is set up to focus on procedure and time sensitivity. Since UPS has as its goal to get the correct parcels to the right customers in the fastest way possible, variance in procedures or ways of accomplishing the tasks would never work. A tight, delineated structure is imperative. Along with the purpose the leader must look at the vision of the organization. Where does the leader want the organization to go? How best can the structure provide for the future? Will the vision call for expansion into other countries or simply call for product development changes? Should a leader plan a structure that can easily grow in size without harming its integrity or one that focuses on the best way to make new products?

Vision must be built into the organizational structure. Last but not least budget considerations and external environments may want to be considered in developing the structure. These factors are something that would have to be evaluated on a case by case basis.

Learning Activity:

It is time now to try your hand at creating a structure to fit an organization. Here are the facts. Justin Hickey has created the Mountain Mug Cafe. It is known for its special blend coffee, fresh sandwiches and hearty salads at moderate prices and fast service to skiers in the bustling town of Park City, Utah. The cafe has a cozy ambiance, with a Western décor, a huge fireplace surrounded by comfy couches and chairs for people to sit and a huge picture window that overlooks the Rocky Mountains.

Catering to skiers, the cafe serves fresh meals in a hurry to people taking a break from the slopes and is located 10 minutes from a popular ski lift. The cafe's major attraction, however, is a high-quality coffee bar that specializes in superior custom blend coffees made unique to each customer. Business has grown steadily in the last seven years and its future looks bright. Justin Hickey feels that he has other business interests that he wishes to explore and cannot address the cafe full-time. He wants to set in place a structure that will continue to grow the business while maintaining its quality and reputation.

Some additional facts that may help:

Hickey currently employs a chef and two line cooks. The chef has been anxious to change menu items to take on seasonal fare and take a larger role in purchasing. Hickey has a wait staff of six people but is about to lose one to marriage. He currently is open from 8:00 am and closes with the ski lift at 5pm. These hours are seven days a week in season and six days a week off season with closing time on Saturday at 3pm.

He is being encouraged by customers to stay open for dinner year round. This would mean an additional set of wait staff and cooks, etc. Also, Hickey is concerned about rising food prices.


Create a vision and mission statement for Hickey.

Create an organization structure which will further Hickey's 

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