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This 0 page Study Guide was uploaded by tophomework Notetaker on Saturday November 14, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 17 views.
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Date Created: 11/14/15
Running head ORGANIZATIONAL STRUCTURE Organizational Structure ORGANIZATIONAL STRUCTURE 2 Organizational Structure Management consists of four traditional functions that have remained unchanged over time and are still relevant today Each function extends into the next starting with planning Once plans have been made and goals set the company needs to be organized in a way that makes reaching those goals attainable It is during the organizational function of management that the structure or chain of command is established for the company This structure forms the foundation for the company and may vary depending on the type of industry B ateman amp Snell 2011 Structure and organization are critical components of a company If the structure within a company is implemented to best suit the needs of the company the company will be more likely to succeed in achieving its goals Organization structure and chain of command are created by management after the objectives of the company have been established This implementation by management clearly defines the role of each position within the company and also outlines the requirements for each level of operation This allows management to hold the staff accountable if goals are not being met Joe has spent his entire adult life employed in the food service and hospitality industry All of this work experience has been with a worldwide corporation that uses a classic division organization structure as would be expected of this type of service industry Because there are locations in North America and other nations around the globe it is necessary for Papa John s International to take the divisional approach for its organizational structure The hierarchy of the organization is headed by the founder and CEO John Schnatter and the board of directors Papa John39s International Inc 2013 This structure allows the corporation to oversee better each department because each division plays an important role in reaching the planned goals of upper ORGANIZATIONAL STRUCTURE 3 management Perhaps one of the most important divisions of Papa John s International is known as PJ Food Service This division is responsible for producing and distributing food products to the restaurants which is used to create products for the consumer PJ Food Service has several commissary centers around the world so that it can best serve each restaurant and therefore provide the best service for the customer Papa John39s International Inc 2013 At the restaurant or operational level food orders are placed by each restaurant to the commissary center that services the area Therefore any delivery concerns must be placed by each restaurant directly to the appropriate PJ Food Service center for the issue to be resolved The separation of divisions is helping to management at the operational level because when there is a concern it needs to be raised within the division that is responsible for issue A drawback of this is remembering which division handles problem if the organization is complex and has many departments There are many factors that may alter management s decision on which type of function is best suited for the organization These needs may even change over time as the company grows and adapts to market conditions Joe believes this could have been the case with Papa John s International as well Early on the organization was small and a functional structure would have been sufficient to oversee the levels of operations This would be possible because the company was more localized during this stage of existence Each function such as marketing human resources and finances would all be handled by upper management directly As the company began to grow and expand into other communities this functional structure would make it more difficult to control the growing operations because they would be further from supervision of the home office It would become troublesome for upper management to control effectively each function and simultaneously perform the tasks of growing the company ORGANIZATIONAL STRUCTURE further Therefore a divisional structure is the most logical for the company to achieve its goals and perform at levels that will sustain companywide growth into the future A matrix structural approach may work for a company as diverse as Papa John s International This type of structure is a combination of the functional and divisional structures In this scenario lowerlevel managers report to both a functional supervisor and a divisional supervisor on the progress of the department In the case of a customerbased food service company the matrix structure may not be necessary because there is not enough contrast between the functions and divisions within the company to merit needing the extra supervisory position Although when companies in this industry are franchised there are some cases in which the structure will resemble a matrix This occurs when directors of the franchises must work with corporate franchise directors as a measure of controlling the company s policies throughout the organization In most cases however the matrix structure is too costly and unnecessary to implement although the divisional format suits many service organizations perfectly Based on that Papa John s International is a worldwide corporation based operationally in customer service the divisional organizational structure is best designed for the size and goals of the company The company can produce its own products in a division of the company eliminates the need to have a matrix structure If food or other services from another company were necessary in to for Papa John s to create a service then perhaps the matrix structure would better suit the demands of the corporation The size of Papa John s as a corporation would also make communication difficult in the matrix structure because there would be so many more lines of communication While this can be a benefit when used effectively the costs incurred through miscommunications run the risk of outweighing the ORGANIZATIONAL STRUCTURE 5 advantages The focus of the corporation needs to be customerbased just as the industry is otherwise management may lose sight of the customers because there is too much attention placed into the production facets of the company A structure that matches the type of goods or service provided is an important first step in organizing a company for sustained success Without the foundation of a solid organizational structure a company is vulnerable to straying off track to the initial goals ORGANIZATIONAL STRUCTURE References Bateman T S amp Snell S A 2011 Management Leading and collaborating in a competitve world 9th ed New York NY McGraWHill Irwin Papa John39s International Inc 2013 Spring Investor Relations Retrieved from httpirpapajohnscom
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