Jatiya Kabi Kazi Nazrul Islam University

Trishal, Mymensingh
Assignment On : Organization Structure
Course Name : Principles of Management
Course Code : HRM-103
Submit Date : 1st August, 2021

Submitted by: Submitted to :

Name: Mohammed Jonaied Alam Chaion Amita Das
Roll :20133017 Associate Professor
Student of Human Resource Management
Human Resource Management
Jatiya Kabi Kazi Nazrul Islam University
Jatiya Kabi Kazi Nazrul Islam University
 Organization Structure
Introduction: An organizational structure details how certain activities are
delegated toward achieving an organization's goal. It outlines an employee's
role and various responsibilities within a company. The more authority
employees have, the higher up they'll be on the organizational structure. In
addition, the more organized a structure is, the more efficiently a company
operates.

Importance of Organizing
A comprehensive approach to organizing helps the management in many ways.
Organizing aligns the various resources towards a common mission.

Efficient Administration

It brings together various departments by grouping similar and related jobs under
a single specialization. This establishes coordination between different
departments, which leads to unification of effort and harmony in work.

Resource Optimization

Organizing ensures effective role-job-fit for every employee in the organization. It

helps in avoiding confusion and delays, as well as duplication of work and
overlapping of effort.
Benefits Specialization

It is the process of organizing groups and sub-divide the various activities and jobs
based on the concept of division of labor. This helps in the completion of maximum
work in minimum time ensuring the benefit of specialization.

Promotes Effective Communication

Organizing is an important means of creating coordination and communication

among the various departments of the organization. Different jobs and positions
are interrelated by structural relationship. It specifies the channel and mode of
communication among different members.

Creates Transparency

The jobs and activities performed by the employees are clearly defined on the
written document called job description which details out what exactly has to be
done in every job. Organizing fixes the authority-responsibility among employees.
This brings in clarity and transparency in the organization.

Expansion and Growth

When resources are optimally utilized and there exists a proper division of work
among departments and employees, management can multiply its strength and
undertake more activities. Organizations can easily meet the challenges and can
expand their activities in a planned manner.

Key Elements for Proper Organizational Structure

Work Specialization
Also called division of labor, work specialization is the degree to which
organizational tasks are divided into separate jobs. Each employee is trained to
perform specific tasks related to their specialized function.
Authority
Authority is the legitimate power assigned to a
manager to make decisions, issue orders, and
allocate resources on behalf of the
organization to achieve organizational
objectives.

Chain of Command

The chain of command is an important concept to build a robust organization

structure. It is the unbroken line of authority that ultimately links each individual
with the top organizational position through a managerial position at each
successive layer in between.

Delegation

Another important concept closely related to authority is delegation. It is the

practice of turning over work-related tasks and/or authority to employees or
subordinates. Without delegation, managers do all the work themselves and
underutilize their workers. The ability to delegate is crucial to managerial success.

Span of Control

Span of control (also referred to as Span of Management) refers to the number of

employees who report to one manager. It is the number of direct reporters that a
manager has and whose results he is accountable for.

Types of organization structure

There are five basic categories of organization structure.
1) Functional or U-Form Design
2) Conglomerate or H-Form Design
3) Divisional or M-Form Design
4) Matrix Design
5) Hybrid Design
Functional or U-Form Design The functional structure in the firm’s
organizational structure divides different functions into different groups such as
the marketing department, finance department and human resources department.
In a divisional structure, the company’s division is on geographic terms.

Conglomerate or H-Form Design Organization consists of a set

of unrelated businesses with general manager for each one. H-form is similar to
product departmentalization. Coordination is based on the allocation of resources
across companies in the portfolio. Conglomerates can experience difficulties due
to management's lack of multi-industry knowledge.

Divisional or M-Form Design Divisional organizational

structure represents a fundamentally different way of organizing by which
members of the organization are grouped on the basis of products, services,
customers, or geography. Thus, an organization structured within the framework
of divisional structure has its activities designed based on common products or
services, target customers, or geographic market.

Matrix Design A matrix organization is defined as one in which there is

dual or multiple managerial accountability and responsibility. However, the term
matrix means quite different things to different people and in different industries.
In a matrix there are usually two chains of command, one along functional lines
and the other along project, product, or client lines. Other chains of command
such as geographic location are also possible.

Hybrid Design Like the Matrix Structure, the Hybrid Structure combines
both functional and divisional structure. Instead of grid organization, Hybrid
Structure divides its activities into departments that can be either functional or
divisional. This structure allows the utilization of resources and knowledge in each
function, while maintaining product specialization in different divisions. Hybrid
Structure is widely adopted by many large organizations.

Starbucks Coffee
Starbucks Corporation, together with its subsidiaries, operates as a roaster,
marketer, and retailer of specialty coffee worldwide. The company operates
through three segments: Americas, International, and Channel Development. Its
stores offer coffee and tea beverages, roasted whole bean and ground coffees,
single-serve and ready-to-drink beverages, and iced tea; and various food
products, such as pastries, breakfast sandwiches, and lunch items. The company
also licenses its trademarks through licensed stores, and grocery and foodservice
accounts. The company offers its products under the Starbucks, Teavana, Seattle's
Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brand names.
As of October 29, 2020, it operated approximately 32,000 stores. Starbucks
Corporation was founded in 1971 and is based in Seattle, Washington. 1971
Gordon Bowker, Jerry Baldwin, and Zev Siegl open the first Starbucks in Seattle's
Pike Place Market. It’s a public company with more than 115,000 employees.

Photo: Starbucks Coffee

 Organizational Structure of Starbucks Corporation
Starbucks corporation is one of several large multi-national corporations to
successfully implement a matrix structure. In general terms, a matrix structure
consists of functional and product-based divisions with multiple chains of
command. It is also well suited to organizations that have a diverse range of
products or services.

Starbucks is controlled by a board of directors who operate in the company

headquarters of Seattle, Washington. In the United States, the company is split into
regional jurisdictions run by district managers who oversee a group of stores. Each
store is run by a store manager and shift supervisor who oversees a group of staff.
Importantly, Starbucks promotes an inclusive culture among its staff. The company
seeks to recognize exemplary employee performance and encourages them to
develop hard and soft skills – regardless of title or pay bracket. With these skills,
Starbucks gives employees the autonomy to serve customers in a way they deem
best. Given that authority and empowerment are given to low-level employees, the
company can also be said to incorporate aspects of a flat organization structure.
Besides the matrix design Starbucks corporation follows hybrid structure that
includes elements from the basic types of organizational structure such as
functional and regional-divisional structures since 2015.

Four key elements of Starbucks organizational structure

There are four key elements to the Starbucks organizational structure.
Below we will take a look at each in more detail.

Functional hierarchy
Functional hierarchy refers to the grouping of departments according to business functions.
Examples include the human resource and marketing departments. It should be noted that
functional hierarchy is the most traditional aspect of the matrix structure. Much of the
decision-making in each Starbucks department is centralized and only occurs at company
headquarters. For instance, the corporate human-resource department makes policy
changes applicable to every Starbucks café.

Product-based divisions
Starbucks also has several product-based divisions. These encompass divisions for
coffee, merchandise, and baked goods to name a few .They also include divisions
for the numerous brands operating under the Starbucks banner, including
Evolution Fresh juices and Teavana bottled teas.
Geographic divisions
With a presence in 70 countries, optimizing the structure of geographic divisions is
vital for Starbucks .In 2011, the company ditched the Starbucks U.S and Starbucks
Coffee International (SCI) divisions to create three new regions:
Teams
Found in Starbucks in every Starbucks café. The company understands that team
performance and good customer Teams are invariably service drive the financial
success of every location. As noted earlier, teams are motivated and empowered
to perform in such a way that they further personal goals and enhance Starbucks’
corporate culture.

Starbucks Mission
To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.

Starbucks Values
With our partners, our coffee and our customers at our core, we live these
values:

 Creating a culture of warmth and belonging, where everyone is

welcome.
 Acting with courage, challenging the status quo and finding new ways
to grow our company and each other.
 Being present, connecting with transparency, dignity and respect.

Delivering our very best in all we do, holding ourselves accountable for
results. We are performance driven, through the lens of humanity.
Starbucks Vision
To establish Starbucks as the premier purveyor of the finest coffee in the world
while maintaining our uncompromising principles while we grow.
 How much revenue does Starbucks make?

Fiscal year is October- 2020 2019 2018 2017 2016

September. All values
USD Millions.

Sales/Revenue 23513 26502 24702 22384 21311

Sales Growth -11.28% 7.21% 10.44% 5.03% ------

By this stat it’s clear that in 2020 sales growth of Starbucks is decreased -11.28%.
That’s happen due to covid-19 situation. But the overall sales growth rate is very
good.
Social responsibility of Starbucks
Social responsibility is a keystone principle at the Starbucks Coffee Company.
Starbucks aims to work ethically with all of its suppliers, offering the providers of
their fine Arabica coffees fair value for the beans they work so hard to grow. The
company also practices environmental friendliness, choosing eco-friendly options
whenever possible. For example, instead of throwing away spent coffee grounds
during the summer season, these grounds are left out for green-thumbed
customers who want to use them in their gardens as a source of acid for the soil.
Addressing climate change is a big priority for Starbucks. They are working to
significantly shrink their environmental footprint by conserving energy and water,
reducing the waste associated cups, increasing recycling and incorporating green
design into their stores. They are also working with Conservation International to
address climate change on coffee farms.

The End