A company’s organizational structure can determine how effective its management department will be in implementing and executing company decisions. Without a great structure the company may lose its finances, by being inefficient. With that in mind, a company’s organizational structure is geared towards making the company more efficient and successful. UPS like all major organizations has to keep their organizational structure with the times in order to stay productive and successful.
I will explore the organizational structure implemented by UPS, and compare it to two other structures.
I will evaluate how organizational functions influence UPS’s Organizational structure. Lastly, I will explain how organizational design can help determine which structure is best suited for UPS. After exploring these factors of UPS as an organization, I am sure you will have a deep understanding of why organizational structures are crucial to a company’s success. UPS is a large global operation that was started by two young friends that wanted to start a messenger service.
Things have definitely changed since the company started in 1907. UPS has had to change its organizational structure over time because of the rapid growth in technology and employees. Today UPS implements a centralized organizational structure. In this structure UPS has implemented a centralized management committee, the committee makes all major decisions for all UPS regions. They then send the decision to the regional manager in order to implement the decision. Next each branch’s manager needs to initiate a plan of action in order to implement the decision within their own facility.
In contrast, if UPS were to be decentralized the company’s reputation could be at risk. Each regional manager could implement their own ideas of how business is to be conducted. Not conforming to UPS’s policy could cause some branches to be viewed differently than the company as a whole. UPS compared to a team-based organization is very similar. UPS likes to make all employees feel as though they are part of one team, and each player has their role. If each player does their part than as a whole we will get the job done. Since UPS is a large company and has many employees, it is crucial that they partake in certain organizational functions.
UPS is constantly hiring new employees, and that means they have a large Human Resource department. They need to be able to hire productive people, and also ensure employee safety at the same time. In regards to its finances UPS uses a lot of its profits to go towards employee benefits. UPS also markets to small businesses and large companies, and that means that UPS also has a marketing team. With these functions comes the need for organizational designs. Organizational designs help an organization determine which organizational structure is best suited for its needs. UPS nearly uses all designs available.
They have to use a geographical design when opening up a new branch in a foreign country or region. UPS is customer-based which pushes UPS to provide new products or services. Having to operate these designs all in synch is what drove UPS towards a more centralized organizational structure. UPS has learned a lot in their 100+ years of experience in delivering packages. One of the biggest lessons is figuring out which organizational structure will make your company run more successful and efficient. A centralized organizational structure is the one that works best for today’s UPS. Organizational functions are essential to a smooth running of UPS’s operations. Organizational designs have influenced UPS dramatically in determining which organizational structure would work best. Finally, UPS will continue to be successful as long as they adapt their organizational structure to their current state of being.
Cite this Organizational Structure Essay
Organizational Structure Essay. (2016, Sep 17). Retrieved from https://graduateway.com/organizational-structure-essay/