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ABRAHAM’S GROCERY SUGGESTED ANSWER Introduction: Employees need to understand how the organization works, how they contribute to the overall success of the organization in order for them to be motivated and productive. The leaders or managers are required to choose the best organizational form to fi...

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ABRAHAM’S GROCERY SUGGESTED ANSWER Introduction: Employees need to understand how the organization works, how they contribute to the overall success of the organization in order for them to be motivated and productive. The leaders or managers are required to choose the best organizational form to fit the strategies or to ensure that the organization structure will help to meet the organization’s performance needs. The purpose of this analysis is first to identify the type of structure currently in use by Abraham’s Grocery and second, provide an alternate structure that would solve the conflict currently being experienced. Analysis: Organizational structure shows the way in which various parts of an organization are formally structured, such as tasks, reporting relationships and the design that supports effective coordination and communication across departments. For example, functional, divisional, matrix, and team-based and network approaches are all used across a variety of organisations. At Abraham’s Grocery it appears that their current structure is based on a divisional approach. The divisional structure occurs when departments are grouped together based on organisational outputs. Using a divisional structure, divisions are created as self-contained units for producing a single product, in this case, meat; produce; and grocery. Different departments are brought together to produce a single organisational output. Traditionally, with a geographic or customer-based divisional structure, all functions in a specific country or region report to the same division manager. In the case example, all store managers report to their relevant district managers who in turn report to the regional manager. Divisional structures have some advantages and disadvantages. The advantages of a divisional structure are seen as reduced functional duplication; customer focus can increase; cross-product coordination is eased; and cross-regional coordination is often eased. Disadvantages of a divisional structure are identified as: poor communication across functional departments; slow response to external changes; decisions concentrated at top of the hierarchy; responsibility for problems is difficult to pinpoint; and limited view of organizational goals by employees. Many of these disadvantages can be identified within the case. For example, coordination and communication within stores was dysfunctional and led to a lack of control by the store manager and as a result they experienced a high turnover in store managers. Consequently, the owner called in a consultant to advise on a re-structuring plan for the stores.

A new structure was proposed. This structure took the matrix approach which combines aspects of both functional and divisional structures simultaneously in the same of the organisation. The matrix structure, due to its dual lines of authority, provides a form chain of command for both the functional (meat, produce and grocery) and divisional (store, district, regional) relationships. The two-manager employees must resolve conflicting demands from the matrix managers. For example, the store meat manager must report to the store/grocery manager as well as the district meat specialist). The matrix manager is a product or functional manager who is responsible for one side of the matrix (the district produce specialist is responsible for the store produce manager). The top leader oversees both the product and functional chains of command and is responsible for the entire matrix (regional manager). Some of the advantages of the matrix approach include: more efficient use of resources than in single hierarchy organisations; flexibility and adaptability to changing environment; development of both general and specialist skills; interdisciplinary cooperation and expertise available to all divisions; and, enlarged tasks for employees. On the other hand the disadvantages include: frustration and confusion from dual chain of command; high conflict between two sides of the matrix; many meetings and more discussion than action; human relations training needed; and power domination by one side of matrix. Conclusions/Recommendations In conclusion, Abraham’s Grocery owners are in a position whereby they have two structures that could improve the current situation of tension, frustration and no autonomy with the divisional approach. The advantages and disadvantages of both the divisional and matrix approaches have been clearly outlined and it appears that the owners have sufficient information to make a decision. From the above analysis, it is recommended that the matrix approach will be a better fit for the firm and will yield better long-term results for Abraham’s Grocery. STUDENTS PLEASE NOTE: The above analysis is somewhat lengthy. The reason behind this is that you should be able to identify some of the key issues that determine an organisation’s structure. There are many of these issues within the analysis of which you would only need to identify those that would adequately explain the dilemma that the organisation finds itself. Please remember that it is only in the analysis section that you need to introduce and integrate theoretical concepts and case examples. Please use the above as a suggested answer only....