Defining, Examining and Developing an Organizational Structure

An organizational framework can be explained as a design of relationships of different aspect in an group. Organization composition thus refers to the arrangement of connections among different positions and folks in an company (HRM GUIDE 2009, Para. 2).

Importance of organizational structure

Organization structure offers specialist and responsibility to individuals. It directs who is in charge of what and who's responsible for what end result. The framework helps individuals to learn their roles as well as how to relate to one another in the organization (HRM GUIDE 2009, Para. 3).

The organization structure gives the style of communication and coordination in the business. By grouping activities and people, organization structure really helps to aid communication between individuals focused in their obligations. This permits information sharing and problem fixing.

Location of decision centers: group structure determines the centre of decision making and the source of power within an organization.

Proper balancing: business structure ensures good coordination between different categories in the organization.

Nike Company

It is a publicly traded company of sportswear and equipment in the United States. The company head office are located in Beaverton. Nike is the world's greatest manufacture and distributor of shoes. THE BUSINESS adopts a hybrid of both useful and divisional framework. The chief professional officer is within the top of the hierarchy and the following managers directly are accountable to him: the corporate vice president, manager operations, supervisor Jordan brand, director Nike brand, supervisor global basketball, administrator Americas brand, supervisor administration, manager Brand and category management, administrator footwear, recruiting manager, sports marketing manager and the administrator responsible for Nike design (Public Panel 2009, Para. 1).

Looking at the Nike structure we realize that each brand has a department that organizes its activities. Each brand performs independently such that it organizes on the development and marketing. Each section then has sub-units or sub-departments like development and accounting. This allows the business to keep track of the performance of each of its brand independently.

Each departmental head reports directly to the C. E. O. this gives departments autonomy in decision making. You will find other departments that are used by all the departments however they also report directly to the C. E. O.

The human source department is in charge of recruitment and keeping employees in the whole organization. This office deals with the employees affairs in the whole organization. The director (operation) is responsible for coordination of operations within the whole company. It has the responsibility of earning sure that all activities in the organization are run properly and are well coordinated. This reduces issue and facilitates interdepartmental co-operation (Official Plank 2009, Para. 2).

The marketing department is the department that handles all the marketing activities of the products produced by the business. This section organizes sales and advertising campaigns for all your brands. This section is accountable for brand development and progress. It works together other department to find out sales forecast and expected demand for the merchandise. This department can be an important part of the firm because it is accountable for maintaining a strong brand on her behalf products.

Comparisons of Nike's organizational structure and the divisional kind of organization structure


Divisional kind of structure has a decentralized form of communication such that different division make their own decisions on consultation with the C. E. O. , this is the same communication route that is utilized in Nike. Each brand director is immediately answerable to the top office. The division makes its production routine and organizes its inner affairs (Buzzel. com 2009, para. 5).

There are some distinctions in the Nike composition and the convectional divisional composition communication. Within the Nike structure there is the operations division which facilitates the interdepartmental communication. This office means that information flow between your departments is soft. The information between your departments doesn't have to visit the CEO first such that it can be communicated to other departments.

Division of labor

The organization structure at Nike is sorted out in a way that each department is in charge of organizing its own activities. This demonstrates each departmental director is the boss of a given division. The employees of a given division are answerable to the departmental mind. This is like the divisional kind of organization structure where the departments are usually given the autonomy to carry out their own activities and answerable to the very best management (Buzzel. com 2009, para. 4).

The Nike Company organizational structure provides departmental brain control total the techniques and the recruiting in the section. However there is an overall human learning resource team that harmonizes the human resources in the whole organization. This implies that the recruiting in the organization have two centers of control. The office handles the working of employees while the human resource team is concerned with staffing and the employees' welfare.


Nike's organization structure coordination is comparable to that of divisional organizational composition. Each departmental manager in the Nike Company records directly to the C. E. O. and the table of directors forms the research point to each department. Each departmental head organizes the actions in his/her office and ensures they are really well coordinated to create maximum output.

Nike has got also the procedure department. This team is sensible in overall logistical planning in the business. It is in charge of bringing logistical tranquility in the business's operations. That is not the same as the divisional organizational composition which depends with all its coordination from the most notable management

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