Structure can be classified into four simple types. Robbins and Coulter (2001, p. 267) identifies simple structure as “ an organisational design along with low departmentalization, wide span of control, centralized authority and little formalization. ” Functional structure groups individuals with similar skills in addition to similar job description. About the other hand, Divisional structure groups together people depending on the section of work (product, geography, client or process). For instance people working in a new particular location will be regarded as a group under geographic divisional structure.
Finally, the Matrix structure utilizes the benefits associated with the above two types in order to from groups based upon projects. The group members in this type would certainly generally belong to a minimum of two formal groups. (Schermerhorn, 2001). LearnManagement2. com (2010) defines the term Span of control as “ the phrase used to describe the number of workers that each manager will be responsible for. ” That can also be discovered (as depicted in typically the following diagram) that getting a broader span of control results in a flat structure and the narrow span of control leads to the creation of the tall organization framework.
Figure: Level and Tall Organisational buildings. (source: http://www. bbc. corp. uk/schools) In the above figure organisation A represents tall-structure and organisation W represents flat structure. Robbins and Coulter, (2001, g. 260) defines Chain of Command as” The continuous line of authority that extends from upper efficiency levels to the cheapest levels and clarifies who reports to whom. ” Authority, responsibility and unity of command together ensure the effective functioning of the chain of order. The right to control sub-ordinates and expect the task to be done is usually known as authority.
In the same way the duty to execute any assigned tasks is called responsibility. When each member of the company takes orders and reviews to one person, it is known as unity of command. These keywords and phrases and their definitions have been adopted from Robbins and Coulter (2001). Aldi follows a divisional construction based on geography, without being too departmentalized. The particular divisional managers are entirely responsible for handling the particular services/products provided by the store and running the particular store as if it was his/her own business.
This also indicates that Aldi employs a decentralized structure where-in lower level managers are skilled and able to making decisions all by by themselves. As a part associated with decentralization which happened whenever Aldi was split into Aldi Nord and Aldi Mezzogiorno in 1961, an independent corporation was formed for every sixty to 70 stores in the locality. This lead to the formation associated with a large number of autonomous corporations, which competed with each other inside a healthy fashion to help the expansion of the organisation.
In a new geographically dispersed organisation just like Aldi this has turned out to be a good decision considering the growth and accomplishment of Aldi ever considering that its formation. Due to the little size of the corporations there will be fewer bureaucracy and almost all troubles can be handled from ground-level quickly using the information of the local industry. Decentralised structure of Aldi allows regional managers to involve in decision generating and also helps efficient implementation of the company’ s strategies. These sights of a decentralised framework are actually adapted from Robbins and Coulter (2001).
Aldi’ s framework is actually a flat one whenever defined in terms of span of control. Typically the Managers have a broad span of control, therefore leading to a flat structure rather than hierarchical one. Aldi does not need separate arranging, human resources, public relations or even marketing departments. Managers possess clear specifications for goals, responsibilities and authority. That is the manager’ h job to delegate these types of towards the sub-ordinates in a good efficient and clear manner. Random checks and analysis of performance and results is done to keep the culture and exercise specialist.