Topic > Essay on Zara - 783

Organizational structure is defined as the formal configuration regarding responsibilities, distribution of tasks, and authority within the organization among individuals and groups (Galbraith, 1987; Greenberg, 2011) . The structure of an organization allows it to carry out its functions by connecting its departments. These departments can be characterized by aspects such as marketing, sales, advertising and production. These jobs are grouped together and there are many distinctions between the jobs people do (Nelson & Quick, 2011). Both the firm's strategy and the situations of subunits and individuals within the firm are influenced by organizational structure, and failure to recognize the importance of a firm's organizational structure would be detrimental to firm performance (Amir -Atefi, DeCanio & Dibble, 2000).Zara, founded in 1975 by Amancio Ortega, is the flagship chain of the Inditex group and is one of the most successful fashion retailers in the world with 2000 stores in 77 countries. The organizational structure chosen by Ortega is a flat structure that provides few levels of middle management between managers and employees. Ortega has rejected rigorous organizational structures in favor of a more flexible approach that thrives within a highly integrated, fast and efficient form of communication between its global network of stores and the central operations center in Spain. This reduces supervision and gives Zara staff more involvement in decision making, making them more productive. This structure is typically used in smaller organizations, but it proved successful for Zara. The flat structure encourages staff involvement using decentralized decision making. ... half of the article ...... on decentralization techniques, we will further examine the chain of command implemented in this organization. Chain of command is the involvement that an organization has with the flow of information and authority with the same organization. In principle, the chain of command is how information and authority should progress in a hierarchical style, without neglecting an intermediate level. The chain of command style in Zara is different from that of other organizations, as its product and store managers have been placed in the same working environment. To avoid communication problems between departments, the Zara stores and factory are closely interconnected on a commercial level. Vertical integration does not promote coordination within Zara, but it is the design of the organizational and human interface that ensures the integration that the report will now examine.