Topic > Organizational Structure and Management: Alibaba and the 21st Century

Millman (3) states that a company's organizational structure has a great influence on its progress and relationship with the public and employees. Management is influenced by the command structure of employees to management. An ideal design facilitates communication, promotes competition and promotes innovation. The design of an ideal organizational structure depends on many factors, which relate both directly and indirectly to the organizational environment. Many intrinsic factors, however, have a large influence on the system upon which an organization is designed. Each unit is led by a department head who reports to the overall head of the organization. However, different organizations apply different structures that suit their functionality and type of work. This article, therefore, provides an analysis of Alibaba's organizational structure and management of organizations in the 21st century. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Alibaba is one of the leading countries in the world with operating branches in the United States, India, China, Malaysia, Thailand, Turkey, United Kingdom, Japan, Vietnam, and Taiwan. A large number of customers in different stores requires an organizational system that allows the company to meet the needs of its customers and, at the same time, make profits from their services. The organization of the company is defined as a traditional VIE (Variable Interest Entity). The system is integrated into the company's business to push it to succeed among other competitors (Picker and Wu 5). The VIE structure works with other subsidiary organizations that monitor the flow of goods and market systems in different parts. In order for a full cycle of relationships within the organization to be achieved, local companies work closely with WFOEs (wholly foreign-owned enterprises). Management is done through 27 managers without representation from company shareholders such as SoftBank and Yahoo! The organizational structure was designed to allow Chinese companies with government licenses that did not allow them to operate in the international market to access markets on the global stage (Picker and Wu 5). The application of the structure in Alibaba involves the use of five companies that have the jurisdiction to operate in local markets. Major owners of the companies include co-founder Jack Ma, executive Xie and Ma (Reuters 6). Local companies are used in creating a variable interest for a larger organization and are used in evaluating the company's progress in different markets. The advantage of the structure is that shareholders are integrated into the performance of the company with a contract that binds them to their agreements. Alibaba applies the VIE structure without guaranteeing its shareholders that the company will always progress by giving priority to shareholders' interests. The company also does not assure them to ethically maintain their agreements, and in case of a breach, the company is required to pay off the debts incurred. The structure of the organization divides the different departments into subunits each headed by a department head. Department heads report to the branch manager who is the overall decision maker of the branch. Dividing the management of an organization into several smaller sectors helps achieve more competent work than traditional management structures. The division of departments in an organization helps in management by sampling information from different departments within an organization. These divisions provide an organization with the ability to monitor thedifferent sectors and, at the same time, implement the policies that guide the operations of the organizations. Alibaba is divided into different subsections, supervised by managers as heads. Each of the managers is the head of a branch with the task of ensuring that the collective management of the branch achieves the set objectives. The article is a representation of the approach Alibaba has used to create an entry into the market and maintain its position against competitors. The detailed definition of the VIE structure presents an insight into the functioning of the organization and the relationship that management has with employees and the market. An efficient organization management system is a representation of the systematic relationship system between the CEO (Chief Executive Officer) and the different subsidiaries in the international market. Market trends in different places where Alibaba has opened branches present different systems and approaches that are sensitive to the functioning of the organization and the management of different departments within the organization. Three key factors are applied in determining how Alibaba functions in the different markets in which it operates. The way work is divided between employees and the leadership system, the coordination of different tasks and the person who will make decisions in the organization. Job differentiation at Alibaba follows a horizontal system where employees answer to their department's managers. Therefore, communication occurs from management to employees or from employees to managers. However, the channel follows that employees pass the information on to department heads, who then communicate it to the manager. After making the decision, the same channel is followed. Local businesses have been used as a local hub for the organization's operations, but with the incorporation of other international shops, the organization can operate with less tension and competition in local markets. The structure is a link between different Alibaba stores around the world and provides guidance on what is expected of different managers. In conclusion, Alibaba is among the current generation companies that still apply the VIE structure of the organization. The structure adapts the company to the large international market it serves and the large number of customers. The efficiency of the facility has allowed Alibaba to introduce its products into new markets and emerge as a major supplier and service provider. However, from time to time, changes are made to the organizational structure to help determine areas where improvement is lacking and which strategies to apply. Changes in structure are made to ensure that the organization meets its set goals and can successfully push the company towards success. The framework is a system that has helped many companies effectively manage their operations on the global and local stage with huge returns for owners and shareholders. However, the VIE structure has weaknesses that could cost the organization its market position and its advertising, leading to losses in sales. Likewise, the structure provides the organization with a direct administration system and helps manage all the different stores. Implications Modern age management systems are based on the operations of the organization and not on the factors that could influence changes. Therefore, if there are problems in the management and command system, the different departments cannot reach a unanimous solution to solve the problem. In contrast, management systems in the 21st century are designed with the ability to change from time to time making management prone to external forces that influence its.