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Organizational Design and Structure

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by

Selena Nguyen

on 20 September 2014

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Transcript of Organizational Design and Structure

What is WESTFIELD?
An Australian multinational shopping center group
Includes Australia, United States, United Kingdom and New Zealand
119
malls,
23 000
retail outlets and
425
million visits per year
(Westfield Group, 2003)
Fun Fact! The first Westfield was built in 1959 at Blacktown
What is Organizational Structure and Design?
Organizational Structure:
"Skeleton"
Hierarchy within an organization

Organizational Design:
"Plan"
People + Information + Technology
CONTENT
Overview
on “Westfield Group”
Question 1
: Which principles of organizational design has Westfield used to develop its organizational structure? How has it used these principles to design the organization?
Question 2
: What kind(s) of organizational structure does Westfield use?
Question 3
: How has Westfield’s strategy and environment influenced its structure?
Question 4
: How could Westfield use its organizational design to encourage a learning organization?
DEPARTMENTALISATION:
Segregation of activities into separate jobs
KEY FEATURES OF ORGANIZATIONAL STRUCTURE AND DESIGN
Departmentalization
Work specialization
Authority and Responsibility
Span of Control
Centralization vs. Decentralization
Formalization
WORK SPECIALISATION
AUTHORITY AND RESPONSIBILITY
Power and Obligation
CHAIN OF COMMAND
SPAN OF CONTROL
Maximum number of employees per manager
(C) VS (D)
Centralization: Upper-level authority
Decentralization: dispersal of authority
FORMALISATION
Rules and Procedures

Extent to which expectations regarding the means of work are specified, written and enforced
Q. What key principles of an organisational design does Westfield use?
ORGANISATIONAL STRUCTURE
An
organization structure
defines how tasks are divided and coordinated within an entity

ASSET MANAGEMENT
The
Asset Management
division directly contribute to managing and generating revenue from the group's retail properties.
The Development, design and construction division
The leasing and national shop openings division
The property and facilities management divisions
The center management and customer service division
The marketing division
The sales division
www.westfield.com
BUSINESS SUPPORT
The Business Support division provides the resources and information required to execute and improve the business operations.
The HR, IT, Research, Legal and Finance division
The corporate affairs division
The retailer relations division
The business development team
The business improvement group
But WHY does Westfield use a divisional structure?
STAKEHOLDERS
Is it the most effective structure?
MECHANIC VS. ORGANIC ORGANIZATIONS
Mechanic Organization - an organization with a structure that's
HIGH
in specialization, formalization and centralization
Organic Organization - an organization with a structure that's
LOW
in specialization, formalization and centralization
Changes in customer preferences
Demographic, social and economic conditions
Westfield Labs
Innovative business areas for the service for shoppers and retailers
Q. Which model do you think Westfield follows?
Organic? Mechanic? Both?
A learning organization is one that has developed the ability to continuously learn, adapt and change
There are 4 main characteristics of a learning organization, including:
Organizational Design
Information Sharing
Leadership Style
Organizational Culture
What is a Learning Organization?
LEARNING ORGANISATION
Organizational Design within a learning organization
The organization of a learning organization should:
Be without boundary
External and Internal
Encourage teamwork
Open-minded and aspired leaders
Encourage empowerment
Information Sharing within a learning organization
Another characteristic of a learning environment includes information sharing, and aims to be:
Timely
Accurate
Open
Leadership Style within a Learning Organization
The leadership style within a learning organization aims to focus on aspects of:
Collaboration
A shared vision
"Over time, new products, partnerships and services will be commercialized globally. Westfield Labs plans to transform emerging ideas and technologies into viable businesses that move the retail industry forward." - Westfield Lab
Organizational Culture within a Learning Organization
The organizational culture utilized within a learning organization consists of:
Strong mutual relationships
A sense of community
Trust
A caring environment
"Change is scary, but what has made Westfield so successful.. is the vision that we must continually adapt" - Steven Lowy, Co-Chief Executive
"A learning organization is an organization that is continually expanding its capacity to create its future" - (Senge, 1991, pp14)
Q. Has Westfield employed the right organizational structure and design for its multinational company? Why/Why not?
REFERENCE LIST:
Philips, L., 1980 "Organizational structure and decision technology"
Acta Psychologica
, 45(1) 247-264
Robins, S DeCenzo, D Coulter, M Woods, 2013, Management The Essentials 2nd Edn, French's Forest NSW
Senge, P.M, 1991 "The Fifth Discipline, the art and practice of learning organization" ,
Performance and Instruction,
30(5) pp37
Westfield Group, 2014, accessed 15th September 2014,
http://www.westfieldcorp.com/westfield-difference/
Westfield Lads, accessed 15th September 2014,
http://www.westfieldlabs.com
Kathy Lam
Matthew Perabo
Selena Nguyen
Organizational Design = "THE PLAN" =

Result?
Key Features
used to encourage learning organization:
Centralization
Divisional Strategies
Formalization
Division of Labor
`
`
Westfield ensures all its retail properties are:
- Located in places where consumers want to shop and spend leisure time
-Attractive and appealing
-Provide complementary products and services

Q. If you were a stakeholder in Westfield, would you be happy with Westfield using a divisional structure?
STRATEGIES AND ENVIRONMENT
Which Factors influence structure?
Size:
Large Organization - Mechanistic
Small Organization - Organic
Environment:
Dynamic - Organic
Stable - Mechanistic
Culture:
Strong Culture - Organic
Weak Culture - Mechanistic
Strategy:
New Innovation - Organic
Efficiently - Mechanistic
INFLUENCE ON STRUCTURE
WHAT STRATEGIES BUILD WESTFIELD'S STRUCTURE?
Management

- Trusted management team -> effective decision making
- 12+ years experience in their department
- Loyal
- Higher Skilled Employees




ONLINE SHOPPING AND SOCIAL MEDIA
RETAIL MANAGEMENT
Organizational Design and Structure
Kathy Lam, Ishita Lad, Matthew Perabo, Selena Nguyen
Westfield Group
Ishita Lad
ORGANIC
- strategy must be relatively
fluid to adapt to consumer
needs within different locations

- must be able to adapt
to the dynamic environment

Mechanic
- Formalized communication

- Centralized decision authority

- Rigid hierarchical relationships
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