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The Fundamental of Organization Design

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Discuss whether BEST BUY Business program current organizational design is effective or ineffective. What are some of the challenges based on Kates' and Galbraith's five design challenges?
Finally, ensure you effectively use the Star Model to assist you in developing and producing your scholarly discussion.

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Introduction:

In today's business environment, organizations are increasing competing in a rapidly changing environment and need to dynamically design their organizations in such a way that they remain relevant and profitable in a highly competitive marketplace. Organizational design is defined as the deliberate process of configuring processes, structures, people practice and reward systems to create an effective organization that is able to achieve its business strategy (Kates & Galbraith, 2007). The organizational design of a company is in most instances the main determinant of the success of that company. This paper analyses Best Buy business program's current organizational design using Kates' and Galbraith's Star Model to determine whether it is effective or not. It also analyses some of the challenges that Best Buy is facing based on Kates' and Galbraith's five design challenges.

Best Buy's Company Profile:

Best Buy is a multinational retailer of entertainment and technology products and services. The company founded in 1966 as Sound of music, Inc and changed it name to Best Buy Co., Inc. in 1983 is headquartered in Richfield Minnesota and sells its products in primarily in the U.S., Canada, Europe and China. The through its brand products and various partnerships generates annual revenue accruing to more than $50 billion. Some of their products include video products, navigation products, DVD and Blue-ray players, e-readers, digital camcorders and cameras and accessories, home theater audio systems, musical instruments, MP3 players and mobile electronics. It also sells home office products such as desktop and notebook computers, mobile phones, monitors tablets, gaming devices among others. The company also offers service contracts, computer related services, warranties, among others. It operates various online stores, call centers and retail stores under brand names such as Best Buy, Five Star, Geek Squad, Napster, The phone House, Pacific sales, Magnolia Audio video, Future Shop, the Carphone Warehouse and Best Buy Mobile (Yahoo Finance: Best Buy Co. Inc., 2011; Lithium, 2011).

Best Buy's Organizational Design using the Star Model:

The Star Model developed by Kate and Galbraith can be used to identify and resolve critical issues that often inflict the process of organizational design. The key design elements that the model addresses include strategy, people, rewards, structure and processes. The strategy often determines the direction and the company's formula for winning, structure often shows the location of the decision making power or the place of authority in the organization, people which shows the employees skills and mind sets, while rewards usually determine the motivation approach used on employees to meet organizational goals. Processes on the other hand often determine the flow of information and how a company responds to changing information technologies (Kates & Galbraith, 2007).

Strategy:

Best buy's slogan is "Pleased to meet you" showing its how dedicated it is to serving its customers needs. Its vision and mission statement is customer focused and employee executed with the company striving to solve the unmet needs of their customers using their employees' skills and expertise (Best Buy, 2011a). Best Buys organizational strategy is focused on people and how technologies can be used to improve people's life. It long term goal is to successfully continue growing and keep their shareholders in a market competitive and profitable position at all time. It also wants to be the lead retailer and number one choice across the world with a work environment for its employees that are focused on excellence in both services to shareholders and to the working conditions. Its goal is also to have a strong mutually beneficial partnership with their suppliers and maintaining the highest level of integrity in their business dealings (Best Buy, ...

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The solution discusses the fundamental of organization design.

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ABC Company will successfully fulfill their objective if they develop a strategy that will implement the utilization of a highly skilled workforce comprised of IT (Information Technology) professionals. ABC should work towards training and developing advanced technical support technicians to handle all areas of technological difficulties ranging from the most minuscule to complex problems. ABC must reformulate and restructure their current organization to meet the demands of an increasingly changing business structure. As a result of the progression of time and technological advancements, it is imperative for ABC Company, to remain current on existing and future trends in technology in an effort to adequately apply troubleshooting techniques to solve computational problems within the educational framework.

ABC Company will successfully fulfill their objective if they develop a strategy that will implement the utilization of a highly skilled workforce comprised of IT (Information Technology) professionals. ABC should work towards training and developing advanced technical support technicians to handle all areas of technological difficulties ranging from the most minuscule to complex problems. ABC must reformulate and restructure their current organization to meet the demands of an increasingly changing business structure. As a result of the progression of time and technological advancements, it is imperative for ABC Company, to remain current on existing and future trends in technology in an effort to adequately apply troubleshooting techniques to solve computational problems within the educational framework.

According to Gareth Jones (2004) the inevitability of growth increase in most organizations lead to differentiation of organizational functions which is a pertinent source of organizational development that will identify specific areas needed to fulfill ABC's main objective, such as;

?Support functions-"facilitate an organization's control of its relations with its environment and its stakeholders" (Jones, 2004).

?Production functions-"manage and improve the efficiency of an organization's conversion processes so that more value is created." (Jones, 2004).

?Maintenance functions-"enable an organization to keep its departments in operation. Maintenance functions include personnel, to recruit and train workers and improve skills." (Jones, 2004).

?Adaptive functions-"allow an organization to adjust to changes in the environment." (Jones, 2004). This segment is critical to the forward movement of an organization in which case the resistance to change is prevalent.

?Managerial function- "facilitate the control and coordination of activities within and among departments." (Jones, 2004).

Stability

Organizational instability is an ongoing problem within most companies, however, ABC has an advantage of ensuring that their organization possesses a stable working environment. Innovation is a fundamental element in this process for the reason that the cultivation of innovation is what drives increased productivity levels. "In the long run, the only reliable security for any company is the ability to innovate better and longer than competitors. According to Peter Drucker, 'Innovation is the effort to create purposeful focused change in an enterprise's economic or social potential.'" (Davila, Epstein, and Shelton 2006). Innovation and the implementation of it is a significant factor that promotes enhanced levels of organizational performance, consumer/client sustainability and shareholder wealth maximization.

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