 LEARNING CHECK:

Name of student(s): Jemelyn Tesara Date submitted:

Instructor: Mrs. Richel J. Gabutin-Jacela Activity No.: 3 Score:

 Study, Discuss and answer the Questions.

1. Discuss the scope of responsibility of each managerial level. What should the CEO do
in case of gaps and overlaps in the management tasks?

Answer: First, the top-level managers. They are the board of directors, president,
vice president and CEO. These managers are responsible and have a authority to
control and oversee the entire organization. They develop and nourish the goals,
strategic plans, company policies and making decisions for the direction of their
business. Top-level managers are broad to stoke their strategic plans in the
organization and they focus on the big picture. They often high stress and high
influence roles within the organization. Second, middle-level managers, these are the
general managers, branch managers and department managers. They devote more
time to organizational and directional functions than top-level managers. Their roles
and duties can be classified as executing organizational plans in conformance with
the company’s policies and the objectives of the top management. They define and
discussed the information and policies from top management to lower management
and they give inspiration and provide guidance to low-level managers towards the
better performance. Their functions are designing and implementing effective group
and intergroup work and information systems, they define and monitor the group
level performance indicators, they diagnosed and resolve the problems within in
among work groups and they design and implementing reward system to support
cooperative behaviour. They may also communicate upward by offering suggestions
and feedbacks to top managers. Because they are more involve in day by day work in
in the company, they can provide valuable information to top managers that will help
to improve the organizations performance using a broaden and more strategic view.

2. Differentiate AUTHORITY, RESPONSIBILTY AND ACCOUNTABILITY. Which can be

delegated and which cannot be delegated? Justify.

Answer: The differences of these three are, authority is the process of controlling
and you have a power toward others. Authority has a rightful power to command or
to act. It is applied in managerial jobs where you can use as to command your
subordinates to act in a particular manner. While responsibility is an obligation of an
individual to perform their assigned duties and task. Responsibility is an important
characteristic to be able to achieve their effective result that mutually determined by
the participation of superior and subordinates. While accountability is an obligation of
willingness to accept responsibility or to account one’s action. Accountability is about
of ownership and initiative. This means that when an employee says that they will do
something to follow and get it done. Authority could be delegated because this is one
of the major elements in an organization where you’re the one who can influence
your people at business; however, responsibility can be shared but cannot be
delegated. Accountability neither can be shared nor delegated. These three terms go
 together. Authority and responsibility follow each other. Responsibility without
authority is a meaningless as authority without responsibility. Both should be there.
Similarly, accountability follows responsibility. The accountability arises only because
there is an authority, the aim which is to get the decision that carried out with a fuller
responsibility. Likewise, accountability is needed because of objectives that attained.
Accountability makes over conscious of is responsibilities.

3. Describe the various types of Organizational Charts. Under what conditions is each
type appropriate to be used in an organization?

Answer: The various types of Organizational Chart are hierarchical, matrix and flat
or horizontal organizational chart. The first one is hierarchical organizational chart,
this is the most common type of chart and it gives rise to the synonym of hierarchy
chart. A hierarchy is where one group or a person is at the top, while those with less
power are beneath them, in the shape of a pyramid. Think of a monarchy with a king
and queen at the top or in an organization with CEO at the top with hierarchy,
members where typically communicate with the person they report to and anyone
who reports directly to them. Second, matrix organizational chart. This is usually only
seen when individuals have more than one manager. For example, an organization
could have a team of graphic designer. The graphic designers are also working on
other projects that are likely headed by a separate project manager. In this case, the
graphic designers will have two managers. Lastly, flat or horizontal organizational
chart has a little or no levels of middle management and typically consists of two
levels; the top administrators and the workers. In companies like this, the workers
have more responsibility and are more directly involved in decision-making.
Reference: (www.lucidchart.com/pages/tutorial/organizational-charts)

 APPLICATION EXERCISE:.
1. Look for three (3) different types of business organizations and identify the
management hierarchy level in each of item. List the functions of each level in each
of the organization.

Document and/or summarize responses in less than 200 words.

THREE TYPES OF BUSINESS ORGANIZATIONS AND ITS MANAGEMENT HIERARCHY

LEVEL:

1.) Samsung’s Organizational Structure Type

Samsung has a product-type divisional organizational structure. This structure type uses
product categorization as the basis for determining which resources and business operations
belong to certain divisions, such as the company’s Device Solutions division. The entire
corporate structure is unified via Samsung’s headquarters, which are located in Seoul. Strategic
management directions from the corporation’s headquarters are implemented through strategic
objectives specific to the structural divisions’ contexts, such as the context of the U.S. market for
consumer electronics. Samsung’s corporate functions have the following main characteristics:
1. Product-type divisions
2. Centralized corporate hierarchy
3. Geographical groupings

 Product-Type Divisions. Samsung’s organizational structure’s main characteristic is its

product-type divisions. Each division is a group of resources and operations that represent a
product category, such as resources and operations for the production, distribution, and sale of
consumer electronics. The corporate structure’s emphasis on technological innovation and
product development in these divisions helps in achieving Samsung’s corporate vision and
mission statements. The technology conglomerate may add, merge, or disband divisions,
depending on current business needs and the development of the organization, considering that
further business diversification is possible. The following are the product-type divisions in
Samsung organizational structure:

1. Consumer Electronics
2. Device Solutions
3. IT & Mobile Communications

 Centralized Corporate Hierarchy. Samsung’s corporate structure involves a hierarchical

model, despite its product-type divisions. The corporate headquarters are the most notable
manifestation of this hierarchy, which is part of an organizational design for ensuring that the
conglomerate’s operations are unified and effectively directed towards growth and operational
effectiveness. This characteristic of the organizational structure involves centralization of overall
strategic planning, as well as vertical lines of command and authority that relay strategic
directions from the headquarters to the daily operations in the Consumer Electronics, Device
Solutions, and IT & Mobile Communications divisions.

 Geographical Groupings. Samsung uses geographical groupings or divisions as a minor

characteristic of its corporate structure. In the company’s organizational chart, these
geographical divisions are generally under the product-type divisions. For example, Samsung
Electronics North America is a geographical division within Samsung Electronics, which is a
product-type division. Through this characteristic of the organizational structure, the company
implements region-specific strategies, such as strategies intended for the North American
market for Device Solutions.

Reference: panmore.com/samsung-corporate-organizational-structure-characteristics-analysis

2.) Starbucks Corporation’s Organizational Structure Type

Starbucks has a matrix organizational structure, which is a hybrid mixture of different features
from the basic types of organizational structure. In this case, the structural design involves
intersections among various components of the business. For example, the company’s product-
based divisions intersect with functional groups and geographic divisions, which in turn intersect
with other parts of the organization. The following functions of Starbucks Coffee’s corporate
structure:

1. Functional hierarchy
2. Geographic divisions
 3. Product-based divisions
4. Teams

 Functional Hierarchy. The functional hierarchy feature of Starbucks Coffee’s organizational

structure refers to grouping based on business function. For example, the company has an HR
department, a finance department and a marketing department. These departments are most
pronounced at the top levels of Starbucks’s corporate structure, such as at the corporate
headquarters. This characteristic is hierarchical. For example, the corporate HR department
implements policies applicable to all of the company’s cafés. The functional hierarchy of the
corporate structure facilitates top-down monitoring and control, with the CEO at the top.
Functional groups are responsible for the organization-wide development and implementation
of Starbucks Corporation’s generic competitive strategy and intensive growth strategies.
 Geographic Divisions. Starbucks Coffee’s corporate structure involves geographic divisions,
which are based on physical location of operations. The company has three regional divisions
for the global market: (1) Americas, (2) China and Asia-Pacific, (3) Europe, Middle East, and
Africa. Also, in the U.S. market, Starbucks Coffee’s organizational structure involves further
geographic divisions: (a) Western, (b) Northwest, (c) Southeast, and (d) Northeast. Each
geographic division has a senior executive. In this way, each local manager reports to at least
two superiors: the geographic head (e.g. President of Europe, Middle East, and Africa
Operations) and the functional head (e.g. Corporate HR Manager). This feature of Starbucks’s
corporate structure enables closer managerial support for geographic needs. Each division
head is given flexibility in adjusting strategies and policies to suit specific market conditions.
 Product-based Divisions. Starbucks has product-based divisions in its organizational
structure. These divisions address product lines. For example, the company has a division for
coffee and related products, another division for baked goods, and another division for
merchandise like mugs. This feature of the corporate structure enables Starbucks to focus on
product development. In this way, the company develops and innovates its products with
support through its organizational structure. Such development provides competitiveness that
the business needs, especially in considering the threats identified in the SWOT analysis of
Starbucks Corporation.
 Teams. Teams are used in different parts of Starbucks Coffee’s organizational structure.
However, teams are most visible at the lowest organizational levels, particularly at the
coffeehouses. For example, in each café, the company has teams organized to deliver goods
and service to customers. This feature of Starbucks’s corporate structure enables the
business to provide effective and efficient service to consumers. Team effectiveness is a
major determinant of the financial performance of franchised locations and company-owned
coffeehouses. Starbucks’s corporate culture influences how such team effectiveness is
achieved. The company’s development depends on team-based factors and associated
human resource management strategies.

Starbucks Corporation’s organizational structure has many characteristics. However, the ones
enumerated above are the most significant in shaping strategic management decisions in the
business. Also, different levels of the organization are responsible for maintaining the integrity of
the corporate structure. The structural characteristics identified are the ones that matter most at
the corporate level, involving Starbucks’s headquarters and executive direction.

Reference: panmore.com/starbucks-coffee-company-organizational-structure
 3.) Mc Donalds Corporation’s Organizational Structure
McDonald’s Corporation has a divisional organizational structure. Conceptually, in this
structure type, the business organization is divided into components that are given
responsibilities based on operational requirements. Each division handles a specific operational
area or set of strategic objectives. One of the aims of this corporate structure is to support
autonomy and organizational flexibility in satisfying business needs in different organizational
aspects and markets. McDonald’s corporate functions have the following characteristics:

1. Global hierarchy
2. Performance-based divisions
3. Function-based groups

 Global Hierarchy. McDonald’s Corporation has a global hierarchy to cover all its operations
worldwide. This feature of the organizational structure emphasizes corporate control in the
context of managerial control and direction. For example, McDonald’s CEO directs the
activities of all business areas through this structural characteristic. Mandates and directives
are passed from the CEO down to middle managers, and to the restaurant managers and
personnel in company-owned operations and among franchisees. This feature of McDonald’s
corporate structure is typical of most global business organizations.

 Performance-Based Divisions. Performance-based divisions are the most distinct feature of

McDonald’s corporate structure. Prior to its reorganization on July 1, 2015, McDonald’s had the
following geographic divisions in its organizational structure: (a) U.S., (b) Europe, (c)
Asia/Pacific, (d) Middle East and Africa, and (e) Other Countries & Corporate (OCC) including
Canada, Latin America and Corporate. After the reorganization, the company used
performance as basis for the new divisions in its organizational structure: (a) U.S., (b)
International Lead Markets, (c) High Growth Markets, and (d) Foundational Markets and
Corporate. The United States division provides the biggest regional sales revenues to
McDonald’s. The combination of international lead markets also represents a major chunk of
the company’s revenues. The high-growth markets account for a small minority of McDonald’s
revenues, even though these markets present considerable potential for business growth
based on rapid economic development.

 Function-Based Groups. McDonald’s maintains function-based groups in its corporate structure.

For example, in corporate operations, the company has a People group for human resource
management, and a Supply Chain and Sustainability group for supply chain management and
sustainability endeavors. Each group is under the leadership of a corporate executive or senior
manager. This organizational structure characteristic enables McDonald’s Corporation to
address the basic functions in its business. Groups may be added or changed as the company
grows and its target markets change.

Reference: panmore.com/mcdonalds-organizational-structure-analysis