Task Solutions- Hierarchical Organisational Structures: CORP2165

Student Details:
MANAGEMENT 1
Question-(3) Organisational structure allows managers to achieve
organisational goals for their organisation. Choosin …

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Student Details:
MANAGEMENT 1
Question-(3) Organisational structure allows managers to achieve
organisational goals for their organisation. Choosing one organisation that
you are familiar with, critically discuss how their structure can help them
achieve their business objectives
In order to demonstrate the importance of organisational structure to accomplish the business
goals and objectives, ithas been depicted that Amazon is one of the biggest companies which
is incorporating their structure and business in an effective way to accomplish their overall
aims and objectives. For that matter, there are nearly a million individuals employed at
Amazon, which is the world’s biggest eCommerce firm. Global, function-based groupings
and geographic divisions are the order of the day in Amazon’s organisational structure. Top-
to-bottom management of worldwide operations allows the organisation to gain and maintain
acommanding lead in the marketplace (Ross et.al., 2019 ). Hierarchical in nature, Amazon’s
organisational structure includes aspects of function-based and geographic divisions. Amazon
began as alean, flat structure, but as it grew, it became ahierarchical organisation with well-
defined roles and responsibilities. The highest rung of the food chain is headed by agroup of
executives who answer only to CEO Jeff Bezos. These top Amazon executives, collectively
known as the STeam, assist Bezos in communicating his vision and solving challenges at the
highest levels of the corporation while also helping to build the corporate culture.
Large, hierarchical organisations have a reputation for being stiff and unyielding in their
approaches to change. Amazon, on the other hand, does not operate in this manner. As an
eCommerce industry leader, the firm is adaptable and versatile. It is true that Amazon has
sparked arevolution in online markets, as well as worldwide shipping.
Contrary to many other organisations with hierarchical organisational structures, Amazon
maintains ahigh degree of adaptability to the often-changing external marketplace, despite its
enormous size. As a result of its disruptive innovations in e-commerce and worldwide
logistics, the online retail behemoth is also influencing the external business environment.
Maintaining the company’s adaptability is made possible in large part by the effective
management of hybrid project teams (West, 2019 ).
There are anumber of small teams that work on different areas of Amazon’s business. The
‘two pizza rule’ was popularised by Jeff Bezos, the former CEO of Amazon and creator of the
company. In accordance with this guideline, meetings should only be organised in groups
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small enough to feed everyone on only two pizzas. “Two pizza rule” is still in effect under
Andy Jassy, the current CEO of Domino’s Pizza (Rodrigue, 2020 ).
Organizational structure of Amazon allows for substantial control over worldwide E-
commerce activities to be exercised by Amazon.com Design and systems for inter-
organizational interactions are established by an organisational or corporate structure. How
managers in different business units direct and influence operations are determined by, for
example, how the Amazon company hierarchy is structured. Amazon.com, arenowned online
retailer, is required to maintain an organisational structure that supports its increasing global
reach. As Amazon expands its product offerings and diversifies its operations, the company’s
organisational structure benefits as well. There is astrong connection between this structure
and the company’s technical base (Rikap, 2020 ). A company’s capacity to resist the impacts
of rivals like Walmart, Apple, Google, Microsoft, and many more companies with online and
non-online activities is directly tied to the complementarity of its organisational structure.
Structural qualities are critical to e-commerce success because of the competitiveness of the
competition.
Managerial control is made possible by Amazon’s organisational structure. This kind of
control is used to fully execute strategic management efforts. Amazon.com Inc.’s future
product releases in the e-commerce industry are supported by the structure’s features, as the
company diversifies its activities. New organisational components representing a more
diverse firm are intended to capture business demands in future aspects of the corporate
structure.
Amazon’s organisational structure is dominated by function-based groupings. A senior
manager and a team or organization are assigned to each significant business function.
Amazon.com ’s strategic goal is to support effective e-commerce operations management
across the whole firm by having this structural attribute (Culpepper and Thelen, 2020 ). As
Amazon.com Inc.’s Generic & Intensive Growth Strategies demonstrate, this aspect of the
corporate structure helps the firm develop in terms of the simplicity with which it may start
operations in new areas. Geographic divisions are also part of Amazon’s organisational
structure. Groups are arranged geographically and in terms of their commercial objectives in
this way. Amazon.com Inc., for example, divides its e-commerce operations geographically
depending on regional economic realities. Since different markets in different regions have
different difficulties and worries, having this attribute of the organisational structure helps the
MANAGEMENT 3
corporation handle those issues and concerns more effectively and directly helps in
accomplishing the organisational goals in an effective way. This structural trait is handled by
Amazon in astraightforward manner (Ross et.al., 2020 ).
Question-(4) Milton Friedman argued that the primary responsibility of a
profit-making organisation is to make a profit. Critically analyse this
statement
“The Social Responsibility of Business is to increase its Profits,” by Milton Friedman, was
published in the New York Times Magazine 50 years ago this month. The work is as
controversial now as itwas in the 1960s. Friedman’s startling idea heralded the beginning of a
new era in American economic life, one in which “Greed is Good” and the pursuit of
financial gain are the only important considerations. But many others regarded itas arelevant
capitalist manifesto outlining the rightful place of CEOs in our free market economy. Some
people think that enterprises have ahigher “social duty” than governments do, while others
argue that the social purpose of business is to maximise profits at all costs, leaving politics to
deal with other social issues (Ramanna, 2020 ). Most people would generally agree, however,
on one point: our global economy has become more complex in the previous half century,
necessitating the management of several competing goals. As a result, the emergence of
socially responsible solutions to business and investment has shifted the objectives of both
corporate leadership and many investors, regardless of whether they believe in larger societal
goals for company or not.
What made him a household name was the theory that public companies should prioritise
maximising profits and shareholder value above all other considerations, which is now
widely accepted in the business world. According to this view, corporate leaders are seen as
workers rather than owners of the firm. “Make as much money as possible while complying
with their fundamental principles of society,” argues Friedman of shareholders. According to
Friedman, CEOs who are concerned about the well-being of society aren’t doing their duties
as workers. Employees, on the other hand, must always adhere to the wishes of their
superiors when itcomes to their finances (Singh and Misra, 2021 ).
A chief executive’s ultimate goal should be to maximise the amount of money they are able to
return to shareholders, according to Friedman. Individuals may seek the collective good on
their own terms and with their own resources. For Friedman, executives who spend their
riches on social causes have essentially become legislators.
MANAGEMENT 4
Since social responsibility implies accepting the socialist concept that political, rather than
market, procedures should be used to allocate limited resources to alternative purposes,
Friedman explains that this is “the primary rationale (Reavis and Orr, 2021 ). “Additionally,
the analysis presumes that executives are very poorly equipped when it comes to enacting
social change. Even if an investment banker excels at closing transactions, how does it equip
them for the challenge of reducing pollution?
The story of the Frenchman who, at the age of 70, found out that he had been speaking in
prose his whole life comes to mind when Ihear businesses talk about the “social duties of
business in acompletely free market.” It’s not uncommon for businessmen to claim that their
industry has a”social conscience” and tends to take its own obligations to create jobs for the
unemployed, eliminate discrimination, prevent pollution, and any other reformers’
catchphrases, seriously. They believe that they are standing up for free organisation when
they claim that business isn’t just about profit (Irsyadillah and Lasyoud, 2018 ). They are, or
would be, advocating pure unadulterated socialism if they or anybody else took them
seriously. For decades, academic forces have been systematically destroying the foundation
for afree society, and entrepreneurs who speak in this manner are unknowing accomplices of
these intellectual forces.
The “social duties of business” debates are remarkable for their lack of analytical precision
and rigour. To claim that “business” has duties, what does it imply to state? Only human
beings may be held accountable. Even if acorporation is an artificial person, it is impossible
to say that “business” as awhole has any duties, even in the most general meaning of the term
(Weber, 2020 ). Examining the notion of corporate social responsibility begins with asking
who exactly it indicates for. Individual firm owners or corporate leaders are likely to bear the
brunt of the blame. Corporations have been the focus of much debate on social responsibility
in the past, therefore in the following I’ll focus mostly on corporate leaders. It has been a
decade in which socially conscious capitalism has gained significant traction (Ferrarini, 2021 ).
It’s time to take a look at the ESG — environmental, social, governance — a strategy to
investment and development that tries to promote more socially responsible conduct in
corporate boards and investing committees.
MANAGEMENT 5
References
Culpepper, P.D. and Thelen, K., 2020. Are we all Amazon primed? Consumers and the
politics of platform power. Comparative Political Studies ,53 (2), pp.288-318.
Ferrarini, G., 2021. Redefining Corporate Purpose: Sustainability as a Game Changer.
In Sustainable Finance in Europe (pp. 85-150). Palgrave Macmillan, Cham.
Irsyadillah, I. and Lasyoud, A.A., 2018. Does accounting education develop ethical maturity?
Evidence from Indonesia. Accounting and Management Information Systems ,17 (3), pp.462-
483.
Ramanna, K., 2020. Friedman at 50: Is It Still the Social Responsibility of Business to
Increase Profits?. California Management Review ,62 (3), pp.28-41.
Reavis, M.R. and Orr, D.W., 2021. The journey of American capitalism: from stockholders to
stakeholders. American Journal of Management ,21 (4), pp.1-15.
Rikap, C., 2020. Amazon: A story of accumulation through intellectual rentiership and
predation. Competition & Change ,p.1024529420932418.
Rodrigue, J.P., 2020. The distribution network of Amazon and the footprint of freight
digitalization. Journal of transport geography ,88 ,p.102825.
Ross, J.W., Beath, C.M. and Mocker, M., 2019. Designed for digital: How to architect your
business for sustained success .Mit Press.
Ross, J.W., Beath, C.M. and Mocker, M., 2019. Designed for digital: How to architect your
business for sustained success .Mit Press.
Singh, K. and Misra, M., 2021. The evolving path of CSR: toward business and society
relationship. Journal of Economic and Administrative Sciences .
Weber, I., 2020. Origins of China ’scontested relation with Neoliberalism: Economics, the
World Bank, and Milton Friedman at the dawn of reform. Global perspectives ,1(1).
West, E., 2019. Amazon: Surveillance as aservice. Surveillance & Society ,17 (1/2), pp.27-33.

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