Costco Corporate Structure

Organizational Structures and Levels of Authority

Organizational structure dictates an organizations way of arranging roles and people. This structure is arranged in a way to get the best work as efficiently as possible. In smaller companies face to face communication is the norm and formal structure may not be necessary. In a larger company with various layers thee must be very clearly defined lines. Leaders are responsible for the ultimate outcome even if they are not performing the everyday tasks. Leaders determine how to use resources including people. These decisions and process create the organizational structure to meet goals.

In most large organization like Best Buy, it is necessary for employee roles to be clear and include their responsibilities and who their managers are. It is also important to remember responsibilities belong to a role and not to a person. In larger companies, centralized structure allows for more definitive decision-making. With a centralized structure, it is fairly simple for a company to change with growth.

Employee motivation, morale, and organizational culture

Best Buy’s approach to employee satisfaction

Everyone likes to be rewarded for their hard work. A higher than normal starting wage tells an employee, we value you. Providing a generous benefits package also makes employees feel the company values them and wants them to have the best care possible. In recent years, many retailers including Costco have moved towards investing in their employees. By providing more training programs employees feel more comfortable making small decisions, this in turn gives managers more flexibility to handle larger issues. Recent research indicates employee turnover is linked to poor training and poor performance. If an employee feels he/she not doing a good job, there no satisfaction and a lack of motivation. (Ton, 2012, pg.