There are many work tasks to be done in a large organization and consequently the work must be divided up and allocated. In this case we consider what is meant by organization structure and design; consider why it is necessary to structure human resources, discuss how we should set about this enormous challenge and ask how we can make efficient and effective use of human resources in order to attain goals and derive a sustainable competitive advantage. In particular we consider issues associated with bureaucracy and hierarchy. Body Shop grew and with it came particular design challenges. 

 1.What is meant by the terms “Organization”, “formal organization”, “Informal Organization?”

2. What is ORGANIZATIONAL DESIGN and what is its purpose?

3. Duncan (1979) suggested that ORGANIZATIONAL STRUCTURE is more than boxes on a chart. What organization structure/ design really includes in Body Shop and what are the tools typically used to structure organizations?

Case

Body Shop Founded in 1976 by Anita Roddick, The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries, and is the second largest cosmetic franchise in the world. The Body Shop is headquartered in England and is now part of the L'Oréal corporate group. The Body Shop International plc is a global manufacturer and retailer of naturally-inspired, ethically produced beauty and cosmetics products. Body Shop went public in 1985. Leading up to its takeover by L'Oreal (In March 2006, L'Oreal acquired The Body Shop International a U.K. based retail cosmetic brand revered for its ethical values for $ 1.1 billion), the Body Shop International plc was a high-quality skin and body care retailer operating in 52 markets with 2,045stores, spanning 25 languages and 12 time zones. They had one of the most recognizable brands in the world and established a reputation as a socially and environmentally responsible company. The Body Shop is listed on the London Stock Exchange. Total retail sales in 2004/2005 across all The Body Shop outlets amounted to £708.7 million (2003: £672.5 million). Group turnover was £419 million, up 10% from the previous year, and profit before tax increased by 21% to £34.5. The business consisted of a combination of company-owned and franchised markets, and a developing multi-channel service with a direct selling organization -The Body Shop at Home and online retail in the US. At that time the company employed 6,788 people directly, with approximately 14,000 additional employees working within the franchise network and as consultants in The Body Shop at Home and online retail in the US.

Case problem: 

What is organizational structure and why do large organizations need continually to consider the designs of their organization? 

What may be the consequences of a good or bad design for a specific organization?

Answer rating: 100% (QA)

1 What is meant by the terms Organization Formal Organization Informal Organization Organization An organization refers to a group of people who work together with a shared purpose such as a business ... View the full answer