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B7783 Module 6 Assignment 2 Scorecard
The Walt Disney Organization Structure
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All over the world, new businesses are being started with the aims of achieving particular goals and objectives. Achieving the set goals and objectives demands the organization to have a clear design plan on how each of the business activities would result in the realization of the set goals. This paper will explore on organization structure design of Walt Disney Company. The paper will also explore on structural characteristics evident from the structure and how effective the characteristics are towards the operations of the company.
Walt Disney Organization Structural Design
Organization design involves a step by step process that defines dysfunctional aspects of workflow, systems, structures, and procedures as well as aligning them to set organizational goals and objectives. The process ensures continued improved technical and human resource side of the business. Walt Disney Company organization design is squarely horizontal. The horizontal organizational design is founded on five strong business units (The Walt Disney Company, 2014). The company is divided into five major business units which include studio entertainment, interactive media, consumer products as well as interactive media and Disney resorts and parks. Business units divisions are further supported by elaborate workforce divisions and specializations. Individuals are allocated to different business units according to their skills and competencies. The approach is embraced to ensure that each of the business units is well placed to achieve the set goals and objectives of the organization.
The horizontal organization structure ensures that the flow of command is short and effective from the topmost level to the bottom level positions. At the topmost level is the CEO position and company chairman position. Critical decisions regarding organization plans originate from the two offices and flow towards other levels within the hierarchy. Lowest levels within the hierarchy are also free to come up with new approaches and strategies although the approval or final verdict remains with the topmost positions. The company uses a strong division approach whereby business units are grouped based on products offered to consumers. The structural design embraced by the company helps capitalize on the competency of various business units.
The Walt Disney Company focuses on their set mission and vision which forms the basic approach to make the company the world leading entertainment and information provider. All the business units are bided together by the mission and vision and thus they always work closely towards the realization of the goals (Institute, n.d.). Despite having different functions and activities every department focuses on ways that would make customers happy. The company has in place a clear strategic plan for how things and done within the company. The strategic plan forms the roadmap towards the realization of the set mission and vision. Every department operates in strict adherence to the strategic plan outlines.
Walt Disney Structural Characteristics
According to Bolman and Deals structural frame, organization structure involves al the architectural design, technologies, systems and structures that are fully aligned to the set organizational goals. The following are some of the main characteristics exhibited by Disney Company structural design.
· Business divisions
· Geographical divisions
· Labor division
Business divisions
Walt Disney Company business division into smaller units or departments forms the primary structural foundation (Ashkenas, Ulrich, Jick, & Kerr, 2015). The move helps each of the unit to focus on a certain product or service or business type. All the business divisions are related or linked using the shared business competitive advantages. The presence of business divisions offers the company a unique opportunity to advance its products diversification agenda. Business divisions help the company establish strong control over its business. Every business unit is headed by a department manager who reports directly to the company CEO.
Business division approach further helps the company to allocate the available human resource needs according to the division’s functional needs. Human resource is allocated based on one’s expertise and job experience. The aspect of dividing the company business further makes the management of the entire business easy since control is done at departments or units level (Sakhatov, 2016). Although every department unit has some smaller units, they are fully aligned with the set organization mission and vision.
Geographical Division
The second feature of Disney organizational structural design involves geographical location. The company fully understands the various differences found within the local, domestic and international market (Institute, n.d.). Every geographical location has its own needs in terms of media content, entertainment, resorts, and parks. The variations are brought about by varying cultural and religious background. So as to attain a competitive edge in while venturing to different locations, the Disney business must address the various variations.
Disney company management acknowledges the needs of their customers in by dividing different the international market into market zones. The markets divisions include Canada and the United States, Asia Pacific, Europe and Latin America and other regions. Market divisions ensure that the company offers tailor-made products for each of the market regions. Tailor-made products, in this case, represent products diversifications based on market needs or preferences.
Geographical division further helps increase the market share for the company. Large market share ensures there is increased revenue generation for the company. Venturing into different markets in the international arena also helps the company to diversify on the business risks in terms of operations (Bateman & Snell, 2011). For instance, if one market zone experiences economic uncertainties, the company is always well positioned to sustain its operation through the good performance of other markets.
Division of labor
At the Disney Company, there is a clear and well-planned division of labor. Company human resource department relies on the division of labor to assign tasks or responsibilities to different people or workgroups (Bateman & Snell, 2011). Division of labor results in specialization within the company whereby individuals and work groups are assigned certain tasks. Labor diversification is essential to Disney Company since it has got many business units that require special talents so as to succeed. Although differentiation is a common strategy used by Disney, the various business units do not operate on their own or independently. Business units fail to operate independently because they all relate to each other in one way or the other. The general relationship that can be derived from the different units is that they all share the same vision of making people happy.
At Disney CEO office and departmental units helps coordinate the overall organizations. The strong control from the topmost office ensures that the company balances the aspect of labor divisions by not allowing exclusive independency. The approach also results in high-quality products and services with almost similar standards across all the markets.
The effectiveness of the selected structural characteristics
First, the aspect of dividing the Disney business into smaller units has been one of the most effective strategies embraced by the company to run its big business of making people happy. The units handle specific function and duties of entertaining or providing information to consumers. The division helps the organization develop innovative ways or strategies for making people happy while making considerable profits (Bateman & Snell, 2011). The different units share the common goal of making people happy thus they keep a close interaction links to achieve the objective. The close cooperation’s are critical towards establishing the development of unique ways of creating memorable customer experience through services offered.
Although every business unit operates on specific functions, the topmost position has perfect control over what happens in every unit. According to Bolman and Deal’s structural frame assumptions the strict control of all levels within the organization is vital for purpose of ensuring efficient coordination of business functions and activities (Sakhatov, 2016). The strong control monitored by CEO office ensures that all the business units and employees operate towards the realization of the set organizational goals. Geographical division structural characteristic also works wonders for the company. The pressure to become a world leader in terms of entertainment and information provision forces the company to venture into the international market without fear.
Venturing into the international market is one of the sure ways to establish a recognized brand across the world. The company structural frame provides guidelines on measures and policies that must be adhered to while implementing the international market approach. The overall organization structure can is horizontal and lean. The lean structure allows effective flow of command and communications from top most positions to the bottom-most positions of the organizational hierarchy. The lean organization structure results in enhanced coordination and performance.
Labor division structure has been very effective towards establishing the most required specialization. Specialization results in enhanced performance since individuals and work groups are allocated functions and tasks according to their expertise and experience. Continuous restructuring of company structural design helps in sealing the gaps that may result in inefficiencies. Labor divisions ensure that employees are allocated duties according to their expertise and experience.
Challenges with the structural design of Walt Disney
Although the Walt Disney has utilized the current organizational structure to create a strong competitive edge in the market, that plan is not without limitations. One of the limitations is that all the business units handle a specific business activity while interacting with other business units (Bateman & Snell, 2011). The strategy seems that every business unit has its own independence which is not the case. The departments are strongly controlled by CEO’s office. Departments can implement new strategies on their own despite how smart the strategies or techniques may seem. They must seek for approvals from the top CEO’s office.
The idea of strong control helps sustain almost same business standards across all the five business units but also result into lack of flexibility. As the Company CEO changing the approach would have been my first priority. I would allow the five business departments to come up with new ways of doing things with minimal influence. The approach would help promote innovation among the employees since their ideas are fully incorporated into the company business. The approach would be effective when all the control measures and standards set at the CEO’s office are shared with each of the departments.
