Essay Example on Organizational Design: Enhancing Business Structure and Efficiency

Paper Type:  Essay
Pages:  4
Wordcount:  930 Words
Date:  2023-03-26

Organizational design is the process of coordinating organizations' objectives and structures in ensuring an effective and efficient output. Corporate design necessitates the business process as well as delivery of services in the improvement of business operations. (Hayhurst & Wills, 2018) argues that the organizational design process not only enhances the designing of a business structure but also serves the role of monitoring and implementing environmental changes that affect a business. The organizational design also serves as an avenue for understanding business resources, the capacity of work, activity analysis, workflow, and the processes involved in the business (Laudon & Laudon, 2016).

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UPS company chain of command is company operations compose of a CEO and a chairman tasked with overseeing operations of the company. Moreover, they are tasked with the creation of new lines in the business operations to enable UPS Company to compete globally. Second, in command is the Senior Vice President of Sales and Marketing charged with the responsibility of product development, customer relationship management, customer service, and directing of electronic commerce. Third, in command is the Senior Vice President of Supply Chain, who is tasked with overseeing the business environment. Fourth, the Senior Vice President of Global Transportation Services charged with managing the international transportation network. Fifth, the Senior Vice President of USP involved with all the companies operations. Sixth the Senior Vice President of Human Resources managing the company Human Resource related tasks (Wilson, 2006).

Centralization of the UPS organization structure has enabled the success and effectiveness of the company. The company has adopted six steps in its practices. The first step is the creation of a formal strategic plan that emphasizes the company's goal and the measures taken in ensuring effectiveness. The second step is to avoid undertaking numerous projects and specialize in providing the productivity of the company. In the third step, the UPS Company engages many of its employees in development planning. This enables knowledge sharing and acquisition of realistic plans for accomplishing a project and faster implementation of the company's projects.

The fourth step is to ensure accountability in the project implementation. The company provides the objectives set are well formulated and guarded by the top leaders. The chief officers are tasked with assigning duties and responsibilities to the board of directors. The fifth step involves sharing information and plans to the UPS employees. The company leaders are to communicate the importance and the strategy to be used in the project. The involvement of the employees ensures everyone is well versed with the plans; for instance, the use of audio-visual tools in the delivery of project information.

In conclusion, the sixth step involves regulating and tracking the progress of the project to ensure effectiveness. This is made possible by the formulation of specific indicators for checking on the project's progress and fall a process carried out every month. UPS Company uses a red, yellow, green tracking system. UPS Company's way of accomplishing its project plan determines the value of the program to the business (Laudon & Laudon, 2016).

UPS Company adopts work Specialization by employing the most talented, suitable and qualified employees. This is made possible by availing resources, training staff, and equipping employees with the knowledge to ensure UPS Company objectives are met. Moreover, specialization of work provides employees in UPS Company have the necessary skills, education to enable the accomplishment of the company's tasks (Kilgore, 2017).

UPS Company formalizes its operations, whereby rules and procedures are incorporated in the management process. Each employee is expected to understand UPS culture, for instance, the working hours are well elaborated and penalties instituted in case of violation of the culture. The understanding of the UPS Company has enabled faster delivery of online products, ensured the increase in productivity and work had been made easier for the employees (Kilgore, 2017).

Summary and evaluation

United Parcel Services Company has adopted departmentalization, which is essential in the maintenance of the company's reputation. This can be observed and fulfilled by aligning the company's strategies, objectives, and mission plans. The UPS, in most of the circumstances, has experienced difficulties in recruiting, diversity, training and retaining employees to ensuring the effectiveness of departmentalization (Laudon & Laudon, 2016). Therefore, UPS has developed measures to ensuring employees are well conversant with the changing business world and the provision of employee training to enhance efficiency in the company.

Furthermore, UPS Company recruits external employees to work part-time to promote the living standards of the community. The company also needs to employ a qualified supervisor that guides and trains the employees on the use of computers in the handling of the companies tasks (Rovelli & Rossi-Lamastra, 2018). This will enable the employees to grasp the best experience in the company and become competent in the job market. Therefore, UPS employees are provided with systems, training, and useful tools that are vital in the provision of the best services to customers (Hayhurst & Wills, 2018).


Hayhurst, R., & Wills, G. (2018). Organizational design for marketing futures. Routledge.

Kilgore, T. (2017, February 01). UPS stock suffers the most significant drop in 2 years as the e-commerce surge is still causing problems. Retrieved April 22, 2018, from

Laudon, K. C., & Laudon, J. P. (2016). Management information systems: managing the Digital Firm (14th ed.). Boston, MA: Pearson.

Rovelli, P., & Rossi-Lamastra, C. (2018). Collecting data on TMTs' organizational design: good practices from the StiMa project. Economia e Politica Industriale, 45(2), 175-213.

Wilson, T. V. (2006, November 01). How UPS Works. Retrieved April 23, 2017, from Fact Sheet. (n.d.). Retrieved April 23, 2018, from

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