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The Structure And Organization Of Brown Industries

1188 words - 5 pages

The Structure and Organization of Brown Industries
MGT/230
January 16, 2014
Suzanne Dunham

The Structure and Organization of Brown Industries
Dr. Graeme Edwards said, “It’s not the plan that is important, it’s the planning”. Just like the diversity of people there are equally diverse businesses. Companies are managed and organized in different ways. Each organizational structure has its own management style. The organizational structure and design is determined by the business needs. A very critical management development is the understanding that collaboration is a must. Different departments and divisions must cooperate efficiently with each other in order to succeed. This ...view middle of the document...

Brown Industries is a business that helps other companies expand their business by marketing their companies in an innovative way. Brown Industries is made up of eight divisions consisting of printing, sample, display and fixture, display and wire, creative services, trucking, and distribution. Each division acts like a separate company but has to work together for a finished product. Each division also has its own manager and hierarchy levels. The corporate offices, which consist of finance, customer service, sales, and human resources, are the fundamental parts of the business and serve each division. A large business, such as Brown Industries, which has a complex and dynamic atmosphere has a greater amount of differentiation to manage the multifaceted challenges. Companies that are smaller and simpler, with constant atmospheres like a box company will have a small amount of differentiation. Companies in with middle-of-the-road environments, like a fast food joint, will have middle differentiation. Departmentalization is created when a business, such as Brown Industries, subdivides the company into smaller departments. A few of the approaches to departmentalization are functional, network and divisional. Functional organization work is specific and is assembled according to the business purpose and skill required. According to Bateman & Snell (2011), “the network organization is a collection of independent, mostly single function firms that collaborate to produce a good or service” (p. 295). Brown Industries would be considered divisional. Since the company is diversified, being divisional makes it easier to manage the different products and customers. As a divisional organization, the detached divisions seem like separate companies and labor alone to achieve the objectives of the whole business. A divisional organization would have a purchasing unit for each division, whereas a functional organization would have one central purchasing unit. Likewise, each division will complete a separate inventory, whereas a functional organization would conduct a plant-wide inventory. In a divisional organization separate products can be made under the same company. In a network organization, the company would have to contract those separate works to an outside company in order to fulfill a complete product or service.
The organizational functions, such as finance, sales, customer service and human resources, influence and determine the organizational structure of companies. For example, before hard-surfaces became so popular in this region, Brown Industries simply catered to Dalton, Georgia and the carpet industry. However, when the economy took a plunge in 2008 the carpet industry suffered, Brown sales dropped, and the company’s profit fell. To stop the bleeding executive management decided to cut back on labor but this plan only kept them above water. For the company to prosper, the next step executive management...

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