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Org - Chart of Pizza HutOrga

Pizza Hut's organizational structure includes key elements such as work specialization, departmentalization, chain of command, span of control, and centralization/decentralization. Work is specialized into separate jobs to increase efficiency and productivity. Tasks are departmentalized by function, product, or geography to group similar specialists and increase accountability. The chain of command establishes a clear line of authority from top managers down, though computer technology has made communication across the structure easier. Managers aim to have an optimal span of control of 5-6 direct reports to maintain close oversight. Decision-making can be centralized at the top or decentralized throughout to allow faster, more localized problem-solving.

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Hafeez Sabir
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8K views3 pages

Org - Chart of Pizza HutOrga

Pizza Hut's organizational structure includes key elements such as work specialization, departmentalization, chain of command, span of control, and centralization/decentralization. Work is specialized into separate jobs to increase efficiency and productivity. Tasks are departmentalized by function, product, or geography to group similar specialists and increase accountability. The chain of command establishes a clear line of authority from top managers down, though computer technology has made communication across the structure easier. Managers aim to have an optimal span of control of 5-6 direct reports to maintain close oversight. Decision-making can be centralized at the top or decentralized throughout to allow faster, more localized problem-solving.

Uploaded by

Hafeez Sabir
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Organizational Structure of Pizza Hut

Key elements in organizational Chart:

Work specialization Departmentalization Chain of command Span of control Centralization & decentralization

Work specialization
Degree to which tasks in organization are subdivided into separate jobs. Managers also looked for other efficiencies that could be achieved through work specialization:
a. Employee skills at performing a task successfully increase through repetition. b. Training for specialization is more efficient from the organizations perspective.

c. It increases efficiency and productivity, encouraging the creation of special inventions and machinery. Most managers today see work specialization as neither obsolete nor as an unending source of increased productivity. Managers recognize the economies it provides and the problems it creates when carried too far.

Departmentalization
1. Grouping these jobs together so common tasks can be coordinated is called departmentalization. 2. One of the most popular ways to group activities is by functions performed. For example, a manufacturing manager might organize his/her plant by separating engineering, accounting, manufacturing, personnel, and purchasing specialists into common departments. 3. The advantage to this type of grouping is obtaining efficiencies from putting like specialists together. Functional departmentalization achieves economies of scale by placing people with common skills and orientations into common units. 4. Tasks can also be departmentalized by the type of product the organization produces. Procter & Gamble recently reorganized along these lines. Each major productsuch as Tide, Pampers, Charmin, and Pringleswill be placed under the authority of an executive who will have complete global responsibility for that product. The major advantage to this type of grouping is increased accountability for product performance under a single manager.

5. Another way to departmentalize is on the basis of geography or territory. The sales function, for instance, may have western, southern, mid-western, and eastern regions.

Chain of Command
Authority"the rights inherent to management to give orders and expect the orders to be obeyed." The unity-of-command principle helps preserve the concept of an unbroken line of authority. It states that a person should have only one superior to whom he/she is directly responsible. A low-level employee today can access information in seconds that 30 years ago was available only to top managers. Similarly, computer technology increasingly allows employees anywhere in an organization to communicate with anyone else without going through formal channels. Cross functional and self managed teams and the creation of new structural designs make the unity of command concept less relevant

Span of Control
. How many employees a manager can efficiently and effectively direct is an important question. 2. All things being equal, the wider or larger the span, the more efficient the organization. 3. Narrow or small spans have their advocates. By keeping the span of control to five or six employees, a manager can maintain close control.

Centralization and Decentralization


1. In some organizations, top managers make all the decisions. This is highly centralized. 2. There are organizations where decision-making is pushed down to those managers who are closest to the action. This is highly decentralized. 3. Centralization refers to the degree to which decision-making is concentrated at a single point. A centralized organization is inherently different structurally from one that is decentralized. 4. In a decentralized organization, action can be taken more quickly to solve problems, more people provide input into decisions, and employees are less likely to feel alienated.

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