Essay on Organizational Structure

Words: 1086
Pages: 5

Organizational Structure

Chipotle’s Organizational Structure
The reporting structure is a very important tool in an organization. This structure is a chart that serves as a roadmap of management levels and positions. Every business has a chain of command and it is structured uniquely, depending on the organization. The structure of an organization, if not built correctly can destroy the organization just like a building with poor architecture. The blueprints clarify and build a strong foundation in which to grow or build an organization. Chipotle is a Mexican Grill Restaurant in the fast food industry that started out with one location in Colorado back in 1993. Today it has just more than 1,400 locations in the United
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The divisional structure within Chipotle is coordinated by standardization and a formalization that is in place. Basically, each level of management is very clear on the activities required by them because they are usually the same duties repeated over and over. Some duties may be scheduled daily, weekly, monthly, quarterly, or yearly. Regardless of the schedule they repeat like a cycle. This standardization also makes it possible for the organization to compare and contrast reports and activities by district and regionally. The statistics and results of these reports and the comparisons give top management information needed to make important decisions for the company as a whole or divisionally. Each division and each business function within the company has clear procedures, and because rules and regulations are clearly written within policies the organization’s formal management can evaluate the performance of both.
The divisional structure requires great communication skills. Chipotle is also a centralized organization where all decisions are made with the top level of management. Management is required to communicate these decisions, goals, and tasks downward to the destined level of management where implementation takes place. If these ideas and tasks were not communicated correctly poor performance and failure may occur. This may also occur if the information communicated upwards the chain of command is incorrect or ignored. The marketing