Question

An online retailer of unique home decor items has a unique company culture. Employees are expected to be creative, to innovate and create change, and to deliver excellent customer service. Customer service associates take new product suggestions from customers and work with designers and production team members to make some of the customer suggestions a reality. As a result, the company is highly responsive to customers, and employees are highly empowered. Which of the following aspects of organizational design would fit best at this company?

a) centralized with a line and staff structure
b) centralized with a matrix structure
c) decentralized with a matrix structure
d) decentralized with a line and staff structure

Answer 1

The best organizational design for the company that prioritizes creativity, innovation, and customer service is a decentralized structure with a matrix organization, as it supports employee autonomy and interdepartmental collaboration.

Step-by-step explanation:

Given the unique company culture of the online retailer that emphasizes creativity, innovation, and excellent customer service, with a responsive structure where employees are empowered to make decisions based on customer feedback, the most suitable aspect of organizational design would be (c) decentralized with a matrix structure. A decentralized structure allows employees the autonomy to make decisions and act on customer suggestions quickly, supporting the culture of innovation and responsiveness. The matrix structure facilitates collaboration among various departments, such as customer service associates, designers, and production team members, to turn customer suggestions into real products effectively. This structure fosters an environment that aligns with the company's goal of being highly responsive to customers and empowering employees to be innovative.