Central office was in Atlanta handled It was a standard physical layout Head office in Atlanta handled: Personnel, merchandising, financial, purchasing, real estate and legal affairs i.e Functional Grouping Individual stores: organization divided into regions- southern, south-eastern and north eastern regions i.e. Divisional Grouping Each region was divided into 5 districts with 15 stores A district director for them District further divided into 4 lines of authority i.e again Functional Grouping
The proposed design is Divisional Grouping: This will solve the problem of slow adaptation to change since each division will be dedicated to a particular type of work, while the middle levels were reduced. It provides flexibility and change since each unit is smaller. It will decentralize the decision making
It is also a Horizontal structure Every manager would report to store manager so he would be incomplete change of the store Hence the district supervisor can expand his role from supervising to training and development There will be a direct contact between managers and employees in various departments i.e. liaison role created
The creation of a single store manager role will give him complete control Hence cooperation would improve
They could expand their line to non grocery items For each line they add, a separate department manager so as to maintain horizontal structure The should also use new technology. An IT coordinator can be employed for each district to help its implementation
Thus C & C needs to focus more on the liaison roles between departments Employ a decentralized structure Improve the horizontal linkages