Org Structure A. The Organization

Org Structure a. The organization I have chosen is FedEx. The shipping and logistics conglomerate operates a bureaucratic structure based along several different service lines (Reuters, 2008). Within each service line, there are different geographical units. So the flagship FedEx Express company operates FedEx Express Canada, FedEx Express China, etc. Each of these national units is then broken down by function (FedEx, 2008). The different functions get some operational guidance from the company headquarters, but they do not receive guidance from the conglomerate level.

Exhibit a: FedEx Org Chart

Exhibit B: FedEx Express Org Chart

Within the different functional units, the functions themselves are broken down into their constituent parts. For example, Ground Operations breaks down different functions that are run by different managers.

Exhibit C: FedEx Express: Ground Operations Org Chart

Thus we can see that within each unit, the tasks are broken down and then separated out by geography. A second geographical breakdown is then required for each district in the area. Other functions within Ground Ops do not generally have this last level of breakdown, as they are handled on a more regional level.

When compared with other organizational structures we can see the differences. For example a matrix structure would have more inter-company linkages.

Exhibit D: Theoretical Matrix Structure for FedEx Corp.

The matrix structure therefore would have different geographical regions and different functional groups together on equal levels of the hierarchy. They would work with one another to pursue business goals. The different companies would have a head office in Memphis that coordinates activities with different geographic head offices. The current FedEx structure has some of the same elements - each of these units exists. The major difference is in the nature of the hierarchy. Geographic regions are subordinated to the different functional companies. Additionally, there is no "USA" head office that coordinates between the different functional entities.

Another structure is a geographic structure, which would entirely subordinate the operating units to a central geographic head office. Exhibit E. illustrates this look:

Exhibit E: Theoretical Geographic Structure for FedEx Corp.

This setup places each regional interests ahead of the different operating companies. The companies still exist but they are not operated from one central head office, but rather a series of national head offices.

b. The different functions have impact the organizational structure of FedEx at the operating company level. Each function serves to support the overall operating company. They do this by supporting the different functions and subgeographic groups such as those outlined in Exhibit C. Exhibit B. illustrates the role that each of the different functions plays - they are on a par with Ground Operations in the structure, but perform a staff function.

c. The organizational design at FedEx best serves the company's needs. Despite the company having operations around the world, there is little need for matrix structure. There are several reasons for this. One is that the company's core Express operation requires close coordination globally. The company presents a face to the consumer that is united globally, a function of the global nature of the service. Therefore, it is logical that each operating company be run from one head office, with operations managed at the regional level, because all areas must be working closely together within a given operating company.

Another reason is that most of the operating units are limited to the U.S. And Canada, with only one significant global operation (Express). This removes incentive to develop a matrix structure, because there are only two countries involved, one of which is the lion's share of the market.