Wednesday, June 27, 2012

Organizational structure at Directv

In order to reach goals, a firm must have an organized structure in place which allows for easy movements through system processes and provides management the knowledge of the activities of the different divisions within the firm.  In 2001, Directv completely revamped its organizational structure in order to become more flexible and focused in its daily operations while being able to pursue new ventures and reach new goals more rapidly.  The form of organizational structure that best fits Directv is the multidivisional structure.  A multidivisional structure is a form of organization where divisions are organized around product or geographic markets and are often self sufficient in terms of functional expertise.


Often firms will make remarks about how well they treat their employees even though upper management may never even meet people working in entry level positions.  When Mike White became CEO of Directv he wanted to connect with his employees at all levels of the business and find out how they actually felt about working for the satellite giant.  His avenue for accomplishing this was a television show called "Undercover Boss".  For the program, Mr. White would go undercover as an unemployed salesman in an entry level position in order to better understand the culture of the firm and to get a first hand look at how their employees thought they were being treated.  During his stint undercover Mr. White was able to get a better understanding of certain aspects within the business and how his employees deal with certain issues.  Mr White was even able to correct a few inventory and supply problems along the way.   

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