Fedex Organizational Structure

295 Words2 Pages
Case Study: FedEx BBM 201 Principles of Management Every company must design their organizational structure based on their specific needs. Some companies may need a more formal structure while others operate better with a flexible less restraining configuration. FedEx needs to remain flexible because they have locations all over the world that have their own specific needs. FedEx has a geographical organizational structure. With a geographical organizational structure operations are divided to create divisions in each region they serve.. This type of structure allows each separate organization's offices to operate individually while still adhering to company policies and values. Geographic organizational structure allows for each business unit or office to operate as its own entity based on where it's located. Also, FedEx uses a lot of different technologies which makes it more difficult to manage. The more complicated the technology is the more unexpected events occur. The best way to manage unexpected events is with a flexible structure. It is important for all companies to have an organizational chart to reduce confusion and allow more time and energy to be focused on productive tasks. FedEx has many different departments and locations which may cause confusion for employees. Organizational charts can improve efficiency by making it clear who is responsible for what area of the business. A formal outline of the structure will also give the company a guide to employee qualifications when it is time to promote or create new positions within the organization. Each location has its own set of executives that employees report to. However, FedEx has a large, highly skilled workforce so they encourage employee autonomy and self-control. Because the external environment is uncertain and frequently changing they decentralize
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