The Organizational Structure of Standard Parking

1204 Words5 Pages
The structure of an organization is very important. Amongst other things, it determines the type of authority used within the management hierarchy. It also dictates the way an organization passes information between the various levels of management. The type of structure an organization chooses is based on factors, both internally and externally, that will directly impact the way the organization is operated. Standard Parking is no exception. The company has successfully established its self as a leader in the parking facility management service for many years now with multiple locations throughout the US and Canada. The level of efficiency that Standard operates under has helped shape their customer base as well as the marketing, finance, and various other departmental structures; therefore, allowing the company to grow year after year. Organizational Structure Standard paring chooses to operate under a functional structure. In a functional organization structure jobs (and departments) are specialized and grouped according to business functions and the skills they require; production, marketing, human resources, research and development, finance, accounting and so forth (). A functional structure works best for standard, because there is not much environmental change in the parking industry. Therefore, the company will not have to adapt to change; making it simple to formulate consistent planning methods. Standard is a simple functioning organization. The service they supply to their customers does not require the company to break down into segregated divisions; therefore, a divisional structure is too complex for them. On the other hand, the company has a similar hierarchy as that of a divisional structure, however, the need to have multiple vice presidents and directors not necessary. A divisional structure works best for an organization that must be
Open Document