Current Innovation Structure at Toys R Us
Toys R Us has incorporated a traditional two tier organizational structure, which has only direct vertical relationships between diverse levels within the company (‘Toys R Us Organizational Chart’, 2018). While this approach is essential in clarifying and simplifying accountability, authority and responsibility, the organizational structure functions as an impediment to innovation. Notably, the structure functions effectively within small organizations; however, as the organization grows larger, it becomes ineffective. This is because it tends to overload main specialists (Schell, 2017). The structure does not embrace the concept of expanding and integrating more specialists within each area. Therefore, the current specialists tend to be overpowered with a lot of work, which limits the possibility of innovation and if it occurs, it only does so in limited extensions. Furthermore, the organizational structure requires the managers to become experts in several fields (Schell, 2017). This approach hinders the managers from focusing on specific ways to improve specific areas within the firm due to being overburdened with a lot of work.
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Selected Organizational Structure
The proposed organizational structure is the center of excellence approach due to its ability to foster positive organizational outcomes, especially in innovation. This model provides a framework for several processes, policies, and procedures, which are essential in improving the interactions between various organizational stakeholders (Franks, 2014). It is able to achieve this because of the cross-functional and enterprise perspective that the model adopts. This makes it easier for IT to not only be integrated within the organization but also function effectively within every department. Furthermore, the COE model allows an organization to tap into the IT engagement model effectively in terms of the business activity and process area (Franks, 2014). The engagement model will enable the firm to retool in order to improve consumer satisfaction.
- Franks, B. (2014). The analytics revolution: How to improve your business by making analytics operational in the big data era. New Jersey: John Wiley & Sons Inc.
- Schell, J. M. (2017). Private equity funds: Business structure and operations. New York: Law Journal Press.
- Toys R Us Organizational Chart. (2018). The Official Board. Retrieved from https://www.theofficialboard.com/org-chart/toys-r-us-3
