Organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals. Organizations large and small can achieve higher sales and other profit by properly matching their needs with the structure they use to operate. The three main types of organizational structures are functional, divisional, and matrix structure. Organizations have to pick the structure that will work well with their company. These things do not come all at once overnight, companies have to try and see what works for them.
Caesars’ Entertainment has developed the functional structure. “Functional structure is set up so that each portion of the organization is grouped according to its purpose. In this type of organization, for example, there may be a marketing department, a sales department and a production department.” (Writing, 2014) While every department within the organization is responsible for themselves, they must all work together to make sure the business is successful. The CEO of Caesars’ Entertainment has appointed regional presidents because they are familiar with a specific area. The regional presidents are responsible for targeting the correct market. “Organizational structure provides guidance to all employees by laying out the official reporting relationships that govern the workflow of the company.” (Ingram, 2014)
It has been established that a billion-dollar industry cannot function with only one person making the big decisions. Caesars’ Entertainment has acquired casinos in different parts of the world. In order for the company to be successful, the CEO has to have people on his team that he can trust to lead the industry into the right direction. Mr. Loveman has appointed a Regional President for every division. At every property, Gary Loveman has appointed a general manager, an assistant general manager, and several vice presidents of different departments. The “top” people are responsible for making sure that our mission statement is carried out. They are responsible for making sure that we are hiring the correct people to carry out our mission statement. They are also held responsible when things do not go well within the organization.
While every department is different, they have to work together to make sure that the business is running smoothly. If there is conflict within the departments, this will trickle down to the employees and then to the guest. Every week the general manager hold a meeting with the Harrah’s leadership team (HLT). These meetings are to discuss the events that are going to happen the next week, discuss the department’s service scores, and how every department has to pull together. The HLT is responsible for making sure their employees are communicating with the other departments. These meetings are helpful because it forces every department to communicate with each other.
For example, if promotions has a big event this weekend and they are not comfortable with paying out large transactions. The promotions department has developed a relationship with the cashiering department and cashiering helps out by sending an experienced cashier to assist with the transactions. We have realized that when a guest gives one department a bad score, on the survey, this affects the entire business. “People understand boundaries, who answers to whom and who takes the blame or credit for results.” (Johnson, 2014)
Caesars’ Entertainment focus on their service scores. These scores are received from the guest that they send a survey to. Some of these guest will give the entire property an A but on the other hand, we can have a guest that can have a bad experience with one employee and every one after him will get an F. These are the guest that we like to reach out to. The majority of the time these guest just need someone to talk to. Our general manager believes that if we do not receive an F, there is no room to grow.
“When shifts in the market environment occur, decisions on how to react come slowly as proposed changes are forced to travel through various chains of command. This same situation also stifles innovation. The rigidity of the functional organizational structure makes it a poor fit for dynamic environments.” (Johnson, 2014) The CEO, this year, had to make some changes within the organization. He decided that he had to file bankruptcy and close three properties. After meeting with him, we realized that this was one of the hardest decision that he had to make. He said that he thought long and hard about the people that were about to lose their jobs. He also made us realize that this is a business and the needs of the business have to come first. A lot of people would say that he had no heart after making this decision. When I hear this, I ask what you would do if your business was not making any money. When they think about it this way, they tend to change their opinion of Gary Loveman.
Caesars’ Entertainment is a very diverse organization. We have guest and employees that come from all parts of the world. We value the diversity within the organization. The diversity helps us to meet the needs of everyone. We are in the business of making sure that every guest is made to feel like they are valued. “By analyzing sources of organizational variation, selection, and retention, an answer to an earlier question is suggested: organizations seem adaptive to their environment and it is not only the fittest organizations that seem to survive.” (McGowan, 2004) Caesars’ Entertainment spends millions of dollars on training their employees on excellent customer service skills. This is the trade mark of the business. The customers are amazed at how great the customer service is that they receive.
Functional organization makes for clear lines of communication, lines between departments and jobs, and the line that is the chain of command. Though the functional organizational structure gives employees a sense of belonging within each departmental area, the structure creates space between departments. Communication between them suffers, and with it goes easy coordination and cooperation. An excellent leader makes the individual departments realize that it is not just about them, it is about the success of the organization. Caesars’ Entertainment is known for inspiring grown-ups to play.
Ingram, D.,(2014) Why is organizational structure important Retrieved from http://smallbusiness.chron.com/organizational-structure-important-3793.html McGowan, R., (20040 Enacting the Environment: Organization Persistence and Change Retrieved from http://av4kc7fg4g.search.serialssolutions.com.ezproxy.apollolibrary.com/?ctx_ver=Z39.88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info:sid/summon.serialssolutions.com&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Organizational+design&rft.jtitle=Public+Administration+Review&rft.au=McGowan%2C+Robert+P&rft.date=1980-01-01&rft.pub=American+Society+for+Public+Administration&rft.issn=0033-3352&rft.eissn=1540-6210&rft.volume=40&rft.issue=1&rft.spage=86&rft.externalDBID=n%2Fa&rft.externalDocID=1472510¶mdict=en-US Johnson, S.,(2014) Benefits & Disadvantages of a Functional Organizational Structure Retrieved from http://yourbusiness.azcentral.com/benefits-disadvantages-functional-organizational-structure-9556.html Writing, A., (2014) Different types of organizational structure Retrieved from http://smallbusiness.chron.com/different-types-organizational-structure-723.html