Organizational Structure of Metro: Cash & Carry

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Different color in the diagram describes different levels in the management structure of an 
organization. Organizational Structure is the internal, formal framework of a business that 
shows the way in which management is linked together and how authority is transmitted. 
A   typical   business   structure   is   one   that   is   based   on   departmental   lines   and   these 

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 departments are divided according to function of the type of work carried out that can be 
illustrated by means of an organizational structure.

The chart displays a number of important segments about the internal organization of the 
business. It shows:

• Who is the decision­maker

• The formal relationships between different people and departments­ Know how 
of   the   supervisors   and   their   sub­ordinates.   It   describes   how   the   chain   of 
command follows.

• Formal channels of communication both vertical and horizontal­ elaborates the 

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communication linkage with the right people, in an organization.

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• The number  of subordinates reporting  to  each  more senior manager­ Span  of 

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control.

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       Metro, being one of the finest wholesale departmental stores among various other mega 
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marts   like   Hyperstar   and   Makro.   Metro   has   been   undoubtedly   able   to   retain   its   excellent 
service and great market share in a perfect competition, even through the dark periods of high 
recession in Pakistan. Added to it, the right Implementation of 6 functions is a key to their 
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success. There 6functions are the tasks of the management in any organization and effective 
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works on these functions can really the management to help its goals. These include; Planning, 
organizing, staffing (or recruitment), leading and Controlling.

Planning is considered to be soul of management functions, as it establishes a bridge to all the 
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tasks that the managers need to do. First of all, it involves defining;
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• Goals (Desired outcomes)

• Plans (a strategy of how to achieve goals)
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The term is also used to describe the formal procedures used in such an endeavor, such as the 
creation of documents, diagrams, or meetings to discuss the important issues to be addressed, 
the objectives to be met, and the strategy to be followed.  Planning provides directions to 
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managers and non­managers alike. For a store like metro, it is important for them to plan the 
effective use of their resources, both financial and human, and at the same time making sure 
that all their tasks are accomplished. For instance, it is necessary for them to check the stock 
levels so that incase of the level meets the buffer level, it can ordered at the right time ­ in 
quantitative terms. Apart from just to plan about the supply and demand of metro, the metro 

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 management has some other tasks as well. They also plan which stocks to be kept; the prices 
need   to   be   set,   advertising,   communication   with   suppliers   and   constant   update   from   the 
market that is being target. At the same time metro not only plans about its core operations, 
but at the same time, also plans to overcome the hurdles laid by the other competitors in the 
market   and   also   planning   a   counter   strategy   for   it   as   well.   It   is   evident   that   for   any 
organization planning plays a vital role in defining strategies, the company’s long life and its 
success, both in short and long term.

The second task performed by a management of a firm is  organizing.  It basically means to 

structure work and processes of a firm to accomplish its goals and objectives. This is basically 
how managers design an organizational structure. After the planning is done for a firm, the 
most important step in execution of that process is the arrangements and its pre­requisites. 
Particularly metro defines its stages of processes through which a task is completed. Added to 
it, it also has a devised plan for what resources are to be allocated on it, where to perform the 

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task, who is responsible for it and most importantly, when to perform the tasks. An objective, 

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for   instance,   increasing   market   share,   metro’s   management   conducts   by   breaking   it   into 

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smaller tasks, and then assigning the specific department for each of the sub­task. It helps the 

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organization   in   better   co­ordination,   application   of   ‘division   of   labour’   helps   in   greater 
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efficiency and most importantly, releasing of the pressure from just one department.
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The third and probably a very important function is  staffing.  It means to recruit the right 
people for the right job according to their skills. The recruited people should be responsible, 
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aware of their department’s needs and requirements. This part is a very critical task because 
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the   people   you  hire   runs  the   organization;  department  wise.  It  deals  with   the   concept  of 
division   of   labor.   Like   in   Metro,   there   are   many   departments   ranging   from   electronics   to 
bakery section. Now the part staffing plays here is it ensures that the one most capable and 
comfortable with electronics should work in electronics departments and henceforth. Staffing 
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is also concerned with the training and refresher courses given to its employees. Suppose you 
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have 50 customers’ altogether; 40 are demanding a specific product while the remaining 10 
are   demanding   another   product;   Now   it   is   up   to   the   staff   to   change   its   inventory   level 
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according to the customers demand and to convince them at the same time, is the other skill 
they   need   to   have.   All   of   these   skills   come   under   staffing   (or   recruitment)   that   the 
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management needs to do.

The   forth   function   of   the   management   in   order   to   work   effectively   &   cohesively   towards 
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organizational   objective   is  leading.  Organization   cannot   achieve   its   tasks   unless   it   is 
commanded   by   someone   who   possesses   leadership   qualities   like   charisma,   exceptional 
communicational skills, responsibly ethical and confident. Management here plays a keen role 
in providing leaders (or managers for tasks or departments) so as to keep a check on the 
performance of the workforce and at the same time, keep them efficient as well as effective. 

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 For   instance,   considering   metro,   for   each   department   there   is   different   type   of   workforce 
employed, as for the electronic department and grocery department. Metro here employs a 
team leader or as they say, a department head who could keep a check on their assigned 
department. It helps them in keeping a check and balance of the department, and also that 
the manager is well aware of the things or factors his/her workforce that is going to drive 
them properly. So the manager, in accordance to that, make them work in the environment, in 
the ways, their workforce wants to. It can be determined from the metro example that the 
leadership, which is acceptable and friendly to the workforce, which considers them important 
and the same time work exactly the same way the workforce wants it to be, results in keeping 
a check and balance on them. And also, contributing to its overall increased efficiency. Here 
the question rises that how do we get to know about the efficiency? Efficiency is actually 
measured by comparing plans with the actual. When a strategy fails to work it is revised and 
then implemented again. Here, now, Along with leading management plays a vital role of 

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Controlling.  It means checking progress against plans, which may need modification based on

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feedback. It is an important function because it helps to check the errors and to take the corrective

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action so that deviation from standards are minimized and stated goals of the organization are achieved
in desired manner. Someone should be there to keep an eye on the work that is going on. How

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supervisors are dealing with the customers are they giving full time to customer till they are satisfied
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with the service. Checking the targets of sale whether it have been achieved or not?

Me_maria_osman@hotmail.com
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