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The Nike environment is a two-way, matrix organization, where team members often report into two areas such as geography and a global function. In the Nike brand, teams work across footwear, apparel and equipment product engines. Being a prospector, Nike

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Nike is an organisation working towards developing products that help athletes of every level of ability reach their potential. In its mission statement, Nike expresses that it wants to bring inspiration and innovation to every athlete in the world. Nike is a formal organisation with a clear beginning and a specific goal which is to develop products that athlete reach their potential. A formal organisation has been defined by Schein as: the planned co-ordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through division of labor and function, and through a hierarchy of authority and responsibility (Mullins 2002: 98). The business Nike used to be heavily engaged in is footwear products but it grew and diversifies from a footwear distributor to a global marketer of athletic footwear, apparel and equipment. Along the way, Nike has established a strong Brand Portfolio with several wholly-owned subsidiaries including Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd. Nike is a very competitive organisation, Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of its competitors. With rivals such as Adidas, Reebok, Puma, and others, competing to be the number one sports brand in the world, Nike is operating in an extremely competitive environment. ...read more.


In the Proposed product structure in Figure 1.2, Nike will have more managers than in the Nike matrix structure in Figure 1.1 because it is broken down into the different product divisions and in each product divisions, there are functional teams for each of the product. There will be three functional managers and one division manager who will in turn report to the corporate management. As Nike is thriving in a competitive environment and new market, the structure usually needs to decentralise authority so that managers can react quickly to changing environment. The jobs will be broken down in a way that each division will be given a functional team to work with. This way each specialist will be assigned to each division and both the functional teams and division can relate to one another. Delegation will be present at every level-functional level, divisional level and corporate management level. The advantage of product structure is it accommodates growth easily and this advantage will be useful to Nike because new products can be added to existing divisions with little need for additional learning (McShane and Von Glinow 3rd edition: 458) and it saves time. There is also unity of command in product structure where employee has to report only one superior. ...read more.


As organisation using matrix structure is bound to have conflicts, stress will be place on individual and by using Product structure, it helps to break the dual chain of command and use unity of command. Product structure helps to break the dual chain of command concept and eliminate stress heap upon the individual. Some of individual expectations include job security, satisfying jobs and treatment with respect which are all in Fayol's principles. Organisational expectations are also in Weber's concept of Bureaucracy which is written rules and employees have to follow to uphold the image of the organisation. And if individual expectations of job security, satisfying jobs and treatment with respect are all taken care of, it will pair up with the organisational expectations of not betraying trust and loyalty. This brings us to Maslow's Hierarchy of Needs, people's physiological needs and security needs are very strong. There are also the belongingness needs where individuals needs for socializing and according to Mary Parker Follett; informal groups within an organisation can improve productivity. Esteem needs for individual to feel important and by using Weber's concept of Bureaucracy by rewarding an individual for their hard work will make them feel recognized and an important asset to the organisation. Lastly the self actualisation needs, where individual has the need to be the best they can be and it can be beneficial to Nike as the individual may strive to work harder to realize their potential. ...read more.

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