Patagonia's organizational structure resembles that of a functional structure, where the major functions of the firm are grouped internally. Because Patagonia is a small organization employing some 1,200 employees and is privately held, there is no need for a more complex organizational structure. Since the company was founded, it has grown and evolved from utilizing a simple organizational structure to employing its current functional organizational structure.
The top authority in Patagonia's organizational structure is CEO Casey Sheahan. As the organization's leader, he is responsible for addressing problems within the organization's functional areas and coordinating the integration of all the functional areas. Next in the hierarchical line are the company's Vice Presidents, which include the Chief Financial Officer, the Vice President of Production, the Vice President of Marketing, and the Vice President of Product Design and Merchandising, just to name a few. These senior level management classes are responsible for reporting to the CEO.
Patagonia's Directors make up the next level of management, including the Director of Quality, the Director of Fabric, and the Director of Environmental Analysis. The CEO, Vice Presidents, and Directors all work closely with one another, which helps to flatten out the organizational structure of the company. The functional structure of Patagonia provides for a high level of centralization that helps to ensure integration and control over the firms activities and functional areas.
Hey Hailey, great writing! i am working on an academic essay about Patagonia organisational structure and culture, so do you have any other source to support Patagonia's organisational structure? Thank you, Linda
ReplyDeleteI think matrix structure is the best it comes to illustrating responsibilities. You can find various examples of different org chart structures including hierarchy, flat and matrix in the diagram community of Creately Org Chart Maker
ReplyDeletePatagonia's organizational structure reflects its commitment to environmental and social responsibility. The company adopts a flat hierarchy, encouraging open communication and collaboration. Its decentralized approach empowers employees to contribute to decision-making, fostering a sense of ownership. Patagonia's functional departments, such as design, marketing, and sustainability, work cohesively to integrate ethical practices into every aspect of the business. The company's unique blend of a mission-driven core and a flexible organizational structure enables it to prioritize sustainability while maintaining operational efficiency. This structure aligns with Patagonia's values, reinforcing its dedication to corporate responsibility and creating a positive impact on both people and the planet.
ReplyDelete