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Reverse Hierarchy
A reverse hierarchy (or inverted pyramid) is a conceptual organizational structure that attempts to "invert" or otherwise "reverse" the classical pyramid of hierarchical organizations. In the proposed structure, key decisions are made by the employees in direct contact with customers, while progressively senior management positions provide support and help to the customer-facing employees. History and examples The term "invert the pyramid" is attributed to Jan Carlzon, who transformed SAS airlines by giving front line employees authority to make decisions on the spot.Carlson, Moments of Truth, Harper Business, 1989 The creation of the reverse hierarchy has been attributed to the Nordstrom retail organization. Other notable adopters of this structure include the United Parcel Service United Parcel Service (UPS, stylized as ups) is an American multinational corporation, multinational package delivery, shipping & receiving and supply chain management company founded in 1907. Orig ...
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Organizational Structure
An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure affects organizational action and provides the foundation on which standard operating procedures and routines rest. It determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization's actions.Jacobides., M. G. (2007). The inherent limits of organizational structure and the unfulfilled role of hierarchy: Lessons from a near-war. Organization Science, 18, 3, 455-477. Organizational structure can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizations are a variant of clustered entities. An organization can be structured in many different ways, depending on its objectives. The structure of an organization will determine the modes in ...
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Hierarchical Organization
A hierarchical organization or hierarchical organisation (see spelling differences) is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. This arrangement is a form of a hierarchy. In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. This is the dominant mode of organization among large organizations; most corporations, governments, criminal enterprises, and organized religions are hierarchical organizations with different levels of management, power or authority. For example, the broad, top-level overview of the general organization of the Catholic Church consists of the Pope, then the Cardinals, then the Archbishops, and so on. Members of hierarchical organizational structures chiefly communicate with their immediate superior and with their immediate subordinates. Structuring organizations in this way is useful partly because i ...
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Employee
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties. Employees in some sectors may receive gratuities, bonus payments or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits may include health insurance, housing, disability insurance. Employment is typically governed by employment laws, organisation or legal contracts. Employees and employers An employee contributes labour and expertise to an endeavor ...
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Nordstrom
Nordstrom, Inc. () is an American luxury department store chain headquartered in Seattle, Washington, and founded by John W. Nordstrom and Carl F. Wallin in 1901. The original Wallin & Nordstrom store operated exclusively as a shoe store, and a second Nordstrom's shoe store opened in 1923. The growing Nordstrom Best chain began selling clothing in 1963, and became the Nordstrom full-line retailer that presently exists by 1971. The company founded its off-price Nordstrom Rack division in 1973, and grew both full-line and off-price divisions throughout the United States in the following years before expanding into Canada in 2014. In the American market, it competes with department stores including Bloomingdale's, Macy's, Neiman Marcus, and Saks Fifth Avenue. Early history John W. Nordstrom was born on February 15, 1871, in the town of LuleƄ LuleƄ ( , , locally ; smj, Luleju; fi, Luulaja) is a city on the coast of northern Sweden, and the capital of Norrbotten County, ...
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United Parcel Service
United Parcel Service (UPS, stylized as ups) is an American multinational corporation, multinational package delivery, shipping & receiving and supply chain management company founded in 1907. Originally known as the American Messenger Company specializing in telegraphs, UPS has grown to become a Fortune 500 company and one of the world's largest shipping couriers. UPS today is primarily known for its ground shipping services as well as the UPS Store, a retail chain which assists UPS shipments and provides tools for small businesses. In addition, UPS offers Air cargo, air shipping on an overnight or two-day basis and delivers to post office boxes through UPS SurePost, a subsidiary that passes on packages to the United States Postal Service for Last mile (transportation), last-mile delivery. UPS is the largest courier company in the world by revenue, with annual revenues around US$85 billion in 2020, ahead of competitors DHL and FedEx. UPS' main international hub, UPS Worldport i ...
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