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Organizational structure refers to the formal arrangement of jobs, responsibilities, authority, communication channels and reporting relationships within an organization. In retail management, organizational structure is particularly important because retail businesses involve several interconnected activities such as purchasing, merchandising, inventory management, store operations, sales, customer service, marketing, finance and human resource management. A suitable structure helps a retail organization coordinate these activities, establish accountability and ensure effective communication. Three important forms of organizational structure are Line, Line-and-Staff and Matrix structures. The line organizational structure is one of the simplest and oldest forms of organizational structure. In this structure, authority flows directly from the top level of management to lower levels in a vertical chain. Every employee generally has one immediate superior and receives instructions through a clearly defined chain of command. Responsibility and authority are concentrated in the hands of line managers, who are responsible for making decisions and achieving organizational objectives. In a retail organization, the chief executive or owner may occupy the top position, followed by regional managers, area managers, store managers, department managers and sales employees. For example, a store manager may supervise department managers, while department managers supervise sales associates. Instructions regarding sales targets, customer service, store discipline and operational procedures flow downward, while information regarding sales performance, customer complaints and operational problems _________ ___ _________ ________ __________ _____ ______ ____ ____ _______ ____ ___.
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