DEPARTMENT STORE ORGANIZATION: FUNCTIONAL DIVISIONS AND OPERATING SYSTEMS

Abstract

Examines the influence of several size‐related factors on retail management′s choice of the organization′s functional division structure and multiunit operating system based on data collected from a sample of retail department store personnel managers in the United States. Suggests that the retail organization′s size and the number of functional divisions employed are directly related. After nearly two‐thirds of a century, department stores continue to use the basic functional‐division organization developed by Paul Mazur which has been modified into a model that includes: merchandising, publicity and promotion, store operations, finance and control, and personnel. The study further reveals a link between the organization′s size and retail management′s choice of a multiunit operating system. Implications are provided to assist management in evaluating the appropriateness of the firm′s functional division structure and operating system in response to several key factors.

Citation

Lowry, J.R. and Wahlers, R.G. (1993), "DEPARTMENT STORE ORGANIZATION: FUNCTIONAL DIVISIONS AND OPERATING SYSTEMS", International Journal of Retail & Distribution Management, Vol. 21 No. 7. https://doi.org/10.1108/09590559310046031