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Organisational Structure of Costco

Organisational Structure of Costco

Discuss Organisational Structure of Costco within the Human Resources Management (H.R) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Costco (NASDAQ: COST), is the largest membership warehouse club chain in the United States. As of July 2009 it is ...

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Organisational Structure of Costco
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Netra Shetty
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netrashetty
Student of PGDM at Mats Institute of Management and Entrepreneurship
Bangalore, Karnataka
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Organisational Structure of Costco - February 4th, 2011

Costco (NASDAQ: COST), is the largest membership warehouse club chain in the United States. As of July 2009 it is the third largest retailer in the United States, where it originated, and the ninth largest in the world.[1][2] As of October 2007, Costco is the largest retailer of fine wine in the world.[3]

CEO
James Sinegal

Chairman of the Board
Jeffrey Brotman

Director
Benjamin Carson

Director
Daniel Evans

Director
William Gates

Director
Susan Decker
Director
Jill Ruckelshaus

Director
Charles Munger
Director
Jeff Raikes

Director
Hamilton James
Director
Richard Libenson

Director
John Meisenbach
CFO
Richard Galanti
Merchandisintg
DS
Chief Information Officer
PM
Southwest & Mexico Divisions
DZ

Construction, Distribution &...
Thomas Walker
President & COO
CJ
Administration & Legal
JB
Administration, Operations
FL
Canada
LW
E-Commerce & Publishing
GR
Non-Foods
DK

Human Resources & Risk Manag...
John Matthews
Information Systems
DB
Control
DP

Northern Division
John McKay
Midwest Region
JG
Northeast Region
JL

Southeast Region
Roger Campbell
Merchandising, Foods & Sundr...
TR
Merchandising, Fresh Foods
JL
Industries & Development
RC
Bay Area Region
DH
Los Angeles Region
BG

Mexico
Jaime Gonzalez
San Diego Region
RH
Global Operations Distributi...
RD
Construction
AM
Pharmacy
CB
Depot Operations
JT

International Operations
James Murphy
Eastern & Canadian Divisions
JP
Eastern Canada
PR

Western Canada
Russ Miller
Infrastruction Services
SW
Information System Developme...
JR
Telecom
DS
Infrastructure
TB


Centralized, hierarchial organizations work about as well as the old Soviet Union. Despite all the evidence, I am still appalled by the number of variations on the centralization themes I still keep smacking into. What makes things even worse is how senior managers in these dysfunctional organizations proclaim empowerment, participation, teams, leadership, trust, and the like. Then they take partial measures while expecting total success. They liberate parts of their organizations while limiting other parts. They push hard with one foot on the accelerator while also pushing hard with their other one on the brake. Their words say "you're empowered". Their actions say "you're empowered as long as you get approval first". These dysfunctional organizations end up trying to go in two opposing directions at once. I once halted an executive retreat and everybody went home after the group of seven division presidents and corporate staff vice presidents couldn't agree on whether their values were centralization or decentralization. Trying to do both at once was ripping the organization apart. The CEO never could decide which direction he wanted to commit to. He was eventually fired as frustrations and infighting rose while organization performance fell.

Most centralists don't set out to deceive anybody. In their heads they know that high degrees of involvement, participation, and autonomy are key elements in high organization performance. But in their hearts, they still crave orderliness, predictability, and control. That's why they cling to such anachorisms as strategic planning. It's part of their futile search for a master plan that can regulate and bring a sense of order to our haphazard, unpredictable, and rapidly changing world. Our equally outdated accounting systems give centralists plenty of reinforcement. For example, hard financial measures can clearly show that consolidating and centralizing support services and functions saves money and increases efficiency -- at least on paper. What don't show up are the alienation, helplessness, and lack of connections to customers or organizational purpose that mind-numbing bureaucracy brings. The energy-sapping and passion-destroying effects of efficiencies may save hundreds of thousands of dollars. But traditional accounting systems can't show the hundreds of millions of dollars lost because of lacklustre innovation, mediocre customer service, uninspired internal partners, and unformed external partnerships.
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Re: Organisational Structure of Costco
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Vinod Gupta
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Re: Organisational Structure of Costco - August 25th, 2014

Thanks for uploading..Continue the good work....
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Pandey Bhoopendra
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Re: Organisational Structure of Costco - May 28th, 2015

Hello Netra,

I would love enlighten with some more information about Costo ie: SWOT analysis of Costco:

Here is the link which illuminate your mind and clear the concept about how Costo has managed to build such a wonderful organisational structure:

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