Tuesday 26 November 2013

Is the Organisational Structure effective?

Warren Buffett’s Structure of Organisation
  • There are several foundations/ organisations, which were created by the Buffett family:
    •   The Susan Thompson Buffett Foundation
    •   Howard G. Buffett Foundation
    •   The Susan A. Buffett Foundation
    •   The Novo Foundation
  • The Susan Thompson Buffett foundation was formerly named The Buffett Foundation but was then changed in honour of Warren Buffett’s wife in 2004 after she had passed away.
    •   Something really special about the organisations is that, they do      not accept voluntary requests; instead they seek out worthy            beneficiaries on their own.
    •    All the donations made by Warren Buffett are from his personal      holdings in Berkshire Hathaway.
  • Besides working in Berkshire Hathaway, Warren has also been involved in other various organisations and the all have their own corporate culture.
  • Berkshire Hathaway, the company which Warren Buffett has committed so much over the years, has their own corporate organisation structure:




Based on the chart above, it’s clearly shown that the organisational structure of the company was properly managed and that Warren Buffett would obviously have his own corporate culture in managing and organising this company’s structure of organisation. It is well sectioned and that his employees are segregated accordingly to their professions and accountabilities in those different departments. I would say that this organisational structure is pretty effective and efficient. According to this structure, the employees would be able to proceed with their assignments more easily and organised. It is said that most CEO’s expand their business whenever they can after allocating their own capital and but Berkshire Hathaway has created a unique management to centralise this function and it has proven to be Warren's best cultural and structural organisation/ strategy. This chart is definitely very detailed; it is designed in a way that the employees are clear with their positions and also to allow others to understand the system or management of the company.

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