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Graeter's Organisational Structure

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Graeter’s departmentalise their organisation by product and location because they manufacture a number of products including ice cream sold in 6,200 shops spread over 43 states in the U.S (Pride, Hughes and Kapoor 2015 p. 188). The organisational structure used by Graeter’s is the matrix structure featuring combined vertical and horizontal lines of authority caused by superimposed departmentalisation on a functionally departmentalised organisation. Consequently, employees report to more than one leader at a time as authority flows both up and down across the structure depending on their department (Pride, Hughes and Kapoor 2015 p. 195).
Graeter’s are a decentralised organisation with the most important decisions retained by top level management,

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