Riordan Manufacturing Finance and Accounting Needs

Organizational Model

The design of organization depends on its needs, purpose, and goals. There is no specific standard or design that guarantees success in any specific company or organization. The owner or founder usually select the structure or model that match to their operational requirements. The structure can change over time as the company grows or shrinks or when there is new ownership.

There are several organizational designs. The three common organizational designs are simple, bureaucracy, and matrix structure. The new design options are virtual organization, boundary less organization, and leaner organization. Other extreme models are organic model and mechanistic model. McBride Financial Services and Huffman Trucking Company will illustrate the use of the types of organizational structure.

McBride Financial Services is a start-up regional mortgage lender with main office in Boise, Idaho. The firm will specialize in conventional, FHA, and VA loans for home purchasing and refinancing. McBride Financial Services will use advance technology to provide low cost mortgage services in the state of Idaho, Montana, Wyoming, North Dakota, and South Dakota (Apollo Group, Inc, 2012).

They will start with small staff and will depend on technology to let their clients sell themselves on the mortgages they want. The client will fill-up their own mortgage applications online and approvals or denials will be sent through the Internet. The lending committee will make loan decisions at their home office through remote access to their main database at the Headquarter office in Idaho (Apollo Group, Inc, 2012).

They will start with three brokers and two admin assistants at Idaho to handle administrative issues company wide. There will be two to three brokers on other offices. Inter-office connectivity between location is important as well as redundancy. Smith Systems Consulting will design and maintain their whole IT infrastructure (Apollo Group, Inc, 2012).

McBride Financial Services has very simple structure (See Exhibit 1) with a managing broker in their Headquarter office in Idaho. McBride has low degree of departmentalization with an authority centralized in a person. Has little formalization, a flat organization with only two levels. This structure will work very well for them during the development stage. Eventually as it grows it will increase the level and will become more formalize.

Exhibit 1 McBride Financial Services Organizational Chart

Huffman Trucking Company is a national trucking company founded in 1936 by K. Huffman. It starts with a one tractor-trailer doing contract haul in and around Cleveland, Ohio. By 1945, the have 16 tractors and 36 trailers. The business relationship forged with the U.S. Government continues today (Apollo Group, Inc, 2012).

From 1948 through 1976 Huffman