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Management Theory and Practice

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Week 4 Individual Assignment

Organizational Structure Paper

Gener S. Sango

Management Theory and Practice


October 31, 2012

Michael W. Simmons

An organizational structure is the framework around which a company is organized. This organizational structure keeps the company functioning properly. The organizational structure of a company provides a typical hierarchical arrangement of the authority, communications, duties, and rights of the organization. The organizational structure determines the roles of each individual in the company, the power each individual possesses corresponding to their position in the company, and how responsibilities are controlled, assigned, and coordinated among the members of the company.

It is important for an organization to have a structure. The organizational structure depends on the company's objectives and strategy (strategic, tactical or operational). In a centralized organizational structure, the upper management provides the decision-making process and has a firm control over the departments, divisions, or individual employees of the company. In a decentralized organizational structure the decision making process is distributed among the departments or divisions of the company.

Southwest Regional Maintenance Center (SWRMC) is US Navy's primary repair facility California. Its area of responsibility encompasses maintenance, repair and upkeep of all US Naval vessels homeported in California, visiting US Navy ships and foreign navies as well. SWRMC is a facility has both a centralized and decentralized organizational structure. The Captain of SWRMC has the overall responsibility for all of the personnel, active duty personnel, reserve personnel, government employees, and civilian contractors. He is responsible and accountable for the key decision making within the organization however, he has the authority to delegate such decision making to his Department Heads. At the same time, the Captain of SWRMC reports to Navy Sea Systems Command (NAVSEA) headed by a Vice Admiral. The Head of NAVSEA reports directly to the Chief of Naval Operations (CNO).

SWRMC is divided into different departments such as Finance, Procurement, Waterfront Operations, Administrative, Training, Safety (Environmental and Personnel), Manpower, Quality Assurance (QA), Legal, Facilities, and Production. These departments have its own area of expertise and responsibility. These departments work independently of each other but they all support the objective of SWRMC which is to provide the best maintenance and repair to the US Naval vessels. Waterfront Operations is responsible for the maintenance and repair of US Naval vessels. These repairs and maintenance is performed by civilian contractors under the direct guidance and supervision of government personnel and the QA Department. The Procurement and Finance Departments work in tandem to ensure that all maintenance and repair are funded timely and properly. Without the Finance and Procurement Departments, the Waterfront Operations will not be able to function effectively and efficiently since no work can be performed unless there is funding available. SWRMC is very independent in its operation and can sustain any repair and maintenance required by the US Navy ships. SWRMC scope of operation cannot support any shipbuilding operations and will never be part of the commercial market for repair and maintenance.

National Steel and Shipbuilding Company (NASSCO),



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