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Figure 1.7: A table of organization depicts a company’s corporate structure and chain of command.
organization defines the hierarchy, or chain of command, in an organization, as well as lines of communication and responsibility. Chairman of the board, president, chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), and vice president are some of the top management titles that appear at the top of a table of organization. These functions have a broader scope of authority and responsibility and a higher salary than lower-level functions. Because the number of functions decreases as one proceeds from the top of a table to the bottom, tables of organization are often called organizational pyramids. As organizations grow, organizational functions with a broad range of responsibility are often split into more specialized functions. An apparel retailer may split the function of buyer of junior sportswear into two more specialized functions, buyer of tops and buyer of bottoms, when business reaches the point that it requires and can support two distinct functions. In general, the tables of organization of large retail organizations have many specialized functions, while the tables of organization of small retail organizations have fewer functions that are more general in scope. In 1927, Paul Mazur, an investment banker, was commissioned by the National Retail Dry Goods Association, now the National Retail Federation, to develop a model organizational structure for retail stores. Mazur proposed a table of organization with four major functions: ■■
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Merchandising—Responsible for procuring merchandise to be resold to customers. These duties were primarily performed by buyers. Publicity—Responsible for stimulating sales through advertising, display, and other promotional vehicles.
Chapter One: Retail Merchandising
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