DEPARTMENT STORE ORGANIZATION FUNCTIONAL DIVISIONS ANDOPERATING SYSTEMS

Examines the influence of several sizerelated factors on retail managements choice of the organizations functional division structure and multiunit operating system based on data collected from a sample of retail department store personnel managers in the United States. Suggests that the retail organizations size and the number of functional divisions employed are directly related. After nearly twothirds of a century, department stores continue to use the basic functionaldivision organization developed by Paul Mazur which has been modified into a model that includes merchandising, publicity and promotion, store operations, finance and control, and personnel. The study further reveals a link between the organizations size and retail managements choice of a multiunit operating system. Implications are provided to assist management in evaluating the appropriateness of the firms functional division structure and operating system in response to several key factors.