Organizational Structure of XYZ Department Store Term Paper

Organizational Structure of XYZ Department Store - Term Paper Example Marketing deals with the promotional activities, visual or audio displays, and public relations. As for the department of merchandising, there are tasks which deal which the monthly or yearly plan of stock along with the supervision, control, and budget for the stock. There are also financial responsibilities for dealing with the store accounts, debts, or credits. Lastly, there is an IT (Information Technology) department, which manages and looks after the necessary equipment and technology needed for the store (NAICCS). In a firm, the agent might have incentives for increasing their wellbeing at the expense of the principle, for which they might engage in activities like shirking or parking competition, which would go unnoticeable by the principals. When the incentives of principals and the agents are not aligned, there are agency problems, as in a firm, the principals engage an agent for the performance of some services (Zimmerman, 2009). However, this amount of behavior can be limited by the principals by giving the agent, through contracts, the appropriate incentives, and by incurring monitoring cost. It can also be guaranteed to avoid such problems by agents if they incur the bonding costs. If such actions occur, the principals will not be compensated. This may include purchasing insurance policies that they will have to pay to the principals. To increase the amount paid to them, the agents will be willing to incur these expenses. If the contract problems are too costly, they generally would not be sufficient for both the parties as the cost would not be sufficient to retain the agent from performing such activities (Zimmerman, 2009). Store Operations: There is management, which deals with all aspects including community engagement, hiring, and top talent development, along with delivering strong financial results and an exceptional customer experience.