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Cheesecake Factory Structure

Decent Essays

Intro
The organizational structures within a company can be the determining factor if a business can run efficiently or run chaotically into ruin. The organizational structure is the different hierarchy’s and arrangement of authority, roles and duties in an organization. The Cheesecake factory has a very effective organizational structure which allows for its operations to run smoothly and enables the Cheesecake factory to be one of the highest earning restaurant chains. The structure contains three main levels. The first and highest level is the board of directors which contains 7 members, including the CEO David Overton and 6 directors. The next level of hierarchy called N-1 contains 7 levels including the CFO, President, Area Operations, …show more content…

It is a centralized system, where decisions and recommendations come from the top down. However it is also flexible giving any employee the freedom to reach out to an upper level director. This succession of power lets Cheesecake Factory operate smoothly and competently. Each location manager has to go through extensive training to be able to be in that position and is well qualified to look over the whole restaurant. Given the success of Cheesecake factory, I would say they should keep their hierarchal structure the same and if anything they should add higher monitoring of lower levels. The upper levels seem to operate efficiently, but upon reading employee reviews of working at Cheesecake factory, there were several that were unhappy with their general managers. Many of them claimed that the management was unapproachable, and did not pay attention to the hard work of the employees. It was also said that the managers tend to be overbearing and lack communication skills with employees. Another overarching theme was the inconsistent breaks because they are up to the discretion of the manager. My recommendation would be to invest more in the employees and the directors that are above the general managers to make sure that the employees are satisfied. Promote company values more and participative leadership and more incentive for employees to go above and beyond and focus on team building as opposed to individual competition. In one of the reports they even said themselves that the success of the business is due to happy employees. “Our future growth and financial success will be highly dependent on our ability to attract, develop and retain qualified staff members who are capable of successfully managing upscale, high-volume casual dining restaurants, and consistently executing our extensive and complex

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