Organizational Structures that are Suitable in the Business Circumstances Today
The world today is experiencing the most rapid pace of change in its history. The purpose of this essay is to discuss what organizational structure is suitable in the business circumstances of today. This essay will argue that ‘the environment of the 21st century is such, that to be effective, organizations are tending towards less formalized structures than used in the past’. To support this argument, firstly organizations will be defined, and then the properties that make an organization effective will be identified. Next organizational structure will be appraised, and what constitutes business environment will be established. Finally the influences globalisation and technology have had on the will be addressed in relation to changes in organizational structure.
Robbins et al. define an organization as ‘a deliberate arrangement of people to accomplish some specific purpose’ (2000: 5). While Wood et al. consider organizations as ‘collections of people working together in divisions of labour to achieve a common purpose’ (1998: 15). These definitions fits a wide variety of groups such as sporting clubs, religious bodies, voluntary associations etcetera however for this essay will concentrate on business organizations. A Business organizations’ purpose is to deliver and product or service in such a way that a benefit is gained for the organization, profit or goodwill for example.
The Macquarie dictionary is defines effective as ‘producing the intended or expected result and producing a striking impression’ (1990). Thus an effective organization is an arrangement of people that successfully achieved their purpose, ie. a large profit of fine product, and have done so in a noteworthy, exemplary, commendable method or fashion. It is understood that to be effective an organization must be efficient. Efficiency is defined as ‘the relationship between inputs and outputs, the goal of which is to minimize resource cost’ (Robbins et al., 2000: 8). Usually a business organizations’ success is primarily measured in financial profit, though this is not the only benchmark.
Organizational structure is defined as ‘the organization’s formal framework by which job tasks are divided, grouped and coordinated’ (Robbins et al., 2000: 351). Generally an organizations’ structure is considered to be the managerial framework that directs the non-managerial employees. Traditionally western organizational structure can be argued to have developed from the feudal system of government where a strict pyramidal power and class structure existed.
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
An organization is structured in a certain way based on some factors. Size is a factor because the bigger the organization, the more complex its structure. If the company is small, the design is generally simple. A small company does not have to undergo a formal structure. Larger organizations depend more on authority delegation and formal work responsibility, because a bigger company is harder to manage. Another factor is the lifecycle of the organization. An organization undergoes the...
Organisations are structured in a variety of ways, depending on many aspects including their size, objectives, culture and management style. It is important to look at these aspects as these influence the design and the structure of the business.
Following are the types of organizational structures that can be observed in the modern business organizations: Bureaucratic Structures maintain strict hierarchies when it comes to people management; Functional Structure the organization is divided into segments based on the
Every company has its own unique organisational structure. This can be described as the system or pattern of relationship in which power and roles are given to the employers and employees. It also involves how the company is designed in order to achieve its goals and its communication channels. A good structure is crucial because the strategic decisions made can either benefit or worsen an organisation (Mullins, 2005). For example, a good structure would encourage and motivate employees in order to keep morale and job satisfaction at the highest possible level so that productive efficiency can be reached. This essay will describe the different designs of organisational structures and assess whether in today’s world, organisations are better off with flatter organisational structures or not. The essay will essentially conclude that there are no one best template structure all companies should choose to adopt because certain companies in certain industries will be better off will flatter structures whilst other are better off with taller structures. It is best to have a balanced of both. Not only this but it is not only about flat or tall structures but internal and external factors such as learning and cultural factors which influence employees all plays a part.
Organizations can be configured in many different ways. Their overall classifications can be summarized by characteristics of complexity within the system, the level of formalization, and the centralization of decision-making power. The structure of each organization is influenced by many factors. Such factors include; the goods and services provided, the overall individuality of the staff providing the service and producing the products. The overall beliefs and values of the individuals performing the services that are being delivered, the technology that is utilized to help deliver the services and aid in product production, as well as the needs, desires, and generalized characteristics of the consumer population that requires or demand the product or service. (Yoder-Wise, 2007, p. 145) The organization will have different operating priorities based on its ownership. The main goal behind most business is to make money. The private owned institution strives to make its shareholders money, while a non-profit institution reinvests all of its revenue back into the orga...
A structure gives the organization an identity and provides continuity. It’s also concerned with the most appropriate way to group activities in the organization to achieve desired objectives. It’s includes also the arrangements by which various activities are divided by members of the organization and the way efforts are co-ordinated. Business structure can come in different types of structure.
According to our textbook, organizational structures are defined as “how job tasks are formally divided, grouped, and coordinated (Judge and Robbins 432).” Once being rigid and highly centralized, the past 50 years have brought forth a shift to these structures, now being more flexible and decentralized. There are many advantages and disadvantages that come with both of the structure types. These new flexible and decentralized structures have affected employee/manager relationships by allowing more effective decision making, improving contact between lower level to higher level workers, and motivating the employees and local managers. They have also impacted organizational strategies in various ways.
Organisation’s structure stands on some vital pillars which are commonly described as the frame of the organisation structure:
This article discusses about few organization theories that create a better environment for an organization. This article also try to cooperate with the word bureaucrats because people have negative perspective on bureaucratic system, complicated in many ways such as vision of red tape, full of rules and heartless bureaucrats. It is just a term to describe a form of organization, and how it is works.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
Gibson, J. L., Ivancevich, J. M., Donnelly, J. H., & Konopaske, R. (2009). Organizations: Behavior, Structure, Processes. New York: McGraw-Hill.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
Organizations must operate within structures that allow them to perform at their best within their given environments. According to theorists T. Burns and G.M Stalker (1961), organizations require structures that will allow them to adapt and react to changes in the environment (Mechanistic vs Organic Structures, 2009). Toyota Company’s corporate structure is spelt out as one where the management team and employees conduct operations and make decisions through a system of checks and balances.