Analyze the Concept of Organizational Structure
Mariam Peyton is a professional Financial Analyst. She holds a Masters degree in Economics. She specialises in financial analysis and forecasting. Her expertise includes studying the financial performance of companies, markets and entire industries looking for trends, insights and information that can help you glean rich insights for use in academic and market research.
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Organizational structure is an essential part of an organization as it determines its basic infrastructure, employee engagement, and satisfaction, and the activities to be taken on by different individuals, therefore it is important to note that individuals are more likely to settle for organizations that appeal to their personality. Organizational structure is very important as it makes clear the various roles of the employees and lays down strategies that are to enable the organization to attain its goals and objectives. This report conducted a study on the various organizational structures and the ways in which they are implemented, it further examined the similarities and differences among the various structures. The primary aim of this report is to critically examine the concept of organizational structure and clearly understand how an organization functions. The organizational structure clearly depicts how an organization works for example it represents the basic image of an organization, its norms, and values.
The contemporary world is transforming rapidly which has resulted in challenges when it comes to controlling organizations as they are influenced by environmental changes. Organizational structure plays a significant part in the performance of a company. In fact, the right or wrong structure can mean the difference between a high or low-achieving organization. While the organizational structure is often associated with the hierarchy and the chain of command that aids in the organization of complex networks of people and resources, the systemization of jobs and roles, it's more than just this. An effective organizational structure is about creating a framework that aligns the human resource with business priorities, and strategies, creating a culture that enables people in organizations to understand how things are done or handled as well as distributing and rationing power in a way that empowers people to make certain decisions and control other people’s behavior.
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Analyze the Concept of Organizational Structure a Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the different types of organizational structures and how they can impact an organization's performance.
- Understand the key elements of an effective organizational structure, such as clear lines of communication, well-defined roles and responsibilities, and a flexible approach to change.
- Apply strategies for designing and implementing an effective organizational structure to real-life businesses
1.0 INTRODUCTION
Organizational structure refers to the patterns of formalization, differentiation, and centralization of jobs and people within an organization. It is about hierarchy and the chain of command that aids in the organization of complex networks of people and resources, systemization of jobs and roles, enabling people in organizations to understand how things are done or handled as well as distributing and rationing power in a way that empowers people to make certain decisions and control other people’s behavior (Torrington et al., 2017). The organizational structure demonstrates the authority and responsibility that exists at the various positions of the organization. It sets the tone of communication and coordination in the business.
Also, Organizational structure may refer to the way in which a company or organization is arranged in order to achieve its goals and objectives. This can include things like the hierarchy of management, the division of labor and responsibilities, and the overall flow of communication and decision-making within the organization. A well-designed organizational structure can help to improve efficiency, reduce costs, and increase overall productivity. This essay is going to discuss in detail the importance of organizational structure in an organization.
What is the importance of organizational structure in human resource management? Organizational structure facilitates decision-making in an organization, it ensures that the organization reacts properly to both the external and internal factors affecting the organization. There are a number of factors that influence the structure of organizations depending on the objectives and culture.
Mullins, (2016) explains the purpose of organizational structure as the basis for division of work among members in the business, and the coordination of these activities so that they are aimed at achieving the goals and objectives of the entity. Structure then is defined as the pattern of relationships among positions in the organization and among the members involved. The right organizational structure is an essential cornerstone for the success of organizations primarily because it has the ability to shape the attitudes and behavior of the entire human resource in the same way that the groups and teams they operate in, can.
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