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Organizational Structure: Meaning and Types

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    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 structures are essential for businesses of all types and sizes. They define the roles, responsibilities, and relationships of the people within an organization. They also facilitate communication, coordination, and collaboration among different units and levels of the organization. Organizational structures can vary depending on the goals, strategies, and culture of each business. However, they all share the common purpose of creating a clear and effective hierarchy inside an organization.
    Organizational structure plays a significant part in the performance of a company. The structure of an organization is a crucial factor that affects its performance and outcomes. A well-designed structure can facilitate communication, coordination, collaboration, and innovation among the members of the organization. A poorly-designed structure can hinder these processes and create confusion, conflict, inefficiency, and stagnation. Therefore, the structure of an organization can have a significant impact on its ability to achieve its goals and objectives. 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.
    Organizations need the right structure to succeed because it influences how their people think and act. The structure also determines the groups and teams that people work in, which have a strong impact on their performance. A well-designed structure can align the goals, roles, and responsibilities of the organization and its members, and foster collaboration and innovation. 
     

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    Organizational Structure: Meaning and Types 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


    Why does organizational structure matter for the management of the human resource? What is the impact of organizational structure on the management of the human resource? Organizational structure matters and is considered one of the key elements of organizational success (Mullins, 2016; Armstrong, and Taylor, 2017). It matters because it can impact every aspect of HR management from its ability to attract, engage and retain top talent, to shaping workplace culture with consequences for job satisfaction, innovation, and firm performance.

    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. In essence, the right or wrong structure can mean the difference between a high or low-achieving organization. 

    This essay explores the impact of organizational structure on human resource management in the case study company of EasyJet. It will explore how the choice of the organizational structure of EasyJet, especially with regards to its policies and practices, can impact the attitudes and behavior of the entire human resource, decision-making ability, and communication but also can impact job satisfaction, innovation, and firm performance.

    What is an organizational structure?

    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).

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