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).