How organisational structure impacts on people in organisation
The structure inhibits initiative and produces followers.
What Your Company Needs When thinking about organizational structure and its effect on workers' performance, it might be worth asking what effect you want or need it to have. If a particular customer awards a large contract to your company, you may need to rearrange certain parts of your organization to accommodate the contract.
Effect of organizational structure on human behavior
The team members answer to two managers, their superior in the hierarchy and the team leader. Accordingly, it has fewer managers -- perhaps only the owner, who oversees all the teams. Centralization and Formalization While the impact of organizational structure on employees isn't always obvious, social scientists have studied the question and found some broad trends. Impact of Organizational Structure on Employees Different business structures affect employees in different ways. For creative self-starters, that's intensely motivating, but other employees lose their drive without someone to give them direction. The Reference for Business points out that when computer networks became popular, it became easier for people to work as groups. A matrix structure can inspire employees by putting them on teams where they have a chance to shine. Customer Needs Customer service is important in business, so many companies have created entire divisions dedicated to customer service and retention.
Doing this naturally decentralizes power, as each division has power over its particular concern. However, research can enhance what organizational culture has been found to be the best culture in creating successful companies.
They must be trained to flourish, not only in their own respective fields of functional expertise, but in areas such as communication, problem solving and diversity.
Impact of organisational structure on leadership
Hierarchical organizations, for instance, are slow and bureaucratic. The team members answer to two managers, their superior in the hierarchy and the team leader. As technology continues to change the function of jobs in the workplace, the landscape of organizational structure changes with it. Changing an established structure is often a challenge, so you'll have to be sure the end is worth it. Additionally, an executive team may be required to run the various aspects of the business, and there may be the need for middle managers who would report to the managers. Consider a flat structure. Centralizing authority so that the head office has all the power and makes the decisions discourages employees from unleashing their creativity. Team The team structure produces a much freer workplace. Types of Organizational Structure Business owners can structure the company in multiple different ways, for example: Hierarchical structure. Employees can launch a project without asking a superior to greenlight it, but they have to recruit a team and find project funding on their own too. Divisional When a company has disparate client categories, product lines or locations, it makes sense to divide employees into groups dedicated to a single concern. Different kinds of basic configurations exist, and a small-business owner chooses one over another by the effect a structure is likely to have on work activities. People did not need to be in the same room, or even the same building, to be efficient. Accordingly, it has fewer managers -- perhaps only the owner, who oversees all the teams. For example, there may need to be an entire sales division created just for that customer and manufacturing may need to create a sub-process to build specialized products as well.
Consider a flat structure. A matrix is a hierarchy where project managers can recruit employees from different departments for the project team.
Impact of organizational structure on employees pdf
The studies found that while organizational structure plays a large role in influencing employees, employee attitudes, commitment to the company and rewards and bonuses for good work also play an important role. If you want more creativity and commitment, the hierarchy needs shaking up. Flattening the layers of management or giving employees new opportunities with a matrix of projects might motivate them effectively. That may not be entirely bad. There was a clear divide of organizational culture between the companies such as Moosewood Collective and Zappos versus Amazon and Enron. This, coupled with rules and management control, means employees color within the lines, becoming proficient and efficient at their jobs but exhibiting little creativity. It will describe how the evaluation of the organizational structure affected decisions, what resources should be allocated to prevent ethical issues and what strategies are in place to prevent these issues. Many companies can believe that they have the needed structure in place to assure success; yet they fail where others succeed. The team structure, meanwhile, lives and dies on the ability of team members to rise to challenges. Other Conflicts Both the divisional and functional structures segregate employee groups, which can lead to insular behavior. This structure eliminates most or all middle management, leaving employees free to decide for themselves how to use their work day.
It establishes relationships among a business's managers and workers, giving them authority to carry out responsibilities. A company needs to keep its structure dynamic so that it can respond to the things that impact organizational structure. People work together according to function -- salespeople work together on sales, for example -- and employees perform standardized, narrow jobs.
Explain how organizational structure affects organizational behavior.
A matrix structure can inspire employees by putting them on teams where they have a chance to shine. A matrix is a hierarchy where project managers can recruit employees from different departments for the project team. The structure inhibits initiative and produces followers. The Reference for Business points out that when computer networks became popular, it became easier for people to work as groups. Uncooperative behavior results, and interdepartmental coordination suffers. It establishes relationships among a business's managers and workers, giving them authority to carry out responsibilities. Employees in matrixed organizations say they receive much more feedback and praise because they have two managers to report to. In addition, the task takes into account the impact of the culture and the structure of organization on the functions and operation of business. Functional "Mechanistic" describes the outcome of the functional structure. When filing is done electronically, there is no longer a need for as many file clerks as you once had but there is a need for a department of technicians to maintain and grow the computer network. Hierarchical organizations, for instance, are slow and bureaucratic. A company may instead combine the functional and divisional structures in the matrix structure. An organization may try any or all of these over the course of its life cycle. If the work your frontline employees do is routine, requiring little creativity, you may not mind if the corporate structure reduces them to drones. This, coupled with rules and management control, means employees color within the lines, becoming proficient and efficient at their jobs but exhibiting little creativity.
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