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Organizational Effectiveness Depends Largely On The Degree Of "Fit" Between An Organisation's Structure And Its Environment

1170 words - 5 pages

The term organizational effectiveness has received considerable criticism as to the way it is viewed by its many stakeholders. For instance, the achievement of goals and objectives, resource acquisition and allocation, internal effectiveness and stakeholder satisfaction can all be interpreted differently by its various stakeholders (employees, top management and shareholders). It can be broadly defined as "the importance of achieving productivity through the effective management of people, and their commitment to, and involvement with, the organization"1.The question is whether the degree of organizational effectiveness will revolve around the relationship of an organisation's structure and its environment. This essay will identify the various theories of structure that have evolved in recent years and examine if there is a "fit" with the organisation's environment.The first attempt to define an organisation's structure was made by Classical theorists who assumed that there is a universal set of principles of management and organization that apply in all circumstances. It placed emphasis on the technical and structural factors of an organization. In particular, attention is given to the division of work, a clear definition of and responsibilities, specialization and co-ordination, meanwhile maintaining a hierarchy of management marked by formal organization relationships. Classical writers envisage the improvement of an organisation's structure as a means of increasing efficiency.One of the pioneers of classical theory is F.W Taylor with Scientific Management Theory. This theory claims that there exists a best working method for each task in which there is a scientific method of finding the "one best way" to complete a certain task. This assumption led to the breaking down of each job into individual components which lead to increased efficiency and productivity. On the other hand, this method caused the deskilling of workers and the loss of craftsmanship. As a consequence, workers were frustrated since their job became monotonous, a routine task with no real control over their work.Following Taylor's theory is that of Fayol's key principles of organising which starts from the top and moves towards the bottom of the hierarchy. It is based on functional structure indicating that there is a technical process managers should follow entailed in six management activities.These include forecasting of future events, planning courses of action, organising and allocating materials and resources, motivating and directing workers, co-ordination of activities and controlling and monitoring operations to make sure everything goes as planned. This set of principles was assumed to apply in all organizations.1. L. J. Mullins, Management and Organisational Behaviour, 4th Edition, page 10.The next model was Weber's Bureaucracy theory in which the organisation's structure contains a high level of specialization of duties and roles characterized by high levels of...

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