Study Of Organisation Structure And Design

1290 words - 5 pages

Study of Organisation Structure and DesignIntroductionThe paper presents the study on the organizational structural to explain the importance of good structure and the consequences of a deficient structure; and to review the relationship structure of an organization and the people who work within it. It will explore the main factors to be considered in the design of organization structure and different methods for the division of work. Also identify levels of organization and the importance of the hierarchy and explore the complex patterns of interrelationships. And distinguish between how organizations look and how they actually work.The purpose of structure is the division of work among members of the organisation and coordination of their activities so they are directed towards the goals and objectives of the organisation. Structure is the pattern of relationships among members of the organisation. It creates a framework of order and command through the activities of the organisation can be organised and controlled (Mullin, 2007).Characteristics of organisational structures are:The grouping of roles, tasks and functions;The method of decision making: -Centralisation - decisions are made by a few senior managersDecentralisation - decisions are made by a large number of employeesThe method of communication - is in a top-down or lateral mannerThe number of management levels - firms with tall structure as opposed to flat;The span of control - referred to as narrow or wide, based on the number of people under each manager's jurisdiction; andThe chain of command - the lines of authority in the company; firms with rigid chains of command are said to be bureaucratic and centralised.1 .The Importance of Good StructureStructure is important for any organisation. In the smaller organisations there are fewer of structure. The distribution of tasks and relationship between members of the organisation can be established on a more informal basis. However, there is need for a formal organisational structure in larger organisations. In keeping with its growth and development, there is also need for a continual review of structure to ensure that the most appropriate form for the organisation, especially for the very large organisations. (Mullins, 2007)The structure of an organisation affects not only productivity and economic efficiency but also the morale and job satisfaction of the members of the organisations. Structure should be designed so as to encourage the willing participation of members of the organisation and effective organisational performance (Mullins, 2007).According to Kunov, the improvement of the organisational capacity and increased the coherence are supported by strong internal organisational structure; a structure is necessary to solve the problems of collective action and minimise the transaction costs (Kunov, 1999)Pleshko suggested that structural form is shown to have an influence on profitability (Pleshko, 2007). The less structured...

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