Preview

Factors Affecting Organizational Structure

Satisfactory Essays
Open Document
Open Document
510 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Factors Affecting Organizational Structure
Issues That Influence an Organizational Structure by Company

A company's organizational structure can determine its success or failure upon entry into the market. The decisions a small-business owner makes in choosing management and employee roles within the company help determine the organizational structure and can have a large influence on the culture within the business. If structure doesn't reflect the owner's business goals, employees may have a hard time working successfully for the company.

Change management process
Research-based, holistic model for managing the people side of changewww.change-management.com
Size of Business
As a small-business owner, the size of your company can have a significant influence on the organizational structure of your company. If you're running a sole proprietorship with a few employees, you may not even need a well-defined organizational structure if you perform all the management functions of the business. A larger organization requires more structure to allow its different components to communicate effectively with one another. For example, a full-service restaurant requires a kitchen manager, floor manager, bar manager and general manager to run each division within the establishment and keep the employees in each division working to task.
Stage of Development
The stage of your company's development can dictate its needs regarding organizational structure. The youth stage of a company's life cycle emphasizes growth and the needs of the customer. This may require you as a business owner to develop an organizational structure around increased customer service, including a system to handle complaints and develop better service strategies. At this stage you're still very much in control of the majority of the company's day-to-day business decisions. By contrast, in the midlife stage of development, your company may require more levels of management to handle the growing departments with the company. Organizational

You May Also Find These Documents Helpful

  • Better Essays

    Organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals. Organizations large and small can achieve higher sales and other profit by properly matching their needs with the structure they use to operate. The three main types of organizational structures are functional, divisional, and matrix structure. Organizations have to pick the structure that will work well with their company. These things do not come all at once overnight, companies have to try and see what works for them.…

    • 1190 Words
    • 4 Pages
    Better Essays
  • Better Essays

    An organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization such as Barnes and Noble, decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure.…

    • 1089 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Week 5 Assignment

    • 1146 Words
    • 4 Pages

    small business can use one of three primary organization structure options: functional, divisional or matrix. Essentially, the organizational structure creates a business hierarchy to increase the efficiency and effectiveness of the business operations. Different small businesses operate in different ways, so there is no one-size-fits-all solution every small business should choose for an organizational structure. You can, however, determine which of the most common structures works for your business.…

    • 1146 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Without structure, there will be chaos. Any business, no matter how big or small, requires structure. There are seven key influences that have a role in developing an organizational structure. They are history, primary function and technology, goals and objectives, size, location, management and staffing, and the environment (Coyle, 2009).…

    • 1412 Words
    • 6 Pages
    Good Essays
  • Good Essays

    All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.…

    • 4070 Words
    • 17 Pages
    Good Essays
  • Powerful Essays

    The design of a business structure can be affected by influences such as size, age, culture and management styles and communication. Chain of command is how responsibilities about the business are relayed within the organisation The size of the business, as it grows larger would likely have to increase in levels of hierarchy; hence affecting the business’s chain of command.…

    • 3454 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Having a business takes a lot of research and responsibility, not just for the way you want to have your business, how you want your business ran by yourself, management, employees, and any one else you hire for other reasons. The structure of the business includes the owners/hr and accountant, management, employees. As for the owners, we want to have a positive environment so that way everyone is happy to be there and ready to work. The owners want the management to keep things flowing and making sure that everyone gets what they need to have the day of the business running smoothly.…

    • 704 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Organizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization (Friend, n.d., para.1). The organizational structure is used to determine how a company operates, how it positions its employees, and how the organization carries out job functions to obtain goals presently, and in the future. According to Waters (2006), “An organizational structure divides a whole organization into distinct parts and defines the relationship among them” (p. 923). Large companies thrive from implementing these types of structures because…

    • 1009 Words
    • 5 Pages
    Better Essays
  • Good Essays

    The way a business is organized is an important part of the business’s structure. “Different organizations provide different advantages and disadvantages in creation cost and simplicity, ongoing maintenance requirements, dissolution and continuity, fundraising, managerial control, public ownership, tax planning, and limited liability.” The nature of the business being conducted has little to do with the way the business is organized. (Johnson, 2013)…

    • 2775 Words
    • 12 Pages
    Good Essays
  • Satisfactory Essays

    Bt & Ryanair

    • 457 Words
    • 2 Pages

    Organizational structure is a system used to define a hierarchy within an organization. It identifies each job, it is function and where it reports to within the organization. This structure is developed to establish how an organization operates and assists an organization in obtaining its goals to allow for future growth. The structure is illustrated using an organizational chart and the Organisational culture is a concept developed by researchers to explain the values, psychology attitudes, beliefs, and experiences of an organization. Generally speaking, it is viewed as the shared norms and values of individuals and groups within an organization. This set of mutual understandings controls the way individuals interact with each other within the organization as well as with customers, suppliers, and other stakeholders existing outside the boundaries of the organization. BT has one of the most common types of organizational structures. This structure is the Bureaucratic structure. Routine, specialization and formal rules and procedures characterize.First of all focus on policy and stringent regulations to improve effectiveness and deliver results. Assign individuals…

    • 457 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Organizational structure is a group of people working together to achieve goals and objective for the organization. The purpose is to show the reporting relationships of job descriptions within the business. An important tool to report and manage employees working together is structure. There are areas of an organizational structure that will assist the businesses to be profitable and successful. Firstly, the height which pertains to the number of levels from top management to lower level employees.…

    • 491 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Irhr1001 Essay 2

    • 2037 Words
    • 9 Pages

    An organisational structure accurately divides, selects groups and coordinates job tasks. Structure contributes to explain and predict organisational behaviour and organisational design. Managers often change organisational structures due to performance and efficiency being low (Robbins et al 2004), they should also ensure consistency in the structure, scale of operations, tasks at hand, need of stakeholders and strategic decision of the organisation, this distinguishes successful organisation from less successful organisations (Wood et al 2006). When changing the structure of the organisation managers should be aware of the six elements of structure: work specialisation is how tasks are subdivided into separate jobs; for example Ford workers had an assigned specific repetitive job such as installing the right front door of the car. This helped Ford to produce a car every ten seconds. Departmentalisation, groups jobs together in an organisation; such as marketing, human resources and accounting for instance Football organisations, Sydney Swans. Chain of command specifies who reports to whom (supervisor or store manager) and how (electronically or by speech). Span of control determines the amount of staff a manager can direct however it also identifies the amount of levels and managers the organisation will need. Centralisation and decentralisation aid in the decision…

    • 2037 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Greggs Swot Analysis

    • 1461 Words
    • 6 Pages

    Organisational structure refers to the levels of management and division of responsibilities within a business, which could be presented in an organisational chart. For simpler businesses in which the owner employs only himself, there is no need for an organisational structure. However, if the business expands and employs other people, an organisational structure is needed. Any operating organization should have its own structure in order to operate efficiently. For an organization, the organizational structure is a hierarchy of people and its functions.…

    • 1461 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    When it comes to business as any organizations it requires a structure, based on the resources and demands organization can changed or modify their structure. The most common two structures are vertical and horizontal structure which we see every business organization in global market (Bateman & Snell, 2011). In today’s any business organization theirs and important trait is not only the structure, it is the functions within the organization. An organizing function in management highlights the practices individuals use to interact and work with each other. There are many business organizations that are very successful in their own way. When it comes to a business structure it all depends on what is the product business manufacture and what is the target market, it also depend on is this product goes local or it will be a global one. One of the great organizations that started as an idea then went local to national then bloomed to global social networking giant. That is Facebook organization.…

    • 1200 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Organizational Structure is necessary to run any company effectively and efficiently. There are six key elements that a company should be following for success and those elements are as follows:…

    • 1123 Words
    • 5 Pages
    Good Essays

Related Topics