Influence of an Organizational Structure in a Firm

Only available on StudyMode
  • Download(s) : 69
  • Published : January 6, 2013
Open Document
Text Preview
An organization’s structure influences the flow of information throughout the firm and determines who reports to whom. In some firms, decision-making powers are concentrated at the upper echelons of the organization, whereas in others, this role is distributed among various management levels in the organization. A lateral organization a structure embraces decentralization whereby various departments work together in order to achieve common organizational goals (Hall, 1972). For an organization to achieve its objectives and goals, the jobs of the members of the organization must be connected into logical patterns of relationships and activities. This cohesion is attained through the nature of relations and the structure of the organization. Decisions regarding the future are drawn by people and the strategies are also implemented by people. The accomplishment of a certain objective set will be dependent on both how the decisions are arrived at and also on how those decisions are being implemented by the employees of the organization. Lateral organizational structures encompass individuals from different departments and groups in the organization. This relation involves individuals at the same level of management and involves consultation and coordination (Hall, 1975; Galbraith, 1995). Lateral corporate arrangement is built on the idea that all employees communicate at the same organizational level, laterally, and not up and down communication. The relationship among various employees and different departments takes place at the same hierarchical level. These organizational arrangements still have top management, however, they are persuaded to foster sound working relationships among employees (Lawrence & Lorsch, 1967). This type of organization is dependent on the co-ordination of activities and the informal relations. In summary, efficacious lateral organizational structures enhance the management of the business, reinforce...
tracking img