Organization is always an efficient way to achieve the goals since ancient time, high productivity with lowest input which is an important characteristic of it. Well-organized is a common ambition for every administrator. Therefore it is a primary task for managers to find out a most suitable structure for the company which can maximize the organization performance. Currently, many researchers are seeking for the relationships between an organizational structure and performance in order to adopt a best structure. However, base on contingency theory, a large number of researches proves that the optimal organizational structure depends on the strategy and among other factors (Pertusa-Ortega et al, 2010). The purpose of this essay is to explain that organizational structures are variable, which can be influenced by the scale, strategy and the operation technology of the business.
Firstly, the size of a business is an important factor which could determine how an organization is structured; there are many different ways to manage a company according to the disparate capacity, number of personnel, and output of the business. Base on the studies from the Aston and National, both of them support this argument by finding there is a strong relationship between the size of the company and its structure variables (Cited in John Child, 1973). Thus, different structures are needed to administrate companies with different size. According to John Child (1973), specialization, documentation, standardized behavior, hierarchy, and a decentralization of decision making, are the core characteristics of the large companies, which could support the companies to make a decision accurately and efficiently as the power of decision-making are dispersive, the employers in big companies such as Telstra, Woolworth, could not supervise every employees simultaneously and could not make every decision for the company either. Therefore, tall structure is accepted widely in large businesses...
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