Management Theory and Practice

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There is no particular definition of an organization. Different authors have defined organization in different ways. Therefore, organization can be define as an institute where a group of people work together to achieve certain goals and objectives. Organization has a distinct purpose and follows a particular strategy to goals or set of goals. Whereas structure is the manner, in which something is build. This structure defines and limits the behavior of the members of an organization. In an organization to achieve certain objectives, a structure is very important. The structure of an organization can be different level of managers and how are they commanding their employees to work properly in an organization.

Organizational Structure

A business may begin with one person doing all the necessary tasks. As businesses become successful and grow bigger, more people are required to perform various tasks of the business. These people are located in different departments of an organization and they all work towards a common objective. To accomplish such objectives, there must be a plan showing how we will organize the work. The plan made for the systematic arrangement of work is the organizational structure. Organizational structure is composed of functions, relationships, responsibilities, authorities and communications of individual within each department. Organization structure can be of two types: flat and tall organization structure. Flat organization structure is a decentralized organic structure. It encourages high employee involvement in decision-making. The purpose of this structure is to create independent small business that can respond to customer’s needs or changes in the business environment. Advantage of flat structure

• It has a fewer problems in communication and coordination • It can motivate employees to take greater responsibility for their output Disadvantage of flat structure
• It creates more opportunities for mismanaging people Chart of a flat structure

Tall organization structure is a centralized bureaucratic structure where decision is making from top to down. In this structure, people become relatively confine to their own are of specialization. Advantage of tall structure

• It provides ample career and promotion opportunities for employees. • It sustain a very high degree of specialization of functions and roles Disadvantage of tall structure
• They are connected with long lines of communication and decision-making

Different author’s view towards organizational structure

According to Henry Mintzberg an organizational structure is the sum total of the ways in which it divides its labor into distinct tasks and then achieves coordination between them. Mintzberg also gave a concept of five segments of an organization. They are: • Strategic apex includes chief executive and directors of an organization. Middle line is composed of operational managers of an organization. Operating core includes those people who are directly involved in supplying the firm’s goods and services such as operators, direct sales staff, etc. Technostructure includes functional specialist and advisors. Support staffs are the providers of the direct services such as payroll, public relations, etc. He said that these basic parts of an organization also used in five different configurations. They are as follows:

1. Simple Structure- This structure affected largely by direct supervision. All decision tends to centralized in the hands of the chief executive officer. Thus, the environment tends to be simple/dynamic. 2. Machine Bureaucracy- The machine bureaucracy depends primarily on the standardization of its operating work processes for coordination and so...
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