Organizational Structure

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Date: January 18, 2013

To: MG 561 Class

From: Jessica Rushing

Subject: “Organizational Structure”

Introduction:

Organizational structure provides the framework of an organization determining how roles and responsibilities are delegated throughout the different levels of the organization. It has been defined by some as the looking glass through which coworkers see their organization and its surrounding environment while others have described structure as the backbone of the organization. In this memo, I will briefly discuss the importance of organizational structure, give examples of some major organizational structures, and provide factors influencing the choice of organizational structure.

Importance of Organizational Structure

Organizational structure is important in the following aspects of an organization: strategy, performance, and member’s behavior. Once an organization has developed a strategy, it is extremely important to choose some type of structure. Without structure, tasks cannot be assigned and carried out nor can authority be properly exercised resulting in an ineffective strategy. Performance can also be affected by structure. While good organization does not necessarily produce good performance, poor structure will make good performance almost impossible (Naoum, 2001). Structure minimizes individual influence, defines how decisions are made (Dalton, et al.) and enables or restricts communication. All of which are likely to affect member’s behavior.

Major Organizational Structures

For the purposes of this memo, four major organizational structures will be discussed. The traditional structure is the simplest and is also known as craft structure. Businesses in their early stages often use this type of structure. It is characterized by a manager who assumes most or all of the responsibilities of the organization (Naoum, 2001). As an organization grows or has multiple product lines, a matrix structure is advantageous....
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