Inadequate Organizational Structure Symptoms
Estella A. Diaz
Grand Canyon University: MGT-605 Leadership and Organizations January 30, 2013
Organizations are formed when two or more individuals share a common interest and join efforts to accomplish a task or objective (Hax & Majluf, 1981). Organizational structure is then defined by how an organization formally allocates and coordinates tasks. Symptoms of inadequate organizational structures are usually found in older companies or companies’ experiences growth. In an inadequate structure, continuous adjustments are not made to the organization’s framework resulting in inefficiencies and impairment of production and growth. Symptoms or signs of stress become evident if they are not addressed. Two signs of stress, according to Hax & Majluf (1981), are excessive duplication of functions in different business units and insufficient time devoted to strategic planning by management. These stressors can be a result from task imbalances and lack of flexibility in different organizational structure types such as functional and divisional. The stressor resulting in excessive duplication is seen when the organization’s structure does not have clearly defined roles between divisions, departments or business units. This is characteristic in divisional organizations where tasks are decentralized. Redefining, re-evaluating, and reassigning tasks, in view of the overall company vision or plan, can be a beneficial start. These redefined tasks can then be integrated within the current organizational structure or transitioned into a new structure type. Even if the structure type of a company is a divisional structure, some common tasks may be centralized to create a hybrid structure. Such a structure can centralize common functions and eliminate duplication of efforts. When executives or management do not have time to focus on strategic planning, they are usually overwhelmed with the day to day operations of...
References: Hax, A. C., & Majluf, N. S. (1981). Organizational Design: A Survey and an Approach. Operations Research, 29(3), 417.
Sheldon, D. (1994). Recognizing failure factors helps small-business turnarounds. National Productivity Review (Wiley), 13(4), 533
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