Along with organisational design and organisational structure these factors shape organisational behaviour and how a company is composed and successful. Although organisational behaviour has been defined by Wood, Zeffane, Fromholtz & Fitzgerald (2006 p. 4) as ‘the study of individuals and groups in organisations’; however this essay will consider organisational behaviour as the study of investigating the impact that individuals, groups and structures have on behaviour in an organisation for applying knowledge towards improving the organisation’s effectiveness (Robbins, Millet and Water-Marsh 2004). An organisational structure accurately divides, selects groups and coordinates job tasks. Structure contributes to explain and predict organisational behaviour and organisational design. Managers often change organisational structures due to performance and efficiency being low (Robbins et al 2004), they should also ensure consistency in the structure, scale of operations, tasks at hand, need of stakeholders and strategic decision of the organisation, this distinguishes successful organisation from less successful organisations (Wood et al 2006). When changing the structure of the organisation managers should be aware of the six elements of structure: work specialisation is how tasks are subdivided into separate jobs; for example Ford workers had an assigned specific repetitive job such as installing the right front door of the car. This helped Ford to produce a car every ten seconds. Departmentalisation, groups jobs together in an organisation; such as marketing, human resources and accounting for instance Football organisations, Sydney Swans. Chain of command specifies who reports to whom (supervisor or store manager) and how (electronically or by speech). Span of control determines the amount of staff a manager can direct however it also identifies the amount of levels and managers the organisation will need. Centralisation and decentralisation aid in the decision making process of the organisation. Centralisation is where the decision making is intense at a single point in the organisation, where alternatively decentralisation is pushed down to lower level employees. Formalisation shows how jobs in the organisation are standardised (what is there to be done and how should the job be done). Organisational structures are also affected by many other elements such as size, technology and environment (Robbins et al 2004). This essay examines the diverse sorts of organisational structures with its advantages and disadvantages and how different organisations need diverse structures depending on the organisational environment and how managers can test structures to know if they are suitable for the organisation.
The first structure is usually used in all small starting up companies, the simple structure (Mintzberg 1993). This structure has less departmentalisation, a wide span of control, the authority is centralised to a single person and there is a small amount of formalisation; therefore very flat. IBM used this structure when it was put in ‘survival mode’ by then CEO Louis Gerstner. This structure is simple, fast, flexible and inexpensive. FutureKids, a franchise offering children computer and literacy skills, has used this simple structure to run its franchises throughout Australia as small businesses (Robbins et al 2004). The simple structure isn’t strict to small organisations; large companies have used the simple structure successfully such as IMB and FutureKids. However the simple structure is very difficult to maintain in a large growing organisation due to its low formalisation and centralisation causing information overload at the top. Additionally decision making tends to slow down due to its size increase and can be very risky as one person is responsible for everything and could cause the organisation to fail. Therefore this shows there is no ideal structure for all organisations as organisations have a need to...
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