What is an Organizational Structure?
The formal arrangement of jobs within an organization.
Reese (1994:70) sees structure as a mechanism binding the specialized functions of an enterprise to a common purpose.
Why have an Organizational Structure?
According to Andrews and Herschel (1996:131), Every organizational system has a structure that, serves three basic functions. First, it helps to produce organizational output and to achieve organizational goals. Second, structure helps to minimize or at least regulate the influence of individual variations on the enterprise. Lastly, structures are imposed to ensure that individuals conform to the requirements of enterprises and not vice versa. According to Hill and James(1989:223), strategy can only be implemented through organizational structure. Coordinates diverse organizational tasks.
Organizational structure is particularly important for decision making. The organizational structure is particularly crucial for communication. A clear structure makes it easier to see which part of the business does what.
Organizational design is engaged when managers develop or change an organization's structure.
Organizational Design is a process that involves decisions about the following six key elements: (1) Work specialization, (2) Departmentalization, (3) Chain of command, (4) Span of control, (5) Centralization and decentralization, (6) Formalization
There is no best organization structure, rather what suites the organization's situation is what's best for the organization. Every organization structure has its own strengths and weaknesses which addresses the requirements of the different organizations. Environmental changes of an organization such as Government(e.g Fiji) and advancement in technology will impact greatly what Organizational Structures of the future is going to be. Drucker (1992:95) and Peters (1992:103) both agree that tomorrow's enterprises are going to be flatter, less...
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