Organizational structure /
Pages: 5 (1413 words) /
Published: Apr 15th, 2014
Since the organizational structure determines how the roles and responsibilities are allocated and how they will be monitored as well as the flow of communication between different levels and sectors, it is entirely dependent on the organizations goals and how it wants to reach them. In centralized structures all the decision making power is retained at the top level of management and all the other departments are closely monitored and controlled, While in the decentralized structure decision making power is delegated to the lower levels as well to an extent to increase the speed of implementation as well as increase job satisfaction among other things.
Organizational structure can be categorized into two different dimensions, vertical and horizontal. The vertical organizational structures have many different levels of authority with individuals in management or supervisory positions having a small or narrow span of control (span of control being the number of subordinates working under an individual) compared to the horizontal structure. A narrow span of control is easier to handle and communicate with. It also requires less management skill then to control a larger number of people like in a wide span of control. Horizontal organizations structures tend to have a wider span of control i.e. many subordinates under one manager or supervisor. Horizontal structures tend to have better communications and are generally cost effective for an organization due to not needing many managers.
Types of Organizational Structure
Companies tend to organize themselves in different ways according to their needs. "Appropriate organizational structure depends upon the unique strategy of the business, its unique customer base, its unique sense of products and services and its management of these considerations as they are dispersed throughout the enterprise" (Fontaine, 2007).
Some of the major structures are as follows,