factors affecting organization size
Factors That Affect Organizational Structure
The organizational structure of your business provides a foundation for lines of communication, responsibility and tasks. As the framework for your business, the organizational structure you select dictates the number of management layers, how your business is functionally divided and the overall reporting structure. Multiple organizational designs can be used to enhance your business’s strategy including simple, functional, matrix, hybrid or a self-designed structure.
Size: Larger business size often equates to a more elaborate or complex organizational structure. As your business expands, additional layers of management, business units and a formal chain of command are generally needed. While a small business may function on an informal structure with limited management oversight, a large business generally needs managerial control to help assign tasks, ensure quality and maintain a focus on business goals.
A company can start out by using one of several organizational structures. However, companies can sometimes increase their effectiveness using multiple organizational structures. Other companies may switch from one type of organizational structure to another to be more effective. The decision for organizational structure usually lies with top management. The size of a company is sometimes the determining factor as to organizational structure effectiveness.
Contingency Theory: In contrast to the classical scholars, most theorists today believe that there is no one best way to organize. What is important is that there be a fit between the organization's structure, its size, its technology, and the requirements of its environment. This perspective is known as "contingency theory" and contrasts with the perspective of classical theorists like Weber, Taylor, Fayol, etc. who thought that there probably was one way to run organizations that was the best.
Size: Size is many times the driving factor for a company’s
The organizational structure of your business provides a foundation for lines of communication, responsibility and tasks. As the framework for your business, the organizational structure you select dictates the number of management layers, how your business is functionally divided and the overall reporting structure. Multiple organizational designs can be used to enhance your business’s strategy including simple, functional, matrix, hybrid or a self-designed structure.
Size: Larger business size often equates to a more elaborate or complex organizational structure. As your business expands, additional layers of management, business units and a formal chain of command are generally needed. While a small business may function on an informal structure with limited management oversight, a large business generally needs managerial control to help assign tasks, ensure quality and maintain a focus on business goals.
A company can start out by using one of several organizational structures. However, companies can sometimes increase their effectiveness using multiple organizational structures. Other companies may switch from one type of organizational structure to another to be more effective. The decision for organizational structure usually lies with top management. The size of a company is sometimes the determining factor as to organizational structure effectiveness.
Contingency Theory: In contrast to the classical scholars, most theorists today believe that there is no one best way to organize. What is important is that there be a fit between the organization's structure, its size, its technology, and the requirements of its environment. This perspective is known as "contingency theory" and contrasts with the perspective of classical theorists like Weber, Taylor, Fayol, etc. who thought that there probably was one way to run organizations that was the best.
Size: Size is many times the driving factor for a company’s