Organisational Structure
Organizational Structure:
A Critical Factor for Organizational Effectiveness and Employee Satisfaction
August 2007
Craig W. Fontaine, Ph.D. Northeastern University College of Business Administration
Based on: C.W. Fontaine, How Organizational Structure Impacts Organizations. First Annual Conference on Organizational Effectiveness, Chicago, IL 2006
© 2007 Northeastern University
Executive Summary
“Organizational structure is perhaps the least understood and most under-appreciated topic in business.” James Schermerhorn, Jr., Professor, Ohio University
Organizational Structure is a topic seldom contemplated by most people working in organizational settings. We all go to work every day, go to assigned locations, and perform our jobs — and we don’t ever think about how our organization is arranged. However, Organizational Structure is critical both for a company and its employees. People should think very carefully about the organizational structure of the companies for which they work or of companies for which they intend to work. In the long run, Organizational Structure can spell the difference between success and failure for a company, as well as for the individuals who work there. The purpose of this white paper is to examine those challenges facing any company wherein Organizational Structure is not probably aligned with business strategy, and to consider the benefits and pitfalls of a number of Organizational Structure options as they pertain to the longterm success of individual employees and the company as a whole.
Organizational Structure: A Critical Factor for Organizational Effectiveness and Employee Satisfaction
2
The 4 Essential Management Functions
“Too often ideas get rejected because they have to travel too far in the organization filled with fiefdoms and inevitable roadblocks.” Mitch Thrower, Author, "The Attention Deficit Workplace“
The first thing to consider is that most people who study Management know that
A Critical Factor for Organizational Effectiveness and Employee Satisfaction
August 2007
Craig W. Fontaine, Ph.D. Northeastern University College of Business Administration
Based on: C.W. Fontaine, How Organizational Structure Impacts Organizations. First Annual Conference on Organizational Effectiveness, Chicago, IL 2006
© 2007 Northeastern University
Executive Summary
“Organizational structure is perhaps the least understood and most under-appreciated topic in business.” James Schermerhorn, Jr., Professor, Ohio University
Organizational Structure is a topic seldom contemplated by most people working in organizational settings. We all go to work every day, go to assigned locations, and perform our jobs — and we don’t ever think about how our organization is arranged. However, Organizational Structure is critical both for a company and its employees. People should think very carefully about the organizational structure of the companies for which they work or of companies for which they intend to work. In the long run, Organizational Structure can spell the difference between success and failure for a company, as well as for the individuals who work there. The purpose of this white paper is to examine those challenges facing any company wherein Organizational Structure is not probably aligned with business strategy, and to consider the benefits and pitfalls of a number of Organizational Structure options as they pertain to the longterm success of individual employees and the company as a whole.
Organizational Structure: A Critical Factor for Organizational Effectiveness and Employee Satisfaction
2
The 4 Essential Management Functions
“Too often ideas get rejected because they have to travel too far in the organization filled with fiefdoms and inevitable roadblocks.” Mitch Thrower, Author, "The Attention Deficit Workplace“
The first thing to consider is that most people who study Management know that
References: Adapted from Romme, A.G.L., (2003), “Making a difference: Organization as design”, Organization Science, 14, pp. 558-573. Based on Davis, S. & Lawrence, P. (1977) Matrix, Addision-Wesley, pp. 4-5. 13 Galbraith, J.R., (1994) Competing with Flexible Lateral Organizations, Addision-Wesley, pp. 101-102. Based on Spector, B., (2007), Implementing Organization Change: Theory and Practice, 1st ed., pp. 141, Pearson Prentice Hall. 15 16 Thompson, A. & Strickland, A., (2003), Strategic Management Concepts and Cases, 13th ed., pp. 129, McGraw-Hill Irwin. 17 Source: Discussion of personality is loosely based on: McClelland, D