ORGANIZATIONAL DESIGN AND STRUCTURE
Introduction
Organizational structures developed from the ancient times of hunters and collectors in tribal organizations through highly royal and clerical power structures to industrial structures and today 's post-industrial structures.
The typical hierarchical arrangement for lines of authorities, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.
A structure depends on the organization 's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.
The Importance of Organization Structure
A number of writers have pointed out the importance of an organization’s structure and the relationship between it and an organization’s size, strategy, technology, environment and culture. Mintzberg (1989) has written extensively and significantly on the importance of organizational structure. Miller (1989) has explored the importance of configurations of strategy and structure. Burns and Stalker (1961) concluded that if an organization is to achieve maximum performance then its structure must fit with or match the rate of change in its environments. Handy (1990, 1993) has discussed the importance of culture in relation to organizational design and structure and the need for new organizational forms. Pascale, Milleman and Gioja (2000, p.197) consider ‘design is the invisible hand that brings organizations to life and life to
Organizational structures developed from the ancient times of hunters and collectors in tribal organizations through highly royal and clerical power structures to industrial structures and today 's post-industrial structures.
The typical hierarchical arrangement for lines of authorities, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.
A structure depends on the organization 's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.
The Importance of Organization Structure
A number of writers have pointed out the importance of an organization’s structure and the relationship between it and an organization’s size, strategy, technology, environment and culture. Mintzberg (1989) has written extensively and significantly on the importance of organizational structure. Miller (1989) has explored the importance of configurations of strategy and structure. Burns and Stalker (1961) concluded that if an organization is to achieve maximum performance then its structure must fit with or match the rate of change in its environments. Handy (1990, 1993) has discussed the importance of culture in relation to organizational design and structure and the need for new organizational forms. Pascale, Milleman and Gioja (2000, p.197) consider ‘design is the invisible hand that brings organizations to life and life to
References: