MGT501, Module 1, Case
Organizational Structure and the Affect on Its Members
In today’s business economy, it is extremely important for companies and businesses to have a management structure, or organizational design, that optimizes the company’s valuable resources. As companies compete in the free market system of Capitalism throughout the global economy, the need for a successful organizational structure becomes extremely important to gain advantage in the competitive market. Businesses and organizations require an organizational design which allows them to compete in the global economy with a high degree of effectiveness and efficiency.
Trained and qualified employees are one of the most important assets that companies and organizations have to accomplish company tasks and goals and ultimately have the largest impact on the success or failure of the business or organization. The organizational structure or design of an organization or business has a direct affect or influence on the way that its members communicate, coordinate, make decisions, and how productive they are. The organizational structure may also lead to employee mental health issues such as depression and anxiety, according to C.S. Spell and T.J. Arnold, and the annual cost of lost productivity, increased absenteeism, and turnover because of mental illness to U.S. businesses has been estimated at $44 billion. For this reason, it is necessary for businesses and organizations to analyze and evaluate the effect or influence that the organizational design has on its employees.
Organizational Justice
Organizational justice is the study of people’s perceptions of justice within an organization. There are three specific types of organizational justice which will be discussed. Distributive justice is the perception of fairness in outcomes, such as equity, equality, and needs. Procedural justice is the perception of fairness of the methods
References: Ambrose, M.L. & Schminke, M. 2003. Organization structure as a moderator of the relationship between procedural justice, interactional justice, perceived organizational support, and supervisory trust. Journal of Applied Psychology, 88: 295-305. Liao, H. & Rupp, D. 2005. The impact of justice climate and justice orientation on work outcomes; a multifoci framework. Journal of Applied Psychology. 90: 242-256. Spell, C.S. & Arnold, T.J. 2007. A multi-level analysis of organizational justice climate, structure, and employee mental health. Journal of Management. Vol. 33. No. 5. Sy, Thomas. & D’Annunzio, Laura. 2005. Challenges and strategies of matrix organizations: top-level and mid-level manager’s perspectives. People and Strategy. 28: pg 36.