Organization Structure has impact, effects and influences on many and most of the aspects of an organization that determine its performance. Most important is the kind of effects it has to the people within the organization, from the staff to the management and even its owners or stake holders. The aspects of an organization that are influenced by the organization structure are
- Effectiveness and efficiency
- Internal communication
- Employee morale
Different types of organizational structures exist, each with its own pros and cons, each with its own effect on the overall organization behavior. There are three main types of organizational structures:
- Hierarchical Structures
This is the most common structure used in most organizations. Organizations that use this type of structure have the following distinguishing features:
- A relatively few number of managers exist, thus few control the organization
- Under each manager is a few number of individuals or staff or units
- Managers’ functions are of wide extent and they are appointed on the basis of merit
- A direct style of management is employed
- The structure of the organization resembles a pyramid
A good example of an organization using this structure is PWC (Price Water House Coopers). This is because a rigid and defined hierarchical structure ensures a disciplined staff that knows their defined roles.
- Team Structure
This structure aims to create links between the informal and formal relationships that affect and influence the life of a worker in the organization. Performance and conduct in this organizational structure is determined by interpersonal relations. Its features are:
- Managers acts as group leaders and facilitators than the traditional role of the final decision maker.
- Manager’s chief roles are setting objectives and the evaluation of the performance of the units or staff under their leadership
- The work environment and work style within the organizations are more interactive and participatory. Individuals have the ability to input ideas that influence the whole organization
- The structure emphasizes on the focus on tasks, completion of collective objectives, and in general, accountability to the team that one is assigned to or operates within.
- Arising issues in the organization are dealt with by temporary task forces or initiatives that cut across the whole organization.
A good example of such an organization is Google. This kind of structure works for Google as the input of its employees is vital to its success. This is because the company thrives and flourishes with a creative staff. The staff are grouped into teams that work on different projects.
- Network Structures
This kind of structure employs the sharing of data, information and resources between independent or semi-independent organizations. Features of this structure are:
- There is an autonomous nature in which programming and functional units operate.
- Services that are required by all units are provided by a small core infrastructure
- The approach between units is fluid and very responsive
- Organizational components have a flexible coordination approach
- Strategic alliance among the involved partners forms the foundation of the decision making process.
A good example of an organization using this kind of structure is the Red Cross where different charters of the organization function in different aspects of the community hence a strategic alliance is formed with similar organizations as the WHO and CARE to ensure a cost-effective successful community program. There would exist one senior project manager to oversee the project but a network structure is maintained.
There is no single structure that can be said to be superior to the other. This is because a particular structure is suitable to a particular kind of organization. The market in which an organization is involved in or its operations will determine the kind of structure the organization will take-up.
Works Cited
Jenlinek, S. (2010). The Impact of Management Practices and Organizational Structure on Firm Performance: A Cross Country Empirical Analysis. München: GRIN Verlag GmbH.
Miller, K. (2009). Organizational communication: Approaches and processes. Boston, MA: Wadsworth Cengage Learning.
Phillips, J., & Gully, S. M. (2012). Organizational behavior: Tools for success. Mason, OH: South-Western Cengage Learning.
