Organizational Structure Running Head: Organizational Structure
Organizational Structure Running Head: Organizational Structure
ORGANIZATIONAL STRUCTURE
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ORGANIZATIONAL STRUCTURE
An organizational structure outlines how certain activities are directed in order to achieve the
goals of an organization. It determines the chain of command and dictates how information flows
from one level to the other within an organization. A successful organization structure clearly
defines an employee’s job and how it fits within the overall system. It is very important for the
employees to know who to report certain information or if they have an inquiries , whom they
would consult.
The organizational structure is either centralized or decentralized depending on its goals and
agendas. Centralized structure has a clearly defined chain of command that allows decisions to
flow from top to bottom a perfect example being the Military while the decentralized structure
powers are divided among various levels of the organization. There are usually built in
hierarchies with some having more powers than the rest. Teams formed are empowered to make
their own decisions and coming to a conclusion without necessarily getting approval from the
senior managers. This helps the company to remain fast, agile and adaptable to any changes for
There are four main types of organizational structure .There are some factors to consider before
choosing the type of organizational structure; the goals the business has, the industry and the
company’s culture. First we have The Functional structure or Bureaucratic which is the mostly
used by small and medium sized businesses and division is mainly as a result of specialization of
business units located around the world. Flatarchy, thirdly is mainly used among many startups
and it flattens the hierarchy of and chain of command and gives its employees a lot of autonomy
Lastly, The Matrix structure which is mostly confusing and least used maybe because it has two
managers, the project and functional managers whereby the project manager deals with project
planning, execution and completion while the functional manager deals with operational and
technological management. There are other structures such as: line structure, line and staff
structure, organic, virtual and project structures. Organizational structure has its importance:
defining those in charge, grouping by ability, defining of responsibilities and rules, improve
employee engagement, healthy team environment, decreased turnover and elevate productivity.
Organizational change is the process by which a business alters key components of its strategy or
operations. Launching a new product, switching of the used structure are some examples of
changes that can occur. The main form of change involves the structure, technology and the
culture. Some of the main causes of change include: a change in the government and government
priorities, merges and acquisition, strategy and structural changes. Planning, leadership,
management and maintenance are some pillars of change. A direct chain of command from top
control oriented and a gateway to higher ranks in your career are some of the advantages of
hierarchical organizational structure. Never the less it has its disadvantages such as: restriction of
information to some employees, slow decision making and added cost because of the extra layer
of management.
ORGANIZATIONAL STRUCTURE
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