ORGANIZATION STRUCTURE AND DESIGN

Organization Structure And Design



Organization Structure And Design

Introduction

The paper presents the study on the organizational structural to explain the importance of good structure and the consequences of a deficient structure; and to review the relationship structure of an organization and the people who work within it. It will explore the main factors to be considered in the design of organization structure and different methods for the division of work. Also identify levels of organization and the importance of the hierarchy and explore the complex patterns of interrelationships. And distinguish between how organizations look and how they actually work.

The purpose of structure is the division of work among members of the organisation and coordination of their activities so they are directed towards the goals and objectives of the organisation. Structure is the pattern of relationships among members of the organisation. It creates a framework of order and command through the activities of the organisation can be organised and controlled (Mullin, 2007).

Organizational structure

"Structure is an entity (such as an organization) made up of elements or parts (such as people, resources, aspirations, market trends, levels of competence, reward systems, departmental mandates, and so on) that impact each other by the relationship they form. A structural relationship is one in which the various parts act upon each other, and consequently generate particular types of behavior." (Fritz, 1996:4)

In his classic Corporate Tides, Fritz points out that, in practice, organizational structures are rarely designed in a deliberate manner. Small structures grow into larger ones and individual units become the focus of managerial power. Fritz says that (1996:5): 'Departments and divisions become entrenched as power systems.' Any structural change is likely to meet resistance from these power systems.

Fritz also argues that organizations are structured either to advance or to oscillate. Advancement is a positive move from on state to another that acts as a foundation for further advances. Fundamental to structural advancement is the concept of resolution when an outcome is achieved and a particular problem is resolved. According to Fritz (1996:6), management in an organization that is structured to advance coordinate 'individual acts into an organizational tapestry of effective strategy.' When all the individuals in this utopian organization are acting together, the result is synergy, allowing the achievement of 'enormous feats.'

The alternative is structural oscillation. Fritz (1996:6) explains this: 'Oscillating behavior is that which moves from one place to another, but then moves back towards its original position.' So many organizations set out on some change program, full of enthusiasm and energy. But, six months later, the enthusiasm has evaporated and the program peters out leaving very little changed.

Labovitz and Rosansky (1997:7) consider that senior managers can achieve alignment to ensure advancement through:

Carefully crafting and articulating the essence of their business and determining the Main Thing.

Defining a few critical strategic goals and imperatives and deploying them throughout their organizations.

Tying performance measures and metrics to those goals.

Linking those measures to a system of rewards and recognition

Personally reviewing the performance of their people to ensure the ...