Organizational Structure Of The Organization - 3890 Words

Nowadays, with the rapid modernization of daily life and living standards increase quickly, people s needs for quality of products and services therefore also increase. For this reason, enterprises need to set up the structure and policies to suit the changes of the market. One of the essential and most important factors to achieve that is the organizational structure. Organizational structure theory is especially useful for people who manage organizations, or who aspire to do so in the future. It enables the manager to see that his or her organization and its problems are rarely wholly unique. Usually, much of value can be learned from examining the behavior of other organizations in broadly similar circumstances. Organizations,†¦show more content†¦Part 2: The important role of organizational structure in one business. Part 3: The case study â€Å"how to create an effective organizational structure† I. Organizational structure: 1. Definition: An organizational structure is defined as â€Å"the formal system of task and reporting relationships that controls, coordinates and motivates employees so that they can achieve an organization s goals†. It consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. 2. The classification of organizational structure a) Pyramidal structure: Pyramidal structure (also called hierarchical or line structure) is one of the simplest structures with one person or a group of people at the top and number of people below them. All the people in the organization know who their superior and immediate subordinates are. This kind of structure is suitable for small businesses where there are few subordinates or organizations where there is largely of routine nature and methods of operations are simple. Advantages Disadvantages Simple to establish and operate Promotes prompt decision making Easy to control Communication is fast and easy as there is only vertical flow of communication Lack of specialization Managers might get overloaded with too many things to do. Failure of one manager to take proper decisions might affect the whole