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Organization structure

Paper Type: Free Essay Subject: Business
Wordcount: 1900 words Published: 1st Jan 2015

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Organizations structured in many ways. It can be depend on their objectives and culture. Company structure can directly effect to organization performance.

Organization structure is the one which allocate responsibilities for different departments or employees.

Organization structure is very important part because the wrong organization structure will delay the business success. Aim of the organization structure is maximize the productivity. An effective organizational structure can built relationship between various function of organization.

Organization structures are mainly biased on the size of company .in starting period of the company structure very simple. Because company cannot afford huge amount of money for the salary, basically number of staff is very low. Company try to keep it like that to save money. But it will not work in a long time.

So in a business world we can find lot of organization structures.

* Flat structure

* Tall structure

* Hierarchical structure

* Net work

· Bureaucratic structure

* Matrix structure

· Flat Structure Organisation

Compare to all other organizations flat structure is very simple. These types of organisation will have few layers or just one layer of management. This means that the chain of command from top to button is very short so easy to control. Normally new companies are using this flat structure. So this structure common in small organizations

Diagram: Flat Structure

Flat structure

Advantages of flat Organisations

Disadvantages of flat Organisations

* Easy to communicate between managers and workers

* Workers may have more than one manager.

* Better team sprit.

* May be have some limit to growth of the organisation.

* Decision making process is very easy

* Only few of people are involving in decision making process so decisions are might be wrong.

* Only few managers so can save money

* Function of each department/person could be blurred and merge into the job roles of others.

· Tall structure

In this structure have more steps comparing with flat structure. There is along chain of command, running from top of the organisation e.g. Chief Executive down to the bottom of floor workers/ workers.

Diagram: Tall Structure

Tall Structure

This structure basically exceeds 8 levels of management. This because of members of layers has increase. Advantages are more important than disadvantages

Advantages of tall Organisations

Disadvantages of tall Organisations

* Each manager has a small number of employees under their control. This means that employees can be closely supervised.

* The freedom and responsibility of employees is limited

* There is a clear management structure

* Most of decision is right. Because many people are involve taking that.

* Decision making could be slowed down as approval may be needed by each of the layers of authority.

* The function of each layer will be clear and distinct. There will be clear lines of responsibility and control.

* Communication has to take place through many layers of management.

* Clear progression and promotion ladder.

* High management costs because managers are generally paid more than other workers. Each layer willtend to pay its managers more money than the layer below it.

· Hierarchical structure

In this structure employees are ranked at various levels within the organization. Each level is one above the other. Number of employees is working under one person. Every stage is in the chain. Hierarchical structure divided in two parts, which is Tall Hierarchical structure and Flat Hierarchical structure. Flat hierarchical structure only has few stages.

Traditional hierarchical structure tells each employee duties clearly

· Matrix structure

Matrix structure simple and very effective one. Each person has specific function or role in the organization. This structure design to show each employer has an important part in the organization. This structure does not show that one person important or valuable than another. Another special thing is one person is working under two managers

So he gets right direction. And every person has freedom and autonomy to take responsibility for their work activities, it is like motivation method.

Advantages of matrix structure

* Motivate people from giving responsibilities

* Able to communicate between team members

* Have a chance to solve problems by face to face speaking, through team

* Facilities regular change of membership in product team

Disadvantages of matrix structure

* Employers might get confused, because of working under two managers

* Not more chance to get promotions.(not vertical to upper management position, go team to team )

* High level of stress

Bureaucratic structure

The large organizations are using this structure. The essential part of this bureaucratic are

a. Use all standard method and perform at work

b. High level of control to make sure standard performance.

There are two types of bureaucratic structures one is stranded and other one is professional bureaucratic. Standard bureaucracy is based on well-organized performance of all the same schedule work. Professional bureaucracy depend winning well-organized performance of all the same but complex work. So it needs specialised skill or knowledge. The structure of standard bureaucracy is based on functions, large technical staff and many mid-level managers. In contrast, professional bureaucracy has few mid-level managers.

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Bureaucratic organizational structure

After analyse all of this structures, we cannot tell this structure is the best one for any organization. Because every structure has advantages and disadvantages as well. In this business world we can find different size of organizations. So organization has to choose right structure for their organization. As an example, flat structure is not suitable for big organization like coca cola, because there target market is very wide one. But we cannot say this structure is useless one, because it can be suit for small organization like family business or starting period of company.

After considering all this fact we can say each organization structure is helps to growth of the organization.


Organization structure and culture are depending on each other. There is no one definition for organization culture. Culture has been calculated from range from outlook verity from discipline such as anthropology sociology to the applied discipline of organizational behaviour management science and organizational behaviour.

A set of common understandings around which action is organized, finding expression in language whose nuances are peculiar to the group (Becker and Geer 1960).

A set of understandings or meanings shared by a group of people that are largely tacit among members and are clearly relevant and distinctive to the particular group which are also passed on to new members (Louis 1980).

These are some definition for organization culture

Basically culture is personality of organization. If the organization culture is poor it will affect to growth of organization. An organization culture is comprised set of values, believes, principles and type that people actually think decide and perform.

In book of organizational culture and leadership define culture as a” basic set of assumptions that defines for us what we pay attention to, what things mean, and how to react emotionally to what is going on, and what actions to take in various kinds of situations” (organizational culture and leadership 2nd Edition, 1992, Jossey-Bass),

There are few mogels to describ the culture of an organization . Harrison (1992)suggest four diffarent types of culture and he also classifies in terms of “Greek gods”

Types of cultures

* Power or club culture

* Role culture

* Task culture

* Person culture

Relation between organizational structure and culture and effect on business performance

It is hard to define relationship between organizational structure and culture. But this two are unavoidably linked. To have effective organization culture there should be some kind of organizational structure to allow for efficient work and effort.

To have a more strong and efficient organization structure it should have a strong culture as well. A week or poor culture most likely has an inefficient and less effective organization structure. Which mean week culture can build week structure as well? Or week structure makes week culture? This is the problems that two tend to come in. So this shows this two are related, but no how

In the end best way to describe the relation between this two are somewhat figurative. If the organization culture is the plumbing or water, structure is the pipe. Or in another way to describe this two is, organizational culture is a foot ball team the coach and players are act as a structure.

This shows us this two are hardly combine each other .without organization culture organization structure cannot survive. Because these two depending on each other.

Facts which influence individual behaviour

In an organization, individual behaviour has a big role to do. Otherwise organization cannot achieve their goals. There are lot of factors which affecting individual behaviour at work place.

* Beliefs

* Leadership

* Motivation

* Training

* Skill knowledge and abilities

Some of them,


Everyone has believes, It might depend on their religion. Specially Buddhist, Muslim and Hindu people have lot of belief. These beliefs can effect to the business. Because they never try to cross these limits or never


Leadership means ability to take responsibilities and confidant to lead a team. In an organization manager is not the only one leader in that organization. Other employees also need to have some leadership qualities.


The job of managers is getting done jobs from employees. To do this manager should motivate the employees. So the one who guides them has to appreciate their work. Otherwise they might loos his enthusiastic to work.


If the workers has had proper tanning they will able to give a good service. So productivity will go high.

Skill knowledge and abilities

Each and every one is not born with same talent and skill. Skill is can be specific to each one. If the worker did not get the job what he is capable does the person can get board?

Organizational theory

Leadership style

Leadership styles mean the way they give direction to people and motivate them to approach their target. There are few major leadership styles,

Authoritarian and autocratic

Participative or democratic

Delegative or free reign


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