Strategic Management of Organizations

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Organizational structure

Structure generally means the framework on which an organization is built and functions that keep the organization going. Organizational structure is the operating guideline that informs the members or workers how the organization works.

Structure explains the way members are received, how leaders are chosen, and the process of decision-making. Organizational structure explains the way an organization puts workers and jobs for effective work performance and goal realization (Baligh, 2005).

Channel of communication depends on the size of the organization; small organizations have short channels of communication because the top manager can reach the lowest ranked employee easily. On the other hand, large organizations have long channels of communication because they contain many departments and functions. From these decisions, an organizational structure is established.

Organizational structure may be centralized or decentralized. In centralized structure, the top management is vested with the most of decision-making and total control over the organization’s departments, subdivisions, and divisions.

In decentralized organizational structure, power and authority over control and decisions making is evenly distributed and the independence between departments and divisions is different (Baligh, 2005).

In an organization, regardless of its size, employees’ tasks and complexity is defined by what function it partakes, its supervisors, and managers. Organizations use organizational charts to simplify relationship between its departments and positions and their interdependence.

The finest organizational structure designed by any organization relies on many factors such as its work, revenue, number of employees, geographic distribution of its amenities, and the collection of its trading. Organizational structures have been in existence since the ancient past, they have evolved to date because of their needs and complexities in the current organization.

How Organizational Structure Implement Organizations Strategy

Organizational strategy is the tactic, which an organization uses to meet its future goals, mission, vision, and targets. An organization must compare its present state to the projected future state then look at the difference and plan on how to cover the difference through changing its working tactics.

There are several organizational structures, which include pre-bureaucratic structures, bureaucratic structures, post bureaucratic structures, functional structures, divisional structures, and matrix structures. Organization strategy includes sequence of authority, span of organizing, departmentalization, circulation of authority, and organization’s height.

These elements are integrated within an organization to give out the desired outcome in type of the organization and the management required (Baligh, 2005).

The Basic Building Blocks of Organizational Structure

An organization needs to be built on several organizational blocks to ensure and strengthen its survival. These blocks help in making sure that the organization is focused in its target of meeting its future goals. These blocks include:

Hierarchy

Hierarchy or layers of organization is the primary most component of the organizational structure, individuals’ need to have people above them to obey, respect, consult, and structure the way of achieving a target. Organization’s layer means the length of the line of communication, that is the procedure followed before the information from service man reaches the department manager.

Hierarchy flow of information is mostly exercised in the bureaucratic organizations where the individual must report directly to his or her immediate supervisor. Hierarchy act as a major organizational block because it determines each employee’s authority and responsibility in the organization. Hierarchy makes organization to be organized because every employee is aware of his or her duties (Tannenbaum, 2006).

Formalization

Formalization is another major form of an organization building block. Through formalization, an organization decisions, orders, and standards are passed to all employees. Formalization is closely attached to both leadership and hierarchy. A number of organizations prefer tight bureaucratic system of administration because these systems establish strict orders and methods in the organization.

Bureaucratic systems call for rigid communication channels. On the other hand, some other organizations allow for non-bureaucratic procedures, which allow for collaborative decisions making, employees dissent, and alternative ideas from employees. These kinds of organizations allow for flexible decision-making and channels of communication (Swayne, Duncan & Ginter, 2008).

Divisions

Division is a basic building block for organization structure. Divisions depend on the size of the organization; small organizations can survive on one division in charge of all the operations because their operations are not complicated.

On the other hand, all organization divide their operations according to the departments available such as; information technology department, accounting department, procurement department, transport department, marketing department, human resource department among others are created according to the organizations need.

Other organizations divide the organization according to the production need, these may include vacuum cleaners division, packaging division, processing division among others. This makes it easy for each division to be able to identify its authorities and responsibilities with ease and controlling confusion in the lines of duty (Philips & Gully, 2012).

Temporary Constructs

Temporary constructs are basic building blocks in that they are frequently used by organizations to resolve issues arising from the operations and employees. Most of organizations will assign or create groups for a specified period to handle a problem arising in the organization or take care of a new project, the group may be selected internally or externally.

Most organization prefers dedicated troubleshooters since they are good in getting a solution and working on an issue. Organizations are opposed to this approach though it saves time in handling a certain project (Philips & Gully, 2012).

Advantages and Disadvantages of each of the Building Blocks of Organizational Structure

Hierarchy is advantageous in that those who are in the top positions enjoy a lot of privileges. Those at the top are vested with complex decision-making consequently making it easy for an organization to handle its complexities.

Hierarchy is disadvantageous in that those at the lowest positions feel oppressed at some time because they enjoy no privileges, its procedural for decisions to get to the bottom level and there is limited interaction between the top management and the bottom workers so their problems are less heard.

Formalization of an organization has the following advantages: it makes the goals of the organization to be clearly defined, it makes the business become legal entity, and it clarifies the organization’s objectives. The disadvantages include: formalization creates rigidity, long long-term planning is discouraged, and reduces creativity among employees.

Organization division is advantageous in that it increases specialization and as a result, quality products and services are produced, division allows an organization form the culture of spirit de corps leading to higher production.

Division disadvantages include politics between the divisions may arise, this may reduce production because of the competition between the divisions and divisions may undermine each other leading to inter division organization conflicts (Swayne, Duncan & Ginter, 2008).

References

Baligh, H. H. (2005). Organization Structures: Theory and Design, Analysis and Prescription. New York: N.Y.: Springer.

Philips, J., & Gully, S. M. (2012). Organizational behavior : Tools for success. Mason: South-Western Cengage Learning.

Swayne, L. E., Duncan, J. W., & Ginter, P. M. (2008). Strategic Management of Health Care Organizations. San Francisco: Jossey-Bass Pulishers.

Tannenbaum, A. S. (2006). Heirarchy in organizations: An international comparison. San Francisco: Jossey-Bass Publishers.

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