Monday 28 October 2013

ORGANISATIONAL DESIGN AND STRUCTURE

The structure of an organisation is key to its success,however,this depends on the size of the organisation.Structure makes possible the application of the process of management. According to Drucker,it is the correct design of structure that is of most significance in determining organisational performance.Structure in an organisation provides the framework for the activities of the organisation and must harmonise with its goals and objectives.It defines tasks and responsibilities,relationships and work roles,and channels of communication.It serves as a means of improving performance by monitoring the activities of the organisation,coordination,social satisfaction of staff and clear defined roles and objectives.

According to Mintzberg,formal structure is the documented, official relationships amongst members of the organisation and an informal relationship as the unofficial relationship within the workgroup.Lack of clear and defined roles causes confusion who is to do what task in a routine and formalisation of roles enables organisations to reduce,predict and control variability.

Burns and Stalker (1961) proposed a linking relationship between formal structure and organisational performance,arguing that organisations with organic or loosely coupled networks are better adapted to dynamic environment.However,organisations that adapted to bureaucracy(Weber),which means clearly allocating specific roles and responsibilities within a defined hierarchy were viewed as more suitable for static environments.

An organically structured organisation is a flexible network that exists dependently and takes into consideration the needs of their staff.For an organisation to be organic,workers and staff have an equal level of participation and communication is in a free form.Organic organisations thrives on the power of personalities and relationships,lack of rigid procedures and communication,and can easily adapt to its environment or challenge.It is said to be the the most adaptive form of organisation.

An example of such organisation could be said to be Google.Google is the biggest internet search engine, with a turn over of more than $40m.Google has been keeping the pipeline of innovation by tapping its employees and letting ideas percolate up.It is a diversified organisation which means that it has chosen to serve new types of customers in unfamiliar markets and with opposition of new incumbent competitions,all of which tend to increase total risk for the company and placing its core resources under restrain.The companies strategy is to have none and it encourages free thinking and always looks for new ways to empower the members of staff.



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