Elements of organizational structure business essay

An ineffective structure can cause significant problems for a company, including lost profits, rapid employee turnover and loss in productivity. Management experts use the six basic elements of organizational structure to devise the right plan for a specific company. Those individual groups are typically referred to as departments.

Elements of organizational structure business essay

For managers, organizing is deciding how best to group organizational elements for a variety of structural possibilities. There are six basic building blocks that managers can use in constructing an organization which also known as elements of organizing or organizational structure.

Elements of Organizational Structure are; Designing jobs, Establishing reporting relationships between jobs, Distributing authority among jobs, Coordinating activities among jobs, and Differentiating among positions.

Understanding the nature of these building blocks and the different ways in which they can be configured is most important as they shape the structure and routine the organization is going to work.

The logical starting point is the first building block—designing jobs. Job design involves defining areas of decision-making responsibility, identifying goals and expectations, and establishing appropriate indicators of success.

There many tools available to a manager for designing jobs; Job Specialization Job specialization is the first and the most important tool of all. Job specialization means; breaking down the entire job or task into smaller parts and divide them accordingly.

The approach suggests that job design should be done by considering five core dimensions; skill variety, task identity, task significance, autonomy, and feedback.

Work Teams Work teams are very useful for doing comprehensive and difficult jobs which require expertise from various departments or faculty or the organization.

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Job Rotation As the name suggests; job rotation is systematically moving employees from one task to another. It is now used as a training system. Job Enlargement Job enlargement involves increasing the total number of tasks workers assigned and performs.

Job Enrichment It is similar to job enlargement but a more comprehensive approach. Job enrichment includes increasing the number of tasks and the portion of control over these tasks.

Here managers have to give authority along with the responsibility of the jobs. Departmentalization or Grouping Jobs Departmentalization is a grouping of jobs according to some logical arrangement, the second building block of organization structure. Departmentalization refers to the formal structure of the organizationcomposed of various departments and managerial positions and their relationships to each other.

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As an organization grows, its departments grow and more sub-units are created, which in turn add more levels of management. This often creates less flexibility, adaptability, and units of action within the firm.

There are several bases for departmentalization. Common bases are; Functional Departmentalization Functional departmentalization groups together those jobs involving the same or similar activities. Product Departmentalization Product departmentalization involves grouping and arranging activities around products or product groups.

This method places all the resources and authority under one manager to get a product manufactured and marketed.

Elements of organizational structure business essay

Customer Departmentalization Customer departmentalization is used when great emphasis is placed on effectively serving different customer types.The Role and Responsibility of Company Leadership in Shaping Organizational Culture - According to (Organic Workspaces, n.

d) an organization’s culture refers to the observable, powerful forces in any organization, usually constituted by the employees’ shared values, beliefs, symbols, and behaviors.

Index Organizational Theory and Behavior © , David S. Walonick, Ph.D. Classical Organization Theory. Classical organization theory evolved during the first half.

An essay has been defined in a variety of ways. One definition is a "prose composition with a focused subject of discussion" or a "long, systematic discourse".

It . The organisational structure in any business is important.


To survive, all organisations have to be able to accomplish tasks and this requires carrying out certain duties. Structure splits the tasks of the whole organisation into smaller and more practical chunks, and allocates them to sections of the organisation that are held responsible for.

Published: Mon, 5 Dec Every company has its own organization structure. Organizational structure can be described as the systematical process of .

Published: Mon, 08 May Management deals with the process that drives the organization towards its performance. The processes which are to be followed to initiate the organizational structure and to create strategies and the steps to be taken by managers are all about management.

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