Organization Structure refers to the way the organization is arranged to its various levels and hierarchy and the power, authority, roles and responsibilities associated with each structural role in the organization’s structure.
The type of structure determines the following –
a. The working style of the various people in the organization’ s structure – In case the organization has flat hierarchy or the structure, then it is being said that all share equal or almost same level of authority and there won. ould be maximum conflicts as there would be maximum difference of opinion. Whereas in the vertical organization structure or the hierarchy, the ultimate decision making authority or the power lies with the top most management or the board of directors.
b. The kind of organization’s structure will determine the stability of its people and their workings towards the growth and benefit of the company. In case a company provides empowerment to the people who are specialists then the work would be done in a much better manner than the owner deciding on all terms and conditions and doing multitasking without being the specialist and expert in that area.
c. Defines or explains the working style and the movement of the work in a specific direction.
d. Provides the opportunities that could be explored for competition and the business expansion.
e. Helps in the successful development of the strategy and the plan of action.
f. Easy way on the drafting of the gap analysis and the strategy of bridging the gap of competition.
g. Complex structure always create ambiguity and problem in successful running of the organization so it is always preferred that the organization’s structure should always be simple and easily implemented.
There can be many kinds of structure and the controls such as:
a. Functional Structure and Control – Every function is given full control, authority and the freedom to act on the decision that has to be taken with respect to that particular division.
b. Horizontal Structure – Every division functions at its individual level and hence many people with same level of power and control lie in this kind of structure and hence not much levels to take the approvals.
c. Vertical Structure & Control – The structure is such that the supreme authority lies with the owner or the managing director and every single approval to be taken by him so in case he is not available at any point of time, the work suffers and is never done in time.
d. Mix Structure and control – The best organizational structure is when as per the requirement and the needs the structure of the company changes and hence the targetsare achieved in time and there is no lapse or delay in any job, assignment or the work. It has all kinds of structures included in it like Horizontal, Vertical, Functional etc.
So in the end it could be concluded that the structure is most essential for any kind of organization and determines the working, growth and the profitability of any kind of organization at any point of time.
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