Business Management Studies

Business Management Studies

2. The structure of an organization is unimportant. What matters is whether individuals do their jobs well or not. Critically discuss this statement.

Organizational structure is vital for growing companies as it provides direction and clearness on particular issues regarding human resource, and authority of the manager etc. organization should consider of developing formal structure in the early growth stages of the company. The purpose of the organizational structure is to provide guidance to entire company employees by outlining the company's reporting structure and relationship that monitors the company workflow. Therefore, it can be said that the formal structure of the company easily enable the business to add new positions which are necessary for the business (Mills et al., 2006, pp. 455-460).

It is noticeable that without formal structure of the business, it will be difficult for the employees of the organization to identify the reporting authority. In some condition it is more difficult and unclear to exactly identify the reporting authority without having formal organization structure. By having formal organizational structure department are well integrated and can work more effectively and give enhanced productivity to the organization. In addition to this, formal organizational structure helps in identification of internal promotions; this allows company to develop concrete tracks for advancement of current employees at entry level positions (Koontz & Weihrich, 2006, pp. 200-203).

There are various factors regarding the importance of organizational structure such as function, communication, evaluation of employee performance, achievement of goals and solution or prevention of organization. These factors are discussed in details as below:

Function

Particularly organization structure is vital for decision making. Most of the organizations have either flat or tall structure in their hierarchy. It is notable that usually small companies have flat structured organization. For instance, managers might report directly to president and might not have any directors in the organizations and assistants of organizations might be two levels down to the president of the organization. It is notable that for small companies, flat structure provides companies to make rapid decisions, due to their rapid growth along with new products and therefore, need flexibility. It is noted that organizational structure may not be important for the organization with less than fifteen employees. The reason behind this that employees in such small organizations have various responsibilities with employees having multiple functions to do. For instance in small organization a product manager may also have responsibility of conducting marketing research and advertising. But in large organizations there are various levels of management. Therefore, a growing organization which is expanding in large organization may decide to add new levels of management into their organization according to needs. As in large organizations roles are more clearly defined. Hence, organizational structure is important in defining the specific function each person in large organization (Hill & Jones, 2007, pp. 398-402).

Communication

In communication process in the organization, the role of organizational structure is vital. As the distribution of authority is clearly explained in the organizational ...