Organizational Environment

Organizational Environment

[Name of the Student]

[Name of the Institute]

Organizational Environment

TASK 2

Organizational Structure

Organizational structure is the way in which the organization arranges its people and job in order to accomplish the task efficiently without hurdles. It embraces the allocation of tasks, coordination as well as supervision in order to enhance the productivity to accomplish the aims and objectives of the organization. Development of appropriate organizational structure is exceptionally crucial as it facilitates the members of the organization with distinct guidelines regarding their processes. However, it is more desirable when the size of the organization is large and face to face communication is not possible for all the members of the organization. Organizational structure enhances the communication between the members and provides identity to the people. However, it should be noticed that the choice of the organizational structure depends heavily on the type of the industry and they technology used in the organization. In the same way, size of the organization it is crucial factor that influences the adoption of the appropriate structure for the organization (Menguc, & Auh, 2010, pp. 820-831).

History of Organizational Structure

The importance of organizational structure was realized in ancient times. The early theory of the organizational structure suggests that the organizational structures are crucial for the efficacy and competence as a matter of choice. However, in 1960's a changed was observed in the perception of the theorists regarding the importance of organizational structure. It became an extremely caused phenomenon. The theorists of the 21st century (Lim, Griffiths and Sambrook) realized the actual significance of developing appropriate organizational structure in congruence with the requirements of the organization to proficiently meet the desired goals (Csaszar, 2012, pp. 611-632).

Crucial determinants of Organizational Structure

Nature of the Business

Size of the Organization

Development Stage

Overall Business Strategy

Desired Organizational Culture

Types of Organizational Structure

Traditional Organizational Structure

The tradition approach of the organizational structure focuses on the following crucial decisions

division of Labor

Integration of departmentalization

Decisions related to the grouping of people and jobs

Selection of decision making authorities

The traditional approach of the organizational structure can best define through the chart illustration in order to extricate each and every division and the hierarchical level of the division according the decision making authority.

Functional Structure

The Functional Structure is the one in which the organization divides its labor force on the basis of their specialized tasks. For instance, the Finance department would be staffed only those whose educational background and experience matches the requirements of the finance projects. Functional structure of the organization is highly beneficial to enhance the efficiencies within the division as well as to facilitate the communication between the functional group of the organizations to make the environment more flexible and adoptive.

The functional structure is best suitable for the organizations that have specified tasks more specifically for the producers of the standardized products so that they can efficiently produce large volume of the good in low cost. Moreover, functional structure is suitable for the medium sized organization to reduce the communication gap by dividing the people into divisions as per their nature ...