Analyzing Your Organization Structure
1) Environmental complexity is the "magnitude of the problems and opportunities in the organization's environment as evidenced by the degree of richness, interdependence, and uncertainty". The environmental richness is high when the economy is growing. Currently the economy is slowly recovering from one of the largest recessions, and the brokerage firms are slowly recovering as well. The market has been doing well and the brokerage firms are doing better as well. While the economy was suffering, the brokerage firms also got hit with different law suites for their analysts' decisions and for their inability to control the mutual fund breakpoints. It was a double hit, with the market steadily…show more content… Typically most of our decisions are made by the president. He is the sole authority on everything. Even though there are 3 other managing partners, not a single one will take it upon himself to make the final decision, our president will be making it. He makes decisions on everything from what investments we should be looking at as a company, to what color shades should the new office have in a branch that he is not even in and never visits. I believe the reason we have this type of structure is because it is a small company that was started by our president and he feels that he can not let go and lose control over anything. I believe he feels that no one can make a decision as good as him and therefore he does not let anyone try. I believe that this type of decision making power gives the company ability to move quickly with the changing environment, considering there are no levels of management that a decision has to pass through; it goes straight to the president. I do feel that many employees feel that the company doesn't value their abilities and views them as incapable of making decisions. Many view the company as a dictatorship run by the president with no use for new ideas or improvements. It would be simple structure more so than a bureaucracy, due to the small size of our firm.
3) As I mentioned in the answer above my organization has a flat hierarchy of authority which is also centralized. The basic structure looks like