Benefits of Organizational Restructure
This paper will begin with an overview of different organizational structures, how they operate, and why a flattened hierarchy blended with participative leadership is beneficial for the success of most organizations in operation today. This will be followed by analysis of the applicable literature and will conclude with a suggestion of how to implement organizational restructure.
Introduction
Organizational structure is the framework around which an organization is built. The structure of an organization describes how members are accepted, how leadership is chosen, and how decisions are made. There are several types of organizational structure, however, the two most common today are the flat structure and the hierarchical structure. A hierarchical structure follows the traditional pyramid where the CEO is at the top and everyone else is typically subordinate to someone else. The layout is vertical with multiple layers and staff level employees are typically at the bottom. While this structure can be effective, it also has drawbacks. Communication is not always as effective in this structure. Those at the bottom rarely hear directly from and thus feel less connected to those at the top. Organizational commitment then becomes less prevalent as those working at the bottom feel less valued and feel less ownership and are less likely to buy into new initiatives or organizational changes. A flat structure, however, refers to an
The hierarchical organization structure is pyramid-shaped. At the top of the structure is a single person, who has a small number of people reporting directly to them. Each of these people has several people reporting into them and the number of people at each level increases as you move down the structure.
A Hierarchical structure is a term used to organise a business into different categories of employees that contain multiple types of groups, which would be typically in a chain of commands that is usually in a pyramid that contains a large number of employees, so the lower part of the pyramid having the responsibility of a small role, meanwhile the upper part of the pyramid consists of roles that carry a big responsibility. However, there is one rank that is one
The organizational structures within a company can be the determining factor if a business can run efficiently or run chaotically into ruin. The organizational structure is the different hierarchy’s and arrangement of authority, roles and duties in an organization. The Cheesecake factory has a very effective organizational structure which allows for its operations to run smoothly and enables the Cheesecake factory to be one of the highest earning restaurant chains. The structure contains three main levels. The first and highest level is the board of directors which contains 7 members, including the CEO David Overton and 6 directors. The next level of hierarchy called N-1 contains 7 levels including the CFO, President, Area Operations,
Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery
Organizational structure indicates the company's formal reporting relationships, procedures, controls and authority, & decisions making process. An organisation's strategy is its plan for the whole business that sets out how the organisation will use its major resources. An organisation's structure is the way the pieces of the business fit together internally. It also covers the links with external factors such as partners and other parties. For the company to deliver its plans, the component of the structure must cooperate with each other
Having organizational structure also entails having what is called an organization chart. An organization chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. Sherill believes you need an organization chart so that you are aware of who to report to. Where Sherill is currently employed, has not had anything set up this way in a few years. People are not sure who they are to report to and often report to whoever they feel like. She has seen a few employees leave the company for other jobs because they felt that their job lacked structure and it was difficult for them to work in a place like that.
The structure of an organization is very important because it determines the different roles and how all the departments perform. The organizational structure consists of a group of people that works together to achieve the goals that are implemented.
The explanation of organizational structure is of the business, in such a way to execute and meet business goals. There are two structural design types; vertical and horizontal. Vertical organizational structure graded with progressing ranks of accountability and activity as its name implies. A strong organizational structure is an equal allocation of the control, as its name implies. A strong organizational structure is an culture in which all members possess the same beliefs, value, and goals. Four companies with strong organizational structure in the industry of paid television providers are Time Warner Cable Directv, Cox communication, and Dish Network. All four of these companies have an detailed organizational structure with various levels of power structure.
An organizational structure is a framework set for certain activities at the work place like coordination of activities, supervision of employees and task allocation to be organised (Mills, 2005).
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure:
Effective organizational structures define how job tasks are subdivided, grouped, coordinated, and managed. Six key components of organizational structures include division of labor, departmentalization, chain of command, span of control, centralization, and formalization (Remme, Jones, Van der Heijden, & De Bono, 2008, p. 79). Each element influence how employees interact with each other to reach organizational goals. Different structures are common in similar organizations among high performing organizations (Reimann, 1974, p. 707). The most appropriate structure will depend on the unique needs and culture of the organization.
Structure and hierarchy come from how work and the work processes are coordinated together and relating how tasks and coordination of these tasks is to be obtained. When determining the authority in the structure of an organization, there are two major options, centralized and decentralized. A centralized organizational setup is where the authority to make important decisions is retained by managers at the top of the created hierarchy whereas a decentralized organizational setup is where the authority to make important decisions about organizational resources and to initiate new projects is delegated to managers at all levels in the hierarchy. Each choice is made based upon the main goal/task of the organization and what would better fit the organization. Whether work/the
Organizational structure is a formal relationship between management and the employees. It is a way to motivate the employees and get them to working. It is also away to get employees to follow the company goals, and work together as a team. To make an organization work they need to have an organized structure to be able to run the company. The mission
“Every structure should be built to support its work load” This statement supports the use of the organizational chart within the work place, can you begin to imagine the confusion that would exist without it? In a company organizing, is to arrange or to position resources strategically in order to achieve goals. It is imperative for a company to function efficiently, under the use of an organizational structure. An organizational structure provides balance in the work environment and monitors the workflow of all employees. It also provides growth in the organization, in terms of new employment and other major achievements. A company that exist without practicing organizational structure would cause a lot of confusion and chaos as it relates
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. (Investopedia, 2017) , It determines the guidelines of activities such as task distribution, coordination, and supervision to reach and achieve organizational objectives. The organization can be structured in various ways, depending on its objectives.