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Organization Structure: Is Flatter Always Better? Essay example

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Every company has its own unique organisational structure. This can be described as the system or pattern of relationship in which power and roles are given to the employers and employees. It also involves how the company is designed in order to achieve its goals and its communication channels. A good structure is crucial because the strategic decisions made can either benefit or worsen an organisation (Mullins, 2005). For example, a good structure would encourage and motivate employees in order to keep morale and job satisfaction at the highest possible level so that productive efficiency can be reached. This essay will describe the different designs of organisational structures and assess whether in today’s world, organisations are …show more content…

This is because the company would be divided into smaller units related to specific products. As well as this, the division of labour would mean work is specialised which may increase work efficiency as each worker is able to use their skills best suited to the job although in the long run these kind of jobs can become repetitive and employees can become bored. Here, the company is decentralised with divisional managers making the decisions but managers should all be capable to do this. Adaptive structures are designed to deal with changing natures in the workplace.
For these structures, organisations can be centralised which means all major decisions are made from the head office which also means less autonomy and power from the division which can lower motivation levels for the employees. An example of this is Nissan where the CEO is the main man in making decisions such as eliminating the production capacity to lower financial difficulties. Whilst decentralised organisations would transfer its decision powers from the head office to the divisions. This means passing power down the hierarchy which means less standardisation on how things are completed since decisions are made by managers at the divisions. This may be beneficial since the employees would feel some empowerment can take place within its own division without having to consult the head office before passing on the span of control. Decentralised

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