Organizational Structure and the Affect on It's Members Essay

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Organizational Structure and the Affect on It's Memebers
MGT501, Module 1, Case

Organizational Structure and the Affect on Its Members
In today’s business economy, it is extremely important for companies and businesses to have a management structure, or organizational design, that optimizes the company’s valuable resources. As companies compete in the free market system of Capitalism throughout the global economy, the need for a successful organizational structure becomes extremely important to gain advantage in the competitive market. Businesses and organizations require an organizational design which allows them to compete in the global economy with a high degree of effectiveness and efficiency.
Trained and qualified employees are …show more content…

Organizational structure includes, but is not limited to, power and reporting relationships such as those in organization charts, behaviors required of organization members by organizational rules, and patterns of decision making and communication among organization members. It encompasses both formal and informal aspects of relationships between members (Ambrose & Schminke, 2003). This section will discuss the aspects of the matrix, mechanistic, and organic organizational designs.
Mechanistic Organizational Structure
According to C.S. Spell and T.J. Arnold, the mechanistic organizational structure is rigid and tight indicative of traditional bureaucratic environments. In this type of structure, power is usually centralized and communication is channeled through rigid hierarchical chain of commands. Job descriptions and decision making styles in the mechanistic structure are very uniform and formal (Spell & Arnold, 2007).
With mechanistic structures, executives make decisions and middle managers implement those decisions through delegation to employees. Because middle managers do not usually have a voice in decision making in this type of organizational structure, middle managers may feel powerless. Middle management may not always agree with executives decisions, yet are required to implement

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