Organizational Structure Essay

1149 Words Jan 30th, 2013 5 Pages
Date: January 18, 2013

To: MG 561 Class

From: Jessica Rushing

Subject: “Organizational Structure”

Introduction:

Organizational structure provides the framework of an organization determining how roles and responsibilities are delegated throughout the different levels of the organization. It has been defined by some as the looking glass through which coworkers see their organization and its surrounding environment while others have described structure as the backbone of the organization. In this memo, I will briefly discuss the importance of organizational structure, give examples of some major organizational structures, and provide factors influencing the choice of organizational structure.

Importance of Organizational
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How a manager develops an overall strategy, views freedom and values the organization will all affect the structure of the organization. Operation’s task and degree of technology are also important factors. Finally, the environment plays a vital role in the organization’s structure. Environments that are complex require structure to be decentralized while hostile environments require the structure to be very centralized. An environment which is constantly changing requires a flexible structure (Naoum, 2001).

Conclusion If an organization plans to be successful, it must carefully evaluate all internal and external factors before determining what type of structure it chooses. It is important to evaluate these factors from time to time to determine if there is a need for reorganization. It is only with the proper structure that an organization will have an effective strategy and succeed. Each structure will have its advantages and disadvantages to the organization. Without some type of organizational structure, the workplace environment would be chaotic (Marquis and Huston, 2009). Finally, it is important to note that organizations may use more than one type of organizational structure. This is especially true of large organizations, often with separate subsidiaries (Taylor, 2006).

IBM Recommendation

Some 80 years after International Business Machines Corporations (IBM) was founded, the company was still operating

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