Organization Structure free essay sample

The revised strategies avoid false starts in product research, develop coherent families f products, introduce more products to the market, define new markets etc etc. Change in strategy driven with change in structure. Organizations generate, as they move from simple to complex (products, customer segments, peripherals) high inter- unit Interdependence, thus require greater degree of co-ordination amongst these units. Org Structure acts as a complex co-ordination device formed of specialized units, based on functions performed.Organization Size As more operative people join a growing organization, taking advantage of economic benefits of specialization dads to horizontal differentiation or differentiations. As integrator efficiencies increase, the inter-unit relationships may suffer as each group focuses on its own goals. Management thus seeks remedy through higher vertical differentiation (creating layers) accompanied by Integration of functions under common heads. Like-wise growth may also result In spatial or geographic differentiation.Increased complexity limits top managements ability to directly supervise and control activities. We will write a custom essay sample on Organization Structure or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This control is then made-up-for by formalization or putting into place of robust rules, procedures and processes. Layering in turn distances the top management from direct operations, driving the need to delegate decision making to levels closer to operations. Thus as size increases, organization structure needs to adapt to ensure efficiency and effectiveness.Technology refers to how an organization transfers Its Inputs (financial, human, physical) to outputs. It Is the assembly line mass production at Honda; the instruction methodologies at an university, Nanas efforts at developing space programs So on so forth. The common denominator is the degree of riotousness and organizations lie along a routine-neurotic mutinous. Routine / repetition encourages Increased specialization thus Increased formalization leading to horizontally and vertically differentiated organizations.Environment Organizations must sense change and make appropriate adjustments to stay ahead. Alterations in the organization structure are a major tool management has for controlling the environmental uncertainties and organization complexity is generally inversely proportionate to the environments uncertainty-; more complex or structure and lower the uncertainty (mature markets, stable environment, defined arrest, customer segmentation etc) -; more complex or differentiated the structure.Structure provides a Framework for the organization Differentiates objective into functional targets and helps clarify individual goals and give clear directions Defines inter-unit relationships and guides flow of informatio n, improves communication and coordination Establishes organizational hierarchy, defining decision making and delegation authorities, establishing span of control Efficient application of knowledge, economies of scale through reduced duplication, improved professional identification,