Organisational Structure and Design

Categories: Design Organization Organizational Structure

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According to Andrews and Herschel (1996:131), every organizational system has a structure that, serves 3 fundamental functions. First, it assists to produce organizational output and to attain organizational objectives. Second, structure helps to lessen or a minimum of manage the influence of individual variations on the business. Last but not least, structures are enforced to ensure that individuals comply with the requirements of business and not vice versa. According to Hill and James(1989:223), the technique can only be executed through organizational structure. It deals with diverse organizational tasks.

Organizational structure is especially important for choice-making.

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The organizational structure is especially important for communication. A clear structure makes it simpler to see which part of the business does what.

Organizational design is engaged when managers establish or alter a company's structure.

Organizational Design is a process that involves decisions about the following six key elements: (1) Work specialization, (2) Departmentalization, (3) Chain of command, (4) Span of control, (5) Centralization and decentralization, (6) Formalization.

There is no best organization structure, rather what suits the organization's situation is what's best for the organization.

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Every organization structure has its own strengths and weaknesses which address the requirements of the different organizations. Environmental changes in an organization such as Government(e.g Fiji) and advancement in technology will impact greatly what Organizational Structures of the future are going to be. Drucker (1992:95) and Peters (1992:103) both agree that tomorrow's enterprises are going to be flatter, less hierarchical, and more decentralized.

Benton and Lloyd (1992:116) see that in the future the key challenge for any enterprise is being able to keep the responsibility at the top while effectively delegating authority for action further down.