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UMCDMW-15-1 Introduction to Business and Management

Added on - 13 Oct 2021

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Organizational structure can be defined as a system which is able to outline some
major activities which are directed towards the achievement of organizational goals. The
activities include, the rules, responsibilities and roles. Organizational structure is helpful in
the determination of the ways by which information is able to flow between different levels.
The structure of an organization is mainly dependent on the strategy and objectives. The
structure which is centralized in nature provides maximum levels of power to the top
management for making the decisions related to different organizational activities (Ashkenas
et al. 2015). The report will be based on the analysis of the ways by which organizational
structure is able to affect the success of the organizations.
Discussion related to the organizational structure
As discussed by Barrick et al. (2015), the ways by which lines of authority, duties and
rights of the organization are arranged are considered to be an important part of
organizational structure. Organizational structure is further able to determine the roles and
responsibilities of employees. The power related to decision making is also divided in an
effective manner with the help of proper organizational structure. Different organizations
implement different types of structures which are dependent on the operations. The
organizational structures are based on many different aspects among which two major aspects
will be discussed below,
Span of control – This is considered to be a major aspect of organizational
structure which is able to affect different modern companies. The number of
employees who work under a single manager is defined with the help of span
of control. The departments which are thereby present in the organizations are
helpful in defining the span of control. The organizations are thereby divided
into departments based on number of employees who are a part of a single
area. The departments in organizations are structured based on the functions
which are played by different products and the customers. Departments
operate under different managers and some employees are a part of the
concerned areas (Camisón and Villar-López 2014). The organizations which
implement functional organizational structure form departments which are
based on finance, accounting and marketing. The organizational structures
which are customer based in nature are used when the company serves huge
variety of clients which include corporations and consumers. The span of
control is therefore based on the departments which are formed within the
organizations. Number of employees who belong to a particular department
are thereby under the control of the managers or leaders of that particular
department (Chang, Chen and Chiou 2015).
Height – This is considered to be another major aspect which is able to affect
the organizational structure of different organizations. The levels which are
present between the top management of an organization and the employees
who belong to the lower levels is related to the height. Many different
organizations implement flat organizational structures. The small
organizations on the other hand hire the employees in different fields which
include, engineers and accountants. Small companies may thereby be based on
the lesser levels related to management (Cummings and Worley 2014). Large
companies have taller organizational structures which is helpful in dividing the
workload among the employees.
As discussed by Dosi and Marengo (2015), organizational structure is able to play a
key role in the success which is gained by the company in the industry. The smaller
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