Organizational Structure

MGT501

Organizational Structure

Organizational structure dates back to the beginning in the 1800’s and continued to modify into three distinct eras of evolution. One must understand the framework of elements that are the foundation of an organizational structure. There are six key elements to include: work specialization; departmentalization; chain of command; span of control; central/decentralization; and formalization. Each of these specific elements plays a role in making sense of the dynamic of what is called organizational structure.

There are many organizational structure designs in use by businesses today. The simple structure, the bureaucracy, and the matrix structure are three blueprints that are common. A look at each type will show inherent benefits as well as drawbacks.

Simple organizational structure is characterized by several factors such as a low level of departmentalization and centralized authority in one person. A good example of a simple structure design would be a small construction company. The business has a limited capacity for employment and space and the owner has the primary decision-making authority.

Having a simple organizational structure does have benefits as well as drawbacks. For the owner, it might be overwhelming if the business booms and additional employees are required. For the worker, they may feel that their career is stagnating due to lack of advancement. According to Kanter (2004), “Opportunity shapes how much ambition people have, how much turnover there is, and so forth” (p. 101). This feeling can have a direct influence of the motivational behavior of most employees.

Bureaucracy organizational structure can be summed up with one word standardization. Standardization is the key concept for all bureaucracy-run enterprises. If one were to take a look at how the U.S. military operates, for example, there is a division commander who is normally a general officer. The division commander generally...