An Examination of Economic Factors Influecing Business Perfomance of Sme

ST. JOHN’S UNIVERSITY OF TANZANIA

SUBJECT: GM

NAME: JOSEPHINE WALWA

Question 1: Give a brief note on what organization structure is and explain with suitable example how structure and productivity can be linked to each other.

An organizational structure its typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.

A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions.

In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.

Organization structure fig. 1

Organization productivity refers to the capacity of an organization, institution, or business to produce desired results with a minimum expenditure of energy, time, money, personnel, materiel, etc. This productivity is related or linked to the structure of the organization into various aspects or factors.

Structure and Productivity can be linked to each other into following ways:-

Structural Flaw is the famous link between structure and productivity because if your organizational structure is not set up properly, information is not able to travel where it is needed. If the middle management team does not have effective channels of communication with the executive team, important company information could take days before it reaches the entire staff. Flaws in your organizational structure that cause breakdowns in...