Evolution of Organizational Theory

Evolution of Organizational Theory

Alexander Dahl

University of The People

        Hierarchical organizations are a result of a need for authority among employees. Typically this need arises because of growth in the organization and the need for delegation of duties and work flow. Often this structure allows for an individual at the top to make decisions that will have a wide impact on the minutia of the subordinate staff.

        Functional organizations often offer a more specialized environment where different facets of the organization operate compartmentalized from each other and focus on the various unique lines of business for their division. These organizations typically communicate inter-department functionality at the management level.

        Product organization maintains a focus on specific lines of business and production. In businesses that have many products and services to offer customer, this structure allows for a team to focus on the product line they are assigned to. Having this focus allows the teams to be more adaptive and responsive to and market changes or material demands.

        Matrix organizations allow for maximized communication among pre-production teams. While more record focused departments retain their autonomy, management still retains the ability to apply wide spread company policy. This structure is best suited for the development and implementation of products that require continued development and review.

        These four organizational structures all have benefits and draw backs that for any business. The hierarchical organization stats out as the most influential both historically and from a managerial perspective for various reasons. Firstly, because it illustrates the initial need of an authority to delegate workflows and align staff. Additionally this structure facilitates the span of control for the business lead to offer company culture and policy. Historically it makes sense for this structural format to develop organically in an organization. From here, anyone working in this environment would be able to conceive the early notions that would lead to the more complex structures many business are developing today.