Organisational Structure

An organization's structure is one of the key factors in whether or not an organization is operating efficiently and effectively. Yet, it is one of the more ubiquitous facets of an organization. An organization's structure does more than just identify the chain of command; it demonstrates the values of the organization and lays out the individual's responsibilities for the organization's success. This paper describes the formal, or traditional, organizational structure and how it compares with other structures. In addition, it discusses how informal culture affects formal structure, as well as the role of power and politics within an organization's culture. Finally, this paper discusses which leadership styles are most effective for traditional and informal organizational structures.

A traditional hierarchical structure clearly defines each employee’s role within the organisation and defines the nature of their relationship with other employees. Hierarchical organisations are often tall with narrow spans of control, which gets wider as we move down the structure. They are often centralised with the most important decisions being taken by senior management.

In the twentieth century as organisations grow bigger, hierarchical organisations were popular because they could ensure command and control of the organisation. However with the advent of globalisation and widespread use of technology, in the 1990’s tall hierarchical organisations began to downsize and reduce their workforce. Technology was able to carry out many of the functions previously carried out by humans.

Advantages of Hierarchical Organisations Disadvantages of Hierarchical Organisations

• Authority and responsibility and clearly defined

• Clearly defined promotion path. • The organisation can be bureaucratic