4.1
Organisation Structure and Design
Introduction
What is the link between organisational structure and organisational behaviour?
“it is a pattern of interactions and coordination that links the technology, tasks, and human components of the organization to ensure that the organization accomplishes it purpose.”
Duncan (1979, p.59)
behaviour in organisations cannot be solely attributed to personalities, personal and group relationships, or leadership,
the effects of structural factors on people are less visible but still important in conditioning behaviour.
Child (2015) suggested that the wrong structure choice prevents an organisation from achieving its goals. He gives five potential problems that may arise from an inappropriate organisational structure (pp.17-22):
loss of motivation
poor quality decision-making
conflict and lack of coordination
inability to adapt to changing circumstances
rising costs.
Basic concepts of organisational structures
Key components that can be used to assess and define an organisation’s structure.
Organisation structure includes the grouping of individuals and tasks into departments
it includes the coordination and integration of elements and devices that enable horizontal communication across and between departments
An organisation’s reporting relationships
Characteristics of organisational structure
levels of hierarchy
formalisation
division of labour
spans of control.
hierarchy creates a clear chain of command
it can also impede interaction and communication between staff.
organisations should try to ensure they only have the necessary number of reporting levels required.
the extent to which procedures, rules, and communication processes are written down, formalised and closely followed
A high level of formalisation brings a great degree of task and role clarity, whilst simultaneously impacting on the degree of flexibility available to staff when making decisions (very low in this instance)
centralisation
Centralisation looks at the extent to which power and authority are concentrated at the top of the organisation or distributed throughout
High centralisation creates clear lines of responsibility and communication, and grants staff at lower levels little autonomy for decision-making
Decentralised organisations with flatter structures allow staff to have more autonomy, which might promote innovation, improve the speed and adequacy of decisions taken by staff, and facilitate their implementation.
Division of labour is concerned with the separation of tasks
Generally speaking, a greater division of labour increases work efficiency but decreases organisational flexibility.
Span of control indicates the number of people being subordinate to and reporting to a member of staff.
flatter organisations have a wider span of control than taller organisations. Narrower spans of control enable closer supervision of staff.
Integration Devices
Integration devices are systems and processes designed to ensure effective communication and coordination
Integration elements consist of linkages of various strengths, providing means of communication and coordination between various individuals, units or departments.
Burns and Stalker (1961) identify two clear distinctive forms of organisational structures, mechanistic and organic structures
mechanistic organisations equate to traditional and rigid bureaucracies characterised by central power, a tall hierarchy of authority, formal rules and narrow job descriptions.
organic organisations are portrayed as flexible, with decentralised decision-making, less clear lines of authority, distributed power and open communication.
The impact of structure on decision-making