Organizational Structure

Student’s Name

Institution

Course Name/Number

Instructor

Due Date

Organizational Structure

An organizational structure is a system outlining how particular tasks are directed to realize company’s objectives. Such business activities outlined may include roles, rules and responsibilities. The organization determines the flow of information among employees in the company. Various organization structures are available for different forms of organizations (Erdurmazlı, 2020). Some of the business structures are simple, bureaucratic and professional bureaucratic structures. Design of a business structure is determined by factors such as the firm's size, strategy, and innovation.

Factors Influencing Organizational Structure

Organization Strategy 

Every company should have at least one strategy through which it coordinated its operations to attain business goals. Companies achieve their objectives easier where business strategies, and structures are aligned. For instance, if the company's goal is to introduce new products and services, it should embrace innovative strategies. Cost minimization strategy helps a firm control cost by refraining from unnecessary marketing expenses.

Organization Size

The organization's structure will be dictated by the size of the firm, activities, and number of employees. For instance, a small enterprise with a maximum of three hundred employees can work so well with mechanical structure, whereas a large organization would call for organic structure since it is flexible to environmental changes.

Technology

Every enterprise has at least one technology through which its inputs are converted to output. Research has proved a relationship exists between the routine-ness of the technology the firm uses and the structure that best supports it. More departmentalized company structures support recurring roles. Firms that depend on routine duties have more manual and formalized documentation. Their decisions are more centralized—non-routine role queries for decentralization of decision to facilitate the duties' uniqueness.

Environmental

There are three distinct dimensions to environmental uncertainty: volatility, capacity, and complexity. Capacity is the ability of an organization to grow. Volatility is the magnitude of unforecastable change, and complexity is the level of heterogeneity and concentration among environmental elements. An organization structure should be organic in a highly volatile and complex environment with more dynamic capacity. In case of constant change and competition, a company should be flexible to the changes occasioned by the available dynamics.

Mintzberg’s Five Organizational Forms

Simple Structure

Its primary parts entail strategic apex and use horizontal and vertical centralization to supervise business operations. The organizations contain many top-level managers and few operational staff at the operational level. The simple organizational structures have many technostructure a few support staff who perform overlapping duties.  Since the business entity is small, activities are coordinated informally, and direct supervision is very common. Besides, a simple structured firm can quickly adapt to rapid environmental changes because it has to make a minimal alterations to fit the new changes. The prime objectives of a simple structured business entity are innovation and long-term survival in the market. However, innovation is a challenge to small entities...