Organizational Structure Design Variables and Innovations

The importance of considering the contextual variables

Size: it is important to consider the size of the organization in terms of number of employees. This is because; larger organizations will require a complex process, specialization and standardization.  Big organizations also have vast structures and several hierarchy levels (Australia, 2015). Having these ideas, managers will be able to employ specialized operations and create formal organization structure and mechanistic structure which will be suitable for holding many workers. Similarly, small business with require less complex process and avoid creating a mechanistic structure which may cause futility (Australia, 2015).

Technology: The importance of considering technology is that it will allow the business to identify technology in terms of task variability. This means that the organization is able to analyze the number of exceptions in a particular task. For example, tasks with a great deal have high task variability and job with less deal has little task variability (Australia, 2015). Top management will be in a position to analyze what type of technology will be employed to deal with task variability. Other point is that technology is implemented with respect to problem analyzability. This means that organization analyses the process used to solve the problems which occur in task exceptions (Australia, 2015).

 

Environment: It is important to consider environment in terms of environmental elements which can have impact in achieving organizational goals and environmental uncertainties. For example, mechanistic structure focuses on structural activities and centralized decisions (Australia, 2015).  Organic structure concentrates on open communication and decentralized decisions.  Through understanding the environment, the organization will be able to manage issues which may occur.   

 

Strategy and goals:  this will help the organization to gain legitimacy and guidelines for making decisions.  Through understanding goals and strategy, organization will fit in both external and internal environment (Australia, 2015). In designing organization structure, it is important to set goals and the strategies which will be used to achieve those goals. This will help organizational members to operate effectively hence increase productivity.

Emerging organizational structures

 Net work organizations: this new structure is flexible and decentralized and managers have the power to control both internal and external relation. Managers can implement the development through creating a social structure of interaction with inter-organizations (Ahlstrom & Bruton, 2010).  In industry level, new work stricture can also be created through creating technological net works in different geographical areas.

 

Virtual organization: this is created by having members’ interaction through telecommunication.  The structure has disseminated entities and their task is connected by information technology.

Circle organizations: organization creates a team for 5-15 members and they are assigned task of producing products. Members have the authority to share skills and utilize the resources in producing goods (Ahlstrom & Bruton, 2010). Members have the problem-solving skills and so they are able to manage the groups and use their own process in the overall project.

 

 

Reference

Australia, C. L. (2015). Organization Theory and Design. Cincinnati OH: Cengage Learning US.

Ahlstrom, D., & Bruton, G. D. (2010). International management: Strategy and culture in the emerging

world. Australia: South-Western Cengage Learning.