Organizational Structure: Todays Business Environment Essay

Question:

Discuss about the Organizational Structure for Todays Business Environment.

Answer:

Introduction

An organic organization structure is one in which the structure is highly flexible, with individuals having little job specification. There are fewer layers of management than other organizations, as well as a highly decentralized mode of decision making. The level of direct supervision is low. For these reasons, the organization is well adapted to respond to environmental changes, both within and beyond the organization. For this reason, I agree that in the rapidly changing business environment, it is only an organic organizational structure which can be effective in enabling an organization respond adequately to threats and opportunities that such changes may portend.

Impact of organizational structure on organizations

Steiger, J., Hammou, K., Galib, M., 2014. An Examination of the Influence of Organizational Structure Types and Management Levels on Knowledge Management Practices in Organizations. International Journal of Business and Management, 9(6), 43-57.

Organizations are greatly affected by the strategic decisions they make. Chief among these is the type of organizational structure that they choose. It determines efficiency, market development and other important elements of success. Organizational structure also determines the type of culture which will take hold in the organization. If the organization promotes open communication and a low power distance between different levels of management, it will be reflected in an organic organizational structure. Knowledge sharing is also dependent on organizational structure, whereby information is more easily shared across an organization with an organic structure.

Rishipal, D., 2014. Analytical Comparison of Flat and Vertical Organizational Structures. European Journal of Business and Management, 6(36), 56-66.

Every organization has to choose the organizational structure which will most appropriately serve its business needs. The decision is based on various factors, including nature of business and the environment the organization finds itself in. Invariably however, every sector of the economy is faced by rapidly changing trends, brought about by the increased interconnectivity of the global economy, ease of access to resources and government regulations. All these factors mean that only organizations with a structure more responsive to environmental changes, the less bureaucratic the structure is, the more responsive it will be to change, and the more successful the organization is likely to be. Therefore, whereas the nature of business is an important factor in determining the structure to go for, response to change should be the guiding factor.

Individual adaptation

Kanten, P., Kanten, S., Gurlek, M., 2014. The Effects of Organizational Structures and Learning Organization on Job Embeddedness and Individual Adaptive Performance. Procedia Economics and Finance, 23(2015), 1358-1366.

The rapid change illustrated before also affects the way employees work. As people change jobs, and the nature of their present jobs changes, they need more support than ever form their employers to be better performers. This means that the organization must have structures in place that enable employees to be mentored, trained, and at all times be accorded the help they need to cope. This also calls for a greater level of knowledge sharing as indicated by Steiger, Hammou and Galib (2014). Or these things to be possible, it is important that the organization have a more organic structure, in which employees are at all times ready to take on different roles, and can find help as they need.

Stokes, A., 2005. A study in the relationships between organizational structures and public relations practitioner roles. Scholar Commons, University of South Florida, 1-65.

The roles that individuals have in organizations also determine the type of structure, and vice versa. In organizations where job roles are clearly defined, the organization may find an inorganic structure more useful. It is however no longer important for an organization to function in such isolation, in light of rapid changes as indicated elsewhere in the paper. In this respect, a more organic structure ill in the long run ensure employees are placed in organizations according to their strengths, and changes do not always new employees, since the existing ones will be well ready to deal with the changes.

Tran, Q., Tian, Y., 2013. Organizational Structure: Influencing Factors and Impact on a Firm. American Journal of Industrial and Business Management, 3(2), 8 pages.

As organizations look to innovate more so that they can create a sustainable competitive advantage, they need to create an enabling environment, in which information flow freely, and in which individuals are free to interact freely, regardless of rank. In connection with this, the organic structure is the best organizational setup.

Conclusion

An organic organizational structure is the most effective form of management in a rapidly changing environment. It will give an organization a greater ability to adapt to change, and to always be versatile in the market, hence the opinion that it is better suited to today’s business environment.

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