Factors Affecting Organizational Design - 1374 Words

Factors Affecting Organizational Design Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: size, life cycle, strategy, environment, and technology. Organizational size The larger an organization becomes, the more complicated its structure. When an organization is small — such as a single retail store, a two-person consulting firm, or a restaurant — its structure can be simple. In reality, if the organization is very small, it may not even have a formal structure. Instead of following an organizational chart or specified job functions, individuals simply perform tasks based on their likes, dislikes, ability, and/or need. Rules and guidelines are†¦show more content†¦Therefore, the older the organization and the larger the organization, the greater its need for more structure, more specialization of tasks, and more rules. As a result, the older and larger the organization becomes, the greater the likelihood that it will move from an organic structure to a mechanistic structure. Strategy How an organization is going to position itself in the market in terms of its product is considered its strategy. A company may decide to be always the first on the market with the newest and best product (differentiation strategy), or it may decide that it will produce a product already on the market more efficiently and more cost effectively (cost-leadership strategy). Each of these strategies requires a structure that helps the organization reach its objectives. In other words, the structure must fit the strategy. Companies that want to be the first on the market with the newest and best product probably are organic, because organic structures permit organizations to respond quickly to changes. Companies that elect to produce the same products more efficiently and effectively will probably be mechanistic. Environment The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological, and natural environment conditions. Environments are often described asShow MoreRelatedFactors Affecting Organizational Design1359 Words   |  6 PagesFactors Affecting Organizational Design Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: size, life cycle, strategy, environment, and technology. Organizational size The larger an organization becomes, the more complicated its structure. When an organization is small — such as a single retail store, a two-person consulting firm, or a restaurant — its structure can be simple. In reality, if the organizationRead MoreFactors Affecting Job Design1594 Words   |  7 PagesFACTORS AFFECTING JOB DESIGN Job design is affected by organizational, environmental and behavioral factors. A properly designed job will make it more productive and satisfying .If a job fails on this count, it must be redesigned based on the feedback. The various factors affecting job design are the following Organizational factors Organizational factors include characteristics of task, work flow, ergonomics and work practices. Characteristics of Task: Job design requires the assemblyRead MoreWhy Job Design Is An Effective Mechanism For Providing Employees Voice1713 Words   |  7 PagesCritically evaluate whether job design is an effective mechanism to provide employees voice. 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