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How Great an Impact on an Organisations effectiveness does its Structure have?

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Introduction

How Great an Impact on an Organisations effectiveness does its Structure have? An organisational structure is very important to any business no matter the size and without a solid structure the staffing function becomes randomly inefficient and ineffective. A good organisational structure will help a management team in any business to achieve high performance through increases in efficiency and effectiveness. Basic research on organisational structures that are relevant to this essay are those of Lawrence and Lorsch (1967), Drazin and Van de Ven (1985) and Mintzberg (1989). Research on the organisation structures in six enterprises conducted by Lawrence and Lorsch (1967) summarised the features of the organisation structure to be the span of control, number of levels to a shared superior, time span of review of departmental performance, specificity of review of departmental performance and importance of formal rules. Drazin and Van de Ven (1985) defined the organisational structure in terms of specification, standardisation, discretion and personnel expertise. They agreed with Lawrence and Lorsh on the feature of specialisation. ...read more.

Middle

These factors made it very difficult to establish a convincing structural model, which will be a sign of all diversities and uncertainties. Even though existing structural and contingency theories on organisations indicate that there is no ideal firm structure suitable for all organisations, the question is which structure is appropriate for different size organizations? Large organisations will need a wide span of control to manage with the number of activities and a small number of levels to deal with the complexities therefore large organisations look as if they need organic structures. Whereas the mechanistic structure would be more appropriate for smaller organisations. Successful structures sustain success of an organisations vision, mission and goals. A successful structure assists employees in "getting the job done", helping them achieving goals set. Depending on the structure or type of structure will have an effect on the level of teamwork within an organisation. Well-formed organisational structures will deal better with external factors effecting the organisation such as governments etc. Changes in the external environment will be dealt with and adjusted in a much more efficient way if a good structure is in place. ...read more.

Conclusion

There is and never will be a perfect structure for any organisation. All structures have their own strengths and weaknesses. When there is a problem of any kind within an organisation, it can be solved by changing the structure, however by doing this creates other problems in other areas of the organisation and therefore firms are constantly changing there structures in the search for their "perfect structure" and in the long run becoming less efficient and effective. This essay shows that the structure of an organisation tends to be more organic the bigger the project of an organisation but not in terms of duration of the project. It also shows that for an organisation to be more effective it needs to react to change in its external environment by changing the structure in order to adjust to this change but as shown its not always the answer as it will cause new problems in different areas. Therefore the structure of an organisation has a huge impact on its effectiveness but depending on the type of structure used by the organisation and how this structure is managed depends on the effect it will have overall on its efficiency and effectiveness. ...read more.

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