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Hierarchical Structure: The Structure Of Organisational Structures

explanatory Essay
1322 words
1322 words
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Organisational Structure According to Mintzberg, organisational structure is the sum total of the ways in which it divides its labour into distinct tasks and then achieves coordination among them (Mintzberg 1979). The differences in organisational cultures are often reflected in the way they are structured and managed. Organisational structure is a product of many elements, some of which are the type of business, products, customers, size and location. Organisational structures can be broadly divided into two categories.  A hierarchical organization is an organizational structure where every person in the organization, except one, is a subordinate to another person and is answerable to him.  A flat organization (or horizontal organization or delayering) is an organization that has an organizational structure with few or no levels of middle management between staff and executives. Good examples of hierarchical organisations are conglomerates in Japan (Toyota), South Korea (Samsung) and U.S.A (Apple computers) which are often owned by founders and their families. They tend to be authoritarian and often exhibit a culture with high power distance, and have bureaucratic control and centralised decision making with little worker empowerment. On the other hand, firms in the west are owned by public shareholders and are operated by a professional CEO. It is common thought that companies that are known for the best products or companies that have a good market image would be good places to work like Apple Computer, Toyota, Facebook, etc. However, this is not always the case; none of these companies were ever features in the Fortune’s List of “100 Best companies to work for”. It proves that the bottom line and top of the line produc... ... middle of paper ... ... important reasons for a giant firm like Apple to adopt such policy (Finkle & Mallin 2010). Stock reward ensures that its best performing employees become more committed to the organisation and reduces their chances of them leaving the firm (Yian Ming 2011). Another reason being the motivation to perform better since every contribution affects the company’s share price and therefore affects his own stock asset value. These two elements drive employee engagement and help the company’s executives to provide an effective employee management environment (Yian Ming 2011). The employees should be stimulated and motivated by training, health and other social benefits that will enhance their interest and commitment to the firm. Dedicated and satisfied employees perform better and contribute extensively towards their firm’s success and reputation (Jaksic & Jaksic 2013).

In this essay, the author

  • Explains that mintzberg's organisational structure is the sum total of the ways in which it divides its labour into distinct tasks and then achieves coordination among them.
  • Explains that a hierarchical organization is an organizational structure where everyone in the organization, except one, is subordinate to another person and is answerable to him.
  • Explains that a flat organization is an organization with few or no levels of middle management between staff and executives.
  • Explains that employee motivation is a key area in the organisational culture that affects the commitment of the employee toward the organization and his satisfaction towards the work.
  • Explains that employee satisfaction determines and influences their commitment towards the organisation and their performance. google encourages employees to think and work as entrepreneurs fostering innovation at the very core of its work.
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