How is the choice of an organization’s structure related to the environment in which it operates?

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Expert Solution

Every business in the world uses a different working conditional to meet their organizational goals. Organizational structure is the foundation of such working conditions. Owners of the business must look at various internal and external factors before choosing an organizational structure after aligning company’s goals with opportunities and safeguarding them against potential threats.

PEST, the acronym which stands for political, economic, social and technological factors. An unstable economic and political environment may force the company to adopt flexible structure so that it can adapt to the ever-changing external environment which affects the company directly. In the same way, a technological breakthrough needs the company to transform its operation, reshuffle workforce placement within the organization or add a new level to the hierarchy to adapt to that change.

The span of control is another factor which needs to be considered which means the number of subordinated which a superior can manage effectively. It depends on the quality of recruits available, their previous experience, the kind of training they require and then the company comes to a conclusion on how the organizational structure will look like.

keosha answered 3 months ago

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