Question

what determine the effectiveness of an organizational structure?

Answer 1

Organizational structure defines the direction of all the activities to achieve the desired organizational goals. The effectiveness of an organisation structure can be determined by various ways, few of them are discussed below-

· Size of the structure – By analysing the size of the structure we can determine if it is effective for that organisation or not. Like small organisations can perform better in flat organisational structures rather than tall structures. So if the type of structure suits with the size of organisation then it is determined as effective.

· Communication networks – By assessing the communication networks of organisation, one can determine the effectiveness of structure. If the staff of the organisation is easily able to communicate with each other without any delays or hindrances then the structure of organisation is effective.

· Usage of resources – The effectiveness of organisation structure can be determined by checking the usage of resources. If the resources are properly utilised, operations are running smoothly, costs are under control and there is no wastage that means the organisation structure is effective.

· Productivity – If the stakeholders of the company are satisfied then company’s organisational structure is considered as effective. Company’s productivity defines its effectiveness. If the employees are happily performing, customers are getting goods on times, costs are controlled then the productivity is higher and company is working with greater efficiency and effectiveness.