Question

• What constitutes structure in an organisation and what is its role?

Answer 1

The organizational structure creates a framework through which activities can be managed to accomplish organization’s goals and objectives. Organizational structure constitutes of followings-

1. Work specialization- it is also known as division of work into small, simple, and in separate operations in which each employee could specialize.

2. Departmentalization- the process of grouping jobs together so that common tasks or jobs can easily be coordinated.

3. Chain of command- it is the unbroken line of authority that extends from top to bottom in the organization and clarifies who reports to whom.

4. Span of control- the number of subordinates reporting directly to a particular manager.

5. Delegation of authority- it is an act of assigning formal authority and responsibility for completion of specific activities to subordinates.

6. Formalization- it described as the degree to which jobs or works within the organization are standardized.

7. Coordination- it refers as a process of integrating the different objectives and activities of different departments and people.

Organization structure may be defined as a system of job positions, the roles assigned to employees and the authority relationships among the various positions. It provides a basis for a framework for employers and employees for performing their various functions.

Roles of organization structure-

1. Facilitating management action- it needed when a large number of people work together, some sort of formal structuring is required to place them accurately or according to the needs of the organization.

2. Encouraging efficiency of its members or employees

3. Communication- it provides the pathways for communication among organizational members as well as between the organization and its environment.

4. Optimum use of organizational resources- it tries to make optimum use of resources by ensuring their allocation to points where there are needed.

5. Job satisfaction- it provides for each employee a place of status which confers a certain standing among his fellows.