Question

How organizational structure affects employee motivation, communication and performance in an organization?

Answer 1

Organizational structure refers to the system that defines how activities like task allocation, coordination, roles, responsibilities, etc., are directed in order to achieve the goals of an organization. Being the anatomy of the organization it provides a basic foundation within which organizations function. Hence the structure of organizations plays a crucial role in determining the behavior of its employees as they act as the product of the organizational structure. Having a poor organizational structure affects employee’s behavior and performance negatively which on the other hand impacts the organizational performance adversely. Well defined organizational structure not only improves the performance but also prevents conflict among employees. The roles and responsibilities are well set in such a way that it eliminates duplication or overlapping of tasks. A well-structured organization creates a sense of belonging and high morale among employees based on which the employees develop their own initiative and a spirit of innovation and creativity. Clear-cut accountability, recognition of skill, and appreciation also contribute towards organizational growth. In terms of communication, a well-defined structure helps the employee to understand where a particular issue or a message needs to be communicated. For example, In a functional structure, an employee is expected to communicate to the immediate manager whatever the issue may be which will either be sorted out by the manager or forwarded to the respective department for further actions.