Question

The organizational design of a company establishes the hierarchy, the workflow and corporate culture of the company. Looking into mechanistic & organic structures, both have positives and negatives, as to how the company's culture develops and its impact on employees behavior, satisfaction and productivity. 

Required: 

Discuss the implication of both organizational designs on employee satisfaction and behavior, linking your discussion to the characteristics of each design.

Answer 1

· Organization design impact on employee satisfaction: The trend of old tradition way of employer satisfaction has now completely changed now employees are the real asset to the companies and companies spend a lot of money to make employees feel happy and satisfied so in such case organization design is also very important to satisfy the employees because organization design clears the status of role, stage of responsibility, authority, decision making and all these things in which employee feels they have any right in the firm. Organization design must have hierarchy and chain of command in them and flow of communication should be very effective. All these things are very important when it comes to employee satisfaction from the aspect of organization design.

· Organization design impact on behaviour: Talking about organization design impact on behaviour then in such cases it becomes very important that there is proper flow of communication in the channel because flow of communication safeguards the interest of one individual. Along with this I feel the decision making power given to employees on the basis of their organization design is most important if employees are divided in group of batches and hierarchy is very deep and if there is lack of communication or less power is given to the bottom line employee then it will definitely affect the working behaviour and nature of the employee. Along with this employee engagement is also very important when talking about behaviour of employee in today’s time companies spend a lot for employee engagement so that these employees feel good. Moving towards there are few factors like recognition, awards, appraisal, acknowledgement all these factors play a huge role when talking about employee behaviour. If these factors are dealt nicely by the company then in such cases employees work with full efficiency.