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What are the main three factors that determine the organizational structure?

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Question added by Raafat Sallam , Organizational Development and Training Consultant , Training Centers, Marketing Organizations.
Date Posted: 2015/01/08
zafar abbas minhas
by zafar abbas minhas , Freelance Writer , DAILY MASHRAQ

INDUSTRY  ====       SIZE OF THE HUMAN RESOURCE DEPARTMENT      =======    NATURE OF THE PRODUCT LINE ======================== GOOD DAY RAAFAT

Deleted user
by Deleted user

The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. An structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. An organizational chart illustrates the organizational structure. 

hatem labib
by hatem labib , Quality control manager , MISER consultant

thank you Mr Raafat for the question and the answer 

Hasan Zeidan
by Hasan Zeidan , Head of Administration & Procurement , Gifco S.A.L (Ghorayeb International Freight Forwarding Company)

The three P's: People Product Place

Muhammad Adeel
by Muhammad Adeel , Sales And Marketing Executive , TANZEEM HEAVY EQUIPMENT RENTAL LLC

Three factors can be:

  1. Corporation Strategy & Policies
  2. Environment & Work Force
  3. Size of Business & Structural Designs

 

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

1. External factors - those from the enabling environment which are not under the control of the organization but which affect its structure and development. They include:

  • Economic factors
  • Socio-economic factors
  • Political-administrative factors

2. Internal factors - organizational characteristics, including:

  • Purpose of the organization
  • Organizational instruments

3. Individual choice factors - members joint or individual decisions regarding expected costs and benefits.

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

- Customer interaction: 

The degree to which your front line employees must interact with customers is a large determinant when choosing the decision-making hierarchy of your company. This will affect the choice of  flat or tall structure with centralized or decentralized decision making.

 

- Data sensitivity: 

Businesses such as financial consulting firms, which utilize a large amount of personal financial data in performing services, may be better suited for an organizational structure in which front-line employees act nearly autonomously when dealing with clients that are assigned only to them. 

- Value of innovation: 

Businesses in which innovation is a key determinant of sustained competitiveness will likely function more successfully with a flat organizational structure.

- Marketing consideration: 

If your business serves distinct markets segmented by geography, demographics or other clearly distinguishable factors, a divisional structure can allow your company to be more responsive to the unique needs of your target consumer groups.

 

Raafat Sallam
by Raafat Sallam , Organizational Development and Training Consultant , Training Centers, Marketing Organizations.

Thanks for all. But the proper answer:1- Business type2- Org size3- Org complexity

Muhammad Latif Khirani
by Muhammad Latif Khirani , Financial Consultant , Bifringence (International Consulting Firm)

Factor Determining Organizational Structure:

1- Organization Business Process

2- Organization Geographical Standing

3- Organization Products and Function

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