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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.
thank you Mr Raafat for the question and the answer
The three P's: People Product Place
Three factors can be:
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:
2. Internal factors - organizational characteristics, including:
3. Individual choice factors - members joint or individual decisions regarding expected costs and benefits.
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.
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.
Businesses in which innovation is a key determinant of sustained competitiveness will likely function more successfully with a flat organizational structure.
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.
Thanks for all. But the proper answer:1- Business type2- Org size3- Org complexity
Factor Determining Organizational Structure:
1- Organization Business Process
2- Organization Geographical Standing
3- Organization Products and Function
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