What Is the Meaning of an Organizational Structure?

Defining an organization's structure is very imperative to defining the organization's hierarchical framework, reporting configuration and the manner in which work is expected to flow. Both the downward communication channels, i.e.- from the superior to subordinate and the upward communication channel from the subordinate to the superior are emphasized on. This Organization Structure, often referred to as OS, helps in achieving organization goals and objectives.

Significance

The main aim of the OS is to sketch out ways in which the organization must systematize, assemble, classify and allocate its possessions- men and materials. The management formulates strategies to apportion the scarce resource in the most optimum manner to achieve the organizational ends and objectives.

Features

By using an OS, the employee is able to motivate its employees to deliver to their fullest capabilities and capacities. The management is able to categorize its employees into performers and non-performers. Next it takes steps to further hone the talents of the performers. When the performers are appreciated, feel a sense of belonging with the organization and are inspired to perform even better.
The organization takes steps to dispel the weaknesses in the performances of the non-performers.

Benefits

There are several benefits of having a well defined OD in place. This structure establishes the prevalent hierarchies. Also, there is a clear cut definition of the authority and responsibility equations in the organization. Communication flows are augmented. Work flows smoothly without hindrances.

Considerations

The organization must after due deliberation come up with the Organizational Structure that suits it the best. The factors to be analyzed, amongst others are, the size of the organization, its product(s), the level of personalization needed in the product(s), the long-term goals of the organization and the type of employees it has.
This is very vital to the success of the organization.

Types

There are two basic forms of Organization Structures. The flat or horizontal structure is the first type. This is popularly in use in organizations of small size and scale. Here the employees are vested with decision making powers and authority. Hotels, Spas, Beauty Parlors and Schools use this structure.

The second type is the Tall or Vertical Structure. Large companies and corporations use this alignment. There are number of ranks of authority between the employee and the top management. The authority and decision making commands lie with the top management and a number of departments for all strategic functions exist.

References

• Purpose of Organizational Structure
• Organizational Structure Types and Design Strategy