The factors that influence organizational structure

Past project files Historical information These organizational process assets influence the project success, and they keep growing as the organization becomes larger. You decide to start identifying risks by using a check list. Are you going to create this checklist from scratch or will you look in any similar past project records to find it out? Of course, you will go for the second option and find a risk checklist from previous records and customize it as per your project requirements.

The factors that influence organizational structure

The Multinational Corporation Factors Affecting Organizational Design Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: Organizational size The larger an organization becomes, the more complicated its structure.

In reality, if the organization is very small, it may not even have a formal structure. Rules and guidelines are not prevalent and may exist only to provide the parameters within which organizational members can make decisions. Small organizations are very often organic systems.

Factors Affecting Organizational Design

As an organization grows, however, it becomes increasingly difficult to manage without more formal work assignments and some delegation of authority. Therefore, large organizations develop formal structures. Tasks are highly specialized, and detailed rules and guidelines dictate work procedures.

Interorganizational communication flows primarily from superior to subordinate, and hierarchical relationships serve as the foundation for authority, responsibility, and control. The type of structure that develops will be one that provides the organization with the ability to operate effectively.

That's one reason larger organizations are often mechanistic—mechanistic systems are usually designed to maximize specialization and improve efficiency. Organization life cycle Organizations, like humans, tend to progress through stages known as a life cycle.

Like humans, most organizations go through the following four stages: Each stage has characteristics that have implications for the structure of the firm. In the birth state, a firm is just beginning.

Organizational size

An organization in the birth stage does not yet have a formal structure. In a young organization, there is not much delegation of authority. In this phase, the organization is trying to grow. The emphasis in this stage is on becoming larger.

The company shifts its attention from the wishes of the founder to the wishes of the customer.

The factors that influence organizational structure

The organization becomes more organic in structure during this phase. It is during this phase that the formal structure is designed, and some delegation of authority occurs. This phase occurs when the organization has achieved a high level of success. An organization in midlife is larger, with a more complex and increasingly formal structure.

More levels appear in the chain of command, and the founder may have difficulty remaining in control. As the organization becomes older, it may also become more mechanistic in structure.

Once a firm has reached the maturity phase, it tends to become less innovative, less interested in expanding, and more interested in maintaining itself in a stable, secure environment. The emphasis is on improving efficiency and profitability. However, in an attempt to improve efficiency and profitability, the firm often tends to become less innovative.

Stale products result in sales declines and reduced profitability. Organizations in this stage are slowly dying. However, maturity is not an inevitable stage. Firms experiencing the decline of maturity may institute the changes necessary to revitalize.The Impact of Organizational Structure and Leadership Styles on Innovation 57 | Page.

Amazon´s Organizational Structure - Organizational culture is a reflective view of the inner workings of an organization.

This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, . In this blog post, I’m going to discuss the enterprise environmental factor (EEF), organizational process assets (OPA), and the difference between these two.

Facebook Inc. has an organizational structure that enables the social media business to expand and diversify. This corporate structure also yields competitive advantage to make the company’s online social network resilient against competition. Many people resist acknowledging the influence of organizational factors on individual behavior—especially on misconduct—for fear of diluting people’s sense .

factors on organizational structure is traditionally divided into two main factors. These factors which determine the structure, aims and activities of the organization, can be grouped into external factors and internal factors [11].

External factors are those factors from the enabling en- vironment which are not under the control of the organi- zation but which affect its structure and development.

Organizational Structure - strategy, levels, examples, advantages, manager, model, type, company