Organisation Structure

An organization is bands of people, working towards objectives, which develops and retain fairly stable and predictable Behavior patterns, even though the individuals in the organization may change. Ideally we describe organizations in terms of how they vary on three dimensions complexity, formalization and centralization. These three factors differ across organizations, and it is these ‘important differences’, which play a part to the patterns of Behavior observed in organization. Complexity points to the breadth of different activities, functions jobs and total number of levels, which are present in organizations. There are additional co-ordination and control problems in more complex organization, as there are more task activities to execute and there are other ways to design relationships. Complexity is higher in larger organizations.

Formalization points to the existence of policies, procedures and rules, which constrain the options of members. In a lightly formalized organization, member’s judgment and freedom of action are constrained by the boundaries set by these organizational devices. In less formalized organizations, there is more liberty of action and choice. The term centralization refers to the distribution of power and authority. Power and authority are upheld by those in higher organization positions in centralized organization. In decentralized organizations, decision, rights and responsibility are assigned to those at lower organization levels. The partnership of complexity, formalization and centralization is highlighted in two factors: the organization structure and the organization culture.

It points to the relationship among the tasks performed by the member of the organization which are

• Division of labour: To accomplish organizational goals it is essential to identify the work which is necessary to achieve the required objective. The work recognized has to be divided and sub-divided so that, the sub-divided components can be handed over to the person for which he has special components for performing the task. By doing this, the organization brings in the values of specialization and motivation, the elements of efficiency by removing wastages involved in duplicating and overlapping of efforts and in the end the principle of control, by holding the individual accountable for shortcomings on his part.
• Identifying the sources of authority: Every individual has to act as a cog in the wheels of organization. The endeavour of each individual has to turn towards the common objective of the organization. Apart from the authority responsibility structure of a formal organization, the power or authority happen from instinct to consent of the governed, greater physical strength, intelligence or some other influence.
• Relationship: In every organization structure, types of relationships present a united whole for achieving the common goal of the organization. Such relationships may be administrative or operating vertical, horizontal or diagonal, formal or informal. In this procedure, some may be working at par with another; others may either be above them or below them. Persons functioning at the same level are expected to possess the same quantum of authority, persons above them are expected to wield greater authority, where as persons operating below them are expected to enjoy lower authority. It is this hierarchical relationship, which attach persons operating at different levels, to carry on their efforts to achieve general goals of the organization.
• Co-ordination: Without co-ordination, an organization’s goal cannot be accomplished. It is the direction function, which has to be executed by the executive assigned with this essential function. He has to co-ordinate the efforts put in by individuals and groups in such a manner that, organizations goal is accomplished with maximum efficiency by removing wastages, but simultaneously, ego satisfaction of each individual as far as possible. Organization structure induces Behavioral stability. The most clear differences in Behavior patterns are evident between organizations that are not in same or similar fields.