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Why Organizational Structures Differ

A study on different organizational structures and their impact on business efficiency.

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    Why Organizational Structures Differ

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    Introduction • The idea of organization and structure in various organizations refer to the systematic way in which a company’s operations are set up. Organizational structure forms a foundation upon which a firm operates and grows, formally drawing the boundaries of managerial authority, the decision - making structure as well as the grouping of employees and staff. Organizational structures can look very different between different organizations businesses, where for instance the small organizations have small business structures generally incorporating fewer layers of management and few employees in the organizational chart. Majorly, the difference in organizational structure between different organizations can be better explained by focusing on five areas that include strategy, organizational size, technology, and environment.

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    Strategy • Choosing the best organizational structure that fits your company, division, or team is more less like picking out a new car. • While picking an organizational structure, at the most basic level, you are looking for something like a road - worthy -- something that can lead you from point A to point B minus a hitch ( Gosselin , 1997). But beyond that, Many options exist from which to consider. You have to consider whether it is automatic or manual, A four - wheel drive or two, flux capacitor, Built - in GPS, and Leather interior, etc. • These roadway that helps you get from one point to another is considered as strategy. Different organizations have different strategies , meaning that even their structures will differ.

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