Do Hierarchical Structures Work Better for Organizations and Employees?

Topic: Do hierarchical structures work better for organizations and employees?

Rationale

In an increasingly changing corporate landscape, which is constantly in flux owing to factors which are economic, political, cultural and climatic in nature, businesses are often contemplating how to keep up with the fast rate of change. They look into various factors as to how to keep improving on their technological breakthroughs, operational efficiency, distribution effectiveness and marketing penetration to suit the changing landscape. An area which often comes under scrutiny, mostly while looking into improving information and/or process flow to improve decision making is Organization Structure.

An organizational structure is the system that an organization uses to determine its distribution of communication, policies, authority and responsibilities. The structure of an organization regulates the extent to which and nature of how leadership is assigned throughout the organization, the process of information flow and the relationships between employees across various roles

The organization structure ranges between hierarchical and flat structures. Usually, departmentalization ,centralization, number of required levels, and formalization have a say in deciding the structure of organization. The stage in which a company in which also has an impact - whether it is in its start-up or maturity phase.

In this project, we try to dissect the various types of organization structures broadly practiced in the corporate world. We will look into existing research and try to determine the effects that an organization structure can have on its productivity, employee morale and profitability and how these factors vary across different constructions. Finally, we shall try, on the basis of research and discussions, to conclude as to which organization structure can be said to have the best effect on the above mentioned parameters and in what conditions.

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