Is There One Best Way to Structure an Organization? Essay

Organization is everto a greater extent an efficient way of life to achieve the goals since ancient time, high productivity with ut close input which is an important characteristic of it. Well-organized is a common ambition for both administrator. Therefore it is a primary task for have it offrs to find out a most suitable twist for the company which can maximize the shaping murder. Currently, many researchers be seeking for the relationships between an governmental bodily organize and performance in order to adopt a best grammatical construction. However, base on contingency theory, a large number of researches proves that the optimal organizational building depends on the dodge and among opposite factors (Pertusa-Ortega et al, 2010). The purpose of this essay is to explain that organizational structures be variable, which can be influenced by the scale, dodge and the operation technology of the line.Firstly, the size of a line of merchandise is an important fact or which could determine how an organization is structured in that location are many dissimilar ways to manage a company according to the disparate capacity, number of personnel, and output of the business. anchor on the studies from the Aston and National, both of them support this argument by finding there is a fond relationship between the size of the company and its structure variables (Cited in John Child, 1973). Thus, different structures are needed to administrate companies with different size. According to John Child (1973), specialization, documentation, standardized behavior, hierarchy, and a decentralization of conclusion making, are the core characteristics of the large companies, which could support the companies to make a ending accurately and efficiently as the power of decision-making are dispersive, the employers in heavy(a) companies such as Telstra, Woolworth, could non supervise every employees simultaneously and could not make every decision for the comp any either.Therefore, tall structure is authorized widely in large businesses as everyone could be supervised. However, small business like local cafeteria and franchisee of McDonald, are more likely to use a flat structure to achieve come up-organized, the employers could make every decision for the business as the centralization of making decisions and could supervise every workers as well due to a small number of employees. However, the correlation between two companies with disparate size are not linear, when the business has grown and achieved a certain size, the influence from size to structure is gradually reduced as large businesses are already mechanistic enough. Thus, size has a observable influence on the organizational structure managers should determine an optimal theoretical account which most fit the company to sum up the efficiency and effectiveness of the outcomes.Furthermore, outline of the company is an essential factor for choosing an appropriate way to st ructure an organization. strategic management which relates the future performance of a company, mangers should imply an appropriate strategy to gain the competitive advantages, to help themselves to compete against other competitors and to increase their food market share. Different companies need different strategies to survive themselves to be profitable businesses. Chandler and other researchers state that the alteration of a strategy will leads to a deviate in organizational structure so that the development of strategy could be sufficient and a better profitability reached (Cited in Pertusa-Ortega et al, 2010).For example, for a manufacture, its strategy is to cleanse productivity with lower resource, therefore the structure of mechanistic is most suitable, which is high specialization, low cost and more efficiency, products can be produced with marginal time when this structure is implie. In contract, Pertusa-Ortega and other researchers claim that an organic structure is an optimal choice for firms which confront the dynamic context, thus, it needs to constantly dislodge the productions and this flexible structure could make it easier to improve the products (2010), such as Google.The cube-shaped Contingency Model which consists of three strategies local responsiveness, global integration and orthogonal product diversification and across other nine structures, 27 strategy-structure fits are turned out. This model is a comprehensive tool to provide utilitarian information to managers to imply the best fitting structure base on their strategic choice (Qiu & Donaldson, 2010). Approximately 85% of these strategy-structure fits are supported by a German Multinational Corporations study, which could prove that strategy is an element to struggle structure to change to improve the performance.Additionally, scotch environment has a strong relationship to the variables of organizational structure. The research to measure the relation between the perc eive environmental uncertainty and the various organizational structures by Gordon and Narayanan (1984), they claims that the fluctuation of the economic environment has a dramatically correlation between how an organization be structured. When there is a high uncertain of environment, managers should imply a structure which could minimize the threatens of the uncertainty, and also should be flexible and adoptive enough to stop the products to change as required by the market, organic structure which is a most fitting framework for business to face the unstable environment as it could rapidly respond to the market uncertainty, it could reduce or increase the quantity of the products in a short time.On the other hand, when facing a lower environment uncertainty, mechanistic form is more guide to be effective and efficient, because the requirements of changing the products are less, this structure could help to improve the productivity. Stinchcombe suggests that environmental condit ions are not only determine the particular goods or service that company should produced, moreover, it also determine the features of organization should be created to draw the market requirements (cited in Miles et al, 1974). Organizational structure should change in congruity with the various environments, so that the companies can produce the quantity and quality of the goods or services that the market required.In conclusion, this essay explains that organizational structure is contingent upon(p) and it is very sensitive that could be affected by size, environment, and strategy. Forms of organization should be altered to improve performance and meet the requirements of external. Managers should choose an appreciate way to administrate the company by considering these elements. However, it is a challenge for decision makers to anatomy an organization managers should make sure that the new structure is sustainable and the employees are well-connected with each other.Child, J. (1973). Administrative Science Quarterly. Predicting and understanding of organization structure. Vol.18(2) 168-185.Pertusa-Ortega, E.M., Molian-Azorin, J.F,Claver-Cortes,E.(2010). agonistic strategy, structure and firm performance. A comparison of the resourcebased get word and the contingency approach. Management Decision. Vol.48(7-8)1282-1303.Qiu,J. & Donaldson, L. (2010). The Cubic Contingency Model Towards a more comprehensive international strategy-structure model. Journal of General Management, 36(1) 81-100.Miles, R.E., Sown, C.C. and Pfeffer, F. (1974), Organizational Environment Concepts and issues. industrial relations, Vol.13(3)244-264.Gordon, L.A. and Narayanan, V.K. (1984), management accounting systems, perceived environmental uncertainty and organizational structure an empirical investigation, Accounting, Organizational and Society. Vol.9, No.1, pp33-47.