Advantages And Disadvantages Of Organizational Structure

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Organizations are established to meet a need, for example to provide goods or services. Organizational structures can take many forms. These are influenced by factors such as its purpose, size, and complexity of the tasks it performs, external environment and its culture. It’s products and services or where its located also determine which structure is best. The structure chosen will govern the way in which the organization functions and can have positive/negative effects.

Organizations can be structured in different ways:

• by function, for example, operations, marketing, finance, fundraising, etc

• by region

• by product, for example, books, support, consultancy, delivery

• in work teams, for example, client/customer groups.

At the top of the structure is a single person, who has a small number of people reporting directly to them. Each of these people has several people reporting into them and the number of people at each level increases as you move down the structure.

Advantages of hierarchical structures:

• A hierarchical structure uses clear reporting lines. It is easy to see what each team is called, how many people there are in each team and how they relate to other people in the system.

Disadvantages of hierarchical structures:

• People can feel stuck in a ‘silo’ and miss opportunities for co-operation, both for themselves and the organisation.

Flat structures

Taking out levels of hierarchy creates a flatter organisation structure.

There are fewer levels in the flat structure organisation. In this example structure, there is one person at the top with everyone else reporting into them on an equal level.

Advantages of flat structures:

• people feel more involved and can take on more responsibility

• greater communication

• better team spirit

• less bureaucracy and easier decision making

• lower

Even groups of young children start to establish a network or informal hierarchy. In the beginnings of a new organisation there may be no formal structure but often this changes over time.

Tall structure

If you are considering a structural change, you need to recognise that any formal change in the way an organisation operates will work only if consistent changes happen at the informal level of interpersonal relationships and social expectations.

Different cultures :-

There are four types of organizational culture: Clan, Adhocracy, Market, and Hierarchy.

• Clan oriented cultures are family-like, with a focus on mentoring, nurturing, and “doing things together.”

• Adhocracy oriented cultures are dynamic and entrepreneurial, with a focus on risk-taking, innovation, and “doing things first.”

• Market oriented cultures are results oriented, with a focus on competition, achievement, and “getting the job done.”

• Hierarchy oriented cultures are structured and controlled, with a focus on efficiency, stability and “doing things right.”

There’s no correct organizational culture for an arts organization. All cultures promote some forms of behavior, and inhibit others. Some are well suited to rapid and repeated change, others to slow incremental development of the