Organizational Structure and the Affect on Its Members Essay

Organizational Structure and the Affect on Its Memebers MGT501, Module 1, Case Organizational Structure and the Affect on Its Members In today’s business economy, it is extremely important for companies and businesses to have a management structure, or organizational design, that optimizes the company’s valuable resources. As companies compete in the free market system of Capitalism throughout the global economy, the need for a successful organizational structure becomes extremely important to gain advantage in the competitive market. Businesses and organizations require an organizational design which allows them to compete in the global economy with a high degree of effectiveness and efficiency. Trained and qualified employees are†¦show more content†¦Organizational structure includes, but is not limited to, power and reporting relationships such as those in organization charts, behaviors required of organization members by organizational rules, and patterns of decision making and communication among organization members. It encompasses both formal and informal aspects of relationships between members (Ambrose amp; Schminke, 2003). This section will discuss the aspects of the matrix, mechanistic, and organic organizational designs. Mechanistic Organizational Structure According to C.S. Spell and T.J. Arnold, the mechanistic organizational structure is rigid and tight indicative of traditional bureaucratic environments. In this type of structure, power is usually centralized and communication is channeled through rigid hierarchical chain of commands. Job descriptions and decision making styles in the mechanistic structure are very uniform and formal (Spell amp; Arnold, 2007). 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