Wednesday 20 February 2013

Classification of Organizational Structures: Despite the wide diversity of


Classification of Organizational Structures: Despite the wide diversity of

organizational structures, we can classify them according to the following criteria:
 The extent of complexity
 The level of formalization
 The degree of centralization.
The greater the number of individual job functions/titles in an organization, the more
complex the structure. The more sections, departments, or divisions in the organization,
the more complex a company becomes because there are more levels between the least
powerful and senior management.
Complexity: Organizational structures may be tall or flat, depending on the number of
levels of management.
Tall structures are typical of large public sector corporations; they are also still found in
some large companies. Tall structures are put in place when the management wants to
centralize all decision-making and retain control over the whole of the organization.
Flat structures exist in those organizations which have very few levels of management,
so that there may be only one or two levels in the hierarchy.
The number of levels, that is, whether the organization is tall or flat, directly affects
communication within an organization. The effectiveness of communication will depend
on how well managed the organization is, and on the extent of horizontal links.
Formalization: The more an organization determines the job specifications of its
employees, the more formalized it is. Low formalization in a job means that the employee

has a high degree of independence and discretion in the job. In other words, it means a
high degree of control over work. Conversely, high formalization means little control or
independence, therefore little power.
Centralization: The communication effectiveness of an organization will also depend on
the extent of the centralization of decision-making in the company. Organizations with
tall structures tend to be highly centralized: all major decisions there require the approval
of top management. This means that middle management is unable to make important
decisions and must therefore use memos, short reports, and submissions to request a
decision.
Thus, there is an undeniable link between the organizational and communication structure
of any concern. This is not the place for a detailed analysis of the link between an
organization‟s structure and its overall efficiency; however, structure does have a major
effect on the communication that takes place. Traditional organizations, operating in a
more or less stable environment, tend to be more structured and make greater use of
organizational charts, protocol, policies, and job descriptions. Modern organizations,
operating in a very dynamic environment, may have no organizational charts, job
descriptions, or standing plans; they are highly flexible. The structured organization is
called mechanistic, and the flexible structure, organic.

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