Knowledge Based Theory of the Firm

The job design and the motivation are not self-sufficient to increase the productivity and they require an organizational structure to further coordinate organizational activities. Organizational structure, through its chain of command, coordinates, motivates and monitors employees.   Buchanan and Huczynski (2010) argue that the structure of the organizations serves 3 functions:

All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.

Every type of company or organization that exists operates with a certain organizational structure. However, the organizational structure is tailored to best meet the needs and services of the company. Organizational structures are used as a means of communicating how business will take place within an organization. The structure of an organization is important to the main areas that make an organization function effectively. Organization functions and designs determine the organizational structure. Memphis City Schools has a horizontal organizational structure. Although a horizontal structure exists as the overall structure at the executive level, a vertical structure is also in place at the management/staff level.

The traditional organization structures described by Taylor, Ford, Weber and other theorists are based on a systematic and rational approach. The organisation and its

The structure of an organization can vary depending on the company. This is responsible for maintaining and outlining specific duties or task within the organization. Depending on the company they can choose between a centralized or decentralized structure. Centralized organizational structures focus management authority and decision-making in a single executive team, with information flowing from top managers to various business units (Centralized Vs. Decentralized Organizational Design, David Ingram, 2017). Decentralized organizational structures, on the other hand, look more like multiple smaller representations of a single structure, featuring management redundancies and more close-knit chains of command (Centralized Vs. Decentralized Organizational Design, David Ingram, 2017). Within these, there are more specified structures with different advantages and

Organisations must organise a structure so that their objectives can be achieved. A company will have different departments and procedures with each one having a special function. All of these organised departments and procedures are linked so the company can run efficiently. For many organisation this can be very complex has they will have offices in international countries around the world.

How an organization is structured has enormous consequences not only for the success of its business but, also, for the success of its employees.

Organizational structure Organizational

Organizational structure is the most crucial element for the success of any business. This is because of the way it facilitates and supports the management system of the organization. It is through the structure that specialization and differentiation are attained. For effective management of the employees, different firms employ different structures for the organization that is unique to its operation and the organization culture.

There are many different types of structures any organisation can operate with depending on what their purpose is but, for this study, the following types of organisational structures will be discussed: the flat structure, the tall

The organization structure defines the role and position of each employee clearly. An organization structure that is not responsive to the needs of the organization will disrupt cooperation and affect the completion and targets of customer orders due to time lapses and misuse of limited resources (Foti, & Hauenstein, 2007).

Organizational structure is a system used to define a hierarchy within an organization which improves operational efficiency by providing clarity to employees at all levels of a company. A systematically outlined structure can also provide direction for internal promotions, allowing companies to create employee advancement routes for entry-level workers. In other words, it identifies each job, its function and where it reports to within the organization. Harley-Davidson’s organizational structure, for example, assists centralized control of the business through the company’s arrangement of its components in terms of their interactions and functions. As one of the world’s oldest motorcycle manufacturers in the world, Harley-Davidson Inc. maintains this organizational structure and centers its current focus on a limited number of markets. While the business continues to grow by international expansion, Harley-Davidson’s corporate structure focuses mainly on the fact that most of the company’s revenues are generated in the United States. Thus, Harley-Davidson has a functional organizational structure that is based on the company’s current focus on the motorcycle markets in developed countries, especially the United States, in addition to ensuring centralized control of business activities. The basic characteristics of Harley-Davidson’s organizational structure include Function based groups, Centralization, and Global hierarchy.

Effective organizational structures define how job tasks are subdivided, grouped, coordinated, and managed. Six key components of organizational structures include division of labor, departmentalization, chain of command, span of control, centralization, and formalization (Remme, Jones, Van der Heijden, & De Bono, 2008, p. 79). Each element influence how employees interact with each other to reach organizational goals. Different structures are common in similar organizations among high performing organizations (Reimann, 1974, p. 707). The most appropriate structure will depend on the unique needs and culture of the organization.

Every organization was established to meet needs or goals, for example, to provide goods or services. Organizational structures may form in many ways; these were influenced by factors such as the purpose, size of the company or the complexity of the tasks it performs, and the external environment and culture. Moreover, the products, services or the location of the organization will also determine which structure was the best. The structure chosen will govern the way in which the organization operates and could occur either positive or negative effects. Below are some types of organizational structure that usually see.

(Organizational Structure, 2017)This form of organization structure has many positive attributes such as being more stable and less inclined to change and also it groups, peoples with similar knowledge and skills are grouped together There are also negative factors in functional structure organization such as the structure makes it harder to respond to the market quickly. While using this form of structured communication sometimes can become strained and the level of cooperation can be compromised. Another form of organizational structure is a customer service organization structure in which the customer service provides directions for the employees and the business. The overall customer service helps to support the whole business model. It just depends on the type of business and the size on how successful the customer service organization structure going to be. There are positive factors such to this form of organizational structure such as different employment levels, which leads to better pay grades and performance incentives. The organization also offers better employment opportunities to its employees. There are more organizational structures that center around employees such as a matrix structure in which employee’s relationships are set up in a grid and it is not required to report to hierarchy. There are also many