Organizational Structure and Employee Productivity

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Questions and Answers

What is the main purpose of an organizational structure (OS)?

To increase the salary of top-level management

To ensure suitable employees occupy each position (correct)

To create conflicts among employees

To reduce the number of employees in the company

What is the outcome of having a well-defined organizational structure?

Decreased employee productivity

Increased employee reporting confusion

Enhanced employee productivity (correct)

Reduced company profits

What is the first step in creating an organizational structure?

Establish a hierarchy of employees

Identify resources for each unit

Group similar activities together

Clearly define the company's objectives (correct)

What does the administrative division element of an OS do?

Groups jobs into departments to facilitate coordination Signup and view all the answers

What does deputation in an OS refer to?

The power conferred to each employee and department Signup and view all the answers

What is the characteristic of a centralized organizational structure?

All powers of decision-making rest at the topmost level Signup and view all the answers

What is the shape of a centralized organizational structure?

Pyramid Signup and view all the answers

What is one of the essential elements of an organizational structure?

Work design Signup and view all the answers

Which type of organizational structure is characterized by the absence of hierarchy?

Flat Signup and view all the answers

What is a common issue that can arise in a Flat organizational structure?

Chaos Signup and view all the answers

What is the primary purpose of a Flatarchy organizational structure?

To tackle changes in market sentiments Signup and view all the answers

Which type of organizational structure creates fixed departments based on certain functions?

Functional Signup and view all the answers

What is a characteristic of communication in a Hierarchical organizational structure?

Employees communicate only with their immediate superior and subordinates Signup and view all the answers

What is a benefit of using a Flatarchy organizational structure?

More creative and efficient development of new products Signup and view all the answers

What is a potential drawback of a Flat organizational structure?

Chaos and inefficiency Signup and view all the answers

What is the role of the HR department in a Functional organizational structure?

To look after recruitment, payroll, and administration Signup and view all the answers

What is one of the benefits of a well-defined organizational structure?

It reduces conflict within an organization Signup and view all the answers

What is one of the importance of culture to a company?

Improve brand identity Signup and view all the answers

What is the primary result of employees having specific roles and duties according to their skill set?

Empowerment of employees Signup and view all the answers

What is organizational culture?

The set of values, beliefs, attitudes, systems, and rules that outline and influence employee behaviour Signup and view all the answers

Why do companies prioritize culture?

To attract talent Signup and view all the answers

What is a characteristic of an organization with a unique culture?

It sets the business apart from other businesses Signup and view all the answers

What happens when workplace culture aligns with employees?

They feel supported and valued Signup and view all the answers

What is one of the components of organizational culture?

Commonly shared beliefs Signup and view all the answers

Why do employees consider a company's culture before applying?

Because of the company's culture Signup and view all the answers

What is one of the key indicators of employee satisfaction?

Company's culture Signup and view all the answers

What is the result of a well-defined organizational structure on employee roles and responsibilities?

Employees know their roles and responsibilities Signup and view all the answers

How can a company improve organizational culture?

By creating positive employee experiences Signup and view all the answers

What is the effect of a well-defined organizational structure on communication?

It promotes an effective flow of information and work Signup and view all the answers

What does organizational culture dictate?

The attire, work ethic, and overall structure of the business Signup and view all the answers

What happens to companies that prioritize culture during difficult times?

They can weather difficult times and come out stronger Signup and view all the answers

Why would almost half of employees leave their current job?

For a company with a better culture Signup and view all the answers

What is a key quality in a high-performing organization that allows team members to express themselves?

Trust Signup and view all the answers

What is a characteristic of a culture of appreciation?

Frequent recognition and thanks for contributions Signup and view all the answers

What is the result of having a culture that means business?

Greater profitability and productivity Signup and view all the answers

What is key to creating a resilient workplace?

Watching for and responding to change with ease Signup and view all the answers

What is an important aspect of teamwork in a high-performing organization?

Collaboration, communication, and respect between team members Signup and view all the answers

What is a characteristic of exceptional organizations?

Continuous alignment to their vision, purpose, and goals Signup and view all the answers

What is important to retain in an organization?

What makes the company unique Signup and view all the answers

What is a key quality in a high-performing organization that motivates employees to excel?

Performance Signup and view all the answers

Study Notes

Organizational Structure (OS)

An OS reveals the accountability and authority of each role, removing uncertainty with regard to task performance and reporting, and enhancing employee productivity.
A company must clearly define its objectives before creating an OS, then group similar activities together to create departments, identify resources for each unit, and establish a hierarchy of employees based on their duties.
An OS forms the basis of employee reporting and relations, decides the post of employees in their administrative divisions, formulates a system of coordination and interdependence in an organization, and establishes a well-defined workflow aimed at attaining organizational goals.

Essential Elements of OS

Work design: defines the nature and job description of a particular position
Administrative division: involves the grouping of jobs into departments to facilitate the coordination of work
Deputation: refers to the power conferred to each employee and department in the organization
Management ratio: refers to the number of employees that are reporting to a supervisor
Hierarchy: creates various levels of authority arranged in the order of delegated powers in the organization
Centralization or decentralization: presents the mode of operation followed in an organization

Types of Organizational Structure

Centralized Organizational Structure

All powers of decision-making rest at the topmost level of the management
A pyramid structure with the leader or executive team at the top responsible for making all decisions
Departmental managers oversee supervisors, and each employee communicates with their immediate superior and subordinates only

Flat Organizational Structure

Devoid of any hierarchy, with no one commanding or controlling the employees
Decisions are made at every level of management
Usually used in small companies with few employees or new startups

Flatarchy Organizational Structure

Includes features of both hierarchical and flat OS
A temporary form of OS that comes into existence only when a new product is created, a new service is being tested, or when a company seeks to develop a new customer support system
Employs specialized teams to handle the development of new products or services more creatively and efficiently

Functional Organizational Structure

Creates a fixed set of departments based on certain functions like HR, accounts, marketing, etc.
Segregates the workforce based on the requirements of each department
Enhances efficiency and productivity, empowers employees, reduces conflict within an organization, and promotes better communication among members

Importance of Organizational Culture

Organizational culture is the set of values, beliefs, attitudes, systems, and rules that outline and influence employee behavior within an organization
Affects all aspects of business, from punctuality and tone to contract terms and employee benefits
Companies that prioritize culture can weather difficult times and changes in the business environment and come out stronger
Key ways to improve organizational culture include connecting employee work to a purpose, creating positive employee experiences, being transparent and authentic, and encouraging frequent employee recognition

Qualities of a Great Organizational Culture

Alignment: when the company's objectives and its employees' motivations are all pulling in the same direction
Appreciation: frequent recognition and thanks for the contributions of others
Trust: vital to an organization, where team members can express themselves and rely on others to have their back when they try something new
Performance: creating a culture that means business, where talented employees motivate each other to excel
Resilience: a key quality in highly dynamic environments where change is continuous
Teamwork: encompasses collaboration, communication, and respect between team members

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Description

Learn how an organizational structure (OS) enhances employee productivity by defining accountability and authority, task performance, and reporting. Understand how to create an OS by setting objectives, grouping activities, identifying resources, and establishing a hierarchy.