Relationship between organisational structure and process

How to link process and organisation structure? |

relationship between organisational structure and process

Effective businesses work to align their structures with their strategic objectives. This process is achieved through organizational design, which aims to create a. This article examines how organizational structure is determined by a variety of factors including the type of organization, the industry it is in, and the vision of the . Relationships Between Organizational Structure and Employee Reactions: Comparing suggest that organizational size influences information process-.

A process exists to deliver a positive outcome to a customer or beneficiary.

relationship between organisational structure and process

Sometimes the beneficiary is the person who does the work, as when you make a cup of coffee for yourself. But most processes in organizations exist to do something of value for an external or internal customer, who is not the person doing the work. This principle, deliver value to the customer, lies behind one of the great developments in process work — Lean.

By analysing a process with a focus on what is needed to deliver value to the customer and eliminating everything that is not needed, a process becomes Lean. But Lean tells us little about how the work and people involved in delivering the process should be structured into an organization.

relationship between organisational structure and process

So let me try to make a connection. There is a principle in organization design, developed from business strategy work I am more of a strategy and organization expert than a process expertthat suggests it is easier to understand the customer and deliver exactly what the customer wants at a reasonable cost, if all of the people involved in delivering value to the customer are part of a team focused on that customer or customer segment.

This is the customer-focused organization: Another principle in organization design — the specialisation principle - suggests that capability is likely to be higher and costs lower if people doing similar work report to the same person. So marketing people should report to a head of marketing and sales people to a head of sales, etc. You can see that these two principles are in conflict.

The Relationship Between Organizational Design & Decision-Making Processes

The first suggests that it is best to structure by customer segments. The second suggests that it is best to structure by function. Fortunately there is a way of resolving this conflict. Go with the customer segment structure, but make exceptions for steps in the process where the performance improvement lower costs, for example, from economies of scale or higher quality from higher skills is significant. Thus, structural perspective was developed. Within this perspective, organizations have structures and processes which are the structural dimensions of centralization, formalization and necessary if the organization is to function.

  • How to link process and organisation structure?
  • The Organizational Process

The fundamental specialization are considered to be cardinal in understanding challenge of organizational structure is to coordinate action the functioning of social systems in organization Hamann, from an organization comprising of many different individuals The post industrialization administrative history in the world Centralization reflects the extent to which decisions are shared has been characterized by a series of shifts in emphasis within the organization Dalton Formalization involving three different objectives, representativeness, represents the degree to which activities and relationships are professional, politically neutral bureaucracies and strong governed by rules, procedures and contracts while IRACST — International Journal of Commerce, Business and Management IJCBMVol.

The last decade has seen a decline in service multidimensional constructs involving system effectiveness, delivery by the entity as a result of a host of reasons ITF Rail efficiency and adaptiveness Hage, Efficiency Union Report, It is of interest to how the reconstructed considers the relationship between organizational outputs and organisational structure relates to performance.

Relationship Between Organizational Structure, Design & Change

Effectiveness involves the degree of which organizational goals are achieved. Adaptiveness is the ability II. Basic propositions from the system structural perspective are Given that the National Railways of Zimbabwe is a public suggested by Hage and Aiken and supported by enterprise, it is fitting at this point examines the underlining contemporary researchers of the likes of Andrews, Boyce and issues within the public enterprise arena that has given the Walker The first being, centralization leads to greater character of public management in general.

The starting point effectiveness due to the ability of the decision maker to plan, is the focus on the objectives of the public enterprise in line coordinate and control activities.


The second being with Kafuman's notion that organisational objectives are the formalization leads to greater efficiency because such rules key determinants of management systems adopted by any serve to routinize repetitive activities and transactions and the organisation Kaufuman, third being that specialization leads to greater adaptiveness, in that specialist understand problems more clearly, adapt more The main objective of public enterprise hinges on the ready to changing conditions, and discover new ways of doing production of service to the constituency it has to serve.

Z and its performance and at the profits or losses the public enterprise might make but rather same time to draw empirical evidence that either supports or the efficiency and effectiveness of the service provided are defy these structural propositions put forward by this the key indicators of performance.

The organizational structure of this organization has the three basic structural dimensions, it is How then can a public entity be managed without the focus on centralized, formalized and has specialization. Blau attempts to answer the question by pointing out that a set of rules and regulations are set by the authority in charge of the enterprise.

This has led to a greater The N.

relationship between organisational structure and process

Z was established as a railway company under the extent the adoption of the bureaucratic management system as railways act of Its mandate is to provide freight and a principle of administrative technique and organisation in passanger services within and outside Zimbabwe. The public sector management.

Bureaucratic management is company plays a major role in transit rail traffic in Southern management bound to comply with detailed rules and Africa. As for its assets the company owns real estate such as regulations fixed by authority of superior body. The task of a offices and accommodation.

The capacity of the N. It has a network stretching for km with km of that being electrified and by July it III. Governments in the world have of late of Zimbabwe. The entity is fully owned and controlled by the introduced a wave of refoms to improve the performance of government of Zimbabwe. Like all public enterprises, the public enterprises Batley and Larbi, Many of these organization is governed by an act of parliament through policies have focused attention on the internal characteristics legislative instruments under the custodian of the Ministry of of the public organisation such as organisational structure.

In Transport in collaboration with the state enterprise committee. Osborne and Gaeblar have influenced the adoption of decentralised structures as key to public sector performance. Daft put forward three key components in the Decentralisation has been hypothesised to improve public definition of organisational structure. The first being formal sector performance by empowering managers to make service reporting relations including the number of levels in the delivery decisions Osborne and Gaeblar, These ideas hierarchy and the span of control of managers and have reflected in American public enterprises and more supervisors.

Secondly the structure identifies the grouping recently they have played a central role in the shaping of the together of individuals into departments and the grouping of agenda pursued by the labour government in United Kingdom departments into totally organisation. Thirdly, structure Walker and Boyne, The same cannot be said in Africa includes the design systems to ensure effective as most public enterprises are still characterised by communication, coordination and integration of effort across centralisation as governments seek to politicise the entities as departments.

Fink, Jenks and Willits hold the same view with Daft of what structure is. They expand the definition by Such change in structure has presented opportunities for public proposing two fundamental processes, differentiation and management scholars to understand the relationship between integration.

Differentiation according to Fink, Jenks and organisational characteristic and performance. Hage and Aiken described relationship between organizational structure and performance organizational structure as practices being undertaken in an and give empirical evidence that either supports or defy its organization with regard to policies, procedures and rules.

What is the relationship between organizational structures and to what extent are they random or systematic? As size has been answered differently by different classes of regulates other organizational structural variables organisational theorists.

Firstly by the classical theorist such as span of control and chain of command. To what extent does functional specialization particular superlative way for organizations to be structured. The classic theoriest ignored by and large the varying 3. To what extent does formalization regulate elements that underlined different organisations. To what extent is N. And how In contrast to the classic theorists, the contigency scholars does centralization affect its performance?

How do structural dimensions and variables such structure by suggesting three influential determinants Child, as span of control and chain of command affectSadler and Barry,Tata and Prasad, The first determinant is from environment, in which V. The second and third Organizational Structure Defined determinants single out the two physical organisational attributes, technology and size.

A whole host of literature in management circles has attempted to define organisational structure and its role in the There is a general agreement among scholars that the three organisation. Daft is among the scholars who have determinants highlight constraints upon structural design defined organisational structure.

In his definition he concludes because contextual factors are regarded as important that organisational structure is reflected in the organisational determinants of structural patterns. The need to secure a chart. Contemporary management scholars have attempted to The literature on span of control is limited, a fact that can be categorize organizational structural characteristics in terms of qualified to a demoralizing critique of the principles of their dimensions, that is height and width or vertical and management literature including span of control by Kenneth horizontal.

The width is referred to as the span of control and and John Various principles of management seem to the height as chain of command. It is of interest to discuss be ambiguous and provid contradictory advice to managers how the width and height of an organizational structure Kenneth and John, Empirical studies of span of control impacts on organizational performance and how it relates are essentially nonexistent in the contemporary environment other structural variables.

Blau and Urwick contribution to the matter still form the foundation of what argued that six was the optimal span.

Woodward found span of control is. It is conceptualised as the number of a median span for chief executives of 6.

The Organizational Process

Gulick subordinates reporting to the same superior Gulick, In suggested variables that are crucial determinants of spans of nature and charecteristics, it refers to how relations are control in his works.

This in essence handed the scholarly structured between leaders and subordinates in an community a clear plan of research for studying span of organization. A span of control is said to be wide when a control relationships in organizations.

What has been of interest to researchers is what our knowledge about this concept remains untidy. Gulick numerical value constitutes few and many subordinates to in Kenneth and John argued that spans of qualify span of control as narrow or wide.

The concept forms the foundation of two different thirdly the element of space. It is a key element in economic theories of organization that focus on hierarchical Complexity according to Hage refers to the number of design Alchian and Harold,Fama, and occupations or specialties in an organisation. Another aspect Williamson This is so because spans ofcontrol of complexity is time required to train the person in the ultimately determine the number of levels referred to in speciality.

Thus the greater the number of occupations and the organisational and management literature as chain of longer the training of the professionals the more complex an command and thus transaction costs as they relate to size of organisation is.

relationship between organisational structure and process

Structurally, every organisation must divide its jobs into jobs At the advent of the human relations approach in the s in order to achieve its objectives. Thus an integral part of the and s, span of control become a corner stone of the organisation is the manner in which work is divided into approach.

It is prominent in the works of McGregorspecific jobs or tasks. Pugh et al referred to a similar Tannenbaum and Worthy The concept finds its concept that was termed specialisation which was described as relevancy to the human relations approach to organizations the division of labour within an organisation. Complexity leaders and subordinates in organizations and influences may be descibed as the degree of knowledge required to management styles.

Span of control, thus, not only has produce the outcome of a system. The higher the education the insinuations for understanding organizational design but also higher the complexity" Price Centralisation refers to the distribution of power to make While span of control is very seldom in academic work since decisions about the allocation of resources.

Generally such the time Simon and Gulickit remains an decisions have public implication. It is true that every actor in interest to practical managers who must establish reporting an organisation has to make decisions. Not everyone can make relationships. Kenneth and John in their works alluded decisions that the organisation considers to be important.

Hage proposed the following measurement of years. Despite its importance, it is interesting to note that the centralisation, definition, nature and charecteristics of performance and how to measure it remain ambiguous. The lower the proportion of occupations or jobs Various ways of measuring performance have been suggested whose occupants participate and the fewer the decision areas by different scholars.

Pierre etal identified 66 papers in which they participate the more centralised is the that included organizational performance as a dependent or organisation" Hage Measures ranged from a set of operation considered the matter of power or authority in decision ratios and accounting ratios.

Overall out of measures making and the way authority is descributed in the identified, 92 different measures of performance were used organisation as centralisation. The usage was further complicated by variation in the use of a single, multiple and aggregated The degree to which jobs are codified and range of variation measures March and Sutton, in Pierre etal, Hage referred to formalisation virtual the same What March and Sutton and Pierre etal way as Hall.

He noted that rules and procedures can vary designated is that not with standing its accepted significance, highly stringent to extremely lax. Freedom of discretion is researchers still pay little theoretical attention to, or enhanced or limited by the extent to which behaviour is methodological rigor about, the choice, construction and use programmed. Pugh etal referred to rules and of the excess of performance measures available to them.

The last 20 years leaving the few options that he can exercise in carrying out his has seen the advent of broader and more comprehensive views job" Pugh etal All organisations distribute rewards such as salary or prestige. These rewards according to Hage result in It is clear from literature that not one measure can be adequate different status in the organisation. In some organisations to determine performance of any organisation.

Pierre etal, these rewards are very obvious and in others they are very attempted to unite the various measurements. The more easily reward symbols are attained; the more nature and charecterisics of performance is determined by the open is the system.

Relationship Between Organizational Structure, Design & Change

Conversely, the more difficulty there is in different stakeholders in organisations this gives performance earning the symbol, the more closed or stratified is the a multi-dimensiality face. Structural Variables as they Relate to Performance Hage and Aiken pointed out that stratification is inevitable in any organisation.

The difference among The two major concepts, organisational structure and organisations is that in some there are minimal desripancies organisational performance, set the frame works of this study.

In his theory Hage outlined eight variables Measuring Organizational Performance related to organisations. The means according to Hage are variable of interest for researchers concerned with just about the characteristics of the structure which Daft calls structural any area of management. Performance is essential in enabling researchers and centralisation, formalisation and stratification.

The ends Hage managers to appraise firms over a period of time and compare noted they are the propositions that denoute performance and them to rivals in the context of their environments. The technical services VI.