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Essay: Organizational Structure Involves Decision About Six Key Elements

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  • Published: 1 February 2018*
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                                    Challenges and opportunitiesAn organization structure outlines how job tasks are formally distributed, grouped, and coordinated. While planning the organizational structure manager need to report six key elements.

 Organizational Structure Involves Decision About Six Key Elements

‘ Work specialization

‘ Departmentalization

‘ Chain of command

‘ Span of control

‘ Centralization and decentralization

‘ Formalization


Work specialization defines the amount of task are divided into separate parts in an organization. The main aim of the organizational design is distributing the several tasks into various parts and every task is completed by different individual effectively.

Organisational Structure of Apple

Power and politic in Apple

Power and politics create conflict between the organization and its people. Further, these disputes lead to a reduced the organizational performance. Going forward it lands up with a low reputation of the business, less customer satisfaction, and lesser profit. It is the best idea to remove the politics from all the departments as soon as possible to increase the productivity of the organization and to enhance the profit. A leader or manager can resolve the issue through patient listening and do the needful. A good Organization strategy should be followed to manage the workforce and give them a good working condition in the organization free from power and politics. Organizational politics and conflict create unnecessary mental stress on the mind of the workforce which causes an adverse effect on the productivity. A leader should have all the qualities to direct and manage a team. It is the leader who educates the team about the goal and objective of the organization. A leader should possess the traits of communication, coaching, directing and relationship building. leadership skill also needs good interpersonal relationship. the person in charge of managing a team must have a man of prudence. He should possess good judgment, a sense of humor and utmost honesty.

In 2007 Steve Jobs became a famous name in the business. In 2009 the Steves jobs was names ‘CEO of the Decade’ by a magazine. (NASDAQ: AAPL),

Now most of us wonder how he did it? He used all six basic power like: reward, information, coercive, expert, referent and legitimate this helped him achieve his goals in very short duration.


After work are divided up through work specialization, they must be collected so that common tasks can be coordinated. The basis on which jobs are grouped together is called the departmentalization.                    

There are five common form of departmentalization.

‘ Functional Departmentalization

‘ Product Departmentalization

‘ Geographical Departmentalization

‘ Process Departmentalization

‘ Customer Departmentalization


It has been noticed that the organization get more productivity by team-work than from individual contributors. So the mobile company created small team and group to work together on a given project. The employee who works individually make more effort to reach the target. A team of three members can achieve the same by putting less effort. But the main thing is that while working by making team the output is the combined team performance.

But in teamwork, it is difficult to identify the individual performance and as a result, the group performance is shared equally among all the team members. This cause a conflict among the group members as there is no distinction between the skilled and unskilled person. Apart from that the main drawback of this teamwork is that some the skilled member deliberately minimizes their contributions as they feel that the hard efforts are going waste in the group. Thus the strategy is good towards achieving the productivity and common organizational goal but still, it affects the organizational performance adversely.


The chain of command is the constant line of authority that extends from upper organizational levels to the lowest level and explains who reports to whom. We cannot discuss the chain of command without discussing authority and unity of command.

Authority refers to the rights essential in a managerial position to give orders and expect them to be followed.

The principle of unity of command helps preserve the concepts of an unbroken line of authority .it says a person should have one and only one superiors to whom he or she is directly responsible.


Span of control is important to a large degree because it defines the number of levels and managers are in an organization .it also helps in determining the numbers of employee's managed by a manager efficiently and effectively.


Centralization refers to the degree to which decision making is concentrated at a single point in the organization. level managers are not capable or experienced in decision making as upper level managers.

Decentralization means power or authority to take decision is not in limited hands. employees can help the organization in solving the problems by giving their ideas, more people provide input into decisions. Decentralized departments make it easier to address customer concern as well.


Formalization refers to the unit to which jobs within the organization are standardized. In organizations that are highly formalized, there are explicit job descriptions, lots of organizational rules, and clearly defined procedures covering work processes.

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