Organizational Structure
Organizations are complex entities, encompassing in them various
elements, both external and internal in nature. To incorporate
these various elements in a organization so that it functions at
a optimum level requires a organizational structure, which takes
in to account the functioning of these internal and external
elements together.
Historically most organizations have taken a Top-Down Approach
to management, the structure of these organizations also depict
a top down management approach, where autonomy and decision
making power rests in the hands of top management. Organizations
such as G.M., Xerox, and many of the other fortune 500 companies
that we have come to know were and are managed using this
approach. In a top down management approach, management at the
top of the organization (president, VP president, senior level
management) make most of the decisions , leaving lower level
employees with little or no autonomy.
The other approach to management is the bottom up approach. In
this approach, management creates a environment where lower
level managers have autonomy to make decisions. The lower level
employees don't have total autonomy but are trusted by
management to make certain decisions which empower them and give
them a sense of belonging.
A flat organization structure as the name suggests is flat,
meaning there is little or no hierarchy in the system. This
system works well in theory but is hard to implement to its
fullest in the practical sense. A flat organization considers
every one at the same level, promotes team work and pushes every
one to actively take part in the decision making process. Of
course, there will be some hierarchy even in a flat
organization, as people will struggle for power, and control
over the group and individuals will form opinions about their
team mates. Some members will be leaders other followers.
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