The Importance Of Organizational Structure

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Organizational structure refers to the division of labor as well as the patterns of coordination, communication, work flows and formal power that direct organizational activities. (McShane & Glinow, 2013, p.430). An organizational structure reflects the organization’s culture and power relationships. According to McShane et al. (2013) p. 430 stated that organizational structures are frequently used as tools for change because they establish a new communication patterns and align employee behavior with the corporate vision. Organizations structure is formed by a group of people that they have a common purpose to achieve goals together. When a work group is very small, and face-to-face communication is frequent, formal structure may be unnecessary,…show more content…
It is because different size of organization will have different size of organizational structure. For example, the larger companies will apply a tall structure or so called narrow span of control as their organizational structure. On the other hand, the smaller companies will apply a flat structure or so called wide span of control as their organizational structure. Besides that, a taller structure organizational may have many hierarchical levels. Also, the larger organization that depends on hierarchy for coordination necessarily develops taller structures. (McShane & Glinow, 2013, p.434) For example, HP can consider as a high-involvement organization. This is because HP has eight levels of corporate hierarchy that use to coordinate its tens of thousands of employees. In another point of view, the flatter structures only have few hierarchical levels. By this, we can know that flatter structures offer several benefits to the organization but cutting too much management can offset the…show more content…
The reason why Unilever is so success is because the unique heritage shapes that the Unilever uses to do business. Unilever will show how clearly that the business understands the 21st century’s consumers and their lives. In 1872, Jurgens and Van den Bergh open their first factories to produce margarine or so called butter in Netherlands. Continue in the 1890s, the founder of Unilever Bros, William Hesketh Lever, he jotted down his idea for Sunlight soap. His revolutionary new products that helped popularize cleanliness and hygiene in Victorian England. (“About Unilever”) When stepped in 20th Century, Lever brothers started to focus on the securing stable of new raw materials. At the same time, the margarine and soap are so popular and started to export further into other markets and
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