Best Way to Structure an Organisation

MGMT1001 - Managing Organisations and People
“Is there one best way to structure an organisation?” Your essay should explain and justify your answer.

The ideal organisational structure has been a widely embodied concept in various theories and models, since the early studies of Taylor, Fayol and Weber. It is through the implementation of such structures that organisations are able to operate at their peak performance. However, due to the external, contingent factors unique to each organisation, there exists the need to differentiate the structural framework between organisations. Internal formations such as centralisation and standardization similarly exist as structural alternatives, allowing organisations to adapt to contextual factors. Adhering to these connections, the dependence of structure on organisational strategies similarly challenges the existence of an idealistic, ‘universal’ structure.   As a reflection of the numerous structural models developed, the implementation of a single overarching structure for all organisations would result in declining performance levels, proving the need for different and flexible structures for each organisation, according to their context.

At the heart of organisational structure rests the central principle of contingency, reflecting the concept that there is no universal structure or strategy which can be considered optimal for all organisations (Chung et al. 2012), since an organisational structure based on the external and environmental factors which define their respective context will enhance the effectiveness of the structural design and improve organisational performance (Pertusa-Ortega et al. 2010). These contingent factors, including environmental uncertainty and the degree of dynamism in the surrounding environment, reflect the need for malleable organisational structures, as a dynamic structure in a rapidly changing environment alters the organisation’s capabilities and allows them to achieve a...