Organizational structure is defined as the way a business divides up its tasks. The way these objectives are grouped and organized can greatly effect the running of a company. Therefore finding an organizational structure that is appropriate for a specific company is detrimental to that company’s success.

For example a tall pyramid organizational structure involves a more centralized decision making process with a distinct chain on command. This would work well with organizations  such as banks or militaries. In contrast a flat pyramid organizational structure involves a decentralized decision making process that would be more suited towards businesses that need more creativity among employees. I feel as though neither structure is better than the other because it simply depends on what kind of business is being run under them.

Another way to divide an organizational structure is by work specialization. I feel like this has a key connection to the discussion in class over money not always being the best factor to motivate better performance. With work specialization each employee specializes in one task. Over time with repetition they grow better at this task which enhances the quality of the product. The only problem is that this becomes tedious and tiring which increases job dissatisfaction. Sometimes pay is not enough within this kind of organizational structure.

An example is with the Ford company around the time when Henry Ford created the assembly line. Workers grew tired of repeatedly completing the same task with limited breaks and little pay. It was efficient for the company in the amount of cars produced but not for the works whom soon began to quit. Ford simply raised the amount of pay and doubled wages in order to entice more workers to join his business. Although this approach did work at gaining employees, it did very little to help with job satisfaction and many workers were still  unhappy doing their jobs.

This just shows that money doesn’t always create better performance and it isn’t the only factor to a successful business with happy employees. The structure of the organization can play a large factor into the inner working of the company.

Source: https://www.youtube.com/watch?v=QtYRLtT8bvY&feature=related