How does the structure of an organization impact employee behavior and workplace productivity?


How does the structure of an organization impact employee behavior and workplace productivity?

Organizational structure:

Organizational structure is a paramount determination leaders must make to ensure the organization is positioned for long term success. A key decision regarding the structure is to determine whether it should be decentralized, centralized, or somewhere in between.

Answer and Explanation:

The structure of an organization impacts employee behavior and productivity. Managers must develop an organizational structure that ensures employee development and increases workforce productivity.

If an organizational structure is decentralized, more managers are required to be spread over the organization. Employees in this structure are often encouraged to take more initiative since many departments will compete with each other on productivity. Innovative ideas for completing operations are acceptable and seen as a positive. Employee behavior in a decentralized structure is less focused on following the rules and more focused on innovative solutions for improving operations.

If the organizational structure is centralized, there will be few employees with management roles and the majority of employees will be discouraged from showing innovation. Employee productivity in this type of structure is positive, as long as there are quality templates and guidelines established for completing tasks. The behavior most encouraged in this structure is adhering to established procedures. Employee creativity is usually discouraged to ensure established procedures are followed.

Learn more about this topic:

Organizational Design and Organizational Behavior


Chapter 5 / Lesson 4

An organization is defined as a group working together toward a common goal or purpose, but in order to work efficiently an organization needs structure, clear roles and relationships. This lesson will dive into the ways that organizational design and behavior, work specialization, and centralization can affect employee performance and an organization's success.

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