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Importance of Organizational Structure

The scenarios of the organizations have been transformed since past few years. The development of the organization is highly dependent on the organizational structure (Ashkenas et al. 2015). An organization consists of various departments which participate in the organizational operation and stimulate the growth of the organization. The managerial department of the organization operates the organizational function. There are various factors that influence the growth of the organization. The organizational management coordinates the function of the various departments and identifies the requirement of the consumers and the target market of the organization (Fan, Wong and Zhang 2013). They inform the departments about the requirement of the potential consumers and motivate them to work as a team to fulfill the market demand, so the organization can achieve the long-term goal. The organizational structure needs to be flexible enough, so that it can be modified with the time. Otherwise the organization may face various obstacles in coming future. The structure of an organization signifies how the organization carries out any business venture or how the organization meets the expectation level of the consumers. The structure of the organization depends on the organizational objective. Various organizations is made up of various organizational structure. The organizational structure is highly responsible to influence the employees to get involved in the organizational function. The organizational structure allows the allocation of the various responsibilities among the employees. Organizational structure plays two vital roles in the growth of the organization. It shows the right direction to the organizational employees. On the other hand it decides which individual will be involved in the organizational decision making process. Organizational structure put a significant impact on the growth of the organization, as the wrong organizational structure may hamper the reputation of the organization. Organizational environment is one of the major factors that help the organization to earn desired position in the industry. Organizational environment motivates the employees and maintain the relation with the organizational authority and the organizational employees (Subramanian, Venkateswaran and Fu 2013).

The below mentioned article is concentrated on the key element that defines the structure of any organization in an appropriate manner. It has articulated for factors that are used to define the organizational environment. It has enlightened various aspects of the modern organizational structure to provide a vivid concept about a proper organizational structure. It has discussed about the organizational structure of the Qantas.

Organizational structure can be defined on the basis of six key elements such as- Geography, Number of Employees, Product Evolution, Distribution of Authority, Control, and Market Place (Doroshenko t al. 2015).

Geography

The structure of the organization can be defined by illustrating the geographic area the organization has covered. It is difficult for the organizational management to more stretch out the organization. This will lead the organization to depend on other people to control the organizational operations. It is hard for the large organizations to communicate with each of the employees. This may increase miscommunication among the employees and between the organizational employee and the organizational authority. Organizational management needs to maintain a transparent and well-structured communication with the executives whom they need to report. The large organizations need to maintain a strong communication structure to maintain the organizational function. Otherwise, it may face massive crisis (Alomuna and Chima 2016).

Employees are the key element of the organization (Guadalupe, Li and Wulf 2013). The growth of the organization is highly dependent on the performance of the employees. The organizational structure must be flexible enough to accommodate more employees, as more the organization will flourish, the organizational goal will be stretched and organizational function will require more employees who can contribute their performance to achieve the organizational goal. The organizational structure must be capable of retaining the large number of employees. Organizational structure must be designed according to the requirement of the employees. It must match the satisfaction level of the employees. Otherwise, the organizational growth may be restricted (Wagner et al. 2014).

A business organization must start with a small product line. It will help the organization to put a significant impact on the industry by providing quality product supply to the potential consumers. As the organization grows, the organizational management must accommodate individual department for the each product. The organizational management must establish the organizational structure by considering the fact. The more the company will grow; it will offer variety of products to its consumers. Then the organization will need to provide individual department to individual product. These specified departments for the individual products may put a significant impact on the growth of the organization and the production procedure of the organization (Lin 2014).

The organizational structure of any business organization can be affected by the distribution authority of the organization. There are two types of the distribution authority, such as- centralized and decentralized. In centralized organizational structure, the decision of the organization depends on a particular executive group. On the other hand, in decentralized organizational structure, the managers also takes part in the decision making process of the organization. It plays major role in establishing organizational structure. The centralized organizational structure differs from the decentralized organizational structure. The decision making process of the organization is different from each other (Alexiev, Volberda and Van den Bosch 2016).

Number of Employees

According to many reports, any business organizations that want to produce quality products must have stricter rules than other companies. The organizational management needs to pay close attention to the quality of the product. The production process of those organizations must be monitored strictly to avoid any kind of discrepancy. The primary objective of those organizations is to provide high quality products to the consumers. The organizational managements of those organizations aim at using high quality process and quality raw materials in the organizational operation. On the other hand, any business organizations those are engaged in mass production procedure do not pay much attention on the quality of the production or raw materials. They motivate their employees to generate more goods and services within a short span of time, so they can fulfill the market demand.   The organizational structure is based on the control of the organizational management on the production process (Liu and Wang 2016).

Marketplace plays a major in building organizational structure. The manufacturing process of the organization decides the sell process of the organization, whether the goods will be sold to the retailers or direct to the consumers. Hence, the organizational structure needs to be set according to the sell procedure of the goods or service of the organization. This will decide whether the organization must have a separate marketing team or a sales team (Fleischmann et al. 2014).

There are several theories that have discussed about the organization and the organizational structure. However, the contingency or the situational theory has provided a clear idea about the organizational structure and the organizational environment. This theory claims that the organizational structure the organizational environment is interrelated. It plays crucial role in the organizational development. The founder of the Contingency theory Burn, and Stalker has stated that in the stable industry, the organizations is controlled by the centralized authority, on the other hand in unstable industry, the business organizations do not follow much formal rules and regulations. The theory has described that the organizational structure is mainly based on the situation (Lockrey 2015).

The organizational strategy plays vital role in the organizational environment. The strategy influences the organizational performance and the employee’s performance. It maintains the relation between the organizational authority and the organizational employees. Strategy plays a crucial role in motivating the employees to work as a team to earn the organizational goal. Strategies are mainly based on the organizational objective. It shows the right direction to the organizational employees to achieve the organizational goal. Thus, it can be stated that organizational strategy put a significant impact on the organizational environment. Many business organizational authorities often meet their subordinates to interact with them about the organizational mission or vision. Thus, it builds a strong bonding between the organizational management and the organizational employees (Fletcher and Arnold 2016).

Product Evolution

Organizational governance plays a major in maintaining healthy and peaceful environment within the organization. It shapes the behavior of the employees. It is the responsibility of the organizational management to monitor the activity of the employees. The organizational management must control the behavior of the employees to maintain the environment of the organization. Organizational governance ensures that the organizational authority and staff members are in good terms and all the employees are aware of their roles and responsibility towards the organization (Fang and Chen 2016). Thus, it maintains the organizational harmony. Corporate governance must be flexible enough so that it can be modified with time. Otherwise it may restrict the growth of the organization. The organizational management maintains the governance to provide quality and uninterrupted service to the consumers. Well-structured organizational governance ensures that all the employees are working to achieve the common goal. Thus, it maintains strong bonding among the employees. Various business organizations incorporate various systems within the organization to interact with the employees or appreciate employees, such as- reward system, performance appraisal system. It motivates employees to give their best performance to for the betterment of the organization. At the same time, it plays a significant role to please the employees (Kazmi and Naaranoja 2015).

Organizational policies ensures peaceful environment in the organization. The organizational management establish according to the organizational objective and to ensure the growth of the organization. At the same time, the organizational management set their organizational policy to match the satisfaction level of the employees. It is important for every business organization to establish organizational policies according to the preference of their employees. Employee friendly policies build a strong relation between the employees and the organizational authority. Thus, it maintains the peaceful environment within an organization. Many leading business organizations include various policies that provide efficient provisions to the employees, such as- leaves, incentives and so on, which is beneficial for the growth of the organization. The organizational managements will be able to maintain a strong relation with the employees and retain employees for a long-period of time by establishing efficient policy. Hence it can be stated that the policies play the key role in maintaining a healthy and peaceful environment within the organization (Lammers and Jackson 2014).

Size of the organization is one of the major factors that put significant impact on the organizational environment. It is often evident that in large organization it is difficult for the organizational authority to maintain communication with each of the employees (Siddiqui 2015). It is important for the organizational management to maintain healthy relation with the employees to maintain a peaceful environment within the organization. However, in case of large organizations, the organizational management will not be able to address individual employees. The organizational management needs to depend on the communication tools to interact with the employees. On the other hand, the organizational managements of the small enterprises can easily communicate with their employees about the organizational goal and strategy. They can easily inform them about the organizational strategy and change management process. It is difficult for the large business organization to involve their internal stakeholders in the decision making process of the organization (Jurkiewicz 2015). This may increase miscommunication among the organizational management and the staff members. This may lead the organizational authority to face various difficulties in future, such as- labor strike, lock out, financial crisis and so on.  Thus, it can be stated, that the size of the organization plays vital role to maintain healthy and friendly atmosphere within the organization. It is important for the organizational leaders to maintain regular conversation with the staff members to demonstrate about the organizational strategy, policy and the organizational vision, but is case large organization it is not possible for the organizational authority to meet with the individual employees often and describe them about the organizational strategy. This may increase the miscommunication between the organizational authority and the organizational employees (East, LaMendola and Alter 2014).

Distribution of Authority

Qantas is one of the renowned airline companies of Australia. It has founded in 1921. It is one of the oldest and most profit making Aviation Company of Australia. The organization covers a huge geographic area. It I associated with numerous airports. It is mainly based on the Sydney. It covers 80% market share of aviation industry of Australia. Being one of the oldest aviation companies of Australia, it shares good rapport with the Australian Government. The organizational management of Qantas believes in providing quality and flawless service to the consumers (Qantas.com, 2017). Being one of the most desired aviation companies of Australia, the organizational management of Australia must consider some important factors while constructing the organizational structure to provide quality service to the potential consumers.

Qantas is associated with various airports of the Australia and global market. Thus, to ensure the growth of the organization, the organizational management of Qantas must maintain healthy and interactive relation with all its branches and the stakeholders and the associates. This organizational management must monitor the activity of all the employees to control the organizational function. Otherwise, it may lead the organization to face many crises in future. The organizational management must incorporate efficient strategies in the organizational rulebook, so they can maintain effective communication with the employees. The organizational management of Qantas must avoid any kind of miscommunication with the associates and the employees. It will help them to ensure a bright future of the organization (Butt et al. 2015).

Being a large aviation company, Qantas possesses a huge workforce. It includes huge number of pilots, engineers and other staffs (Arayesh et al. 2017). The organizational management of Qantas must monitor the activity of all the employees. The organizational management must observe the fact that it is important to maintain regular communication with the employees to ensure the growth of the organization. The organizational authority can use modern communication tool to communicate with the employees, such as- blog, intranet, group discussion. The organizational management must encourage the employees to adopt communications tools to provide their efficient opinion over any issue related to organizational strategy and policy. It will establish a strong relation between the organizational authority and the organizational staff members. It will provide a sense of importance among the employees and they will feel as an important part of the organizational structure. Thus, it will motivate their employees to provide their best performance to achieve the organizational goal. The organizational management must provide some provision to their employees, such as- leaves, incentives and sufficient monetary support. This will earn the faith of the employees. This will be beneficial for the Qantas to retain their employees (Jalal 2017).

Control

Qantas is known for its efficient service. The organizational management must maintain effective relation with the different departments to ensure the organizational growth (Benn, Dunphy and Griffiths 2014). The organizational management must monitor the performance of the various departments and often communicate with the various departments to monitor their performance growth. It will be helpful for the Qantas to provide efficient service to the consumers. It is important to maintain effective relation with the various departments to avoid any kind of difficulties. The organizational management must consider the fact while designing their organizational structure. They must construct their organizational structure accordingly. The executives conduct meeting with the department heads t discuss about the organizational objective and the explain them the change management prices and the need of the change (Hogan and Coote 2014).

The organizational structure must be designed in decentralized manner. The decision of the organization must be based on the executive team but they must involve the managers in the decision making process (Rhoades 2014). The organizational management must provide their efficient opinion about the organizational structure for the betterment of the organization. It will generate efficient and effective decision which will be beneficial for the growth of the organization. Involvement of the organizational management on the organizational decision making process may generate many creative ideas that can stimulate the growth of the organization. Decision making procedure plays a crucial role in the growth of the organization (Manojlovich and Ketefian 2016). The future of any business organization is highly dependent on the decision making process of the organization. The organizational management of Qantas must consider the fact while designing their organizational structure. It will be helpful for the organization to take efficient steps that will ensure a  right future of the organization (Schneider, Ehrhart and Macey 2013).

Conclusion:

As per the previous discussion, it can be concluded that the success of the organization is highly dependent on the organizational structure. There are various theories that have discussed about the organizational structure and environment, but contingency theory has put a significant impact among all of them. There are six factors that defines the organizational structure, such as- number of employees, geographic area covered by the organization, authority of the organization, the product evolution, control and so on. By illustrating these key factors, it has become easy to understand the organizational structure. By establishing a strong environmental structure the organizational management will be able to earn desired position and reputation in the society. It will be beneficial for the organizational management to avoid many future obstacles. On the other hand, the organizational environment also plays vital role in the organizational growth. It is important for the organizational management to maintain healthy and peaceful environment in the organization so the employees can perform in an appropriate manners. The organizational management must maintain regular communication with the employees and the stakeholders and encourage their employees to work together to achieve the organizational goal. It will be helpful for the organization to put a strong footprint in the industry.

Market Place

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