Impact of Organizational Structure on Employee Behavior and Performance

Effects of Organizational Structure on Employees

There is a close relationship between organizational structure and human behaviors. Its effects can be manifested through various measurable performance indicators. An organizational structure that employees find easily adaptable provides an opportunity for business organizations to grow. Among the most common effects of organizational structure on human behavior are internal communications, effectiveness, and efficiency. Also, employee morale is closely related to organizational structure (Types of Organizational Structures, 2013).

A strong organizational structure determines the morale of employees. They exhibit loyalty and motivation in their work when they engage in challenging tasks, are treated respectfully, and are given a chance to advance their career. Organizational structure can also lead to adverse effects among the employees. For example, if organizations continually raise the salaries of senior employees while ignoring those of the junior ones, this leads to loss of morale among the junior employees. The organizational structure, therefore, plays a vital role in determining employee morale since it determines the management of advancement, incentive programs, and discipline.

Another relationship between organizational structure and human behavior touches on internal communication. The organizational structure affects how departments and employees communicate. For instance, rigid structures do not give employees enough freedom to get the information they want or personnel required to execute specific duties. On the other hand, an organizational structure that is too flexible can give rise to an ineffective chain of command. This is because employees would find it challenging to identify the right people who are supposed to address their concerns. A functional organizational structure should balance the importance of flexibility with the need for elaborate lines of command.

Types of Organizational Structures

There are different organizational structures that organizations can adapt depending on the size and nature of the business. Specific organizational structures can elicit predictable attitudes and motivations among employees. For example, some organizations use traditional structures that focus on the functional departments and divisions of an organization. Examples of conventional organizational structures include line structure, functional structure, and line and staff structure. Traditional organizational structure elicits predictable attitudes and motivations among employees because of the following reasons (Madura, 2007).

The first reason is that it does not have many lines of command since employees are answerable to only the top managers of an organization. There is an open communication channel where employees experience one-on-one contact with senior executives. When employees are allowed to interact with top executives, this creates predictable attitudes and increases their motivation level.

The second reason is that the traditional organizational structure allows employees to make decisions. As a result, they have a feeling that they are recognized and that the organization values them. Employees who get a chance to make decisions feel trusted, and this increases their motivation and prompts them to do better for the benefit of the organizations they work for.

The other type of organizational structure that can elicit predictable attitudes and motivation among employees is a functional organizational structure. To begin with, the structure values skill development among employees through the provision of a favorable working atmosphere. Employees who perform similar tasks are grouped, allowing those with lesser skills to learn from those with experience. As a result, this organizational structure motivates employees by ensuring that they develop relevant skills. The other way through which functional organizational structure creates predictable attitudes and motivation among employees is through quick decision making. When employees have issues that need to be addressed by the management, decisions are made without delays, and this motivates them to put more effort into their work (Burns & Stalker, 2010).

Google Inc applies a traditional organizational structure that encourages employees to work directly with their managers. The company has an open communication structure that does not require employees to follow long formal channels. This, to a great extent, enhances the organizational structure of the company. The structure aims at making the employees feel that they are valued, and their contribution to the company is essential. Contrary to what most companies do, Google Inc does not set goals for its employees but allows them to work towards goals they have determined to be achievable. Leaders and man