Elements of Organization Structure

Organization structure has the following elements:

1.    Objectives and Plans:

Organization structure is designed to meet plans and objectives of the organization. It gives formal shape to organizational activities that help to achieve its objectives.

2.    Specialization of activities:

All organizational activities are broken into sub-units and grouped on the basis of similarity of characteristics. This results in formation of different departments.

3.    Standardization:

Standardization means uniformity and consistency. To enable the members of different departments to work in a co-ordinate manner, management lays down the Policies. Procedures and programmers which help in carrying out the decision-making processes.

4.    Co-ordination :

With specialization of activities, workers develop a tendency to deviate from organizational goals and promote their individual goals. There is, thus, need to integrate the tasks of different units to make them work towards a common goal in a co-ordinate manner.

5.    Centralization and decentralization :

Organization structure where decision-making power vests with top managers is a centralized structure and a structure where decisions are made by middle and lower level managers is a decentralized structure.

6.    Environment :

No organization structure can be the nest structure.It is subject to change depending  upon changes in the environments factors-economic, social, technological, political etc.Organization structure is, thus, situational in nature.

7.    Staffing :

Organization structure is designed to achieve goals which are accomplished by human beings. The jobs and departments are, therefore, staffed with people and authority-responsibility relationships are established.

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