How organisational structure impacts on people in organisation

The structure of an organization sets the hierarchy for responsibility and creates the various levels of communication within an organization. The manner in which a organizational structure is set up and administered can have a direct effect on company productivity. When you are monitoring employee output, consider how the various issues with organizational structure can affect efficiency.

How organisational structure impacts on people in organisation

Share on Facebook Organizational structure defines the supervisory relationships, departmental structure and workflow within a company. Performance management involves the systematic improvement of individual and team performance through goal-setting and regular performance reviews.

Performance management systems and policies can be greatly influenced by a company's organizational structure, and organizational performance goals can help to shape a company's structure, as well.

Understanding the interplay between these two concepts can help you to design the most effective performance management systems for your organizational structure. Structure and Performance Organizational structure focuses on the layout of departments and job roles in a company in the context of reporting relationships.

A company's structure can be drawn as a top-down flowchart, with each connected node representing a different position in the company that reports to the position above it and possibly supervises the positions directly below it.

Since performance management revolves around the relationships between supervisors and their subordinates, organizational structure can provide guidance on which positions should include responsibility for monitoring and reviewing the performance of people in other positions.

Reporting Relationships and Performance Reviews Organizational structure delineates who reports to and receives instructions from whom. This in turn affects the ways in which performance reviews are handled. If your organizational structure features a tall hierarchy, for example, individuals are likely to work closely with a departmental supervisor who helps them to set performance goals and performs an annual review of progress toward those goals at least once per year.

If you have a flatter hierarchy, on the other hand, performance goals are more likely to be set by employees themselves, while degree feedback is more likely to be used to monitor individuals' progress.

Design performance review policies around the structure of reporting relationships in your company to make individual performance feedback more relevant to organizational goals. Individual Performance Organizational structure can influence whether performance-management systems focus on individual or team performance.

Traditional departmental structures with redundant job roles can lend themselves well to individual performance reviews. In an accounting department with five accounts-receivable clerks, for example, it would be more logical to review each clerk's individual performance and contributions to the department than review the team as a whole.

In organizational structures featuring close-knit, cross-functional teams, on the other hand, it can be more meaningful to assess performance for the group as a whole. In a team-oriented structure, managers must choose between using team performance to make decisions on individual compensation or to combine individual and group considerations to ensure fairness to top performers.


In-House Employees The distribution of in-house and remote job roles in a company is defined by organizational structure, and it can impact a few practical considerations in performance management. In many cases, remote or work-at-home employees can find themselves at a disadvantage in performance reviews.

It can be challenging to accurately track how much overtime a remote employee puts into a special project, for example. Remote employees can find fewer opportunities to help others, provide strategic input in meetings, coach new employees and contribute to team cohesiveness -- all of which can influence the outcomes of performance reviews.


Remote employees can also struggle to keep up with new administrative policies as they evolve in the office, which can tarnish others' perception of quality in their work. If you employ a large number of remote employees, design your performance review policies to work around these disadvantages by focusing on individual goals related to individual job roles.

References Free Management Library: As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. He has earned a Bachelor of Arts in management from Walsh University.Organisational structure and culture are often commented on the same sentence.

This is a relationship where one certainly depends on the other for its existence. The Relationship as a Whole. You can think of this relationship as one of the forest and the trees. The organisational culture is . Organizational structure is the grouping of people to accomplish work.

The Impact of Organization Structure on Productivity |

It establishes relationships among a business's managers and workers, giving them authority to carry out responsibilities. Poor Communication. A poor organizational structure can lead to miscommunication because people might not be sure who needs information or where to .

How organisational structure impacts on people in organisation

The organization impacts the person in a way that he has to manage himself according to the needs of the organization. The person has to mould his skills to suit the requirements.

Many factors are included which strengthens or weakens the ability of people working in an organization. Organizational Structure. An organization is a group of people who together work to achieve a common goal.

In order to work together efficiently, the group must find the best way to organize the. An organizational structure that can be categorised as being appropriate is depended on the goals of the organization, the environment that the organizations is doing business in and the type of.

Is There a Relationship Between Organizational Structure and Culture? |