Determinates of organizational structure
Some organizations have different characteristics and requirements, it would not be possible to identify an ideal structure that would fulfil all these diversified needs. Accordingly, each organizations structure must suit the situation and be optimally useful in the meeting the organizations objectives. Good organizations design is a function of a number of factors including the environment, technology and size of the company. These three factors would determine the philosophy and strategy of central management that forms the foundation of the organizational structure. Operations of the organization, especially if the organization is a large one. These external factors include the customers, cultural conditions as well as international environment. The organizational structure would depend upon whether such external environment is stable or whether there dynamic and rapid changes in it.
Technology: technology is a combination of tools, techniques and know -how and has a manager influence on the organizational structure that would depend upon whether the technology is simple and routine requiring few repetitive tasks, in which case a mechanistic structure would be more desirable. However, when the technology is advanced and intensive and complex requiring high interdependence among members of the workforce, then the organic structure would be operationally more effective.
Size: the size of the organization, as measured by the number of people working in the organization would be determine as to which type of structure would be more effective for it. as the organization grows in size, it increases the number of functional departments, the number of managerial levels, external of specialization, number of employees with diversified responsibilities resulting in increase in the degree of coordination required among the members of the organization and this further results in the increase in the related problems.
Strategy of the organizations: strategy is a typically defined as, "the determination of the basic long term goals and objectives of an enterprise, and the adoption of courses of actions and the allocation of the resources necessary for carrying out these goals. There are primarily two strategies, namely, stability strategy and growth strategy. The growth strategy involves expansions, thus introducing the element of complexity and uncertainly. In such type of environment, growth strategies will be more successful when supported by organic structures.