Organizing is the process by which managers establish the structure of working among to allow them to achieve organizational goals efficiently and effectively. It’s a formal system that revolves around tasks and reporting relationships. It determines how employees use organizational resources to achieve their goals. An important part of organizational structure is organizational design. Organizational design represents the process through which managers undertake and make specific choices about the tasks and relationships resulting in a particular organizational structure. According to contingency theories, managers in most cases, design organizational structures that are most appropriate to the factors and circumstances surrounding the domain area of the organization itself. There are no set standards. One can’t tell which organizational structure is the best, as there are various ways to design an organization. For a particular organization, the rigid structure may be the best possible approach while for others a more flexible approach may be the right way out. Four factors are important determinants of the organizational structure or the organizing strategy a manager may opt for. These include, the kind of organizational environment, the sort of business strategy the organization undertakes, the technology that has been applied in the organization and the characteristics of human resources within the organization.(Jones G. R., 2003)
The more rapidly the organizational environment changes, the more flexibility are needed to take care of any emergencies in advances and to make the right decisions in advance. In such cases its best that the managers adopt a non hierarchical structural, let the central management be as empowered as possible and allow them to adapt themselves to risks as and when wanted. It is more advisable to decentralize authority and empower lower level managers to make important managerial decisions in the process. On the other hand it is also likely that the external environment is more stable and predictable. The resources are readily available. In such circumstances. , managers can choose to make a more formal organizational structure. Ensure that everything within the organization follows systematically and takes a steady path.(Burgeois, 1985)
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